Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FDUS | ||
Entity Registrant Name | FIDUS INVESTMENT CORPORATION | ||
Entity Central Index Key | 0001513363 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 24,842,692 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 814-00861 | ||
Entity Tax Identification Number | 27-5017321 | ||
Entity Address, Address Line One | 1603 Orrington Avenue, Suite 1005 | ||
Entity Address, City or Town | Evanston | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60201 | ||
City Area Code | 847 | ||
Local Phone Number | 859-3940 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | MD | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s proxy statement to be filed with the U.S. Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2023 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the U.S. Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2022 . | ||
Entity Public Float | $ 420,357,517 | ||
Auditor Firm ID | 49 | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Chicago, Illinois |
Consolidated Statements of Asse
Consolidated Statements of Assets and Liabilities (unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |||
ASSETS | |||||
Total investments, at fair value | $ 860,329 | $ 719,124 | |||
Cash and cash equivalents | 62,350 | 169,417 | |||
Interest receivable | 11,826 | 8,231 | |||
Prepaid expenses and other assets | 1,455 | 413 | |||
Total assets | 935,960 | 897,185 | |||
LIABILITIES | |||||
SBA debentures, net of deferred financing costs (Note 6) | 148,476 | 103,978 | |||
Notes, net of deferred financing costs (Note 6) | 246,128 | 245,016 | |||
Borrowings under Credit Facility, net of deferred financing costs (Note 6) | (1,380) | (595) | |||
Secured borrowings | 16,880 | 17,637 | |||
Accrued interest and fees payable | 4,747 | 4,668 | |||
Base management fee payable, net of base management fee waiver - due to affiliate | 3,769 | 3,135 | |||
Income incentive fee payable - due to affiliate | 3,035 | 2,622 | |||
Capital gains incentive fee payable - due to affiliate | 22,659 | 29,227 | |||
Administration fee payable and other - due to affiliate | 576 | 668 | |||
Taxes payable | 9,937 | 2,410 | |||
Accounts payable and other liabilities | 790 | 655 | |||
Total liabilities | 455,617 | 409,421 | |||
Commitments and contingencies (Note 7) | |||||
NET ASSETS | |||||
Common stock, $0.001 par value (100,000,000 shares authorized, 24,727,788 and 24,437,400 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively) | 25 | 24 | |||
Additional paid-in capital | 395,672 | 361,807 | |||
Total distributable earnings | 84,646 | 125,933 | |||
Total net assets | 480,343 | 487,764 | |||
Total liabilities and net assets | $ 935,960 | $ 897,185 | |||
Net asset value per common share | $ 19.43 | $ 19.96 | |||
Control Investments | |||||
ASSETS | |||||
Total investments, at fair value | [1],[2],[3],[4] | $ 2,151 | |||
Affiliate Investments | |||||
ASSETS | |||||
Total investments, at fair value | $ 101,590 | [5] | 137,284 | [1],[2],[3],[4],[6] | |
Non-control/Non-affiliate Investments | |||||
ASSETS | |||||
Total investments, at fair value | $ 758,739 | [5],[7] | $ 579,689 | [1],[2],[3],[4] | |
[1] All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. Except as otherwise noted, the Company’s investment portfolio is comprised of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. Investment date represents the date of the initial investment in the security. |
Consolidated Statements of As_2
Consolidated Statements of Assets and Liabilities (Parenthetical) (unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Investments at cost | $ 828,693 | $ 621,786 | ||
Common Stock, par value | $ 0.001 | $ 0.001 | ||
Common Stock, shares authorized | 100,000,000 | 100,000,000 | ||
Common Stock, shares issued | 24,727,788 | 24,437,400 | ||
Common Stock, shares outstanding | 24,727,788 | 24,437,400 | ||
Control Investments | ||||
Investments at cost | $ 17,915 | [1] | $ 6,833 | [2],[3],[4] |
Affiliate Investments | ||||
Investments at cost | 55,804 | [1] | 55,519 | [2],[3],[4],[5] |
Non-control/Non-affiliate Investments | ||||
Investments at cost | $ 754,974 | [1] | $ 559,434 | [2],[3],[4] |
[1] See Note 3 to the consolidated financial statements for portfolio composition by geographic location. All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Income: | |||
Total interest income | $ 82,344 | $ 73,078 | $ 73,495 |
Total payment-in-kind interest income | 1,663 | 4,294 | 4,660 |
Total dividend income | 1,614 | 2,635 | 2,467 |
Total fee income | 7,982 | 10,431 | 4,492 |
Interest on idle funds | 534 | 8 | 9 |
Total investment income | 94,137 | 90,446 | 85,123 |
Expenses: | |||
Interest and financing expenses | 18,665 | 19,164 | 19,678 |
Base management fee | 14,568 | 12,874 | 12,932 |
Incentive fee - income | 8,318 | 10,266 | 8,952 |
Incentive fee (reversal) - capital gains | (432) | 18,196 | (1,684) |
Administrative service expenses | 1,902 | 1,719 | 1,720 |
Professional fees | 2,463 | 1,899 | 2,622 |
Other general and administrative expenses | 994 | 875 | 816 |
Total expenses before base management and income incentive fee waivers | 46,478 | 64,993 | 45,036 |
Base management and income incentive fee waivers | (302) | (176) | (423) |
Total expenses, net of base management and incentive fee waivers | 46,176 | 64,817 | 44,613 |
Net investment income before income taxes | 47,961 | 25,629 | 40,510 |
Income tax provision (benefit) | 1,412 | 509 | 862 |
Net investment income | 46,549 | 25,120 | 39,648 |
Net realized and unrealized gains (losses) on investments: | |||
Total net realized gain (loss) on investments | 65,635 | 55,808 | (968) |
Income tax (provision) benefit from realized gains on investments | (1,841) | (2,057) | (577) |
Income tax (provision) from deemed distribution of long term capital gains | (8,568) | ||
Total net change in unrealized appreciation (depreciation) on investments | (65,702) | 41,496 | (6,578) |
Net gain (loss) on investments, including income tax (provision) benefit | (10,476) | 95,247 | (8,123) |
Realized losses on extinguishment of debt | (251) | (4,263) | (299) |
Net increase (decrease) in net assets resulting from operations | $ 35,822 | $ 116,104 | $ 31,226 |
Per common share data: | |||
Net investment income per share-basic | $ 1.90 | $ 1.03 | $ 1.62 |
Net investment income per share-diluted | 1.90 | 1.03 | 1.62 |
Net increase in net assets resulting from operations per share - basic and diluted | 1.46 | 4.75 | 1.28 |
Dividends declared per share | $ 2 | $ 1.60 | $ 1.33 |
Weighted average number of shares outstanding - basic | 24,468,172 | 24,437,400 | 24,442,431 |
Weighted average number of shares outstanding - diluted | 24,468,172 | 24,437,400 | 24,442,431 |
Control Investments | |||
Investment Income: | |||
Total interest income | $ 3,735 | $ 1,889 | |
Total payment-in-kind interest income | 2,117 | 1,748 | |
Total dividend income | 568 | ||
Total fee income | 1,872 | ||
Net realized and unrealized gains (losses) on investments: | |||
Total net realized gain (loss) on investments | $ 48 | 20,521 | |
Total net change in unrealized appreciation (depreciation) on investments | (13,233) | 34 | 1,182 |
Affiliate Investments | |||
Investment Income: | |||
Total interest income | 3,464 | 2,695 | 3,511 |
Total payment-in-kind interest income | 30 | 368 | 287 |
Total dividend income | 725 | 1,172 | 837 |
Total fee income | 457 | 385 | 120 |
Net realized and unrealized gains (losses) on investments: | |||
Total net realized gain (loss) on investments | 39,833 | 124 | 24,655 |
Total net change in unrealized appreciation (depreciation) on investments | (35,979) | 32,207 | (15,669) |
Non-control/Non-affiliate Investments | |||
Investment Income: | |||
Total interest income | 78,880 | 66,648 | 68,095 |
Total payment-in-kind interest income | 1,633 | 1,809 | 2,625 |
Total dividend income | 889 | 895 | 1,630 |
Total fee income | 7,525 | 8,174 | 4,372 |
Net realized and unrealized gains (losses) on investments: | |||
Total net realized gain (loss) on investments | 25,754 | 35,163 | (25,623) |
Total net change in unrealized appreciation (depreciation) on investments | $ (16,490) | $ 9,255 | $ 7,909 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance (in Shares) | 24,437,400 | 24,437,400 | 24,463,119 | 24,437,400 | 24,437,400 | 24,463,119 | |||
Beginning balance | $ 487,764,000 | $ 410,760,000 | $ 412,310,000 | $ 487,764,000 | $ 410,760,000 | $ 412,310,000 | |||
Repurchases of common stock under Stock Repurchase Program shares | (25,719) | ||||||||
Repurchases of common stock under Stock Repurchase Program, value | 0 | 0 | $ (268,000) | ||||||
Public offering of common stock, net of expenses | 5,809,000 | ||||||||
Net investment income | $ 12,484,000 | $ 10,338,000 | $ 2,448,000 | $ 11,081,000 | $ 6,038,000 | $ 17,417,000 | 46,549,000 | 25,120,000 | 39,648,000 |
Net realized gain (loss) on investments, net of taxes | 63,794,000 | 53,751,000 | (1,545,000) | ||||||
Net unrealized appreciation (depreciation) on investments | (65,702,000) | 41,496,000 | (6,578,000) | ||||||
Realized losses on extinguishment of debt | (251,000) | (4,263,000) | (299,000) | ||||||
Dividends declared | (49,052,000) | $ (39,100,000) | $ (32,508,000) | ||||||
Deemed distribution of long term capital gains | $ (8,568,000) | ||||||||
Ending balance (in Shares) | 24,727,788 | 24,437,400 | 24,437,400 | 24,727,788 | 24,437,400 | 24,437,400 | |||
Ending balance | $ 480,343,000 | $ 487,764,000 | $ 410,760,000 | $ 480,343,000 | $ 487,764,000 | $ 410,760,000 | |||
Common Stock | |||||||||
Beginning balance (in Shares) | 24,437,400 | 24,437,400 | 24,463,119 | 24,437,400 | 24,437,400 | 24,463,119 | |||
Beginning balance | $ 24,000 | $ 24,000 | $ 24,000 | $ 24,000 | $ 24,000 | $ 24,000 | |||
Repurchases of common stock under Stock Repurchase Program shares | 0 | 0 | (25,719) | ||||||
Repurchases of common stock under Stock Repurchase Program, value | $ (268,000) | ||||||||
Public offering of common stock, net of expenses, shares | 290,388 | 0 | 0 | ||||||
Public offering of common stock, net of expenses | $ 1,000 | ||||||||
Ending balance (in Shares) | 24,727,788 | 24,437,400 | 24,437,400 | 24,727,788 | 24,437,400 | 24,437,400 | |||
Ending balance | $ 25,000 | $ 24,000 | $ 24,000 | $ 25,000 | $ 24,000 | $ 24,000 | |||
Additional Paid-in Capital | |||||||||
Beginning balance | 361,807,000 | 363,982,000 | 366,061,000 | 361,807,000 | 363,982,000 | 366,061,000 | |||
Repurchases of common stock under Stock Repurchase Program, value | (268,000) | ||||||||
Public offering of common stock, net of expenses | 5,808,000 | ||||||||
Deemed distribution of long term capital gains | 32,233,000 | ||||||||
Tax reclassification of stockholders' equity in accordance with generally accepted accounting principles | (4,176,000) | (2,175,000) | (1,811,000) | ||||||
Ending balance | 395,672,000 | 361,807,000 | 363,982,000 | 395,672,000 | 361,807,000 | 363,982,000 | |||
Total Distributable Earnings | |||||||||
Beginning balance | $ 125,933,000 | $ 46,754,000 | $ 46,225,000 | 125,933,000 | 46,754,000 | 46,225,000 | |||
Net investment income | 46,549,000 | 25,120,000 | 39,648,000 | ||||||
Net realized gain (loss) on investments, net of taxes | 63,794,000 | 53,751,000 | (1,545,000) | ||||||
Net unrealized appreciation (depreciation) on investments | (65,702,000) | 41,496,000 | (6,578,000) | ||||||
Realized losses on extinguishment of debt | (251,000) | (4,263,000) | (299,000) | ||||||
Dividends declared | (49,052,000) | (39,100,000) | (32,508,000) | ||||||
Deemed distribution of long term capital gains | (40,801,000) | ||||||||
Tax reclassification of stockholders' equity in accordance with generally accepted accounting principles | 4,176,000 | 2,175,000 | 1,811,000 | ||||||
Ending balance | $ 84,646,000 | $ 125,933,000 | $ 46,754,000 | $ 84,646,000 | $ 125,933,000 | $ 46,754,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net increase (decrease) in net assets resulting from operations | $ 35,822 | $ 116,104 | $ 31,226 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities: | |||
Net change in unrealized (appreciation) depreciation on investments | 65,702 | (41,496) | 6,578 |
Net realized (gain) loss on investments | (65,635) | (55,808) | 968 |
Interest and dividend income paid-in-kind | (1,663) | (4,399) | (4,660) |
Accretion of original issue discount | (242) | (755) | (297) |
Accretion of loan origination fees | (1,625) | (2,512) | (1,344) |
Purchase of investments | (333,846) | (346,737) | (189,996) |
Proceeds from sales and repayments of investments | 193,980 | 472,782 | 210,774 |
Proceeds from loan origination fees | 2,124 | 2,670 | 2,027 |
Realized losses on extinguishment of debt | 251 | 4,263 | 299 |
Amortization of deferred financing costs | 2,104 | 2,215 | 2,271 |
Amortization of deferred equity financing costs | 3 | ||
Changes in operating assets and liabilities: | |||
Interest receivable | (3,595) | (683) | (1,217) |
Prepaid expenses and other assets | (1,045) | 602 | 130 |
Accrued interest and fees payable | 79 | 1,168 | (5) |
Base management fee payable, net of base management fee waiver - due to affiliate | 634 | (109) | (90) |
Income incentive fee payable - due to affiliate | 413 | 12 | 1,113 |
Capital gains incentive fee (reversal) - due to (from) affiliate | (6,568) | 18,196 | (1,684) |
Administration fee payable and other - due to affiliate | (92) | 92 | 89 |
Taxes payable | 7,527 | 2,135 | (272) |
Accounts payable and other liabilities | 135 | 161 | 52 |
Net cash provided by (used for) operating activities | (105,537) | 167,901 | 55,962 |
Cash Flows from Financing Activities: | |||
Proceeds from common stock offerings, net of expenses | 5,809 | ||
Proceeds received from SBA debentures | 76,000 | 23,500 | 6,000 |
Repayments of SBA debentures | (30,000) | (63,500) | (16,500) |
Proceeds received from issuance of Notes | 125,000 | 125,000 | |
Principal payments on Notes | (182,250) | ||
Proceeds received from (repayments of) borrowings under Credit Facility, net | (25,000) | ||
Proceeds received from (repayments of) Secured Borrowings, net | (757) | 17,637 | |
Payment of deferred financing costs | (3,530) | (4,079) | (3,390) |
Dividends paid to stockholders, including expenses | (49,052) | (39,100) | (32,508) |
Repurchases of common stock under Stock Repurchase Program | (268) | ||
Net cash provided by (used for) financing activities | (1,530) | (122,792) | 53,334 |
Net increase (decrease) in cash and cash equivalents | (107,067) | 45,109 | 109,296 |
Beginning of period | 169,417 | 124,308 | 15,012 |
End of period | 62,350 | 169,417 | 124,308 |
Supplemental information and non-cash activities: | |||
Cash payments for interest | 16,482 | 15,781 | 17,412 |
Cash payments for taxes, net of tax refunds received | $ 4,294 | $ 431 | $ 1,711 |
Consolidated Schedule of Invest
Consolidated Schedule of Investments - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Cost | $ 828,693 | $ 621,786 | |||
Fair Value | $ 860,329 | $ 719,124 | |||
Percent of Net Assets | 179.10% | 147.40% | |||
Cost | [1] | $ 889,769 | |||
Fair Value | [1],[2] | $ 921,405 | |||
Percent of Net Assets | [1] | 192% | |||
Total Investments | |||||
Cost | $ 828,693 | [1] | $ 621,786 | [3],[4],[5] | |
Fair Value | $ 860,329 | [1],[2] | $ 719,124 | [3],[4],[5],[6] | |
Percent of Net Assets | 179% | [1] | 147% | [3],[4],[5] | |
Money Market Funds | |||||
Cost | [1] | $ 61,076 | |||
Fair Value | [1],[2] | $ 61,076 | |||
Percentage of Net Assets | [1] | 13% | |||
Money Market Funds | Goldman Sachs Financial Square Treasury Obligation Institution CUSIP (38141W323) | |||||
Cost | [1],[7] | $ 61,076 | |||
Fair Value | [1],[2],[7] | $ 61,076 | |||
Percentage of Net Assets | [1],[7] | 13% | |||
Control Investments | |||||
Cost | $ 17,915 | [1] | $ 6,833 | [3],[4],[5] | |
Fair Value | [3],[4],[5],[6] | $ 2,151 | |||
Percent of Net Assets | 0% | [1] | 0% | [3],[4],[5] | |
Control Investments | Hilco Plastics Holdings, LLC (dba Hilco Technologies) | Component Manufacturing | Common Equity (Units N/A) | |||||
Investment Date | [3],[4],[5],[8],[9],[10] | Apr. 06, 2021 | |||
Percent of Net Assets | [3],[4],[5],[8],[10] | 0% | |||
Control Investments | Mesa Line Services, LLC | Utilities: Services | Common Equity (10 shares) | |||||
Investment Date | [3],[4],[5],[9],[10],[11] | Apr. 22, 2021 | |||
Fair Value | [3],[4],[5],[6],[10],[11] | $ 2,151 | |||
Percent of Net Assets | [3],[4],[5],[10],[11] | 0% | |||
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | |||||
Cost | $ 6,833 | [1] | $ 6,833 | [3],[4],[5] | |
Percent of Net Assets | 0% | [1] | 0% | [3],[4],[5] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Second Lien Debt | |||||
Investment interest rate, Cash | 10% | [1],[12],[13],[14],[15] | 10% | [3],[4],[5],[10],[16],[17] | |
Investment interest rate, PIK | 3% | [1],[12],[13],[14],[15] | 3% | [3],[4],[5],[10],[16],[17] | |
Investment Date | Jul. 03, 2014 | [1],[2],[12],[13],[14] | Jul. 03, 2014 | [3],[4],[5],[9],[10],[11],[16] | |
Maturity | Aug. 30, 2024 | [1],[12],[13],[14] | Aug. 30, 2024 | [3],[4],[5],[10],[11],[16] | |
Principal Amount | $ 5,226 | [1],[12],[13],[14] | $ 5,226 | [3],[4],[5],[10],[11],[16] | |
Cost | $ 5,223 | [1],[12],[13],[14] | $ 5,223 | [3],[4],[5],[10],[11],[16] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (2,522 units) | |||||
Investment Date | Jul. 03, 2014 | [1],[2],[12],[13],[18] | Jul. 03, 2014 | [3],[4],[5],[9],[10],[11],[19] | |
Cost | $ 586 | [1],[12],[13],[18] | $ 586 | [3],[4],[5],[10],[11],[19] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (425,508 units) | |||||
Investment Date | Aug. 30, 2019 | [1],[2],[12],[13] | Aug. 30, 2019 | [3],[4],[5],[9],[10],[11] | |
Cost | $ 1 | [1],[12],[13] | $ 1 | [3],[4],[5],[10],[11] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (1,022,813 units) | |||||
Investment Date | Jul. 01, 2020 | [1],[2],[12],[13],[18] | Jul. 01, 2020 | [3],[4],[5],[9],[10],[11],[19] | |
Cost | $ 1,023 | [1],[12],[13],[18] | $ 1,023 | [3],[4],[5],[10],[11],[19] | |
Control Investments | EBL, LLC (EbLens) | Retail | |||||
Cost | [1] | $ 11,082 | |||
Percent of Net Assets | [1] | 0% | |||
Control Investments | EBL, LLC (EbLens) | Retail | Second Lien Debt | |||||
Investment interest rate, Cash | [1],[13],[14],[15],[20] | 0% | |||
Investment interest rate, PIK | [1],[13],[14],[15],[20] | 13% | |||
Investment Date | [1],[2],[13],[14],[20] | Oct. 03, 2022 | |||
Maturity | [1],[13],[14],[20] | Oct. 03, 2025 | |||
Principal Amount | [1],[13],[14],[20] | $ 9,350 | |||
Cost | [1],[13],[14],[20] | $ 9,332 | |||
Control Investments | EBL, LLC (EbLens) | Retail | Common Equity (75,000 units) | |||||
Investment Date | [1],[2],[13],[20] | Jul. 13, 2017 | |||
Cost | [1],[13],[20] | $ 750 | |||
Control Investments | EBL, LLC (EbLens) | Retail | Common Equity (375 units) ($375 unfunded commitment) | |||||
Investment Date | [1],[2],[13],[20] | Oct. 03, 2022 | |||
Cost | [1],[13],[20] | $ 1,000 | |||
Affiliate Investments | |||||
Cost | 55,804 | [1] | 55,519 | [3],[4],[5],[8] | |
Fair Value | $ 101,590 | [1] | $ 137,284 | [3],[4],[5],[6],[8] | |
Percent of Net Assets | 21% | [1] | 28% | [3],[4],[5],[8] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | |||||
Cost | $ 22,405 | [1],[21] | $ 22,405 | [3],[4],[5],[8],[22] | |
Fair Value | $ 23,168 | [1],[21],[23] | $ 22,405 | [3],[4],[5],[6],[8],[22] | |
Percent of Net Assets | 4% | [1],[21] | 4% | [3],[4],[5],[8],[22] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Subordinated Debt | |||||
Investment interest rate, Cash | 10% | [1],[13],[15],[21],[24] | 5% | [3],[4],[5],[8],[11],[17],[22] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[21],[24] | 5% | [3],[4],[5],[8],[11],[17],[22] | |
Investment Date | Dec. 31, 2021 | [1],[2],[13],[21],[24] | Dec. 31, 2021 | [3],[4],[5],[8],[9],[11],[22] | |
Maturity | Dec. 31, 2027 | [1],[13],[21],[24] | Dec. 31, 2027 | [3],[4],[5],[8],[11],[22] | |
Principal Amount | $ 9,602 | [1],[13],[21],[24] | $ 9,602 | [3],[4],[5],[8],[11],[22] | |
Cost | 9,602 | [1],[13],[21],[24] | 9,602 | [3],[4],[5],[8],[11],[22] | |
Fair Value | $ 9,602 | [1],[13],[21],[23],[24] | $ 9,602 | [3],[4],[5],[6],[8],[11],[22] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (5,690 units) | |||||
Investment Date | Dec. 31, 2021 | [1],[2],[13],[18],[21],[24] | Dec. 31, 2021 | [3],[4],[5],[8],[9],[11],[22] | |
Cost | $ 5,690 | [1],[13],[18],[21],[24] | $ 5,690 | [3],[4],[5],[8],[11],[22] | |
Fair Value | $ 5,897 | [1],[13],[18],[21],[23],[24] | $ 5,690 | [3],[4],[5],[6],[8],[11],[22] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (7,113 units) | |||||
Investment Date | Dec. 31, 2021 | [1],[2],[13],[18],[21],[24] | Dec. 31, 2021 | [3],[4],[5],[8],[9],[11],[22] | |
Cost | $ 7,113 | [1],[13],[18],[21],[24] | $ 7,113 | [3],[4],[5],[8],[11],[22] | |
Fair Value | $ 7,669 | [1],[13],[18],[21],[23],[24] | $ 7,113 | [3],[4],[5],[6],[8],[11],[22] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (2,012 units) | |||||
Investment Date | Dec. 31, 2021 | [1],[2],[13],[18],[21],[24] | Dec. 31, 2021 | [3],[4],[5],[8],[9],[11],[22] | |
Affiliate Investments | FAR Research Inc. | Specialty Chemicals | Common Equity (1,396 units) | |||||
Investment Date | [3],[4],[5],[8],[9],[10] | Mar. 31, 2014 | |||
Fair Value | [3],[4],[5],[6],[8],[10] | $ 28 | |||
Percent of Net Assets | [3],[4],[5],[8],[10] | 0% | |||
Affiliate Investments | Medsurant Holdings, LLC | Healthcare Services | |||||
Cost | $ 2,974 | [1] | $ 2,974 | [3],[4],[5],[8] | |
Fair Value | $ 2,540 | [1],[13],[23],[24] | $ 3,662 | [3],[4],[5],[6],[8] | |
Percent of Net Assets | 1% | [1] | 1% | [3],[4],[5],[8] | |
Affiliate Investments | Medsurant Holdings, LLC | Healthcare Services | Preferred Equity (84,997 units) | |||||
Investment Date | Apr. 12, 2011 | [1],[2],[13],[18],[24] | Apr. 12, 2011 | [3],[4],[5],[8],[9],[11],[19] | |
Cost | $ 716 | [1],[13],[18],[24] | $ 716 | [3],[4],[5],[8],[11],[19] | |
Fair Value | $ 591 | [1],[13],[18],[23],[24] | $ 833 | [3],[4],[5],[6],[8],[11],[19],[25] | |
Affiliate Investments | Medsurant Holdings, LLC | Healthcare Services | Warrant (252,588 units) | |||||
Investment Date | Apr. 12, 2011 | [1],[2],[13],[18],[24],[26] | Apr. 12, 2011 | [3],[4],[5],[8],[9],[11],[19],[25] | |
Cost | $ 2,258 | [1],[13],[18],[24],[26] | $ 2,258 | [3],[4],[5],[8],[11],[19],[25] | |
Fair Value | 1,949 | [1],[13],[18],[23],[24],[26] | 2,829 | [3],[4],[5],[6],[8],[11],[19] | |
Affiliate Investments | Mirage Trailers LLC | Utility Equipment Manufacturing | |||||
Cost | [3],[4],[5],[8] | 8,981 | |||
Fair Value | [3],[4],[5],[6],[8] | $ 10,675 | |||
Percent of Net Assets | [3],[4],[5],[8] | 2% | |||
Affiliate Investments | Mirage Trailers LLC | Utility Equipment Manufacturing | Second Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[8],[27],[28] | (1.00%) | |||
Investment interest rate, Cash | [3],[4],[5],[8],[17],[27] | 11% | |||
Investment interest rate, PIK | [3],[4],[5],[8],[17],[27] | 5% | |||
Investment Date | [3],[4],[5],[8],[9],[27] | Nov. 25, 2015 | |||
Maturity | [3],[4],[5],[8],[27] | Apr. 30, 2022 | |||
Principal Amount | [3],[4],[5],[8],[27] | $ 6,705 | |||
Cost | [3],[4],[5],[8],[27] | 6,793 | |||
Fair Value | [3],[4],[5],[6],[8],[27] | $ 6,705 | |||
Affiliate Investments | Mirage Trailers LLC | Utility Equipment Manufacturing | Second Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[8],[27],[28] | 10% | |||
Affiliate Investments | Mirage Trailers LLC | Utility Equipment Manufacturing | Common Equity (2,500,000 shares) | |||||
Investment Date | [3],[4],[5],[8],[9] | Nov. 25, 2015 | |||
Cost | [3],[4],[5],[8] | $ 2,188 | |||
Fair Value | [3],[4],[5],[6],[8] | $ 3,970 | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | |||||
Cost | [1] | 10,209 | |||
Fair Value | [1],[13],[23],[24] | $ 51,992 | |||
Percent of Net Assets | [1] | 11% | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[13],[15],[24] | 10% | |||
Investment interest rate, PIK | [1],[13],[15],[24] | 0% | |||
Investment Date | [1],[2],[13],[24] | Aug. 02, 2022 | |||
Maturity | [1],[13],[24] | Aug. 02, 2027 | |||
Principal Amount | [1],[13],[24] | $ 10,000 | |||
Cost | [1],[13],[24] | 9,954 | |||
Fair Value | [1],[13],[23],[24] | $ 9,954 | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | Common Equity (4,250 units) | |||||
Investment Date | [3],[4],[5],[8],[9],[11] | Mar. 29, 2013 | |||
Cost | [3],[4],[5],[8],[11] | $ 425 | |||
Fair Value | [3],[4],[5],[6],[8],[11] | $ 57,639 | |||
Percent of Net Assets | [3],[4],[5],[8],[11] | 12% | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | Common Equity (2,550 units) | |||||
Investment Date | [1],[2],[13],[24] | Mar. 29, 2013 | |||
Cost | [1],[13],[24] | $ 255 | |||
Fair Value | [1],[13],[23],[24] | 42,038 | |||
Affiliate Investments | Pinnergy, Ltd. | Oil & Gas Services | Common Equity - Class A-2 (42,500 units) | |||||
Investment Date | [3],[4],[5],[8],[9],[11] | Oct. 13, 2016 | |||
Cost | [3],[4],[5],[8],[11] | $ 3,000 | |||
Fair Value | [3],[4],[5],[6],[8],[11] | $ 21,178 | |||
Percent of Net Assets | [3],[4],[5],[8],[11] | 4% | |||
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | |||||
Cost | 19,216 | [1] | $ 16,734 | [3],[4],[5],[8] | |
Fair Value | $ 19,118 | [1] | $ 18,359 | [3],[4],[5],[6],[8] | |
Percent of Net Assets | 4% | [1] | 4% | [3],[4],[5],[8] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[29],[30],[31] | (1.00%) | [3],[4],[5],[8],[27],[28],[32] | |
Investment interest rate, Cash | 10.23% | [1],[15],[29],[31] | 6.50% | [3],[4],[5],[8],[17],[27],[32] | |
Investment interest rate, PIK | 0% | [1],[15],[29],[31] | 0% | [3],[4],[5],[8],[17],[27],[32] | |
Investment Date | Feb. 12, 2021 | [1],[29],[31] | Feb. 12, 2021 | [3],[4],[5],[8],[9],[27],[32] | |
Maturity | Feb. 11, 2026 | [1],[29],[31] | Feb. 11, 2026 | [3],[4],[5],[8],[27],[32] | |
Principal Amount | $ 15,000 | [1],[29],[31] | $ 13,000 | [3],[4],[5],[8],[27],[32] | |
Cost | 14,931 | [1],[29],[31] | 12,921 | [3],[4],[5],[8],[27],[32] | |
Fair Value | $ 14,999 | [1],[29],[31] | $ 13,000 | [3],[4],[5],[6],[8],[27],[32] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | 5.50% | [1],[29],[30],[31] | 5.50% | [3],[4],[5],[8],[27],[28],[32] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (41,290 units) | |||||
Investment Date | Dec. 16, 2022 | [1],[13] | Feb. 12, 2021 | [3],[4],[5],[8],[9],[11] | |
Cost | $ 2,609 | [1],[13] | $ 2,609 | [3],[4],[5],[8],[11] | |
Fair Value | $ 2,443 | [1],[13] | $ 4,129 | [3],[4],[5],[6],[8],[11] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (12,035 units) | |||||
Investment Date | Aug. 25, 2021 | [1],[13] | Aug. 25, 2021 | [3],[4],[5],[8],[9],[11] | |
Cost | $ 1,204 | [1],[13] | $ 1,204 | [3],[4],[5],[8],[11] | |
Fair Value | $ 1,204 | [1],[13] | $ 1,230 | [3],[4],[5],[6],[8],[11] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (4,921 units) | |||||
Investment Date | [1],[13] | Sep. 16, 2022 | |||
Cost | [1],[13] | $ 472 | |||
Fair Value | [1],[13] | $ 472 | |||
Affiliate Investments | Steward Holding LLC (dba Steward Advanced Materials) | Aerospace & Defense Manufacturing | Common Equity (1,000,000 units) | |||||
Investment Date | Nov. 12, 2015 | [1],[2] | Nov. 12, 2015 | [3],[4],[5],[8],[9] | |
Cost | $ 1,000 | [1] | $ 1,000 | [3],[4],[5],[8] | |
Fair Value | $ 4,772 | [1] | $ 3,338 | [3],[4],[5],[6],[8] | |
Percent of Net Assets | 1% | [1] | 1% | [3],[4],[5],[8] | |
Non-control/Non-affiliate Investments | |||||
Cost | $ 754,974 | [1] | $ 559,434 | [3],[4],[5] | |
Fair Value | $ 758,739 | [1],[2] | $ 579,689 | [3],[4],[5],[6] | |
Percent of Net Assets | 158% | [1] | 119% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | |||||
Cost | $ 16,053 | [1] | $ 17,816 | [3],[4],[5] | |
Fair Value | $ 15,593 | [1],[23] | $ 17,700 | [3],[4],[5],[6] | |
Percent of Net Assets | 3% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[30],[31],[33] | (0.50%) | [3],[4],[5],[27],[28] | |
Investment interest rate, Cash | 11.48% | [1],[15],[31],[33] | 7.25% | [3],[4],[5],[17],[27] | |
Investment interest rate, PIK | 0% | [1],[15],[31],[33] | 0% | [3],[4],[5],[17],[27] | |
Investment Date | Jun. 25, 2021 | [1],[31],[33] | Jun. 25, 2021 | [3],[4],[5],[9],[27] | |
Maturity | Jun. 25, 2026 | [1],[31],[33] | Jun. 25, 2026 | [3],[4],[5],[27] | |
Principal Amount | $ 11,558 | [1],[31],[33] | $ 12,919 | [3],[4],[5],[27] | |
Cost | 11,497 | [1],[31],[33] | 12,841 | [3],[4],[5],[27] | |
Fair Value | $ 11,560 | [1],[31],[33] | $ 12,919 | [3],[4],[5],[6],[27] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 6.75% | [1],[30],[31],[33] | 6.75% | [3],[4],[5],[27],[28] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | Common Equity (1,000,000 units) | |||||
Investment Date | Jun. 25, 2021 | [1],[2] | Jun. 25, 2021 | [3],[4],[5],[9] | |
Cost | $ 1,000 | [1] | $ 1,000 | [3],[4],[5] | |
Fair Value | $ 477 | [1],[23] | $ 806 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30],[34] | (0.50%) | [3],[4],[5],[11],[28],[35] | |
Investment interest rate, Cash | 11.48% | [1],[13],[15],[34] | 7.25% | [3],[4],[5],[11],[17],[35] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[34] | 0% | [3],[4],[5],[11],[17],[35] | |
Investment Date | Jul. 30, 2021 | [1],[13],[34] | Jul. 30, 2021 | [3],[4],[5],[9],[11],[35] | |
Maturity | Jun. 25, 2026 | [1],[13],[34] | Jun. 25, 2026 | [3],[4],[5],[11],[35] | |
Principal Amount | $ 3,556 | [1],[13],[34] | $ 3,975 | [3],[4],[5],[11],[35] | |
Cost | 3,556 | [1],[13],[34] | 3,975 | [3],[4],[5],[11],[35] | |
Fair Value | $ 3,556 | [1],[13],[34] | $ 3,975 | [3],[4],[5],[6],[11],[35] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 6.75% | [1],[13],[30],[34] | 6.75% | [3],[4],[5],[11],[28],[35] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | |||||
Cost | $ 18,526 | [1] | $ 18,421 | [3],[4],[5] | |
Fair Value | $ 18,706 | [1],[23] | $ 18,421 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30] | (0.50%) | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 12.30% | [1],[13],[15] | 8.25% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Oct. 06, 2021 | [1],[13] | Oct. 06, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Oct. 06, 2026 | [1],[13] | Oct. 06, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 5,500 | [1],[13] | $ 5,500 | [3],[4],[5],[11] | |
Cost | 5,488 | [1],[13] | 5,485 | [3],[4],[5],[11] | |
Fair Value | $ 5,500 | [1],[13] | $ 5,485 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 7.75% | |||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 7.75% | |||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30] | (0.50%) | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 12.30% | [1],[13],[15] | 8.25% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Oct. 06, 2021 | [1],[13] | Oct. 06, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Oct. 06, 2026 | [1],[13] | Oct. 06, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 12,500 | [1],[13] | $ 12,500 | [3],[4],[5],[11] | |
Cost | 12,450 | [1],[13] | 12,436 | [3],[4],[5],[11] | |
Fair Value | $ 12,500 | [1],[13] | $ 12,436 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 7.75% | |||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 7.75% | |||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[24],[30] | 0.50% | |||
Investment interest rate, Cash | [1],[13],[15],[24] | 12.30% | |||
Investment interest rate, PIK | [1],[13],[15],[24] | 0% | |||
Investment Date | Oct. 06, 2021 | [1],[13],[24] | Oct. 06, 2021 | [3],[4],[5],[9],[11],[22] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[24],[30] | 7.50% | |||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Common Equity (500,000 shares) | |||||
Investment Date | Oct. 06, 2021 | [1],[13] | Oct. 06, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 371 | [1],[13] | $ 371 | [3],[4],[5],[11] | |
Fair Value | $ 433 | [1],[13] | $ 371 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Warrant (150,000 shares) | |||||
Investment Date | Oct. 06, 2021 | [1],[13],[26] | Oct. 06, 2021 | [3],[4],[5],[9],[11],[25] | |
Cost | $ 129 | [1],[13],[26] | $ 129 | [3],[4],[5],[11],[25] | |
Fair Value | $ 130 | [1],[13],[26] | 129 | [3],[4],[5],[6],[11],[25] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Preferred Equity (77,016 shares) | |||||
Investment Date | [1],[13] | Sep. 26, 2022 | |||
Cost | [1],[13] | $ 88 | |||
Fair Value | [1],[13] | 143 | |||
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | |||||
Cost | 14,777 | [1] | 14,665 | [3],[4],[5] | |
Fair Value | $ 15,029 | [1],[23] | $ 14,992 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1] | 3% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[30],[36] | (0.50%) | [3],[4],[5],[28],[37] | |
Investment interest rate, Cash | 10.63% | [1],[15],[36] | 6.38% | [3],[4],[5],[17],[37] | |
Investment interest rate, PIK | 0% | [1],[15],[36] | 0% | [3],[4],[5],[17],[37] | |
Investment Date | Jun. 11, 2021 | [1],[2],[36] | Jun. 11, 2021 | [3],[4],[5],[9],[37] | |
Maturity | Jun. 11, 2026 | [1],[36] | Jun. 11, 2026 | [3],[4],[5],[37] | |
Principal Amount | $ 14,250 | [1],[36] | $ 14,250 | [3],[4],[5],[37] | |
Cost | 14,184 | [1],[36] | 14,165 | [3],[4],[5],[37] | |
Fair Value | $ 14,250 | [1],[23],[36] | $ 14,250 | [3],[4],[5],[6],[37] | |
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | 5.88% | [1],[30],[36] | 5.88% | [3],[4],[5],[28],[37] | |
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | Common Equity (500 units) | |||||
Investment Date | [3],[4],[5],[9] | Jun. 11, 2021 | |||
Cost | [3],[4],[5] | $ 500 | |||
Fair Value | [3],[4],[5],[6] | 742 | |||
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | Common Equity (549 units) | |||||
Investment Date | [1],[2] | Jun. 11, 2021 | |||
Cost | [1] | $ 593 | |||
Fair Value | [1],[23] | 779 | |||
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | |||||
Cost | 10,940 | [1] | 10,848 | [3],[4],[5] | |
Fair Value | $ 8,297 | [1],[23] | $ 8,548 | [3],[4],[5],[6] | |
Percent of Net Assets | 2% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | Second Lien Debt | |||||
Investment interest rate, Cash | 12.50% | [1],[15] | 10.50% | [3],[4],[5],[17] | |
Investment interest rate, PIK | 2.25% | [1],[15] | 1.75% | [3],[4],[5],[17] | |
Investment Date | Mar. 02, 2020 | [1],[2] | Mar. 02, 2020 | [3],[4],[5],[9] | |
Maturity | Sep. 02, 2026 | [1] | Sep. 02, 2026 | [3],[4],[5] | |
Principal Amount | $ 10,345 | [1] | $ 10,260 | [3],[4],[5] | |
Cost | 10,281 | [1] | 10,189 | [3],[4],[5] | |
Fair Value | $ 8,144 | [1],[23] | $ 8,317 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | Common Equity (570,636 units) | |||||
Investment Date | Jul. 21, 2017 | [1],[2],[13],[18] | Jul. 21, 2017 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 637 | [1],[13],[18] | $ 637 | [3],[4],[5],[11],[19] | |
Fair Value | $ 98 | [1],[13],[18] | $ 166 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | Common Equity (39,443 units) | |||||
Investment Date | Nov. 24, 2021 | [1],[2],[13],[18] | Nov. 24, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 22 | [1],[13],[18] | $ 22 | [3],[4],[5],[11],[19] | |
Fair Value | 55 | [1],[13],[18] | 65 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | |||||
Cost | 21,677 | [1] | 21,629 | [3],[4],[5] | |
Fair Value | $ 21,917 | [1],[23] | $ 21,462 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[13],[30],[38] | (1.00%) | [3],[4],[5],[11],[28],[39] | |
Investment interest rate, Cash | 9.82% | [1],[13],[15],[38] | 7.15% | [3],[4],[5],[11],[17],[39] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[38] | 0% | [3],[4],[5],[11],[17],[39] | |
Investment Date | Jun. 28, 2021 | [1],[2],[13],[38] | Jun. 28, 2021 | [3],[4],[5],[9],[11],[39] | |
Maturity | Jun. 28, 2026 | [1],[13],[38] | Jun. 28, 2026 | [3],[4],[5],[11],[39] | |
Principal Amount | $ 20,500 | [1],[13],[38] | $ 20,500 | [3],[4],[5],[11],[39] | |
Cost | 20,329 | [1],[13],[38] | 20,281 | [3],[4],[5],[11],[39] | |
Fair Value | $ 20,500 | [1],[13],[38] | $ 20,281 | [3],[4],[5],[6],[11],[39] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | LIBOR | |||||
Variable Index Spread | 6.15% | [1],[13],[30],[38] | 6.15% | [3],[4],[5],[11],[28],[39] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[13],[30],[40] | (1.00%) | [3],[4],[5],[11],[28],[41] | |
Investment interest rate, Cash | 7.42% | [1],[13],[15],[40] | 4.75% | [3],[4],[5],[11],[17],[41] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[40] | 0% | [3],[4],[5],[11],[17],[41] | |
Investment Date | Jun. 28, 2021 | [1],[2],[13],[40] | Jun. 28, 2021 | [3],[4],[5],[9],[11],[41] | |
Maturity | Jun. 28, 2026 | [1],[13],[40] | Dec. 31, 2022 | [3],[4],[5],[11],[41] | |
Principal Amount | $ 330 | [1],[13],[40] | $ 330 | [3],[4],[5],[11],[41] | |
Cost | 330 | [1],[13],[40] | 330 | [3],[4],[5],[11],[41] | |
Fair Value | $ 325 | [1],[13],[40] | $ 330 | [3],[4],[5],[6],[11],[41] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | LIBOR | |||||
Variable Index Spread | 3.75% | [1],[13],[30],[40] | 3.75% | [3],[4],[5],[11],[28],[41] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (500 units) | |||||
Investment Date | May 31, 2018 | [1],[2],[13],[18] | May 31, 2018 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 500 | [1],[13],[18] | $ 500 | [3],[4],[5],[11],[19] | |
Fair Value | $ 547 | [1],[13],[18] | $ 439 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (207 units) | |||||
Investment Date | Aug. 06, 2019 | [1],[2],[13],[18] | Aug. 06, 2019 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 250 | [1],[13],[18] | $ 250 | [3],[4],[5],[11],[19] | |
Fair Value | $ 264 | [1],[13],[18] | $ 187 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (141 units) | |||||
Investment Date | Nov. 02, 2020 | [1],[2],[13],[18] | Nov. 02, 2020 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 171 | [1],[13],[18] | $ 171 | [3],[4],[5],[11],[19] | |
Fair Value | $ 180 | [1],[13],[18] | $ 128 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (74 units) | |||||
Investment Date | Dec. 29, 2021 | [1],[2],[13],[18] | Dec. 29, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 97 | [1],[13],[18] | $ 97 | [3],[4],[5],[11],[19] | |
Fair Value | 101 | [1],[13],[18] | 97 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | |||||
Cost | [1] | 10,722 | |||
Fair Value | [1],[23] | $ 10,722 | |||
Percent of Net Assets | [1] | 2% | |||
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[13],[15] | 7% | |||
Investment interest rate, PIK | [1],[13],[15] | 7% | |||
Investment Date | [1],[2],[13] | Jul. 08, 2022 | |||
Maturity | [1],[13] | Jan. 08, 2028 | |||
Principal Amount | [1],[13] | $ 2,069 | |||
Cost | [1],[13] | 2,060 | |||
Fair Value | [1],[13] | $ 2,060 | |||
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | First Lien Debt | |||||
Variable Index Floor | [1],[30],[42] | 1% | |||
Investment interest rate, Cash | [1],[15],[42] | 9.81% | |||
Investment interest rate, PIK | [1],[15],[42] | 0% | |||
Investment Date | [1],[2],[42] | Jul. 08, 2022 | |||
Maturity | [1],[42] | Jul. 08, 2027 | |||
Principal Amount | [1],[42] | $ 7,704 | |||
Cost | [1],[42] | 7,662 | |||
Fair Value | [1],[23],[42] | $ 7,662 | |||
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[42] | 6.25% | |||
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | Common Equity (1,000 units) | |||||
Investment Date | [1],[2],[13],[18] | Jul. 08, 2022 | |||
Cost | [1],[13],[18] | $ 1,000 | |||
Fair Value | [1],[13],[18],[23] | 1,000 | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | |||||
Cost | [1] | 10,690 | |||
Fair Value | [1],[23] | $ 10,741 | |||
Percent of Net Assets | [1] | 2% | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[30],[43] | 0.75% | |||
Investment interest rate, Cash | [1],[15],[43] | 10.31% | |||
Investment interest rate, PIK | [1],[15],[43] | 0% | |||
Investment Date | [1],[2],[43] | Feb. 01, 2022 | |||
Maturity | [1],[43] | Feb. 01, 2027 | |||
Principal Amount | [1],[43] | $ 10,000 | |||
Cost | [1],[43] | 9,940 | |||
Fair Value | [1],[23],[43] | $ 10,000 | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[43] | 6.50% | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | Common Equity (750 units) | |||||
Investment Date | [1],[2],[13],[18] | Feb. 01, 2022 | |||
Cost | [1],[13],[18] | $ 750 | |||
Fair Value | [1],[13],[18],[23] | 741 | |||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | |||||
Cost | [1] | 16,090 | |||
Fair Value | [1],[23] | $ 16,090 | |||
Percent of Net Assets | [1] | 4% | |||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | First Lien Debt | |||||
Variable Index Floor | [1],[30],[44] | 2% | |||
Investment interest rate, Cash | [1],[15],[44] | 11.21% | |||
Investment interest rate, PIK | [1],[15],[44] | 0% | |||
Investment Date | [1],[2],[44] | Nov. 08, 2022 | |||
Maturity | [1],[44] | Nov. 08, 2027 | |||
Principal Amount | [1],[44] | $ 15,000 | |||
Cost | [1],[44] | 14,890 | |||
Fair Value | [1],[23],[44] | $ 14,890 | |||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[44] | 7% | |||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | Common Equity (1,200 units) | |||||
Investment Date | [1],[2],[13],[18] | Nov. 08, 2022 | |||
Cost | [1],[13],[18] | $ 1,200 | |||
Fair Value | [1],[13],[18],[23] | 1,200 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | |||||
Cost | 20,167 | [1] | 12,561 | [3],[4],[5] | |
Fair Value | $ 20,834 | [1],[23] | $ 12,805 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1] | 3% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 1.50% | [1],[30],[31],[45] | (1.50%) | [3],[4],[5],[27],[28],[46] | |
Investment interest rate, Cash | 10.07% | [1],[15],[31],[45] | 7.75% | [3],[4],[5],[17],[27],[46] | |
Investment interest rate, PIK | 0% | [1],[15],[31],[45] | 0% | [3],[4],[5],[17],[27],[46] | |
Investment Date | Nov. 06, 2020 | [1],[2],[31],[45] | Nov. 06, 2020 | [3],[4],[5],[9],[27],[46] | |
Maturity | Nov. 06, 2025 | [1],[31],[45] | Nov. 06, 2025 | [3],[4],[5],[27],[46] | |
Principal Amount | $ 19,005 | [1],[31],[45] | $ 11,500 | [3],[4],[5],[27],[46] | |
Cost | 18,916 | [1],[31],[45] | 11,441 | [3],[4],[5],[27],[46] | |
Fair Value | $ 19,005 | [1],[23],[31],[45] | $ 11,500 | [3],[4],[5],[6],[27],[46] | |
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[27],[28],[46] | 6.25% | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[31],[45] | 6.25% | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Preferred Equity (1,104,539 units) | |||||
Investment Date | [3],[4],[5],[9] | Nov. 06, 2020 | |||
Cost | [3],[4],[5] | $ 1,105 | |||
Fair Value | [3],[4],[5],[6] | $ 1,194 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Preferred Equity (1,184,711 units) | |||||
Investment Date | [1],[2] | Nov. 06, 2020 | |||
Cost | [1] | $ 1,185 | |||
Fair Value | [1],[23] | $ 1,364 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Common Equity (22 units) | |||||
Investment Date | [3],[4],[5],[9] | Nov. 06, 2020 | |||
Cost | [3],[4],[5] | $ 15 | |||
Fair Value | [3],[4],[5],[6] | $ 111 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Common Equity (24 units) | |||||
Investment Date | [1],[2] | Nov. 06, 2020 | |||
Cost | [1] | $ 66 | |||
Fair Value | [1],[23] | 465 | |||
Non-control/Non-affiliate Investments | Argo Turboserve Corporation | Business Services | Second Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[11],[28] | (2.00%) | |||
Investment interest rate, Cash | [3],[4],[5],[11],[17] | 14% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17] | 0% | |||
Investment Date | [3],[4],[5],[9],[11] | Dec. 26, 2018 | |||
Maturity | [3],[4],[5],[11] | Jun. 28, 2023 | |||
Principal Amount | [3],[4],[5],[11] | $ 11,906 | |||
Cost | [3],[4],[5],[11] | 11,881 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 11,906 | |||
Percent of Net Assets | [3],[4],[5],[11] | 2% | |||
Non-control/Non-affiliate Investments | Argo Turboserve Corporation | Business Services | Second Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 12% | |||
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | |||||
Cost | 8,609 | [1] | $ 8,457 | [3],[4],[5] | |
Fair Value | $ 8,639 | [1],[23] | $ 8,457 | [3],[4],[5],[6] | |
Percent of Net Assets | 2% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | Subordinated Debt | |||||
Investment interest rate, Cash | 0% | [1],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 12.75% | [1],[15] | 12.75% | [3],[4],[5],[11],[17] | |
Investment Date | Oct. 01, 2021 | [1],[2] | Oct. 01, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Dec. 31, 2026 | [1] | Dec. 31, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 587 | [1] | $ 516 | [3],[4],[5],[11] | |
