MANAGEMENT FEE

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

MANAGEMENT FEE

MANAGEMENT FEE

On October 13, 2022, in connection with the Transaction, the Fund entered into a new investment management agreement (the “Current Agreement”), by and between the Fund and the Manager, that replaced the previous investment management agreement entered into between the Fund and the Manager (the “Previous Agreement”). The closing of the Transaction constituted a change of control of the Manager which caused the Previous Agreement to terminate. Significant terms of the Current Agreement are the same as those of the Previous Agreement, including the same fee rates.

As compensation for its services to the Fund, for the two-year period that commenced with the first capital closing, which took place on August 8, 2015, the Manager received a management fee (“Management Fee”) computed and paid at the end of each quarter at an annual rate of 2.5% of the Company’s committed equity capital (regardless of when or if the capital was called) as of the last day of each fiscal quarter. Following this two-year period, starting on August 12, 2017, Management Fees are calculated and paid at the end of each quarter at an annual rate of 2.5% of the Fund’s total assets (including amounts derived from borrowed funds) as of the last day of each quarter.

Management Fees of $0.2 million and $0.4 million were recognized as expenses for the three months ended June 30, 2023 and 2022, respectively. Management Fees of $0.4 million and $1.0 million were recognized as expenses for the six months ended June 30, 2023 and 2022, respectively.