The Company invests predominately in senior secured private debt investments in well-established middle-market businesses that operate across a wide range of industries, as well as syndicated senior secured loans, structured product investments, bonds and other fixed income securities. Structured product investments include collateralized loan obligations and asset-backed securities. The Adviser’s existing SEC co-investment exemptive relief under the 1940 Act permits the Company and the Adviser’s affiliated private funds and SEC-registered funds to co-invest in loans originated by the Adviser, which allows the Adviser to efficiently implement its senior secured private debt investment strategy for the Company.


($ in thousands)	Cost		Percent of Total Portfolio		Fair Value		Percent of Total Portfolio		Percent of Total Net Assets
December 31, 2023:
Senior debt and 1st lien notes	$	1,705,353	67	%	$	1,670,300	67	%	140	%
Subordinated debt and 2nd lien notes	256,850		10		238,215		10		20
Structured products	107,314		4		93,038		4		8
Equity shares	320,335		13		374,704		15		31
Equity warrants	76		—		2,392		—		—
Investments in joint ventures / PE fund	145,648		6		110,066		4		9

	$	2,535,576	100	%	$	2,488,715	100	%	208	%
December 31, 2022:
Senior debt and 1st lien notes	$	1,752,943	69	%	$	1,696,192	69	%	142	%
Subordinated debt and 2nd lien notes	326,639		13		263,139		11		22
Structured products	88,805		3		73,550		3		6
Equity shares	230,188		9		284,570		12		24
Equity warrants	178		—		1,057		—		—
Investments in joint ventures / PE fund	163,645		6		130,427		5		11

	$	2,562,398	100	%	$	2,448,935	100	%	205	%

During the year ended December 31, 2023, the Company made 39 new investments totaling $264.6 million, made investments in existing portfolio companies totaling $205.9 million, made a $67.5 million equity co-investment alongside certain affiliates in a portfolio company that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation and made additional investments in joint venture equity portfolio companies totaling $2.5 million.

During the year ended December 31, 2021, the Company made 112 new investments totaling $1,069.4 million, made investments in existing portfolio companies totaling $234.0 million, made a new joint venture equity investment totaling $13.7 million, made additional investments in existing joint venture equity portfolio companies totaling $79.4 million and made an $89.8 million equity co-investment alongside certain affiliates in a portfolio company focused on directly originated, senior-secured asset-backed loans to middle market companies.


($ in thousands)	December 31, 2023		Percent of Portfolio		Percent of Total Net Assets		December 31, 2022		Percent of Portfolio		Percent of Total Net Assets
Aerospace and Defense	$	132,498	5.3	%	11.1	%	$	120,945	4.9	%	10.1	%
Automotive	80,828		3.3		6.7		76,934		3.2		6.5
Banking, Finance, Insurance and Real Estate	401,816		16.1		33.6		312,936		12.8		26.2
Beverage, Food and Tobacco	23,135		0.9		1.9		34,690		1.4		2.9
Capital Equipment	128,706		5.2		10.8		141,479		5.8		11.9
Chemicals, Plastics, and Rubber	35,897		1.5		3.0		47,076		1.9		3.9
Construction and Building	30,387		1.2		2.5		45,049		1.8		3.8
Consumer goods: Durable	47,074		1.9		3.9		43,932		1.8		3.7
Consumer goods: Non-durable	28,210		1.1		2.4		27,693		1.1		2.3
Containers, Packaging and Glass	37,524		1.5		3.1		37,877		1.5		3.2
Energy: Electricity	20,874		0.8		1.7		7,337		0.3		0.6
Energy: Oil and Gas	3,240		0.1		0.3		4,776		0.2		0.4
Environmental Industries	53,484		2.1		4.5		51,006		2.1		4.3
Healthcare and Pharmaceuticals	216,952		8.7		18.1		203,576		8.3		17.1
High Tech Industries	303,082		12.2		25.4		300,980		12.3		25.2
Hotel, Gaming and Leisure	54,256		2.2		4.5		54,023		2.2		4.5
Investment Funds and Vehicles	110,066		4.4		9.2		130,427		5.3		10.9
Media: Advertising, Printing and Publishing	39,447		1.6		3.3		55,477		2.3		4.7
Media: Broadcasting and Subscription	13,277		0.5		1.1		20,257		0.8		1.7
Media: Diversified and Production	64,559		2.6		5.4		60,561		2.5		5.1
Metals and Mining	8,993		0.4		0.8		33,125		1.4		2.8

