In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly;

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by management.

The Company considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

At December 31, 2022, the Company had investments in 85 portfolio companies. The total cost and fair value of the investments were $875,823,177 and $844,733,638, respectively. The composition of our investments as of December 31, 2022 is as follows:

(1)	Includes unitranche investments, which account for 3.1% of our portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured as well as second lien and/or subordinated loans. Our unitranche

loans will expose us to the risks associated with the second lien and subordinated loans to the extent we invest in the “last-out” tranche.

At December 31, 2021, the Company had investments in 73 portfolio companies. The total cost and fair value of the investments were $785,005,957 and $772,873,326, respectively. The composition of our investments as of December 31, 2021 was as follows:


	Cost		Fair Value
Senior Secured – First Lien⁽¹⁾	$	652,561,144	$	646,352,935
Senior Secured – Second Lien		79,806,598		56,733,110
Unsecured Debt		5,030,143		4,883,854
Equity		47,608,072		64,903,427
Total Investments	$	785,005,957	$	772,873,326

(1)

Includes unitranche investments, which account for 1.6% of our portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured as well as second lien and/or subordinated loans and our unitranche loans will expose us to the risks associated with the second lien and subordinated loans to the extent we invest in the “last-out” tranche.

The Company’s investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of December 31, 2022 and December 31, 2021, the Company had 52 and 32 such investments with aggregate unfunded commitments of $27,824,917 and $30,982,734, respectively. The Company maintains sufficient liquidity (through cash on hand and available borrowings under the Credit Facility) to fund such unfunded loan commitments should the need arise.

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, 2022 were 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	$	—	$	—	$	735,555,508	$	735,555,508
Senior Secured – Second Lien		—		—		45,304,300		45,304,300
Unsecured Debt		—		—		4,823,898		4,823,898
Equity		—		—		59,049,932		59,049,932
Total Investments	$	—	$	—	$	844,733,638	$	844,733,638


	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	$	—	$	—	$	646,352,935	$	646,352,935
Senior Secured – Second Lien		—		—		56,733,110		56,733,110
Unsecured Debt		—		—		4,883,854		4,883,854
Equity		—		—		64,903,427		64,903,427
Total Investments	$	—	$	—	$	772,873,326	$	772,873,326

The aggregate values of Level 3 portfolio investments changed during the year ended December 31, 2022 were as follows:


	Senior Secured		Senior Secured
	Loans-First		Loans-Second		Unsecured
	Lien		Lien		Debt		Equity		Total
Fair value at beginning of period	$	646,352,935	$	56,733,110	$	4,883,854	$	64,903,427	$	772,873,326
Purchases of investments		196,925,873		4,900,000		83,511		9,101,485		211,010,869
Payment-in-kind interest		826,816		—		530,361		—		1,357,177
Sales and redemptions		(98,160,329)		(10,809,276)		—		(18,873,195)		(127,842,800)
Realized (losses) gains		(3,929,334)		(4,109,525)		—		11,811,371		3,772,512
Change in unrealized depreciation included in earnings⁽¹⁾		(7,342,462)		(1,611,688)		(687,778)		(7,900,302)		(17,542,230)
Change in unrealized (depreciation) appreciation on foreign currency included in earnings		(1,421,824)		—		—		7,146		(1,414,678)
Amortization of premium and accretion of discount, net		2,303,833		201,679		13,950		—		2,519,462
Fair value at end of period	$	735,555,508	$	45,304,300	$	4,823,898	$	59,049,932	$	844,733,638

(1)	Includes reversal of positions during the twelve months ended December 31, 2022.

There were no Level 3 transfers during the twelve months ended December 31, 2022.

The aggregate values of Level 3 portfolio investments changed during the year ended December 31, 2021 were as follows:


		Senior Secured		Senior Secured
		Loans-First		Loans-Second		Unsecured
		Lien		Lien		Debt		Equity		Total
Fair value at beginning of period		$	508,673,064	$	70,720,186	$	21,191,245	$	52,840,000	$	653,424,495
Purchases of investments			354,637,555		965,250		11,705,915		22,105,811		389,414,531
Payment-in-kind interest			521,595		—		417,435		—		939,030
Sales and redemptions			(214,319,978)		(13,161,428)		(29,384,595)		(33,210,915)		(290,076,916)
Realized gains (losses)			1,475,577		(1,781,665)		—		23,993,443		23,687,355
Change in unrealized (depreciation) appreciation included in earnings	⁽¹⁾		(6,821,212)		(157,390)		875,354		(824,912)		(6,928,160)
Amortization of premium and accretion of discount, net			2,186,334		148,157		78,500		—		2,412,991
Fair value at end of period		$	646,352,935	$	56,733,110	$	4,883,854	$	64,903,427	$	772,873,326

(1)	Includes reversal of positions during the twelve months ended December 31, 2021.

There were no Level 3 transfers during the twelve months ended December 31, 2021.

