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Distributions
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Distributions Distributions
The following tables reflect the cash distributions per share that the Company has declared on its Common Shares during the years ended December 31, 2024 and 2023:
For the Year Ended December 31, 2024
Date DeclaredDistributionRecord DatePayment DateDistribution per Share
January 5, 2024RegularJanuary 31, 2024February 27, 2024$0.24 
February 20, 2024RegularFebruary 29, 2024March 26, 20240.24 
March 7, 2024RegularMarch 28, 2024April 26, 20240.25 
April 3, 2024RegularApril 30, 2024May 29, 20240.25 
May 2, 2024RegularMay 31, 2024June 26, 20240.25 
June 11, 2024RegularJune 28, 2024July 29, 20240.25 
June 11, 2024SpecialJune 28, 2024July 29, 20240.10 
July 11, 2024RegularJuly 31, 2024August 28, 20240.25 
July 31, 2024RegularAugust 30, 2024September 26, 20240.25 
September 16, 2024RegularSeptember 30, 2024October 29, 20240.25 
September 16, 2024SpecialSeptember 30, 2024October 29, 20240.10 
October 10, 2024RegularOctober 31, 2024November 26, 20240.25 
November 7, 2024RegularNovember 29, 2024December 27, 20240.25 
December 12, 2024RegularDecember 31, 2024January 29, 20250.25 
December 12, 2024SpecialDecember 31, 2024January 29, 20250.10 
Total$3.28 
For the Year Ended December 31, 2023
Date DeclaredDistributionRecord DatePayment DateDistribution per Share
September 26, 2023RegularSeptember 29, 2023October 27, 2023$0.24 
September 26, 2023RegularOctober 31, 2023November 28, 20230.24 
September 26, 2023RegularNovember 30, 2023December 27, 20230.24 
September 26, 2023RegularDecember 29, 2023January 30, 20240.24 
Total$0.96 
Subject to applicable legal restrictions and the sole discretion of the Company’s Board, the Company intends to declare and pay regular cash distributions on a monthly basis. From time to time, the Company may also declare and pay special interim distributions in the form of cash or shares of its Common Shares at the discretion of the Company’s Board. These distributions have been or will be paid monthly to shareholders of record as of monthly record dates previously determined by the Company’s Board. Shareholders receive the distribution payments in cash or in Common Shares in accordance with their election under the Company’s distribution reinvestment plan. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Company’s Board.
The Company may fund its cash distributions to shareholders from any sources of funds legally available to it, including proceeds from the sale of Common Shares in the Private Offering, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. During certain periods, the Company’s distributions may exceed its earnings. As a result, it is possible that a portion of the distributions the Company makes may represent a return of capital. A return of capital generally is a return of a shareholder’s investment rather than a return of earnings or gains derived from the Company’s investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, which is a nontaxable distribution) will be mailed to the Company’s shareholders. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.
The following table reflects the sources of the cash distributions on a tax basis that the Company has paid on its Common Shares during the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
Source of DistributionDistribution AmountPercentageDistribution AmountPercentage
Offering proceeds$— — $— — 
Borrowings— — — — 
Net investment income(1)
54,211 99 %8,119 100 %
Short-term capital gains proceeds from the sale of assets410 1 %— — 
Long-term capital gains proceeds from the sale of assets— — — — 
Non-capital gains proceeds from the sale of assets— — — — 
Distributions on account of preferred and common equity— — — — 
Total$54,621 100 %$8,119 100 %
________________
(1)During the years ended December 31, 2024 and 2023, 96.0% and 98.3%, respectively, of the Company’s gross investment income was attributable to cash income earned, 1.3% and 1.5%, respectively, was attributable to non-cash accretion of discount and 2.7% and 0.2%, respectively, was attributable to paid-in-kind, or PIK, interest.
The Company’s net investment income on a tax basis for the years ended December 31, 2024 and 2023 was $55,568 and $9,875, respectively. As of December 31, 2024 and 2023, the Company had $3,186 and $2,120, respectively, of undistributed net investment income and $21 and $0, respectively, of accumulated capital gains on a tax basis.
The Company’s undistributed net investment income on a tax basis may be adjusted following the filing of the Company’s tax returns. The adjustment is in general due to tax-basis income received by the Company differing from GAAP-basis income on account of interests in partnerships held in its investment portfolio during such period.
The difference between the Company’s GAAP-basis net investment income and its tax-basis net investment income is primarily due to the reclassification of unamortized original issue discount from income for GAAP purposes to realized gains or deferred to future periods for tax purposes, the reversal of the capital gains incentive fee accrued on unrealized gains, the reversal of non-deductible excise taxes and differences between income and expense recognition for GAAP and tax purposes.
The following table sets forth a reconciliation between GAAP-basis net investment income and tax-basis net investment income during the years ended December 31, 2024 and 2023:
Year Ended December 31,
 20242023
GAAP-basis net investment income$53,872 $10,045 
Reversal of capital gains incentive fee1,076 390 
Excise taxes234 73 
Reclassification of unamortized original issue discount
(109)(405)
Other miscellaneous differences495 (228)
Tax-basis net investment income$55,568 $9,875 
The Company may make certain adjustments to the classification of shareholders’ equity as a result of permanent book-to-tax differences. During the year ended December 31, 2024, the Company decreased capital in excess of par value and accumulated undistributed (distributions in excess of) net investment income by $240 and $83, respectively, and increased accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $323. During the year ended December 31, 2023, the Company increased capital in excess of par value and accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $396 and $389, respectively, and decreased accumulated undistributed (distributions in excess of) net investment income by $785.
The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.
As of December 31, 2024 and 2023, the components of accumulated earnings on a tax basis were as follows:
December 31, 2024December 31, 2023
Distributable ordinary income$3,186 $2,120 
Distributable realized gains (accumulated capital losses)21 — 
Unamortized organizational costs
(924)— 
Other temporary differences(1,466)(390)
Net unrealized appreciation (depreciation)(1)
12,175 3,268 
Total$12,992 $4,998 
________________
(1)As of December 31, 2024 and 2023, the Company’s gross unrealized appreciation on a tax basis was $13,838 and $3,854, respectively. As of December 31, 2024 and 2023, the Company’s gross unrealized depreciation on a tax basis was $1,663 and $586, respectively.
The aggregate cost of the Company’s investments for U.S. federal income tax purposes totaled $1,052,681 and $260,461 as of December 31, 2024 and 2023, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis was $11,392 and $3,469 as of December 31, 2024 and 2023, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from foreign currency forward contracts and foreign currency transactions.