Services: Business	326,762		13.2		27.3		338,417		13.8		28.4
Services: Consumer	61,409		2.5		5.1		67,070		2.7		5.6
Structured Products	102,922		4.1		8.6		86,703		3.5		7.3
Telecommunications	27,565		1.1		2.3		24,058		1.0		2.0
Transportation: Cargo	96,450		3.9		8.1		89,398		3.7		7.5
Transportation: Consumer	11,951		0.5		1.0		11,062		0.5		0.9
Utilities: Electric	22,696		0.9		1.9		17,374		0.7		1.5
Utilities: Oil and Gas	4,655		0.2		0.4		4,697		0.2		0.4

Total	$	2,488,715	100.0	%	208.0	%	$	2,448,935	100.0	%	205.4	%


	Fair Value at December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	76,503	$	1,593,797	$	1,670,300
Subordinated debt and 2nd lien notes	—		14,417		223,798		238,215
Structured products	—		50,066		42,972		93,038
Equity shares	132		—		374,572		374,704
Equity warrants	—		—		2,392		2,392

Investments subject to leveling	$	132	$	140,986	$	2,237,531	$	2,378,649
Investments in joint ventures / PE fund(1)							110,066
							$	2,488,715

	Fair Value at December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	104,836	$	1,591,356	$	1,696,192
Subordinated debt and 2nd lien notes	—		28,925		234,214		263,139
Structured products	—		55,723		17,827		73,550
Equity shares	164		1,339		283,067		284,570
Equity warrants	—		—		1,057		1,057

Investments subject to leveling	$	164	$	190,823	$	2,127,521	$	2,318,508
Investments in joint ventures / PE fund(1)							130,427
							$	2,448,935

(1)The Company’s investments in Jocassee, Sierra JV, Thompson Rivers, Waccamaw River and the MVC Private Equity Fund LP (each as defined below) are measured at fair value using NAV and have not been categorized in the fair value hierarchy. The fair value amount presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.


Year Ended December 31, 2023: ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Total
Fair value, beginning of period	$	1,591,356	$	234,214	$	17,827	$	283,067	$	1,057	$	2,127,521
New investments	396,040		49,525		28,286		94,595		—		568,446

Transfers into (out of) Level 3, net	(15,843)		16,815		—		914		—		1,886
Proceeds from sales of investments	(246,902)		(2,800)		(526)		(8,977)		—		(259,205)
Loan origination fees received	(8,173)		(113)		—		—		—		(8,286)
Principal repayments received	(151,817)		(83,986)		(1,018)		—		—		(236,821)
Payment-in-kind interest/dividends	6,757		9,877		—		8,677		—		25,311
Accretion of loan premium/discount	668		916		—		—		—		1,584
Accretion of deferred loan origination revenue	7,420		702		—		—		—		8,122
Realized gain (loss)	(1,746)		(43,902)		—		(590)		(102)		(46,340)
Unrealized appreciation (depreciation)	16,037		42,550		(1,597)		(3,114)		1,437		55,313
Fair value, end of period	$	1,593,797	$	223,798	$	42,972	$	374,572	$	2,392	$	2,237,531


Year Ended December 31, 2022: ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Total
Fair value, beginning of period	$	1,137,323	$	230,569	$	—	$	151,282	$	864	$	1,520,038
New investments	907,398		95,157		14,893		71,576		4		1,089,028
Investments acquired in Sierra Merger	210,176		54,177		—		7,065		72		271,490
Transfers into (out of) Level 3, net	43		(11,848)		4,905		7,263		41		404
Proceeds from sales of investments	(323,831)		(21,555)		—		(7,304)		(250)		(352,940)
Loan origination fees received	(18,803)		(1,317)		—		—		—		(20,120)
Principal repayments received	(270,795)		(77,293)		(357)		—		—		(348,445)
Payment-in-kind interest/dividends	2,996		11,330		—		1,677		—		16,003
Accretion of loan premium/discount	790		89		—		—		—		879
Accretion of deferred loan origination revenue	8,338		2,734		—		—		—		11,072
Realized gain (loss)	(13,163)		(2,781)		—		1,096		(760)		(15,608)
Unrealized appreciation (depreciation)	(49,116)		(45,048)		(1,614)		50,412		1,086		(44,280)
Fair value, end of period	$	1,591,356	$	234,214	$	17,827	$	283,067	$	1,057	$	2,127,521

