Investments and Fair Value Measurements (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Investment Portfolio at Amortized Cost and Fair Value |
The following table summarizes the composition of the Company’s investment portfolio at amortized cost and fair value as of June 30, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
|
|
Amortized Cost |
|
|
Fair Value |
|
|
Amortized Cost |
|
|
Fair Value |
|
Senior Secured Loans |
|
$ |
481,739,699 |
|
|
$ |
460,499,922 |
|
|
$ |
521,570,752 |
|
|
$ |
511,948,518 |
|
Equity |
|
|
12,078,810 |
|
|
|
7,588,875 |
|
|
|
9,748,921 |
|
|
|
5,961,599 |
|
Total Investments |
|
$ |
493,818,509 |
|
|
$ |
468,088,797 |
|
|
$ |
531,319,673 |
|
|
$ |
517,910,117 |
|
|
| Schedule of Investment Portfolio by Industry and Geographic Composition |
The following tables summarize the industry and geographic composition of the Company’s investment portfolio based on fair value as of June 30, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
|
|
Fair Value |
|
|
Percentage |
|
|
Fair Value |
|
|
Percentage |
|
Aerospace & Defense |
|
$ |
— |
|
|
|
— |
% |
|
$ |
811,879 |
|
|
|
0.2 |
% |
Automotive |
|
|
16,664,025 |
|
|
|
3.6 |
% |
|
|
5,368,036 |
|
|
|
1.0 |
% |
Beverage, Food & Tobacco |
|
|
15,334,510 |
|
|
|
3.3 |
% |
|
|
13,466,798 |
|
|
|
2.6 |
% |
Business Services |
|
|
75,079,144 |
|
|
|
16.0 |
% |
|
|
99,980,747 |
|
|
|
19.3 |
% |
Chemicals |
|
|
2,974,701 |
|
|
|
0.6 |
% |
|
|
7,829,040 |
|
|
|
1.5 |
% |
Construction & Building |
|
|
21,147,575 |
|
|
|
4.5 |
% |
|
|
13,408,154 |
|
|
|
2.6 |
% |
Consumer Goods: Durable |
|
|
43,061,142 |
|
|
|
9.2 |
% |
|
|
46,159,906 |
|
|
|
8.9 |
% |
Consumer Goods: Non-durable |
|
|
15,021,087 |
|
|
|
3.2 |
% |
|
|
25,889,462 |
|
|
|
5.0 |
% |
Consumer Services |
|
|
8,636,958 |
|
|
|
1.8 |
% |
|
|
9,112,325 |
|
|
|
1.8 |
% |
Containers, Packaging & Glass |
|
|
236,397 |
|
|
|
0.1 |
% |
|
|
241,948 |
|
|
— (1) |
|
Environmental Industries |
|
|
2,511,894 |
|
|
|
0.5 |
% |
|
|
— |
|
|
|
— |
% |
Financial Services |
|
|
11,944,777 |
|
|
|
2.6 |
% |
|
|
11,871,330 |
|
|
|
2.3 |
% |
Forest Products & Paper |
|
|
10,646,389 |
|
|
|
2.3 |
% |
|
|
10,668,898 |
|
|
|
2.1 |
% |
Healthcare & Pharmaceuticals |
|
|
86,959,574 |
|
|
|
18.6 |
% |
|
|
86,537,327 |
|
|
|
16.7 |
% |
High Tech Industries |
|
|
86,108,990 |
|
|
|
18.4 |
% |
|
|
97,769,103 |
|
|
|
18.9 |
% |
Insurance |
|
|
32,915,791 |
|
|
|
7.0 |
% |
|
|
34,162,653 |
|
|
|
6.6 |
% |
Sovereign & Public Finance |
|
|
4,918,290 |
|
|
|
1.1 |
% |
|
|
19,955,019 |
|
|
|
3.9 |
% |
Telecommunications |
|
|
1,005,172 |
|
|
|
0.2 |
% |
|
|
— |
|
|
|
— |
% |
Transportation: Cargo |
|
|
24,147,133 |
|
|
|
5.2 |
% |
|
|
24,351,758 |
|
|
|
4.7 |
% |
Wholesale |
|
|
8,775,248 |
|
|
|
1.8 |
% |
|
|
10,325,734 |
|
|
|
1.9 |
% |
Total Investments |
|
$ |
468,088,797 |
|
|
|
100.0 |
% |
|
$ |
517,910,117 |
|
|
|
100.0 |
% |
(1)Represents less than 0.1%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
|
|
Fair Value |
|
|
Percentage |
|
|
Fair Value |
|
|
Percentage |
|
United States |
|
$ |
460,312,346 |
|
|
|
98.3 |
% |
|
$ |
517,910,117 |
|
|
|
100.0 |
% |
United Kingdom |
|
|
3,763,931 |
|
|
|
0.8 |
% |
|
|
— |
|
|
|
— |
% |
Canada |
|
|
4,012,520 |
|
|
|
0.9 |
% |
|
|
— |
|
|
|
— |
% |
Total Investments |
|
$ |
468,088,797 |
|
|
|
100.0 |
% |
|
$ |
517,910,117 |
|
|
|
100.0 |
% |
|
| Summary of Fair Value Hierarchy of Investment Portfolio |
The following table summarizes the fair value hierarchy of the Company’s investment portfolio as of June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Senior Secured Loans |
|
$ |
— |
|
|
$ |
129,460,295 |
|
|
$ |
331,039,627 |
|
|
$ |
460,499,922 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
7,588,875 |
|
|
|
7,588,875 |
|
Total Investments |
|
$ |
— |
|
|
$ |
129,460,295 |
|
|
$ |
338,628,502 |
|
|
$ |
468,088,797 |
|
The following table summarizes the fair value hierarchy of the Company’s investment portfolio as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Senior Secured Loans |
|
$ |
— |
|
|
$ |
107,813,248 |
|
|
$ |
404,135,270 |
|
|
$ |
511,948,518 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
5,961,599 |
|
|
|
5,961,599 |
|
Total Investments |
|
$ |
— |
|
|
$ |
107,813,248 |
|
|
$ |
410,096,869 |
|
|
$ |
517,910,117 |
|
|
| Summary of Changes in Fair Value of Investments for Which Level 3 Inputs Were Used to Determine Fair Value |
The following table presents changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Loans |
