XML 35 R28.htm IDEA: XBRL DOCUMENT v3.24.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Portfolio by Security and Investment

The following table shows the Company’s portfolio by security type as of September 30, 2024 and December 31, 2023:

 

($ in thousands)

 

September 30, 2024

 

 

December 31, 2023

 

Security Type

 

Cost/Amortized
Cost

 

 

Fair Value

 

 

Fair Value Percentage of Total Portfolio

 

 

Cost/Amortized
Cost

 

 

Fair Value

 

 

Fair Value Percentage of Total Portfolio

 

First Lien Debt

 

$

338,616

 

 

$

316,444

 

 

 

73.8

%

 

$

351,858

 

 

$

336,599

 

 

 

71.9

%

Second Lien Debt

 

 

36,758

 

 

 

28,885

 

 

 

6.7

%

 

 

50,814

 

 

 

41,254

 

 

 

8.8

%

Subordinated Debt

 

 

8,056

 

 

 

1,696

 

 

 

0.4

%

 

 

7,990

 

 

 

1,224

 

 

 

0.3

%

Collateralized Loan Obligations

 

 

7,881

 

 

 

6,786

 

 

 

1.6

%

 

 

9,103

 

 

 

8,968

 

 

 

1.9

%

Joint Ventures

 

 

64,153

 

 

 

52,288

 

 

 

12.2

%

 

 

71,415

 

 

 

59,287

 

 

 

12.7

%

Equity

 

 

29,493

 

 

 

22,879

 

 

 

5.3

%

 

 

31,280

 

 

 

20,533

 

 

 

4.4

%

Asset Manager Affiliates(1)

 

 

17,791

 

 

 

—

 

 

 

—

 

 

 

17,791

 

 

 

—

 

 

 

—

 

Derivatives

 

 

31

 

 

 

—

 

 

 

—

 

 

 

31

 

 

 

—

 

 

 

—

 

Total

 

$

502,779

 

 

$

428,978

 

 

 

100.0

%

 

$

540,282

 

 

$

467,865

 

 

 

100.0

%

 

 

(1)
Represents the equity investment in the Asset Manager Affiliates.

The industry concentrations based on the fair value of the Company’s investment portfolio as of September 30, 2024 and December 31, 2023 were as follows:

 

($ in thousands)

 

September 30, 2024

 

 

December 31, 2023

 

Industry Classification

 

Cost/Amortized
Cost

 

 

Fair Value

 

 

Fair Value Percentage of Total Portfolio

 

 

Cost/Amortized
Cost

 

 

Fair Value

 

 

Fair Value Percentage of Total Portfolio

 

Services: Business

 

$

63,140

 

 

$

59,814

 

 

 

13.9

%

 

$

58,997

 

 

$

57,168

 

 

 

12.2

%

Healthcare & Pharmaceuticals

 

 

56,599

 

 

 

55,075

 

 

 

12.8

%

 

 

59,189

 

 

 

57,224

 

 

 

12.2

%

Joint Venture

 

 

64,153

 

 

 

52,288

 

 

 

12.2

%

 

 

71,415

 

 

 

59,287

 

 

 

12.7

%

Banking, Finance, Insurance & Real Estate

 

 

48,836

 

 

 

49,343

 

 

 

11.5

%

 

 

51,486

 

 

 

53,918

 

 

 

11.5

%

High Tech Industries

 

 

53,307

 

 

 

45,346

 

 

 

10.6

%

 

 

84,676

 

 

 

73,430

 

 

 

15.7

%

Consumer goods: Durable

 

 

24,713

 

 

 

21,653

 

 

 

5.0

%

 

 

16,431

 

 

 

13,898

 

 

 

3.0

%

Finance

 

 

19,053

 

 

 

19,098

 

 

 

4.5

%

 

 

18,884

 

 

 

18,972

 

 

 

4.1

%

Media: Broadcasting & Subscription

 

 

17,286

 

 

 

13,357

 

 

 

3.1

%

 

 

16,665

 

 

 

14,618

 

 

 

3.1

%

Machinery (Non-Agrclt/Constr/Electr)

 

 

11,592

 

 

 

12,452

 

 

 

2.9

%

 

 

9,836

 

 

 

10,097

 

 

 

2.2

%

Beverage, Food and Tobacco

 

 

12,544

 

 

 

11,764

 

 

 

2.8

%

 

 

12,220

 

 

 

11,444

 

 

 

2.4

%

Aerospace and Defense

 

 

11,423

 

 

 

11,448

 

 

 

2.7

%

 

 

11,130

 

 

 

11,256

 

 

 

2.4

%

Chemicals, Plastics and Rubber

 

 

9,956

 

 

 

9,458

 

 

 

2.2

%

 

 

9,738

 

 

 

9,836

 

 

 

2.1

%

Retail

 

 

9,538

 

 

 