All realized gains and losses and unrealized appreciation and depreciation are included in earnings (changes in net assets) and are reported on separate line items within the Company’s Consolidated Statements of Operations. Pre-tax net unrealized appreciation on Level 3 investments of $4.0 million during the year ended December 31, 2023 was related to portfolio company investments that were still held by the Company as of December 31, 2023. Pre-tax net unrealized depreciation on Level 3 investments of $45.3 million during the year ended December 31, 2022 was related to portfolio company investments that were still held by the Company as of December 31, 2022.

During the year ended December 31, 2023, the Company made investments of approximately $421.2 million in portfolio companies to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2023, the Company made investments of $119.3 million in companies to which it was previously committed to provide such financing.

During the year ended December 31, 2022, the Company made investments of approximately $1,529.6 million in portfolio companies to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2022, the Company made investments of $83.6 million in companies to which it was previously committed to provide such financing.

On May 8, 2019, the Company entered into an agreement with South Carolina Retirement Systems Group Trust (“SCRS”) to create and co-manage Jocassee Partners LLC (“Jocassee”), a joint venture, which invests in a highly diversified asset mix including senior secured, middle-market, private debt investments, syndicated senior secured loans and structured product investments. The Company and SCRS committed to initially provide $50.0 million and $500.0 million, respectively, of equity capital to Jocassee. On June 2, 2022, the Company committed an additional $50.0 million to Jocassee. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments.

The total value of Jocassee’s investment portfolio was $1,330.5 million as of December 31, 2023, as compared to $1,219.9 million as of December 31, 2022. As of December 31, 2023, Jocassee’s investments had an aggregate cost of $1,375.7 million, as compared to $1,296.4 million as of December 31, 2022. As of December 31, 2023 and December 31, 2022, the weighted average yield on the principal amount of Jocassee’s outstanding debt investments was approximately 9.9% and 8.6%, respectively. As of December 31, 2023 and December 31, 2022, the Jocassee investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
December 31, 2023:
Senior debt and 1st lien notes	$	1,284,098	93	%	$	1,260,183	95	%
Subordinated debt and 2nd lien notes	21,728		2		21,262		2

Equity shares	449		—		268		—
Equity warrants	—		—		467		—
Investment in joint ventures	54,563		4		33,450		2
Short-term investments	14,896		1		14,896		1
	$	1,375,734	100	%	$	1,330,526	100	%
December 31, 2022:
Senior debt and 1st lien notes	$	1,177,895	91	%	$	1,123,760	92	%
Subordinated debt and 2nd lien notes	23,141		2		21,659		2

Equity shares	8,521		—		2,458		—
Equity warrants	31		—		158		—
Investment in joint ventures	75,941		6		61,028		5
Short-term investments	10,826		1		10,826		1
	$	1,296,355	100	%	$	1,219,889	100	%


($ in thousands)	December 31, 2023				December 31, 2022
Aerospace and Defense	$	82,200	6.3	%	$	69,133	5.7	%
Automotive	26,087		2.0		20,625		1.7
Banking, Finance, Insurance and Real Estate	121,798		9.3		105,047		8.7
Beverage, Food and Tobacco	30,637		2.3		25,885		2.1
Capital Equipment	17,986		1.4		25,014		2.1
Chemicals, Plastics, and Rubber	37,030		2.8		33,111		2.7
Construction and Building	16,942		1.3		17,616		1.5
Consumer goods: Durable	26,412		2.0		18,751		1.7
Consumer goods: Non-durable	21,850		1.7		22,861		1.9
Containers, Packaging and Glass	26,829		2.0		24,445		2.0

