PORTFOLIO INVESTMENTS AND FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2024

PORTFOLIO INVESTMENTS AND FAIR VALUE

Schedule of total fair value and cost of investments

At September 30, 2024, the Company had investments in 99 portfolio companies. The composition of our investments as of September 30, 2024 is as follows:

	Cost		Fair Value
Senior Secured – First Lien(1)	$	834,831,967	$	813,032,551
Senior Secured – Second Lien		12,063,585		11,933,275
Unsecured Debt		6,643,222		6,543,287
Equity		55,781,114		77,209,780
Total Investments	$	909,319,888	$	908,718,893

(1) Includes unitranche investments, which may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” portion of the unitranche loans which account for 4.3% of our portfolio at fair value.

At December 31, 2023, the Company had investments in 93 portfolio companies. The composition of our investments as of December 31, 2023 was as follows:

	Cost		Fair Value
Senior Secured – First Lien(1)	$	793,819,152	$	774,789,320
Senior Secured – Second Lien		42,269,568		21,957,500
Unsecured Debt		6,138,183		5,956,280
Equity		59,916,647		71,757,583
Total Investments	$	902,143,550	$	874,460,683

(1) Includes unitranche investments, which may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” portion of the unitranche loans which account for 4.5% of our portfolio at fair value.

Schedule of aggregate gross unrealized appreciation and depreciation and aggregate cost and fair value of portfolio company securities

The aggregate gross unrealized appreciation and depreciation and the aggregate cost and fair value of the Company’s portfolio company securities as of September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024		December 31, 2023
Aggregate cost of portfolio company securities	$	909,319,888	$	902,143,550
Gross unrealized appreciation of portfolio company securities		46,502,114		38,379,839
Gross unrealized depreciation of portfolio company securities		(46,948,895)		(65,262,547)
Gross unrealized appreciation on foreign currency translations of portfolio company securities		13,589		11,142
Gross unrealized depreciation on foreign currency translations of portfolio company securities		(167,803)		(811,301)
Aggregate fair value of portfolio company securities	$	908,718,893	$	874,460,683

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 September 30, 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	$	—	$	—	$	813,032,551	$	813,032,551
Senior Secured – Second Lien		—		—		11,933,275		11,933,275
Unsecured Debt		—		—		6,543,287		6,543,287
Equity		—		—		77,209,780		77,209,780
Total Investments	$	—	$	—	$	908,718,893	$	908,718,893

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, 2023 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	$	—	$	—	$	774,789,320	$	774,789,320
Senior Secured – Second Lien		—		—		21,957,500		21,957,500
Unsecured Debt		—		—		5,956,280		5,956,280
Equity		—		—		71,757,583		71,757,583
Total Investments	$	—	$	—	$	874,460,683	$	874,460,683

Schedule of change in aggregate values of Level 3 portfolio investments

The change in aggregate values of Level 3 portfolio investments during the nine months ended September 30, 2024 are as follows:

	Senior Secured		Senior Secured
	Loans-First		Loans-Second		Unsecured
	Lien		Lien		Debt		Equity		Total
Fair value at beginning of period	$	774,789,320	$	21,957,500	$	5,956,280	$	71,757,583	$	874,460,683
Purchases of investments		109,102,232		—		117,066		3,405,514		112,624,812
Payment-in-kind interest		2,114,092		—		376,764		—		2,490,856
Sales and redemptions		(70,606,161)		(9,782,348)		—		(7,800,581)		(88,189,090)
Realized (losses) gains		(1,580,768)		(20,475,000)		—		259,536		(21,796,232)
Change in unrealized (depreciation) appreciation included in earnings(1)		(3,413,083)		20,181,757		81,468		9,585,785		26,435,927
Change in unrealized appreciation on foreign currency included in earnings		643,498		—		504		1,943		645,945
Amortization of premium and accretion of discount, net		1,983,421		51,366		11,205		—		2,045,992
Fair value at end of period	$	813,032,551	$	11,933,275	$	6,543,287	$	77,209,780	$	908,718,893

(1) Includes reversal of positions during the nine months ended September 30, 2024.

