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Portfolio Company Investments | 3 Months Ended
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Mar. 31, 2024
Schedule of Investments [Abstract] |
Portfolio Company Investments | Note 3. Portfolio Company Investments The Company’s portfolio investments principally consist of secured and unsecured debt, equity warrants and direct equity investments primarily in privately held companies. The debt investments may or may not be secured by either a first or second lien on the assets of the portfolio company. The debt investments generally bear interest at fixed rates or variable rates, and generally mature between five and seven years from the original investment. In connection with a debt investment, the Company also may receive nominally priced equity warrants and/or make a direct equity investment in the portfolio company. The Company’s warrants or equity investments may be investments in a holding company related to the portfolio company. In addition, the Company makes equity investments in portfolio companies organized as LLCs or other forms of pass-through entities through Taxable Subsidiaries. In both situations, the investment is generally reported under the name of the operating company on the consolidated schedules of investments. As of March 31, 2024, the Company had active investments in 87 portfolio companies and residual investments in four portfolio companies that have sold their underlying operations. The aggregate fair value of the total portfolio was $1,048,071 and the weighted average yield on the Company’s debt investments was 14.0% as of such date. As of March 31, 2024, the Company held equity investments in 81.3% of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 3.5%. As of December 31, 2023, the Company had active investments in 81 portfolio companies and residual investments in one portfolio company that has sold its underlying operations. The aggregate fair value of the total portfolio was $957,906 and the weighted average yield on the Company’s debt investments was 14.2% as of such date. As of December 31, 2023, the Company held equity investments in 79.3% of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 3.0%. The weighted average yield of the Company’s debt investments is not the same as a return on investment for its stockholders but, rather, relates to a portion of the Company’s investment portfolio and is calculated before the payment of all of the Company’s and its subsidiaries’ fees and expenses. The weighted average yields were computed using the effective interest rates for debt investments at cost as of March 31, 2024 and December 31, 2023, including accretion of OID and debt investment origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing. Purchases of debt and equity investments for the three months ended March 31, 2024 and 2023 totaled $145,861 and $51,521, respectively. Proceeds from sales and repayments, including principal, return of capital distributions and realized gains, of portfolio investments for the three months ended March 31, 2024 and 2023 totaled $60,247 and $15,918, respectively. Investments by type with corresponding percentage of total portfolio investments consisted of the following:
|  | Fair Value |  |  |  | Cost |  |
|  | March 31, |  |  |  | December 31, |  |  |  | March 31, |  |  |  | December 31, |  |
|  | 2024 |  |  |  | 2023 |  |  |  | 2024 |  |  |  | 2023 |  |
First Lien Debt(1) |  | $ | 633,290 |  |  |  | 60.3 | % |  |  | $ | 578,140 |  |  |  | 60.3 | % |  |  | $ | 631,718 |  |  |  | 61.6 | % |  |  | $ | 577,684 |  |  |  | 61.6 | % |
Second Lien Debt |  |  | 134,749 |  |  |  | 12.9 |  |  |  |  | 119,561 |  |  |  | 12.5 |  |  |  |  | 163,541 |  |  |  | 15.9 |  |  |  |  | 148,806 |  |  |  | 15.9 |  |
Subordinated Debt |  |  | 148,387 |  |  |  | 14.2 |  |  |  |  | 135,173 |  |  |  | 14.1 |  |  |  |  | 148,736 |  |  |  | 14.5 |  |  |  |  | 135,447 |  |  |  | 14.5 |  |
Equity |  |  | 125,694 |  |  |  | 12.0 |  |  |  |  | 120,264 |  |  |  | 12.6 |  |  |  |  | 78,630 |  |  |  | 7.7 |  |  |  |  | 71,740 |  |  |  | 7.7 |  |
Warrants |  |  | 5,951 |  |  |  | 0.6 |  |  |  |  | 4,768 |  |  |  | 0.5 |  |  |  |  | 2,951 |  |  |  | 0.3 |  |  |  |  | 2,952 |  |  |  | 0.3 |  |
Total |  | $ | 1,048,071 |  |  |  | 100.0 | % |  |  | $ | 957,906 |  |  |  | 100.0 | % |  |  | $ | 1,025,576 |  |  |  | 100.0 | % |  |  | $ | 936,629 |  |  |  | 100.0 | % |
(1) | Includes unitranche investments, which account for 37.3% and 38.0% of the Company's portfolio on a fair value and cost basis as of March 31, 2024, respectively. Includes unitranche investments, which account for 37.6% and 38.5% of the Company's portfolio on a fair value and cost basis as of December 31, 2023, respectively.
