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Joint Venture | 3 Months Ended
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Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Joint Venture | Joint Venture CION/EagleTree Partners, LLC On December 21, 2021, the Company formed CION/EagleTree, an off-balance sheet joint venture partnership with ET-BC Debt Opportunities, LP, or ET-BC, which is an affiliate of EagleTree Capital, LP, or EagleTree. EagleTree made a Firm-level investment with proprietary capital. CION/EagleTree jointly pursues debt and equity opportunities, as well as special situation, crossover, subordinated and other junior capital investments that leverages the Company's and EagleTree's combined sourcing and portfolio management capabilities. The Company contributed a portfolio of second lien loans and equity investments and ET-BC contributed proprietary Firm-level cash in exchange for 85% and 15%, respectively, of the senior secured notes, participating preferred equity, and common share interests of CION/EagleTree. The Company and ET-BC are not required to make any additional capital contributions to CION/EagleTree. The Company’s equity investment in CION/EagleTree is not redeemable. All portfolio and other material decisions regarding CION/EagleTree must be submitted to its board of managers, which is comprised of four members, two of whom were selected by the Company and the other two were selected by ET-BC. Further, all portfolio and other material decisions require the affirmative vote of at least one board member from the Company and one board member from ET-BC. The Company also serves as administrative agent to CION/EagleTree to provide servicing functions and other administrative services. In certain cases, these servicing functions and other administrative services may be performed by CIM. Amounts charged to CION/EagleTree by the Company for services performed by CIM are netted against amounts the Company is charged by CIM for administrative services. On December 21, 2021, CION/EagleTree issued senior secured notes of $61,629 to the Company and $10,875 to ET-BC, or the CION/EagleTree Notes. The CION/EagleTree Notes bear interest at a fixed rate of 14.0% per year and are secured by a first priority security interest in all of the assets of CION/EagleTree. On November 16, 2023, the Company purchased a portion of the CION/EagleTree Notes held by ET-BC. As a result, as of December 31, 2023, the Company held $59,598 and ET-BC held $4,904 of the CION/Eagletree Notes. The obligations of CION/EagleTree under the CION/EagleTree Notes are non-recourse to the Company. In accordance with ASU 2015-02, Consolidation, the Company determined that CION/EagleTree is not a variable interest entity, or VIE, as the Company is not the primary beneficiary and therefore does not consolidate CION/EagleTree. The Company's maximum exposure to losses from CION/EagleTree is limited to its investment in CION/EagleTree. The following table sets forth the individual investments in CION/EagleTree's portfolio as of March 31, 2024:
Portfolio Company |  | Interest(a) |  | Maturity |  | Industry |  | Principal/ Par Amount/ Units |  | Cost(b) |  | Fair Value
Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Berlitz Holdings, Inc.(f) |  | S+900, 1.00% SOFR Floor |  | 2/14/2025 |  | Services: Business |  | $ | 1,200 |  |  | $ | 1,167 |  |  | $ | 1,209 |
Community Tree Service, LLC(g) |  | S+1100, 1.00% SOFR Floor |  | 6/17/2027 |  | Construction & Building |  | 463 |  |  | 464 |  |  | 467 |
Total Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  | 1,631 |  |  | 1,676 |
Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
MedPlast Holdings, Inc.(e) |  | L+775, 0.00% LIBOR Floor |  | 7/2/2026 |  | Healthcare & Pharmaceuticals |  | 6,750 |  |  | 6,317 |  |  | 6,666 |
Total Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  | 6,317 |  |  | 6,666 |
Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  |  |  |
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan(c) |  | 11.84% Estimated Yield |  | 2/2/2026 |  | Diversified Financials |  | 10,000 |  |  | 9,592 |  |  | 9,751 |
Total Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  | 9,592 |  |  | 9,751 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
American Clinical Solutions LLC, Class A Membership Interests(d) |  |  |  | Healthcare & Pharmaceuticals |  | 6,030,384 Units |  | 5,200 |  |  | 3,196 |
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 1,469 Units |  | 486 |  |  | 634 |
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 255 Units |  | — |  |  | — |
Anthem Sports and Entertainment Inc., Common Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 4,746 Units |  | — |  |  | — |