The change in aggregate values of Level 3 portfolio investments during the year ended December 31, 2023 are as follows:

	Senior Secured		Senior Secured
	Loans-First		Loans-Second		Unsecured
	Lien		Lien		Debt		Equity		Total
Fair value at beginning of period	$	735,555,508	$	45,304,300	$	4,823,898	$	59,049,932	$	844,733,638
Purchases of investments		174,156,432		—		62,086		13,251,090		187,469,608
Payment-in-kind interest		3,185,845		—		613,998		—		3,799,843
Sales and redemptions		(125,442,776)		(9,882,105)		(211,627)		(2,280,087)		(137,816,595)
Realized losses		(11,200,184)		(17,979,749)		—		(702,093)		(29,882,026)
Change in unrealized (depreciation) appreciation included in earnings(1)		(4,667,866)		4,373,111		651,997		2,434,910		2,792,152
Change in unrealized appreciation on foreign currency included in earnings		610,523		—		166		3,831		614,520
Amortization of premium and accretion of discount, net		2,591,838		141,943		15,762		—		2,749,543
Fair value at end of period	$	774,789,320	$	21,957,500	$	5,956,280	$	71,757,583	$	874,460,683

(1) Includes reversal of positions during the year ended December 31, 2023.

Summary of geographical concentration of investment portfolio

The following is a summary of geographical concentration of our investment portfolio as of September 30, 2024:

					% of Total
					Investments at
	Cost		Fair Value		Fair Value
Texas	$	176,595,098	$	174,492,467	19.20	%
California		177,080,874		168,026,775	18.50	%
Florida		98,224,132		95,184,806	10.47	%
Pennsylvania		50,060,607		50,743,467	5.58	%
Illinois		60,273,177		50,173,300	5.52	%
Arizona		43,546,588		47,067,031	5.18	%
Ohio		33,818,639		35,856,729	3.95	%
Colorado		30,605,048		28,109,303	3.09	%
Wisconsin		27,330,909		26,605,158	2.93	%
Georgia		11,733,310		26,086,957	2.87	%
Canada		23,552,639		23,726,867	2.61	%
New York		23,401,363		23,605,644	2.60	%
Massachusetts		17,775,794		18,086,443	1.99	%
Missouri		16,683,889		16,639,813	1.83	%
North Carolina		13,819,823		15,200,224	1.67	%
District of Columbia		12,789,633		15,164,055	1.67	%
New Jersey		12,641,910		13,856,131	1.52	%
Indiana		13,322,567		13,421,758	1.48	%
Michigan		11,405,559		11,446,315	1.26	%
Tennessee		9,386,376		9,597,870	1.06	%
Virginia		9,415,789		9,412,162	1.04	%
Louisiana		8,049,265		8,325,907	0.92	%
Washington		8,208,720		8,034,722	0.88	%
Idaho		7,868,824		7,919,732	0.87	%
Minnesota		6,350,484		6,390,660	0.70	%
South Carolina		4,832,314		4,973,965	0.55	%
United Kingdom		454,446		481,028	0.05	%
Maryland		92,111		89,604	0.01	%
Total Investments at Fair Value	$	909,319,888	$	908,718,893	100.00	%

The following is a summary of geographical concentration of our investment portfolio as of December 31, 2023:

					% of Total
					Investments
	Cost		Fair Value		at Fair Value
Texas	$	182,531,256	$	175,311,724	20.04	%
California		175,207,692		167,713,589	19.18	%
Florida		93,155,844		92,297,574	10.55	%
Pennsylvania		49,939,315		50,188,102	5.74	%
Illinois		58,633,617		49,834,429	5.70	%
Arizona		42,136,322		44,558,279	5.10	%
Ohio		31,805,370		34,370,277	3.93	%
Colorado		31,525,420		30,971,079	3.54	%
Wisconsin		27,452,444		26,190,771	3.00	%
Washington		24,321,085		24,540,695	2.81	%
Georgia		9,100,050		18,885,409	2.16	%
Maryland		16,676,194		16,718,728	1.91	%
New York		14,692,043		14,931,263	1.71	%
Indiana		14,235,403		14,488,700	1.66	%
North Carolina		13,891,930		14,532,532	1.66	%
District of Columbia		13,030,899		14,006,563	1.60	%
New Jersey		10,461,226		11,191,295	1.28	%
Michigan		10,664,100		10,736,783	1.23	%
Massachusetts		10,151,621		10,515,487	1.20	%
Tennessee		9,390,657		9,379,311	1.07	%
Missouri		8,862,512		8,850,162	1.01	%
Canada		8,700,383		8,813,132	1.01	%
Idaho		8,405,946		8,470,065	0.97	%
Minnesota		5,976,818		5,907,639	0.68	%
Louisiana		5,538,823		5,536,231	0.63	%
South Carolina		4,946,375		5,083,862	0.58	%
United Kingdom		20,710,205		437,002	0.05	%
Total Investments at Fair Value	$	902,143,550	$	874,460,683	100.00	%

Summary of industry concentration of investment portfolio

The following is a summary of industry concentration of our investment portfolio as of September 30, 2024:

					% of Total
					Investments at
	Cost		Fair Value		Fair Value
Services: Business	$	203,746,598	$	220,739,114	24.29	%
Healthcare & Pharmaceuticals		102,834,705		103,257,729	11.35	%
High Tech Industries		90,124,134		92,692,874	10.20	%
Media: Advertising, Printing & Publishing		72,026,720		73,244,721	8.06	%
Capital Equipment		52,781,855		54,812,384	6.03	%
Beverage & Food		49,733,842		54,032,506	5.95	%
Consumer Goods: Non-Durable		63,359,237		50,528,301	5.56	%
Consumer Goods: Durable		43,526,506		43,103,971	4.74	%
Services: Consumer		28,190,609		25,138,889	2.77	%
Aerospace & Defense		26,531,998		23,004,604	2.53	%
Chemicals, Plastics, & Rubber		22,806,903		22,915,236	2.52	%
Construction & Building		21,506,389		21,597,664	2.38	%
Environmental Industries		18,886,220		18,153,686	2.00	%
Transportation & Logistics		17,244,131		17,423,487	1.92	%
Containers, Packaging, & Glass		17,387,950		16,107,745	1.77	%
Retail		14,829,342		14,686,796	1.62	%
Media: Broadcasting & Subscription		12,198,848		13,842,608	1.52	%
Energy: Oil & Gas		11,364,885		10,682,907	1.18	%
FIRE: Real Estate		17,934,808		7,749,169	0.85	%
Education		10,507,778		7,421,288	0.82	%
Hotel, Gaming, & Leisure		5,833,293		6,831,615	0.75	%
Media: Diversified & Production		5,843,856		5,967,076	0.66	%
Finance		119,281		4,784,523	0.53	%
Total Investments at Fair Value	$	909,319,888	$	908,718,893	100.00	%

The following is a summary of industry concentration of our investment portfolio as of December 31, 2023:

