trilinc-10q_20220930.htm

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 14, 2022, the Company had outstanding 18,241,527 Class A units, 7,867,807 Class C units, 10,481,106 Class I units, 24,555 Class W units, 2,696,853 Class Y units, and 8,423,851 Class Z units.

	As of
	September 30,			December 31,
	2022			2021
ASSETS	(Unaudited)
Investments owned, at fair value (amortized cost of $349,248,070 and $343,249,977, respectively)	$	296,735,228		$	301,603,725
Cash		1,170,078			16,795,342
Interest receivable		30,547,193			26,523,185
Due from affiliates (see Note 5)		4,240,231			4,240,231
Other assets		1,132,377			1,048,606
Total assets		333,825,107			350,211,089

LIABILITIES
Due to unitholders		1,305,927			1,399,510
Management fee payable		1,947,857			1,727,974
Incentive fee payable		995,962			141,685
Note payable		—			5,000,000
Unit repurchases payable		1,619,293			1,712,444
Accrued distribution and other fees		428,000			446,000
Other payables		2,095,609			1,058,419
Total liabilities		8,392,648			11,486,032
Commitments and Contingencies (see Note 5)
NET ASSETS	$	325,432,459		$	338,725,057

ANALYSIS OF NET ASSETS:
Net capital paid in on Class A units	$	132,526,693		$	137,132,359
Net capital paid in on Class C units		56,747,842			58,788,598
Net capital paid in on Class I units		76,100,106			79,540,368
Net capital paid in on Class W units		177,773			184,742
Net capital paid in on Class Y units		19,631,862			20,397,391
Net capital paid in on Class Z units		57,603,585			59,999,307
Offering costs		(17,355,402	)		(17,317,708	)
Net assets (equivalent to $6.838 and $7.123, respectively per unit based on total units outstanding of 47,653,286 and 47,619,327, respectively)	$	325,432,459		$	338,725,057
Net assets, Class A (units outstanding of 18,202,815 and 18,128,699, respectively)	$	124,473,629		$	129,122,569
Net assets, Class C (units outstanding of 7,850,611 and 7,827,952, respectively)		53,274,672			55,329,980
Net assets, Class I (units outstanding of 10,454,978 and 10,517,764, respectively)		71,474,743			74,893,312
Net assets, Class W (units outstanding of 24,555 and 24,555, respectively)		166,910			173,893
Net assets, Class Y (units outstanding of 2,696,476 and 2,696,506, respectively)		18,438,920			19,205,996
Net assets, Class Z (units outstanding of 8,423,851 and 8,423,851, respectively)		57,603,585			59,999,307
NET ASSETS	$	325,432,459		$	338,725,057

	For the Three Months Ended				For the Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021
INVESTMENT INCOME
Interest income	$	8,786,055	$	9,069,603	$	26,631,208	$	27,684,145
Interest from cash		—		3,703		3,481		41,002
Total investment income		8,786,055		9,073,306		26,634,689		27,725,147
EXPENSES
Asset management fees		1,641,882		1,758,565		4,987,817		5,337,777
Incentive fees		995,962

Part I. Financial Information		1

Item 1. Consolidated Financial Statements		1

Consolidated Statements of Assets and Liabilities as of September 30, 2022 (unaudited) and December 31, 2021		1

Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (unaudited)		2

Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2022 and 2021 (unaudited)		3

Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)		4

Consolidated Schedules of Investments as of September 30, 2022 (unaudited) and December 31, 2021		5-8

Notes to Consolidated Financial Statements (unaudited)		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		34

Item 3. Quantitative and Qualitative Disclosures About Market Risk		43

Item 4. Controls and Procedures		43

Part II. Other Information		44

Item 1. Legal Proceedings		44

Item 1A. Risk Factors		44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		44

Item 3. Defaults Upon Senior Securities		45

Item 4. Mine Safety Disclosures		45

Item 5. Other Information		45

Item 6. Exhibits		46


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