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Portfolio Company Investments (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Investments Type With Corresponding Percentage of Total Portfolio Investments

Investments by type with corresponding percentage of total portfolio investments consisted of the following:


	Fair Value								Cost
	September 30,				December 31,				September 30,				December 31,
	2022				2021				2022				2021
First Lien Debt(1)	$	488,334	57.0	%	$	354,922	49.4	%	$	487,999	59.0	%	$	353,306	56.8	%
Second Lien Debt		177,222	20.7			158,815	22.1			200,028	24.2			168,573	27.1
Subordinated Debt		81,759	9.5			36,064	5.0			80,477	9.7			35,995	5.8
Equity		106,951	12.5			166,119	23.1			55,563	6.7			60,589	9.8
Warrants		2,648	0.3			3,204	0.4			3,323	0.4			3,323	0.5
Total	$	856,914	100.0	%	$	719,124	100.0	%	$	827,390	100.0	%	$	621,786	100.0	%

(1)

Includes unitranche investments, which account for 43.1% and 44.4% of our portfolio on a fair value and cost basis as of September 30, 2022, respectively. Includes unitranche investments, which account for 40.2% and 46.3% of our portfolio on a fair value and cost basis as of December 31, 2021, respectively.

All investments made by the Company as of September 30, 2022 and December 31, 2021 were made in portfolio companies headquartered in the United States. The following table shows portfolio composition by geographic region at fair value and cost and as a percentage of total investments. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.


	Fair Value								Cost
	September 30,				December 31,				September 30,				December 31,
	2022				2021				2022				2021
Midwest	$	185,994	21.7	%	$	157,222	21.9	%	$	140,728	17.0	%	$	89,865	14.5	%
Southeast		250,549	29.2			219,988	30.6			252,173	30.5			197,380	31.7
Northeast		123,890	14.5			126,569	17.6			128,203	15.5			127,809	20.6
West		154,927	18.1			105,918	14.7			160,958	19.4			100,098	16.1
Southwest		141,554	16.5			109,427	15.2			145,328	17.6			106,634	17.1
Total	$	856,914	100.0	%	$	719,124	100.0	%	$	827,390	100.0	%	$	621,786	100.0	%

Schedule of Portfolio Composition by Type And by Geographic Region at Fair Value

The following table shows portfolio composition by type and by geographic region at fair value as a percentage of net assets.


By Type							By Geographic Region
	September 30,			December 31,				September 30,			December 31,
	2022			2021				2022			2021
First Lien Debt		102.9	%		72.8	%	Midwest		39.2	%		32.2	%
Second Lien Debt		37.4			32.6		Southeast		52.8			45.1
Subordinated Debt		17.2			7.4		Northeast		26.1			26.0
Equity		22.5			34.0		West		32.7			21.7
Warrants		0.6			0.6		Southwest		29.8			22.4
Total		180.6	%		147.4	%	Total		180.6	%		147.4	%

Schedule of Debt Investment on Non-Accrual Status

As of September 30, 2022, the Company had debt investments in three portfolio companies on non-accrual status. As of December 31, 2021, the Company had a debt investment in one portfolio company on non-accrual status.


	September 30, 2022				December 31, 2021
	Fair				Fair
Portfolio Company	Value		Cost		Value			Cost
EBL, LLC (EbLens)	$	2,427	$	9,333	$	—	(1)	$	—	(1)
US GreenFiber, LLC		—		5,223		—	(2)		5,223	(2)
K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.)		2,169		2,368		—	(1)		—	(1)
Total	$	4,596	$	16,924	$	—		$	5,223


(1)	Portfolio company debt investment was not on non-accrual status as of December 31, 2021.
(2)	Portfolio company was on PIK-only non-accrual status at December 31, 2021, meaning the Company has ceased recognizing PIK interest income on the investment.

Schedule of Consolidated Schedule of Investments in and Advances to Affiliates

The table below represents the fair value of control and affiliate investments as of December 31, 2021 and any additions and reductions made to such investments during the nine months ended September 30, 2022, the ending fair value as of September 30, 2022, and the total investment income earned on such investments during the period.


												Nine Months Ended September 30, 2022
Portfolio Company (1)	September 30, 2022 Principal Amount - Debt Investments		December 31, 2021 Fair Value		Gross Additions (2)		Gross Reductions (3)			September 30, 2022 Fair Value		Net Realized Gains (Losses) (4)			Net Change in Unrealized Appreciation (Depreciation)			Interest Income		Payment-in-kind Interest Income		Dividend Income		Fee Income
Control Investments
Hilco Plastics Holdings, LLC (dba Hilco Technologies)	$	—	$	—	$	—	$	—		$	—	$	—		$	—		$	—	$	—	$	—	$	—
Mesa Line Services, LLC		—		2,151		134		(2,285	)		—		135			(2,151	)		—		—		—		—
US GreenFiber, LLC		5,226		—		—		—			—		—			—			—		—		—		—
Total Control Investments	$	5,226	$	2,151	$	134	$	(2,285	)	$	—	$	135		$	(2,151	)	$	—	$	—	$	—	$	—
Affiliate Investments
Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC)	$	9,602	$	22,405	$	12,802	$	(13,587	)	$	21,620	$	—			(785	)	$	728	$	—	$	—	$	—
FAR Research Inc.		—		28		—		—			28		—			—			—		—		—		—
Medsurant Holdings, LLC		—		3,662		—		(1,120	)		2,542		—			(1,120	)		—		—		—		—
Mirage Trailers LLC		—		10,675		355		(11,030	)		—		324			(1,694	)		248		29		—		132
Pfanstiehl, Inc.		10,000		57,639		34,332		(40,175	)		51,796		24,330			(15,625	)		166		—		—		150
Pinnergy, Ltd. (5)		—		21,178		15,300		(36,478	)		—		15,300			(18,178	)		—		—		656		—
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.)		15,000		18,359		2,627		(5,058	)		15,928		(114	)		(4,934	)		1,291		—		—		170
Steward Holding LLC (dba Steward Advanced Materials)		—		3,338		323		—			3,661		—			323			—		1		69		—
Total Affiliate Investments	$	34,602	$	137,284	$	65,739	$	(107,448	)	$	95,575	$	39,840		$	(42,013	)	$	2,433	$	30	$	725	$	452


