Fair Value Measurements Investments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements Investments [Abstract]

Fair Value Measurements of Investments, by Major Class

The following tables present fair value measurements of investments, by major class according to the fair value hierarchy.

	Fair Value Measurements
March 31, 2024	Level 1		Level 2		Level 3		Total
First Lien Senior Secured Loan	$	-	$	-	$	294,455,581	$	294,455,581
Second Lien Senior Secured Loan		-		-		6,067,024		6,067,024
Senior Unsecured Notes		-		-		1,265,130		1,265,130
Preferred Equity Securities		-		-		43,031,287		43,031,287
Warrants and Other Equity Securities		-		-		6,039,575		6,039,575
Total	$	-	$	-	$	350,858,597	$	350,858,597
Fund Investments								2,818,111
Total Investments							$	353,676,708

	Fair Value Measurements
December 31, 2023	Level 1		Level 2		Level 3		Total
First Lien Senior Secured Loan	$	-	$	-	$	319,229,009	$	319,229,009
Second Lien Senior Secured Loan		-		-		6,059,372		6,059,372
Senior Unsecured Notes		-		-		1,384,446		1,384,446
Preferred Equity Securities		-		-		41,804,395		41,804,395
Warrants and Other Equity Securities		-		-		5,706,423		5,706,423
Total	$	-	$	-	$	374,183,645	$	374,183,645
Fund Investments								2,809,327
Total Investments							$	376,992,972

Changes in Fair Value of Investments that Use Level 3 Inputs

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three months ended March 31, 2024 and 2023:

	Investments
	First Lien Senior Secured Loan			Second Lien Senior Secured Loan			Senior Unsecured Notes			Preferred Equity Securities			Warrants and Other Equity Securities		Fund Investments		Total Investments
Balance as of December 31, 2023	$	319,229,009		$	6,059,372		$	1,384,446		$	41,804,395		$	5,706,423	$	2,809,327	$	376,992,972
Net change in unrealized gain (loss) on investments		(3,610,300	)		64,789			(119,316	)		5,166			333,152		8,784		(3,317,725	)
Purchases of investments and other adjustments to cost ⁽¹⁾		2,821,564			-			-			-			-		-		2,821,564
Proceeds from principal repayments⁽²⁾		(22,745,927	)		(57,137	)		-			(17,039	)		-		-		(22,820,103	)
Lien status change⁽³⁾		(1,238,765	)		-			-			1,238,765			-		-		-
Balance as of March 31, 2024	$	294,455,581		$	6,067,024		$	1,265,130		$	43,031,287		$	6,039,575	$	2,818,111	$	353,676,708

(1)

Includes purchases of new investments, premium and discount accretion and amortization and PIK interest.

(2)

Includes paydowns receivable from the Consolidated Statements of Assets and Liabilities

(3)

Lien conversions are fair valued at beginning of period on January 1, 2024

	Investments
	First Lien Senior Secured Loan			Second Lien Senior Secured Loan			Senior Unsecured Notes		Preferred Equity Securities			Warrants and Other Equity Securities		Fund Investments		Total Investments
Balance as of December 31, 2022	$	260,982,122		$	6,250,270		$	-	$	27,088,732		$	5,829,429	$	3,045,128	$	303,195,681
Net change in unrealized gain (loss) on investments		(1,188,943	)		33,626			-		213,058			184,228		52,433		(705,598	)
Purchases of investments and other adjustments to cost⁽¹⁾		23,998,021			8,110			-		2,927,035			-		-		26,933,166
Proceeds from sales of investments		-			-			-		-			-		-		-
Proceeds from principal repayments⁽²⁾		(1,701,330	)		(50,897	)		-		(17,039	)		-		-		(1,769,266	)
Lien status change		-			-			1,628,075		(389,310	)		-		-		1,238,765
Balance as of March 31, 2023	$	282,089,870		$	6,241,109		$	1,628,075	$	29,839,515		$	6,013,657	$	3,097,561	$	328,909,787

(1)

Includes purchases of new investments, premium and discount accretion and amortization and PIK interest.

(2)

Includes paydowns receivable from the Consolidated Statements of Assets and Liabilities

Summary of Quantitative Inputs and Assumptions Used for Items Categorized in Level 3

The table below summarizes the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of March 31, 2024.

