Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Investments Categorization in Fair Value Hierarchy

The Company’s investments were categorized in the fair value hierarchy described in Note 2. “Significant Accounting Policies,” as follows as of December 31, 2019 and 2018:

	As of December 31, 2019								As of December 31, 2018
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Senior Debt	$	—	$	—	$	48,167,603	$	48,167,603	$	—	$	—	$	30,700,000	$	30,700,000
Equity	—		—		96,027,397		96,027,397		—		—		51,800,000		51,800,000
Total investments	$	—	$	—	$	144,195,000	$	144,195,000	$	—	$	—	$	82,500,000	$	82,500,000

Unobservable Inputs Used in Fair Value Measurement of Investments

The ranges of unobservable inputs used in the fair value measurement of the Company’s Level 3 investments as of December 31, 2019 and December 31, 2018 were as follows:

December 31, 2019
Asset Group	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(1)	Impact to Valuation from an Increase in Input (2)
Senior Debt	$	44,814,338	Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	9.0% - 14.0% (10.3%) 7.8x – 14.3x (12.3x) 8.0x – 14.5x (12.2x)	Decrease Increase Increase
	3,353,265		Transaction Precedent	Transaction Price	N/A	N/A
Equity	89,380,662		Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	9.0% - 14.0% (10.3%) 7.8x – 14.3x (12.3x) 8.0x – 14.5x (12.2x)	Decrease Increase Increase
	6,646,735		Transaction Precedent	Transaction Price	N/A	N/A
Total	$	144,195,000

December 31, 2018
Asset Group	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(1)	Impact to Valuation from an Increase in Input (2)
Senior Debt	$	30,700,000	Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	10.5% - 13.5% (11.4%) 7.9x – 12.2x (10.9x) 8.0x – 12.0x (10.8x)	Decrease Increase Increase
Equity	51,800,000		Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	10.5% - 13.5% (11.4%) 7.9x – 12.2x (10.9x) 8.0x – 12.0x (10.8x)	Decrease Increase Increase
Total	$	82,500,000

FOOTNOTES:

⁽¹⁾  Discount rates are relative to the enterprise value of the portfolio companies and are not the market yields on the associated debt investments. Unobservable inputs were weighted by the relative fair value of the investments.

⁽²⁾  This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

Reconciliations of Investments of Level 3 Inputs

The following tables provide reconciliation of investments for which Level 3 inputs were used in determining fair value for the year ended December 31, 2019 and for the period from February 7, 2018 (commencement of operations) through December 31, 2018:

	Year Ended December 31, 2019
	Senior Debt		Equity		Total
Fair value balance as of January 1, 2019	$	30,700,000	$	51,800,000	$	82,500,000
Additions	17,467,603		39,032,397		56,500,000
Net change in unrealized appreciation (1)	—		5,195,000		5,195,000
Fair value balance as of December 31, 2019	$	48,167,603	$	96,027,397	$	144,195,000
Change in net unrealized appreciation in investments held as of December 31, 2019 (1)	$	—	$	5,195,000	$	5,195,000

	Period from February 7, 2018 (Commencement of Operations) to December 31, 2018
	Senior Debt		Equity		Total
Fair value balance as of February 7, 2018	$	—	$	—	$	—
Additions	30,700,000		46,074,339		76,774,339
Net change in unrealized appreciation (1)	—		5,725,661		5,725,661
Fair value balance as of December 31, 2018	$	30,700,000	$	51,800,000	$	82,500,000
Change in net unrealized appreciation in investments held as of December 31, 2018 (1)	$	—	$	5,725,661	$	5,725,661

FOOTNOTE:

⁽¹⁾   Included in net change in unrealized appreciation on investments in the consolidated statements of operations.