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Investments and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Investments and Fair Value Measurements [Abstract]  
Investment Portfolio at Cost and Fair Value

The composition of the Company’s investment portfolio at cost and fair value as of December 31, 2023 was as follows:

 

 

December 31, 2023

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments at Fair
Value

 

First lien debt

 

$

313,932,958

 

 

$

317,768,488

 

 

 

90.18

%

Second lien debt

 

 

16,498,048

 

 

 

19,050,076

 

 

 

5.41

%

Equity

 

 

14,792,309

 

 

 

15,559,956

 

 

 

4.41

%

Total investments

 

$

345,223,315

 

 

$

352,378,520

 

 

 

100.00

%

 

The industry composition of investments based on fair value as of December 31, 2023 was as follows:

 

 

December 31, 2023

 

Services: Business

 

 

29.48

%

Healthcare & Pharmaceuticals

 

 

10.19

 

Consumer goods: Non-durable

 

 

9.25

 

Capital Equipment

 

 

8.59

 

Hotel, Gaming & Leisure

 

 

6.31

 

Utilities: Electric

 

 

4.64

 

Automotive

 

 

3.76

 

Energy: Electricity

 

 

3.62

 

Banking, Finance, Insurance & Real Estate

 

 

2.64

 

Chemicals, Plastics, & Rubber

 

 

2.55

 

Construction & Building

 

 

2.18

 

Containers, Packaging & Glass

 

 

1.98

 

Media: Advertising, Printing & Publishing

 

 

1.97

 

Services: Consumer

 

 

1.85

 

High Tech Industries

 

 

1.68

 

Environmental Industries

 

 

1.62

 

Energy: Oil & Gas

 

 

1.41

 

Media: Broadcasting & Subscription

 

 

1.36

 

Aerospace & Defense

 

 

1.31

 

Transportation: Cargo

 

 

1.22

 

Consumer goods: Durable

 

 

0.98

 

Metals & Mining

 

 

0.85

 

Retail

 

 

0.55

 

Total

 

 

100

%

 

The geographic composition of investments at cost and fair value was as follows:

 

 

December 31, 2023

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at
Fair Value

 

 

Fair Value
as % of Net
Assets

 

United States

 

$

340,353,603

 

 

$

347,440,385

 

 

 

98.60

%

 

 

156.78

%

Canada

 

 

3,885,951

 

 

 

3,954,000

 

 

 

1.12

%

 

 

1.78

%

Luxembourg

 

 

983,761

 

 

 

984,135

 

 

 

0.28

%

 

 

0.44

%

Total

 

$

345,223,315

 

 

$

352,378,520

 

 

 

100.00

%

 

 

159.00

%
Fair Value Hierarchy of Investments

The following table presents the fair value hierarchy of the Company’s investment portfolio as of December 31, 2023:

 

 

December 31, 2023

 

Assets

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

179,350,279

 

 

$

138,418,209

 

 

$

317,768,488

 

Second Lien Debt

 

—

 

 

—

 

 

 

19,050,076

 

 

 

19,050,076

 

Subtotal

 

$

—

 

 

$

179,350,279

 

 

$

157,468,285

 

 

$

336,818,564

 

Investment measured at net asset value(1)

 

 

 

 

 

 

 

 

 

 

 

15,559,956

 

Total

 

 

 

 

 

 

 

 

 

 

 

352,378,520

 

 

(1)
The Company, as a practical expedient, estimates the fair value of its investment in KKR Tinder TFC Aggregator L.P. using the net asset value of the Company’s members’ interest in the entity. As such, the fair value has not been classified within the fair value hierarchy.
Fair Value of Investments

The following table presents changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the year ended December 31, 2023.

 

 

First Lien
Debt

 

 

Second Lien Debt

 

 

Total

 

Balance as of February 1, 2023 (commencement of operations)

 

$

—

 

 

$

—

 

 

$

—

 

Purchases of investments

 

 

141,566,417

 

 

 

13,500,000

 

 

 

155,066,417

 

Proceeds from principal repayments and sales of investments

 

 

(4,589,545

)

 

 

—

 

 

 

(4,589,545

)

Payment-in-kind

 

 

—

 

 

 

2,775,581

 

 

 

2,775,581

 

Net accretion of discount on investments

 

 

326,393

 

 

 

222,467

 

 

 

548,860

 

Net realized gain (loss)

 

 

53,799

 

 

 

—

 

 

 

53,799

 

Net change in unrealized appreciation/(depreciation)

 

 

1,061,145

 

 

 

2,552,028

 

 

 

3,613,173

 

Transfers into Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Balance as of December 31, 2023

 

$

138,418,209

 

 

$

19,050,076

 

 

$

157,468,285

 

Net change in unrealized appreciation (depreciation) on Level 3
   investments still held at the end of the period

 

$

1,061,145

 

 

$

2,552,028

 

 

$

3,613,173

 
Valuation Techniques and Significant Unobservable Inputs of Level 3 Investments

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of December 31, 2023 were as follows:

 

Investment Type

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input

 

Range

 

Weighted
Average (2)

 

Second Lien Debt

 

$

19,050,076

 

 

Discounted cash flow

 

Discount rate

 

15.50%

 

15.50%

 

First Lien Debt

 

 

79,221,269

 

 

Discounted cash flow

 

Discount rate

 

9.86% - 13.44%

 

10.95%

 

 

 

 

18,288,599

 

 

Market quotations

 

Broker quoted price

 

95.75 - 100.5

 

 

98.35

 

 

 

40,908,341

 

 

Transactional Value (1)

 

N/A

 

N/A

 

N/A

 

 

$

157,468,285

 

 

 

 

 

 

 

 

 

 

 

(1)
Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio companies since the transaction date.
(2)
Unobservable inputs were weighted by the relative fair value of investments.