Cost | 584 | [1] | 512 | [3],[4],[5],[11] | |
Fair Value | $ 587 | [1],[23] | $ 512 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 3.25% | [1],[30],[47] | (3.25%) | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 13% | [1],[15],[47] | 8.75% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0.85% | [1],[15],[47] | 0.85% | [3],[4],[5],[11],[17] | |
Investment Date | Oct. 01, 2021 | [1],[2],[47] | Oct. 01, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Oct. 01, 2026 | [1],[47] | Oct. 01, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 7,581 | [1],[47] | $ 7,516 | [3],[4],[5],[11] | |
Cost | 7,525 | [1],[47] | 7,445 | [3],[4],[5],[11] | |
Fair Value | $ 7,581 | [1],[23],[47] | $ 7,445 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | First Lien Debt | Prime | |||||
Variable Index Spread | 5.50% | [1],[30],[47] | 5.50% | [3],[4],[5],[11],[28] | |
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | Common Equity (500 units) | |||||
Investment Date | Oct. 01, 2021 | [1],[2],[13] | Oct. 01, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 500 | [1],[13] | $ 500 | [3],[4],[5],[11] | |
Fair Value | $ 471 | [1],[13],[23] | $ 500 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | AVC Investors, LLC (dba Auveco) | Specialty Distribution | Common Equity (5,000 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Jan. 03, 2018 | |||
Cost | [3],[4],[5],[11] | $ 382 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 751 | |||
Percent of Net Assets | [3],[4],[5],[11] | 0% | |||
Non-control/Non-affiliate Investments | B&B Roadway and Security Solutions, LLC | Component Manufacturing | Common Equity (50,000 units) | |||||
Investment Date | [3],[4],[5],[9],[10],[11],[19] | Feb. 27, 2018 | |||
Percent of Net Assets | [3],[4],[5],[10],[11],[19] | 0% | |||
Non-control/Non-affiliate Investments | Bandon Fitness (Texas), Inc. | Retail | Common Equity (545,810 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Aug. 09, 2019 | |||
Cost | [3],[4],[5],[11] | $ 931 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 1,533 | |||
Percent of Net Assets | [3],[4],[5],[11] | 0% | |||
Non-control/Non-affiliate Investments | BCM One Group Holdings, Inc | Information Technology Services | Subordinated Debt | |||||
Investment interest rate, Cash | 10.25% | [1],[13],[15] | 10.25% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Nov. 17, 2021 | [1],[2],[13] | Nov. 17, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Nov. 17, 2028 | [1],[13] | Nov. 17, 2028 | [3],[4],[5],[11] | |
Principal Amount | $ 11,333 | [1],[13] | $ 10,000 | [3],[4],[5],[11] | |
Cost | 11,279 | [1],[13] | 9,950 | [3],[4],[5],[11] | |
Fair Value | $ 11,333 | [1],[13] | $ 9,950 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 2% | [1],[13] | 2% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | |||||
Cost | [3],[4],[5] | $ 5,014 | |||
Fair Value | [3],[4],[5],[6] | $ 4,889 | |||
Percent of Net Assets | [3],[4],[5] | 1% | |||
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[11],[28],[48] | (1.00%) | |||
Investment interest rate, Cash | [3],[4],[5],[11],[17],[48] | 7.25% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17],[48] | 0% | |||
Investment Date | [3],[4],[5],[9],[11],[48] | Mar. 12, 2019 | |||
Maturity | [3],[4],[5],[11],[48] | Mar. 12, 2024 | |||
Principal Amount | [3],[4],[5],[11],[48] | $ 4,531 | |||
Cost | [3],[4],[5],[11],[48] | 4,514 | |||
Fair Value | [3],[4],[5],[6],[11],[48] | $ 4,531 | |||
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28],[48] | 6.25% | |||
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | Common Equity (500,000 Units) | |||||
Investment Date | Mar. 12, 2019 | [1],[2],[13],[18] | Mar. 12, 2019 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 484 | [1],[13],[18] | $ 500 | [3],[4],[5],[11],[19] | |
Fair Value | $ 486 | [1],[13],[18] | 358 | [3],[4],[5],[6],[11],[19] | |
Percent of Net Assets | [1],[13],[18] | 0% | |||
Non-control/Non-affiliate Investments | BP Thrift Buyer, LLC (dba myUnique and Ecothrift) | Retail | |||||
Cost | [1] | $ 20,564 | |||
Fair Value | [1],[23] | $ 20,564 | |||
Percent of Net Assets | [1] | 4% | |||
Non-control/Non-affiliate Investments | BP Thrift Buyer, LLC (dba myUnique and Ecothrift) | Retail | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30],[49] | 1.50% | |||
Investment interest rate, Cash | [1],[13],[15],[49] | 9.31% | |||
Investment interest rate, PIK | [1],[13],[15],[49] | 0% | |||
Investment Date | [1],[2],[13],[49] | Sep. 13, 2022 | |||
Maturity | [1],[13],[49] | Sep. 13, 2027 | |||
Principal Amount | [1],[13],[49] | $ 20,000 | |||
Cost | [1],[13],[49] | 19,564 | |||
Fair Value | [1],[13],[49] | $ 19,564 | |||
Non-control/Non-affiliate Investments | BP Thrift Buyer, LLC (dba myUnique and Ecothrift) | Retail | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30],[49] | 5.75% | |||
Non-control/Non-affiliate Investments | BP Thrift Buyer, LLC (dba myUnique and Ecothrift) | Retail | Common Equity (1,000 units) | |||||
Investment Date | [1],[2],[13] | Sep. 13, 2022 | |||
Cost | [1],[13] | $ 1,000 | |||
Fair Value | [1],[13],[23] | 1,000 | |||
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | |||||
Cost | 12,735 | [1] | 14,178 | [3],[4],[5] | |
Fair Value | $ 12,851 | [1],[23] | $ 14,178 | [3],[4],[5],[6] | |
Percent of Net Assets | 3% | [1] | 3% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.75% | [1],[13],[30],[50] | (0.75%) | [3],[4],[5],[11],[28],[51] | |
Investment interest rate, Cash | 10.24% | [1],[13],[15],[50] | 7.50% | [3],[4],[5],[11],[17],[51] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[50] | 0% | [3],[4],[5],[11],[17],[51] | |
Investment Date | Aug. 10, 2021 | [1],[2],[13],[50] | Aug. 10, 2021 | [3],[4],[5],[9],[11],[51] | |
Maturity | Aug. 10, 2026 | [1],[13],[50] | Aug. 10, 2026 | [3],[4],[5],[11],[51] | |
Principal Amount | $ 12,541 | [1],[13],[50] | $ 14,000 | [3],[4],[5],[11],[51] | |
Cost | 12,485 | [1],[13],[50] | 13,928 | [3],[4],[5],[11],[51] | |
Fair Value | $ 12,541 | [1],[13],[23],[50] | $ 13,928 | [3],[4],[5],[6],[11],[51] | |
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 6.50% | [1],[13],[30],[50] | 6.75% | [3],[4],[5],[11],[28],[51] | |
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | Common Equity (495 shares) | |||||
Investment Date | Aug. 10, 2021 | [1],[2],[13] | Aug. 10, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 125 | [1],[13] | $ 125 | [3],[4],[5],[11] | |
Fair Value | $ 33 | [1],[13],[23] | $ 125 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | Preferred Equity (495 shares) | |||||
Investment Date | Aug. 10, 2021 | [1],[2],[13] | Aug. 10, 2021 | [3],[4],[5],[9] | |
Cost | $ 125 | [1],[13] | $ 125 | [3],[4],[5] | |
Fair Value | 277 | [1],[13],[23] | 125 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | |||||
Cost | 617 | [1] | 617 | [3],[4],[5],[52] | |
Fair Value | $ 310 | [1],[23] | $ 357 | [3],[4],[5],[6],[52] | |
Percent of Net Assets | 0% | [1] | 0% | [3],[4],[5],[52] | |
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Common Equity (14,201 units) | |||||
Investment Date | [1],[2],[13] | Nov. 03, 2022 | |||
Cost | [1],[13] | $ 521 | |||
Fair Value | [1],[13],[23] | $ 18 | |||
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Preferred Equity (9,787 Unit) | |||||
Investment Date | Nov. 03, 2022 | [1],[2],[13] | Dec. 06, 2019 | [3],[4],[5],[9],[11],[52],[53] | |
Cost | $ 96 | [1],[13] | $ 96 | [3],[4],[5],[11],[52],[53] | |
Fair Value | 292 | [1],[13],[23] | $ 283 | [3],[4],[5],[6],[11],[52],[53] | |
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Common Equity (521,021 units) | |||||
Investment Date | [3],[4],[5],[9],[11],[52],[53] | Dec. 15, 2015 | |||
Cost | [3],[4],[5],[11],[52],[53] | $ 521 | |||
Fair Value | [3],[4],[5],[6],[11],[52],[53] | 74 | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | |||||
Cost | [1] | 8,460 | |||
Fair Value | [1],[23] | $ 8,500 | |||
Percent of Net Assets | [1] | 2% | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30] | 1% | |||
Investment interest rate, Cash | [1],[13],[15] | 11.06% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Apr. 01, 2022 | |||
Maturity | [1],[13] | Apr. 01, 2027 | |||
Principal Amount | [1],[13] | $ 8,500 | |||
Cost | [1],[13] | 8,460 | |||
Fair Value | [1],[13],[23] | $ 8,500 | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 7.25% | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[24],[30] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[24] | 10.06% | |||
Investment interest rate, PIK | [1],[13],[15],[24] | 0% | |||
Investment Date | [1],[2],[13],[24] | Apr. 01, 2022 | |||
Maturity | [1],[13],[24] | Apr. 01, 2027 | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[24],[30] | 6.25% | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | |||||
Cost | $ 9,169 | [1] | 10,435 | [3],[4],[5] | |
Fair Value | $ 9,203 | [1],[23] | $ 10,514 | [3],[4],[5],[6] | |
Percent of Net Assets | 2% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Variable Index Floor | 2% | [1],[30] | 2% | [3],[4],[5],[28] | |
Investment interest rate, Cash | 17.74% | [1],[15] | 13% | [3],[4],[5],[17] | |
Investment interest rate, PIK | 0% | [1],[15] | 0% | [3],[4],[5],[17] | |
Investment Date | Jan. 31, 2020 | [1],[2] | Jan. 31, 2020 | [3],[4],[5],[9] | |
Maturity | Jan. 31, 2025 | [1] | Jan. 31, 2025 | [3],[4],[5] | |
Principal Amount | $ 4,890 | [1] | $ 7,091 | [3],[4],[5] | |
Cost | 4,866 | [1] | 7,055 | [3],[4],[5] | |
Fair Value | $ 4,890 | [1],[23] | $ 7,119 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | 11% | [1],[30] | 11% | [3],[4],[5],[28] | |
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Variable Index Floor | [1],[30] | 2% | |||
Investment interest rate, Cash | [1],[15] | 18.75% | |||
Investment interest rate, PIK | [1],[15] | 0% | |||
Investment Date | [1],[2] | Dec. 22, 2022 | |||
Maturity | [1] | Feb. 15, 2023 | |||
Principal Amount | [1] | $ 475 | |||
Cost | [1] | 475 | |||
Fair Value | [1],[23] | $ 475 | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | [1],[30] | 11% | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($162 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[30],[54] | 2% | |||
Investment interest rate, Cash | [1],[13],[15],[54] | 16.74% | |||
Investment interest rate, PIK | [1],[13],[15],[54] | 0% | |||
Investment Date | [1],[2],[13],[54] | Jan. 31, 2020 | |||
Maturity | [1],[13],[54] | Jan. 31, 2025 | |||
Principal Amount | [1],[13],[54] | $ 3,838 | |||
Cost | [1],[13],[54] | 3,828 | |||
Fair Value | [1],[13],[23],[54] | $ 3,838 | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($162 unfunded commitment) | LIBOR | |||||
Variable Index Spread | [1],[13],[30],[54] | 10% | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($605 unfunded commitment) | |||||
Variable Index Floor | [3],[4],[5],[11],[28],[55] | 2% | |||
Investment interest rate, Cash | [3],[4],[5],[11],[17],[55] | 15% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17],[55] | 0% | |||
Investment Date | [3],[4],[5],[9],[11],[55] | Jan. 31, 2020 | |||
Maturity | [3],[4],[5],[11],[55] | Jan. 31, 2025 | |||
Principal Amount | [3],[4],[5],[11],[55] | $ 3,395 | |||
Cost | [3],[4],[5],[11],[55] | 3,380 | |||
Fair Value | [3],[4],[5],[6],[11],[55] | $ 3,395 | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($605 unfunded commitment) | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28],[55] | 10% | |||
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | |||||
Cost | [1] | $ 14,434 | |||
Fair Value | [1],[23] | $ 15,029 | |||
Percent of Net Assets | [1] | 3% | |||
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[15],[31] | 10% | |||
Investment interest rate, PIK | [1],[15],[31] | 1% | |||
Investment Date | [1],[2],[31] | Mar. 03, 2022 | |||
Maturity | [1],[31] | Mar. 03, 2028 | |||
Principal Amount | [1],[31] | $ 13,751 | |||
Cost | [1],[31] | 13,634 | |||
Fair Value | [1],[23],[31] | $ 13,751 | |||
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | Common Equity (563 Shares) | |||||
Investment Date | [1],[2],[13] | Mar. 03, 2022 | |||
Cost | [1],[13] | $ 400 | |||
Fair Value | [1],[13],[23] | $ 425 | |||
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | Preferred Equity (563 shares) | |||||
Investment Date | [1],[2],[13] | Mar. 03, 2022 | |||
Cost | [1],[13] | $ 400 | |||
Fair Value | [1],[13],[23] | $ 853 | |||
Non-control/Non-affiliate Investments | Comply365, LLC | Aerospace & Defense Manufacturing | |||||
Cost | [3],[4],[5] | $ 9,447 | |||
Fair Value | [3],[4],[5],[6] | $ 9,903 | |||
Percent of Net Assets | [3],[4],[5] | 2% | |||
Non-control/Non-affiliate Investments | Comply365, LLC | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[28],[56] | 1% | |||
Investment interest rate, Cash | [3],[4],[5],[17],[56] | 9% | |||
Investment interest rate, PIK | [3],[4],[5],[17],[56] | 0% | |||
Investment Date | [3],[4],[5],[9],[56] | Dec. 11, 2020 | |||
Maturity | [3],[4],[5],[56] | Dec. 11, 2025 | |||
Principal Amount | [3],[4],[5],[56] | $ 8,562 | |||
Cost | [3],[4],[5],[56] | 8,447 | |||
Fair Value | [3],[4],[5],[6],[56] | $ 8,562 | |||
Non-control/Non-affiliate Investments | Comply365, LLC | Aerospace & Defense Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[28],[56] | 8% | |||
Non-control/Non-affiliate Investments | Comply365, LLC | Aerospace & Defense Manufacturing | Common Equity (1,000,000 units) | |||||
Investment Date | Dec. 11, 2020 | [1],[2] | Dec. 11, 2020 | [3],[4],[5],[9] | |
Cost | $ 627 | [1] | $ 1,000 | [3],[4],[5] | |
Fair Value | $ 1,143 | [1],[23] | $ 1,341 | [3],[4],[5],[6] | |
Percent of Net Assets | [1] | 0% | |||
Non-control/Non-affiliate Investments | CRS Solutions Holdings, LLC (dba CRS Texas) | Business Services | Common Equity (538,875 units) | |||||
Investment Date | [3],[4],[5],[9],[11],[19] | Mar. 14, 2018 | |||
Cost | [3],[4],[5],[11],[19] | $ 621 | |||
Fair Value | [3],[4],[5],[6],[11],[19] | $ 686 | |||
Percent of Net Assets | [3],[4],[5],[11],[19] | 0% | |||
Non-control/Non-affiliate Investments | CRS Solutions Holdings, LLC (dba CRS Texas) | Business Services | Common Equity (Class A Units) (574,929 units) | |||||
Investment Date | [1],[2],[13],[18] | Jun. 28, 2022 | |||
Cost | [1],[13],[18] | $ 272 | |||
Fair Value | [1],[13],[18],[23] | $ 212 | |||
Percent of Net Assets | [1],[13],[18] | 0% | |||
Non-control/Non-affiliate Investments | Dataguise, Inc. | Information Technology Services | |||||
Cost | $ 22,212 | [1] | $ 21,283 | [3],[4],[5] | |
Fair Value | $ 21,283 | [1],[23] | $ 21,328 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Dataguise, Inc. | Information Technology Services | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[13],[15] | 11% | |||
Investment interest rate, PIK | [1],[13],[15] | 3% | |||
Investment Date | [1],[2],[13] | Dec. 30, 2022 | |||
Maturity | [1],[13] | Nov. 23, 2027 | |||
Principal Amount | [1],[13] | $ 20,763 | |||
Cost | [1],[13] | 20,712 | |||
Fair Value | [1],[13],[23] | $ 20,714 | |||
Non-control/Non-affiliate Investments | Dataguise, Inc. | Information Technology Services | First Lien Debt | |||||
Investment interest rate, Cash | [3],[4],[5],[11],[17] | 11% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17] | 0% | |||
Investment Date | [3],[4],[5],[9],[11] | Dec. 31, 2020 | |||
Maturity | [3],[4],[5],[11] | Dec. 31, 2023 | |||
Principal Amount | [3],[4],[5],[11] | $ 19,850 | |||
Cost | [3],[4],[5],[11] | 19,783 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 19,800 | |||
Non-control/Non-affiliate Investments | Dataguise, Inc. | Information Technology Services | Common Equity (909 shares) | |||||
Investment Date | Dec. 31, 2020 | [1],[2],[13] | Dec. 31, 2020 | [3],[4],[5],[9],[11] | |
Cost | $ 1,500 | [1],[13] | $ 1,500 | [3],[4],[5],[11] | |
Fair Value | 569 | [1],[13],[23] | 1,528 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | |||||
Cost | 24,593 | [1],[57],[58] | 18,783 | [3],[4],[5] | |
Fair Value | $ 25,257 | [1],[23],[57],[58] | $ 19,152 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1],[57],[58] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | First Lien Debt | |||||
Variable Index Spread | [3],[4],[5],[27],[28] | 6.50% | |||
Variable Index Floor | 1% | [1],[30],[31],[57],[58],[59] | (1.00%) | [3],[4],[5],[27],[28] | |
Investment interest rate, Cash | 10.32% | [1],[15],[31],[57],[58],[59] | 7.50% | [3],[4],[5],[17],[27] | |
Investment interest rate, PIK | 0% | [1],[15],[31],[57],[58],[59] | 0% | [3],[4],[5],[17],[27] | |
Investment Date | Feb. 07, 2019 | [1],[2],[31],[57],[58],[59] | Feb. 07, 2019 | [3],[4],[5],[9],[27] | |
Maturity | Feb. 07, 2024 | [1],[31],[57],[58],[59] | Feb. 07, 2024 | [3],[4],[5],[27] | |
Principal Amount | $ 24,155 | [1],[31],[57],[58],[59] | $ 18,355 | [3],[4],[5],[27] | |
Cost | 24,041 | [1],[31],[57],[58],[59] | 18,190 | [3],[4],[5],[27] | |
Fair Value | $ 24,155 | [1],[23],[31],[57],[58],[59] | $ 18,355 | [3],[4],[5],[6],[27] | |
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[31],[57],[58],[59] | 6.50% | |||
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | Common Equity (573 units) | |||||
Investment Date | Feb. 07, 2019 | [1],[2],[13],[18],[57],[58] | Feb. 07, 2019 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 552 | [1],[13],[18],[57],[58] | $ 593 | [3],[4],[5],[11],[19] | |
Fair Value | $ 1,102 | [1],[13],[18],[23],[57],[58] | 797 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | EBL, LLC (EbLens) | Retail | |||||
Cost | [3],[4],[5] | 10,055 | |||
Fair Value | [3],[4],[5],[6] | $ 9,266 | |||
Percent of Net Assets | [3],[4],[5] | 2% | |||
Non-control/Non-affiliate Investments | EBL, LLC (EbLens) | Retail | Second Lien Debt | |||||
Investment interest rate, Cash | [3],[4],[5],[11],[17] | 12% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17] | 1% | |||
Investment Date | [3],[4],[5],[9],[11] | Jul. 13, 2017 | |||
Maturity | [3],[4],[5],[11] | Jan. 13, 2023 | |||
Principal Amount | [3],[4],[5],[11] | $ 9,326 | |||
Cost | [3],[4],[5],[11] | 9,305 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 9,036 | |||
Non-control/Non-affiliate Investments | EBL, LLC (EbLens) | Retail | Common Equity (75,000 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Jul. 13, 2017 | |||
Cost | [3],[4],[5],[11] | $ 750 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 230 | |||
Non-control/Non-affiliate Investments | ECM Industries, LLC | Component Manufacturing | Common Equity (1,000,000 units) | |||||
Investment Date | Apr. 30, 2020 | [1],[2],[13],[18],[57],[58] | Apr. 30, 2020 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 221 | [1],[13],[18],[57],[58] | $ 243 | [3],[4],[5],[11],[19] | |
Fair Value | $ 1,633 | [1],[13],[18],[23],[57],[58] | $ 1,397 | [3],[4],[5],[6],[11],[19] | |
Percent of Net Assets | 0% | [1],[13],[18],[57],[58] | 0% | [3],[4],[5],[11],[19] | |
Non-control/Non-affiliate Investments | Education Incites, LLC (dba Acceleration Academies) | Business Services | Second Lien Debt | |||||
Investment interest rate, Cash | [1],[15],[57],[58] | 12.75% | |||
Investment interest rate, PIK | [1],[15],[57],[58] | 0% | |||
Investment Date | [1],[2],[57],[58] | Oct. 31, 2022 | |||
Maturity | [1],[57],[58] | Oct. 29, 2027 | |||
Principal Amount | [1],[57],[58] | $ 6,000 | |||
Cost | [1],[57],[58] | 5,971 | |||
Fair Value | [1],[23],[57],[58] | $ 5,971 | |||
Percent of Net Assets | [1],[57],[58] | 1% | |||
Non-control/Non-affiliate Investments | Elements Brands, LLC | Consumer Products | |||||
Cost | $ 3,245 | [1] | $ 7,897 | [3],[4],[5] | |
Fair Value | $ 3,275 | [1],[23] | $ 7,937 | [3],[4],[5],[6] | |
Percent of Net Assets | 1% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Elements Brands, LLC | Consumer Products | First Lien Debt | |||||
Investment interest rate, Cash | 12.25% | [1],[15] | 12.25% | [3],[4],[5],[17] | |
Investment interest rate, PIK | 0% | [1],[15] | 0% | [3],[4],[5],[17] | |
Investment Date | Dec. 31, 2020 | [1],[2] | Dec. 31, 2020 | [3],[4],[5],[9] | |
Maturity | Jun. 30, 2024 | [1] | Dec. 31, 2025 | [3],[4],[5] | |
Principal Amount | $ 1,775 | [1] | $ 5,775 | [3],[4],[5] | |
Cost | 1,755 | [1] | 5,748 | [3],[4],[5] | |
Fair Value | $ 1,775 | [1],[23] | $ 5,775 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Elements Brands, LLC | Consumer Products | Revolving Loan | |||||
Investment interest rate, Cash | [1],[13],[15] | 12.25% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Dec. 31, 2020 | |||
Maturity | [1],[13] | Jun. 30, 2024 | |||
Principal Amount | [1],[13] | $ 1,500 | |||
Cost | [1],[13] | 1,490 | |||
Fair Value | [1],[13],[23] | $ 1,500 | |||
Non-control/Non-affiliate Investments | Elements Brands, LLC | Consumer Products | Revolving Loan ($838 unfunded commitment) | |||||
Investment interest rate, Cash | [3],[4],[5],[11],[17],[22] | 12.25% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17],[22] | 0% | |||
Investment Date | [3],[4],[5],[9],[11],[22] | Dec. 31, 2020 | |||
Maturity | [3],[4],[5],[11],[22] | Dec. 31, 2025 | |||
Principal Amount | [3],[4],[5],[11],[22] | $ 2,162 | |||
Cost | [3],[4],[5],[11],[22] | 2,149 | |||
Fair Value | [3],[4],[5],[6],[11],[22] | 2,162 | |||
Non-control/Non-affiliate Investments | Fishbowl Solutions, LLC | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[30],[60] | 1% | |||
Investment interest rate, Cash | [1],[15],[60] | 12.57% | |||
Investment interest rate, PIK | [1],[15],[60] | 0% | |||
Investment Date | [1],[2],[60] | Mar. 25, 2022 | |||
Maturity | [1],[60] | Mar. 25, 2027 | |||
Principal Amount | [1],[60] | $ 14,428 | |||
Cost | [1],[60] | 14,335 | |||
Fair Value | [1],[23],[60] | $ 14,427 | |||
Percent of Net Assets | [1],[60] | 3% | |||
Non-control/Non-affiliate Investments | Fishbowl Solutions, LLC | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[60] | 7.75% | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | |||||
Cost | [3],[4],[5] | 2,000 | |||
Fair Value | [3],[4],[5],[6] | $ 1,431 | |||
Percent of Net Assets | [3],[4],[5] | 0% | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Preferred Equity (Class A Units) (46 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Dec. 31, 2020 | |||
Cost | [3],[4],[5],[11] | $ 2,000 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 1,431 | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Common Equity (Class B Units) (124 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Dec. 31, 2020 | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Preferred Equity (Class C Units) (100 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Dec. 31, 2020 | |||
Non-control/Non-affiliate Investments | Global Plasma Solutions, Inc | Component Manufacturing | Common Equity (947 shares) | |||||
Investment Date | Sep. 21, 2018 | [1],[2],[13] | Sep. 21, 2018 | [3],[4],[5],[9],[11] | |
Cost | $ 52 | [1],[13] | $ 52 | [3],[4],[5],[11] | |
Fair Value | $ 283 | [1],[13],[23] | $ 2,097 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13] | 0% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | |||||
Cost | $ 11,415 | [1] | $ 11,382 | [3],[4],[5] | |
Fair Value | $ 11,313 | [1],[23] | $ 11,432 | [3],[4],[5],[6] | |
Percent of Net Assets | 3% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[30],[61] | (1.00%) | [3],[4],[5],[28],[62] | |
Investment interest rate, Cash | 13.01% | [1],[15],[61] | 8.25% | [3],[4],[5],[17],[62] | |
Investment interest rate, PIK | 0% | [1],[15],[61] | 0% | [3],[4],[5],[17],[62] | |
Investment Date | Jan. 22, 2021 | [1],[2],[61] | Jan. 22, 2021 | [3],[4],[5],[9],[62] | |
Maturity | Jan. 22, 2026 | [1],[61] | Jan. 22, 2026 | [3],[4],[5],[62] | |
Principal Amount | $ 11,000 | [1],[61] | $ 11,000 | [3],[4],[5],[62] | |
Cost | 10,899 | [1],[61] | 10,866 | [3],[4],[5],[62] | |
Fair Value | $ 11,000 | [1],[23],[61] | $ 11,000 | [3],[4],[5],[6],[62] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | 8.25% | [1],[30],[61] | 7.25% | [3],[4],[5],[28],[62] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | Common Equity (515,625 units) | |||||
Investment Date | Jan. 22, 2021 | [1],[2],[13],[18] | Jan. 22, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 516 | [1],[13],[18] | $ 516 | [3],[4],[5],[11],[19] | |
Fair Value | $ 313 | [1],[13],[18],[23] | $ 432 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Green Cubes Technology, LLC (dba Green Cubes) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0% | [1],[13],[30] | (0.00%) | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 17.77% | [1],[13],[15] | 13.21% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Dec. 17, 2021 | [1],[2],[13] | Dec. 17, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Dec. 17, 2024 | [1],[13] | Dec. 17, 2024 | [3],[4],[5],[11] | |
Principal Amount | $ 13,000 | [1],[13] | $ 13,000 | [3],[4],[5],[11] | |
Cost | 12,952 | [1],[13] | 12,928 | [3],[4],[5],[11] | |
Fair Value | $ 13,000 | [1],[13],[23] | $ 12,928 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 3% | [1],[13] | 3% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Green Cubes Technology, LLC (dba Green Cubes) | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 13% | [1],[13],[30] | 13% | [3],[4],[5],[11],[28] | |
Non-control/Non-affiliate Investments | Gurobi Optimization, LLC | Information Technology Services | Common Equity (3 shares) | |||||
Investment Date | Dec. 19, 2017 | [1],[2] | Dec. 19, 2017 | [3],[4],[5],[9] | |
Cost | $ 605 | [1] | $ 607 | [3],[4],[5] | |
Fair Value | $ 2,381 | [1],[23] | $ 2,569 | [3],[4],[5],[6] | |
Percent of Net Assets | 0% | [1] | 1% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | |||||
Cost | $ 5,993 | [1] | $ 5,985 | [3],[4],[5] | |
Fair Value | $ 5,793 | [1],[23] | $ 5,065 | [3],[4],[5],[6] | |
Percent of Net Assets | 1% | [1] | 1% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | First Lien Debt | |||||
Variable Index Floor | 2% | [1],[30],[63] | 2% | [3],[4],[5],[28],[64] | |
Investment interest rate, Cash | 12.98% | [1],[15],[63] | 10.25% | [3],[4],[5],[17],[64] | |
Investment interest rate, PIK | 0% | [1],[15],[63] | 0% | [3],[4],[5],[17],[64] | |
Investment Date | Oct. 11, 2019 | [1],[2],[63] | Oct. 11, 2019 | [3],[4],[5],[9],[64] | |
Maturity | Oct. 11, 2024 | [1],[63] | Oct. 11, 2024 | [3],[4],[5],[64] | |
Principal Amount | $ 5,378 | [1],[13],[63] | $ 5,378 | [3],[4],[5],[64] | |
Cost | 5,363 | [1],[63] | 5,355 | [3],[4],[5],[64] | |
Fair Value | $ 5,378 | [1],[23],[63] | $ 4,945 | [3],[4],[5],[6],[64] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 8.25% | [1],[30],[63] | 8.25% | [3],[4],[5],[28],[64] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | Common Equity (630 units) | |||||
Investment Date | Oct. 11, 2019 | [1],[2],[13],[18] | Oct. 11, 2019 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 630 | [1],[13],[18] | $ 630 | [3],[4],[5],[11],[19] | |
Fair Value | 415 | [1],[13],[18],[23] | 120 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | |||||
Cost | 9,073 | [1] | 9,140 | [3],[4],[5] | |
Fair Value | $ 11,878 | [1],[23] | $ 10,508 | [3],[4],[5],[6] | |
Percent of Net Assets | 3% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | First Lien Debt | |||||
Variable Index Floor | 1.50% | [1],[13],[30],[65] | 1.50% | [3],[4],[5],[11],[28],[66] | |
Investment interest rate, Cash | 10.99% | [1],[13],[15],[65] | 8.75% | [3],[4],[5],[11],[17],[66] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[65] | 0% | [3],[4],[5],[11],[17],[66] | |
Investment Date | Dec. 04, 2020 | [1],[2],[13],[65] | Dec. 04, 2020 | [3],[4],[5],[9],[11],[66] | |
Maturity | Dec. 04, 2025 | [1],[13],[65] | Dec. 04, 2025 | [3],[4],[5],[11],[66] | |
Principal Amount | $ 8,361 | [1],[13],[65] | $ 8,440 | [3],[4],[5],[11],[66] | |
Cost | 8,323 | [1],[13],[65] | 8,390 | [3],[4],[5],[11],[66] | |
Fair Value | $ 8,361 | [1],[13],[23],[65] | $ 8,440 | [3],[4],[5],[6],[11],[66] | |
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 7.25% | [1],[13],[30],[65] | 7.25% | [3],[4],[5],[11],[28],[66] | |
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | Common Equity (750,000 units) | |||||
Investment Date | Dec. 04, 2020 | [1],[2],[13] | Dec. 04, 2020 | [3],[4],[5],[9],[11] | |
Cost | $ 750 | [1],[13] | $ 750 | [3],[4],[5],[11] | |
Fair Value | $ 3,517 | [1],[13],[23] | 2,068 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Healthfuse, LLC | Healthcare Services | |||||
Cost | [3],[4],[5] | 6,658 | |||
Fair Value | [3],[4],[5],[6] | $ 6,860 | |||
Percent of Net Assets | [3],[4],[5] | 1% | |||
Non-control/Non-affiliate Investments | Healthfuse, LLC | Healthcare Services | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[28],[67] | 1% | |||
Investment interest rate, Cash | [3],[4],[5],[17],[67] | 8.25% | |||
Investment interest rate, PIK | [3],[4],[5],[17],[67] | 0% | |||
Investment Date | [3],[4],[5],[9],[67] | Nov. 13, 2020 | |||
Maturity | [3],[4],[5],[67] | Nov. 13, 2025 | |||
Principal Amount | [3],[4],[5],[67] | $ 5,940 | |||
Cost | [3],[4],[5],[67] | 5,908 | |||
Fair Value | [3],[4],[5],[6],[67] | $ 5,940 | |||
Non-control/Non-affiliate Investments | Healthfuse, LLC | Healthcare Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[28],[67] | 7.25% | |||
Non-control/Non-affiliate Investments | Healthfuse, LLC | Healthcare Services | Preferred Equity (197,980 units) | |||||
Investment Date | Nov. 13, 2020 | [1],[2] | Nov. 13, 2020 | [3],[4],[5],[9] | |
Cost | $ 748 | [1] | $ 750 | [3],[4],[5] | |
Fair Value | $ 1,376 | [1],[23] | 920 | [3],[4],[5],[6] | |
Percent of Net Assets | [1] | 0% | |||
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | |||||
Cost | $ 25,220 | [1] | 25,250 | [3],[4],[5] | |
Fair Value | $ 25,932 | [1],[23] | $ 22,501 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1] | 5% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | Second Lien Debt | |||||
Investment interest rate, Cash | 12.50% | [1],[15],[31] | 13.50% | [3],[4],[5],[17],[27] | |
Investment interest rate, PIK | 1% | [1],[15],[31] | 0% | [3],[4],[5],[17],[27] | |
Investment Date | Mar. 23, 2016 | [1],[2],[31] | Mar. 23, 2016 | [3],[4],[5],[9],[27] | |
Maturity | Dec. 15, 2023 | [1],[31] | Mar. 31, 2023 | [3],[4],[5],[27] | |
Principal Amount | $ 25,007 | [1],[31] | $ 25,000 | [3],[4],[5],[27] | |
Cost | 25,005 | [1],[31] | 24,986 | [3],[4],[5],[27] | |
Fair Value | $ 25,006 | [1],[23],[31] | $ 22,501 | [3],[4],[5],[6],[27] | |
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | Preferred Equity (868 units) | |||||
Investment Date | Oct. 16, 2020 | [1],[2],[13] | Oct. 16, 2020 | [3],[4],[5],[9],[11] | |
Cost | $ 153 | [1],[31] | $ 150 | [3],[4],[5],[11] | |
Fair Value | [1],[13],[23] | $ 218 | |||
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | Common Equity (3,750 units) | |||||
Investment Date | Mar. 23, 2016 | [1],[2] | Mar. 23, 2016 | [3],[4],[5],[9] | |
Cost | $ 62 | [1],[31] | $ 114 | [3],[4],[5] | |
Fair Value | [1],[23] | $ 708 | |||
Non-control/Non-affiliate Investments | IBH Holdings, LLC (fka Inflexxion, Inc.) | Business Services | Common Equity (150,000 units) | |||||
Investment Date | Jun. 20, 2018 | [1],[2] | Jun. 20, 2018 | [3],[4],[5],[9] | |
Fair Value | $ 346 | [1],[23] | $ 203 | [3],[4],[5],[6] | |
Percent of Net Assets | 0% | [1] | 0% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | |||||
Cost | $ 19,765 | [1] | $ 19,111 | [3],[4],[5] | |
Fair Value | $ 20,796 | [1],[23] | $ 19,694 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1],[13] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30],[68] | 1% | |||
Investment interest rate, Cash | 11.69% | [1],[13],[15],[68] | 8% | [3],[4],[5],[11],[17],[69] | |
Investment interest rate, PIK | 1% | [1],[13],[15],[68] | 1% | [3],[4],[5],[11],[17],[69] | |
Investment Date | Jun. 30, 2020 | [1],[2],[13],[68] | Jun. 30, 2020 | [3],[4],[5],[9],[11],[69] | |
Maturity | Jul. 28, 2025 | [1],[13],[68] | Jul. 28, 2025 | [3],[4],[5],[11],[69] | |
Principal Amount | $ 19,773 | [1],[13],[68] | $ 19,380 | [3],[4],[5],[11],[69] | |
Cost | 19,083 | [1],[13],[68] | 18,429 | [3],[4],[5],[11],[69] | |
Fair Value | $ 19,773 | [1],[13],[23],[68] | $ 19,012 | [3],[4],[5],[6],[11],[69] | |
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30],[68] | 7% | |||
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[11],[28],[69] | 1% | |||
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28],[69] | 7% | |||
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | Preferred Equity (682,075 units) | |||||
Investment Date | Jul. 28, 2021 | [1],[2],[13] | Jul. 28, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 682 | [1],[13] | $ 682 | [3],[4],[5],[11] | |
Fair Value | 1,023 | [1],[13],[23] | 682 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | |||||
Cost | 25,600 | [1] | 26,225 | [3],[4],[5] | |
Fair Value | $ 25,835 | [1],[23] | $ 26,243 | [3],[4],[5],[6] | |
Percent of Net Assets | 5% | [1],[13],[18] | 5% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30],[70] | 0.50% | [3],[4],[5],[11],[28],[71] | |
Investment interest rate, Cash | 11.17% | [1],[13],[15],[70] | 8% | [3],[4],[5],[11],[17],[71] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[70] | 0% | [3],[4],[5],[11],[17],[71] | |
Investment Date | Apr. 05, 2021 | [1],[2],[13],[70] | Apr. 05, 2021 | [3],[4],[5],[9],[11],[71] | |
Maturity | Apr. 05, 2026 | [1],[13],[70] | Apr. 05, 2026 | [3],[4],[5],[11],[71] | |
Principal Amount | $ 12,175 | [1],[13],[70] | $ 12,483 | [3],[4],[5],[11],[71] | |
Cost | 12,106 | [1],[13],[70] | 12,394 | [3],[4],[5],[11],[71] | |
Fair Value | $ 12,175 | [1],[13],[23],[70] | $ 12,404 | [3],[4],[5],[6],[11],[71] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 7.50% | [1],[13],[30],[70] | 7.50% | [3],[4],[5],[11],[28],[71] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30],[72] | 0.50% | [3],[4],[5],[11],[19],[28],[73] | |
Investment interest rate, Cash | 11.17% | [1],[13],[15],[72] | 8% | [3],[4],[5],[11],[17],[19],[73] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[72] | 0% | [3],[4],[5],[11],[17],[19],[73] | |
Investment Date | Jun. 30, 2021 | [1],[2],[13],[72] | Jun. 30, 2021 | [3],[4],[5],[9],[11],[19],[73] | |
Maturity | Apr. 05, 2026 | [1],[13],[72] | Apr. 05, 2026 | [3],[4],[5],[11],[19],[73] | |
Principal Amount | $ 12,994 | [1],[13],[72] | $ 13,331 | [3],[4],[5],[11],[19],[73] | |
Cost | 12,994 | [1],[13],[72] | 13,331 | [3],[4],[5],[11],[19],[73] | |
Fair Value | $ 12,994 | [1],[13],[23],[72] | $ 13,247 | [3],[4],[5],[6],[11],[19],[73] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 7.50% | [1],[13],[30],[72] | 7.50% | [3],[4],[5],[11],[19],[28],[73] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | Common Equity (256,964 units) | |||||
Investment Date | Apr. 05, 2021 | [1],[2],[13],[18] | Apr. 05, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 500 | [1],[13],[18] | $ 500 | [3],[4],[5],[11] | |
Fair Value | $ 666 | [1],[13],[18],[23] | $ 592 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) | Industrial Cleaning & Coatings | Second Lien Debt | |||||
Investment interest rate, Cash | 0% | [1],[12],[13],[14],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 10% | [1],[12],[13],[15],[18] | 10% | [3],[4],[5],[11],[17] | |
Investment Date | Jan. 28, 2019 | [1],[2],[12],[13],[14] | Jan. 28, 2019 | [3],[4],[5],[9],[11] | |
Maturity | Jan. 28, 2025 | [1],[12],[13],[14] | Jan. 28, 2023 | [3],[4],[5],[11] | |
Principal Amount | $ 2,368 | [1],[12],[13],[14] | $ 2,368 | [3],[4],[5],[11] | |
Cost | 2,368 | [1],[12],[13],[14] | 2,368 | [3],[4],[5],[11] | |
Fair Value | $ 2,123 | [1],[12],[13],[14],[23] | $ 2,368 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13],[14] | 1% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | The Kyjen Company, LLC (dba Outward Hound) | Consumer Products | Common Equity (855 shares) | |||||
Investment Date | Dec. 08, 2017 | [1],[2],[12],[13],[14] | Dec. 08, 2017 | [3],[4],[5],[9],[11] | |
Cost | $ 933 | [1],[13] | $ 933 | [3],[4],[5],[11] | |
Fair Value | $ 110 | [1],[13],[23] | $ 1,465 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13] | 0% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | |||||
Cost | $ 6,138 | [1] | $ 6,396 | [3],[4],[5] | |
Fair Value | $ 6,428 | [1],[23] | $ 6,744 | [3],[4],[5],[6] | |
Percent of Net Assets | 1% | [1] | 1% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | First Lien Debt | |||||
Variable Index Spread | [1],[30],[31],[74] | 6.75% | |||
Variable Index Floor | 0.50% | [1],[30],[31],[74] | 0.50% | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 10.49% | [1],[15],[31],[74] | 7.25% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[15],[31],[74] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Apr. 01, 2021 | [1],[2],[31],[74] | Apr. 01, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Apr. 01, 2026 | [1],[31],[74] | Apr. 01, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 5,165 | [1],[31],[74] | $ 5,431 | [3],[4],[5],[11] | |
Cost | 5,138 | [1],[31],[74] | 5,396 | [3],[4],[5],[11] | |
Fair Value | $ 5,165 | [1],[31],[74] | $ 5,431 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 6.75% | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (1,000,000 units) | |||||
Investment Date | Apr. 01, 2021 | [1],[2],[13] | Apr. 01, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 1,000 | [1],[13] | $ 1,000 | [3],[4],[5],[11] | |
Fair Value | 1,263 | [1],[13] | 1,313 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | LifeSpan Biosciences, Inc. | Healthcare Products | |||||
Cost | 16,946 | [1] | 16,931 | [3],[4],[5] | |
Fair Value | $ 16,023 | [1],[23] | $ 16,981 | [3],[4],[5],[6] | |
Percent of Net Assets | 3% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | LifeSpan Biosciences, Inc. | Healthcare Products | Subordinated Debt | |||||
Investment interest rate, Cash | 11.50% | [1],[13],[15] | 11.50% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Mar. 19, 2021 | [1],[2],[13] | Mar. 19, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Sep. 19, 2026 | [1],[13] | Sep. 19, 2026 | [3],[4],[5],[11] | |
Principal Amount | $ 16,000 | [1],[13] | $ 16,000 | [3],[4],[5],[11] | |
Cost | 15,946 | [1],[13] | 15,931 | [3],[4],[5],[11] | |
Fair Value | $ 15,418 | [1],[13] | $ 16,000 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | LifeSpan Biosciences, Inc. | Healthcare Products | Common Equity (100 shares) | |||||
Investment Date | Mar. 19, 2021 | [1],[2],[13] | Mar. 19, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 1,000 | [1],[13] | $ 1,000 | [3],[4],[5],[11] | |
Fair Value | $ 605 | [1],[13] | 981 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Magenta Buyer LLC (dba Trellix) | Information Technology Services | Second Lien Debt | |||||
Variable Index Floor | [1],[13],[30] | 0.75% | |||
Investment interest rate, Cash | [1],[13],[15] | 12.98% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Jul. 19, 2022 | |||
Maturity | [1],[13] | Jul. 27, 2029 | |||
Principal Amount | [1],[13] | $ 7,182 | |||
Cost | [1],[13] | 6,809 | |||
Fair Value | [1],[13] | $ 7,126 | |||
Percent of Net Assets | [1],[13] | 1% | |||
Non-control/Non-affiliate Investments | Magenta Buyer LLC (dba Trellix) | Information Technology Services | Second Lien Debt | LIBOR | |||||
Variable Index Spread | [1],[13],[30] | 8.25% | |||
Non-control/Non-affiliate Investments | MBS Opco, LLC (dba Marketron) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30] | 1.50% | |||
Investment interest rate, Cash | [1],[13],[15] | 13.34% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Sep. 29, 2022 | |||
Maturity | [1],[13] | Sep. 28, 2026 | |||
Principal Amount | [1],[13] | $ 27,000 | |||
Cost | [1],[13] | 26,873 | |||
Fair Value | [1],[13] | $ 26,873 | |||
Percent of Net Assets | [1],[13] | 6% | |||
Non-control/Non-affiliate Investments | MBS Opco, LLC (dba Marketron) | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 8.50% | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | |||||
Cost | [1] | $ 12,594 | |||
Fair Value | [1],[23] | $ 14,396 | |||
Percent of Net Assets | [1] | 3% | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | First Lien Debt | |||||
Variable Index Floor | [1],[30],[31],[75] | 0.50% | |||
Investment interest rate, Cash | [1],[15],[31],[75] | 9.32% | |||
Investment interest rate, PIK | [1],[15],[31],[75] | 0% | |||
Investment Date | [1],[2],[31],[75] | Feb. 17, 2022 | |||
Maturity | [1],[31],[75] | Feb. 17, 2027 | |||
Principal Amount | [1],[31],[75] | $ 11,223 | |||
Cost | [1],[31],[75] | 11,154 | |||
Fair Value | [1],[23],[31],[75] | $ 11,223 | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[31],[75] | 5.50% | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | Common Equity (14,400 units) | |||||
Investment Date | [1],[2],[13] | Feb. 17, 2022 | |||
Cost | [1],[13] | $ 1,440 | |||
Fair Value | [1],[13],[23] | $ 3,173 | |||
Non-control/Non-affiliate Investments | Midwest Transit Equipment, Inc. | Transportation Services | |||||
Cost | [3],[4],[5] | 370 | |||
Fair Value | [3],[4],[5],[6] | $ 246 | |||
Percent of Net Assets | [3],[4],[5] | 0% | |||
Non-control/Non-affiliate Investments | Midwest Transit Equipment, Inc. | Transportation Services | Warrant (7,192 shares) | |||||
Investment Date | [3],[4],[5],[9],[11],[25] | Jun. 23, 2017 | |||
Cost | [3],[4],[5],[11],[25] | $ 180 | |||
Non-control/Non-affiliate Investments | Midwest Transit Equipment, Inc. | Transportation Services | Warrant (4.79% of Junior Subordinated Notes) | |||||
Investment Date | [3],[4],[5],[9],[11],[25],[76] | Jun. 23, 2017 | |||
Cost | [3],[4],[5],[11],[25],[76] | $ 190 | |||
Fair Value | [3],[4],[5],[6],[11],[25],[76] | $ 246 | |||
Non-control/Non-affiliate Investments | Mobilewalla, Inc. | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | 0.50% | [1],[13],[30] | 0.50% | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 16.26% | [1],[13],[15] | 12% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Dec. 17, 2021 | [1],[2],[13] | Dec. 17, 2021 | [3],[4],[5],[9],[11],[25] | |
Maturity | Dec. 17, 2024 | [1],[13] | Dec. 17, 2024 | [3],[4],[5],[11],[25] | |
Principal Amount | $ 5,715 | [1],[13] | $ 5,715 | [3],[4],[5],[11] | |
Cost | 5,696 | [1],[13] | 5,687 | [3],[4],[5],[11] | |
Fair Value | $ 5,715 | [1],[13],[23] | $ 5,687 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 1% | [1],[13] | 1% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Mobilewalla, Inc. | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | 11.50% | [1],[13],[30] | 11.50% | [3],[4],[5],[11],[28] | |
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[27],[28],[77] | 3.25% | |||
Investment interest rate, Cash | [3],[4],[5],[17],[27],[77] | 8.75% | |||
Investment interest rate, PIK | [3],[4],[5],[17],[27],[77] | 1.50% | |||
Investment Date | [3],[4],[5],[9],[27],[77] | Nov. 18, 2021 | |||
Maturity | [3],[4],[5],[27],[77] | Nov. 18, 2025 | |||
Principal Amount | [3],[4],[5],[27],[77] | $ 16,568 | |||
Cost | [3],[4],[5],[27],[77] | 16,448 | |||
Fair Value | [3],[4],[5],[6],[27],[77] | $ 16,448 | |||
Percent of Net Assets | [3],[4],[5],[27],[77] | 4% | |||
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt | Prime | |||||
Variable Index Spread | [3],[4],[5],[27],[28],[77] | 5.50% | |||
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt ($3,300 unfunded commitment) | |||||
Variable Index Floor | [1],[24],[30],[31],[78] | 3.25% | |||
Investment interest rate, Cash | [1],[15],[24],[31],[78] | 11.50% | |||
Investment interest rate, PIK | [1],[15],[24],[31],[78] | 0% | |||
Investment Date | [1],[2],[24],[31],[78] | Nov. 18, 2021 | |||
Maturity | [1],[24],[31],[78] | Nov. 18, 2025 | |||
Principal Amount | [1],[24],[31],[78] | $ 16,708 | |||
Cost | [1],[24],[31],[78] | 16,618 | |||
Fair Value | [1],[23],[24],[31],[78] | $ 16,852 | |||
Percent of Net Assets | [1],[24],[31],[78] | 4% | |||
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt ($3,300 unfunded commitment) | Prime | |||||
Variable Index Spread | [1],[24],[30],[31],[78] | 4% | |||
Non-control/Non-affiliate Investments | NGT Acquisition Holdings, LLC (dba Techniks Industries) | Component Manufacturing | Common Equity (378 units) | |||||
Investment Date | May 24, 2017 | [1],[2],[13] | May 24, 2017 | [3],[4],[5],[9],[11] | |
Cost | $ 500 | [1],[13] | $ 500 | [3],[4],[5],[11] | |
Fair Value | $ 121 | [1],[13],[23] | $ 204 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13] | 0% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | OMC Investors, LLC (dba Ohio Medical Corporation) | Healthcare Products | |||||
Cost | [3],[4],[5] | $ 5,172 | |||
Fair Value | [3],[4],[5],[6] | $ 5,743 | |||
Percent of Net Assets | [3],[4],[5] | 1% | |||