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 |  |
|  | March 31, |  |  |  | December 31, |  |  |  | March 31, |  |  |  | December 31, |  |
|  | 2024 |  |  |  | 2023 |  |  |  | 2024 |  |  |  | 2023 |  |
United States |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Midwest |  | $ | 109,634 |  |  |  | 10.5 | % |  |  | $ | 112,607 |  |  |  | 11.8 | % |  |  | $ | 75,357 |  |  |  | 7.3 | % |  |  | $ | 75,436 |  |  |  | 8.1 | % |
Southeast |  |  | 320,868 |  |  |  | 30.6 |  |  |  |  | 292,408 |  |  |  | 30.6 |  |  |  |  | 315,567 |  |  |  | 30.8 |  |  |  |  | 286,329 |  |  |  | 30.5 |  |
Northeast |  |  | 198,218 |  |  |  | 18.9 |  |  |  |  | 181,412 |  |  |  | 18.9 |  |  |  |  | 190,630 |  |  |  | 18.6 |  |  |  |  | 176,389 |  |  |  | 18.8 |  |
West |  |  | 191,968 |  |  |  | 18.3 |  |  |  |  | 172,705 |  |  |  | 18.0 |  |  |  |  | 210,156 |  |  |  | 20.5 |  |  |  |  | 191,545 |  |  |  | 20.5 |  |
Southwest |  |  | 214,883 |  |  |  | 20.5 |  |  |  |  | 186,274 |  |  |  | 19.4 |  |  |  |  | 221,396 |  |  |  | 21.6 |  |  |  |  | 194,466 |  |  |  | 20.8 |  |
Canada |  |  | 12,500 |  |  |  | 1.2 |  |  |  |  | 12,500 |  |  |  | 1.3 |  |  |  |  | 12,470 |  |  |  | 1.2 |  |  |  |  | 12,464 |  |  |  | 1.3 |  |
Total |  | $ | 1,048,071 |  |  |  | 100.0 | % |  |  | $ | 957,906 |  |  |  | 100.0 | % |  |  | $ | 1,025,576 |  |  |  | 100.0 | % |  |  | $ | 936,629 |  |  |  | 100.0 | % |
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 |
|  | March 31, |  |  |  | December 31, |  |  |  |  |  | March 31, |  |  |  | December 31, |
|  | 2024 |  |  |  | 2023 |  |  |  |  |  | 2024 |  |  |  | 2023 |
First Lien Debt |  |  | 104.1 | % |  |  |  | 98.1 | % |  |  | United States |  |  |  |  |  |  |
Second Lien Debt |  |  | 22.2 |  |  |  |  | 20.3 |  |  |  | Midwest |  |  | 18.0 | % |  |  |  | 19.1 | %
Subordinated Debt |  |  | 24.4 |  |  |  |  | 22.9 |  |  |  | Southeast |  |  | 52.8 |  |  |  |  | 49.6 |
Equity |  |  | 20.7 |  |  |  |  | 20.4 |  |  |  | Northeast |  |  | 32.6 |  |  |  |  | 30.8 |
Warrants |  |  | 1.0 |  |  |  |  | 0.8 |  |  |  | West |  |  | 31.6 |  |  |  |  | 29.3 |
Total |  |  | 172.4 | % |  |  |  | 162.5 | % |  |  | Southwest |  |  | 35.3 |  |  |  |  | 31.6 |
|  |  |  |  |  |  |  |  |  | Canada |  |  | 2.1 |  |  |  |  | 2.1 |
|  |  |  |  |  |  |  |  |  | Total |  |  | 172.4 | % |  |  |  | 162.5 | %
As of March 31, 2024 and December 31, 2023, the Company had no portfolio company investments that represented more than 10% of the total investment portfolio on a fair value or cost basis. As of March 31, 2024 and December 31, 2023, the Company had no investments that exceeded 5% of total assets. As of March 31, 2024 and December 31, 2023, the Company had debt investments in three portfolio companies on non-accrual status.
|  | March 31, 2024 |  |  | December 31, 2023 |  |
|  | Fair |  |  |  |  |  | Fair |  |  |  |  |
Portfolio Company |  | Value |  |  | Cost |  |  | Value |  |  | Cost |  |
US GreenFiber, LLC |  | $ | — |  |  | $ | 5,223 |  |  | $ | — |  |  | $ | 5,223 |  |
Suited Connector LLC |  |  | 4,866 |  |  |  | 15,933 |  |  |  | 4,324 |  |  |  | 15,933 |  |
Virtex Enterprises, LP |  |  | 5,217 |  |  |  | 10,906 |  |  |  | 5,340 |  |  |  | 10,906 |  |
Total |  | $ | 10,083 |  |  | $ | 32,062 |  |  | $ | 9,664 |  |  | $ | 32,062 |  |
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, 2023 and any additions and reductions made to such investments during the three months ended March 31, 2024, the ending fair value as of March 31, 2024, and the total investment income earned on such investments during the period.