Energy: Electricity	20,250		1.5		15,375		1.3
Energy: Oil and Gas	6,724		0.5		5,726		0.5
Environmental Industries	6,986		0.5		7,314		0.6
Forest Products & Paper	3,605		0.3		2,269		0.2
Healthcare and Pharmaceuticals	141,070		10.7		128,983		10.7
High Tech Industries	174,572		13.3		141,906		11.7
Hotel, Gaming and Leisure	22,834		1.7		23,587		2.0
Investment Funds and Vehicles	33,450		2.5		61,028		5.0
Media: Advertising, Printing and Publishing	12,081		0.9		5,969		0.5
Media: Broadcasting and Subscription	31,201		2.4		34,676		2.9
Media: Diversified and Production	34,391		2.6		28,897		2.4
Metals and Mining	3,863		0.3		5,069		0.4
Retail	13,141		1.0		15,720		1.3
Services: Business	222,610		16.9		199,805		16.5
Services: Consumer	58,632		4.5		52,543		4.3

Telecommunications	36,027		2.7		38,034		3.1
Transportation: Cargo	57,575		4.4		56,018		4.6
Transportation: Consumer	12,613		1.0		12,562		1.0
Utilities: Electric	9,396		0.7		4,194		0.3
Utilities: Oil and Gas	6,838		0.5		6,900		0.6

Total	$	1,315,630	100.0	%	$	1,209,063	100.0	%


	December 31, 2023				December 31, 2022
Australia	$	26,291	2.0	%	$	26,111	2.1	%
Austria	6,026		0.5	%	6,697		0.5
Belgium	20,379		1.5		16,385		1.4
Canada	3,998		0.3		7,280		0.6
Denmark	1,082		0.1		953		0.1
Finland	2,207		0.2		1,967		0.2
France	137,072		10.4		133,682		11.1
Germany	50,672		3.9		38,068		3.1
Hong Kong	14,162		1.1		16,593		1.4
Ireland	7,445		0.6		4,334		0.4

Luxembourg	1,839		0.1		1,759		0.1
Netherlands	41,260		3.1		35,194		2.9
Panama	1,466		0.1		945		0.1
Singapore	4,980		0.4		4,955		0.4
Spain	4,777		0.4		4,189		0.3
Sweden	4,519		0.3		4,371		0.4
Switzerland	592		—		5,558		0.5
United Kingdom	120,398		9.2		126,305		10.4
USA	866,465		65.8		773,717		64.0
Total	$	1,315,630	100.0	%	$	1,209,063	100.0	%

Jocassee’s subscription facility with Bank of America N.A., which is non-recourse to the Company, had approximately $177.7 million and $174.3 million outstanding as of December 31, 2023 and December 31, 2022, respectively. Jocassee’s credit facility with Citibank, N.A., which is non-recourse to the Company, had approximately $398.2 million and $357.9 million outstanding as of December 31, 2023 and December 31, 2022, respectively. Jocassee’s term debt securitization, which is non-recourse to the Company, had approximately $323.5 million and $323.3 million outstanding as of December 31, 2023 and December 31, 2022, respectively.

The Company may sell portions of its investments via assignment to Jocassee. Since inception, as of December 31, 2023, and December 31, 2022, the Company had sold $1,036.1 million and $875.9 million, respectively, of its investments to Jocassee. For the year ended December 31, 2023, the Company realized a gain on the sales of its investments to Jocassee of $0.1 million. For the year ended December 31, 2022, the Company realized a loss on the sales of its investments to Jocassee of $5.6 million. As of December 31, 2023 and December 31, 2022, the Company had nil and $18.2 million, respectively, in unsettled receivables due from Jocassee that were included in “Receivable from unsettled transactions” in the accompanying Consolidated Balance Sheets. The sale of the investments met the criteria set forth in ASC 860, Transfers and Servicing for treatment as a sale and satisfies the following conditions:

The Company has determined that Jocassee is an investment company under ASC, Topic 946, Financial Services - Investment Companies, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Jocassee as it is not a substantially wholly owned investment company subsidiary. In addition, Jocassee is not an operating company and the Company does not control Jocassee due to the allocation of voting rights among Jocassee members.