Non-control/Non-affiliate Investments | OMC Investors, LLC (dba Ohio Medical Corporation) | Healthcare Products | Second Lien Debt | |||||
Investment interest rate, Cash | [3],[4],[5],[17] | 13% | |||
Investment interest rate, PIK | [3],[4],[5],[17] | 0% | |||
Investment Date | [3],[4],[5],[9] | Jan. 26, 2021 | |||
Maturity | [3],[4],[5] | Jun. 30, 2024 | |||
Principal Amount | [3],[4],[5] | $ 5,000 | |||
Cost | [3],[4],[5] | 4,963 | |||
Fair Value | [3],[4],[5],[6] | $ 5,000 | |||
Non-control/Non-affiliate Investments | OMC Investors, LLC (dba Ohio Medical Corporation) | Healthcare Products | Common Equity (5,000 units) | |||||
Investment Date | [3],[4],[5],[9] | Jan. 15, 2016 | |||
Cost | [3],[4],[5] | $ 209 | |||
Fair Value | [3],[4],[5],[6] | $ 743 | |||
Non-control/Non-affiliate Investments | OnePath Systems, LLC | Information Technology Services | |||||
Cost | [1] | $ 11,422 | |||
Fair Value | [1],[23] | $ 11,422 | |||
Percent of Net Assets | [1] | 3% | |||
Non-control/Non-affiliate Investments | OnePath Systems, LLC | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[30],[79] | 1% | |||
Investment interest rate, Cash | [1],[15],[79] | 12.08% | |||
Investment interest rate, PIK | [1],[15],[79] | 0% | |||
Investment Date | [1],[2],[79] | Sep. 30, 2022 | |||
Maturity | [1],[79] | Sep. 30, 2027 | |||
Principal Amount | [1],[79] | $ 11,000 | |||
Cost | [1],[79] | 10,922 | |||
Fair Value | [1],[23],[79] | $ 10,922 | |||
Non-control/Non-affiliate Investments | OnePath Systems, LLC | Information Technology Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[79] | 7.50% | |||
Non-control/Non-affiliate Investments | OnePath Systems, LLC | Information Technology Services | Common Equity (732,542 shares) | |||||
Investment Date | [1],[2],[13] | Sep. 30, 2022 | |||
Cost | [1],[13] | $ 500 | |||
Fair Value | [1],[13],[23] | $ 500 | |||
Non-control/Non-affiliate Investments | Palisade Company, LLC | Information Technology Services | Common Equity (50 shares) | |||||
Investment Date | [3],[4],[5],[9],[11] | Nov. 15, 2018 | |||
Cost | [3],[4],[5],[11] | $ 500 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 1,224 | |||
Percent of Net Assets | [3],[4],[5],[11] | 0% | |||
Non-control/Non-affiliate Investments | Palmetto Moon, LLC | Retail | Common Equity (499 units) | |||||
Investment Date | Nov. 03, 2016 | [1],[2],[13] | Nov. 03, 2016 | [3],[4],[5],[9],[11] | |
Cost | $ 265 | [1],[13] | $ 265 | [3],[4],[5],[11] | |
Fair Value | $ 453 | [1],[13],[23] | $ 895 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13] | 0% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Pinnergy, Ltd. | Oil & Gas Services | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[13],[15] | 9% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Jun. 30, 2022 | |||
Maturity | [1],[13] | Jun. 30, 2027 | |||
Principal Amount | [1],[13] | $ 13,000 | |||
Cost | [1],[13] | 12,933 | |||
Fair Value | [1],[13],[23] | $ 13,000 | |||
Percent of Net Assets | [1],[13] | 3% | |||
Non-control/Non-affiliate Investments | Pool & Electrical Products, LLC | Specialty Distribution | Common Equity (18,298 units) | |||||
Investment Date | Oct. 28, 2020 | [1],[2],[13],[18] | Oct. 28, 2020 | [3],[4],[5],[9],[10],[11],[19] | |
Cost | $ 549 | [1],[13],[18] | $ 549 | [3],[4],[5],[10],[11],[19] | |
Fair Value | $ 4,835 | [1],[13],[18],[23] | $ 4,466 | [3],[4],[5],[6],[10],[11],[19] | |
Percent of Net Assets | 1% | [1],[13],[18] | 1% | [3],[4],[5],[10],[11],[19] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | |||||
Cost | $ 18,591 | [1] | $ 18,412 | [3],[4],[5] | |
Fair Value | $ 20,211 | [1],[23] | $ 18,463 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Second Lien Debt | |||||
Investment interest rate, Cash | 11% | [1],[15],[31] | 11% | [3],[4],[5],[17],[27] | |
Investment interest rate, PIK | 0.50% | [1],[15],[31] | 1% | [3],[4],[5],[17],[27] | |
Investment Date | Apr. 12, 2018 | [1],[2],[31] | Apr. 12, 2018 | [3],[4],[5],[9],[27] | |
Maturity | Dec. 02, 2025 | [1],[31] | Dec. 02, 2025 | [3],[4],[5],[27] | |
Principal Amount | $ 17,734 | [1],[31] | $ 17,570 | [3],[4],[5],[27] | |
Cost | 17,689 | [1],[31] | 17,510 | [3],[4],[5],[27] | |
Fair Value | $ 17,734 | [1],[23],[31] | $ 17,570 | [3],[4],[5],[6],[27] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Preferred Equity (392 shares) | |||||
Investment Date | Apr. 12, 2018 | [1],[2],[13] | Apr. 12, 2018 | [3],[4],[5],[9],[11] | |
Cost | $ 392 | [1],[13] | $ 392 | [3],[4],[5],[11] | |
Fair Value | $ 624 | [1],[13],[23] | $ 564 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Preferred Equity (48 shares) | |||||
Investment Date | Dec. 02, 2019 | [1],[2],[13] | Dec. 02, 2019 | [3],[4],[5],[9],[11] | |
Cost | $ 48 | [1],[13] | $ 48 | [3],[4],[5],[11] | |
Fair Value | $ 77 | [1],[13],[23] | $ 70 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Common Equity (10,622 shares) | |||||
Investment Date | Apr. 12, 2018 | [1],[2],[13] | Apr. 12, 2018 | [3],[4],[5],[9],[11] | |
Cost | $ 462 | [1],[13] | $ 462 | [3],[4],[5],[11] | |
Fair Value | 1,776 | [1],[13],[23] | 259 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | |||||
Cost | 11,320 | [1] | 11,279 | [3],[4],[5],[19] | |
Fair Value | $ 11,419 | [1],[23] | $ 11,279 | [3],[4],[5],[6],[19] | |
Percent of Net Assets | 2% | [1] | 2% | [3],[4],[5],[19] | |
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | Second Lien Debt | |||||
Variable Index Floor | 1% | [1],[13],[30] | 1% | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 14.23% | [1],[13],[15] | 10.50% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Sep. 21, 2021 | [1],[2],[13] | Sep. 21, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Mar. 21, 2029 | [1],[13] | Mar. 21, 2029 | [3],[4],[5],[11] | |
Principal Amount | $ 10,831 | [1],[13] | $ 10,831 | [3],[4],[5],[11] | |
Cost | 10,786 | [1],[13] | 10,779 | [3],[4],[5],[11] | |
Fair Value | $ 10,831 | [1],[13],[23] | $ 10,779 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | Second Lien Debt | LIBOR | |||||
Variable Index Spread | 9.50% | [1],[13],[30] | 9.50% | [3],[4],[5],[11],[28] | |
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | Common Equity (5,341 units) | |||||
Investment Date | Sep. 21, 2021 | [1],[2],[13],[18] | Sep. 21, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 534 | [1],[13],[18] | $ 500 | [3],[4],[5],[11],[19] | |
Fair Value | 588 | [1],[13],[18],[23] | 500 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | |||||
Cost | 6,660 | [1] | 6,955 | [3],[4],[5] | |
Fair Value | $ 6,237 | [1],[23] | $ 6,629 | [3],[4],[5],[6] | |
Percent of Net Assets | 1% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | First Lien Debt | |||||
Variable Index Floor | 2% | [1],[13],[30] | 2% | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 11.59% | [1],[13],[15] | 8.25% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Nov. 25, 2019 | [1],[2],[13] | Nov. 25, 2019 | [3],[4],[5],[9],[11] | |
Maturity | Nov. 25, 2024 | [1],[13] | Nov. 25, 2024 | [3],[4],[5],[11] | |
Principal Amount | $ 5,833 | [1],[13] | $ 6,167 | [3],[4],[5],[11] | |
Cost | 5,760 | [1],[13] | 6,055 | [3],[4],[5],[11] | |
Fair Value | $ 5,833 | [1],[13],[23] | $ 6,167 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 6.25% | |||
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 6.75% | |||
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | Preferred Equity (900,000 shares) | |||||
Investment Date | Nov. 25, 2019 | [1],[2],[13] | Nov. 25, 2019 | [3],[4],[5],[9],[11] | |
Cost | $ 900 | [1],[13] | $ 900 | [3],[4],[5],[11] | |
Fair Value | $ 404 | [1],[13],[23] | $ 462 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Pugh Lubricants, LLC | Specialty Distribution | Common Equity (3,062 units) | |||||
Investment Date | [3],[4],[5],[9],[10],[11],[19] | Nov. 10, 2016 | |||
Percent of Net Assets | [3],[4],[5],[10],[11],[19] | 0% | |||
Non-control/Non-affiliate Investments | Quest Software US Holdings Inc. | Information Technology Services | Second Lien Debt | |||||
Variable Index Floor | [1],[13],[30] | 0.50% | |||
Investment interest rate, Cash | [1],[13],[15] | 11.79% | |||
Investment interest rate, PIK | [1],[13],[15] | 0% | |||
Investment Date | [1],[2],[13] | Mar. 01, 2022 | |||
Maturity | [1],[13] | Feb. 01, 2030 | |||
Principal Amount | [1],[13] | $ 20,000 | |||
Cost | [1],[13] | 19,360 | |||
Fair Value | [1],[13],[23] | $ 15,002 | |||
Percent of Net Assets | [1] | 3% | |||
Non-control/Non-affiliate Investments | Quest Software US Holdings Inc. | Information Technology Services | Second Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30] | 7.50% | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | |||||
Cost | [1] | $ 6,876 | |||
Fair Value | [1],[23] | $ 6,876 | |||
Percent of Net Assets | [1] | 1% | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | First Lien Debt ($2,489 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[24],[30],[54] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[24],[54] | 10.83% | |||
Investment interest rate, PIK | [1],[13],[15],[24],[54] | 0% | |||
Investment Date | [1],[2],[13],[24],[54] | Dec. 30, 2022 | |||
Maturity | [1],[13],[24],[54] | Dec. 30, 2028 | |||
Principal Amount | [1],[13],[24],[54] | $ 5,511 | |||
Cost | [1],[13],[24],[54] | 5,309 | |||
Fair Value | [1],[13],[23],[24],[54] | $ 5,309 | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | First Lien Debt ($2,489 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[24],[30],[54] | 6.25% | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | Subordinated Debt ($417 unfunded commitment) | |||||
Investment interest rate, Cash | [1],[13],[15],[24],[54] | 8.75% | |||
Investment interest rate, PIK | [1],[13],[15],[24],[54] | 5% | |||
Investment Date | [1],[2],[13],[24],[54] | Dec. 30, 2022 | |||
Maturity | [1],[13],[24],[54] | Jun. 30, 2029 | |||
Principal Amount | [1],[13],[24],[54] | $ 1,334 | |||
Cost | [1],[13],[24],[54] | 1,287 | |||
Fair Value | [1],[13],[23],[24],[54] | $ 1,287 | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | Common Equity (280,000 units) ($70 unfunded commitment) | |||||
Investment Date | [1],[2],[13] | Dec. 30, 2022 | |||
Cost | [1],[13] | $ 280 | |||
Fair Value | [1],[13] | 280 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | |||||
Cost | 16,230 | [1] | $ 14,984 | [3],[4],[5] | |
Fair Value | $ 17,537 | [1],[2] | $ 15,201 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1] | 3% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Second Lien Debt | |||||
Investment interest rate, Cash | 11.50% | [1],[15],[30],[31] | 12% | [3],[4],[5],[17],[27] | |
Investment interest rate, PIK | 0% | [1],[15],[30],[31] | 1% | [3],[4],[5],[17],[27] | |
Investment Date | Aug. 11, 2017 | [1],[2],[15],[31] | Aug. 11, 2017 | [3],[4],[5],[9],[27] | |
Maturity | Feb. 11, 2026 | [1],[31] | Feb. 11, 2023 | [3],[4],[5],[27] | |
Principal Amount | $ 14,851 | [1],[31] | $ 13,804 | [3],[4],[5],[27] | |
Cost | 14,837 | [1],[31] | 13,791 | [3],[4],[5],[27] | |
Fair Value | $ 14,851 | [1],[2],[31] | $ 13,804 | [3],[4],[5],[6],[27] | |
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Delayed Draw Commitment ($875 unfunded commitment) | |||||
Investment interest rate, Cash | [3],[4],[5],[11],[17],[22] | 12% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17],[22] | 1% | |||
Investment Date | [3],[4],[5],[9],[11],[22] | Aug. 11, 2017 | |||
Maturity | [3],[4],[5],[11],[22] | May 17, 2022 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class A Units) (8,864 units) | |||||
Investment Date | [3],[4],[5],[9],[11],[19] | Aug. 11, 2017 | |||
Cost | [3],[4],[5],[11],[19] | $ 925 | |||
Fair Value | [3],[4],[5],[6],[11],[19] | $ 1,115 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Preferred Equity (Units N/A) | |||||
Investment Date | Dec. 10, 2020 | [1],[2],[13],[15],[18] | Dec. 10, 2020 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 268 | [1],[13],[18] | $ 268 | [3],[4],[5],[11],[19] | |
Fair Value | $ 307 | [1],[2],[13],[18] | $ 282 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class W Units) (710 units) | |||||
Investment Date | [3],[4],[5],[9],[11],[19] | Dec. 10, 2020 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class A Units) (10,915 units) | |||||
Investment Date | [1],[2],[13],[15],[18] | Aug. 11, 2017 | |||
Cost | [1],[13],[18] | $ 1,125 | |||
Fair Value | [1],[2],[13],[18] | $ 2,379 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class F Units) (710 units) | |||||
Investment Date | [1],[2],[13],[15],[18] | Dec. 10, 2020 | |||
Non-control/Non-affiliate Investments | Road Safety Services, Inc. | Business Services | |||||
Cost | $ 16,931 | [1] | $ 16,602 | [3],[4],[5] | |
Fair Value | $ 17,400 | [1],[2] | $ 16,810 | [3],[4],[5],[6] | |
Percent of Net Assets | 4% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Road Safety Services, Inc. | Business Services | Second Lien Debt | |||||
Investment interest rate, Cash | 11.25% | [1],[13],[15],[30] | 11.25% | [3],[4],[5],[17] | |
Investment interest rate, PIK | 2% | [1],[13],[15],[30] | 2% | [3],[4],[5],[17] | |
Investment Date | Sep. 18, 2018 | [1],[2],[13],[15] | Sep. 18, 2018 | [3],[4],[5],[9] | |
Maturity | Sep. 18, 2025 | [1],[13] | Sep. 18, 2025 | [3],[4],[5] | |
Principal Amount | $ 15,842 | [1],[13] | $ 15,525 | [3],[4],[5] | |
Cost | 15,810 | [1],[13] | 15,481 | [3],[4],[5] | |
Fair Value | $ 15,842 | [1],[2],[13] | $ 15,525 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Road Safety Services, Inc. | Business Services | Common Equity (779 units) | |||||
Investment Date | Sep. 18, 2018 | [1],[2],[15] | Sep. 18, 2018 | [3],[4],[5],[9] | |
Cost | $ 1,121 | [1] | $ 1,121 | [3],[4],[5] | |
Fair Value | $ 1,558 | [1],[2] | $ 1,285 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | SES Investors, LLC (dba SES Foam) | Building Products Manufacturing | Common Equity (6,000 units) | |||||
Investment Date | [3],[4],[5],[9],[11],[19] | Sep. 08, 2016 | |||
Cost | [3],[4],[5],[11],[19] | $ 404 | |||
Fair Value | [3],[4],[5],[6],[11],[19] | $ 4,089 | |||
Percent of Net Assets | [3],[4],[5],[11],[19] | 1% | |||
Non-control/Non-affiliate Investments | SpendMend LLC | Business Services | Common Equity (1,000,000 units) | |||||
Investment Date | [3],[4],[5],[9] | Jan. 08, 2018 | |||
Cost | [3],[4],[5] | $ 994 | |||
Fair Value | [3],[4],[5],[6] | $ 6,257 | |||
Percent of Net Assets | [3],[4],[5] | 1% | |||
Non-control/Non-affiliate Investments | Sonicwall US Holdings, Inc. | Information Technology Services | Second Lien Debt | |||||
Variable Index Floor | [1],[13],[30],[57] | (0.00%) | |||
Investment interest rate, Cash | [1],[13],[15],[30] | 12.20% | |||
Investment interest rate, PIK | [1],[13],[15],[30] | 0% | |||
Investment Date | [1],[2],[13],[15] | Sep. 06, 2022 | |||
Maturity | [1],[13] | May 18, 2026 | |||
Principal Amount | [1],[13] | $ 4,774 | |||
Cost | [1],[13] | 4,508 | |||
Fair Value | [1],[2],[13] | $ 4,733 | |||
Percent of Net Assets | [1],[13] | 1% | |||
Non-control/Non-affiliate Investments | Sonicwall US Holdings, Inc. | Information Technology Services | Second Lien Debt | LIBOR | |||||
Variable Index Spread | [1],[13],[30],[57] | 7.50% | |||
Non-control/Non-affiliate Investments | Suited Connector LLC | Information Technology Services | |||||
Cost | $ 16,683 | [1] | $ 16,671 | [3],[4],[5] | |
Fair Value | $ 10,738 | [1],[2] | $ 16,671 | [3],[4],[5],[6] | |
Percent of Net Assets | 2% | [1] | 3% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Suited Connector LLC | Information Technology Services | Second Lien Debt | |||||
Investment interest rate, Cash | 12% | [1],[15],[30],[31] | 12% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[15],[30],[31] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Oct. 29, 2021 | [1],[2],[15],[31] | Oct. 29, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Jun. 01, 2028 | [1],[31] | Jun. 01, 2028 | [3],[4],[5],[11] | |
Principal Amount | $ 16,000 | [1],[31] | $ 16,000 | [3],[4],[5],[11] | |
Cost | 15,933 | [1],[31] | 15,921 | [3],[4],[5],[11] | |
Fair Value | $ 10,726 | [1],[2],[31] | $ 15,921 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Suited Connector LLC | Information Technology Services | Common Equity (7,500 units) | |||||
Investment Date | Dec. 01, 2021 | [1],[2],[13],[15],[18] | Dec. 01, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 750 | [1],[13],[18] | $ 750 | [3],[4],[5],[11],[19] | |
Fair Value | 12 | [1],[2],[13],[18] | $ 750 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | |||||
Cost | [1] | 20,737 | |||
Fair Value | [1],[2] | $ 22,742 | |||
Percent of Net Assets | [1] | 5% | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Subordinated Debt | |||||
Investment interest rate, Cash | [1],[13],[15],[30] | 7.25% | |||
Investment interest rate, PIK | [1],[13],[15],[30] | 7.25% | |||
Investment Date | [1],[2],[13],[15] | Mar. 04, 2022 | |||
Maturity | [1],[13] | Sep. 04, 2027 | |||
Principal Amount | [1],[13] | $ 2,656 | |||
Cost | [1],[13] | 2,643 | |||
Fair Value | [1],[2],[13] | $ 3,750 | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30],[57] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[30] | 11.57% | |||
Investment interest rate, PIK | [1],[13],[15],[30] | 0% | |||
Investment Date | [1],[2],[13],[15] | Mar. 04, 2022 | |||
Maturity | [1],[13] | Mar. 04, 2027 | |||
Principal Amount | [1],[13] | $ 15,600 | |||
Cost | [1],[13] | 15,527 | |||
Fair Value | [1],[2],[13] | $ 15,600 | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30],[57] | 7.75% | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Delayed Draw Commitment ($3,000 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[30],[54],[57] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[30],[54] | 11.57% | |||
Investment interest rate, PIK | [1],[13],[15],[30],[54] | 0% | |||
Investment Date | [1],[2],[13],[15],[54] | Mar. 04, 2022 | |||
Maturity | [1],[13],[54] | Mar. 04, 2027 | |||
Cost | [1],[13],[54] | $ (14) | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Delayed Draw Commitment ($3,000 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[30],[54],[57] | 7.75% | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Preferred Equity (Series A) (1,000 units) | |||||
Investment Date | [1],[2],[13],[15],[18] | Mar. 04, 2022 | |||
Cost | [1],[13],[18] | $ 1,000 | |||
Fair Value | [1],[2],[13],[18] | $ 1,792 | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Revolving Loan ($2,400 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[24],[30],[57] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[24],[30] | 11.57% | |||
Investment interest rate, PIK | [1],[13],[15],[24],[30] | 0% | |||
Investment Date | [1],[2],[13],[15],[24] | Mar. 04, 2022 | |||
Maturity | [1],[13],[24] | Mar. 04, 2027 | |||
Principal Amount | [1],[13],[24] | $ 1,600 | |||
Cost | [1],[13],[24] | 1,581 | |||
Fair Value | [1],[2],[13],[24] | $ 1,600 | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Revolving Loan ($2,400 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[24],[30],[57] | 7.75% | |||
Non-control/Non-affiliate Investments | TransGo, LLC | Component Manufacturing | Common Equity (500 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Feb. 28, 2017 | |||
Cost | [3],[4],[5],[11] | $ 428 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 1,878 | |||
Percent of Net Assets | [3],[4],[5],[11] | 1% | |||
Non-control/Non-affiliate Investments | The Tranzonic Companies | Specialty Distribution | |||||
Cost | [3],[4],[5] | $ 565 | |||
Fair Value | [3],[4],[5],[6] | $ 2,033 | |||
Percent of Net Assets | [3],[4],[5] | 1% | |||
Non-control/Non-affiliate Investments | The Tranzonic Companies | Specialty Distribution | Preferred Equity (5,653 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Mar. 27, 2018 | |||
Cost | [3],[4],[5],[11] | $ 565 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 802 | |||
Non-control/Non-affiliate Investments | The Tranzonic Companies | Specialty Distribution | Common Equity (1 units) | |||||
Investment Date | [3],[4],[5],[9],[11] | Mar. 27, 2018 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 1,231 | |||
Non-control/Non-affiliate Investments | Tiger Calcium Services Inc. | Transportation Services | Second Lien Debt | |||||
Investment interest rate, Cash | [1],[13],[15],[30],[80],[81] | 12.50% | |||
Investment interest rate, PIK | [1],[13],[15],[30],[80],[81] | 0% | |||
Investment Date | [1],[2],[13],[15],[30],[80],[81] | Dec. 21, 2022 | |||
Maturity | [1],[13],[30],[80],[81] | May 31, 2025 | |||
Principal Amount | [1],[13],[30],[80],[81] | $ 12,500 | |||
Cost | [1],[13],[30],[80],[81] | 12,438 | |||
Fair Value | [1],[2],[13],[30],[80],[81] | $ 12,438 | |||
Percent of Net Assets | [1],[13],[30],[80],[81] | 3% | |||
Non-control/Non-affiliate Investments | UBEO, LLC | Business Services | Common Equity (705,000 units) | |||||
Investment Date | Apr. 03, 2018 | [1],[2],[13],[15],[18] | Apr. 03, 2018 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 655 | [1],[13],[18] | $ 645 | [3],[4],[5],[11],[19] | |
Fair Value | $ 1,504 | [1],[2],[13],[18] | $ 884 | [3],[4],[5],[6],[11],[19] | |
Percent of Net Assets | 0% | [1],[13],[18] | 0% | [3],[4],[5],[11],[19] | |
Non-control/Non-affiliate Investments | United Biologics, LLC | Healthcare Services | |||||
Cost | $ 1,573 | [1],[13],[82] | $ 1,574 | [3],[4],[5] | |
Percent of Net Assets | 0% | [1],[13],[82] | 0% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | United Biologics, LLC | Healthcare Services | Preferred Equity (98,377 units) | |||||
Investment Date | Apr. 01, 2012 | [1],[2],[13],[15],[18] | Apr. 01, 2012 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 1,008 | [1],[13],[18] | $ 1,008 | [3],[4],[5],[11],[19] | |
Non-control/Non-affiliate Investments | United Biologics, LLC | Healthcare Services | Warrant (57,469 units) | |||||
Investment Date | Mar. 05, 2012 | [1],[2],[13],[15],[82] | Mar. 05, 2012 | [3],[4],[5],[9],[11],[25] | |
Cost | $ 565 | [1],[13],[82] | $ 566 | [3],[4],[5],[11],[25] | |
Non-control/Non-affiliate Investments | UPG Company, LLC | Component Manufacturing | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[11],[28],[83] | 0.50% | |||
Investment interest rate, Cash | [3],[4],[5],[11],[17],[83] | 8.75% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17],[83] | 0% | |||
Investment Date | [3],[4],[5],[9],[11],[83] | Jun. 21, 2021 | |||
Maturity | [3],[4],[5],[11],[83] | Jun. 21, 2024 | |||
Principal Amount | [3],[4],[5],[11],[83] | $ 12,000 | |||
Cost | [3],[4],[5],[11],[83] | 11,922 | |||
Fair Value | [3],[4],[5],[6],[11],[83] | $ 12,000 | |||
Percent of Net Assets | [3],[4],[5],[11],[83] | 3% | |||
Non-control/Non-affiliate Investments | UPG Company, LLC | Component Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28],[83] | 8.25% | |||
Non-control/Non-affiliate Investments | Virginia Tile Company, LLC | Specialty Distribution | Common Equity (17 units) | |||||
Investment Date | Dec. 19, 2014 | [1],[2],[13],[15] | Dec. 19, 2014 | [3],[4],[5],[9],[11] | |
Cost | $ 79 | [1],[13] | $ 342 | [3],[4],[5],[11] | |
Fair Value | $ 845 | [1],[2],[13] | $ 933 | [3],[4],[5],[6],[11] | |
Percent of Net Assets | 0% | [1],[13] | 0% | [3],[4],[5],[11] | |
Non-control/Non-affiliate Investments | Virtex Enterprises, LP | Component Manufacturing | Second Lien Debt | |||||
Variable Index Floor | [1],[30],[57] | 1% | |||
Investment interest rate, Cash | [1],[15],[30] | 14.48% | |||
Investment interest rate, PIK | [1],[15],[30] | 0% | |||
Investment Date | [1],[2],[15] | Apr. 13, 2022 | |||
Maturity | [1] | Oct. 13, 2027 | |||
Principal Amount | [1] | $ 11,002 | |||
Cost | [1] | 10,906 | |||
Fair Value | [1],[2] | $ 5,887 | |||
Percent of Net Assets | [1] | 1% | |||
Non-control/Non-affiliate Investments | Virtex Enterprises, LP | Component Manufacturing | Second Lien Debt | SOFR | |||||
Variable Index Spread | [1],[30],[57] | 9.75% | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | |||||
Cost | [1] | $ 10,345 | |||
Fair Value | [1],[2] | $ 10,413 | |||
Percent of Net Assets | [1] | 2% | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | First Lien Debt | |||||
Variable Index Floor | 1.50% | [1],[13],[30],[57],[84] | 1.25% | [3],[4],[5],[11],[28],[85] | |
Investment interest rate, Cash | 11.21% | [1],[13],[15],[30],[84] | 7.75% | [3],[4],[5],[11],[17],[85] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[30],[84] | 0% | [3],[4],[5],[11],[17],[85] | |
Investment Date | Feb. 28, 2020 | [1],[2],[13],[15],[84] | Feb. 28, 2020 | [3],[4],[5],[9],[11],[85] | |
Maturity | Dec. 23, 2024 | [1],[13],[84] | Dec. 23, 2024 | [3],[4],[5],[11],[85] | |
Principal Amount | $ 9,616 | [1],[13],[84] | $ 9,625 | [3],[4],[5],[11],[85] | |
Cost | 9,554 | [1],[13],[84] | 9,532 | [3],[4],[5],[11],[85] | |
Fair Value | $ 9,615 | [1],[2],[13],[84] | $ 9,625 | [3],[4],[5],[6],[11],[85] | |
Percent of Net Assets | [3],[4],[5],[11],[85] | 2% | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28],[85] | 6.50% | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | First Lien Debt | SOFR | |||||
Variable Index Spread | [1],[13],[30],[57],[84] | 6.50% | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | Delayed Draw Commitment ($2,702 unfunded commitment) | |||||
Variable Index Floor | [1],[13],[18],[30],[57],[86] | 1.50% | |||
Investment interest rate, Cash | [1],[13],[15],[18],[30],[86] | 9.71% | |||
Investment interest rate, PIK | [1],[13],[15],[18],[30],[86] | 0% | |||
Investment Date | [1],[2],[13],[15],[18],[86] | Jun. 29, 2022 | |||
Maturity | [1],[13],[18],[86] | Dec. 23, 2024 | |||
Principal Amount | [1],[13],[18],[86] | $ 798 | |||
Cost | [1],[13],[18],[86] | 791 | |||
Fair Value | [1],[2],[13],[18],[86] | $ 798 | |||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | Delayed Draw Commitment ($2,702 unfunded commitment) | SOFR | |||||
Variable Index Spread | [1],[13],[18],[30],[57],[86] | 5% | |||
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | |||||
Cost | $ 10,873 | [1] | $ 10,834 | [3],[4],[5] | |
Fair Value | $ 11,000 | [1],[2] | $ 11,000 | [3],[4],[5],[6] | |
Percent of Net Assets | 2% | [1] | 2% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | LIBOR | |||||
Variable Index Spread | [1],[30],[57] | 13% | |||
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[13],[18],[30],[57],[87] | 1% | [3],[4],[5],[11],[28],[88] | |
Investment interest rate, Cash | 16.75% | [1],[13],[15],[18],[30],[87] | 13% | [3],[4],[5],[11],[17],[88] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[18],[30],[87] | 0% | [3],[4],[5],[11],[17],[88] | |
Investment Date | Apr. 01, 2021 | [1],[2],[13],[15],[18],[87] | Apr. 01, 2021 | [3],[4],[5],[9],[11],[88] | |
Maturity | Apr. 01, 2026 | [1],[13],[18],[87] | Apr. 01, 2026 | [3],[4],[5],[11],[88] | |
Principal Amount | $ 4,000 | [1],[13],[18],[87] | $ 4,000 | [3],[4],[5],[11],[88] | |
Cost | 3,907 | [1],[13],[18],[87] | 3,879 | [3],[4],[5],[11],[88] | |
Fair Value | $ 4,000 | [1],[2],[13],[18],[87] | $ 4,000 | [3],[4],[5],[6],[11],[88] | |
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | First Lien Debt | LIBOR | |||||
Variable Index Spread | 12% | [1],[13],[18],[30],[57],[87] | 12% | [3],[4],[5],[11],[28],[88] | |
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | First Lien Debt | |||||
Variable Index Floor | 1% | [1],[30],[57] | 1% | [3],[4],[5],[28] | |
Investment interest rate, Cash | 17.75% | [1],[15],[30] | 14% | [3],[4],[5],[17] | |
Investment interest rate, PIK | 0% | [1],[15],[30] | 0% | [3],[4],[5],[17] | |
Investment Date | Apr. 01, 2021 | [1],[2],[15] | Apr. 01, 2021 | [3],[4],[5],[9] | |
Maturity | Apr. 01, 2026 | [1] | Apr. 01, 2026 | [3],[4],[5] | |
Principal Amount | $ 7,000 | [1] | $ 7,000 | [3],[4],[5] | |
Cost | 6,966 | [1] | 6,955 | [3],[4],[5] | |
Fair Value | $ 7,000 | [1],[2] | $ 7,000 | [3],[4],[5],[6] | |
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[28] | 13% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [1],[30],[31],[57],[89] | 1% | |||
Investment interest rate, Cash | [1],[15],[30],[31],[89] | 11.97% | |||
Investment interest rate, PIK | [1],[15],[30],[31],[89] | 0% | |||
Investment Date | [1],[2],[15],[31],[89] | Feb. 10, 2021 | |||
Maturity | [1],[31],[89] | Feb. 09, 2026 | |||
Principal Amount | [1],[31],[89] | $ 8,316 | |||
Cost | [1],[31],[89] | 8,279 | |||
Fair Value | [1],[2],[31],[89] | $ 8,316 | |||
Percent of Net Assets | [1],[31],[89] | 2% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [1],[30],[31],[57],[89] | 7.25% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt ($2,000 unfunded commitment) | |||||
Variable Index Floor | [3],[4],[5],[27],[28],[90] | 1% | |||
Investment interest rate, Cash | [3],[4],[5],[17],[27],[90] | 8.25% | |||
Investment interest rate, PIK | [3],[4],[5],[17],[27],[90] | 0% | |||
Investment Date | [3],[4],[5],[9],[27],[90] | Feb. 10, 2021 | |||
Maturity | [3],[4],[5],[27],[90] | Feb. 09, 2026 | |||
Principal Amount | [3],[4],[5],[27],[90] | $ 6,500 | |||
Cost | [3],[4],[5],[27],[90] | 6,460 | |||
Fair Value | [3],[4],[5],[6],[27],[90] | $ 6,500 | |||
Percent of Net Assets | [3],[4],[5],[27],[90] | 1% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt ($2,000 unfunded commitment) | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[27],[28],[90] | 7.25% | |||
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | |||||
Cost | $ 27,418 | [1] | $ 20,403 | [3],[4],[5] | |
Fair Value | $ 28,368 | [1],[2] | $ 20,403 | [3],[4],[5],[6] | |
Percent of Net Assets | 6% | [1] | 4% | [3],[4],[5] | |
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Second Lien Debt | |||||
Variable Index Floor | 0.75% | [1],[13],[30],[57] | 0.75% | [3],[4],[5],[11],[28] | |
Investment interest rate, Cash | 11.73% | [1],[13],[15],[30] | 7.75% | [3],[4],[5],[11],[17] | |
Investment interest rate, PIK | 0% | [1],[13],[15],[30] | 0% | [3],[4],[5],[11],[17] | |
Investment Date | Aug. 02, 2021 | [1],[2],[13],[15] | Aug. 02, 2021 | [3],[4],[5],[9],[11] | |
Maturity | Jul. 26, 2029 | [1],[13] | Jul. 26, 2029 | [3],[4],[5],[11] | |
Principal Amount | $ 27,497 | [1],[13] | $ 20,000 | [3],[4],[5],[11] | |
Cost | 26,398 | [1],[13] | 19,383 | [3],[4],[5],[11] | |
Fair Value | $ 26,534 | [1],[2],[13] | $ 19,383 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Second Lien Debt | LIBOR | |||||
Variable Index Spread | 7% | [1],[13],[30],[57] | 7% | [3],[4],[5],[11],[28] | |
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Common Equity (795,000units) | |||||
Investment Date | Jul. 21, 2021 | [1],[2],[13],[15] | Jul. 21, 2021 | [3],[4],[5],[9],[11] | |
Cost | $ 795 | [1],[13] | $ 795 | [3],[4],[5],[11] | |
Fair Value | $ 942 | [1],[2],[13] | $ 795 | [3],[4],[5],[6],[11] | |
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Common Equity (752,380 units) | |||||
Investment Date | Jul. 26, 2021 | [1],[2],[13],[15],[18] | Jul. 26, 2021 | [3],[4],[5],[9],[11],[19] | |
Cost | $ 225 | [1],[13],[18] | $ 225 | [3],[4],[5],[11],[19] | |
Fair Value | 892 | [1],[2],[13],[18] | $ 225 | [3],[4],[5],[6],[11],[19] | |
Non-control/Non-affiliate Investments | Xeeva, Inc. | Information Technology Services | First Lien Debt | |||||
Variable Index Floor | [3],[4],[5],[11],[28] | 1.50% | |||
Investment interest rate, Cash | [3],[4],[5],[11],[17] | 12% | |||
Investment interest rate, PIK | [3],[4],[5],[11],[17] | 0% | |||
Investment Date | [3],[4],[5],[9],[11] | Feb. 11, 2021 | |||
Maturity | [3],[4],[5],[11] | Feb. 11, 2026 | |||
Principal Amount | [3],[4],[5],[11] | $ 8,900 | |||
Cost | [3],[4],[5],[11] | 8,857 | |||
Fair Value | [3],[4],[5],[6],[11] | $ 8,900 | |||
Percent of Net Assets | [3],[4],[5],[11] | 2% | |||
Non-control/Non-affiliate Investments | Xeeva, Inc. | Information Technology Services | First Lien Debt | LIBOR | |||||
Variable Index Spread | [3],[4],[5],[11],[28] | 10.50% | |||
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | |||||
Cost | [1] | 4,976 | |||
Fair Value | [1],[2] | $ 4,618 | |||
Percent of Net Assets | [1] | 1% | |||
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | First Lien Debt | |||||
Variable Index Floor | [1],[13],[30],[57] | 1% | |||
Investment interest rate, Cash | [1],[13],[15],[30] | 15.76% | |||
Investment interest rate, PIK | [1],[13],[15],[30] | 0% | |||
Investment Date | [1],[2],[13],[15] | Mar. 18, 2022 | |||
Maturity | [1],[13] | Mar. 18, 2027 | |||
Principal Amount | [1],[13] | $ 5,000 | |||
Cost | [1],[13] | 4,807 | |||
Fair Value | [1],[2],[13] | $ 4,610 | |||
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | First Lien Debt | LIBOR | |||||
Variable Index Spread | [1],[13],[30],[57] | 10% | |||
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | Common Equity (4,987 units) | |||||
Investment Date | [1],[2],[13],[15],[18] | Mar. 18, 2022 | |||
Cost | [1],[2],[13],[18] | $ 169 | |||
Fair Value | [1],[2],[13],[18] | $ 8 | |||
[1] See Note 3 to the consolidated financial statements for portfolio composition by geographic location. Investment date represents the date of the initial investment in the security. All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. Except as otherwise noted, the Company’s investment portfolio is comprised of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs. This investment is classified as a Level 1 investment. For further detail on the fair value measurements, see Note 4 to the consolidated financial statements. As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. Investment date represents the date of the initial investment in the security. Investment in portfolio company that has sold its operations and is in the process of winding down. Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). Investment in portfolio company that has sold its operations and is in the process of winding down. Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). Investment was on non-accrual status as of December 31, 2022. Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of December 31, 2022. Generally, payment-in-kind interest can be paid-in-kind or all in cash. Investment was on PIK only non-accrual status as of December 31, 2021, meaning the Company has ceased recognizing PIK interest income on the investment. Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of December 31, 2021. Generally, payment-in-kind interest can be paid-in-kind or all in cash. Investment is held by a taxable subsidiary of the Company. Investment is held by a taxable subsidiary of the Company. As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. As defined in the 1940 Act, the Company is deemed to be an "Affiliated Person" of this portfolio company because it owns 5 % or more of the portfolio company's outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements. The disclosed commitment represents the unfunded amount as of December 31, 2021. The Company is earning 0.50 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded. Except as otherwise noted, the Company’s investment portfolio is comprised of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs. The disclosed commitment represents the unfunded amount as of December 31, 2022. The Company is earning 0.50 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate that will be earned if the commitment is funded. Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any. Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any. The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). Variable rate investments bear interest at a rate indexed to LIBOR (L) or Prime (P), which are reset monthly, bimonthly, quarterly, or semi-annually. Certain variable rate investments also include a LIBOR or Prime interest rate floor. For each investment, the Company has provided the spread over the reference rate and the LIBOR or Prime floor, if any, as of December 31, 2021. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.54 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. Variable rate investments bear interest at a rate indexed to LIBOR (L), Prime (P) or SOFR (S), which are reset monthly, bimonthly, quarterly, or semi-annually. Certain variable rate investments also include a LIBOR, Prime or SOFR interest rate floor. For each investment, the Company has provided the spread over the reference rate and the LIBOR, Prime or SOFR floor, if any, as of December 31, 2022. The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.60 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.21 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. The Company sold a participating interest of approximately $ 4.0 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with GAAP, the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. The Company sold a participating interest of approximately $ 4.0 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.65 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.86 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.76 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.07 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. The Company sold a participating interest of approximately $ 0.3 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. The Company sold a participating interest of approximately $ 0.3 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.28 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.68 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.11 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.56 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.26 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.64 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.62 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 1.63 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 1.74 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. This investment is classified as a Level 1 investment. For further detail on the fair value measurements, see Note 4 to the consolidated financial statements. The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company can not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70 % of the Company's total assets. As of December 31, 2021, total non-qualifying assets at fair value represented 0.04 % of the Company's total assets calculated in accordance with the 1940 Act. The disclosed commitment represents the unfunded amount as of December 31, 2022. The Company is earning 1.00 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment. The disclosed commitment represents the unfunded amount as of December 31, 2021. The Company is earning 1.00 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.29 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.24 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.72 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.11 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.05 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.73 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.81 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.53 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.53 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional cash interest amount of 2.93 % and PIK interest amount of 0.98 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional cash interest amount of 2.99 % and PIK interest amount of 1.00 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.11 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.11 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. The Company sold a participating interest of approximately $ 13.5 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with GAAP, the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. The Company sold a participating interest of approximately $ 13.5 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.83 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.76 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. Warrant entitles the Company to purchase 4.79 % of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional cash interest amount of 2.25 % and PIK interest amount of 1.87 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional cash interest amount of 1.25 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.32 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. The headquarters of this portfolio company is located in Canada. The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company can not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70 % of the Company's total assets. As of December 31, 2022, total non-qualifying assets at fair value represented 1.36 % of the Company's total assets calculated in accordance with the 1940 Act. Warrant entitles the Company to purchase 4.79 % of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.46 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 1.77 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.43 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.75 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.72 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.54 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.45 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.70 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. |
Consolidated Schedule of Inve_2
Consolidated Schedule of Investments (Parenthetical) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Secured borrowings | $ 16,880,000 | $ 17,637,000 | |||
Additional interest rate on investments, PIK | 0.04% | ||||
Interest earning on unfunded balance commitment | 0.50% | 0.50% | |||
Ownership percentage of outstanding voting securities in portfolio investment | 25% | ||||
Minimum | |||||
Ownership percentage of outstanding voting securities in portfolio investment | 5% | 5% | |||
First Lien Debt | |||||
Secured borrowings | $ 300,000 | $ 300,000 | |||
Control Investments | |||||
Ownership percentage of outstanding voting securities in portfolio investment | 25% | ||||
Control Investments | Mesa Line Services, LLC | Utilities: Services | Common Equity (10 shares) | |||||
Investment in number of shares or units | [1],[2],[3] | 10 | |||
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (2,522 units) | |||||
Investment in number of shares or units | 2,522 | [4],[5],[6],[7],[8],[9] | 2,522 | [1],[2],[3] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (425,508 units) | |||||
Investment in number of shares or units | 425,508 | [4],[5],[6],[7],[9] | 425,508 | [1],[2],[3] | |
Control Investments | US GreenFiber, LLC | Building Products Manufacturing | Common Equity (1,022,813 units) | |||||
Investment in number of shares or units | 1,022,813 | [4],[5],[6],[7],[8],[9] | 1,022,813 | [1],[2],[3] | |
Control Investments | EBL, LLC (EbLens) | Retail | Common Equity (75,000 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9],[10],[11] | 75,000 | |||
Control Investments | EBL, LLC (EbLens) | Retail | Common Equity (375 units) ($375 unfunded commitment) | |||||
Investment in number of shares or units | [4],[5],[6],[9],[10] | 375 | |||
Unfunded commitment | [4],[5],[6],[9],[10] | $ 375,000 | |||
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (5,690 units) | |||||
Investment in number of shares or units | 5,690 | [4],[5],[6],[8],[9],[12],[13] | 5,690 | [1],[2],[3],[14] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (7,113 units) | |||||
Investment in number of shares or units | 7,113 | [4],[5],[6],[8],[9],[12],[13] | 7,113 | [1],[2],[3],[14] | |
Affiliate Investments | Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Building Products Manufacturing | Common Equity (2,012 units) | |||||
Investment in number of shares or units | 2,012 | [4],[5],[6],[8],[9],[12],[13] | 2,012 | [1],[2],[3],[14] | |
Affiliate Investments | FAR Research Inc. | Specialty Chemicals | Common Equity (1,396 units) | |||||
Investment in number of shares or units | [1],[2],[3],[14] | 1,396 | |||
Affiliate Investments | Medsurant Holdings, LLC | Healthcare Services | Preferred Equity (84,997 units) | |||||
Investment in number of shares or units | 84,997 | [4],[5],[6],[8],[9],[13] | 84,997 | [1],[2],[3],[14] | |
Affiliate Investments | Medsurant Holdings, LLC | Healthcare Services | Warrant (252,588 units) | |||||
Investment in number of shares or units | 252,588 | [4],[5],[6],[8],[9],[13],[15] | 252,588 | [1],[2],[3],[14] | |
Affiliate Investments | Mirage Trailers LLC | Utility Equipment Manufacturing | Common Equity (2,500,000 shares) | |||||
Investment in number of shares or units | [1],[2],[3],[14] | 2,500,000 | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | Common Equity - Class A-2 (42,500 units) | |||||
Investment in number of shares or units | [1],[2],[3],[14] | 4,250 | |||