8,077

 

 

 

1.9

%

 

 

9,334

 

 

 

8,732

 

 

 

1.9

%

Construction & Building

 

 

7,683

 

 

 

7,325

 

 

 

1.7

%

 

 

7,737

 

 

 

7,441

 

 

 

1.6

%

Transportation: Consumer

 

 

7,423

 

 

 

7,487

 

 

 

1.7

%

 

 

7,465

 

 

 

7,409

 

 

 

1.6

%

CLO Fund Securities

 

 

7,881

 

 

 

6,786

 

 

 

1.6

%

 

 

9,103

 

 

 

8,968

 

 

 

1.9

%

Healthcare, Education and Childcare

 

 

6,129

 

 

 

6,121

 

 

 

1.4

%

 

 

6,175

 

 

 

6,163

 

 

 

1.3

%

Metals & Mining

 

 

9,950

 

 

 

5,202

 

 

 

1.2

%

 

 

9,000

 

 

 

7,742

 

 

 

1.7

%

Transportation: Cargo

 

 

7,139

 

 

 

4,843

 

 

 

1.1

%

 

 

11,606

 

 

 

10,303

 

 

 

2.2

%

Telecommunications

 

 

3,813

 

 

 

3,239

 

 

 

0.8

%

 

 

5,268

 

 

 

4,389

 

 

 

0.9

%

Diversified Financial Services

 

 

2,952

 

 

 

2,973

 

 

 

0.7

%

 

 

—

 

 

 

—

 

 

 

0.0

%

Containers, Packaging and Glass

 

 

2,730

 

 

 

2,680

 

 

 

0.6

%

 

 

2,734

 

 

 

2,665

 

 

 

0.6

%

Hotel, Gaming & Leisure

 

 

7,006

 

 

 

2,429

 

 

 

0.6

%

 

 

8,358

 

 

 

3,948

 

 

 

0.8

%

Interactive Media & Services

 

 

2,568

 

 

 

2,589

 

 

 

0.6

%

 

 

2,663

 

 

 

2,662

 

 

 

0.6

%

Services: Consumer

 

 

2,670

 

 

 

2,660

 

 

 

0.6

%

 

 

—

 

 

 

—

 

 

 

0.0

%

IT Consulting & Other Services

 

 

2,185

 

 

 

2,291

 

 

 

0.5

%

 

 

2,213

 

 

 

2,259

 

 

 

0.5

%

Application Software

 

 

1,164

 

 

 

1,154

 

 

 

0.3

%

 

 

—

 

 

 

—

 

 

 

0.0

%

Capital Equipment

 

 

10,808

 

 

 

1,354

 

 

 

0.3

%

 

 

10,684

 

 

 

1,203

 

 

 

0.3

%

Energy: Electricity

 

 

671

 

 

 

672

 

 

 

0.2

%

 

 

671

 

 

 

671

 

 

 

0.1

%

Alternative Carriers

 

 

—

 

 

 

—

 

 

 

0.0

%

 

 

971

 

 

 

937

 

 

 

0.2

%

Asset Management Company(1)

 

 

17,791

 

 

 

—

 

 

 

0.0

%

 

 

17,791

 

 

 

—

 

 

 

0.0

%

Energy: Oil & Gas

 

 

76

 

 

 

—

 

 

 

0.0

%

 

 

6,721

 

 

 

100

 

 

 

0.0

%

Media: Diversified & Production

 

 

—

 

 

 

—

 

 

 

0.0

%

 

 

1,121

 

 

 

1,125

 

 

 

0.2

%

Total

 

$

502,779

 

 

$

428,978

 

 

 

100.0

%

 

$

540,282

 

 

$

467,865

 

 

 

100.0

%

 

(1)
Represents the equity investment in the Asset Manager Affiliates.
Summary of Investments in CLO Fund Securities

The following table details investments in CLO Fund Securities as of September 30, 2024 and December 31, 2023:

 

($ in thousands)

 

 

 

September 30, 2024

 

 

 

 

 

December 31, 2023

 

 

 

CLO Fund Securities

 

Investment

 

Amortized
Cost

 

 

Fair Value

 

 

Percentage Ownership(1)

 

 

Amortized
Cost

 

 

Fair Value

 

Percentage Ownership(1)

 

Catamaran CLO 2014-1 Ltd.

 

Collateralized Loan Obligations

 

$

120

 

 

$

120

 

 

 

22.2

%

 

$

1,024

 

 

$

904

 

 

22.2

%

Catamaran CLO 2018-1 Ltd.

 

Collateralized Loan Obligations

 

 

3,339

 

 

 

2,832

 

 

 

24.8

%

 

 

3,923

 

 

 

3,923

 

 

24.8

%

Dryden 30 Senior Loan Fund

 

Collateralized Loan Obligations

 

 

170

 

 

 

170

 

 

 

6.8

%

 

 

424

 

 

 

409

 

 

6.8

%

JMP Credit Advisors CLO IV Ltd.