As of December 31, 2023 and December 31, 2022, Jocassee had the following contributed capital and unfunded commitments from its members:



($ in thousands)	As of December 31, 2023		As of December 31, 2022
Total contributed capital by Barings BDC, Inc.	$	35,000	$	35,000
Total contributed capital by all members	$	385,000	$	385,000
Total unfunded commitments by Barings BDC, Inc.	$	65,000	$	65,000
Total unfunded commitments by all members	$	215,000	$	215,000

On April 28, 2020, Thompson Rivers LLC (“Thompson Rivers”) was formed as a Delaware limited liability company. On May 13, 2020, the Company entered into a limited liability company agreement governing Thompson Rivers. Under Thompson Rivers’ current operating agreement, as amended to date, the Company has a capital commitment of $75.0 million of equity capital to Thompson Rivers, all of which has been funded as of December 31, 2023. As of December 31, 2023, aggregate commitments to Thompson Rivers by the Company and the other members under the current operating agreement total $450.0 million, all of which has been funded.

For the years ended December 31, 2023 and 2022, Thompson Rivers declared $111.0 million and $261.9 million in dividends, respectively, of which nil and $9.1 million, respectively, was recognized as dividend income in the Company’s Consolidated Statements of Operations. In addition, for the years ended December 31, 2023 and 2022, the Company recognized $17.7 million and $32.8 million, respectively, of the dividends as a return of capital.

As of December 31, 2023, Thompson Rivers had $366.7 million in Ginnie Mae early buyout loans and $7.1 million in cash. As of December 31, 2022, Thompson Rivers had $890.9 million in Ginnie Mae early buyout loans and $65.1 million in cash. As of December 31, 2023, Thompson Rivers had 2,305 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.0%. As of December 31, 2022, Thompson Rivers had 5,414 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.0%.


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
December 31, 2023:
Federal Housing Administration (“FHA”) loans	$	360,847	93	%	$	342,240	93	%
Veterans Affairs (“VA”) loans	25,810		7	%	24,491		7	%

	$	386,657	100	%	$	366,731	100	%
December 31, 2022:
Federal Housing Administration (“FHA”) loans	$	864,625	91	%	$	811,358	91	%
Veterans Affairs (“VA”) loans	84,654		9	%	79,553		9	%

	$	949,279	100	%	$	890,911	100	%

Thompson Rivers’ repurchase agreement with JPMorgan Chase Bank, which is non-recourse to the Company, had approximately $83.5 million and $224.2 million outstanding as of December 31, 2023 and December 31, 2022, respectively. Thompson Rivers’ repurchase agreement with Bank of America N.A., which is non-recourse to the Company, had approximately $170.8 million and $428.0 million outstanding as of December 31, 2023 and December 31, 2022, respectively. Thompson Rivers’ repurchase agreement with Barclays Bank, which is non-recourse to the Company, had approximately $50.0 million and $184.2 million outstanding as of December 31, 2023 and December 31, 2022, respectively.

The Company has determined that Thompson Rivers is an investment company under ASC Topic 946, Financial Services - Investment Companies, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Thompson Rivers as it is not a substantially wholly owned investment company subsidiary. In addition, Thompson Rivers is not an operating company and the Company does not control Thompson Rivers due to the allocation of voting rights among Thompson Rivers members.

As of December 31, 2023 and December 31, 2022, Thompson Rivers had the following contributed capital and unfunded commitments from its members:



($ in thousands)	As of December 31, 2023		As of December 31, 2022
Total contributed capital by Barings BDC, Inc. (1)	$	79,411	$	79,411
Total contributed capital by all members (2)	$	482,083	$	482,083

Total unfunded commitments by Barings BDC, Inc.	$	—	$	—
Total unfunded commitments by all members	$	—	$	—

On January 4, 2021, Waccamaw River LLC (“Waccamaw River”) was formed as a Delaware limited liability company. On February 8, 2021, the Company entered into a limited liability company agreement governing Waccamaw River. Under Waccamaw River’s current operating agreement, as amended to date, the Company has a capital commitment of $25.0 million of equity capital to Waccamaw River, all of which has been funded (including approximately $5.3 million of recallable return of capital) as of December 31, 2023. As of December 31, 2023, aggregate commitments to Waccamaw River by the Company and the other members under the current operating agreement total $125.0 million, all of which has been funded (including $14.0 million of recallable return of capital).

