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Investments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2023 was as follows:
 
   
September 30, 2023
  
   
Amortized
Cost
    
Fair
Value
    
% of Total
Investments
at Fair
Value
  
First lien debt
  
$
293,137,804
     $
295,536,498
      
89.93
%
Second lien debt
  
15,784,966    
18,317,694       5.57 %
Equity
  
14,792,309    
14,792,309       4.50 %
Total investments
  
$
323,715,079
    
$
328,646,501
      
100.00
%
 

The industry composition of investments based on fair value as of September 30, 2023 was as follows:


   
September 30, 2023
  
Services: Business
    
24.93
%
Capital Equipment
    
7.55
  
Healthcare & Pharmaceuticals
    
7.17
  
Utilities: Electric
    
6.99
  
Consumer Goods: Non-Durable
    
6.70
  
Hotel, Gaming & Leisure
    
6.55
  
Automotive
    
5.35
  
Construction & Building
    
4.77
  
Energy: Electricity
    
3.23
  
High Tech Industries
     3.16  
Banking, Finance, Insurance & Real Estate
    
3.07
  
Chemicals, Plastics & Rubber
    
2.71
  
Transportation: Cargo
    
2.24
  
Retail
    
2.02
  
Containers, Packaging & Glass
    
1.76
  
Media: Broadcasting & Subscription
    
1.71
  
Aerospace & Defense
    
1.70
  
Metals & Mining
    
1.51
  
Media: Advertising, Printing & Publishing
    
1.49
  
Services: Consumer
    
1.21
  
Energy: Oil & Gas
    
1.19
  
Environmental Industries
    
1.16
  
Consumer Goods: Durable
    
1.05
  
Transportation: Consumer
     0.78  
Total
    
100.00
%



The geographic composition of investments at cost and fair value was as follows:
 
   
September 30, 2023
  
   
Amortized
Cost
    
Fair
Value
    
% of Total
Investments
at
Fair Value
    
Fair Value as %
of Net Assets
  
United States
  
$
318,847,728
    
$
323,806,410
      
98.53
%
    
147.49
%
Canada
    
3,881,231
      
3,852,000
      
1.17
%
    
1.75
%
Luxembourg
    
986,120
      
988,091
      
0.30
%
    
0.45
%
Total
  
$
323,715,079
    
$
328,646,501
      
100.00
%
    
149.69
%
Fair Value Hierarchy of Investments

The following table presents the fair value hierarchy of the Company’s investment portfolio as of September 30, 2023:

   
September 30, 2023
  
Assets
  
Level 1
    
Level 2
    
Level 3
    
Total
  
First Lien Debt
  
$
—
    
$
223,432,970
    
$
72,103,528
    
$
295,536,498
  
Second Lien Debt
     —       —       18,317,694       18,317,694  
Equity
     —       —       14,792,309       14,792,309  
Total investments
  
$
—
    
$
223,432,970
    
$
105,213,531
    
$
328,646,501
  
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 three and nine months ended September 30, 2023, respectively:


  
First Lien
Debt
   
Second Lien
Debt
    
Equity
    
Total
  
Balance as of July 1, 2023
  
$
58,960,066
     $ 17,655,000     $ —    
$
76,615,066
  
Purchases of investments
    
13,152,473
       —       14,792,309      
27,944,782
  
Proceeds from principal pre-payments and sales of investments
    
(444,715
)
     —       —      
(444,715
)
Payment-in-kind
    
—
       619,340       —      
619,340
  
Net accretion of discount on investments
    
75,220
       161,304       —      
236,524
  
Net change in unrealized appreciation/depreciation
    
360,484
       (117,950 )     —      
242,534
  
Transfers into Level 3
    
—
       —       —      
—
  
Transfers out of Level 3
    
—
       —       —      
—
  
Balance as of September 30, 2023
  
$
72,103,528
     $ 18,317,694     $ 14,792,309    
$
105,213,531
  
 
                                
Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period
  
$
360,484
     $ (117,950 )   $ —    
$
242,534
  

 
  
First Lien
Debt
     Second Lien
 Debt
    
 Equity
    
Total
  
Balance as of February 1, 2023 (commencement of operations)
  
$
—
     $ —     $
 —    
$
—
  
Purchases of investments
    
72,432,072
       13,500,000       14,792,309      
100,724,381
  
Proceeds from principal pre-payments and sales of investments
    
(770,643
)
     —       —      
(770,643
)
Payment-in-kind
    
—
       2,119,340       —      
2,119,340
  
Net accretion of discount on investments
    
90,586
       165,627       —      
256,213
  
Net change in unrealized appreciation/depreciation
    
351,513
    2,532,727       —      
2,884,240
  
Transfers into Level 3
    
—
       —       —      
—
  
Transfers out of Level 3
    
—
       —       —      
—
  
Balance as of September  30, 2023
  
$
72,103,528
     $ 18,317,694     $
 14,792,309    
$
105,213,531
  
 
                                
Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period
  
$
351,513
  $ 2,532,727     $
 —    
$
2,884,240
  
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 September 30, 2023 were as follows:

    
Investment Type
  
Fair Value
  
Valuation Technique
  
Unobservable
Input
    
Range
    
Weighted
Average (3)
 
Second Lien Debt
  
$
18,317,694
  
Discounted cash flow
  
Discount rate (1)
      
15.5
%
     15.5 %
First Lien Debt
   
62,292,590
  
Discounted cash flow
  
Discount rate (1)
      
11.09%-14.22
%
     11.73 %
      9,810,938  
Transactional Value (2)
     N/A
      
N/A
       N/A
  
Equity
     14,792,309   Transactional Value (2)
    N/A
      
N/A
       N/A
  
 
  
$
105,213,531
  
 
                        

(1)
Significant increases in discount rates would result in a significantly lower fair value measurement.
(2)
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.
(3)
Unobservable inputs were weighted by the relative fair value of investments.