Affiliate Investments | Pfanstiehl, Inc | Healthcare Products | Common Equity (2,550 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9],[13] | 2,550 | |||
Affiliate Investments | Pinnergy, Ltd. | Oil & Gas Services | Common Equity Class A Two [Member] | |||||
Investment in number of shares or units | [1],[2],[3],[14] | 42,500 | |||
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | First Lien Debt | |||||
Additional interest rate on investments | 5.60% | ||||
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (41,290 units) | |||||
Investment in number of shares or units | 38,493 | [4],[5],[6],[9] | 41,290 | [1],[2],[3],[14] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (12,035 units) | |||||
Investment in number of shares or units | 12,035 | [4],[5],[6],[9] | 12,035 | [1],[2],[3],[14] | |
Affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | Common Equity (4,921 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 4,663 | |||
Affiliate Investments | Steward Holding LLC (dba Steward Advanced Materials) | Aerospace & Defense Manufacturing | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | 1,000,000 | [4],[5],[6] | 1,000,000 | [1],[2],[3],[14] | |
Non-control/Non-affiliate Investments | |||||
Additional interest rate on investments, PIK | 1.87% | ||||
Interest earning on unfunded balance commitment | 1% | ||||
Non-control/Non-affiliate Investments | First Lien Debt | |||||
Additional interest rate on investments, PIK | 1% | ||||
Non-control/Non-affiliate Investments | Component Manufacturing | |||||
Additional interest rate on investments | 7.05% | ||||
Non-control/Non-affiliate Investments | Business Services | |||||
Secured borrowings | $ 13,500,000 | ||||
Non-control/Non-affiliate Investments | Business Services | First Lien Debt | |||||
Additional interest rate on investments | 4.83% | ||||
Non-control/Non-affiliate Investments | Specialty Distribution | First Lien Debt | |||||
Additional interest rate on investments | 4.84% | ||||
Non-control/Non-affiliate Investments | Consumer Products | First Lien Debt | |||||
Additional interest rate on investments | 3.43% | ||||
Non-control/Non-affiliate Investments | Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 4.54% | ||||
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | First Lien Debt | |||||
Secured borrowings | $ 4,000 | ||||
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | 1,000,000 | [4],[5],[6] | 1,000,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 2.21% | ||||
Non-control/Non-affiliate Investments | 2KDirect, Inc. (dba iPromote) | Information Technology Services | First Lien Debt | |||||
Secured borrowings | $ 4,000,000 | ||||
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Common Equity (500,000 shares) | |||||
Investment in number of shares or units | 500,000 | [4],[5],[6],[9] | 500,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | |||||
Unfunded commitment | $ 1,000,000 | [4],[5],[6],[9],[13] | $ 1,000,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Warrant (150,000 shares) | |||||
Investment in number of shares or units | 150,000 | [4],[5],[6],[9],[15] | 150,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Acendre Midco, Inc. | Information Technology Services | Preferred Equity (77,016 shares) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 77,016 | |||
Non-control/Non-affiliate Investments | Aeronix Inc. | First Lien Debt | |||||
Additional interest rate on investments | 4.86% | ||||
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | Common Equity (500 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 500 | |||
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | Common Equity (549 units) | |||||
Investment in number of shares or units | [4],[5],[6] | 549 | |||
Non-control/Non-affiliate Investments | Aeronix Inc. | Aerospace & Defense Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 4.65% | ||||
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | Common Equity (39,443 units) | |||||
Investment in number of shares or units | 39,443 | [4],[5],[6],[8],[9] | 39,443 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Allredi, LLC (fka Marco Group International OpCo, LLC) | Industrial Cleaning & Coatings | Common Equity (570,636 units) | |||||
Investment in number of shares or units | 570,636 | [4],[5],[6],[8],[9] | 570,636 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | |||||
Additional interest rate on investments | 3.76% | ||||
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | First Lien Debt | |||||
Additional interest rate on investments | 4.07% | ||||
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (141 units) | |||||
Investment in number of shares or units | 141 | [4],[5],[6],[8],[9] | 141 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (74 units) | |||||
Investment in number of shares or units | 74 | [4],[5],[6],[8],[9] | 74 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (207 units) | |||||
Investment in number of shares or units | 207 | [4],[5],[6],[8],[9] | 207 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | American AllWaste LLC (dba WasteWater Transport Services) | Environmental Industries | Preferred Equity (500 units) | |||||
Investment in number of shares or units | 500 | [4],[5],[6],[8],[9] | 500 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 3.28% | 3.50% | |||
Non-control/Non-affiliate Investments | AmeriWater, LLC | Component Manufacturing | Common Equity (1,000 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 1,000 | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | Common Equity (750 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 750 | |||
Non-control/Non-affiliate Investments | AOM Intermediate Holdco, LLC (dba AllOver Media) | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 4.68% | ||||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | Common Equity (1,200 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 1,200 | |||
Non-control/Non-affiliate Investments | APM Intermediate Holdings, LLC (dba Artistic Paver Manufacturing, Inc.) | Building Products Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 3.50% | ||||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | |||||
Additional interest rate on investments | 7.56% | ||||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Common Equity (22 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 22 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Common Equity (24 units) | |||||
Investment in number of shares or units | [4],[5],[6] | 24 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 3.11% | ||||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Preferred Equity (1,104,539 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 1,104,539 | |||
Non-control/Non-affiliate Investments | Applied Data Corporation | Information Technology Services | Preferred Equity (1,184,711 units) | |||||
Investment in number of shares or units | [4],[5],[6] | 1,184,711 | |||
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | Common Equity (500 units) | |||||
Investment in number of shares or units | 500 | [4],[5],[6],[9] | 500 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Auto CRM LLC (dba Dealer Holdings) | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 3.26% | ||||
Non-control/Non-affiliate Investments | AVC Investors, LLC (dba Auveco) | Specialty Distribution | Common Equity (5,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 5,000 | |||
Non-control/Non-affiliate Investments | B&B Roadway and Security Solutions, LLC | Component Manufacturing | Common Equity (50,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 50,000 | |||
Non-control/Non-affiliate Investments | Bandon Fitness (Texas), Inc. | Retail | Common Equity (545,810 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 545,810 | |||
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | Common Equity (500,000 Units) | |||||
Investment in number of shares or units | 500,000 | [4],[5],[6],[8],[9] | 500,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Bedford Precision Parts LLC | Specialty Distribution | First Lien Debt | |||||
Additional interest rate on investments | 4.24% | ||||
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | Common Equity (495 shares) | |||||
Investment in number of shares or units | 495 | [4],[5],[6],[9] | 495 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 1.63% | 1.74% | |||
Non-control/Non-affiliate Investments | Cardback Intermediate LLC (dba Chargeback Gurus) | Information Technology Services | Preferred Equity (495 shares) | |||||
Investment in number of shares or units | 495 | [4],[5],[6],[9] | 495 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Aerospace & Defense Manufacturing | Common and Preferred Equity Units | |||||
Percentage of minimum qualifying assets to purchase non qualifying assets | 70% | ||||
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Common Equity (521,021 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 521,021 | |||
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Common Equity (14,201 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 14,201 | |||
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Common and Preferred Equity Units | |||||
Percentage of non-qualifying assets fair value | 1.36% | ||||
Percentage of minimum qualifying assets to purchase non qualifying assets | 70% | ||||
Non-control/Non-affiliate Investments | Cardboard Box LLC (dba Anthony's Coal Fired Pizza) | Restaurants | Preferred Equity (9,787 Unit) | |||||
Investment in number of shares or units | 9,787 | [4],[5],[6],[9] | 1,043,133 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | Common Equity (563 Shares) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 563 | |||
Non-control/Non-affiliate Investments | CIH Intermediate, LLC | Business Services | Preferred Equity (563 shares) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 563 | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($162 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9] | $ 162,000 | |||
Non-control/Non-affiliate Investments | Combined Systems, Inc. | Aerospace & Defense Manufacturing | Revolving Loan ($605 unfunded commitment) | |||||
Unfunded commitment | [1],[2],[3] | $ 605,000 | |||
Non-control/Non-affiliate Investments | Comply365, LLC | Aerospace & Defense Manufacturing | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | 1,000,000 | [4],[5],[6] | 1,000,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | CRS Solutions Holdings, LLC (dba CRS Texas) | Business Services | Common Equity (538,875 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 538,875 | |||
Non-control/Non-affiliate Investments | CRS Solutions Holdings, LLC (dba CRS Texas) | Business Services | Common Equity (Class A Units) (574,929 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 574,929 | |||
Non-control/Non-affiliate Investments | Dataguise, Inc. | Information Technology Services | Common Equity (909 shares) | |||||
Investment in number of shares or units | 909 | [4],[5],[6],[9] | 909 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | Common Equity (573 units) | |||||
Investment in number of shares or units | 573 | [4],[5],[6],[8],[9] | 573 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Diversified Search LLC | Business Services | First Lien Debt | |||||
Additional interest rate on investments | 2.32% | 2.64% | |||
Non-control/Non-affiliate Investments | EBL, LLC (EbLens) | Retail | Common Equity (75,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 75,000 | |||
Non-control/Non-affiliate Investments | ECM Industries, LLC | Component Manufacturing | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | 1,000,000 | [4],[5],[6],[8],[9] | 1,000,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Elements Brands, LLC | Revolving Loan ($838 unfunded commitment) | Consumer Products | |||||
Unfunded commitment | [1],[2],[3] | $ 838,000 | |||
Non-control/Non-affiliate Investments | Fishbowl Solutions, LLC | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 2.72% | ||||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Common Equity (Class B Units) (124 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 124 | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Preferred Equity (Class A Units) (46 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 46 | |||
Non-control/Non-affiliate Investments | Frontline Food Services, LLC (f/k/a Accent Food Services, LLC) | Vending Equipment Manufacturing | Preferred Equity (Class C Units) (100 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 100 | |||
Non-control/Non-affiliate Investments | Global Plasma Solutions, Inc | Component Manufacturing | Common Equity (947 shares) | |||||
Investment in number of shares or units | 947 | [4],[5],[6],[9] | 947 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | Common Equity (515,625 units) | |||||
Investment in number of shares or units | 515,625 | [4],[5],[6],[8],[9] | 515,625 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | GP&C Operations, LLC (dba Garlock Printing and Converting) | Component Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 7.11% | ||||
Non-control/Non-affiliate Investments | Gurobi Optimization, LLC | Information Technology Services | Common Equity (3 shares) | |||||
Investment in number of shares or units | 3 | [4],[5],[6],[8],[9] | 3 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | Common Equity (630 units) | |||||
Investment in number of shares or units | 630 | [4],[5],[6],[8],[9] | 630 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | First Lien Debt | |||||
Additional interest rate on investments | 2.73% | ||||
Non-control/Non-affiliate Investments | Haematologic Technologies, Inc. | Healthcare Services | Tranche Six | |||||
Additional interest rate on investments | 2.81% | ||||
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | Common Equity (750,000 units) | |||||
Investment in number of shares or units | 750,000 | [4],[5],[6],[9] | 750,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Hallmark Health Care Solutions, Inc. | Healthcare Services | First Lien Debt | |||||
Additional interest rate on investments | 3.53% | 3.53% | |||
Non-control/Non-affiliate Investments | Healthfuse, LLC | Healthcare Services | Preferred Equity (197,980 units) | |||||
Investment in number of shares or units | 197,980 | [4],[5],[6] | 197,980 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | Common Equity (3,750 units) | |||||
Investment in number of shares or units | 3,750 | [4],[5],[6] | 3,750 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Hub Acquisition Sub, LLC (dba Hub Pen) | Promotional Products | Preferred Equity (868 units) | |||||
Investment in number of shares or units | 868 | [4],[5],[6],[9] | 868 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | IBH Holdings, LLC (fka Inflexxion, Inc.) | Business Services | Common Equity (150,000 units) | |||||
Investment in number of shares or units | 150,000 | [4],[5],[6],[9] | 150,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | |||||
Additional interest rate on investments | 2.99% | ||||
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 2.93% | ||||
Additional interest rate on investments, PIK | 0.98% | ||||
Non-control/Non-affiliate Investments | Ipro Tech, LLC | Information Technology Services | Preferred Equity (682,075 units) | |||||
Investment in number of shares or units | 682,075 | [4],[5],[6],[9] | 682,075 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | Common Equity (256,964 units) | |||||
Investment in number of shares or units | 256,964 | [4],[5],[6],[8],[9] | 256,964 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | |||||
Additional interest rate on investments | 4.11% | 4.11% | |||
Non-control/Non-affiliate Investments | ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.) | Business Services | First Lien Debt | |||||
Secured borrowings | $ 13,500,000 | ||||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (100 shares) | |||||
Investment in number of shares or units | [1],[2],[3] | 100 | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (5,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 5,000 | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (50 shares) | |||||
Investment in number of shares or units | [1],[2],[3] | 50 | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (378 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 378 | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | 1,000,000 | [4],[5],[6],[9] | 1,000,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | First Lien Debt | |||||
Additional interest rate on investments | 4.83% | ||||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Warrant (7,192 shares) | |||||
Investment in number of shares or units | [1],[2],[3] | 7,192 | |||
Non-control/Non-affiliate Investments | Level Education Group, LLC (dba CE4Less) | Business Services | Warrant (4.79% of Junior Subordinated Notes) | |||||
Warrant or rights percentage of outstanding debt principal to purchase | [1],[2],[3] | 4.79% | |||
Non-control/Non-affiliate Investments | LifeSpan Biosciences, Inc. | Healthcare Products | Common Equity (100 shares) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 100 | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | Common Equity (14,400 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 14,400 | |||
Non-control/Non-affiliate Investments | Micronics Filtration Holdings, Inc. (dba Micronics Engineered Filtration Group, Inc.) | Component Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 4.76% | ||||
Non-control/Non-affiliate Investments | Midwest Transit Equipment, Inc. | Transportation Services | Warrant (4.79% of Junior Subordinated Notes) | |||||
Warrant or rights percentage of outstanding debt principal to purchase | 4.79% | 4.79% | |||
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt | |||||
Unfunded commitment | [4],[5],[6],[13],[16],[17] | $ 3,300,000 | |||
Additional interest rate on investments | 2.25% | ||||
Non-control/Non-affiliate Investments | Netbase Solutions, Inc. (dba Netbase Quid) | Information Technology Services | First Lien Debt ($3,300 unfunded commitment) | |||||
Additional interest rate on investments | 1.25% | ||||
Non-control/Non-affiliate Investments | NGT Acquisition Holdings, LLC (dba Techniks Industries) | Component Manufacturing | Common Equity (378 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 378 | |||
Non-control/Non-affiliate Investments | OnePath Systems, LLC | Information Technology Services | Common Equity (732,542 shares) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 732,542 | |||
Non-control/Non-affiliate Investments | Palmetto Moon, LLC | Retail | Common Equity (499 units) | |||||
Investment in number of shares or units | 499 | [4],[5],[6],[9] | 499 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Pool & Electrical Products, LLC | Specialty Distribution | Common Equity (18,298 units) | |||||
Investment in number of shares or units | 15,000 | [4],[5],[6],[8],[9] | 15,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Common Equity (10,622 shares) | |||||
Investment in number of shares or units | 10,622 | [4],[5],[6],[9] | 10,622 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Preferred Equity (48 shares) | |||||
Investment in number of shares or units | 48 | [4],[5],[6],[9] | 48 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Power Grid Components, Inc. | Specialty Distribution | Preferred Equity (392 shares) | |||||
Investment in number of shares or units | 392 | [4],[5],[6],[9] | 392 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | Common Equity (5,341 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 5,341 | |||
Non-control/Non-affiliate Investments | PowerGrid Services Acquisition, LLC | Utilities: Services | Common Equity (5,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 5,000 | |||
Non-control/Non-affiliate Investments | Prime AE Group, Inc. | Business Services | Preferred Equity (900,000 shares) | |||||
Investment in number of shares or units | 900,000 | [4],[5],[6],[9] | 900,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Pugh Lubricants, LLC | Specialty Distribution | Common Equity (3,062 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 3,062 | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | First Lien Debt ($2,489 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[13],[18] | $ 2,489,000 | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | Subordinated Debt ($417 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[13],[18] | $ 417,000 | |||
Non-control/Non-affiliate Investments | R1 Holdings, LLC (dba RoadOne IntermodaLogistics) | Transportation Services | Common Equity (280,000 units) ($70 unfunded commitment) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 280,000 | |||
Unfunded commitment | [4],[5],[6],[9] | $ 70,000 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class A Units) (10,915 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 10,915 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class F Units) (710 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 710 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class A Units) (8,864 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 8,864 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Common Equity (Class W Units) (710 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 710 | |||
Non-control/Non-affiliate Investments | Rhino Assembly Company, LLC | Specialty Distribution | Delayed Draw Commitment ($875 unfunded commitment) | |||||
Unfunded commitment | [1],[2],[3] | $ 875,000 | |||
Non-control/Non-affiliate Investments | Road Safety Services, Inc. | Business Services | Common Equity (779 units) | |||||
Investment in number of shares or units | 779 | [4],[5],[6] | 779 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | SES Investors, LLC (dba SES Foam) | Building Products Manufacturing | Common Equity (6,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 6,000 | |||
Non-control/Non-affiliate Investments | SpendMend LLC | Business Services | Common Equity (1,000,000 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 1,000,000 | |||
Non-control/Non-affiliate Investments | Suited Connector LLC | Information Technology Services | Common Equity (7,500 units) | |||||
Investment in number of shares or units | 7,500 | [4],[5],[6] | 7,500 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Preferred Equity (Series A) (1,000 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 1,000 | |||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Delayed Draw Commitment ($3,000 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[18] | $ 3,000,000 | |||
Interest earning on unfunded balance commitment | 1% | ||||
Non-control/Non-affiliate Investments | Tedia Company, LLC | Healthcare Products | Revolving Loan ($2,400 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[13] | $ 2,400,000 | |||
Non-control/Non-affiliate Investments | TransGo, LLC | Component Manufacturing | Common Equity (500 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 500 | |||
Non-control/Non-affiliate Investments | The Kyjen Company, LLC (dba Outward Hound) | Consumer Products | Common Equity (855 shares) | |||||
Investment in number of shares or units | 855 | [4],[5],[6],[9] | 855 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | The Tranzonic Companies | Specialty Distribution | Common Equity (1 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 1 | |||
Non-control/Non-affiliate Investments | The Tranzonic Companies | Specialty Distribution | Preferred Equity (5,653 units) | |||||
Investment in number of shares or units | [1],[2],[3] | 5,653 | |||
Non-control/Non-affiliate Investments | UBEO, LLC | Business Services | Common Equity (705,000 units) | |||||
Investment in number of shares or units | 705,000 | [4],[5],[6],[8],[9] | 705,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | United Biologics, LLC | Healthcare Services | Preferred Equity (98,377 units) | |||||
Investment in number of shares or units | 98,377 | [4],[5],[6],[8],[9] | 98,377 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | United Biologics, LLC | Healthcare Services | Warrant (57,469 units) | |||||
Investment in number of shares or units | 57,469 | [4],[5],[6],[9],[15] | 57,469 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | UPG Company, LLC | Component Manufacturing | First Lien Debt | |||||
Additional interest rate on investments | 5.62% | 3.46% | |||
Non-control/Non-affiliate Investments | Virginia Tile Company, LLC | Specialty Distribution | Common Equity (17 units) | |||||
Investment in number of shares or units | 17 | [4],[5],[6],[9] | 17 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | First Lien Debt | |||||
Additional interest rate on investments | 1.77% | ||||
Non-control/Non-affiliate Investments | Western's Smokehouse, LLC | Consumer Products | Delayed Draw Commitment ($2,702 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[13],[19] | $ 2,702,000 | |||
Additional interest rate on investments | 5.75% | ||||
Non-control/Non-affiliate Investments | Winona Foods, Inc. | Specialty Distribution | First Lien Debt | |||||
Additional interest rate on investments | 5.72% | 7.54% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt | |||||
Additional interest rate on investments | 4.45% | 5.70% | |||
Non-control/Non-affiliate Investments | Wonderware Holdings, LLC (dba CORE Business Technologies) | Information Technology Services | First Lien Debt ($2,000 unfunded commitment) | |||||
Unfunded commitment | [1],[2],[3] | $ 2,000,000 | |||
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Common Equity (795,000units) | |||||
Investment in number of shares or units | 795,000 | [4],[5],[6],[9] | 795,000 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Worldwide Express Operations, LLC | Transportation Services | Common Equity (752,380 units) | |||||
Investment in number of shares or units | 752,380 | [4],[5],[6],[8],[9] | 752,380 | [1],[2],[3] | |
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | |||||
Interest earning on unfunded balance commitment | 3.29% | ||||
Non-control/Non-affiliate Investments | Zonkd, LLC | Component Manufacturing | Common Equity (4,987 units) | |||||
Investment in number of shares or units | [4],[5],[6],[8],[9] | 4,987 | |||
Non-control/Non-affiliate Investments | BP Thrift Buyer, LLC (dba myUnique and Ecothrift) | Retail | Common Equity (1,000 units) | |||||
Investment in number of shares or units | [4],[5],[6],[9] | 1,000 | |||
Non-control/Non-affiliate Investments | Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) | Information Technology Services | Revolving Loan ($1,000 unfunded commitment) | |||||
Unfunded commitment | [4],[5],[6],[9],[13] | $ 1,000,000 | |||
[1] All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. See Note 3 to the consolidated financial statements for portfolio composition by geographic location. All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted. Equity ownership may be held in shares or units of companies related to the portfolio companies. Investment in portfolio company that has sold its operations and is in the process of winding down. Investment is held by a taxable subsidiary of the Company. Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. Investment was on non-accrual status as of December 31, 2022. As defined in the 1940 Act, the Company is deemed to be an "Affiliated Person" of this portfolio company because it owns 5 % or more of the portfolio company's outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements. The disclosed commitment represents the unfunded amount as of December 31, 2022. The Company is earning 0.50 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate that will be earned if the commitment is funded. As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25 % or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements. Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional cash interest amount of 1.25 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company's obligations under the Credit Facility (see Note 6 to the consolidated financial statements). The disclosed commitment represents the unfunded amount as of December 31, 2022. The Company is earning 1.00 % interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment. In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.75 % on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder. |
N-2
N-2 - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Oct. 08, 2021 | Dec. 23, 2020 | Oct. 23, 2019 | Oct. 16, 2019 | Feb. 19, 2019 | Feb. 08, 2019 | Feb. 22, 2018 | Feb. 02, 2018 | Dec. 31, 2022 | |
Cover [Abstract] | |||||||||
Entity Central Index Key | 0001513363 | ||||||||
Amendment Flag | false | ||||||||
Securities Act File Number | 814-00861 | ||||||||
Document Type | 10-K | ||||||||
Entity Registrant Name | FIDUS INVESTMENT CORPORATION | ||||||||
Entity Address, Address Line One | 1603 Orrington Avenue, Suite 1005 | ||||||||
Entity Address, City or Town | Evanston | ||||||||
Entity Address, State or Province | IL | ||||||||
Entity Address, Postal Zip Code | 60201 | ||||||||
City Area Code | 847 | ||||||||
Local Phone Number | 859-3940 | ||||||||
Entity Well-known Seasoned Issuer | No | ||||||||
Entity Emerging Growth Company | false | ||||||||
Fee Table [Abstract] | |||||||||
Shareholder Transaction Expenses [Table Text Block] | Stockholder transaction expenses: Sales load (as a percentage of offering price) - (1) Offering Expenses born by us (as a percentage of offering price) - (2) Dividend reinvestment plan expenses - (3) Total stockholder transaction expenses paid by us (as a percentage of offering price) - (4) Annual expenses (as a percentage of net assets attributable to common stock) (5) : Base management fee 3.02 % (6) Incentive fees payable under Investment Advisory Agreement 3.29 % (7) Interest payments on borrowed funds 3.76 % (8) Other expenses 1.40 % (9) Total annual expenses, before base management fee waiver 11.47 % (10) Base management fee waiver ( 0.06 %) (11) Total annual expenses, net of base management fee waiver 11.41 % (12) (1) In the event that securities are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load. (2) In the event that we conduct an offering of any of our securities, a corresponding prospectus supplement will disclose the estimated offering expenses because they will be ultimately borne by the Company (and indirectly by our stockholders). (3) The expenses of administering our dividend reinvestment plan are included in other expenses. (4) Total stockholder transaction expenses may include a sales load and will be disclosed in a future prospectus supplement, if any. (5) Net assets attributable to common stock equals average net assets, which is calculated as the average of the net assets balances as of each quarter end during the year ended December 31, 2022 and the prior year end. (6) Our base management fee is 1.75% of the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts). This item represents actual base management fees incurred for the year ended December 31, 2022. We may from time to time decide it is appropriate to change the terms of the Investment Advisory Agreement. Under the 1940 Act, any material change to our Investment Advisory Agreement must be submitted to stockholders for approval. The 3.02% reflected in the table is calculated on our net assets (rather than our total assets). See Item 1. “Business — Management and Other Agreements—Investment Advisory Agreement.” (7) This item represents actual fees incurred on pre-incentive fee net investment income (income incentive fee) and actual fees payable for the capital gains incentive fee for the year ended December 31, 2022. The capital gains incentive fee payable as of December 31, 2022 is $7.6 million. For the year ended December 31, 2022, we accrued capital gains incentive fees (reversal) of $(0.4) million in accordance with U.S. GAAP, which equals (0.09%) of average net assets attributable to common stock; such amount has not been included in the estimated expenses figure reflected in the table above. The incentive fee consists of two parts: The first, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets, (including interest that is accrued but not yet received in cash), subject to a 2.0% quarterly (8.0% annualized) hurdle rate and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, our investment advisor receives no incentive fee until our pre-incentive fee net investment income equals the hurdle rate of 2.0% but then receives, as a “catch-up,” 100.0% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, our investment advisor will receive 20.0% of our pre-incentive fee net investment income as if a hurdle rate did not apply. The second part, payable annually in arrears, equals 20.0% of our realized capital gains net of realized capital losses and unrealized capital depreciation, if any, on a cumulative basis from inception through the end of the fiscal year (or upon the termination of the Investment Advisory Agreement, as of the termination date), less the aggregate amount of any previously paid capital gain incentive fees. In accordance with U.S. GAAP, we accrue the capital gains incentive fee in our consolidated financial statements considering the fair value of investments on that date (i.e., the amount of fee which would be payable under a hypothetical liquidation based on the fair value of investments as of that date), which differs from the calculation of the amount payable in cash by the inclusion of unrealized capital appreciation. See Item 1. “Business — Management and Other Agreements—Investment Advisory Agreement.” (8) As of December 31, 2022, we had outstanding SBA debentures of $153.0 million; we had $250.0 million outstanding of our Notes; we had no outstanding borrowings under our senior secured revolving credit agreement with certain lenders party thereto and ING Capital, LLC, as administrative agent (the “Credit Facility”), which has a total commitment of $100.0 million. Interest payments on borrowed funds is based on estimated annual interest and fee expenses on outstanding SBA debentures and the Notes and outstanding borrowings under the Credit Facility as of December 31, 2022 with a weighted average stated interest rate of 4.037% as of that date. We also pay a commitment fee between 0.5% and 2.675% per annum based the unutilized commitment under our Credit Facility. We have estimated the annual interest expense on borrowed funds and caution you that our actual interest expense will depend on prevailing interest rates and our rate of borrowing, which may be substantially higher than the estimate provided in this table. (9) Other expenses represent our estimated annual operating expenses, as a percentage of net assets attributable to common shares estimated for the current year, including professional fees, directors’ fees, insurance costs, expenses of our dividend reinvestment plan and payments under the Administration Agreement based on our allocable portion of overhead and other expenses incurred by our administrator. See Item 1. “Business — Management and Other Agreements—Administration Agreement.” Other expenses exclude interest payments on borrowed funds, income tax (provision) benefit from realized gains on investment, income tax (provision) from deemed distribution of long term capital gains, and for issuances of debt securities or preferred stock, interest payments on debt securities and distributions with respect to preferred stock. “Other expenses” are based on actual other expenses for the year ended December 31, 2022. (10) “Total annual expenses, before base management fee waiver” as a percentage of consolidated net assets attributable to common stock are higher than the total annual expenses percentage would be for a company that is not leveraged. We borrow money to leverage our net assets and increase our total assets. (11) The Board of Directors accepted a voluntary, non-contractual, and unconditional waiver from the Investment Advisor to exclude any investments recorded as secured borrowings as defined under GAAP from the base management fee payable as of December 31, 2022. The base management fee waived as of December 31, 2022 is $0.3 million. (12) The SEC requires that the “total annual expenses, net of base management fee waiver” percentage be calculated as a percentage of net assets (defined as total assets less total liabilities), rather than the total assets, including assets that have been purchased with borrowed amounts. If the “total annual expenses, net of base management fee waiver” percentage were calculated instead as a percentage of average consolidated total assets, our “total annual expenses, net of base management fee waiver” would be 6.04% of average consolidated total assets. | ||||||||
Sales Load [Percent] | 0% | ||||||||
Dividend Reinvestment and Cash Purchase Fees | $ 0 | ||||||||
Other Transaction Expenses [Abstract] | |||||||||
Other Transaction Expense 1 [Percent] | 0% | ||||||||
Other Transaction Expenses [Percent] | 0% | ||||||||
Annual Expenses [Table Text Block] | Stockholder transaction expenses: Sales load (as a percentage of offering price) - (1) Offering Expenses born by us (as a percentage of offering price) - (2) Dividend reinvestment plan expenses - (3) Total stockholder transaction expenses paid by us (as a percentage of offering price) - (4) Annual expenses (as a percentage of net assets attributable to common stock) (5) : Base management fee 3.02 % (6) Incentive fees payable under Investment Advisory Agreement 3.29 % (7) Interest payments on borrowed funds 3.76 % (8) Other expenses 1.40 % (9) Total annual expenses, before base management fee waiver 11.47 % (10) Base management fee waiver ( 0.06 %) (11) Total annual expenses, net of base management fee waiver 11.41 % (12) (1) In the event that securities are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load. (2) In the event that we conduct an offering of any of our securities, a corresponding prospectus supplement will disclose the estimated offering expenses because they will be ultimately borne by the Company (and indirectly by our stockholders). (3) The expenses of administering our dividend reinvestment plan are included in other expenses. (4) Total stockholder transaction expenses may include a sales load and will be disclosed in a future prospectus supplement, if any. (5) Net assets attributable to common stock equals average net assets, which is calculated as the average of the net assets balances as of each quarter end during the year ended December 31, 2022 and the prior year end. (6) Our base management fee is 1.75% of the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts). This item represents actual base management fees incurred for the year ended December 31, 2022. We may from time to time decide it is appropriate to change the terms of the Investment Advisory Agreement. Under the 1940 Act, any material change to our Investment Advisory Agreement must be submitted to stockholders for approval. The 3.02% reflected in the table is calculated on our net assets (rather than our total assets). See Item 1. “Business — Management and Other Agreements—Investment Advisory Agreement.” (7) This item represents actual fees incurred on pre-incentive fee net investment income (income incentive fee) and actual fees payable for the capital gains incentive fee for the year ended December 31, 2022. The capital gains incentive fee payable as of December 31, 2022 is $7.6 million. For the year ended December 31, 2022, we accrued capital gains incentive fees (reversal) of $(0.4) million in accordance with U.S. GAAP, which equals (0.09%) of average net assets attributable to common stock; such amount has not been included in the estimated expenses figure reflected in the table above. The incentive fee consists of two parts: The first, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets, (including interest that is accrued but not yet received in cash), subject to a 2.0% quarterly (8.0% annualized) hurdle rate and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, our investment advisor receives no incentive fee until our pre-incentive fee net investment income equals the hurdle rate of 2.0% but then receives, as a “catch-up,” 100.0% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, our investment advisor will receive 20.0% of our pre-incentive fee net investment income as if a hurdle rate did not apply. The second part, payable annually in arrears, equals 20.0% of our realized capital gains net of realized capital losses and unrealized capital depreciation, if any, on a cumulative basis from inception through the end of the fiscal year (or upon the termination of the Investment Advisory Agreement, as of the termination date), less the aggregate amount of any previously paid capital gain incentive fees. In accordance with U.S. GAAP, we accrue the capital gains incentive fee in our consolidated financial statements considering the fair value of investments on that date (i.e., the amount of fee which would be payable under a hypothetical liquidation based on the fair value of investments as of that date), which differs from the calculation of the amount payable in cash by the inclusion of unrealized capital appreciation. See Item 1. “Business — Management and Other Agreements—Investment Advisory Agreement.” (8) As of December 31, 2022, we had outstanding SBA debentures of $153.0 million; we had $250.0 million outstanding of our Notes; we had no outstanding borrowings under our senior secured revolving credit agreement with certain lenders party thereto and ING Capital, LLC, as administrative agent (the “Credit Facility”), which has a total commitment of $100.0 million. Interest payments on borrowed funds is based on estimated annual interest and fee expenses on outstanding SBA debentures and the Notes and outstanding borrowings under the Credit Facility as of December 31, 2022 with a weighted average stated interest rate of 4.037% as of that date. We also pay a commitment fee between 0.5% and 2.675% per annum based the unutilized commitment under our Credit Facility. We have estimated the annual interest expense on borrowed funds and caution you that our actual interest expense will depend on prevailing interest rates and our rate of borrowing, which may be substantially higher than the estimate provided in this table. (9) Other expenses represent our estimated annual operating expenses, as a percentage of net assets attributable to common shares estimated for the current year, including professional fees, directors’ fees, insurance costs, expenses of our dividend reinvestment plan and payments under the Administration Agreement based on our allocable portion of overhead and other expenses incurred by our administrator. See Item 1. “Business — Management and Other Agreements—Administration Agreement.” Other expenses exclude interest payments on borrowed funds, income tax (provision) benefit from realized gains on investment, income tax (provision) from deemed distribution of long term capital gains, and for issuances of debt securities or preferred stock, interest payments on debt securities and distributions with respect to preferred stock. “Other expenses” are based on actual other expenses for the year ended December 31, 2022. (10) “Total annual expenses, before base management fee waiver” as a percentage of consolidated net assets attributable to common stock are higher than the total annual expenses percentage would be for a company that is not leveraged. We borrow money to leverage our net assets and increase our total assets. (11) The Board of Directors accepted a voluntary, non-contractual, and unconditional waiver from the Investment Advisor to exclude any investments recorded as secured borrowings as defined under GAAP from the base management fee payable as of December 31, 2022. The base management fee waived as of December 31, 2022 is $0.3 million. (12) The SEC requires that the “total annual expenses, net of base management fee waiver” percentage be calculated as a percentage of net assets (defined as total assets less total liabilities), rather than the total assets, including assets that have been purchased with borrowed amounts. If the “total annual expenses, net of base management fee waiver” percentage were calculated instead as a percentage of average consolidated total assets, our “total annual expenses, net of base management fee waiver” would be 6.04% of average consolidated total assets. | ||||||||