 

Collateralized Loan Obligations

 

 

740

 

 

 

698

 

 

 

57.2

%

 

 

683

 

 

 

683

 

 

57.2

%

JMP Credit Advisors CLO V Ltd.

 

Collateralized Loan Obligations

 

 

3,512

 

 

 

2,966

 

 

 

57.2

%

 

 

3,049

 

 

 

3,049

 

 

57.2

%

Total

 

 

 

$

7,881

 

 

$

6,786

 

 

 

 

 

$

9,103

 

 

$

8,968

 

 

 

 

(1)
Represents percentage of class held at September 30, 2024 and December 31, 2023, respectively.
Summary of Investments in Affiliates

The following table details investments in affiliates at September 30, 2024 (dollars in thousands):

 

Investment(1)

Type of Investment

Industry
Classification

Fair Value
as of December 31, 2023

 

Purchases/
(Sales) of or
Advances/
(Distributions)

 

Net
Accretion

 

Transfers
In/(Out)
of
Affiliates

 

Net Change in Unrealized
Gain/(Loss)

 

Realized
Gain/(Loss)

 

Fair Value
as of September 30, 2024

 

Principal / Shares at September 30, 2024

 

Interest and Fee
Income

 

Dividend
Income

 

Controlled investments(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management Company(2)

Asset Manager Affiliates

Asset
Management
Company

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Tank Partners Equipment Holdings, LLC - Class A Units(5)

Common Stock and Membership Units

Energy: Oil &
Gas

 

—

 

 

—

 

 

—

 

 

—

 

 

6,228

 

 

(6,228

)

 

—

 

 

—

 

 

—

 

 

—

 

Tank Partners Equipment Holdings, LLC

Subordinated Debt

Energy: Oil &
Gas

 

43

 

 

—

 

 

—

 

 

—

 

 

373

 

 

(416

)

 

—

 

 

—

 

 

—

 

 

—

 

ProAir Holdco, LLC(5)

Common Stock and Membership Units

Capital Equipment

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,749,997

 

 

—

 

 

—

 

ProAir, LLC

Subordinated Debt

Capital Equipment

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,020

 

 

—

 

 

—

 

KCAP Freedom 3, LLC(2)

Joint Ventures

Joint Venture

 

14,275

 

 

(1,579

)

 

—

 

 

—

 

 

316

 

 

—

 

 

13,012

 

 

27,220

 

 

—

 

 

—

 

Total Controlled investments

 

 

$

14,318

 

$

(1,579

)

$

—

 

$

—

 

$

6,917

 

$

(6,644

)

$

13,012

 

 

 

$

—

 

$

—

 

Non-controlled affiliated investments(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A-Great Lakes Funding II LLC(2)(6)(7)

Joint Ventures

Joint Venture

$

45,012

 

$

(5,683

)

$

—

 

$

—

 

$

(53

)

$

—

 

$

39,276

 

$

38,318

 

$

—

 

$

5,122

 

GreenPark Infrastructure, LLC - Series A(5)

Preferred Stock and Units

Energy: Electricity

 

500

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

500

 

 

1,000

 

 

—

 

 

—

 

GreenPark Infrastructure, LLC - Series M-1(5)

Common Stock and Membership Units

Energy: Electricity

 

171

 

 

—

 

 

—

 

 

—

 

 

1

 

 

—

 

 

172

 

 

500

 

 

—

 

 

—

 

Kleen-Tech Acquisition, LLC (5)

Common Stock

Services: Business

 

998

 

 

—

 

 

—

 

 

—

 

 

492

 

 

—

 

 

1,490

 

 

250,000

 

 

—

 

 

—

 

Northeast Metal Works LLC - Preferred(5)

Preferred Stock and Units

Metals & Mining

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,368

 

 

—

 

 

—

 

Northeast Metal Works LLC - Class O Preferred(5)

Preferred Stock and Units

Metals & Mining

 

4,182

 

 

450

 

 

—

 

 

—

 

 

(3,359

)

 

—

 

 

1,273

 

 

4,950,000

 

 

360

 

 

—

 

Northeast Metal Works LLC

Subordinated Debt

Metals & Mining

 

3,560

 

 

—

 

 

—

 

 

—

 

 

(131

)

 

—

 

 

3,429

 

 

4,500

 

 

274

 

 

—

 

Northeast Metal Works LLC

Subordinated Debt

Metals & Mining

 

—

 

 

500

 

 

—

 

 

—

 

 

—

 

 

—

 

 

500

 

 

500

 

 

25

 

 

—

 

BMP Slappey Holdco, LLC(5)

Preferred Stock and Units

Telecommunications

 

553

 

 

—

 

 

—

 

 

—

 

 

73

 

 

—

 