As of December 31, 2023, Waccamaw River had $182.3 million in unsecured consumer loans and $6.6 million in cash. As of December 31, 2022, Waccamaw River had $200.5 million in unsecured consumer loans and $8.0 million in cash. As of December 31, 2023, Waccamaw River had 21,435 outstanding loans with an average loan size of $10,338, remaining average life to maturity of 40.0 months and weighted average interest rate of 12.7%. As of December 31, 2022, Waccamaw River had 18,335 outstanding loans with an average loan size of $11,542, remaining average life to maturity of 44.0 months and weighted average interest rate of 12.0%.

Waccamaw River’s secured loan borrowing with JPMorgan Chase Bank, N.A., which is non-recourse to the Company, had approximately $71.0 million and $72.3 million outstanding as of December 31, 2023 and December 31, 2022, respectively. Waccamaw River’s secured loan borrowing with Barclays Bank PLC, which is non-recourse to the Company, had approximately $51.3 million and $44.8 million outstanding as of December 31, 2023 and December 31, 2022, respectively.

The Company has determined that Waccamaw River is an investment company under ASC Topic 946, Financial Services - Investment Companies, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Waccamaw River as it is not a substantially wholly owned investment company subsidiary. In addition, Waccamaw River is not an operating company and the Company does not control Waccamaw River due to the allocation of voting rights among Waccamaw River members.



($ in thousands)	As of December 31, 2023		As of December 31, 2022
Total contributed capital by Barings BDC, Inc.	$	30,280	$	27,800
Total contributed capital by all members (1)	$	139,020	$	126,620

Total return of capital (recallable) by Barings BDC, Inc.	$	—	$	(5,280)
Total return of capital (recallable) by all members	$	—	$	(14,020)	(2)

Total unfunded commitments by Barings BDC, Inc.	$	—	$	2,480
Total unfunded commitments by all members	$	—	$	12,400	(3)

On February 25, 2022, as part of the Sierra Merger, the Company purchased its interest in Sierra Senior Loan Strategy JV I LLC (“Sierra JV”). The Company and MassMutual Ascend Life Insurance Company (“MMALIC”), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company, are the members of Sierra JV, a joint venture formed as a Delaware limited liability company and commenced operations on July 15, 2015. Sierra JV’s investment objective is to generate current income and capital appreciation by investing primarily in the debt of privately-held middle market companies with a focus on senior secured first lien term loans. The members of Sierra JV make capital contributions as investments by Sierra JV are completed, and all portfolio and other material decisions regarding Sierra JV must be submitted to Sierra JV’s board of managers, which is comprised of four members, two of whom are selected by the Company and the other two are selected by MMALIC. Approval of Sierra JV’s board of managers requires the unanimous approval of a quorum of the board of managers, with a quorum consisting of equal representation of members appointed by each of the Company and MMALIC.

For the years ended December 31, 2023 and 2022, Sierra JV declared $8.4 million and $45.2 million in dividends, respectively, of which $5.7 million and $4.5 million, respectively, was recognized as dividend income in the Company’s Consolidated Statements of Operations. In addition, for the years ended December 31, 2023 and December 31, 2022, the Company recognized $1.8 million and $35.7 million, respectively, of the dividends as a return of capital.

The Company has determined that Sierra JV is an investment company under ASC Topic 946, Financial Services - Investment Companies, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Sierra JV as it is not a substantially wholly owned investment company subsidiary. In addition, Sierra JV is not an operating company and the Company does not control Sierra JV due to the allocation of voting rights among Sierra JV members.

The total value of Sierra JV’s investment portfolio was $79.6 million as of December 31, 2023, as compared to $110.0 million, as of December 31, 2022. As of December 31, 2023, Sierra JV’s investments had an aggregate cost of $85.3 million, as compared to $125.2 million as of December 31, 2022. As of December 31, 2023 and December 31, 2022, the weighted average yield on the principal amount of Sierra JV’s outstanding debt investments was approximately 10.1% and 9.2%, respectively. As of December 31, 2023 and December 31, 2022, the Sierra JV investment portfolio consisted of the following investments:


($ in thousands)	December 31, 2023				December 31, 2022

Automotive	$	2,463	3.1	%	$	2,283	2.1	%
Banking, Finance, Insurance and Real Estate	254		0.3		1,414		1.3
Beverage, Food and Tobacco	3,172		4.0		3,181		2.9
Capital Equipment	5,271		6.6		9,208		8.4
Chemicals, Plastics, and Rubber	2,942		3.7		2,772		2.5
Construction and Building	1,867		2.4		1,887		1.7
Consumer goods: Durable	1,042		1.3		1,272		1.1

Containers, Packaging and Glass	—		—		1,812		1.6



Environmental Industries	3,487		4.4		7,797		7.1

Healthcare and Pharmaceuticals	12,880		16.2		13,614		12.4
High Tech Industries	14,661		18.4		13,713		12.5


Media: Advertising, Printing and Publishing	—		—		10,032		9.1

Media: Diversified and Production	—		—		5,498		5.0

Retail	6,255		7.9		5,489		5.0
Services: Business	6,798		8.5		10,876		9.9
Services: Consumer	8,525		10.7		8,265		7.5


Transportation: Cargo	6,296		7.9		6,221		5.6
Transportation: Consumer	3,686		4.6		4,713		4.3



Total	$	79,599	100.0	%	$	110,047	100.0	%

On July 8, 2021, the Company made an equity investment in Eclipse Business Capital Holdings LLC (“Eclipse”) of $89.8 million, a second lien senior secured loan of $4.5 million and unfunded revolver of $13.6 million, alongside other related party affiliates. On August 12, 2022, the Company increased the unfunded revolver to $22.7 million. As of December 31, 2023 and December 31, 2022, $5.5 million and $5.3 million, respectively, of the revolver was funded. Eclipse conducts its business through Eclipse Business Capital LLC. Eclipse is one of the country’s leading independent asset-based lending (“ABL”) platforms that provides financing to middle-market borrowers in the U.S. and Canada. Eclipse provides revolving lines of credit and term loans ranging in size from $10 – $125 million that are secured by collateral such as accounts receivable, inventory, equipment, or real estate. Eclipse lends to both privately-owned and publicly-traded companies across a range of industries, including manufacturing, retail, automotive, oil & gas, services, distribution, and consumer products. The addition of Eclipse to the portfolio allows the Company to participate in an asset class and commercial finance operations that offer differentiated income returns as compared to directly originated loans. Eclipse is led by a seasoned team of ABL experts.

The Company has determined that Eclipse is not an investment company under ASC Topic 946, Financial Services - Investment Companies. Under ASC 810-10-15-12(d), an investment company generally does not consolidate an investee that is not an investment company other than a controlled operating company whose business consists of providing services to the company. Thus, the Company is not required to consolidate Eclipse because it does not provide services to the Company. Instead the Company accounts for its equity investment in Eclipse in accordance with ASC 946-320, presented as a single investment measured at fair value.

On February 1, 2023, the Company made an equity investment in Rocade Holdings LLC (“Rocade”) of $45.0 million, alongside other related party affiliates and made additional investments thereafter during the fiscal year ended December 31, 2023 of $22.5 million. The total equity invested in Rocade as of December 31, 2023 was $67.5 million and the Company had $17.5 million of unfunded preferred equity commitments. Rocade conducts its business through Rocade LLC and operates as Rocade Capital. Rocade is one of the country’s leading litigation finance platforms that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation. Rocade typically provides loans to law firms that are secured by the borrowing firm’s interests in award settlements, including contingency fees expected to be earned from successful litigation. The loans generally bear floating rate PIK interest with an overall expected annualized return between 10% and 25% and collect debt service upon receipt of settlement awards and/or contingency fees. The addition of Rocade to the portfolio allows the Company to participate in an uncorrelated asset class that offer differentiated income returns as compared to directly originated loans. Rocade is led by a seasoned team of litigation finance experts.

The Company has determined that Rocade is not an investment company under ASC Topic 946, Financial Services - Investment Companies. Under ASC 810-10-15-12(d), an investment company generally does not consolidate an investee that is not an investment company other than a controlled operating company whose business consists of providing services to the company. Thus, the Company is not required to consolidate Rocade because it does not provide services to the Company. Instead the Company accounts for its equity investment in Rocade in accordance with ASC 946-320, presented as a single investment measured at fair value.