Management Fees [Percent] | 3.02% | ||||||||
Interest Expenses on Borrowings [Percent] | 3.76% | ||||||||
Incentive Fees [Percent] | 3.29% | ||||||||
Other Annual Expenses [Abstract] | |||||||||
Other Annual Expenses [Percent] | 1.40% | ||||||||
Total Annual Expenses [Percent] | 11.47% | ||||||||
Waivers and Reimbursements of Fees [Percent] | (0.06%) | ||||||||
Net Expense over Assets [Percent] | 11.41% | ||||||||
Expense Example [Table Text Block] | Example The following example demonstrates the projected dollar amount of total cumulative expenses over various periods with respect to a hypothetical investment in us. In calculating the following expense amounts, we have assumed we would have no additional leverage, that none of our assets are cash or cash equivalents and that our annual operating expenses would remain at the levels set forth in the table above. Transaction expenses are not included in the following example. 1 year 3 years 5 years 10 years You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return $ 110 $ 310 $ 486 $ 835 You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return resulting entirely from net realized capital gains (all of which is subject to our incentive fee on capital gains) $ 119 $ 333 $ 515 $ 866 | ||||||||
Expense Example, Year 01 | $ 110 | ||||||||
Expense Example, Years 1 to 3 | 310 | ||||||||
Expense Example, Years 1 to 5 | 486 | ||||||||
Expense Example, Years 1 to 10 | $ 835 | ||||||||
Purpose of Fee Table , Note [Text Block] | The following table is intended to assist you in understanding the costs and expenses that an investor in an offering will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever there is a reference to fees or expenses paid by “you,” “us,” “the Company” or “Fidus,” or that “we” will pay fees or expenses, stockholders will indirectly bear such fees or expenses as investors in us. | ||||||||
General Description of Registrant [Abstract] | |||||||||
Investment Objectives and Practices [Text Block] | Our investment objective is to provide attractive risk-adjusted returns by generating both current income from our debt investments and capital appreciation from our equity related investments. Our investment strategy includes partnering with business owners, management teams and financial sponsors by providing customized financing for ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. Although we are classified as a non-diversified investment company within the meaning of the 1940 Act, we maintain the flexibility to operate as a diversified investment company and have done so for an extended period of time. We seek to maintain a diversified portfolio of investments in order to help mitigate the potential effects of adverse economic events related to particular companies, regions or industries. Investments We seek to create a diversified investment portfolio that primarily includes debt investments and, to a lesser extent, equity securities. Our investments typically range between $5.0 million to $35.0 million per portfolio company, although this investment size may vary proportionately with the size of our capital base. Our investment objective is to provide attractive risk-adjusted returns by generating both current income from our debt investments and capital appreciation from our equity related investments. We may invest in the equity securities of our portfolio companies, such as preferred stock, common stock, warrants and other equity interests, either directly or in conjunction with our debt investments. First Lien Debt . We structure some of our investments as senior secured or first lien debt investments. First lien debt investments are secured by a first priority lien on existing and future assets of the borrower and may take the form of term loans or revolving lines of credit. First lien debt is typically senior on a lien basis to other liabilities in the issuer’s capital structure and has the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second lien lenders in those assets. Our first lien debt may include stand-alone first lien loans, “last out” first lien loans, or “unitranche” loans. Stand-alone first lien loans are traditional first lien loans. All lenders in the facility have equal rights to the collateral that is subject to the first-priority security interest. “Last out” first lien loans have a secondary priority behind super-senior “first out” first lien loans in the collateral securing the loans in certain circumstances. The arrangements for a “last out” first lien loan are set forth in an “agreement among lenders,” which provides lenders with “first out” and “last out” payment streams based on a single lien on the collateral. Since the “first out” lenders generally have priority over the “last out” lenders for receiving payment under certain specified events of default, or upon the occurrence of other triggering events under intercreditor agreements or agreements among lenders, the “last out” lenders bear a greater risk and, in exchange, receive a higher effective interest rate, through arrangements among the lenders, than the “first out” lenders or lenders in stand-alone first lien loans. Agreements among lenders also typically provide greater voting rights to the “last out” lenders than the intercreditor agreements to which second lien lenders often are subject. Many of our debt investments also include excess cash flow sweep features, whereby principal repayment may be required before maturity if the portfolio company achieves certain defined operating targets. Additionally, our debt investments typically have principal prepayment penalties in the early years of the debt investment. The majority of our debt investments provide for a variable interest rate, generally with a LIBOR, Prime, or SOFR floor. Second Lien Debt. Some of our debt investments take the form of second lien debt, which includes senior subordinated notes. Second lien debt investments obtain security interests in the assets of the portfolio company as collateral in support of the repayment of such loans. Second lien debt typically is senior on a lien basis to other liabilities in the issuer’s capital structure and has the benefit of a security interest over assets of the issuer, though ranking junior to first lien debt secured by those assets. First lien lenders and second lien lenders typically have separate liens on the collateral, and an intercreditor agreement provides the first lien lenders with priority over the second lien lenders’ liens on the collateral. These loans typically provide for no contractual loan amortization, with all amortization deferred until loan maturity, and may include payment-in-kind (“PIK”) interest, which increases the principal balance over the term and, coupled with the deferred principal payment provision, increases credit risk exposure over the life of the loan. Subordinated Debt. These investments are typically structured as unsecured, subordinated notes. Structurally, subordinated debt usually ranks subordinate in priority of payment to first lien and second lien debt and may not have the benefit of financial covenants common in first lien and second lien debt. Subordinated debt may rank junior as it relates to proceeds in certain liquidations where it does not have the benefit of a lien in specific collateral held by creditors (typically first lien and/or second lien) who have a perfected security interest in such collateral. However, subordinated debt ranks senior to common and preferred equity in an issuer’s capital structure. These loans typically have relatively higher fixed interest rates (often representing a combination of cash pay and PIK interest) and amortization of principal deferred to maturity. The PIK feature (meaning a feature allowing for the payment of interest in the form of additional principal amount of the loan instead of in cash), which effectively operates as negative amortization of loan principal, coupled with the deferred principal payment provision, increases credit risk exposure over the life of the loan. Equity Securities . Our equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or we may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Warrants we receive with our debt investments typically require only a nominal cost to exercise, and thus, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. Our equity investments are typically not control-oriented investments, and in many cases, we acquire equity securities as part of a group of private equity investors in which we are not the lead investor. We may structure such equity investments to include provisions protecting our rights as a minority-interest holder, as well as a “put,” or right to sell such securities back to the issuer, upon the occurrence of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may include demand and “piggyback” registration rights. Our equity investments typically are made in connection with debt investments to the same portfolio companies. | ||||||||
Risk Factors [Table Text Block] | Item 1A. Risk Factors. RISK FACTORS Investing in our securities involves a number of significant risks. You should carefully consider these risk factors, together with all of the other information included in this Annual Report and other reports and documents filed by us with the SEC. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the following events occur, our business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, our net asset value and the trading price of our common stock could decline, and you may lose all or part of your investment. SUMMARY OF RISK FACTORS The following is a summary of the principal risks that you should carefully consider before investing in our securities. These and other risk factors are described more fully in this “Item 1A. Risk Factors.” Risks Relating to Our Business and Structure • We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. • We may have potential conflicts of interest related to obligations that our investment advisor may have to other clients. • We may have conflicts related to other arrangements with our investment advisor. • The Funds are licensed by the SBA, and, therefore, are subject to SBA regulations. • SBA regulations limit the amount of SBA-guaranteed debt that may be borrowed by an SBIC. • Changes relating to the LIBOR calculation process may adversely affect the value of our portfolio of LIBOR-indexed, floating-rate debt securities. • Global economic, political and market conditions may adversely affect our business, results of operations and financial condition, including our revenue growth and profitability. • We are currently operating in a period of capital markets disruption and economic uncertainty. • We may not be able to pay you distributions, our distributions may not grow over time, a portion of distributions paid to you may be a return of capital, and investors in our debt securities may not receive all of the interest income to which they are entitled. • We may choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive. • Due to current market conditions, we may reduce or defer our dividends and choose to incur U.S. federal excise tax in order preserve cash and maintain flexibility. • Internal and external cyber threats, as well as other disasters, could impair our ability to conduct business effectively. • Public health threats may impact the businesses in which we invest and affect our business, operating results and financial condition. Risks Relating to Our Investments • Economic recessions or downturns could impair our portfolio companies and harm our operating results. • Our investments in portfolio companies may be risky, and we could lose all or part of our investment. • The lack of liquidity in our investments may adversely affect our business. • We may not have the funds to make additional investments in our portfolio companies that could impair the value of our portfolio. • Defaults by our portfolio companies will harm our operating results. • We are a non-diversified investment company within the meaning of the 1940 Act; therefore we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer. Risks Relating to Our Common Stock • Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. • If, in the future, we sell common stock at a discount to our net asset value per share, stockholders who do not participate in such sale will experience immediate dilution in an amount that may be material. • Our net asset value may have changed significantly since our last valuation. • The market price of our securities may fluctuate significantly. • Sales of substantial amounts of our common stock may have an adverse effect on the market price of our common stock. Risks Relating to Our Business and Structure We are dependent upon our investment advisor’s managing members and our executive officers for our future success. If our investment advisor was to lose any of its managing members or we lose any of our executive officers, our ability to achieve our investment objective could be significantly harmed. We depend on the investment expertise, skill and network of business contacts of the managing members of our investment advisor, who evaluate, negotiate, structure, execute and monitor our investments. Our future success will depend to a significant extent on the continued service and coordination of the investment professionals of our investment advisor and executive officers. Certain investment professionals and executives may not devote all of their business time to our operations and may have other demands on their time as a result of other activities. The departure of any of these individuals could have a material adverse effect on our ability to achieve our investment objective. Our business model depends, to a significant extent, upon strong referral relationships with financial institutions, sponsors and investment professionals. Any inability of our investment advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We depend upon the investment professionals of our investment advisor to maintain their relationships with financial institutions, sponsors and other investment professionals, and we intend to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the investment professionals of our investment advisor fail to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the investment professionals of our investment advisor have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition and results of operations. Our ability to achieve our investment objective and grow depends on our ability to manage our business and deploy our capital effectively. This depends, in turn, on our investment advisor’s ability to identify, evaluate and monitor companies that meet our investment criteria. Accomplishing our investment objectives on a cost-effective basis depends upon our investment advisor’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our ability to access financing on acceptable terms. Our investment advisor has substantial responsibilities under the Investment Advisory Agreement. In addition, our investment advisor’s investment professionals may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. We may suffer credit losses and our investments could be rated below investment grade. Private debt in the form of second lien, subordinated, and first lien loans (senior secured or unitranche loans) to corporate and asset-based borrowers is highly speculative and involves a high degree of risk of credit loss, and therefore an investment in our shares of common stock may not be suitable for someone with a low tolerance for risk. These risks are likely to increase during an economic downturn or recession. In addition, investments in our portfolio typically are not rated by any rating agency. We believe that if such investments were rated, the vast majority would be rated below investment grade (which is sometimes referred to as “junk”) due to speculative characteristics of the issuer’s capacity to pay interest and repay principal. Our investments may result in an amount of risk, volatility or potential loss of principal that is greater than that of alternative investments. Because we borrow money and may in the future issue additional senior securities, including preferred stock and debt securities, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us. Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested and, therefore, increase the risks associated with investing in us. The Funds borrow from and issue debt securities to the SBA, and we may borrow from banks and other lenders in the future. The SBA has fixed dollar claims on the Funds’ assets that are superior to the claims of our stockholders. We may also borrow from banks and other lenders or issue additional senior securities including preferred stock and debt securities in the future. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not used leverage. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make distributions to our stockholders. Leverage is generally considered a speculative investment technique. Our ability to achieve our investment objectives may depend in part on our ability to achieve additional leverage on favorable terms by borrowing from the SBA, banks or other lenders, and there can be no assurance that such additional leverage can in fact be achieved. As a BDC, we are generally required to meet a coverage ratio at least equal to 150.0% of total assets to total borrowings and other senior securities, which include all of our borrowings (other than the Funds’ SBA leverage under the terms of SEC exemptive relief) and any preferred stock we may issue in the future. If this ratio declines below 150.0%, we may not be able to incur additional debt and may need to sell a portion of our investments to repay some debt when it is disadvantageous to do so, and we may not be able to make distributions to our stockholders. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed Return on Our Portfolio (Net of Expenses) (10.0 ) % (5.0 ) % 0.0 % 5.0 % 10.0 % Corresponding return to common stockholder (1) ( 23.0 ) % ( 13.3 ) % ( 3.5 ) % 6.2 % 16.0 % (1) Assumes $935,960 in total assets, $153,000 in outstanding SBA debentures, no borrowings under the Credit Facility (as defined below), $16,880 in Secured Borrowings, $250,000 outstanding of our unsecured notes, $480,343 in net assets as of December 31, 2022, and an average cost of funds of 4.037%. Effective April 29, 2020, our asset coverage requirement was reduced from 200% to 150%, which could increase the risk of investing in the Company. The 1940 Act generally prohibits the Company from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). However, in March 2018, the Small Business Credit Availability Act (“the “SBCA”) modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements under the 1940 Act are met. On April 29, 2019, our Board, including a majority of the non-interested directors, approved a minimum asset coverage ratio of 150% as set forth in Section 61(a)(2) of the 1940 Act. As a result, we are subject to the 150% asset coverage ratio, effective as of April 29, 2020. We are required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage. Leverage is generally considered a speculative investment technique and increases the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, our stockholders will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the NAV attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments, or other payments related to our securities. Increased leverage may also cause a downgrade of our credit rating. Leverage is generally considered a speculative investment technique. All of our portfolio investments are recorded at fair value as determined in good faith by our board of directors, and, as a result, there is uncertainty as to the value of our portfolio investments and the valuation process for certain of our portfolio holdings creates a conflict of interest. All of our portfolio investments take the form of debt and equity securities that are not publicly-traded. The debt and equity securities in which we invest for which market quotations are not readily available are valued at fair value as determined in good faith by our board of directors. As part of the valuation process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments: a comparison of the portfolio company’s securities to comparable publicly-traded securities; the enterprise value of a portfolio company; the nature and realizable value of any collateral; the portfolio company’s ability to make payments and its earnings and discounted cash flow; the markets in which the portfolio company does business; and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future and other relevant factors. The fair value of each investment in our portfolio is determined quarterly by our board of directors. Any changes in fair value of portfolio securities from the prior period are recorded in our consolidated statement of operations as net change in unrealized appreciation or depreciation. In connection with that determination, investment professionals from our investment advisor prepare portfolio company valuations based upon the most recent portfolio company financial statements available and projected financial results of each portfolio company. In addition, certain members of our board of directors have a pecuniary interest in our investment advisor. The participation of our investment advisor’s investment professionals in our valuation process, and the pecuniary interest in our investment advisor by certain members of our board of directors, may result in a conflict of interest as the management fees that we pay our investment advisor are based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts). Our board of directors engages one or more independent third-party valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, we may determine that it is not cost-effective, and as a result it is not in our stockholders’ best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not limited to, situations where we determine that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. Our board of directors consulted with the independent valuation firm(s) in arriving at our determination of fair value for 16 and 17 of our portfolio company investments representing 29.5% and 21.8% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months ended December 31, 2022 and 2021, respectively) as of December 31, 2022 and 2021, respectively. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Declines in prices and liquidity in the corporate debt markets may also result in significant net unrealized depreciation in our debt portfolio. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such investments. We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. A number of entities compete with us to make the types of investments that we make. We compete with public and private funds, other BDCs, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we match our competitors’ pricing, terms and structure, we may experience a decrease in net investment income or an increase in risk of capital loss. A significant part of our competitive advantage stems from the fact that the lower middle-market is underserved by traditional commercial and investment banks, and generally has less access to capital. A significant increase in the number and/or the size of our competitors in this target market could force us to accept less attractive investment terms. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the source-of-income, asset diversification and distribution requirements we must satisfy to maintain our RIC tax treatment. The competitive pressures we face may have a material adverse effect on our business, financial condition and results of operations. As a result of this existing and potentially increasing competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objective. Our management and incentive fee structure may create incentives for our investment advisor that are not fully aligned with the interests of our stockholders and may encourage our investment advisor to make speculative investments. The management and incentive fees paid to our investment advisor are based on our total assets (other than cash or cash equivalents but including assets purchased with borrowed amounts), and our investor advisor may therefore benefit when we incur debt or use leverage. This fee structure may encourage our investment advisor to cause us to borrow money to finance additional investments. Under certain circumstances, the use of borrowed money may increase the likelihood of default, which would disfavor our stockholders. Our board of directors is charged with protecting our interests by monitoring how our investment advisor addresses these and other conflicts of interests. Our board of directors is not expected to review or approve each borrowing or incurrence of leverage. However, our board of directors periodically reviews our investment advisor’s portfolio management decisions and portfolio performance. In addition, our board of directors at least annually reviews the services provided by and fees paid to our investment advisor. In connection with these reviews, our board of directors, including a majority of our Independent Directors, considers whether the fees and expenses (including those related to leverage) that we pay to our investment advisor are fair and reasonable in relation to the services provided and must approve renewal of our Advisory Agreement. The part of the incentive fee payable to our investment advisor that relates to our net investment income is computed and paid on income that includes interest income that has been accrued but not yet received in cash. This fee structure may encourage our investment advisor to favor debt financings that provide for deferred interest (PIK interest), rather than current cash payments of interest. Our investment advisor may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because our investment advisor is not obligated to reimburse us for any incentive fees received even if we subsequently incur losses or never receive in cash the deferred interest that was previously accrued. The incentive fee is based, in part, upon net capital gains realized on our investments. Unlike the portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. As a result, our investment advisor may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns. We may be obligated to pay our investment advisor incentive compensation even if we incur a loss and may pay more than 20.0% of our net capital gains because we cannot recover payments made in previous years. Our investment advisor will be entitled to incentive compensation for each fiscal quarter in an amount equal to a percentage of the excess of our pre-incentive fee net investment income for that quarter above a threshold return for that quarter. Our pre-incentive fee net investment income for incentive compensation purposes excludes realized and unrealized capital losses that we may incur in the fiscal quarter, even if such capital losses result in a net loss on our consolidated statement of operations for that quarter. Thus, we may be required to pay our investment advisor incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio or we incur a net loss for that quarter. Further, if we pay an incentive fee of 20.0% of our realized capital gains (net of all realized capital losses and unrealized capital depreciation on a cumulative basis) and thereafter experience additional realized capital losses or unrealized capital depreciation, we will not be able to recover any portion of the incentive fee previously paid. A general increase in interest rates will likely have the effect of making it easier for the investment advisor to receive incentive fees, without necessarily resulting in an increase in our net earnings. We are currently in a rising interest rate environment. Given the structure of the Investment Advisory Agreement, any general increase in interest rates can be expected to lead to higher interest rates applicable to our debt investments and will likely have the effect of making it easier for the investment advisor to meet the quarterly hurdle rate for payment of income incentive fees under the Investment Advisory Agreement without any additional increase in relative performance on the part of the investment advisor. This may occur without a corresponding increase in distributions to our stockholders. In addition, in view of the catch-up provision applicable to income incentive fees under the Investment Advisory Agreement, the investment advisor could potentially receive a significant portion of the increase in our investment income attributable to such a general increase in interest rates. If that were to occur, our increase in net earnings, if any, would likely be significantly smaller than the relative increase in the investment advisor’s income incentive fee resulting from such a general increase in interest rates. We may have potential conflicts of interest related to obligations that our investment advisor may have to other clients. Currently, the Company, the Funds, Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P. are the only investment vehicles managed by our investment advisor. The Investment Advisory Agreement does not limit our investment advisor’s ability to act as an investment advisor to other funds, including other BDCs, or other investment advisory clients. To the extent our investment advisor acts as an investment advisor to other funds or clients, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may have conflicts of interest with our investment advisor or its other clients that elect to invest in similar types of securities as those in which we invest. Members of our investment advisor’s investment committee serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do, or of investment funds or other investment vehicles managed by our investment advisor. In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders. Our investment advisor will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with an allocation policy approved by our board of directors. To the extent our investment advisor forms affiliates, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may co-invest on a concurrent basis with such affiliates, subject to compliance with applicable regulations and regulatory guidance and our allocation procedures. While we may co-invest with investment entities managed by our investment advisor or its affiliates, to the extent permitted by the 1940 Act and the rules and regulations thereunder, the 1940 Act imposes significant limits on co-investment. On January 4, 2017, the SEC granted us an exemptive order that expands our ability to co-invest in portfolio companies with certain of our affiliates managed by our investment advisor in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions (the “Order”). Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching by us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies. We intend to co-invest, subject to the conditions included in the Order. However, neither we nor our affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them. Our investment advisor or its investment committee may, from time to time, possess material non-public information, limiting our investment discretion. The investment professionals of our investment advisor may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of applicable law or regulations, we could be prohibited for a period of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us. We may have conflicts related to other arrangements with our investment advisor. We entered into a license agreement with Fidus Partners, LLC under which Fidus Partners, LLC granted us a non-exclusive (provided that there is not a change in control of Fidus Partners, LLC), royalty-free license to use the name “Fidus.” Some of the members of our investment advisor’s investment committee and the senior origination professionals of our investment advisor are members of Fidus Partners, LLC. See Item 1. “Business — Management and Other Agreements — License Agreement.” In addition, we rent office space from our investment advisor and pay to our investment advisor our allocable portion of overhead and other expenses incurred in performing its obligations under the Administration Agreement, such as our allocable portion of the cost of our chief financial officer and chief compliance officer. This creates conflicts of interest that our board of directors must monitor. The Funds are licensed by the SBA, and, therefore, are subject to SBA regulations. The Funds are licensed to operate as SBICs and are regulated by the SBA. Under current SBA regulations, a licensed SBIC can provide capital to eligible "small businesses" that have a tangible net worth not exceeding $24.0 million and an average annual net income after U.S. federal income taxes not exceeding $8.0 million for the two most recent fiscal years. In addition, a licensed SBIC must devote 25.0% of its investment capital to "smaller enterprises" that have a tangible net worth not exceeding $6.0 million and an average annual net income after U.S. federal income taxes not exceeding $2.0 million for the two most recent fiscal years. The SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on either the number of employees or the gross sales of the business. The SBA regulations permit licensed SBICs to make long term loans to small b | ||||||||
Effects of Leverage [Table Text Block] | The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed Return on Our Portfolio (Net of Expenses) (10.0 ) % (5.0 ) % 0.0 % 5.0 % 10.0 % Corresponding return to common stockholder (1) ( 23.0 ) % ( 13.3 ) % ( 3.5 ) % 6.2 % 16.0 % (1) Assumes $935,960 in total assets, $153,000 in outstanding SBA debentures, no borrowings under the Credit Facility (as defined below), $16,880 in Secured Borrowings, $250,000 outstanding of our unsecured notes, $480,343 in net assets as of December 31, 2022, and an average cost of funds of 4.037%. | ||||||||
Return at Minus Ten [Percent] | (23.00%) | ||||||||
Return at Minus Five [Percent] | (13.30%) | ||||||||
Return at Zero [Percent] | (3.50%) | ||||||||
Return at Plus Five [Percent] | 6.20% | ||||||||
Return at Plus Ten [Percent] | 16% | ||||||||
Effects of Leverage, Purpose [Text Block] | The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed Return on Our Portfolio (Net of Expenses) (10.0 ) % (5.0 ) % 0.0 % 5.0 % 10.0 % Corresponding return to common stockholder (1) ( 23.0 ) % ( 13.3 ) % ( 3.5 ) % 6.2 % 16.0 % | ||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt [Table Text Block] | Notes On February 2, 2018, we closed the public offering of approximately $ 43.5 million in aggregate principal amount of our 5.875% notes due 2023 , or the “ 2023 Notes .” On February 22, 2018, the underwriters exercised their option to purchase an additional $ 6.5 million in aggregate principal of the 2023 Notes. The total net proceeds to us from the 2023 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $1.5 million and offering expenses of $0.4 million, were approximately $48.1 million. On January 19, 2021, we redeemed $50.0 million in the aggregate principal amount on the issued and outstanding 2023 Notes, resulting in a realized loss on extinguishment of debt of approximately $0.8 million. On February 8, 2019, we closed the public offering of approximately $ 60.0 million in aggregate principal amount of our 6.000% notes due 2024 , or the “ February 2024 Notes ”. On February 19, 2019, the underwriters exercised their option to purchase an additional $ 9.0 million in aggregate principal of the February 2024 Notes. The total net proceeds to us from the February 2024 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $2.1 million and estimated offering expenses of $0.4 million, were approximately $66.5 million. On February 16, 2021, the Company redeemed $50.0 million of the $69.0 million in aggregate principal amount on the February 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $1.1 million. On November 2, 2021, we fully redeemed the remaining $19.0 million in aggregate principal amount on the issued and outstanding February 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $0.3 million. On October 16, 2019, we closed the public offering of approximately $ 55.0 million in aggregate principal amount of our 5.375% notes due 2024, or the “ November 2024 Notes ” (and collectively with the 2023 Notes and the February 2024 Notes, the “Public Notes”). On October 23, 2019, the underwriters exercised their option to purchase an additional $ 8.3 million in aggregate principal of the November 2024 Notes. The total net proceeds to us from the November 2024 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $1.9 million and estimated offering expenses of $0.3 million, were approximately $61.1 million. On November 2, 2021, we fully redeemed the $63.3 million in aggregate principal amount on the issued and outstanding November 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $1.3 million. On December 23, 2020, we closed the offering of $ 125.0 million in aggregate principal amount of our 4.75% notes due 2026, or the “ January 2026 Notes ”. The total net proceeds to us from the January 2026 Notes after deducting underwriting discounts of $2.5 million and estimated offering expenses of approximately $0.4 million, were approximately $122.1 million. The January 2026 Notes will mature on January 31, 2026 and bear interest at a rate of 4.75%. The January 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the January 2026 Notes is payable on January 31 and July 31 of each year. We do not intend to list the January 2026 Notes on any securities exchange or automated dealer quotation system. On October 8, 2021, we closed the offering of $ 125.0 million in aggregate principal amount of our 3.50% notes due 2026, or the “ November 2026 Notes ” (collectively with the Public Notes and the January 2026 Notes, the “Notes”). The total net proceeds to us from the November 2026 Notes, based on a public offering price of 99.996% of par, after deducting underwriting discounts of $2.5 million and estimated offering expenses of approximately $0.3 million, were approximately $122.2 million. The November 2026 Notes will mature on November 15, 2026 and bear interest at a rate of 3.50%. The November 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the November 2026 Notes is payable on May 15 and November 15 of each year. We do not intend to list the November 2026 Notes on any securities exchange or automated dealer quotation system. Each of the Notes are unsecured obligations and rank pari passu with our existing and future unsecured indebtedness; effectively subordinated to all of our existing and future secured indebtedness; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities we may form in the future, with respect to claims on the assets of any such subsidiaries, financing vehicles, or similar facilities. | ||||||||
Long Term Debt, Rights Limited by Other Securities [Text Block] | Each of the Notes are unsecured obligations and rank pari passu with our existing and future unsecured indebtedness; effectively subordinated to all of our existing and future secured indebtedness; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities we may form in the future, with respect to claims on the assets of any such subsidiaries, financing vehicles, or similar facilities. | ||||||||
Outstanding Securities [Table Text Block] | Outstanding Securities The following table shows our outstanding classes of securities as of December 31, 2022: (a) Title of Class (b) Amount Authorized (c) Amount Held by us or for Our Account d) Amount Outstanding Exclusive of Amounts Shown Under (c) Common Stock 100,000,000 70,540 24,727,788 SBA Debentures $ 325.0 million (1) — $ 153.0 million Credit Facility $ 100.0 million — $ — Notes $ 250.0 million — $ 250.0 million (1) For more information regarding our limitations as to SBA debenture issuances, see “Regulation — Small Business Administration Regulations.” | ||||||||
Outstanding Security, Authorized [Shares] | 100,000,000 | ||||||||
Outstanding Security, Held [Shares] | 70,540 | ||||||||
Outstanding Security, Not Held [Shares] | 24,727,788 | ||||||||