 

626

 

 

200,000

 

 

—

 

 

—

 

BMP Slappey Investment II(5)

Preferred Stock and Units

Telecommunications

 

246

 

 

—

 

 

—

 

 

—

 

 

32

 

 

—

 

 

278

 

 

88,946

 

 

—

 

 

—

 

Princeton Medspa Partners, LLC(5)

Preferred Stock and Units

Healthcare & Pharmaceuticals

 

—

 

 

1,032

 

 

—

 

 

—

 

 

(45

)

 

—

 

 

987

 

 

1,032

 

 

43

 

 

—

 

Princeton Medspa Partners, LLC - Warrant(5)

Common Stock and Membership Units

Healthcare & Pharmaceuticals

 

—

 

 

—

 

 

—

 

 

—

 

 

46

 

 

—

 

 

46

 

 

0

 

 

—

 

 

—

 

Princeton Medspa Partners, LLC - Put Option(2)

Derivatives

Healthcare & Pharmaceuticals

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

1,000,000

 

 

—

 

 

—

 

PMP OPCO, LLC ((Princeton Medspa Partners, LLC)(7)

First Lien/Senior Secured Debt

Healthcare & Pharmaceuticals

 

—

 

 

1,639

 

 

2

 

 

—

 

 

(10

)

 

—

 

 

1,631

 

 

1,683

 

 

86

 

 

—

 

PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)(7)

First Lien/Senior Secured Debt

Healthcare & Pharmaceuticals

 

—

 

 

(4

)

 

—

 

 

—

 

 

—

 

 

—

 

 

(4

)

 

—

 

 

1

 

 

—

 

EBSC Holdings LLC (Riddell, Inc.)(5)

Preferred Stock and Units

Consumer goods: Durable

 

—

 

 

2,075

 

 

—

 

 

—

 

 

21

 

 

—

 

 

2,096

 

 

2,100,969

 

 

101

 

 

—

 

Riddell, Inc.(7)

First Lien/Senior Secured Debt

Consumer goods: Durable

 

—

 

 

6,170

 

 

13

 

 

—

 

 

24

 

 

—

 

 

6,207

 

 

6,284

 

 

377

 

 

—

 

Total non-controlled affiliated investments

 

 

$

55,222

 

$

6,179

 

$

15

 

$

—

 

$

(2,909

)

$

—

 

$

58,507

 

 

 

$

1,267

 

$

5,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-controlled affiliated and controlled investments

 

 

$

69,540

 

$

4,600

 

$

15

 

$

—

 

$

4,008

 

$

(6,644

)

$

71,519

 

 

 

$

1,267

 

$

5,122

 

 

 

 

(1)
All investments valued using unobservable inputs (Level III), unless otherwise noted.
(2)
Non-qualified asset for purposes of section 55(a) of the Investment Company Act of 1940.
(3)
As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.
(4)
Under the 1940 Act, the Company is deemed to be an “Affiliated Person” of, as defined in the 1940 Act, this portfolio company as the Company owns at least 5% of the portfolio company’s outstanding voting securities or is under common control with such portfolio company.
(5)
Number of shares held.
(6)
The investment is valued at the NAV of the underlying fund.
(7)
Security has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 for additional information on the Company’s commitments and contingencies.

The following table details investments in affiliates at December 31, 2023 (dollars in thousands):

 

Investment(1)

Industry
Classification

Fair Value
as of
December 31,
2022

 

Purchases/
(Sales) of or
Advances/
(Distributions)

 

Net
Accretion

 

Transfers
In/(Out)
of
Affiliates

 

Net Change in Unrealized
Gain/(Loss)

 

Realized
Gain/(Loss)

 

Fair Value
as of December 31, 2023

 

Principal / Shares at December 31, 2023

 

Interest and Fee
Income

 

Dividend
Income

 

Controlled investments(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Manager Affiliates(2)

Asset
Management
Company

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Tank Partners Equipment Holdings, LLC - Class A Units(6)

Energy: Oil &
Gas

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

49,000

 

 

—

 

 

—

 

Tank Partners Equipment Holdings, LLC

Energy: Oil &
Gas

 

43

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

43

 

 

511

 

 

—

 

 

—

 

Flight Lease VII (4)(6)

Aerospace and Defense

 

242

 

 

(248

)

 

—

 

 

—

 

 

39

 

 

(33

)

 

—

 

 

—

 

 

—

 

 

—

 

ProAir, LLC(6)

Capital Equipment

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,749,997

 

 

—

 

 

—

 

ProAir, LLC

Capital Equipment

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,020

 

 

—

 

 

—

 

KCAP Freedom 3, LLC(2)

Joint Venture

 

18,668

 

 

—

 

 

—

 

 

—

 

 

(4,393

)

 

—

 

 

14,275

 

 

27,220

 

 

—

 

 

2,184

 