					% of Total
					Investments
	Cost		Fair Value		at Fair Value
Services: Business	$	198,018,290	$	207,963,749	23.78	%
Healthcare & Pharmaceuticals		100,724,952		102,915,887	11.77	%
High Tech Industries		90,795,799		91,992,012	10.52	%
Media: Advertising, Printing & Publishing		57,640,321		58,741,061	6.72	%
Consumer Goods: Non-Durable		63,145,301		52,938,611	6.05	%
Beverage, Food, & Tobacco		42,554,582		45,074,817	5.15	%
Consumer Goods: Durable		49,046,730		43,725,324	5.00	%
Capital Equipment		32,517,673		33,879,801	3.87	%
Services: Consumer		33,976,976		33,260,111	3.80	%
Construction & Building		30,319,119		30,486,411	3.49	%
Aerospace & Defense		46,745,104		24,541,921	2.81	%
Environmental Industries		24,219,811		22,997,844	2.63	%
Media: Broadcasting & Subscription		17,952,103		20,760,920	2.37	%
Transportation & Logistics		17,235,150		17,661,859	2.02	%
Chemicals, Plastics, & Rubber		18,338,366		17,569,176	2.01	%
Metals & Mining		16,580,562		16,625,000	1.90	%
Containers, Packaging, & Glass		17,432,252		15,539,555	1.78	%
Utilities: Oil & Gas		9,943,041		10,000,000	1.14	%
Education		10,251,179		8,367,469	0.96	%
FIRE: Real Estate		17,285,138		6,175,994	0.71	%
Media: Diversified & Production		5,662,174		5,763,247	0.66	%
Finance		569,039		5,736,868	0.66	%
Hotel, Gaming, & Leisure		—		890,968	0.10	%
Energy: Oil & Gas		1,189,888		852,078	0.10	%
Total Investments at Fair Value	$	902,143,550	$	874,460,683	100.00	%

Schedule of quantitative information about Level 3 fair value measurements

The following provides quantitative information about Level 3 fair value measurements as of September 30, 2024:

Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)(1)(3)
First lien debt	$	813,032,551	Income/Market	HY credit spreads,	-5.51% to 6.19% (-0.55%)
			approach(2)	Risk free rates	-4.04% to 2.03% (-0.47%)
				Market multiples	5.3x to 24.1x (11.7x)(4)
Second lien debt	$	11,933,275	Income/Market	HY credit spreads,	-2.84% to -0.02% (-1.43%)
			approach(2)	Risk free rates	-085% to -0.39% (-0.62%)
				Market multiples	5.1 to 10.1x (7.6x)(4)
Unsecured debt	$	6,543,287	Income/Market	HY credit spreads,	-1.94% to -1.94% (-1.94%)
			approach(2)	Risk free rates	-0.86% to -0.86% (-0.86%)
Equity investments	$	77,209,780	Market approach(5)	Underwriting multiple/
				EBITDA multiple	3.5x to 19.3x (12.1x)
Total Long Term Level 3 Investments	$	908,718,893

(1) Weighted average based on fair value as of September 30, 2024.

(2) Included 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, 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 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 (5.51)% ((551) basis points) to 6.19% (619 basis points). The average of all changes was (0.55)% ((55) 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, 2023:

Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)(1)(3)
First lien debt	$	774,789,320	Income/Market	HY credit spreads,	-3.00% to 8.11% (-0.23%)
			approach(2)	Risk free rates	-1.62% to 2.03% (0.04%)
				Market multiples	5.2x to 22.5x (11.0x)(4)
Second lien debt	$	21,957,500	Income/Market	HY credit spreads,	-0.97% to -0.33% (-0.63%)
			approach(2)	Risk free rates	-0.51% to 0.31% (-0.23%)
				Market multiples	6.5x to 17.5x (10.9x)(4)
Unsecured debt	$	5,956,280	Income/Market	HY credit spreads,	4.98% to 4.98% (4.98%)
			approach(2)	Risk free rates	4.47% to 4.47% (4.47%)
				Market multiples	9.5x to 9.5x (9.5x)(4)
Equity investments	$	71,757,583	Market approach(5)	Underwriting multiple/
				EBITDA multiple	3.5x to 23.2x (12.1x)
Total Long Term Level 3 Investments	$	874,460,683

(1) Weighted average based on fair value as of December 31, 2023.

(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 rates based on the published forward LIBOR 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 (3.00)% ((300) basis points) to 8.11% (811 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 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.