Risks Relating to Business and Structure | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Risks Relating to Our Business and Structure • We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. • We may have potential conflicts of interest related to obligations that our investment advisor may have to other clients. • We may have conflicts related to other arrangements with our investment advisor. • The Funds are licensed by the SBA, and, therefore, are subject to SBA regulations. • SBA regulations limit the amount of SBA-guaranteed debt that may be borrowed by an SBIC. • Changes relating to the LIBOR calculation process may adversely affect the value of our portfolio of LIBOR-indexed, floating-rate debt securities. • Global economic, political and market conditions may adversely affect our business, results of operations and financial condition, including our revenue growth and profitability. • We are currently operating in a period of capital markets disruption and economic uncertainty. • We may not be able to pay you distributions, our distributions may not grow over time, a portion of distributions paid to you may be a return of capital, and investors in our debt securities may not receive all of the interest income to which they are entitled. • We may choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive. • Due to current market conditions, we may reduce or defer our dividends and choose to incur U.S. federal excise tax in order preserve cash and maintain flexibility. • Internal and external cyber threats, as well as other disasters, could impair our ability to conduct business effectively. • Public health threats may impact the businesses in which we invest and affect our business, operating results and financial condition. Risks Relating to Our Business and Structure We are dependent upon our investment advisor’s managing members and our executive officers for our future success. If our investment advisor was to lose any of its managing members or we lose any of our executive officers, our ability to achieve our investment objective could be significantly harmed. We depend on the investment expertise, skill and network of business contacts of the managing members of our investment advisor, who evaluate, negotiate, structure, execute and monitor our investments. Our future success will depend to a significant extent on the continued service and coordination of the investment professionals of our investment advisor and executive officers. Certain investment professionals and executives may not devote all of their business time to our operations and may have other demands on their time as a result of other activities. The departure of any of these individuals could have a material adverse effect on our ability to achieve our investment objective. Our business model depends, to a significant extent, upon strong referral relationships with financial institutions, sponsors and investment professionals. Any inability of our investment advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We depend upon the investment professionals of our investment advisor to maintain their relationships with financial institutions, sponsors and other investment professionals, and we intend to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the investment professionals of our investment advisor fail to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the investment professionals of our investment advisor have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition and results of operations. Our ability to achieve our investment objective and grow depends on our ability to manage our business and deploy our capital effectively. This depends, in turn, on our investment advisor’s ability to identify, evaluate and monitor companies that meet our investment criteria. Accomplishing our investment objectives on a cost-effective basis depends upon our investment advisor’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our ability to access financing on acceptable terms. Our investment advisor has substantial responsibilities under the Investment Advisory Agreement. In addition, our investment advisor’s investment professionals may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. We may suffer credit losses and our investments could be rated below investment grade. Private debt in the form of second lien, subordinated, and first lien loans (senior secured or unitranche loans) to corporate and asset-based borrowers is highly speculative and involves a high degree of risk of credit loss, and therefore an investment in our shares of common stock may not be suitable for someone with a low tolerance for risk. These risks are likely to increase during an economic downturn or recession. In addition, investments in our portfolio typically are not rated by any rating agency. We believe that if such investments were rated, the vast majority would be rated below investment grade (which is sometimes referred to as “junk”) due to speculative characteristics of the issuer’s capacity to pay interest and repay principal. Our investments may result in an amount of risk, volatility or potential loss of principal that is greater than that of alternative investments. Because we borrow money and may in the future issue additional senior securities, including preferred stock and debt securities, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us. Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested and, therefore, increase the risks associated with investing in us. The Funds borrow from and issue debt securities to the SBA, and we may borrow from banks and other lenders in the future. The SBA has fixed dollar claims on the Funds’ assets that are superior to the claims of our stockholders. We may also borrow from banks and other lenders or issue additional senior securities including preferred stock and debt securities in the future. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not used leverage. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make distributions to our stockholders. Leverage is generally considered a speculative investment technique. Our ability to achieve our investment objectives may depend in part on our ability to achieve additional leverage on favorable terms by borrowing from the SBA, banks or other lenders, and there can be no assurance that such additional leverage can in fact be achieved. As a BDC, we are generally required to meet a coverage ratio at least equal to 150.0% of total assets to total borrowings and other senior securities, which include all of our borrowings (other than the Funds’ SBA leverage under the terms of SEC exemptive relief) and any preferred stock we may issue in the future. If this ratio declines below 150.0%, we may not be able to incur additional debt and may need to sell a portion of our investments to repay some debt when it is disadvantageous to do so, and we may not be able to make distributions to our stockholders. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed Return on Our Portfolio (Net of Expenses) (10.0 ) % (5.0 ) % 0.0 % 5.0 % 10.0 % Corresponding return to common stockholder (1) ( 23.0 ) % ( 13.3 ) % ( 3.5 ) % 6.2 % 16.0 % (1) Assumes $935,960 in total assets, $153,000 in outstanding SBA debentures, no borrowings under the Credit Facility (as defined below), $16,880 in Secured Borrowings, $250,000 outstanding of our unsecured notes, $480,343 in net assets as of December 31, 2022, and an average cost of funds of 4.037%. Effective April 29, 2020, our asset coverage requirement was reduced from 200% to 150%, which could increase the risk of investing in the Company. The 1940 Act generally prohibits the Company from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). However, in March 2018, the Small Business Credit Availability Act (“the “SBCA”) modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements under the 1940 Act are met. On April 29, 2019, our Board, including a majority of the non-interested directors, approved a minimum asset coverage ratio of 150% as set forth in Section 61(a)(2) of the 1940 Act. As a result, we are subject to the 150% asset coverage ratio, effective as of April 29, 2020. We are required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage. Leverage is generally considered a speculative investment technique and increases the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, our stockholders will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the NAV attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments, or other payments related to our securities. Increased leverage may also cause a downgrade of our credit rating. Leverage is generally considered a speculative investment technique. All of our portfolio investments are recorded at fair value as determined in good faith by our board of directors, and, as a result, there is uncertainty as to the value of our portfolio investments and the valuation process for certain of our portfolio holdings creates a conflict of interest. All of our portfolio investments take the form of debt and equity securities that are not publicly-traded. The debt and equity securities in which we invest for which market quotations are not readily available are valued at fair value as determined in good faith by our board of directors. As part of the valuation process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments: a comparison of the portfolio company’s securities to comparable publicly-traded securities; the enterprise value of a portfolio company; the nature and realizable value of any collateral; the portfolio company’s ability to make payments and its earnings and discounted cash flow; the markets in which the portfolio company does business; and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future and other relevant factors. The fair value of each investment in our portfolio is determined quarterly by our board of directors. Any changes in fair value of portfolio securities from the prior period are recorded in our consolidated statement of operations as net change in unrealized appreciation or depreciation. In connection with that determination, investment professionals from our investment advisor prepare portfolio company valuations based upon the most recent portfolio company financial statements available and projected financial results of each portfolio company. In addition, certain members of our board of directors have a pecuniary interest in our investment advisor. The participation of our investment advisor’s investment professionals in our valuation process, and the pecuniary interest in our investment advisor by certain members of our board of directors, may result in a conflict of interest as the management fees that we pay our investment advisor are based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts). Our board of directors engages one or more independent third-party valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, we may determine that it is not cost-effective, and as a result it is not in our stockholders’ best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not limited to, situations where we determine that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. Our board of directors consulted with the independent valuation firm(s) in arriving at our determination of fair value for 16 and 17 of our portfolio company investments representing 29.5% and 21.8% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months ended December 31, 2022 and 2021, respectively) as of December 31, 2022 and 2021, respectively. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Declines in prices and liquidity in the corporate debt markets may also result in significant net unrealized depreciation in our debt portfolio. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such investments. We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. A number of entities compete with us to make the types of investments that we make. We compete with public and private funds, other BDCs, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we match our competitors’ pricing, terms and structure, we may experience a decrease in net investment income or an increase in risk of capital loss. A significant part of our competitive advantage stems from the fact that the lower middle-market is underserved by traditional commercial and investment banks, and generally has less access to capital. A significant increase in the number and/or the size of our competitors in this target market could force us to accept less attractive investment terms. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the source-of-income, asset diversification and distribution requirements we must satisfy to maintain our RIC tax treatment. The competitive pressures we face may have a material adverse effect on our business, financial condition and results of operations. As a result of this existing and potentially increasing competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objective. Our management and incentive fee structure may create incentives for our investment advisor that are not fully aligned with the interests of our stockholders and may encourage our investment advisor to make speculative investments. The management and incentive fees paid to our investment advisor are based on our total assets (other than cash or cash equivalents but including assets purchased with borrowed amounts), and our investor advisor may therefore benefit when we incur debt or use leverage. This fee structure may encourage our investment advisor to cause us to borrow money to finance additional investments. Under certain circumstances, the use of borrowed money may increase the likelihood of default, which would disfavor our stockholders. Our board of directors is charged with protecting our interests by monitoring how our investment advisor addresses these and other conflicts of interests. Our board of directors is not expected to review or approve each borrowing or incurrence of leverage. However, our board of directors periodically reviews our investment advisor’s portfolio management decisions and portfolio performance. In addition, our board of directors at least annually reviews the services provided by and fees paid to our investment advisor. In connection with these reviews, our board of directors, including a majority of our Independent Directors, considers whether the fees and expenses (including those related to leverage) that we pay to our investment advisor are fair and reasonable in relation to the services provided and must approve renewal of our Advisory Agreement. The part of the incentive fee payable to our investment advisor that relates to our net investment income is computed and paid on income that includes interest income that has been accrued but not yet received in cash. This fee structure may encourage our investment advisor to favor debt financings that provide for deferred interest (PIK interest), rather than current cash payments of interest. Our investment advisor may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because our investment advisor is not obligated to reimburse us for any incentive fees received even if we subsequently incur losses or never receive in cash the deferred interest that was previously accrued. The incentive fee is based, in part, upon net capital gains realized on our investments. Unlike the portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. As a result, our investment advisor may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns. We may be obligated to pay our investment advisor incentive compensation even if we incur a loss and may pay more than 20.0% of our net capital gains because we cannot recover payments made in previous years. Our investment advisor will be entitled to incentive compensation for each fiscal quarter in an amount equal to a percentage of the excess of our pre-incentive fee net investment income for that quarter above a threshold return for that quarter. Our pre-incentive fee net investment income for incentive compensation purposes excludes realized and unrealized capital losses that we may incur in the fiscal quarter, even if such capital losses result in a net loss on our consolidated statement of operations for that quarter. Thus, we may be required to pay our investment advisor incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio or we incur a net loss for that quarter. Further, if we pay an incentive fee of 20.0% of our realized capital gains (net of all realized capital losses and unrealized capital depreciation on a cumulative basis) and thereafter experience additional realized capital losses or unrealized capital depreciation, we will not be able to recover any portion of the incentive fee previously paid. A general increase in interest rates will likely have the effect of making it easier for the investment advisor to receive incentive fees, without necessarily resulting in an increase in our net earnings. We are currently in a rising interest rate environment. Given the structure of the Investment Advisory Agreement, any general increase in interest rates can be expected to lead to higher interest rates applicable to our debt investments and will likely have the effect of making it easier for the investment advisor to meet the quarterly hurdle rate for payment of income incentive fees under the Investment Advisory Agreement without any additional increase in relative performance on the part of the investment advisor. This may occur without a corresponding increase in distributions to our stockholders. In addition, in view of the catch-up provision applicable to income incentive fees under the Investment Advisory Agreement, the investment advisor could potentially receive a significant portion of the increase in our investment income attributable to such a general increase in interest rates. If that were to occur, our increase in net earnings, if any, would likely be significantly smaller than the relative increase in the investment advisor’s income incentive fee resulting from such a general increase in interest rates. We may have potential conflicts of interest related to obligations that our investment advisor may have to other clients. Currently, the Company, the Funds, Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P. are the only investment vehicles managed by our investment advisor. The Investment Advisory Agreement does not limit our investment advisor’s ability to act as an investment advisor to other funds, including other BDCs, or other investment advisory clients. To the extent our investment advisor acts as an investment advisor to other funds or clients, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may have conflicts of interest with our investment advisor or its other clients that elect to invest in similar types of securities as those in which we invest. Members of our investment advisor’s investment committee serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do, or of investment funds or other investment vehicles managed by our investment advisor. In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders. Our investment advisor will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with an allocation policy approved by our board of directors. To the extent our investment advisor forms affiliates, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may co-invest on a concurrent basis with such affiliates, subject to compliance with applicable regulations and regulatory guidance and our allocation procedures. While we may co-invest with investment entities managed by our investment advisor or its affiliates, to the extent permitted by the 1940 Act and the rules and regulations thereunder, the 1940 Act imposes significant limits on co-investment. On January 4, 2017, the SEC granted us an exemptive order that expands our ability to co-invest in portfolio companies with certain of our affiliates managed by our investment advisor in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions (the “Order”). Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching by us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies. We intend to co-invest, subject to the conditions included in the Order. However, neither we nor our affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them. Our investment advisor or its investment committee may, from time to time, possess material non-public information, limiting our investment discretion. The investment professionals of our investment advisor may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of applicable law or regulations, we could be prohibited for a period of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us. We may have conflicts related to other arrangements with our investment advisor. We entered into a license agreement with Fidus Partners, LLC under which Fidus Partners, LLC granted us a non-exclusive (provided that there is not a change in control of Fidus Partners, LLC), royalty-free license to use the name “Fidus.” Some of the members of our investment advisor’s investment committee and the senior origination professionals of our investment advisor are members of Fidus Partners, LLC. See Item 1. “Business — Management and Other Agreements — License Agreement.” In addition, we rent office space from our investment advisor and pay to our investment advisor our allocable portion of overhead and other expenses incurred in performing its obligations under the Administration Agreement, such as our allocable portion of the cost of our chief financial officer and chief compliance officer. This creates conflicts of interest that our board of directors must monitor. The Funds are licensed by the SBA, and, therefore, are subject to SBA regulations. The Funds are licensed to operate as SBICs and are regulated by the SBA. Under current SBA regulations, a licensed SBIC can provide capital to eligible "small businesses" that have a tangible net worth not exceeding $24.0 million and an average annual net income after U.S. federal income taxes not exceeding $8.0 million for the two most recent fiscal years. In addition, a licensed SBIC must devote 25.0% of its investment capital to "smaller enterprises" that have a tangible net worth not exceeding $6.0 million and an average annual net income after U.S. federal income taxes not exceeding $2.0 million for the two most recent fiscal years. The SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on either the number of employees or the gross sales of the business. The SBA regulations permit licensed SBICs to make long term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in certain prohibited industries. Further, the SBA regulations require that a licensed SBIC be periodically examined and audited by the SBA staff to determine its compliance with the relevant SBA regulations. Compliance with these SBA requirements may cause the Funds to forego attractive investment opportunities that are not permitted under the SBA regulations, and may cause the Funds to make investments they otherwise would not make in order to remain in compliance with these regulations. Failure to comply with the SBA regulations could result in the loss of the SBIC licenses and the resulting inability to participate in the SBA debenture program. The SBA prohibits, without prior SBA approval, a “change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10.0% or more of a class of capital stock of a licensed SBIC. Current SBA regulations provide the SBA with certain rights and remedies if an SBIC violates their terms. A key regulatory metric for SBA is the extent of “Capital Impairment,” which is the extent of realized (and, in certain circumstances, net unrealized) losses compared with the SBIC’s private capital commitments. Interest payments, management fees, organization and other expenses are included in determining “realized losses.” SBA regulations preclude the full amount of “unrealized appreciation” from portfolio companies from being considered when calculating Capital Impairment in certain circumstances. Remedies for regulatory violations are graduated in severity depending on the seriousness of Capital Impairment or other regulatory violations. For minor regulatory infractions, the SBA issues a warning. For more serious infractions, the use of SBA debentures may be limited or prohibited, outstanding debentures can be declared to be immediately due and payable, restrictions on distributions and making new investments may be imposed and management fees may be required to be reduced. In severe cases, the SBA may require the removal of a general partner of an SBIC or its officers, direc | ||||||||
Risks Relating to Investments | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Risks Relating to Our Investments • Economic recessions or downturns could impair our portfolio companies and harm our operating results. • Our investments in portfolio companies may be risky, and we could lose all or part of our investment. • The lack of liquidity in our investments may adversely affect our business. • We may not have the funds to make additional investments in our portfolio companies that could impair the value of our portfolio. • Defaults by our portfolio companies will harm our operating results. • We are a non-diversified investment company within the meaning of the 1940 Act; therefore we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer. Risks Relating to Our Investments Economic recessions or downturns could impair our portfolio companies and harm our operating results. Many of our portfolio companies are susceptible to economic slowdowns or recessions (including industry specific downturns), including as a result of, among other things, the COVID-19 pandemic, elevated levels of inflation, and a rising interest rate environment, and may be unable to repay our debt investments during these periods. The COVID-19 pandemic has disrupted economic markets, and the prolonged economic impact is uncertain. In the past, instability in the global capital markets resulted in disruptions in liquidity in the debt capital markets, significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated credit market and the failure of major domestic and international financial institutions. In particular, in past periods of instability, the financial services sector was negatively impacted by significant write-offs as the value of the assets held by financial firms declined, impairing their capital positions and abilities to lend and invest. In an economic downturn, we may have non-performing assets or non-performing assets may increase, and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing some of our debt investments and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results. The occurrence of recessionary conditions and/or negative developments in the domestic and international credit markets may significantly affect the markets in which we do business, the value of our investments, and our ongoing operations, costs and profitability. Any such unfavorable economic conditions, including rising interest rates, may also increase our funding costs, limit our access to capital markets or negatively impact our ability to obtain financing, particularly from the debt markets. In addition, any future financial market uncertainty could lead to financial market disruptions and could further impact our ability to obtain financing. These events could limit our investment originations, limit our ability to grow and negatively impact our operating results and financial condition. Terrorist attacks, acts of war, or natural disasters may affect any market for our common stock, impact the businesses in which we invest and harm our business, operating results and financial condition. Portfolio investments may be affected by force majeure events (i.e., events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, fire, flood, earthquakes, war, terrorism and labor strikes). Some force majeure events may adversely affect the ability of a party (including a portfolio company or a counterparty to us or a portfolio company) to perform its obligations until it is able to remedy the force majeure event. In addition, the cost to a portfolio company of repairing or replacing damaged assets resulting from such force majeure events could be considerable. Additionally, a major governmental intervention into industry, including the nationalization of an industry or the assertion of control over one or more companies or its assets, could result in a loss to us, including if its investment in such issuer is cancelled, unwound or acquired (which could be without what we consider to be adequate compensation). To the extent we are exposed to investments in portfolio companies that as a group are exposed to such force majeure events, the risks and potential losses to us are enhanced. The continued threat of global terrorism and the impact of military and other action will likely continue to cause volatility in the economies of certain countries, contribute to increased market volatility and economic uncertainties or deterioration in the United States and worldwide and various aspects thereof, including in prices of commodities. Our portfolio investments may involve significant strategic assets having a national or regional profile. The nature of these assets could expose them to a greater risk of being the subject of a terrorist attack than other assets or businesses. Acts of war could similarly lead to such volatility. For example, in response to the ongoing conflict between Russia and Ukraine, the United States and other countries have imposed sanctions or other restrictive actions against Russia. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, could have a material adverse effect on our business, financial condition, cash flows, and results of operations, and could cause the market value of our common stock to decline. In addition, these market and economic disruptions could negatively impact the operating results of our portfolio companies, which may, in turn, impact the valuation of such portfolio companies, and impact our business, operating resulting and financial condition. Our investments in certain industry sectors, such as the energy sector, may be subject to significant political, economic and capacity risks that may increase the possibility that we lose all or a part of our investment. The revenues and profitability of certain portfolio companies may be significantly affected by the future prices of and the demand for oil, natural gas liquids and natural gas, which are inherently uncertain. Investments in energy companies may have significant shortfalls in projected cash flow if prices decline from levels projected at the time the investment is made. Various factors beyond our control could affect energy prices, including worldwide supplies, political instability or armed conflicts in oil, natural gas liquids and natural gas producing regions, the price of foreign imports, the level of consumer demand, the price and availability of alternative fuels, capacity constraints and changes in existing government regulation, taxation and price controls. Energy prices have fluctuated greatly during the past, and energy markets may continue to be volatile. Changes in healthcare laws and other regulations applicable to some of our portfolio companies’ businesses may constrain their ability to offer their products and services. Changes in healthcare or other laws and regulations applicable to the businesses of some of our portfolio companies may occur that could increase their compliance and other costs of doing business, require significant systems enhancements, or render their products or services less profitable or obsolete, any of which could have a material adverse effect on their results of operations. There has also been an increased political and regulatory focus on healthcare laws in recent years, and new legislation could have a material effect on the business and operations of some of our portfolio companies. If our portfolio companies are unable to protect their intellectual property rights, our business and prospects could be harmed, and if portfolio companies are required to devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced. Our future success and competitive position will depend in part upon the ability of our portfolio companies to obtain, maintain and protect proprietary technology used in their products and services. The intellectual property held by our portfolio companies often represents a substantial portion of the collateral securing our investments and/or constitutes a significant portion of the portfolio companies’ value and may be available in a downside scenario to repay our loans. Our portfolio companies will rely, in part, on patent, trade secret, and trademark law to protect that technology, but competitors may misappropriate their intellectual property, and disputes as to ownership of intellectual property may arise. Portfolio companies may, from time to time, be required to institute litigation to enforce their patents, copyrights, or other intellectual property rights; protect their trade secrets; determine the validity and scope of the proprietary rights of others; or defend against claims of infringement. Such litigation could result in substantial costs and diversion of resources. Similarly, if a portfolio company is found to infringe or misappropriate a third-party’s patent or other proprietary rights, it could be required to pay damages to the third party, alter its products or processes, obtain a license from the third-party, and/or cease activities utilizing the proprietary rights, including making or selling products utilizing the proprietary rights. Any of the foregoing events could negatively affect both the portfolio company’s ability to service our debt investment and the value of any related debt and equity securities that we own, as well as any collateral securing our investment. Cybersecurity risks and cyber incidents may adversely affect our business or the business of our portfolio companies by causing a disruption to our operations or the operations of our portfolio companies, a compromise or corruption of our confidential information or the confidential information of our portfolio companies and/or damage to our business relationships or the business relationships of our portfolio companies, all of which could negatively impact the business, financial condition and operating results of us or our portfolio companies. A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of the information resources of us or our portfolio companies. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems or those of our portfolio companies for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to business relationships. As our and our portfolio companies’ reliance on technology has increased, so have the risks posed to our information systems, both internal and those provided by third-party service providers, and the information systems of our portfolio companies. We have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber-incident, do not guarantee that a cyber-incident will not occur and/or that our financial results, operations or confidential information will not be negatively impacted by such an incident. Our investments in portfolio companies may be risky, and we could lose all or part of our investment. Investing in lower middle-market companies involves a number of significant risks. Among other things, these companies: may have limited financial resources and may be unable to meet their obligations under their debt instruments that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees from subsidiaries or affiliates of portfolio companies that we may have obtained in connection with our investment; may have shorter operating histories, narrower product lines and smaller market shares, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns, than larger businesses; are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us; generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position; and generally have less publicly available information about their businesses, operations and financial condition. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and may lose all or part of our investment. In addition, in the course of providing significant managerial assistance to certain portfolio companies, certain of our management and directors may serve as directors on the boards of such companies. To the extent that litigation arises out of investments in these portfolio companies, our management and directors may be named as defendants in such litigation, which could result in an expenditure of funds (through our indemnification of such officers and directors) and the diversion of management time and resources. The lack of liquidity in our investments may adversely affect our business. All of our assets may be invested in illiquid securities, and a substantial portion of our investments in leveraged companies will be subject to legal and other restrictions on resale or will otherwise be less liquid than more broadly traded public securities. The illiquidity of these investments may make it difficult for us to sell such investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. However, to maintain the elections to be regulated as a BDC and as a RIC, we may have to dispose of investments if they do not satisfy one or more of the applicable criteria under the respective regulatory frameworks. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we or our investment advisor have material nonpublic information regarding such portfolio company. We may not have the funds to make additional investments in our portfolio companies that could impair the value of our portfolio. After our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to such company or have the opportunity to increase our investment through the exercise of a warrant to purchase common stock. There is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Any decisions not to make a follow-on investment or any inability on our part to make such an investment may have a negative impact on a portfolio company in need of such an investment, may result in a missed opportunity for us to increase our participation in a successful operation or may reduce the expected yield on the investment. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our level of risk, because we prefer other opportunities or because we are inhibited by compliance with BDC requirements, SBA regulations or the desire to maintain our RIC tax treatment. Our ability to make follow-on investments may also be limited by our investment advisor’s allocation policy. Portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies. We will invest in second lien and subordinated debt as well as equity issued by lower middle-market companies. The portfolio companies generally have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such senior debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company. There may be circumstances where our debt investments could be subordinated to claims of other creditors or could be subject to lender liability claims. Even though we may have structured certain of our investments as senior loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt investment and subordinate all or a portion of our claim to that of other creditors. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance. Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us. Certain loans we make to portfolio companies are and will be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The first priority liens on the collateral secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the company under the agreements governing the loans. The holders of obligations secured by the first priority liens on the collateral will generally control the liquidation of and be entitled to receive proceeds from any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds are not sufficient to repay amounts outstanding under the loan obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the company’s remaining assets, if any. The rights we may have with respect to the collateral securing the loans we make to portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements entered into with the holders of senior debt. Under an intercreditor agreement, at any time that obligations having the benefit of the first priority liens are outstanding, any of the following actions that may be taken in respect to the collateral will be at the direction of the holders of the obligations secured by the first priority liens: the ability to cause the commencement of enforcement proceedings against the collateral; the ability to control the conduct of such proceedings; the approval of amendments to collateral documents; releases of liens on the collateral; and waivers of past defaults under collateral documents. We may not have the ability to control or direct such actions, even if our rights are adversely affected. We may hold the debt securities of leveraged companies that may, due to the significant volatility of such companies, enter into bankruptcy proceedings. Leveraged companies may experience bankruptcy or similar financial distress. The bankruptcy process has a number of significant inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of the creditors. A bankruptcy filing by an issuer may adversely and permanently affect the issuer. If the proceeding is converted to a liquidation, the value of the issuer may not equal the liquidation value that was believed to exist at the time of the investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective. The administrative costs in connection with a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, any contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial. Any unrealized depreciation we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution. As a BDC, we are required to carry our investments at fair value as determined in good faith by our board of directors. Decreases in the fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our investment portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to the affected investments. This could result in realized losses in the future and ultimately in reductions of our income available for distribution in future periods. Defaults by our portfolio companies will harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets. This could trigger cross-defaults under other agreements and jeopardize the portfolio company’s ability to meet its obligations under the debt or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, reduced interest and/or loss of principal, with a defaulting portfolio company. To the extent OID and PIK-interest constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash representing such income. Our investments may include original-issue-discount instruments and contractual PIK-interest arrangements. To the extent OID or PIK-interest constitutes a portion of our income, we are exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including the following: The higher interest rates of OID and PIK instruments reflect the payment deferral, which results in a higher principal amount at the maturity of the instrument as compared to the original principal amount of the instrument, and increased credit risk associated with these instruments, and OID and PIK instruments generally represent a significantly higher credit risk than coupon loans. Even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is supposed to occur at the maturity of the obligation. OID and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. OID and PIK-income may also create uncertainty about the source of our cash distributions. To the extent we provide loans with interest-only payments or moderate loan amortization, the majority of the principal payment or amortization of principal may be deferred until loan maturity. Because this debt generally allows the borrower to make a large lump-sum payment of principal at the end of the loan term, there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. For accounting purposes, any cash distributions to stockholders representing OID and PIK-income are not treated as coming from paid-in capital, even though the cash to pay them comes from the offering proceeds. As a result, despite the fact that a distribution representing OID and PIK-income could be paid out of amounts invested by our stockholders, the 1940 Act does not require that stockholders be given notice of this fact by reporting it as a return of capital. In certain cases, we may recognize taxable income before or without receiving corresponding cash payments and, as a result, we may have difficulty meeting the annual distribution requirement necessary to maintain our tax treatment as a RIC. We do not expect to control many of our portfolio companies. We do not expect to control many of our portfolio companies, even though we may have board representation or board observation rights, and the debt agreements may contain certain restrictive covenants. As a result, we are subject to the risk that a portfolio company in which we invest may make business decisions with which we disagree and the management of such company, as representatives of the holders of the company’s common equity, may take risks or otherwise act in ways that do not serve our interests as debt investors. Due to the lack of liquidity for our investments in private companies in the lower middle-market, we may not be able to dispose of our interests in our portfolio companies as readily as we would like or at an appropriate valuation. As a result, a portfolio company may make decisions that could decrease the value of our portfolio holdings. We are a non-diversified investment company within the meaning of the 1940 Act; therefore, we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer. We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer and the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, while we are not targeting any specific industries, our investments may be concentrated in relatively few industries. As a result, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond the asset diversification requirements applicable to RICs, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity. We are subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity. When this occurs, we will generally reinvest these proceeds in temporary investments (cash equivalents), pending future investments in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being repaid, and we could experience significant delays in reinvesting these amounts. In addition, any future investment of such amounts in a new portfolio company may also be at lower yields than the investment that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our common stock. We may not realize gains from our equity investments. Certain investments that we have made in the past and may make in the future include warrants or other equity or equity-related securities. Typically we make non-control equity investments in portfolio companies. Our goal is to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer. We may be unable to exercise these put rights for the consideration provided in our investment documents if the issuer is in financial distress. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. If our primary investments are deemed not to be qualifying assets, we could be precluded from investing in our desired manner or deemed to be in violation of the 1940 Act. In order to maintain our status as a BDC, we may not acquire any assets other than “qualifying assets” unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. We believe that most of the investments that we may acquire in the future will constitute qualifying assets. However, we may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to BDC | ||||||||