Total controlled investments

 

$

18,953

 

$

(248

)

$

—

 

$

—

 

$

(4,354

)

$

(33

)

$

14,318

 

 

 

$

—

 

$

2,184

 

Non-controlled affiliated investments(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A-Great Lakes Funding II LLC(2)(6)(7)

Joint Venture

$

40,287

 

$

2,565

 

$

—

 

$

—

 

$

2,160

 

$

—

 

$

45,012

 

$

44,000

 

$

—

 

$

6,764

 

GreenPark Infrastructure, LLC - Series A(6)

Energy: Electricity

 

500

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

500

 

 

1,000

 

 

—

 

 

—

 

GreenPark Infrastructure, LLC - Series M-1(6)

Energy: Electricity

 

171

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

171

 

 

500

 

 

—

 

 

—

 

Kleen-Tech Acquisition, LLC(6)

Services: Business

 

1,300

 

 

—

 

 

—

 

 

—

 

 

(302

)

 

—

 

 

998

 

 

250,000

 

 

—

 

 

—

 

Northeast Metal Works LLC

Metals & Mining

 

13,445

 

 

(4,428

)

 

—

 

 

(9,000

)

 

1,107

 

 

(1,124

)

 

—

 

 

—

 

 

377

 

 

—

 

Northeast Metal Works LLC - Preferred(6)

Metals & Mining

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,368

 

 

—

 

 

—

 

Northeast Metal Works LLC - Class O Preferred(6)

Metals & Mining

 

—

 

 

—

 

 

—

 

 

4,500

 

 

(318

)

 

—

 

 

4,182

 

 

4,500,000

 

 

333

 

 

—

 

Northeast Metal Works LLC

Metals & Mining

 

—

 

 

—

 

 

—

 

 

4,500

 

 

(940

)

 

—

 

 

3,560

 

 

4,500

 

 

270

 

 

—

 

BMP Slappey Holdco, LLC(6)

Telecommunications

 

464

 

 

—

 

 

—

 

 

—

 

 

89

 

 

—

 

 

553

 

 

200,000

 

 

—

 

 

—

 

BMP Slappey Investment II(6)

Telecommunications

 

206

 

 

—

 

 

—

 

 

—

 

 

40

 

 

—

 

 

246

 

 

88,946

 

 

—

 

 

—

 

Surge Hippodrome Partners LP(6)

Services: Business

 

811

 

 

(813

)

 

—

 

 

—

 

 

(386

)

 

388

 

 

—

 

 

—

 

 

—

 

 

—

 

Surge Hippodrome Holdings LLC(6)

Services: Business

 

484

 

 

(496

)

 

—

 

 

—

 

 

(325

)

 

337

 

 

—

 

 

—

 

 

—

 

 

—

 

Surge Hippodrome Holdings LLC

Services: Business

 

5,165

 

 

(5,460

)

 

328

 

 

—

 

 

(33

)

 

—

 

 

—

 

 

—

 

 

675

 

 

—

 

Navex Topco, Inc.

Electronics

 

7,604

 

 

(7,700

)

 

310

 

 

—

 

 

(214

)

 

—

 

 

—

 

 

—

 

 

804

 

 

—

 

Zest Acquisition Corp.

Healthcare, Education and Childcare

 

3,390

 

 

(3,501

)

 

9

 

 

—

 

 

102

 

 

—

 

 

—

 

 

—

 

 

42

 

 

—

 

Total non-controlled affiliated investments

 

$

73,827

 

$

(19,833

)

$

647

 

$

—

 

$

980

 

$

(399

)

$

55,222

 

 

 

$

2,501

 

$

6,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-controlled affiliated and controlled investments

 

$

92,780

 

$

(20,081

)

$

647

 

$

—

 

$

(3,374

)

$

(432

)

$

69,540

 

 

 

$

2,501

 

$

8,948

 

 

(1)
Fair value of this investment was determined using significant unobservable inputs, unless otherwise noted.
(2)
Non-qualified asset for purposes of section 55(a) of the Investment Company Act of 1940.
(3)
As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.
(4)
As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.
(5)
Under the 1940 Act, the Company is deemed to be an “Affiliated Person” of, as defined in the 1940 Act, this portfolio company as the Company owns at least 5% of the portfolio company’s outstanding voting securities or is under common control with such portfolio company.
(6)
Number of shares held.
(7)
The investment is valued at the NAV of the underlying fund.
(8)
Security has an unfunded commitment in addition to the amounts shown in consolidated schedule of investments. See Note 8 for additional information on the Company's commitments and contingencies
Summary of Fair Value of Investments by Fair Value Hierarchy Levels

The following table summarizes the fair value of investments by fair value hierarchy levels provided by ASC 820: Fair Value as of September 30, 2024 (unaudited) and December 31, 2023, respectively:

 

 

 

As of September 30, 2024

 

