Commitments, Contingencies, and Risks

9 Months Ended

Sep. 30, 2024

Commitments, Contingencies, and Risks [Abstract]

Commitments, Contingencies, and Risks

Note 11. Commitments, Contingencies, and Risks

Commitments: As of September 30, 2024 and December 31, 2023, the Company had $13,579,832 and $15,600,970 in outstanding commitments to direct investments and $1,101,695 and $1,101,625 in outstanding commitments to fund investments, respectively.

September 30, 2024	Outstanding Commitments
Direct Investments
The Range NYC, LLC (dba Five Iron Golf)	$	6,722,689
Qualified Digital, LLC		6,857,143
Total Direct Investments	$	13,579,832
Fund Investments
Madryn Select Opportunities, LP	$	1,101,695
Total Fund Investments	$	1,101,695
Total	$	14,681,527

December 31, 2023	Outstanding Commitments
Direct Investments
Consolidated Machine & Tool Holdings, LLC	$	267,525
PPC Event Services, Inc.		2,391,846
TCP Acquisition, LLC		5,595,960
The Range NYC, LLC (dba Five Iron Golf)		6,722,689
YTC Holdings, Inc. (dba Yorktel)		622,950
Total Direct Investments	$	15,600,970
Fund Investments
Madryn Select Opportunities, LP	$	1,101,625
Total Fund Investments	$	1,101,625
Total	$	16,702,595

Management believes that the Company’s available cash balance and the balance available to be drawn from the Secured Credit Facility provide sufficient funds to cover its unfunded commitments as of September 30, 2024 and December 31, 2023.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these agreements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote.

Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently aware of any such proceedings or disposition that would have a material adverse effect on the Company’s consolidated financial statements.

Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.