Risks Relating to Common Stock | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Risks Relating to Our Common Stock • Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. • If, in the future, we sell common stock at a discount to our net asset value per share, stockholders who do not participate in such sale will experience immediate dilution in an amount that may be material. • Our net asset value may have changed significantly since our last valuation. • The market price of our securities may fluctuate significantly. • Sales of substantial amounts of our common stock may have an adverse effect on the market price of our common stock. Risks Relating to Our Common Stock Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. Shares of closed-end investment companies, including BDCs, frequently trade at a discount from net asset value. This characteristic of closed-end investment companies and BDCs is separate and distinct from the risk that our net asset value per share may decline. We cannot predict whether our common stock will trade at, above or below net asset value. In addition, if our common stock trades below net asset value, we will generally not be able to issue additional common stock at the market price without first obtaining the approval of our stockholders and our Independent Directors. On June 29, 2022 our stockholders voted to allow us to sell or otherwise issue common stock at a price below net asset value per share for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2023 Annual Meeting of Stockholders. Selling or otherwise issuing shares of FIC’s common stock below its then current net asset value per share would result in a dilution of FIC’s existing common stockholders. The maximum number of shares issuable below net asset value pursuant to the authority granted by our stockholders that could result in such dilution is limited to 25.0% of FIC’s then outstanding common stock immediately prior to each such sale. We do not intend to sell or otherwise issue shares of our common stock below net asset value unless our board of directors determines that it would be in our stockholders’ best interests to do so. The level of net asset value dilution that could result from such an offering is not limited. Market conditions may increase the risks associated with our business and an investment in us. The current worldwide financial market situation may contribute to increased market volatility, may have long-term effects on the U.S. and worldwide financial markets and may cause economic uncertainties or deterioration in the United States and worldwide. These conditions raised the level of many of the risks described herein and, if repeated or continued, could have an adverse effect on our portfolio companies and on their results of operations, financial conditions, access to credit and capital. The stress in the credit market and upon banks has led other creditors to tighten credit and the terms of credit. In certain cases, senior lenders to our portfolio companies can block payments by our portfolio companies in respect of our loans to such portfolio companies. In turn, these could have adverse effects on our business, financial condition, results of operations, distributions to our stockholders, access to capital, valuation of our assets and our stock price. Notwithstanding any recent gains across either the equity or debt markets, these conditions may continue for a prolonged period of time or worsen in the future. If, in the future, we sell common stock at a discount to our net asset value per share, stockholders who do not participate in such sale will experience immediate dilution in an amount that may be material. On June 29, 2022, our stockholders approved our ability to sell or otherwise issue shares of our common stock at a discount from net asset value per share, as long as the cumulative number of shares sold pursuant to such authority does not exceed 25.0% of our then outstanding common stock immediately prior to each such sale, for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. Our stockholders will be asked to vote on a similar proposal at our 2023 Annual Meeting of Stockholders. If we sell or otherwise issue shares of our common stock at a discount to net asset value, it will pose a risk of dilution to our stockholders. In particular, stockholders who do not purchase additional shares at or below the discounted price in proportion to their current ownership will experience an immediate decrease in net asset value per share (as well as in the aggregate net asset value of their shares if they do not participate at all). These stockholders will also experience a disproportionately greater decrease in their participation in our earnings and assets and their voting power than the increase we experience in our assets, potential earning power and voting interests from such issuances or sale. In addition, such issuances or sales may adversely affect the price at which our common stock trades. For additional information and hypothetical examples of these risks, see “Sales of Common Stock Below Net Asset Value,” and for actual dilution illustrations specific to an offering, see the prospectus supplement pursuant to which such sale is made. Our net asset value may have changed significantly since our last valuation. Our board of directors determines the fair value of our portfolio investments on a quarterly basis based on input from our investment advisor, our audit committee and, as to certain of our investments, a third party independent valuation firm. While the board of directors will review our net asset value per share in connection with any offering, it will not always have the benefit of input from the independent valuation firm when it does so. The fair value of various individual investments in our portfolio and/or the aggregate fair value of our investments may change significantly over time. If the fair value of our investment portfolio at December 31, 2022 is less than the fair value was at the time of an offering during 2022, then we may record an unrealized loss on our investment portfolio and may report a lower net asset value per share than was reflected in the Selected Consolidated Financial Data and the financial statements included in the prospectus supplement of that offering. If the fair value of our investment portfolio at December 31, 2022 is greater than the fair value at the time of an offering during 2022, we may record an unrealized gain on our investment portfolio and may report a greater net asset value per share than so reflected in the prospectus supplement of that offering. Upon publication of this information in connection with our announcement of operating results for our fiscal year ended December 31, 2022 , the market price of our common stock may fluctuate materially, and may be substantially less than the price per share you pay for our common stock in an offering. The market price of our securities may fluctuate significantly. The market price and liquidity of the market for shares of our common stock may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include: significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which is not necessarily related to the operating performance of these companies; exclusion of our common stock from certain market indices, such as the Russell 2000 Financial Services Index, could reduce the ability of certain institutional investors to own our common stock and could put short term pressure on our common stock; changes in regulatory policies or tax guidelines, particularly with respect to RICs, BDCs or SBICs; loss of RIC or BDC status; loss of status as an SBIC for the Funds, or any other SBIC subsidiary we may form; changes or perceived changes in earnings or variations in operating results; changes or perceived changes in the value of our portfolio of investments; changes in accounting guidelines governing valuation of our investments; any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; departure of our investment advisor’s key personnel; operating performance of companies comparable to us; general economic trends and other external factors; and loss of a major funding source. Investing in our securities may involve an above average degree of risk. The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies may be highly speculative; therefore, an investment in our securities may not be suitable for someone with lower risk tolerance. Sales of substantial amounts of our common stock may have an adverse effect on the market price of our common stock. As of February 28, 2023, we had 24,842,692 s hares of common stock outstanding. Sales of substantial amounts of our common stock, or the availability of shares for sale, could adversely affect the prevailing market price of our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of equity securities should we desire to do so. If we issue preferred stock and/or debt securities, the net asset value and market value of our common stock may become more volatile. We cannot assure you that the issuance of preferred stock and/or debt securities would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock and/or debt securities would likely cause the net asset value and market value of our common stock to become more volatile. If the distribution rate on the preferred stock, or the interest rate on the debt securities, were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of our common stock would be reduced. If the distribution rate on the preferred stock, or the interest rate on the debt securities, were to exceed the net rate of return on our portfolio, the use of leverage would result in a lower rate of return to the holders of common stock than if we had not issued the preferred stock and/or debt securities. Any decline in the net asset value of our investment would be borne entirely by the holders of our common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of our common stock than if we were not leveraged through the issuance of preferred stock and/or debt securities. This decline in net asset value would also tend to cause a greater decline in the market price for our common stock. There is also a risk that, in the event of a sharp decline in the value of our net assets, we would be in danger of failing to maintain required asset coverage ratios which may be required by the preferred stock and/or debt securities or of a downgrade in the ratings of the preferred stock and/or debt securities or our current investment income might not be sufficient to meet the distribution requirements on the preferred stock or the interest payments on the debt securities. In order to counteract such an event, we might need to liquidate investments in order to fund redemption of some or all of the preferred stock and/or debt securities. In addition, we would pay (and the holders of our common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock and/or debt securities. Holders of preferred stock and/or debt securities may have different interests than holders of common stock and may at times have disproportionate influence over our affairs. Provisions of the Maryland General Corporation Law and our charter and bylaws could deter takeover attempts and have an adverse effect on the price of our common stock. The Maryland General Corporation Law contains provisions that may discourage, delay or make more difficult a change in control of us or the removal of our directors. In addition, our board of directors may, without stockholder action, authorize the issuance of shares of stock in one or more classes or series, including preferred stock. Our charter and bylaws contain provisions that limit liability and provide for indemnification of our directors and officers. These provisions and others also may have the effect of deterring hostile takeovers or delaying changes in control or management. We are generally prohibited from engaging in mergers and other business combinations with stockholders that beneficially own 10.0% or more of the voting power of our outstanding voting stock, or with their affiliates, for five years after the most recent date on which such stockholders became the beneficial owners of 10.0% or more of the voting power of our outstanding voting stock and thereafter unless our directors and stockholders approve the business combination in the prescribed manner. Maryland law may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter authorizing our board of directors to classify or reclassify shares of our stock in one or more classes or series and to cause the issuance of additional shares of our stock, including preferred stock. In addition, we have adopted a classified board of directors. A classified board may render a change in control of us or removal of our incumbent management more difficult. These provisions, as well as other provisions of our charter and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders. Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Shareholder activism, which could take many forms or arise in a variety of situations, has been increasing in the BDC space recently. While we are currently not subject to any securities litigation or shareholder activism, due to the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of securities litigation or shareholder activism. Securities litigation and shareholder activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such securities litigation and shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses related to any securities litigation and activist shareholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and shareholder activism. | ||||||||
Dependence on Investment Advisors | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We are dependent upon our investment advisor’s managing members and our executive officers for our future success. If our investment advisor was to lose any of its managing members or we lose any of our executive officers, our ability to achieve our investment objective could be significantly harmed. We depend on the investment expertise, skill and network of business contacts of the managing members of our investment advisor, who evaluate, negotiate, structure, execute and monitor our investments. Our future success will depend to a significant extent on the continued service and coordination of the investment professionals of our investment advisor and executive officers. Certain investment professionals and executives may not devote all of their business time to our operations and may have other demands on their time as a result of other activities. The departure of any of these individuals could have a material adverse effect on our ability to achieve our investment objective. | ||||||||
Dependence On Investment Professionals | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our business model depends, to a significant extent, upon strong referral relationships with financial institutions, sponsors and investment professionals. Any inability of our investment advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We depend upon the investment professionals of our investment advisor to maintain their relationships with financial institutions, sponsors and other investment professionals, and we intend to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the investment professionals of our investment advisor fail to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the investment professionals of our investment advisor have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future. | ||||||||
Failure to Manage Business and Future Growth Material Adverse Effect on Business, Financial Condition and Results of Operations | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our ability to achieve our investment objective and grow depends on our ability to manage our business and deploy our capital effectively. This depends, in turn, on our investment advisor’s ability to identify, evaluate and monitor companies that meet our investment criteria. Accomplishing our investment objectives on a cost-effective basis depends upon our investment advisor’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our ability to access financing on acceptable terms. Our investment advisor has substantial responsibilities under the Investment Advisory Agreement. In addition, our investment advisor’s investment professionals may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. | ||||||||
Credit Loss Risk | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may suffer credit losses and our investments could be rated below investment grade. Private debt in the form of second lien, subordinated, and first lien loans (senior secured or unitranche loans) to corporate and asset-based borrowers is highly speculative and involves a high degree of risk of credit loss, and therefore an investment in our shares of common stock may not be suitable for someone with a low tolerance for risk. These risks are likely to increase during an economic downturn or recession. In addition, investments in our portfolio typically are not rated by any rating agency. We believe that if such investments were rated, the vast majority would be rated below investment grade (which is sometimes referred to as “junk”) due to speculative characteristics of the issuer’s capacity to pay interest and repay principal. Our investments may result in an amount of risk, volatility or potential loss of principal that is greater than that of alternative investments. | ||||||||
Borrow Money and in Future Issue Additional Senior Securities May Increase Risk of Investing in Company | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Because we borrow money and may in the future issue additional senior securities, including preferred stock and debt securities, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us. Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested and, therefore, increase the risks associated with investing in us. The Funds borrow from and issue debt securities to the SBA, and we may borrow from banks and other lenders in the future. The SBA has fixed dollar claims on the Funds’ assets that are superior to the claims of our stockholders. We may also borrow from banks and other lenders or issue additional senior securities including preferred stock and debt securities in the future. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not used leverage. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make distributions to our stockholders. Leverage is generally considered a speculative investment technique. Our ability to achieve our investment objectives may depend in part on our ability to achieve additional leverage on favorable terms by borrowing from the SBA, banks or other lenders, and there can be no assurance that such additional leverage can in fact be achieved. As a BDC, we are generally required to meet a coverage ratio at least equal to 150.0% of total assets to total borrowings and other senior securities, which include all of our borrowings (other than the Funds’ SBA leverage under the terms of SEC exemptive relief) and any preferred stock we may issue in the future. If this ratio declines below 150.0%, we may not be able to incur additional debt and may need to sell a portion of our investments to repay some debt when it is disadvantageous to do so, and we may not be able to make distributions to our stockholders. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed Return on Our Portfolio (Net of Expenses) (10.0 ) % (5.0 ) % 0.0 % 5.0 % 10.0 % Corresponding return to common stockholder (1) ( 23.0 ) % ( 13.3 ) % ( 3.5 ) % 6.2 % 16.0 % (1) Assumes $935,960 in total assets, $153,000 in outstanding SBA debentures, no borrowings under the Credit Facility (as defined below), $16,880 in Secured Borrowings, $250,000 outstanding of our unsecured notes, $480,343 in net assets as of December 31, 2022, and an average cost of funds of 4.037%. | ||||||||
Renduction in Asset Coverage Requirement May Increase Risk of Investing In Company | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Effective April 29, 2020, our asset coverage requirement was reduced from 200% to 150%, which could increase the risk of investing in the Company. The 1940 Act generally prohibits the Company from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). However, in March 2018, the Small Business Credit Availability Act (“the “SBCA”) modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements under the 1940 Act are met. On April 29, 2019, our Board, including a majority of the non-interested directors, approved a minimum asset coverage ratio of 150% as set forth in Section 61(a)(2) of the 1940 Act. As a result, we are subject to the 150% asset coverage ratio, effective as of April 29, 2020. We are required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage. Leverage is generally considered a speculative investment technique and increases the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, our stockholders will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the NAV attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments, or other payments related to our securities. Increased leverage may also cause a downgrade of our credit rating. Leverage is generally considered a speculative investment technique. | ||||||||
Value of Portfolio Investment and Valuation Process Creates Conflict of Interest | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | All of our portfolio investments are recorded at fair value as determined in good faith by our board of directors, and, as a result, there is uncertainty as to the value of our portfolio investments and the valuation process for certain of our portfolio holdings creates a conflict of interest. All of our portfolio investments take the form of debt and equity securities that are not publicly-traded. The debt and equity securities in which we invest for which market quotations are not readily available are valued at fair value as determined in good faith by our board of directors. As part of the valuation process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments: a comparison of the portfolio company’s securities to comparable publicly-traded securities; the enterprise value of a portfolio company; the nature and realizable value of any collateral; the portfolio company’s ability to make payments and its earnings and discounted cash flow; the markets in which the portfolio company does business; and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future and other relevant factors. The fair value of each investment in our portfolio is determined quarterly by our board of directors. Any changes in fair value of portfolio securities from the prior period are recorded in our consolidated statement of operations as net change in unrealized appreciation or depreciation. In connection with that determination, investment professionals from our investment advisor prepare portfolio company valuations based upon the most recent portfolio company financial statements available and projected financial results of each portfolio company. In addition, certain members of our board of directors have a pecuniary interest in our investment advisor. The participation of our investment advisor’s investment professionals in our valuation process, and the pecuniary interest in our investment advisor by certain members of our board of directors, may result in a conflict of interest as the management fees that we pay our investment advisor are based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts). Our board of directors engages one or more independent third-party valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, we may determine that it is not cost-effective, and as a result it is not in our stockholders’ best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not limited to, situations where we determine that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. Our board of directors consulted with the independent valuation firm(s) in arriving at our determination of fair value for 16 and 17 of our portfolio company investments representing 29.5% and 21.8% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months ended December 31, 2022 and 2021, respectively) as of December 31, 2022 and 2021, respectively. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Declines in prices and liquidity in the corporate debt markets may also result in significant net unrealized depreciation in our debt portfolio. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such investments. | ||||||||
Highly Competitive Market for Investment Opportunities | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. A number of entities compete with us to make the types of investments that we make. We compete with public and private funds, other BDCs, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we match our competitors’ pricing, terms and structure, we may experience a decrease in net investment income or an increase in risk of capital loss. A significant part of our competitive advantage stems from the fact that the lower middle-market is underserved by traditional commercial and investment banks, and generally has less access to capital. A significant increase in the number and/or the size of our competitors in this target market could force us to accept less attractive investment terms. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the source-of-income, asset diversification and distribution requirements we must satisfy to maintain our RIC tax treatment. The competitive pressures we face may have a material adverse effect on our business, financial condition and results of operations. As a result of this existing and potentially increasing competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objective. | ||||||||
Management and Incentive Fee Structure For Investment Advisor Not Fully Aligned with Stockholders And May Encourage to Make Speculative Investment | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our management and incentive fee structure may create incentives for our investment advisor that are not fully aligned with the interests of our stockholders and may encourage our investment advisor to make speculative investments. The management and incentive fees paid to our investment advisor are based on our total assets (other than cash or cash equivalents but including assets purchased with borrowed amounts), and our investor advisor may therefore benefit when we incur debt or use leverage. This fee structure may encourage our investment advisor to cause us to borrow money to finance additional investments. Under certain circumstances, the use of borrowed money may increase the likelihood of default, which would disfavor our stockholders. Our board of directors is charged with protecting our interests by monitoring how our investment advisor addresses these and other conflicts of interests. Our board of directors is not expected to review or approve each borrowing or incurrence of leverage. However, our board of directors periodically reviews our investment advisor’s portfolio management decisions and portfolio performance. In addition, our board of directors at least annually reviews the services provided by and fees paid to our investment advisor. In connection with these reviews, our board of directors, including a majority of our Independent Directors, considers whether the fees and expenses (including those related to leverage) that we pay to our investment advisor are fair and reasonable in relation to the services provided and must approve renewal of our Advisory Agreement. The part of the incentive fee payable to our investment advisor that relates to our net investment income is computed and paid on income that includes interest income that has been accrued but not yet received in cash. This fee structure may encourage our investment advisor to favor debt financings that provide for deferred interest (PIK interest), rather than current cash payments of interest. Our investment advisor may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because our investment advisor is not obligated to reimburse us for any incentive fees received even if we subsequently incur losses or never receive in cash the deferred interest that was previously accrued. The incentive fee is based, in part, upon net capital gains realized on our investments. Unlike the portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. As a result, our investment advisor may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns. | ||||||||
Obligated to Pay Investment Advisor Incentive Compensation | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may be obligated to pay our investment advisor incentive compensation even if we incur a loss and may pay more than 20.0% of our net capital gains because we cannot recover payments made in previous years. Our investment advisor will be entitled to incentive compensation for each fiscal quarter in an amount equal to a percentage of the excess of our pre-incentive fee net investment income for that quarter above a threshold return for that quarter. Our pre-incentive fee net investment income for incentive compensation purposes excludes realized and unrealized capital losses that we may incur in the fiscal quarter, even if such capital losses result in a net loss on our consolidated statement of operations for that quarter. Thus, we may be required to pay our investment advisor incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio or we incur a net loss for that quarter. Further, if we pay an incentive fee of 20.0% of our realized capital gains (net of all realized capital losses and unrealized capital depreciation on a cumulative basis) and thereafter experience additional realized capital losses or unrealized capital depreciation, we will not be able to recover any portion of the incentive fee previously paid. | ||||||||
General Inrease in Interest Rates | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | A general increase in interest rates will likely have the effect of making it easier for the investment advisor to receive incentive fees, without necessarily resulting in an increase in our net earnings. We are currently in a rising interest rate environment. Given the structure of the Investment Advisory Agreement, any general increase in interest rates can be expected to lead to higher interest rates applicable to our debt investments and will likely have the effect of making it easier for the investment advisor to meet the quarterly hurdle rate for payment of income incentive fees under the Investment Advisory Agreement without any additional increase in relative performance on the part of the investment advisor. This may occur without a corresponding increase in distributions to our stockholders. In addition, in view of the catch-up provision applicable to income incentive fees under the Investment Advisory Agreement, the investment advisor could potentially receive a significant portion of the increase in our investment income attributable to such a general increase in interest rates. If that were to occur, our increase in net earnings, if any, would likely be significantly smaller than the relative increase in the investment advisor’s income incentive fee resulting from such a general increase in interest rates. | ||||||||
Potential Conflicts of Interest Related to Obligations of Investment Advisor | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may have potential conflicts of interest related to obligations that our investment advisor may have to other clients. Currently, the Company, the Funds, Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P. are the only investment vehicles managed by our investment advisor. The Investment Advisory Agreement does not limit our investment advisor’s ability to act as an investment advisor to other funds, including other BDCs, or other investment advisory clients. To the extent our investment advisor acts as an investment advisor to other funds or clients, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may have conflicts of interest with our investment advisor or its other clients that elect to invest in similar types of securities as those in which we invest. Members of our investment advisor’s investment committee serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do, or of investment funds or other investment vehicles managed by our investment advisor. In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders. Our investment advisor will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with an allocation policy approved by our board of directors. To the extent our investment advisor forms affiliates, including Fidus Credit Opportunities, L.P., Fidus Equity Opportunities Fund, L.P., and Fidus Equity Fund I, L.P., we may co-invest on a concurrent basis with such affiliates, subject to compliance with applicable regulations and regulatory guidance and our allocation procedures. While we may co-invest with investment entities managed by our investment advisor or its affiliates, to the extent permitted by the 1940 Act and the rules and regulations thereunder, the 1940 Act imposes significant limits on co-investment. On January 4, 2017, the SEC granted us an exemptive order that expands our ability to co-invest in portfolio companies with certain of our affiliates managed by our investment advisor in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions (the “Order”). Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching by us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies. We intend to co-invest, subject to the conditions included in the Order. However, neither we nor our affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them. | ||||||||
Investment Advisor or Committee May Possess Material Non-Public Information | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investment advisor or its investment committee may, from time to time, possess material non-public information, limiting our investment discretion. The investment professionals of our investment advisor may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of applicable law or regulations, we could be prohibited for a period of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us. | ||||||||
Conflicts With Investment Advisor Related to Other Arrangements | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may have conflicts related to other arrangements with our investment advisor. We entered into a license agreement with Fidus Partners, LLC under which Fidus Partners, LLC granted us a non-exclusive (provided that there is not a change in control of Fidus Partners, LLC), royalty-free license to use the name “Fidus.” Some of the members of our investment advisor’s investment committee and the senior origination professionals of our investment advisor are members of Fidus Partners, LLC. See Item 1. “Business — Management and Other Agreements — License Agreement.” In addition, we rent office space from our investment advisor and pay to our investment advisor our allocable portion of overhead and other expenses incurred in performing its obligations under the Administration Agreement, such as our allocable portion of the cost of our chief financial officer and chief compliance officer. This creates conflicts of interest that our board of directors must monitor. | ||||||||
SBA Regulations | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The Funds are licensed by the SBA, and, therefore, are subject to SBA regulations. The Funds are licensed to operate as SBICs and are regulated by the SBA. Under current SBA regulations, a licensed SBIC can provide capital to eligible "small businesses" that have a tangible net worth not exceeding $24.0 million and an average annual net income after U.S. federal income taxes not exceeding $8.0 million for the two most recent fiscal years. In addition, a licensed SBIC must devote 25.0% of its investment capital to "smaller enterprises" that have a tangible net worth not exceeding $6.0 million and an average annual net income after U.S. federal income taxes not exceeding $2.0 million for the two most recent fiscal years. The SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on either the number of employees or the gross sales of the business. The SBA regulations permit licensed SBICs to make long term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in certain prohibited industries. Further, the SBA regulations require that a licensed SBIC be periodically examined and audited by the SBA staff to determine its compliance with the relevant SBA regulations. Compliance with these SBA requirements may cause the Funds to forego attractive investment opportunities that are not permitted under the SBA regulations, and may cause the Funds to make investments they otherwise would not make in order to remain in compliance with these regulations. Failure to comply with the SBA regulations could result in the loss of the SBIC licenses and the resulting inability to participate in the SBA debenture program. The SBA prohibits, without prior SBA approval, a “change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10.0% or more of a class of capital stock of a licensed SBIC. Current SBA regulations provide the SBA with certain rights and remedies if an SBIC violates their terms. A key regulatory metric for SBA is the extent of “Capital Impairment,” which is the extent of realized (and, in certain circumstances, net unrealized) losses compared with the SBIC’s private capital commitments. Interest payments, management fees, organization and other expenses are included in determining “realized losses.” SBA regulations preclude the full amount of “unrealized appreciation” from portfolio companies from being considered when calculating Capital Impairment in certain circumstances. Remedies for regulatory violations are graduated in severity depending on the seriousness of Capital Impairment or other regulatory violations. For minor regulatory infractions, the SBA issues a warning. For more serious infractions, the use of SBA debentures may be limited or prohibited, outstanding debentures can be declared to be immediately due and payable, restrictions on distributions and making new investments may be imposed and management fees may be required to be reduced. In severe cases, the SBA may require the removal of a general partner of an SBIC or its officers, directors, managers or partners, or the SBA may obtain appointment of a receiver for the SBIC. | ||||||||
SBA Regulations Limit Amount Available to be Borrowed By SBIC | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | SBA regulations limit the amount of SBA-guaranteed debt that may be borrowed by an SBIC. The SBA regulations currently limit the amount that is available to be borrowed by any SBIC and guaranteed by the SBA to 300.0% of an SBIC’s regulatory capital or $175.0 million, whichever is less. For two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million. If the Funds borrow the maximum amount from the SBA and thereafter require additional capital, our cost of capital may increase, and there is no assurance that we will be able to obtain additional financing on acceptable terms. Moreover, the Funds’ current status as SBICs does not automatically assure that they will continue to receive funding through the SBA debenture program. Receipt of SBA debenture funding is dependent upon the Funds’ continuing compliance with SBA regulations and policies and there being funding available. The amount of SBA debenture funding available to SBICs is dependent upon annual Congressional authorizations and in the future may be subject to annual Congressional appropriations. There can be no assurance that there will be sufficient SBA debenture funding available at the times desired by the Funds. The debentures issued by the Funds and guaranteed by the SBA have a maturity of ten years and bear interest semi-annually at fixed rates. Certain of the Funds’ SBA debentures begin to mature in 2025 and will require repayment on or before the respective maturity dates. The Funds will need to generate sufficient cash flow to make required debt payments on such debentures. If the Funds are unable to generate such cash flow, the SBA, as guarantor of the debentures, will have a superior claim to our assets over our stockholders in the event the Funds liquidate or the SBA exercises its remedies under such debentures as the result of a default by the Funds. | ||||||||
Minimum Distribution Requirement to Maintain Status as RIC | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The Funds, as SBICs, are limited in their ability to make distributions to us, which could result in us being unable to meet the minimum distribution requirements to maintain our status as a RIC. In order to maintain our tax treatment as a RIC, we are required to timely distribute to our stockholders on an annual basis 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses. For this purpose, our taxable income will include the income of the Funds (and any other entities that are disregarded as separate from us for U.S. federal income tax purposes). The Funds’ ability to make distributions to us may be limited by the Small Business Investment Act of 1958. As a result, in order to maintain our tax treatment as a RIC, we may be required to make distributions attributable to the Funds’ income without receiving any corresponding cash distributions with respect to such income. We can make no assurances that the Funds will be able to make, or not be limited in making, distributions to us. If we are unable to satisfy the annual distribution requirements, we may fail to maintain our tax treatment as a RIC, which would result in the imposition of corporate-level U.S. federal income tax on our entire taxable income without regard to any distributions made by us. See “We will be subject to U.S. federal income tax at corporate rates if we are unable to maintain our tax treatment as a RIC under Subchapter M of the Code.” | ||||||||
Change in Interest Rate Affect Cost of Capital and Net Investment Income | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Changes in interest rates will affect our cost of capital and net investment income. In response to market indicators showing a rise in inflation, since March 2022, the Federal Reserve has been rapidly increasing interest rates and has indicated that it would consider additional rate hikes in response to ongoing inflation concerns. Some of our debt investments bear interest at fixed rates and the value of these investments could be negatively affected by increases in market interest rates. In addition, to the extent that we borrow additional funds to make investments, an increase in interest rates would make it more expensive for us to use debt to finance our investments and adversely affect our performance if such increases cause our borrowing costs to rise at a rate in excess of the rate that our investments yield. As a result, a significant increase in market interest rates could both reduce the value of our portfolio investments and increase our cost of capital, which would reduce our net investment income. Also, an increase in interest rates available to investors could make an investment in shares of our common stock less attractive if we are not able to increase our distribution rate, which could reduce the value of our common stock. It is possible that the Federal Reserve’s tightening cycle also could result in a recession in the United States. Conversely, a decrease in interest rates may have an adverse impact on our returns by requiring us to seek lower yields on our debt investments and by increasing the risk that our portfolio companies will prepay the debt investments, resulting in the need to redeploy capital at potentially lower rates. | ||||||||