The following is a summary of geographical concentration of our investment portfolio as of December 31, 2022:


					% of Total
	Cost		Fair Value		Investments
Texas	$	191,422,143	$	171,165,597	20.26	%
California		167,833,384		165,340,017	19.57	%
Florida		60,593,839		59,421,775	7.03	%
Illinois		64,421,998		53,218,615	6.30	%
Arizona		43,129,283		44,277,625	5.24	%
Pennsylvania		42,899,504		41,889,344	4.96	%
Ohio		34,223,452		37,333,236	4.42	%
Washington		28,978,375		28,480,471	3.37	%
New Jersey		25,395,054		25,140,343	2.98	%
Wisconsin		27,533,402		24,271,761	2.87	%
District of Columbia		17,236,556		21,124,347	2.50	%
Georgia		10,919,642		19,692,757	2.33	%
South Carolina		19,089,373		18,654,782	2.21	%
Maryland		16,824,077		16,576,554	1.96	%
Minnesota		16,972,086		15,952,072	1.89	%
United Kingdom		20,530,087		14,445,481	1.71	%
Colorado		15,204,934		14,295,470	1.69	%
Indiana		14,346,082		14,245,432	1.69	%
Canada		13,333,737		13,266,669	1.57	%
North Carolina		10,461,551		10,649,232	1.26	%
Massachusetts		10,215,356		10,527,659	1.25	%
Idaho		9,873,093		9,863,103	1.17	%
Missouri		9,142,111		9,656,287	1.14	%
New York		5,096,152		5,096,008	0.61	%
Michigan		147,906		149,001	0.02	%
	$	875,823,177	$	844,733,638	100.00	%

The following is a summary of geographical concentration of our investment portfolio as of December 31, 2021:


					% of Total
					Investments
	Cost		Fair Value		at fair value
California	$	153,793,390	$	157,446,299	20.37	%
Texas		161,550,893		142,657,160	18.46	%
Illinois		69,780,236		71,066,882	9.20	%
Pennsylvania		42,866,707		42,604,002	5.51	%
Washington		41,067,458		40,790,941	5.28	%
Ohio		36,551,789		38,218,517	4.94	%
Arizona		31,165,320		31,117,284	4.03	%
New York		25,161,998		27,334,823	3.54	%
Wisconsin		25,880,018		25,893,643	3.35	%
New Jersey		25,518,474		23,548,670	3.05	%
United Kingdom		21,320,828		19,537,231	2.53	%
Georgia		11,066,059		19,045,442	2.46	%
Maryland		16,838,603		16,974,999	2.20	%
Minnesota		15,922,220		15,688,073	2.03	%
Colorado		15,151,135		14,980,283	1.94	%
South Carolina		13,270,660		13,270,530	1.71	%
Canada		13,418,371		13,265,324	1.71	%
Florida		12,966,130		13,220,344	1.71	%
District of Columbia		11,798,134		13,137,892	1.70	%
Missouri		9,871,933		10,600,866	1.37	%
North Carolina		10,503,957		10,360,521	1.34	%
Massachusetts		10,281,055		10,348,341	1.34	%
Puerto Rico		8,760,589		1,149,047	0.15	%
Virginia		500,000		616,212	0.08	%
	$	785,005,957	$	772,873,326	100.00	%

The following is a summary of industry concentration of our investment portfolio as of December 31, 2022:


					% of Total
	Cost		Fair Value		Investments
Services: Business	$	207,234,534	$	218,866,572	25.91	%
Healthcare & Pharmaceuticals		86,469,854		88,103,319	10.43	%
Media: Advertising, Printing & Publishing		52,830,447		52,525,839	6.22	%
Consumer Goods: Non-Durable		54,683,102		51,280,593	6.07	%
Consumer Goods: Durable		45,601,928		44,529,176	5.27	%
Aerospace & Defense		48,137,394		39,526,086	4.68	%
Software		37,582,855		37,975,255	4.50	%
Capital Equipment		33,538,647		33,801,951	4.00	%
Beverage, Food, & Tobacco		34,000,918		32,755,054	3.88	%
Construction & Building		26,948,135		26,406,849	3.13	%
Environmental Industries		27,771,798		26,247,936	3.11	%
Services: Consumer		43,302,101		24,616,706	2.92	%
Media: Broadcasting & Subscription		18,615,052		21,445,307	2.54	%
Chemicals, Plastics, & Rubber		18,487,206		17,903,999	2.12	%
Transportation & Logistics		16,768,763		17,161,972	2.03	%
Metals & Mining		16,708,750		16,464,001	1.95	%
Containers, Packaging, & Glass		17,436,600		13,977,250	1.65	%
Retail		13,303,536		13,217,256	1.56	%
High Tech Industries		14,126,954		12,648,347	1.50	%
Automotive		11,252,581		11,342,751	1.34	%
Education		11,057,921		10,498,760	1.24	%
Utilities: Oil & Gas		9,921,469		9,800,000	1.16	%
Energy: Oil & Gas		7,314,230		7,355,074	0.87	%
FIRE: Real Estate		15,642,093		5,866,397	0.69	%
Media: Diversified & Production		5,517,409		5,534,710	0.66	%
Finance		1,568,900		4,082,579	0.48	%
Hotel, Gaming, & Leisure		-		799,899	0.09	%
Total	$	875,823,177	$	844,733,638	100.00	%