BCP Great Lakes II - Series A Holdings LP, Partnership Interests (4.2% ownership) |  |  |  | Diversified Financials |  | N/A |  | 10,643 |  |  | 11,029 |
Carestream Health Holdings, Inc., Common Stock(d) |  |  |  | Healthcare & Pharmaceuticals |  | 614,367 Units |  | 21,759 |  |  | 17,970 |
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend |  |  |  | Healthcare & Pharmaceuticals |  | 2,727,273 Units |  | 8,300 |  |  | 10,800 |
CTS Ultimate Holdings LLC, Class A Preferred Units(d) |  |  |  | Construction & Building |  | 3,578,701 Units |  | 1,000 |  |  | 895 |
Dayton HoldCo, LLC, Membership Units(d) |  |  |  | Construction & Building |  | 37,264 Units |  | 8,400 |  |  | 14,043 |
HDNet Holdco LLC, Preferred Unit Call Option(d) |  |  |  | Media: Diversified & Production |  | 1 Unit |  | — |  |  | 360 |
Language Education Holdings GP LLC, Common Units(d) |  |  |  | Services: Business |  | 133,333 Units |  | — |  |  | — |
Language Education Holdings LP, Ordinary Common Units(d) |  |  |  | Services: Business |  | 133,333 Units |  | 300 |  |  | 612 |
Skillsoft Corp., Class A Common Stock(d) |  |  |  | High Tech Industries |  | 12,171 Units |  | 2,000 |  |  | 109 |
Spinal USA, Inc. / Precision Medical Inc., Warrants(d) |  |  |  | Healthcare & Pharmaceuticals |  | 20,667,324 Units |  | — |  |  | — |
Total Equity |  |  |  |  |  |  |  |  |  | 58,088 |  |  | 59,648 |
Short Term Investments(g) |  |  |  |  |  |  |  |  |  |  |  |
First American Treasury Obligations Fund, Class Z Shares |  | 5.18%(h) |  |  |  |  |  |  |  | 8,188 |  |  | 8,188 |
Total Short Term Investments |  |  |  |  |  |  |  |  |  | 8,188 |  |  | 8,188 |
TOTAL INVESTMENTS |  |  |  |  |  |  |  |  |  | $ | 83,816 |  |  | $ | 85,929 |
a.The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of March 31, 2024, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to March 31, 2024. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2024, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2024. b.Represents amortized cost for debt securities and cost for equity investments. c.The CLO subordinated notes are considered equity positions in the CLO vehicles and are not rated. Equity investments are entitled to recurring distributions, which are generally equal to the remaining cash flow of the payments made by the underlying vehicle's securities less contractual payments to debt holders and expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized. d.Non-income producing security. e.The interest rate on these loans is subject to 1 month LIBOR, which as of March 31, 2024 was 5.44%. f.The interest rate on these loans is subject to 1 month SOFR, which as of March 31, 2024 was 5.33%. g.The interest rate on these loans is subject to 3 month SOFR, which as of March 31, 2024 was 5.30%. h.Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less. i.7-day effective yield as of March 31, 2024. The following table sets forth the individual investments in CION/EagleTree's portfolio as of December 31, 2023:
Portfolio Company |  | Interest(a) |  | Maturity |  | Industry |  | Principal/ Par Amount/ Units |  | Cost(b) |  | Fair Value
Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Berlitz Holdings, Inc.(f) |  | S+900, 1.00% SOFR Floor |  | 2/14/2025 |  | Services: Business |  | 1,200 |  |  | 1,157 |  |  | 1,194 |
Community Tree Service, LLC(g) |  | S+850, 1.00% SOFR Floor |  | 6/17/2027 |  | Construction & Building |  | 463 |  |  | 463 |  |  | 464 |
Total Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  | 1,620 |  |  | 1,658 |
Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Access CIG, LLC(g) |  | S+775, 0.00% SOFR Floor |  | 2/27/2026 |  | Services: Business |  | 7,250 |  |  | 7,229 |  |  | 7,244 |
MedPlast Holdings, Inc.(e) |  | L+775, 0.00% LIBOR Floor |  | 7/2/2026 |  | Healthcare & Pharmaceuticals |  | 6,750 |  |  | 6,276 |  |  | 6,535 |
Total Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  | 13,505 |  |  | 13,779 |
Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  |  |  |
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan(c) |  | 11.84% Estimated Yield |  | 2/2/2026 |  | Diversified Financials |  | 10,000 |  |  | 9,717 |  |  | 9,117 |
Total Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  | 9,717 |  |  | 9,117 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
American Clinical Solutions LLC, Class A Membership Interests(d) |  |  |  | Healthcare & Pharmaceuticals |  | 6,030,384 Units |  | 5,200 |  |  | 5,065 |
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 1,469 Units |  | 486 |  |  | 1,622 |
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 255 Units |  | — |  |  | 31 |
Anthem Sports and Entertainment Inc., Common Stock Warrants(d) |  |  |  | Media: Diversified & Production |  | 4,746 Units |  | — |  |  | — |