|
|
Equity |
|
|
Total |
|
Balance as of January 1, 2025 |
|
$ |
404,135,270 |
|
|
$ |
5,961,599 |
|
|
$ |
410,096,869 |
|
Purchases and drawdowns of investments |
|
|
17,346,181 |
|
|
|
3,309,552 |
|
|
|
20,655,733 |
|
Proceeds from principal pre-payments and sales of investments |
|
|
(84,588,036 |
) |
|
|
(897,022 |
) |
|
|
(85,485,058 |
) |
Payment-in-kind |
|
|
1,450,593 |
|
|
|
— |
|
|
|
1,450,593 |
|
Net accretion of discount on investments |
|
|
1,284,446 |
|
|
|
— |
|
|
|
1,284,446 |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
(8,350,040 |
) |
|
|
(702,614 |
) |
|
|
(9,052,654 |
) |
Net realized gain (loss) on investments |
|
|
(238,787 |
) |
|
|
(82,640 |
) |
|
|
(321,427 |
) |
Transfers into Level 3 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers out of Level 3 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance as of June 30, 2025 |
|
$ |
331,039,627 |
|
|
$ |
7,588,875 |
|
|
$ |
338,628,502 |
|
Net change in unrealized appreciation (depreciation) on Level 3 investments still held |
|
$ |
(8,778,266 |
) |
|
$ |
(622,070 |
) |
|
$ |
(9,400,336 |
) |
(1)Transfers into Level 3, if any, are due to a decrease in the quantity and reliability of broker quotes obtained and transfers out of Level 3, if any, are due to an increase in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers between levels, if any, are recognized at the beginning of the year in which the transfer occurs. The following table presents changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the six months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Loans |
|
|
Equity |
|
|
Total |
|
Balance as of January 1, 2024 |
|
$ |
509,110,614 |
|
|
$ |
7,033,311 |
|
|
$ |
516,143,925 |
|
Purchases and drawdowns of investments |
|
|
27,326,871 |
|
|
|
163,748 |
|
|
|
27,490,619 |
|
Proceeds from principal pre-payments and sales of investments |
|
|
(103,028,457 |
) |
|
|
— |
|
|
|
(103,028,457 |
) |
Payment-in-kind |
|
|
1,205,072 |
|
|
|
— |
|
|
|
1,205,072 |
|
Net accretion of discount on investments |
|
|
806,497 |
|
|
|
— |
|
|
|
806,497 |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
1,762,934 |
|
|
|
(642,003 |
) |
|
|
1,120,931 |
|
Net realized gain (loss) on investments |
|
|
(1,649,285 |
) |
|
|
— |
|
|
|
(1,649,285 |
) |
Transfers into Level 3 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers out of Level 3 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance as of June 30, 2024 |
|
$ |
435,534,246 |
|
|
$ |
6,555,056 |
|
|
$ |
442,089,302 |
|
Net change in unrealized appreciation (depreciation) on Level 3 investments still held |
|
$ |
40,478 |
|
|
$ |
(642,003 |
) |
|
$ |
(601,525 |
) |
|
| Summary of Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level 3 Investments |
The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of June 30, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment type |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable
Input |
|
Range (Weighted Average) |
|
Impact to Valuation from an Increase in Input |
Senior Secured Loans |
|
$ |
265,617,594 |
|
|
Discounted cash flow |
|
Discount rate |
|
4.5% - 11.5% (6.6%) |
|
Decrease |
|
|
|
32,212,100 |
|
|
Yield analysis |
|
Market yield |
|
9.9% - 20.4% (13.6%) |
|
Decrease |
|
|
|
10,681,863 |
|
|
Enterprise value waterfall |
|
EBITDA multiple |
|
8.2x - 9.8x (9.7x) |
|
Increase |
|
|
|
22,528,070 |
|
|
Recent transactions |
|
Transaction price |
|
N/A |
|
N/A |
Equity |
|
|
7,588,875 |
|
|
Enterprise value waterfall |
|
EBITDA multiple |
|
8.2x - 14.4x (12.3x) |
|
Increase |
|
|
$ |
338,628,502 |
|
|
|
|
|
|
|
|
|
The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of December 31, 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment type |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable
Input |
|
Range (Weighted Average) |
|
Impact to Valuation from an Increase in Input |
Senior Secured Loans |
|
$ |
327,406,701 |
|
|
Discounted cash flow |
|
Discount rate |
|
4.8% - 9.2% (6.3%) |
|
Decrease |
|
|
|
49,361,964 |
|
|
Yield analysis |
|
Market yield |
|
10.3% - 13.3% (12.3%) |
|
Decrease |
|
|
|
25,468,528 |
|
|
Enterprise value waterfall |
|
EBITDA multiple |
|
9.8x - 13.1x (12.3x) |
|
Increase |
|
|
|
1,898,077 |
|
|
Recent transactions |
|
Transaction price |
|
N/A |
|
N/A |
Equity |
|
|
5,961,599 |
|
|
Enterprise value waterfall |
|
EBITDA multiple |
|
8.6x - 14.6x (12.2x) |
|
Increase |
|
|
$ |
410,096,869 |
|
|
|
|
|
|
|
|
|
|