($ in thousands)

 

Level I

 

 

Level II

 

 

Level III

 

 

NAV

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

29,900

 

 

$

286,544

 

 

$

—

 

 

$

316,444

 

Second Lien Debt

 

 

—

 

 

 

8,570

 

 

 

20,315

 

 

 

—

 

 

 

28,885

 

Subordinated Debt

 

 

—

 

 

 

—

 

 

 

1,696

 

 

 

—

 

 

 

1,696

 

Equity

 

 

—

 

 

 

—

 

 

 

22,879

 

 

 

—

 

 

 

22,879

 

Collateralized Loan Obligations

 

 

—

 

 

 

—

 

 

 

6,786

 

 

 

—

 

 

 

6,786

 

Joint Ventures

 

 

—

 

 

 

—

 

 

 

13,012

 

 

 

39,276

 

 

 

52,288

 

Derivatives

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

38,470

 

 

$

351,232

 

 

$

39,276

 

 

$

428,978

 

 

 

 

 

As of December 31, 2023

 

($ in thousands)

 

Level I

 

 

Level II

 

 

Level III

 

 

NAV

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

47,303

 

 

$

289,295

 

 

$

—

 

 

$

336,598

 

Second Lien Debt

 

 

—

 

 

 

18,022

 

 

 

23,232

 

 

 

—

 

 

 

41,254

 

Subordinated Debt

 

 

—

 

 

 

—

 

 

 

1,225

 

 

 

—

 

 

 

1,225

 

Equity

 

 

—

 

 

 

—

 

 

 

20,533

 

 

 

—

 

 

 

20,533

 

Collateralized Loan Obligations

 

 

—

 

 

 

—

 

 

 

8,968

 

 

 

—

 

 

 

8,968

 

Joint Ventures

 

 

—

 

 

 

—

 

 

 

14,275

 

 

 

45,012

 

 

 

59,287

 

Derivatives

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

65,325

 

 

$

357,528

 

 

$

45,012

 

 

$

467,865

 

 
Summary of Information Relating to Investments Measured at Fair Value for Company has Used Unobservable Inputs to Determine Fair Value

The Company’s policy for determining transfers between levels is based solely on the previously defined three-level hierarchy for fair value measurement. Transfers between the levels of the fair value hierarchy are separately noted in the tables below and the reason for such transfer described in each table’s respective footnotes. Certain information relating to investments measured at fair value for which the Company has used unobservable inputs to determine fair value is as follows:

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2024

 

($ in thousands)

 

First Lien Debt

 

 

Second Lien Debt

 

 

Subordinated Debt

 

 

Equity

 

 

Collateral Loan Obligations

 

 

Joint
Ventures

 

 

Derivatives

 

 

Total

 

Balance, December 31, 2023

 

$

289,295

 

 

$

23,232

 

 

$

1,225

 

 

$

20,533

 

 

$

8,968

 

 

$

14,275

 

 

$

—

 

 

$

357,528

 

Transfers out of Level III¹

 

 

(7,018

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,018

)

Transfers into Level III²

 

 

4,514

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,514

 

Net accretion

 

 

1,624

 

 

 

30

 

 

 

—

 

 

 

—

 

 

 

1,335

 

 

 

—

 

 

 

—

 

 

 

2,989

 

Purchases

 

 

53,697

 

 

 

1,165

 

 

 

944

 

 

 

5,720

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

61,526

 

Sales/Paydowns/Return of Capital

 

 

(48,790

)

 

 

(3,961

)

 

 

(459

)

 

 

(864

)

 

 

(1,316

)

 

 

(1,580

)

 

 

—

 

 

 

(56,970

)

Realized gain (loss) included in earnings

 

 

(1,312

)

 

 

(3

)

 

 

(419

)

 

 

(5,364

)

 

 

(1,242

)

 

 

—

 

 

 

—

 

 

 

(8,340

)

Change in unrealized gain (loss) included in earnings

 

 

(5,466

)

 

 

(148

)

 

 

405

 

 

 

2,854

 

 

 

(959

)

 

 

317

 

 

 

—

 

 

 

(2,997

)

Balance, September 30, 2024

 

$

286,544

 

 

$

20,315

 

 

$

1,696

 

 

$

22,879

 

 

$

6,786

 

 

$

13,012

 

 

$

—

 

 

$

351,232

 

Changes in unrealized gains (losses) included in earnings related to investments still held at reporting date

 

$

(4,316

)

 

$

(150

)

 

$

33

 

 

$

(3,471

)

 

$

(960

)

 

$

317

 

 

$

—

 

 

$

(8,547

)

 

(1)
Transfers out of Level III represent a transfer of $7.0 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were observable as of September 30, 2024.
(2)
Transfers into Level III represent a transfer of $4.5 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were unobservable as of September 30, 2024.