								Range
	Fair Value		Valuation Technique	Unobservable Input	Weighted Average Mean			Minimum			Maximum
Assets:
First Lien Senior Secured Loan	$	259,211,450	Discount Rate	Market Yields		15.6	%		7.7	%		30.0	%
				EBITDA Multiple		8.33	x		1.53	x		35.50	x
First Lien Senior Secured Loan		12,921,031	Discount Rate	Market Yields		19.3	%		17.0	%		27.0	%
				Revenue Multiple		0.44	x		0.30	x		0.50	x
First Lien Senior Secured Loan		5,086,630	Enterprise Value Method	Revenue Multiple		1.29	x		0.40	x		2.75	x
First Lien Senior Secured Loan		14,894,952	Enterprise Value Method	EBITDA Multiple		9.18	x		5.00	x		6.00	x
First Lien Senior Secured Loan		2,341,518	Other	N/A		N/A			N/A			N/A
Second Lien Senior Secured Loan		6,067,024	Discount Rate	Market Yields		16.7	%		15.4	%		17.9	%
				EBITDA Multiple		7.50	x		7.00	x		8.00	x
Senior Unsecured Note		1,265,130	Discount Rate	Market Yields		30.0	%		30.0	%		30.0	%
				EBITDA Multiple		5.75	x		5.25	x		6.25	x
Preferred Equity Securities		30,042	Discount Rate	Market Yields		23.3	%		23.3	%		23.3	%
				Revenue Multiple		0.40	x		0.30	x		0.50	x
Preferred Equity Securities		4,499,630	Enterprise Value Method	Revenue Multiple		2.60	x		2.10	x		3.10	x
				EBITDA Multiple		12.50	x		12.00	x		13.00	x
Preferred Equity Securities		32,857	Enterprise Value Method	Revenue Multiple		0.45	x		0.40	x		0.50	x
				EBITDA Multiple		6.75	x		6.25	x		7.25	x
Preferred Equity Securities		5,573,257	Enterprise Value Method	Revenue Multiple		2.24	x		0.30	x		2.75	x
Preferred Equity Securities		32,895,501	Enterprise Value Method	EBITDA Multiple		7.55	x		3.00	x		13.75	x
Warrants and Other Equity Securities		157,426	Enterprise Value Method	Revenue Multiple		2.25	x		1.75	x		2.75	x
Warrants and Other Equity Securities		5,882,149	Enterprise Value Method	EBITDA Multiple		7.50	x		3.00	x		35.50	x
Fund Investments		2,818,111	Other	N/A		N/A			N/A			N/A
Total Level 3 Assets	$	353,676,708

The table below summarizes the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of December 31, 2023.

								Range
	Fair Value		Valuation Technique	Unobservable Input	Weighted Average Mean			Minimum			Maximum
Assets:
First Lien Senior Secured Loan	$	297,206,519	Discounted Cash Flow	Market Yields		15.3	%		7.0	%		27.0	%
				EBITDA Multiple		8.15	x		1.97	x		35.50	x
First Lien Senior Secured Loan		5,270,878	Discounted Cash Flow	Market Yields		21.8	%		19.0	%		25.9	%
				Revenue Multiple		0.62	x		0.30	x		0.80	x
First Lien Senior Secured Loan		15,201,958	Enterprise Value Method	Revenue Multiple		1.77	x		0.40	x		8.43	x
First Lien Senior Secured Loan		1,549,654	Enterprise Value Method	EBITDA Multiple		5.50	x		5.00	x		6.00	x
Second Lien Senior Secured Loan		6,059,372	Discounted Cash Flow	Market Yields		16.6	%		15.5	%		17.7	%
				EBITDA Multiple		7.50	x		7.00	x		8.00	x
Senior Unsecured Note		1,384,446	Discounted Cash Flow	Market Yields		26.7	%		26.7	%		26.7	%
				EBITDA Multiple		9.00	x		8.50	x		9.50	x
Preferred Equity Securities		26,528	Discounted Cash Flow	Market Yields		23.3	%		23.3	%		23.3	%
				Revenue Multiple		0.40	x		0.30	x		0.50
Preferred Equity Securities		4,154,769	Enterprise Value Method	Gross Profit Multiple		2.60	x		2.10	x		3.10	x
				EBITDA Multiple		12.50	x		12.00	x		13.00	x
Preferred Equity Securities		5,511,310	Enterprise Value Method	Revenue Multiple		2.49	x		0.30	x		3.00	x
Preferred Equity Securities		32,111,788	Enterprise Value Method	EBITDA Multiple		7.51	x		3.25	x		14.00	x
Warrants and Other Equity Securities		571,189	Enterprise Value Method	Revenue Multiple		2.50	x		2.00	x		8.43	x
Warrants and Other Equity Securities		5,135,234	Enterprise Value Method	EBITDA Multiple		6.58	x		3.25	x		35.50	x
Fund Investments		2,809,327	Other	N/A		N/A			N/A			N/A
Total Level 3 Assets	$	376,992,972