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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Reconciliation Taxable Income and Total Distributions Declared to Common Stockholders

The following table is a reconciliation of net increase in net assets resulting from operations on the consolidated statements of operations to taxable income and to total distributions declared to common stockholders for the years ended December 31, 2022, 2021, and 2020.


		2022 (1)					2021					2020
Net increase in net assets resulting from operations		$		35,822			$		116,104			$		31,226
Net change in unrealized (appreciation) depreciation on investments				65,702					(41,496	)				6,578
Permanent book income and tax income differences				12,606					2,176					1,810
Temporary book income and tax income differences				(18,210	)				347					(5,091	)
Capital loss carry forward (utilization)				-					(25,024	)				3,385
Taxable income				95,920					52,107					37,908
Taxable income earned in prior year and carried forward for distribution in current year				33,839					20,832					15,432
Taxable Subsidiaries liquidating distributions				138					-					-
Deemed distribution of long term capital gains				(40,801	)				-					-
Taxable income earned in current period and carried forward for distribution in following year				(40,044	)				(33,839	)				(20,832	)
Total distributions to common stockholders		$		49,052			$		39,100			$		32,508


(1)	The Company’s taxable income for 2022 is an estimate and will not be finalized until the Company files its 2022 federal income tax returns in 2023. Therefore, the Company’s actual taxable income, and the Company’s actual taxable income that was earned in 2022 and carried forward for distribution in 2023, may be different than this estimate.

Summary of Tax Character of Distributions to Common Stockholders

For tax purposes, distributions paid to stockholders are reported as ordinary income, long term capital gains and return of capital, or a combination thereof. The tax character of distributions paid for the years ended December 31, 2022, 2021, and 2020 was as follows:


		2022 (1)					2021					2020
Ordinary income		$		29,135			$		39,100			$		32,508
Long term capital gains				19,917					-					-
Return of capital				-					-					-
Total distributions to common stockholders		$		49,052			$		39,100			$		32,508

Summary of Tax Basis Components of Distributable Earnings

As of December 31, 2022 and 2021, the tax basis components of distributable earnings were as follows:


		December 31,					December 31,
		2022 (1)					2021
Undistributed ordinary income		$		28,818			$		18,562
Undistributed long term capital gains				11,225					15,277
Unrealized appreciation (depreciation)				31,636					97,338
Temporary book/tax differences				12,967					(5,244	)
Capital loss carry forward				-					-
Total distributable earnings		$		84,646			$		125,933


(1)	The Company’s distributable earnings for 2022 is an estimate and will not be finally determined until the Company files its 2022 federal income tax returns in 2023. Therefore, the Company’s actual distributable earnings may be different than this estimate.

Summary of Federal Income Tax Purposes Cost of Investments

For federal income tax purposes, the cost of investments owned at December 31, 2022 and 2021 was approximately $811,962 and $623,527, respectively.


		December 31,					December 31,
		2022 (1)					2021
Tax-basis amortized cost of investments		$		811,962			$		623,527
Tax-basis gross unrealized appreciation on investments				87,884					110,481
Tax-basis gross unrealized depreciation on investments				(39,517	)				(14,884	)
Tax-basis net unrealized appreciation on investments				48,367					95,597
Fair value of investments		$		860,329			$		719,124


(1)	The Company’s tax-basis amortized cost of investments for 2022 is an estimate and will not be finally determined until 2023 when the Company receives the relevant tax forms from portfolio companies with equity investments. Therefore, the Company’s actual tax-basis amortized cost of investments may be different than this estimate.

Summary of Permanent Book to Tax Difference of Additional Paid in Capital and Total Distributable Earnings

The following permanent book-to-tax differences were reclassified on the consolidated statements of changes in net assets for the years ended December 31, 2022, 2021, and 2020.


		2022 (1)					2021					2020
Additional paid-in capital		$		(4,176	)		$		(2,175	)		$		(1,811	)
Total distributable earnings				4,176					2,175					1,811

(1)

The Company’s permanent book-to-tax reclassifications for  2022 are an estimate and will not be finalized until the Company files its  2022 federal income tax returns in 2023. Therefore, the Company’s actual permanent book-to-tax reclassifications may be different than this estimate. The Company adjusts such reclassifications in the following years when finalized, and such adjustments are reflected in the consolidated statements of changes in net assets and the consolidated statements of assets and liabilities.