 

 

 

 

For the Nine Months Ended September 30, 2023

 

($ in thousands)

 

First Lien Debt

 

 

Second Lien Debt

 

 

Subordinated Debt

 

 

Equity

 

 

Collateral Loan Obligations

 

 

Joint
Ventures

 

 

Derivatives

 

 

Total

 

Balance, December 31, 2022

 

$

359,648

 

 

$

50,453

 

 

$

43

 

 

$

21,905

 

 

$

20,453

 

 

$

18,668

 

 

$

—

 

 

$

471,170

 

Transfers out of Level III¹

 

 

(8,332

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,332

)

Transfers into Level III²

 

 

4,726

 

 

 

1,643

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,369

 

Net accretion

 

 

4,528

 

 

 

283

 

 

 

—

 

 

 

—

 

 

 

1,879

 

 

 

—

 

 

 

—

 

 

 

6,690

 

Purchases

 

 

29,486

 

 

 

649

 

 

 

—

 

 

 

478

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30,613

 

Sales/Paydowns/Return of Capital

 

 

(66,247

)

 

 

(22,656

)

 

 

5,567

 

 

 

(2,258

)

 

 

(1,741

)

 

 

—

 

 

 

—

 

 

 

(87,335

)

Realized gain (loss) included in earnings

 

 

323

 

 

 

(1,123

)

 

 

—

 

 

 

2,599

 

 

 

(12,918

)

 

 

—

 

 

 

—

 

 

 

(11,119

)

Change in unrealized gain (loss) included in earnings

 

 

(2,115

)

 

 

(775

)

 

 

(4,313

)

 

 

(3,535

)

 

 

2,752

 

 

 

(3,488

)

 

 

—

 

 

 

(11,474

)

Balance, September 30, 2023

 

$

322,017

 

 

$

28,474

 

 

$

1,297

 

 

$

19,189

 

 

$

10,425

 

 

$

15,180

 

 

$

—

 

 

$

396,582

 

Changes in unrealized gains (losses) included in earnings related to investments still held at reporting date

 

$

(6,150

)

 

$

(1,815

)

 

$

(4,314

)

 

$

(1,743

)

 

$

2,752

 

 

$

(3,488

)

 

$

—

 

 

$

(14,759

)

 

 

(1)
Transfers out of Level III represent a transfer of $8.3 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were observable as of September 30, 2023.
(2)
Transfers into Level III represent a transfer of $6.4 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were unobservable as of September 30, 2023.
Schedule of Valuation Techniques and Significant Inputs of Level III Investments

As of September 30, 2024, the Company’s Level III portfolio investments had the following valuation techniques and significant inputs (dollars in thousands):

 

Type

 

Fair Value

 

 

Primary Valuation
Techniques

 

Unobservable
Inputs

 

Range of Inputs
(Weighted Average)

First Lien Debt

 

$

39,631

 

 

Enterprise Value

 

Average EBITDA Multiple

 

6.1x - 7.5x (6.5x)

 

 

 

 

 

 

 

Expected Sale Proceeds

 

90.3x

 

 

 

 

 

 

 

Average Settlement Value

 

0.4x - 1.4x (1.1x)

 

 

 

 

 

 

 

Takeback Paper Price

 

$105.0

 

 

 

246,913

 

 

Income Approach

 

Implied Discount Rate

 

6.1% - 23.8% (11.6%)

Second Lien Debt

 

 

178

 

 

Enterprise Valuation

 

Takeback Paper Price

 

$10.8

 

 

 

20,137

 

 

Income Approach

 

Implied Discount Rate

 

10.6% - 22.4% (15.2%)

Subordinated Debt

 

 

484

 

 

Income Approach

 

Implied Discount Rate

 

14.8%

 

 

 

1,212

 

 

Recovery analysis

 

Average Settlement Value

 

$47.1

Equity

 

 

22,661

 

 

Enterprise Value

 

Average EBITDA Multiple

 

0.4x - 18.0x (5.9x)

 

 

 

 

 

 

 

Expected Sale Proceeds

 

90.3x

 

 

 

 

 

 

 

Book value of equity (asset)

 

1.0x

 

 

 

 

 

 

 

Time Horizon

 

$4.5-$5.2($4.7)

 

 

 

 

 

 

 

Current Payment Terms (Par)

 

$7.3

 

 

 

218

 

 

Income Approach

 

Implied Discount Rate

 

17.6%

Collateralized Loan Obligations

 

 

6,786

 

 

Discounted Cash Flow

 

Discount Rate

 

15.9% - 22.9% (19.2%)

 

 

 

 

 

 

 

Probability of Default

 

1.8% - 2.5% (2.0%)

 

 

 

 

 

 

 

Recovery Rate

 

65.0% - 75.0% (70.0%)

 

 

 

 

 

 

 

Prepayment Rate

 

15.0% - 25.0% (20.0%)

