Fair Value Measurements Investments (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2024	Level 1		Level 2		Level 3		Total
First Lien Senior Secured Loan	$	-	$	-	$	281,382,082	$	281,382,082
Second Lien Senior Secured Loan		-		-		6,118,091		6,118,091
Senior Unsecured Notes		-		-		3,427,073		3,427,073
Preferred Equity Securities		-		-		45,273,253		45,273,253
Warrants and Other Equity Securities		-		-		6,462,674		6,462,674
Total	$	-	$	-	$	342,663,173	$	342,663,173
Fund Investments								2,818,111
Total Investments							$	345,481,284

	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 and nine months ended September 30, 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 June 30, 2024	$	266,987,705		$	6,073,644		$	3,427,073	$	40,480,202	$	5,985,419	$	2,818,111	$	325,772,154
Net change in unrealized gain (loss) on investments		(2,032,140	)		73,855			-		1,254,589		477,255		-		(226,441	)
Purchases of investments and other adjustments to cost ⁽¹⁾		18,557,493			21,490			-		3,538,462		-		-		22,117,445
Proceeds from principal repayments⁽²⁾		(2,130,976	)		(50,898	)		-		-		-		-		(2,181,874	)
Balance as of September 30, 2024	$	281,382,082		$	6,118,091		$	3,427,073	$	45,273,253	$	6,462,674	$	2,818,111	$	345,481,284

(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.

	Investments
	First Lien Senior Secured Loan			Second Lien Senior Secured Loan			Senior Unsecured Notes			Preferred Equity Securities			Warrants and Other Equity		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 realized gain (loss) on investments		-			-			-			2,034,517			-		-		2,034,517
Net change in unrealized gain (loss) on investments		(4,840,190	)		188,237			(1,384,446	)		(4,860,702	)		25,980		8,784		(10,862,337	)
Purchases of investments and other adjustments to cost ⁽¹⁾		23,969,777			29,415			8,874			3,748,495			-		-		27,756,561
Proceeds from sales of investments		(116,674	)		-			-			(2,632,407	)		-		-		(2,749,081	)
Proceeds from principal repayments⁽²⁾		(47,515,376	)		(158,933	)		-			(17,039	)		-		-		(47,691,348	)
Lien status change⁽³⁾		(9,344,464	)		-			3,418,199			5,195,994			730,271		-		-
Balance as of September 30, 2024	$	281,382,082		$	6,118,091		$	3,427,073		$	45,273,253		$	6,462,674	$	2,818,111	$	345,481,284

(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, April 1, 2024 or at time of restructure.

	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 June 30, 2023	$	300,442,483		$	6,201,918		$	1,594,222		$	31,765,981	$	7,584,040		$	3,170,166		$	350,758,810
Net change in unrealized gain (loss) on investments		(1,102,579	)		83,320			(166,748	)		1,834,924		(1,329,513	)		(436,963	)		(1,117,559	)
Purchases of investments and other adjustments to cost⁽¹⁾		29,568,585			(15,627	)		-			5,042,741		-			-			34,595,699
Proceeds from principal repayments ₍₂₎		(7,222,643	)		(50,897	)		-			-		-			-			(7,273,540	)
Balance as of September 30, 2023	$	321,685,846		$	6,218,714		$	1,427,474		$	38,643,646	$	6,254,527		$	2,733,203		$	376,963,410

(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.

	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 realized gain on investments		45,283			-			-			-			-		-			45,283
Net change in unrealized gain (loss) on investments		(2,563,379	)		115,818			(270,298	)		3,112,737			5,221		(311,925	)		88,174
Purchases of investments and other adjustments to cost⁽¹⁾		76,767,867			5,317			69,697			10,070,252			419,877		-			87,333,010
Proceeds from sales of investments		(2,679,712	)		-			-			-			-		-			(2,679,712	)
Proceeds from principal repayments ⁽²⁾		(10,866,335	)		(152,691	)		-			-			-		-			(11,019,026	)
Lien status change		-			-			1,628,075			(1,628,075	)		-		-			-
Balance as of September 30, 2023	$	321,685,846		$	6,218,714		$	1,427,474		$	38,643,646		$	6,254,527	$	2,733,203		$	376,963,410

(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 September 30, 2024.

Range

Fair Value

Valuation Technique

Unobservable

Input

Weighted

Average Mean

Minimum

Maximum

Assets:

First Lien Senior Secured Loan

233,758,448

Discounted Cash Flow

Market Yields

14.5

7.0

28.0

EBITDA Multiple

8.67

4.25

35.50

First Lien Senior Secured Loan

11,423,044

Enterprise Value Method

Revenue Multiple

1.01

0.37

2.60

First Lien Senior Secured Loan

16,456,917

Enterprise Value Method

EBITDA Multiple

6.56

3.00

8.25

First Lien Senior Secured Loan

19,743,673

Other

N/A

Second Lien Senior Secured Loan

6,118,091

Discounted Cash Flow

Market Yields

14.2

13.4

15.1

EBITDA Multiple

7.50

7.00

8.00

Senior Unsecured Note

3,427,073

Enterprise Value Method

EBITDA Multiple

10.00

9.50

10.50

Preferred Equity Securities

4,945,909

Enterprise Value Method

Gross Profit Multiple

2.59

2.24

2.93

EBITDA Multiple

13.19

12.55

13.83

Preferred Equity Securities

5,800,061

Enterprise Value Method

Revenue Multiple

2.06

0.37

2.60

Preferred Equity Securities

30,988,821

Enterprise Value Method

EBITDA Multiple

7.60

3.00

13.75

Preferred Equity Securities

3,538,462

Other

N/A

Warrants and Other Equity Securities

5,616,388

Enterprise Value Method

EBITDA Multiple

7.57

3.00

35.50

Warrants and Other Equity Securities

13,801

Enterprise Value Method

Revenue Multiple

1.65

0.70

2.60

Warrants and Other Equity Securities

832,485

Other

N/A

Fund Investments

2,818,111

Other

N/A

Total Level 3 Assets

345,481,284

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	x
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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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