Investments

12 Months Ended

Dec. 31, 2022

5. Investments

Purchases of investments, including PIK, for the years ended December 31, 2022, 2021 and 2020 totaled $231,506,596, $275,047,711 and $143,538,052, respectively. Proceeds from sales, repayments and other exits of investments for the years ended December 31, 2022, 2021 and 2020 totaled $192,448,280, $250,607,406 and $277,596,336, respectively.

At December 31, 2022, investments consisted of the following:


	Cost		Fair Value
Senior secured notes	$	1,920,592	$	1,624,823
Unsecured debt		37,686,148		15,228,000
Subordinated debt		5,000,000		4,930,000
Senior secured loans:
First lien		455,458,846		447,490,518
Second/other priority lien		98,468,621		90,992,663
Total senior secured loans		553,927,467		538,483,181
Preferred stock		40,527,223		2,354,224
Common stock		10,611,548		—
Limited partnership/limited liability company interests		8,511,838		5,991,648
Equity warrants/options		115,348		1,877,208
Total investments	$	658,300,164	$	570,489,084

At December 31, 2021, investments consisted of the following:


	Cost		Fair Value
Senior secured notes	$	1,914,346	$	1,641,800
Unsecured debt		41,861,533		21,927,071
Subordinated debt		5,000,000		5,000,000
Senior secured loans:
First lien		405,193,486		409,626,942
Second/other priority lien		100,726,036		101,878,924
Total senior secured loans		505,919,522		511,505,866
Preferred stock		40,192,521		2,680,424
Common stock		10,611,548		—
Limited partnership/limited liability company interests		9,011,837		7,475,576
Equity warrants/options		115,348		2,333,257
Total investments	$	614,626,655	$	552,563,994

Industry Composition

As of December 31, 2022, the Company generally uses GICS to classify the industries of its portfolio companies. The following table shows the industry composition of the portfolio, at fair value, at December 31, 2022 and December 31, 2021 by GICS.


Industry	December 31, 2022			December 31, 2021
Software		15.2	%		7.7	%
Diversified Financial Services		14.5			13.6
Internet Software & Services		11.1			11.2
Diversified Consumer Services		8.3			7.0
Professional Services		7.2			6.5
Health Care Technology		4.4			4.4
Health Care Providers & Services		3.7			3.7
Road & Rail		2.6			10.5
Construction & Engineering		2.6			1.6
Insurance		2.5			2.0
Health Care Equipment & Supplies		2.5			2.7
IT Services		2.5			1.6
Containers & Packaging		2.5			2.1
Specialty Retail		1.9			1.5
Technology Hardware, Storage & Peripherals		1.8			0.9
Textiles, Apparel & Luxury Goods		1.7			4.2
Paper & Forest Products		1.7			—
Consumer Finance		1.3			2.3
Real Estate Management & Development		1.1			0.3
Commercial Services & Supplies		1.1			0.8
Media		1.0			3.3
Trading Companies & Distributors		1.0			1.1
Internet & Catalog Retail		1.0			0.8
Machinery		0.9			1.0
Hotels, Restaurants & Leisure		0.9			—
Wireless Telecommunication Services		0.8			0.9
Household Durables		0.8			1.1
Metals & Mining		0.6			0.7
Leisure Products		0.5			—
Automobiles		0.4			0.5
Building Products		0.4			0.4
Distributors		0.4			0.4
Life Sciences Tools & Services		0.4			—
Semiconductors & Semiconductor Equipment		0.4			—
Capital Markets		0.2			0.2
Electrical Equipment		0.1			0.1
Tobacco Related		—			2.4
Aerospace & Defense		—			1.7
Diversified Telecommunication Services		—			0.8
Chemicals		—			—
Oil, Gas & Consumable Fuels		—			—
Totals		100.0	%		100.0	%

The following table shows the geographic composition of the portfolio at fair value at December 31, 2022 and December 31, 2021. The geographic composition is determined by several factors including the location of the corporate headquarters and the country of registration of the portfolio company.


Geography	December 31, 2022			December 31, 2021
United States		85.4	%		88.3	%
United Kingdom		7.2			6.6
Germany		3.7			3.9
Canada		1.1			1.2
Switzerland		1.0			—
Slovenia		0.9			—
Australia		0.7			—
Totals		100.0	%		100.0	%

Market and Credit Risk

The Company has investments in lower rated and comparable quality unrated senior and junior secured, unsecured and subordinated debt securities and loans, which are subject to a greater degree of credit risk than more highly rated investments. The risk of loss due to default by the issuer is significantly greater for holders of such securities and loans, particularly in cases where the investment is unsecured or subordinated to other creditors of the issuer.

In the normal course of business, the Company invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Company may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Company; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations (see Item 1A. Risk Factors for further details). The impact of epidemics and pandemics such as the coronavirus, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. Similar to issuer credit risk, the Company may be exposed to counterparty credit risk, or the risk that an entity with which the Company has unsettled, or open transactions may fail to or be unable to perform on its commitments. The Company manages counterparty risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Company to market, issuer and counterparty credit risks, consist principally of investments in portfolio companies. The extent of the Company’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their fair value recorded in the Consolidated Statements of Assets and Liabilities. The Company is also exposed to credit risk related to maintaining all of its cash at a major financial institution.