Joint Ventures

 

 

13,012

 

 

Discounted Cash Flow

 

Discount Rate

 

18.1% - 19.7% (18.9%)

 

 

 

 

 

 

 

Probability of Default

 

2.8% - 3.3% (3.0%)

 

 

 

 

 

 

 

Recovery Rate

 

65.0% - 75.0% (70.0%)

 

 

 

 

 

 

 

Prepayment Rate

 

15.0% - 25.0% (20.0%)

Derivatives

 

 

—

 

 

Enterprise Value

 

Average EBITDA Multiple

 

2.5x

Total Level III Investments

 

$

351,232

 

 

 

 

 

 

 

 

As of December 31, 2023, the Company’s Level III portfolio investments had the following valuation techniques and significant inputs (dollars in thousands):

 

Type

 

Fair Value

 

 

Primary Valuation
Techniques

 

Unobservable
Inputs

 

Range of Inputs
(Weighted Average)

First Lien Debt

 

$

8,846

 

 

Enterprise Value

 

Average EBITDA Multiple

 

0.4x - 0.4x (0.1x)

 

 

 

 

 

 

 

Expected Sale Proceeds

 

97.6x

 

 

 

275,179

 

 

Income Approach

 

Implied Discount Rate

 

5.3% - 40.7% (12.4%)

 

 

 

5,270

 

 

Recent Transaction

 

Implied Discount Rate

 

13.8% - 14.2% (14.0%)

Second Lien Debt

 

 

300

 

 

Enterprise Value

 

Implied Discount Rate

 

9.5x - 9.5x (9.5x)

 

 

 

22,932

 

 

Income approach

 

Implied Discount Rate

 

13.8% - 14.2% (14.0%)

Subordinated Debt

 

 

1,225

 

 

Enterprise Value

 

Average Settlement Value

 

61.0x - 61.0x (61.0x)

 

 

 

 

 

 

 

Recovery Rate Multiple

 

0.1x - 0.1x (0.1x)

Collateralized Loan Obligations

 

 

8,968

 

 

Discounted Cash Flow

 

Discount Rate

 

18.4% - 25.2% (21.1%)

 

 

 

 

 

 

 

Probability of Default

 

1.8% - 2.5% (2.0%)

 

 

 

 

 

 

 

Recovery Rate

 

65.0% - 75.0% (70.0%)

 

 

 

 

 

 

 

Prepayment Rate

 

15.0% - 25.0% (20.0%)

Joint Ventures

 

 

14,275

 

 

Discounted Cash Flow

 

Discount Rate

 

20.5% - 22.1% (21.3%)

 

 

 

 

 

 

 

Probability of Default

 

2.8% - 3.3% (3.0%)

 

 

 

 

 

 

 

Recovery Rate

 

65.0% - 75.0% (70.0%)

 

 

 

 

 

 

 

Prepayment Rate

 

15.0% - 25.0% (20.0%)

Equity

 

 

19,805

 

 

Enterprise Value

 

Average EBITDA Multiple

 

5.0x - 18.0x (6.9x)

 

 

 

 

 

 

 

Average EBITDA Multiple / WACC

 

0.4x - 3.7x (1.1x)

 

 

 

 

 

 

 

Book Value of Equity

 

1.0x - 1.6x (1.6x)

 

 

 

57

 

 

Income Approach

 

Implied Discount Rate

 

15.0% - 15.0% (15.0%)

 

 

 

671

 

 

Recent Transaction

 

Implied Discount Rate

 

12.4% - 12.4% (12.4%)

Derivatives

 

 

—

 

 

Enterprise Value

 

Average EBITDA Multiple

 

2.5x - 2.5x (2.5x)

Total Level III Investments

 

$

357,528

 

 

 

 

 

 

 
Schedule of Derivative Investments

The following table details derivative investments as of September 30, 2024 and December 31, 2023:

 

($ in thousands)

 

September 30, 2024

 

Types of contracts

 

Notional amounts

 

 

Derivative assets (liabilities)

 

 

Realized gain(loss)

 

 

Unrealized gain(loss)

 

Call option(1)

 

$

8

 

 

$

-

 

 

$

-

 

 

$

-

 

Put option(1)

 

 

1,563

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

1,571

 

 

$

-

 

 

$

-

 

 

$

-

 

(1) Net amount included in non-controlled/non- affiliated investments on the consolidated balance sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

December 31, 2023

 

Types of contracts

 

Notional amounts

 

 

Derivative assets (liabilities)

 

 

Realized gain(loss)

 

 

Unrealized gain(loss)

 

Call option(1)

 

$

8

 

 

$

-

 

 

$

-

 

 

$

-

 

Put option(1)

 

 

563

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

571

 

 

$

-

 

 

$

-

 

 

$

-

 

(1) Net amount included in non-controlled/non- affiliated investments on the consolidated balance sheets