BCP Great Lakes II - Series A Holdings LP, Partnership Interests (4.2% ownership) |  |  |  | Diversified Financials |  | N/A |  | 12,144 |  |  | 12,464 |
Carestream Health Holdings, Inc., Common Stock(d) |  |  |  | Healthcare & Pharmaceuticals |  | 614,367 Units |  | 21,759 |  |  | 21,386 |
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend |  |  |  | Healthcare & Pharmaceuticals |  | 2,727,273 Units |  | 8,218 |  |  | 10,391 |
CTS Ultimate Holdings LLC, Class A Preferred Units(d) |  |  |  | Construction & Building |  | 3,578,701 Units |  | 1,000 |  |  | 895 |
Dayton HoldCo, LLC, Membership Units(d) |  |  |  | Construction & Building |  | 37,264 Units |  | 8,400 |  |  | 14,537 |
HDNet Holdco LLC, Preferred Unit Call Option(d) |  |  |  | Media: Diversified & Production |  | 1 Unit |  | — |  |  | 382 |
Language Education Holdings GP LLC, Common Units(d) |  |  |  | Services: Business |  | 133,333 Units |  | — |  |  | — |
Language Education Holdings LP, Ordinary Common Units(d) |  |  |  | Services: Business |  | 133,333 Units |  | 300 |  |  | 503 |
Skillsoft Corp., Class A Common Stock(d) |  |  |  | High Tech Industries |  | 12,171 Units |  | 2,000 |  |  | 214 |
Spinal USA, Inc. / Precision Medical Inc., Warrants(d) |  |  |  | Healthcare & Pharmaceuticals |  | 20,667,324 Units |  | — |  |  | — |
Total Equity |  |  |  |  |  |  |  |  |  | 59,507 |  |  | 67,490 |
Short Term Investments(g) |  |  |  |  |  |  |  |  |  |  |  |
First American Treasury Obligations Fund, Class Z Shares |  | 5.24%(i) |  |  |  |  |  |  |  | 1,306 |  |  | 1,306 |
Total Short Term Investments |  |  |  |  |  |  |  |  |  | 1,306 |  |  | 1,306 |
TOTAL INVESTMENTS |  |  |  |  |  |  |  |  |  | $ | 85,655 |  |  | $ | 93,350 |
a.The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of December 31, 2023, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to December 31, 2023. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2023, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2023. b.Represents amortized cost for debt securities and cost for equity investments. c.The CLO subordinated notes are considered equity positions in the CLO vehicles and are not rated. Equity investments are entitled to recurring distributions, which are generally equal to the remaining cash flow of the payments made by the underlying vehicle's securities less contractual payments to debt holders and expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized. d.Non-income producing security. e.The interest rate on these loans is subject to 1 month LIBOR, which as of December 31, 2023 was 5.47%. f.The interest rate on these loans is subject to 1 month SOFR, which as of December 31, 2023 was 5.35%. g.The interest rate on these loans is subject to 3 month SOFR, which as of December 31, 2023 was 5.33%. h.Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less. i.7-day effective yield as of December 31, 2023. The following table includes selected balance sheet information for CION/EagleTree as of March 31, 2024 and December 31, 2023:
Selected Balance Sheet Information: |  | March 31, 2024 |  | December 31, 2023
Investments, at fair value (amortized cost of $83,816 and $85,655, respectively) |  | $ | 85,929 |  |  | $ | 93,350 |
Cash and other assets |  | 761 |  |  | 14 |
Dividend receivable on investments |  | 361 |  |  | 414 |
Interest receivable on investments |  | 258 |  |  | 287 |
Total assets |  | $ | 87,309 |  |  | $ | 94,065 |
Senior secured notes (net of unamortized debt issuance costs of $64 and $70, respectively) |  | $ | 64,438 |  |  | $ | 64,432 |
Other liabilities |  | 203 |  |  | 166 |
Total liabilities |  | 64,641 |  |  | 64,598 |
Members' capital |  | 22,668 |  |  | 29,467 |
Total liabilities and members' capital |  | $ | 87,309 |  |  | $ | 94,065 |
The following table includes selected statement of operations information for CION/EagleTree for the three months ended March 31, 2024 and 2023 and for the year ended December 31, 2023:
| Three Months Ended March 31, |  |  |  | Year Ended December 31,
Selected Statement of Operations Information: | 2024 |  | 2023 |  |  |  |  |  | 2023
Total investment income | $ | 1,302 |  |  | $ | 1,595 |  |  |  |  |  |  | $ | 6,230 |
Total expenses | 2,518 |  |  | 2,692 |  |  |  |  |  |  | 10,213 |
Net realized gain (loss) on investments | — |  |  | 176 |  |  |  |  |  |  | (2,083) |
Net change in unrealized (depreciation) appreciation on investments | (5,583) |  |  | 37 |  |  |  |  |  |  | 4,338 |
Net decrease in net assets | $ | (6,799) |  |  | $ | (884) |  |  |  |  |  |  | $ | (1,728) |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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