(1)	The investment type, industry, ownership detail for equity investments, and interest rate (if the investment is income producing) is disclosed in the consolidated schedule of investments.
(2)	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest and PIK dividend income, accretion of OID and origination fees, and net unrealized appreciation recognized during the period. Gross additions also include transfers of portfolio companies into the control or affiliate classification during the period, as applicable.
(3)	Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and net unrealized (depreciation) recognized during the period. Gross reductions also include transfers of portfolio companies out of the control or affiliate classification during the period, as applicable.
(4)	The schedule does not reflect realized gains or losses on escrow receivables for investments which were previously exited and were not held during the period presented. Gains and losses on escrow receivables are classified in the consolidated statements of operations according to the control classification at the time the investment was exited. Escrow receivables are presented in prepaid expenses and other assets on the consolidated statements of assets and liabilities.
(5)	Portfolio company was transferred to Non-control/Non-affiliate investments from Affiliate investments during the nine months ended September 30, 2022.

The table below represents the fair value of control and affiliate investments as of December 31, 2020 and any additions and reductions made to such investments during the year ended December 31, 2021, including the total investment income earned on such investments during the period.


												Year Ended Ended December 31, 2021
Portfolio Company (1)	December 31, 2021 Principal Amount - Debt Investments		December 31, 2020 Fair Value		Gross Additions (2)		Gross Reductions (3)			December 31, 2021 Fair Value		Net Realized Gains (Losses) (4)			Net Change in Unrealized Appreciation (Depreciation)			Interest Income		Payment-in-kind Interest Income		Dividend Income		Fee Income
Control Investments
Hilco Plastics Holdings, LLC (dba Hilco Technologies)(6)	$	—	$	—	$	1,577	$	(1,577	)	$	—	$	(881	)	$	—		$	308	$	—	$	568	$	—
Mesa Line Services, LLC (6)		—		—		32,708		(30,557	)		2,151		20,445			2,150			951		903		—		1,472
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.)(5)		—		7,391		1,986		(9,377	)		—		957			1,028			90		—		—		400
US GreenFiber, LLC		5,226		20,862		5,214		(26,076	)		—		—			(3,144	)		2,386		1,214		—		—
Total Control Investments	$	5,226	$	28,253	$	41,485	$	(67,587	)	$	2,151	$	20,521		$	34		$	3,735	$	2,117	$	568	$	1,872
Affiliate Investments
Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC)	$	9,602	$	-	$	22,405	$	—		$	22,405	$	—		$	—		$	—	$	—	$	—	$	—
FAR Research Inc.		—		28		—		—			28		—			—			—		—		—		—
Fiber Materials, Inc.		—		41		94		(135	)		-		94			(42	)		—		—		—		—
Medsurant Holdings, LLC		—		10,960		733		(8,031	)		3,662		—			687			331		—		—		91
Mirage Trailers LLC		6,705		6,494		4,225		(44	)		10,675		—			3,871			761		338		110		—
Pfanstiehl, Inc.		—		33,505		24,134		—			57,639		—			24,135			—		—		1,062		—
Pinnergy, Ltd.		—		20,589		589		—			21,178		—			589			—		—		—		—
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.)(5)		13,000		—		18,452		(93	)		18,359		—			1,626			1,142		—		—		294
Steward Holding LLC (dba Steward Advanced Materials)		—		9,777		1,373		(7,812	)		3,338		—			1,341			461		30		—		—
Total Affiliate Investments	$	29,307	$	81,394	$	72,005	$	(16,115	)	$	137,284	$	94		$	32,207		$	2,695	$	368	$	1,172	$	385


(1)	The investment type, industry, ownership detail for equity investments, and if the investment is income producing is disclosed in the consolidated schedule of investments.
(2)	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest and PIK dividend income, accretion of OID and origination fees, and net unrealized appreciation recognized during the period. Gross additions also include transfers of portfolio companies into the control or affiliate classification during the period, as applicable.
(3)	Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and net unrealized (depreciation) recognized during the period. Gross reductions also include transfers of portfolio companies out of the control or affiliate classification during the period, as applicable.
(4)	The schedule does not reflect realized gains or losses on escrow receivables for investments which were previously exited and were not held during the period presented. Gains and losses on escrow receivables are classified in the consolidated statements of operations according to the control classification at the time the investment was exited. Escrow receivables are presented in prepaid expenses and other assets on the consolidated statements of assets and liabilities.
(5)	Portfolio company was transferred to Affiliate investments from Control investments during the year ended December 31, 2021.
(6)	Portfolio company was transferred to Control investments from Non-control/Non-affiliate investments during the year ended December 31, 2021.