Investments

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

In February 2022, the Company made an additional equity investment in ATA of $1.1 million.

The Company’s investment portfolio is summarized as follows as of March 31, 2022 and December 31, 2021 (in thousands):

	As of March 31, 2022
Asset Category	Cost		Fair Value		Fair Value Percentage of Investment Portfolio		Fair Value Percentage of Net Assets
Senior secured debt
First lien	$	101,600	$	101,600	21.7	%	18.8	%
Second lien	50,942		50,942		10.8		9.4
Total senior secured debt	152,542		152,542		32.5		28.2
Equity	236,100		316,112		67.5		58.4
Total investments	$	388,642	$	468,654	100.0	%	86.6	%

	As of December 31, 2021
Asset Category	Cost		Fair Value		Fair Value Percentage of Investment Portfolio		Fair Value Percentage of Net Assets
Senior secured debt
First lien	$	116,600	$	116,600	25.6	%	23.3	%
Second lien	35,942		35,942		7.9		7.2
Total senior secured debt	152,542		152,542		33.5		30.5
Equity	235,212		303,455		66.5		60.7
Total investments	$	387,754	$	455,997	100.0	%	91.2	%

Collectively, the Company’s debt investments accrue interest at a weighted average per annum rate of 15.3% and have weighted average remaining years to maturity of 4.8 years as of March 31, 2022. The note purchase agreements contain customary covenants and events of default. As of March 31, 2022, all of the Company’s portfolio companies were in compliance with their respective debt covenants.

As of March 31, 2022 and December 31, 2021, none of the Company’s debt investments were on non-accrual status.

The industry dispersion of the Company’s investment portfolio as a percentage of total fair value of the Company’s investments as of March 31, 2022 and December 31, 2021 were as follows:

Industry	March 31, 2022		December 31, 2021
Real Estate Services	16.8	%	17.2	%
Commercial and Professional Services	16.3		15.8
Visual Safety Solutions	14.8		15.2
Information Services and Advisory Solutions	11.4		12.1
Healthcare Supplies	11.4		10.6
Sanitation Products	10.9		11.1
Hobby Goods and Supplies	8.2		8.7
Engineered Products	2.9		2.8
Business Services	7.3		6.5
Total	100.0	%	100.0	%

All investment positions held at March 31, 2022 and December 31, 2021 were denominated in U.S. dollars and located in the United States based on their country of domicile.

In May 2022, the Company acquired a controlling equity interest and made a debt investment in Vektek Holdings, LLC (“Vektek”) and its subsidiaries totaling approximately $81.3 million. See Note 13. “Subsequent Events” for additional information.

Summarized Portfolio Company Financial Information

The following tables present unaudited summarized operating data for the Company’s portfolio companies in which it owned a controlling equity interest during the three months ended March 31, 2022 and 2021, and summarized balance sheet data as of March 31, 2022 (unaudited) and December 31, 2021, as applicable (in thousands):

Summarized Operating Data

	Three Months Ended March 31, 2022
	Lawn Doctor		Polyform		Round-tables		HSH		ATA		Douglas		Clarion
Revenues	$	9,664	$	5,823	$	3,543	$	9,606	$	14,158	$	5,399	$	3,619
Expenses	(8,868)		(5,391)		(3,724)		(8,767)		(15,574)		(5,824)		(2,833)
Income (loss) before taxes	796		432		(181)		839		(1,416)		(425)		786
Income tax (expense) benefit	(203)		(124)		43		(185)		—		104		(228)
Consolidated net income (loss)	593		308		(138)		654		(1,416)		(321)		558
Net loss attributable to non-controlling interests	39		—		—		—		—		—		—
Net income (loss)	$	632	$	308	$	(138)	$	654	$	(1,416)	$	(321)	$	558

	Three Months Ended March 31, 2021
	Lawn Doctor		Polyform		Roundtables		HSH
Revenues	$	8,794	$	6,793	$	2,852	$	7,963
Expenses	(7,978)		(5,312)		(2,971)		(7,535)
Income (loss) before taxes	816		1,481		(119)		428
Income tax (expense) benefit	(224)		(423)		26		(94)
Consolidated net income (loss)	592		1,058		(93)		334
Net loss attributable to non-controlling interests	75		—		—		—
Net income (loss)	$	667	$	1,058	$	(93)	$	334

Summarized Balance Sheet Data

	As of March 31, 2022
	Lawn Doctor			Polyform			Roundtables			HSH			ATA			Douglas			Clarion
Current assets	$	12,135		$	10,333		$	10,759		$	14,354		$	5,571		$	13,684		$	3,628
Non-current assets	91,009			28,584			61,307			38,697			90,606			35,528			65,710
Current liabilities	9,592			2,136			13,374			6,715			5,806			5,210			372
Non-current liabilities	63,818			21,548			19,786			28,481			43,458			15,711			22,500
Non-controlling interests	(539)			—			—			—			—			—			—
Stockholders’ equity	30,273			15,233			38,906			17,855			46,913			28,291			46,466
Ownership percentage(1)	61		%	87		%	81		%	75		%	75		%	90		%	99		%

	As of December 31, 2021
	Lawn Doctor			Polyform			Roundtables			HSH			ATA			Douglas			Clarion
Current assets	$	13,926		$	9,940		$	2,043		$	14,260		$	10,029		$	13,177		$	3,084
Non-current assets	92,309			28,948			61,955			39,653			90,510			40,311			66,182
Current liabilities	7,961			2,290			4,738			7,341			9,002			4,159			420
Non-current liabilities	63,576			21,557			19,771			28,536			43,458			15,711			22,500
Non-controlling interests	(500)			—			—			—			—			—			—
Stockholders’ equity	35,198			15,041			39,489			18,036			48,079			33,618			46,346
Ownership percentage(1)	61		%	87		%	81		%	75		%	75		%	90		%	99		%