Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020:

	As of December 31, 2021								As of December 31, 2020
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Senior Debt	$	—	$	—	$	152,542,454	$	152,542,454	$	—	$	—	$	78,042,454	$	78,042,454
Equity	—		—		303,454,287		303,454,287		—		—		153,155,000		153,155,000
Total investments	$	—	$	—	$	455,996,741	$	455,996,741	$	—	$	—	$	231,197,454	$	231,197,454

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, 2021 and 2020 were as follows:

As of December 31, 2021
Asset Group	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(1)	Impact to Valuation from an Increase in Input (2)
Senior Debt	$	130,042,454	Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x)	Decrease Increase Increase
	22,500,000		Transaction Precedent	Transaction Price	N/A	N/A
Equity	256,695,000		Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x)	Decrease Increase Increase
	46,759,287		Transaction Precedent	Transaction Price	N/A	N/A
Total	$	455,996,741

As of December 31, 2020
Asset Group	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(1)	Impact to Valuation from an Increase in Input (2)
Senior Debt	$	78,042,454	Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	8.0% – 13.0% (10.7%) 6.4x – 15.2x (11.6x) 6.8x – 14.5x (11.3x)	Decrease Increase Increase
Equity	153,155,000		Discounted Cash Flow Market Comparables Transaction Method	Discount Rate EBITDA Multiple EBITDA Multiple	8.0% – 13.0% (10.7%) 6.4x – 15.2x (11.6x) 6.8x – 14.5x (11.3x)	Decrease Increase Increase
Total	$	231,197,454

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 a reconciliation of investments for which Level 3 inputs were used in determining fair value for the years ended December 31, 2021 and 2020:

	Year Ended December 31, 2021
	Senior Debt		Equity		Total
Fair value balance as of January 1, 2021	$	78,042,454	$	153,155,000	$	231,197,454
Additions	74,500,000		118,259,287		192,759,287
Return of capital(1)	—		(2,462,715)		(2,462,715)
Net change in unrealized appreciation(2)	—		34,502,715		34,502,715
Fair value balance as of December 31, 2021	$	152,542,454	$	303,454,287	$	455,996,741
Change in net unrealized appreciation on investments held as of December 31, 2021(2)	$	—	$	34,502,715	$	34,502,715

	Year Ended December 31, 2020
	Senior Debt		Equity		Total
Fair value balance as of January 1, 2020	$	48,167,603	$	96,027,397	$	144,195,000
Additions	29,874,851		34,307,923		64,182,774
Net change in unrealized appreciation(2)	—		22,819,680		22,819,680
Fair value balance as of December 31, 2020	$	78,042,454	$	153,155,000	$	231,197,454
Change in net unrealized appreciation on investments held as of December 31, 2020(2)	$	—	$	22,819,680	$	22,819,680

 FOOTNOTES:

(1)     Represents portion of distributions received which were accounted for as a return of capital. See Note 2. “Significant Accounting Policies” for information on the accounting treatment of distributions from portfolio companies.

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