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Three Months Ended March 31, 2024 |
Portfolio Company (1) |  |  | March 31, 2024 Principal Amount - Debt Investments |  |  | December 31, 2023 Fair Value |  |  | Gross Additions (2) |  |  | Gross Reductions (3) |  |  | March 31, 2024 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US GreenFiber, LLC |  |  | $ | 5,226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total Control Investments |  |  | $ | 5,226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Affiliate Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) |  |  | $ | 9,602 |  |  | $ | 24,590 |  |  | $ | 265 |  |  | $ | — |  |  | $ | 24,855 |  |  | $ | — |  |  | $ | 266 |  |  | $ | 267 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Medsurant Holdings, LLC |  |  |  | — |  |  |  | 5,930 |  |  |  | 1,863 |  |  |  | (329 | ) |  |  | 7,464 |  |  |  | — |  |  |  | 1,863 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Pfanstiehl, Inc. |  |  |  | — |  |  |  | 33,321 |  |  |  | — |  |  |  | (3,608 | ) |  |  | 29,713 |  |  |  | — |  |  |  | (3,608 | ) |  |  | — |  |  |  | — |  |  |  | 348 |  |  |  | — |
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) |  |  |  | 15,000 |  |  |  | 15,321 |  |  |  | 5 |  |  |  | (1,447 | ) |  |  | 13,879 |  |  |  | — |  |  |  | (1,448 | ) |  |  | 602 |  |  |  | — |  |  |  | — |  |  |  | 5 |
Steward Holding LLC (dba Steward Advanced Materials) |  |  |  | — |  |  |  | 4,714 |  |  |  | — |  |  |  | (309 | ) |  |  | 4,405 |  |  |  | — |  |  |  | (309 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Affiliate Investments |  |  | $ | 24,602 |  |  | $ | 83,876 |  |  | $ | 2,133 |  |  | $ | (5,693 | ) |  | $ | 80,316 |  |  | $ | — |  |  | $ | (3,236 | ) |  | $ | 869 |  |  | $ | — |  |  | $ | 348 |  |  | $ | 5 |
(1) | The investment type, industry, ownership detail for equity investments, interest rate and maturity date for debt 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.
The table below represents the fair value of control and affiliate investments as of December 31, 2022 and any additions and reductions made to such investments during the year ended December 31, 2023, including the total investment income earned on such investments during the period.
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year Ended December 31, 2023 |
Portfolio Company (1) |  |  | December 31, 2023 Principal Amount - Debt Investments |  |  | December 31, 2022 Fair Value |  |  | Gross Additions (2) |  |  | Gross Reductions (3) |  |  | December 31, 2023 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EBL, LLC (EbLens) |  |  | $ | — |  |  | $ | — |  |  | $ | 11,458 |  |  | $ | (11,458 | ) |  | $ | — |  |  | $ | (11,458 | ) |  | $ | 11,083 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
US GreenFiber, LLC |  |  |  | 5,226 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Control Investments |  |  | $ | 5,226 |  |  | $ | — |  |  | $ | 11,458 |  |  | $ | (11,458 | ) |  | $ | — |  |  | $ | (11,458 | ) |  | $ | 11,083 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Affiliate Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) |  |  | $ | 9,602 |  |  | $ | 23,168 |  |  | $ | 1,422 |  |  | $ | — |  |  | $ | 24,590 |  |  | $ | — |  |  | $ | 1,422 |  |  | $ | 974 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Medsurant Holdings, LLC |  |  |  | — |  |  |  | 2,540 |  |  |  | 3,463 |  |  |  | (73 | ) |  |  | 5,930 |  |  |  | — |  |  |  | 3,463 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Pfanstiehl, Inc. |  |  |  | — |  |  |  | 51,992 |  |  |  | 46 |  |  |  | (18,717 | ) |  |  | 33,321 |  |  |  | — |  |  |  | (8,717 | ) |  |  | 673 |  |  |  | — |  |  |  | 347 |  |  |  | — |
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) |  |  |  | 15,000 |  |  |  | 19,118 |  |  |  | 2,208 |  |  |  | (6,005 | ) |  |  | 15,321 |  |  |  | — |  |  |  | (4,505 | ) |  |  | 2,379 |  |  |  | — |  |  |  | — |  |  |  | 65 |
Steward Holding LLC (dba Steward Advanced Materials) |  |  |  | — |  |  |  | 4,772 |  |  |  | — |  |  |  | (58 | ) |  |  | 4,714 |  |  |  | — |  |  |  | (58 | ) |  |  | — |  |  |  | — |  |  |  | 172 |  |  |  | — |
Total Affiliate Investments |  |  | $ | 24,602 |  |  | $ | 101,590 |  |  | $ | 7,139 |  |  | $ | (24,853 | ) |  | $ | 83,876 |  |  | $ | — |  |  | $ | (8,395 | ) |  | $ | 4,026 |  |  | $ | — |  |  | $ | 519 |  |  | $ | 65 |
(1) | The investment type, industry, ownership detail for equity investments, interest rate and maturity date for debt 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.

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org//321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org//325/tableOfContent + Details
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