Derivatives

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 5. Derivatives

The Company enters into derivative financial instruments in the normal course of business to achieve certain risk management objectives, including managing its foreign currency risk exposures on its portfolio holdings.

The fair value of foreign currency contracts are included within Derivative assets at fair value and Derivative liabilities at fair value, respectively, in the Consolidated Statements of Assets and Liabilities.

The table below presents the aggregate notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2024:

	September 30, 2024
Derivative Assets	Level 1		Level 2			Level 3		Total Fair Value			Notional
Foreign currency forward contract	$	—	$	—		$	—	$	—		$	—
Total Derivatives assets at fair value	$	—	$	—		$	—	$	—		$	—
Cash collateral received									—
Derivative Liabilities
Foreign currency forward contract	$	—	$	(587,496	)	$	—	$	(587,496	)	$	17,497,288
Total Derivatives liabilities at fair value	$	—	$	(587,496	)	$	—	$	(587,496	)	$	17,497,288
Cash collateral posted								$	1,410,000

The Company had not entered into any derivative financial instruments as of December 31, 2023.

In the table above:

•The fair value of derivatives assets and derivative liabilities is presented on a gross basis.

•The notional amount represents the absolute value amount of all outstanding derivative contracts.

•All foreign currency derivatives are not designated in hedge relationships.

•The Company has not applied counterparty netting or collateral netting; as such, the amounts of cash collateral received and posted are not offset against the derivative assets and derivative liabilities in the Consolidated Statements of Assets and Liabilities.

The table below presents the impact to the Consolidated Statements of Operations from derivative assets and liabilities not designated in a qualifying hedge accounting relationship for the three and nine month periods ended September 30, 2024 and September 30, 2023, respectively. The unrealized gains and losses on the derivative assets and derivative liabilities not designated in a qualifying hedge accounting relationship are included within Net change in unrealized appreciation (depreciation) on Derivative instruments in the Consolidated Statements of Operations. The realized gains and losses on the derivative assets and derivative liabilities not designated in a qualifying hedge accounting relationship are included within Foreign currency and other transactions in the Consolidated Statements of Operations.

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2024			2023		2024			2023
Unrealized gain (loss)
Foreign currency forward contract	$	(599,133	)	$	—	$	(587,496	)	$	—
Net change in unrealized appreciation (depreciation)	$	(599,133	)	$	—	$	(587,496	)	$	—
Realized gain (loss)
Foreign currency forward contract	$	—		$	—	$	—		$	—
Net realized gain (loss)	$	—		$	—	$	—		$	—

In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”). An ISDA Master Agreement is a bilateral agreement between the

Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.