The following is a summary of industry concentration of our investment portfolio as of December 31, 2021:


					% of Total
					Investments
	Cost		Fair Value		at fair value
Services: Business	$	167,253,835	$	177,242,299	22.93	%
Healthcare & Pharmaceuticals		104,933,428		99,584,343	12.89	%
Aerospace & Defense		66,503,939		63,467,579	8.21	%
Media: Advertising, Printing & Publishing		53,136,718		51,125,659	6.62	%
Media: Broadcasting & Subscription		39,319,912		42,892,137	5.55	%
Consumer Goods: Durable		36,216,806		36,537,445	4.73	%
Beverage, Food, & Tobacco		34,089,805		33,791,047	4.37	%
Consumer Goods: Non-Durable		30,597,444		29,447,632	3.81	%
Construction & Building		27,333,360		27,282,504	3.53	%
Environmental Industries		26,826,229		26,355,789	3.41	%
Software		21,498,947		23,841,617	3.08	%
Services: Consumer		40,034,415		22,682,119	2.93	%
Transportation & Logistics		18,583,797		18,934,004	2.45	%
Containers, Packaging, & Glass		17,557,212		17,710,907	2.29	%
Metals & Mining		16,838,603		16,974,999	2.20	%
FIRE: Real Estate		15,694,701		15,824,998	2.05	%
Chemicals, Plastics, & Rubber		14,638,210		14,288,322	1.85	%
Education		11,053,167		11,053,167	1.43	%
Automotive		11,064,612		10,800,000	1.40	%
Energy: Oil & Gas		11,098,912		10,461,417	1.35	%
Utilities: Oil & Gas		9,901,900		9,800,000	1.27	%
Capital Equipment		8,322,806		8,182,736	1.06	%
Finance		2,507,199		4,108,356	0.53	%
Hotel, Gaming, & Leisure		—		484,250	0.06	%
	$	785,005,957	$	772,873,326	100.00	%

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2022:


Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)⁽¹⁾⁽³⁾
First lien debt	$	735,555,508	Income/Market	HY credit spreads,	-2.29% to 6.53% (1.52%)
			approach⁽²⁾	Risk free rates	-1.43% to 4.31% (2.31%)
				Market multiples	4.5x to 19.3x (10.1x)⁽⁴⁾

Second lien debt	$	45,304,300	Income/Market	HY credit spreads,	-0.17% to 5.18% (2.39%)
			approach⁽²⁾	Risk free rates	-0.02% to 3.91% (1.94%)
				Market multiples	5.6x to 15.1x (11.4x)⁽⁴⁾

Unsecured debt	$	4,823,898	Income/Market	HY credit spreads,	7.97% to 7.97% 7.97%)
			approach⁽²⁾	Risk free rates	3.63% to 3.63% (3.63%)
				Market multiples	9.1x to 9.1x (9.1x)⁽⁴⁾

Equity investments	$	59,049,932	Market approach⁽⁵⁾	Underwriting multiple/
				EBITDA Multiple	1.3x to 24.8x (11.7x)
Total Long Term Level 3 Investments	$	844,733,638

(1)	Weighted average based on fair value as of December 31, 2022.

(2)	Inclusive of but not limited to (a) the market approach which is used to determine sufficient enterprise value, and (b) the income approach which 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 BSBY, LIBOR, SOFR, or SONIA 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 would result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for a 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 -2.29% (-229 basis points) to 6.53% (653 basis points). The average of all changes was 1.52% (152 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 would 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, 2021:



Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)⁽¹⁾⁽³⁾
First lien debt	$	646,352,935	Income/Market⁽²⁾	HY credit spreads,	-3.93% to 0.48% (-0.24%)
			approach	Risk free rates	-1.95% to 0.86% (-0.05%)
				Market multiples	4.5x to 25x (11.6x)⁽⁴⁾

Second lien debt	$	56,733,110	Income/Market⁽²⁾	HY credit spreads,	-2.54% to 0.53% (-0.53%)
			approach	Risk free rates	-1.79% to 0.94% (-0.29%)
				Market multiples	7.1x to 16.4x (12.9x)⁽⁴⁾

Unsecured debt	$	4,883,854	Income/Market	HY credit spreads,	0.25% to 0.25% (0.25%)
			approach⁽²⁾	Risk free rates	0.75% to 0.75% (0.75%)
				Market multiples	12.4x to 12.4x (12.4x)⁽⁴⁾

Equity investments	$	64,903,427	Market approach⁽⁵⁾	Underwriting	1.6x to 24.9x (11.5x)
				EBITDA Multiple
Total Long Term Level 3 Investments	$	772,873,326

(1)	Weighted average based on fair value as of December 31, 2021.

(2)	Inclusive of but not limited to (a) the market approach which is used to determine sufficient enterprise value, and (b) the income approach which 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 LIBOR or SOFR rates based on the published forward LIBOR or SOFR 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 would result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for a 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 -3.93% (-393 basis points) to 0.48% (48 basis points). The average of all changes was -0.24% (-24 basis points).

(4)	Median of LTM (last twelve months) EBITDA multiples of comparable companies.

(5)