Risk Related to Inflation | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Inflation may adversely affect the business, results of operations and financial condition of our portfolio companies, which may, in turn, impact the valuation of such portfolio companies. Certain of our portfolio companies may be impacted by inflation, which may, in turn, impact the valuation of such portfolio companies. If such portfolio companies are unable to pass any increases in their costs along to their customers, it could adversely affect their results and their ability to pay interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce our net assets resulting from operations. | ||||||||
Changes Related to Discontinuation of LIBOR | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Changes relating to the discontinuation of LIBOR may adversely affect the value of our portfolio of LIBOR-indexed, floating-rate debt securities. LIBOR is an index rate that historically has been widely used in lending transactions and remains a common reference rate for setting the floating interest rate on private loans. LIBOR typically has been the reference rate used in floating-rate loans extended to our portfolio companies and, to some degree, is expected to continue to be used as a reference rate until such time that private markets have fully transitioned to using the Secured Overnight Financing Rate (“SOFR”), or other alternative reference rates recommended by applicable market regulators. Uncertainty relating to the LIBOR calculation process, the valuation of LIBOR alternatives, and other economic consequences from the phasing out of LIBOR may adversely affect our results of operations, financial condition and liquidity. On March 5, 2021, the United Kingdom's Financial Conduct Authority (the "FCA"), which regulates LIBOR, announced that the ICE Benchmark Administration (“IBA”) (the entity regulated by the FCA that is responsible for calculating LIBOR) had notified the FCA of its intent, among other things, to cease providing overnight, 1, 3, 6 and 12 months USD LIBOR tenors after June 30, 2023 and all other tenors after December 31, 2021. On November 16, 2021, the FCA issued a statement confirming that starting January 1, 2022, entities supervised by the FCA will be prohibited from using LIBORs, including USD LIBOR, that will be discontinued as of December 31, 2021 as well as, except in very limited circumstances, those tenors of USD LIBOR that will be discontinued or declared non-representative after June 30, 2023. While LIBOR will cease to exist or be declared non-representative, there continues to be uncertainty regarding the nature of potential changes to specific USD LIBOR tenors, the development and acceptance of alternative reference rates and other reforms. Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for LIBORs and other interbank offered rates ("IBORs"). To identify a successor rate for USD LIBOR, the Alternative Reference Rates Committee (“ARRC”), U.S.-based group convened by the U.S. Federal Reserve Board and the Federal Reserve Bank of New York, was formed. The ARRC has identified SOFR as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. On July 29, 2021, the ARRC formally recommended SOFR as its preferred alternative replacement rate for LIBOR. On July 29, 2021, the ARRC also recommended a forward-looking term rate based on SOFR published by CME Group. Although SOFR appears to be the preferred replacement rate for USD LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions. There can be no guarantee that SOFR will become the dominant alternative to USD LIBOR or that SOFR will be widely used and other alternatives may or may not be developed and adopted with additional consequences. New York and several other states have passed laws intended to apply to U.S. dollar LIBOR-based contracts, securities, and instruments governed by those states’ laws. These laws established fallbacks for LIBOR when there is no or insufficient fallback rates in these contracts. The federal Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) was signed into law on March 15, 2022. The federal legislation provides a statutory fallback mechanism on a nation-wide basis to replace U.S. dollar LIBOR with a benchmark rate, selected by the Federal Reserve Board and based on SOFR, for certain contracts that reference U.S. dollar LIBOR and contain no or insufficient fallback provisions. The New York and other state laws were superseded by the LIBOR Act. On December 16, 2022, the Federal Reserve Board adopted a final rule implementing certain provisions of the LIBOR Act (“Regulation ZZ”). Regulation ZZ specifies that on the LIBOR replacement date, which is the first London banking day after June 30, 2023, the Federal Reserve Board-selected benchmark replacement, based on SOFR and including any tenor spread adjustment as provided by Regulation ZZ, will replace references to overnight, 1, 3, 6, and 12-month LIBOR in certain contracts that do not mature before the LIBOR replacement date and that do not contain adequate fallback language. The LIBOR Act Regulation ZZ could apply to certain our investments that reference LIBOR to the extent that they do not have fallback provisions or adequate fallback provisions. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market value of and/or transferability of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us, valuation measurements used by us that include LIBOR as an input, our operational processes or our overall financial condition or results of operations. For instance, if the LIBOR reference rate of our LIBOR-linked securities, loans, and other financial obligations is higher than an alternative reference rate, such as SOFR, on our alternative reference rate-linked portfolio investments, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. In addition, while the majority of our LIBOR-linked loans contemplate that LIBOR may cease to exist and allow for amendment to a new alternative reference rate without the approval of 100% of the lenders, if LIBOR ceases to exist, we could be required, in certain situations, to negotiate modifications to credit agreements governing such instruments in order to replace LIBOR with such alternative reference rate and to incorporate any conforming changes to applicable credit spreads or margins. Following the replacement of LIBOR, some or all of these credit agreements may bear interest at a lower interest rate, which could have an adverse impact on the value and liquidity of our investment in these portfolio companies and, as a result, on our results of operations. Such adverse impacts and the uncertainty of the transition could result in disputes and litigation with counterparties and borrowers regarding the implementation of alternative reference rates. | ||||||||
Ability to Involving Derivatives and Unfunded Commitment Transactions may be Limited | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our ability to enter into transactions involving derivatives and unfunded commitment transactions may be limited. In 2020, the SEC adopted Rule 18f-4 under the 1940 Act, which relates to the use of derivatives and other transactions that create future payment or delivery obligations by BDCs (and other funds that are registered investment companies). Under Rule 18f-4, for which compliance was required beginning in August 2022, BDCs that use derivatives are subject to a value-at-risk leverage limit, certain derivatives risk management program and testing requirements, and requirements related to board reporting. These requirements apply unless the BDC qualifies as a “limited derivatives user,” as defined in Rule 18f-4. A BDC that enters into reverse repurchase agreements or similar financing transactions could either (i) comply with the asset coverage requirements of Section 18, as modified by Section 61 of the 1940 Act, when engaging in reverse repurchase agreements or (ii) choose to treat such agreements as derivative transactions under Rule 18f-4. In addition, under Rule 18f-4, a BDC may enter into an unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. If the BDC cannot meet this requirement, it is required to treat the unfunded commitment as a derivatives transaction subject to the aforementioned requirements of Rule 18f-4. Collectively, these requirements may limit our ability to use derivatives and/or enter into certain other financial contracts. | ||||||||
Global Economic Political And Market Conditions | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Global economic, political and market conditions may adversely affect our business, results of operations and financial condition, including our revenue growth and profitability. We and our portfolio companies are subject to regulation by laws at the U.S. federal, state and local levels. These laws and regulations, as well as their interpretation, could change from time to time, including as the result of interpretive guidance or other directives from the U.S. President and others in the executive branch, and new laws, regulations and interpretations could also come into effect. Any such new or changed laws or regulations could have a material adverse effect on our business, and political uncertainty could increase regulatory uncertainty in the near term. The effects of legislative and regulatory proposals directed at the financial services industry or affecting taxation could negatively impact the operations, cash flows or financial condition of us and our portfolio companies, impose additional costs on us or our portfolio companies, intensify the regulatory supervision of us or our portfolio companies or otherwise adversely affect our business or the business of our portfolio companies. In addition, if we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of business and could be subject to civil fines and criminal penalties. Over the last several years, there also has been an increase in regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some portion of the non-bank financial sector will be subject to new regulation. While it cannot be known at this time whether any regulation will be implemented or what form it will take, increased regulation of non-bank credit extension could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect our business, financial condition and results of operations. Actual and proposed changes to the complex system of laws and regulations governing the banking industry further pose risks to the success of our operations, cash flows or financial conditions. Recent increases to the asset threshold for designating financial institutions as “systemically important financial institutions,” as well as proposed changes to the Volcker Rule, are just two examples; the effect of these change and any further rules or regulations are and could be complex and far-reaching, and the changes and any future laws or regulations or changes thereto could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect our business, financial condition and results of operations. Until we know what policy changes are made and how those changes impact business and the business of our competitors over the long term, we will not know if, overall, it will benefit from them or be negatively affected by them. The decision made in the United Kingdom referendum to leave the European Union has led to volatility in global financial markets, and in particular in the markets of the United Kingdom and across Europe, and may also lead to weakening in consumer, corporate and financial confidence in the United Kingdom and Europe. Following the termination of a transition period, the United Kingdom and the European Union entered into a trade and cooperation agreement to govern the future relationship between the parties, which was provisionally applied as of January 1, 2021 and entered into force on May 1, 2021 following ratification by the European Union. With respect to financial services, the agreement leaves decisions on equivalence and adequacy to be determined by each of the United Kingdom and the European Union unilaterally in due course. Such agreement is untested and could lead to ongoing political and economic uncertainty and periods of exacerbated volatility in both the United Kingdom and in wider European and global markets for some time. In addition, on December 24, 2020, the EU and United Kingdom signed a trade deal (the “Trade Agreement”) that applied provisionally from January 1, 2021 until the end of April 2021, when the European Parliament approved the Trade Agreement. That Agreement now governs the relationship between the U.K. and EU, implementing significant regulation around trade, transport of goods and travel restrictions between the United Kingdom and the European Union. The decision made in the United Kingdom referendum to leave the European Union has led to volatility in global financial markets, and in particular in the markets of the United Kingdom and across Europe, and may also lead to weakening in consumer, corporate and financial confidence in the United Kingdom and Europe. Under the terms of the withdrawal agreement negotiated and agreed to between the United Kingdom and the European Union, the United Kingdom’s departure from the European Union was followed by a transition period which ran until December 31, 2020, during which the U.K. continued to apply European Union law and was treated for all material purposes as if it were still a member of the European Union. On December 24, 2020, the EU and United Kingdom signed a trade deal (the “Trade Agreement”) that applied provisionally from January 1, 2021 until the end of April 2021, when the European Parliament approved the Trade Agreement. That Agreement now governs the relationship between the U.K. and EU, implementing significant regulation around trade, transport of goods and travel restrictions between the United Kingdom and the European Union. Notwithstanding the foregoing, the longer-term economic, legal, political and social implications of Brexit are unclear at this stage and are likely to continue to lead to ongoing political and economic uncertainty and periods of increased volatility in both the U.K. and in wider European markets for some time. In particular, Brexit could lead to calls for similar referenda in other European Union jurisdictions, which could cause increased economic volatility in the European and global markets. This mid- to long-term uncertainty could have adverse effects on the economy generally and on our ability to earn attractive returns. This volatility and uncertainty may have an adverse effect on the economy generally and on our ability—and the ability of our portfolio companies—to execute our respective strategies and to receive attractive returns. In particular, currency volatility could mean that our returns are adversely affected by market movements and could make it more difficult, or more expensive, for us to execute prudent currency hedging policies. Potential declines in the value of the British Pound and/or the euro against other currencies, along with the potential downgrading of the United Kingdom’s sovereign credit rating, may also have an impact on the performance of any of our portfolio companies located in the United Kingdom or European Union. | ||||||||
Capital Markets Disruption And Economic Uncertainty | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We are currently operating in a period of significant capital markets disruption and economic uncertainty, which may have a negative impact on our business, financial condition and operations. From time to time, capital markets may experience periods of disruption and instability. The U.S. capital markets have experienced extreme volatility and disruption following the global outbreak of COVID-19 that began in December 2019. Even after the COVID-19 pandemic subsides, the U.S. economy, as well as most other major economies, may continue to experience a recession, and we anticipate our businesses would be materially and adversely affected by a prolonged recession in the United States and other major markets. Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. The economic conditions caused by the COVID-19 pandemic could have an adverse impact on the ability of lenders to originate loans, the volume and type of loans originated, the ability of borrowers to make payments and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by the Fund and returns to the Fund, among other things. With respect to the U.S. credit markets (in particular for middle-market loans), the COVID-19 outbreak has resulted in, and until fully resolved is likely to continue to result in, the following among other things: (i) increased draws by borrowers on revolving lines of credit and other financing instruments; (ii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; and (iii) greater volatility in pricing and spreads and difficulty in valuing loans during periods of increased volatility, and liquidity issues. Disruptions in the capital markets caused by the COVID-19 pandemic have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. These conditions and future market disruptions and/or illiquidity could have an adverse effect on our business, financial condition, results of operations and cash flows. Unfavorable economic conditions also would be expected to increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to our portfolio companies and/or us. These events have limited and could continue to limit our investment originations, limit our ability to grow and have a material negative impact on our operating results and the fair values of our debt and equity investments. We may have to access, if available, alternative markets for debt and equity capital, and a severe disruption in the global financial markets, deterioration in credit and financing conditions or uncertainty regarding U.S. government spending and deficit levels or other global economic conditions could have a material adverse effect on our business, financial condition and results of operations. Additionally, the disruption in economic activity caused by the COVID-19 pandemic may have a negative effect on the potential for liquidity events involving our investments. The illiquidity of our investments may make it difficult for us to sell such investments to access capital if required, and as a result, we could realize significantly less than the value at which we will record our investments if we were required to sell them for liquidity purposes. An inability to raise or access capital, and any required sale of all or a portion of our investments as a result, could have a material adverse effect on our business, financial condition or results of operations. While we intend to source and invest in new loan transactions to U.S. middle market companies, we cannot be certain that we will be able to do so successfully or consistently. A lack of suitable investment opportunities may impair our ability to make new investments, and may reduce our earnings and dividends as a result. If economic conditions caused by the COVID-19 pandemic continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies may increase. In addition, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income, which would have a material adverse effect on our business, financial condition or results of operations. While economic activity is well improved from the beginning of the COVID-19 pandemic, we continue to observe supply chain interruptions, labor difficulties, commodity inflation and elements of economic and financial market instability both globally and in the United States. Additionally, continued travel restrictions may prolong the global economic downturn. We cannot be certain as to the duration or magnitude of the economic impact of the COVID-19 pandemic in the markets in which we and our portfolio companies operate, and corresponding declines in economic activity that may negatively impact the U.S. economy and the markets for the various types of goods and services provided by U.S. middle market companies. Depending on the duration, magnitude and severity of these conditions and their related economic and market impacts, certain of our portfolio companies may suffer declines in earnings and could experience financial distress, which could cause them to default on their financial obligations to us and their other lenders. In consideration of these and related factors, we may make downgrades with respect to other portfolio companies in the future as conditions warrant and new information comes to light. | ||||||||
Covid-19 Pandemic | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on the fair value of our investments or the conduct of our business. COVID-19 and the economic conditions caused by the pandemic may cause the valuation of our investments to differ materially from the values that we may ultimately realize. Our valuations, and particularly valuations of private investments and private companies, will be inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that may not show the complete impact of the COVID-19 pandemic and the resulting measures taken in response thereto. As a result, our valuations may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. These potential impacts, while uncertain, could have a significant impact on us and the fair value of our investments. | ||||||||
Fluctuations in Quarterly Operating Results | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may experience fluctuations in our quarterly operating results. We could experience fluctuations in our quarterly operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the default rate on such securities, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods. | ||||||||
Subject to U.S. Federal Income Tax at Corporate Rates | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We will be subject to U.S. federal income tax at corporate rates if we are unable to maintain our tax treatment as a RIC under Subchapter M of the Code. We have elected to be treated as a RIC under Subchapter M of the Code; however, no assurance can be given that we will be able to maintain our RIC tax treatment. To maintain our tax treatment as a RIC under Subchapter M of the Code and to avoid the imposition of U.S. federal income taxes on income and gains distributed to our stockholders, we must meet certain requirements, including source-of-income, asset diversification and annual distribution requirements. The source-of-income requirement will be satisfied if we derive at least 90% of our gross income for each year from dividends, interest, gains from sale of securities or similar sources. To maintain our tax treatment as a RIC, we must also meet certain asset diversification requirements at the end of each calendar quarter. Failure to meet these requirements may result in our losing our RIC tax treatment or our having to dispose of certain investments quickly in order to prevent the loss of RIC tax treatment. Because most of our investments will be in private or thinly traded public companies, any such dispositions could be made at disadvantageous prices and may result in substantial losses. The annual distribution requirement applicable to RICs generally will be satisfied if we timely distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders on an annual basis. In addition, we will be subject to a 4% nondeductible U.S. federal excise tax to the extent that we do not satisfy certain additional minimum distribution requirements on a calendar-year basis. We will be subject, to the extent we use debt financing, to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making annual distributions necessary to maintain our tax treatment as a RIC. If we are unable to obtain cash from other sources, we may fail to maintain our tax treatment as a RIC and, thus, may be subject to U.S. federal corporate income tax on our entire taxable income without regard to any distributions made by us. If we fail to maintain our tax treatment as a RIC for any reason and become subject to U.S. federal income tax at corporate rates, the resulting tax liability could substantially reduce our net assets, the amount of income available for distributions to stockholders and the amount of our distributions and the amount of funds available for new investments. Such a failure could have a material adverse effect on us and our stockholders. | ||||||||
Distributions | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may not be able to pay you distributions, our distributions may not grow over time, a portion of distributions paid to you may be a return of capital, and investors in our debt securities may not receive all of the interest income to which they are entitled. We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this annual report on Form 10-K, including current market conditions described herein. If we violate certain covenants under our existing or future credit facilities or other leverage, we may be limited in our ability to make distributions. All distributions will be made at the discretion of our board of directors and will depend on our earnings, our financial condition, maintenance of RIC tax treatment, compliance with applicable BDC regulations, SBA regulations, state corporate laws affecting the distribution of corporate assets and such other factors as our board of directors may deem relevant from time to time. We cannot assure you that we will make distributions to our stockholders in the future. The above-referenced restrictions on distributions may also inhibit our ability to make required interest payments to holders of our debt securities, which may cause a default under the terms of our then-existing debt agreements. Such a default could materially increase our cost of raising capital, as well as cause us to incur penalties under the terms of our then-existing debt agreements. When we make quarterly distributions, we will be required to determine the extent to which such distributions are paid out of current and accumulated earnings and profits, recognized capital gain or capital. To the extent there is a return of capital, an investor gets his or her own invested capital returned to him or her, but reduced by the amount of the Company’s expenses and any sales load he or she may have paid. In addition, investors will be required to reduce their basis in our stock for U.S. federal income tax purposes. | ||||||||
Pay Dividends In Own Stock May required to Pay Tax In Excess of Cash | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive. Under certain applicable provisions of the Code and the Treasury regulations and a revenue procedure issued by the IRS, a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders elect to receive their distributions in cash, we must allocate the cash available for distribution among the shareholders electing to receive cash (with the balance of the distribution paid in shares of our common stock). If we qualify as a publicly offered RIC and decide to make any distributions consistent with this revenue procedure that are payable in part in our stock, taxable stockholders receiving such dividends will be required to include the full amount of the dividend (whether received in cash, our stock, or a combination thereof) as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. If a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock. | ||||||||
Current Market Conditions | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Due to current market conditions, we may reduce or defer our dividends and choose to incur US federal excise tax in order preserve cash and maintain flexibility. As a BDC, we are not required to make any distributions to shareholders other than in connection with our election to be treated for U.S. federal income tax purposes as a RIC under subchapter M of the Code. In order to maintain our tax treatment as a RIC, we generally must distribute to shareholders for each taxable year at least 90% of our investment company taxable income (i.e., net ordinary income plus realized net short-term capital gains in excess of realized net long-term capital losses). If we qualify for taxation as a RIC, we generally will not be subject to U.S. federal income tax on our investment company taxable income and net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) that we timely distribute to shareholders. We will be subject to a 4% US federal excise tax on undistributed earnings of a RIC unless we distribute each calendar year at least the sum of (i) 98% of our ordinary income for the calendar year, (ii) 98.2% of our capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year, and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years and on which we paid no federal income tax. Under the Code, we may satisfy certain of our RIC distributions with dividends paid after the end of the current year. In particular, if we pay a distribution in January of the following year that was declared in October, November, or December of the current year and is payable to shareholders of record in the current year, referred to as "spillover dividends", the dividend will be treated for all U.S. federal income tax purposes as if it were paid on December 31 of the current year. In addition, under the Code, we may pay dividends, referred to as “spillover dividends,” that are paid during the following taxable year that will allow us to maintain our qualification for taxation as a RIC and eliminate our liability for U.S. federal income tax at corporate rates. Under these spillover dividend procedures, we may defer distribution of income earned during the current year until December of the following year. For example, we may defer distributions of income earned during 2022 until as late as December 31, 2023. If we choose to pay a spillover dividend, we will incur the 4% U.S. federal excise tax on some or all of the distribution. Due to current market conditions (as described herein), we anticipate that we may take certain actions with respect to the timing and amounts of our distributions in order to preserve cash and maintain flexibility. For example, we may reduce our dividends and/or defer our dividends to the following taxable year. If we defer our dividends, we may choose to utilize the spillover dividend rules discussed above and incur the 4% U.S. federal excise tax on such amounts. To further preserve cash, we may combine these reductions or deferrals of dividends with one or more distributions that are payable partially in our stock as discussed above under “We may choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive.” | ||||||||
Difficulty In Paying Required Distribution | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may have difficulty paying our required distributions if we recognize income before, or without, receiving cash representing such income. For U.S. federal income tax purposes, we are required to include in our income certain amounts that we have not yet received in cash, such as OID, which may arise if we receive warrants in connection with the making of a loan or in other circumstances, and contractual PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such OID, or increases in loan balances as a result of contracted PIK arrangements, will be included in our income before we receive any corresponding cash payments. We also may be required to include in our income certain other amounts that we will not receive in cash. Since in certain cases we may be required to recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute on an annual basis at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to maintain our tax treatment as a RIC. In such a case, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities to satisfy the annual distribution requirements. In such circumstances, if we are unable to obtain such cash from other sources, we may fail to maintain our tax treatment as a RIC and thus be subject to U.S. federal income tax at corporate rates. See “We will be subject to U.S. federal income tax at corporate rates if we are unable to maintain our tax treatment as a RIC under Subchapter M of the Code.” If a portfolio company defaults on a loan that is structured to provide accrued interest, it is possible that accrued interest previously used in the calculation of the incentive fee will become uncollectible. Our investment advisor will not be under any obligation to reimburse us for any part of the incentive fee it received that was based on accrued income that we never receive as a result of a default by an entity on the obligation that resulted in the accrual of such income. That part of the incentive fee payable by us that relates to our net investment income will be computed and paid on income that may include interest that has been accrued but not yet received in cash, such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities. To the extent we invest in OID instruments, including PIK loans, zero coupon bonds, and debt securities with attached warrants, investors will be exposed to the risks associated with the inclusion of such non-cash income in taxable and accounting income prior to receipt of cash, including the following risks: the interest payments deferred on a PIK loan are subject to the risk that the borrower may default when the deferred payments are due in cash at the maturity of the loan; the interest rates on PIK loans are higher to reflect the time-value of money on deferred interest payments and the higher credit risk of borrowers who may need to defer interest payments; PIK instruments may have unreliable valuations because the accruals require judgments about ultimate collectability of the deferred payments and the value of the associated collateral; an election to defer PIK interest payments by adding them to principal increases our gross assets and, thus, increases future base management fees to the investment advisor and, because interest payments will then be payable on a larger principal amount, the PIK election also increases the investment advisor’s future income incentive fees at a compounding rate; market prices of OID instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that pay interest periodically in cash; the deferral of interest on a PIK loan increases its loan-to-value ratio, which is a measure of the riskiness of a loan; OID creates the risk of non-refundable cash payments to the investment advisor based on non-cash accruals that may never be realized; for U.S. federal income tax purposes, we will be required to make distributions of OID income to shareholders without receiving any cash and such distributions have to be paid from offering proceeds or the sale of assets without investors being given any notice of this fact; and the required recognition of OID, including PIK, interest for U.S. federal income tax purposes may have a negative impact on liquidity, because it represents a non-cash component of the our taxable income that must, nevertheless, be distributed in cash to investors to avoid it being subject to corporate level taxation. | ||||||||
Current Tax Liability on Distributions Elect to Reinvest Common Stock | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | You may have a current tax liability on distributions you elect to reinvest in our common stock but would not receive cash to pay such tax liability. If you participate in our dividend reinvestment plan, you will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, unless you are a tax-exempt entity, you may have to use funds from other sources to pay your tax liability on the value of our common stock received as a result of the distribution. Because we expect to distribute substantially all of our net investment income and net realized capital gains to our stockholders, we will need additional capital to finance our growth, and such capital may not be available on favorable terms or at all. We have elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. If we continue to meet certain requirements, including source-of-income, asset diversification and distribution requirements, and if we continue to be regulated as a BDC, we will continue to qualify to be taxed as a RIC and therefore will not have to pay U.S. federal income tax at corporate rates on income that we timely distribute to our stockholders, allowing us to substantially reduce or eliminate our corporate-level income tax liability. As a BDC, we are generally required to meet a coverage ratio of total assets to total senior securities, which includes all of our borrowings (other than SBA leverage) and any preferred stock we may issue in the future, of at least 150.0% at the time we issue any debt or preferred stock. This requirement limits the amount of our leverage. Because we will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt or issuing preferred stock and require us to raise additional equity at a time when it may be disadvantageous to do so. While we expect to be able to borrow and to issue additional debt and equity securities, we cannot assure you that debt and equity financing will be available to us on favorable terms, or at all. If additional funds are not available to us, we could be forced to curtail or cease new investment activities, and our net asset value could decline. In addition, as a BDC, we generally are not permitted to issue equity securities priced below net asset value without stockholder approval. At our 2022 Annual Stockholders Meeting on June 29, 2022, our stockholders voted to allow us to issue common stock at a price below net asset value per share for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2023 Annual Meeting of Stockholders. The maximum number of shares issuable below net asset value pursuant to the authority granted by our stockholders that could result in such dilution is limited to 25.0% of FIC’s then outstanding common stock immediately prior to each such sale. We do not intend to issue shares of our common stock below net asset value unless our board of directors determines that it would be in our stockholders’ best interests to do so. The level of net asset value dilution that could result from such an offering is not limited. | ||||||||
Board of Directors Change Investment Objective, Operating Policies and Strategies without Prior Notice or Stockholder Approval | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our board of directors may change our investment objective, operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse. Our board of directors has the authority, except as otherwise provided by the 1940 Act, to modify or waive certain of our operating policies and strategies without prior notice and without stockholder approval. Under Maryland law, we also cannot be dissolved without prior stockholder approval except by judicial action. In addition, upon approval of a majority of our stockholders, we may elect to withdraw our status as a BDC. If we, or Fund I, decide to withdraw our election, or if we otherwise fail to maintain our qualification, as a BDC, we may be subject to the substantially greater regulation under the 1940 Act as a closed-end investment company. Compliance with such regulations would significantly decrease our operating flexibility, and could significantly increase our costs of doing business. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results or the value of our common stock. Nevertheless, any such changes could adversely affect our business and impair our ability to make distributions. | ||||||||
Regulations Governing Operations as BDC | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Regulations governing our operation as a BDC affect our ability to raise, and the way in which we raise, additional capital that may have a negative effect on our growth. Our business will require capital to operate and grow. We may acquire such additional capital from the following sources: Senior Securities. Currently we, through the Funds, issue debentures guaranteed by the SBA and have access to funds under a revolving credit facility. In the future, we may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as senior securities. As a result of issuing senior securities, we will be exposed to additional risks, including, but not limited to, the following: Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after each issuance of senior securities (or 150%, if certain requirements are met). If the value of our assets declines, we may be unable to satisfy this requirement. If that happens, we may sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our debt at a time when such sales and/or repayments may be disadvantageous. Further, we will not be permitted to declare or make any distribution to stockholders or repurchase shares until such time as we satisfy this test. Any amounts that we use to service our debt or make payments on preferred stock will not be available for distributions to our common stockholders. It is likely that any senior securities or other indebtedness we issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, some of these securities or other indebtedness may be rated by rating agencies, and in obtaining a rating for such securities and other indebtedness, we may be required to abide by operating and investment guidelines that further restrict operating and financial flexibility. We and, indirectly, our stockholders will bear the cost of issuing and servicing such securities and other indebtedness. Preferred stock or any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock, including separate voting rights and could delay or prevent a transaction or a change in control to the detriment of the holders of our common stock. Additional Common Stock. Under the provisions of the 1940 Act, we are not generally able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, warrants, options or rights to acquire our common stock, at a price below the current net asset value of the common stock if our board of directors determines that such sale is in the best interests of our stockholders, and our stockholders approve such sale. At our 2022 Annual Stockholders Meeting on June 29, 2022, our stockholders voted to allow us to issue common stock at a price below net asset value per share for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2023 Annual Meeting of Stockholders. The maximum number of shares issuable below net asset value pursuant to the authority granted by our stockholders that could result in such dilution is limited to 25.0% of FIC’s then outstanding common stock immediately prior to each such sale. We do not intend to sell or otherwise issue shares of our common stock below net asset value unless our board of directors determines that it would be in our stockholders’ best interests to do so. The level of net asset value dilution that could result from such an offering is not limited. In any such case, however, the price at which our common stock is to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates the market value of such securities (less any distributing commission or discount). We may also make rights offerings to our stockholders at prices per share less than the net asset value per share, subject to applicable requirements of the 1940 Act and the regulations and staff interpretations thereunder. If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our stockholders at that time would decrease, and they may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities in the future, on favorable terms or at all. | ||||||||
Uncertainty about U.S. Presidential Administration Initiatives | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Uncertainty about U.S. Presidential administration initiatives could negatively impact our business, financial condition and results of operations. The U.S. government has called for significant changes to U.S. trade, healthcare, immigration, foreign and government regulatory policy. In this regard, there is significant uncertainty with respect to legislation, regulation and government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far-reaching implications. There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or the current presidential administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation and other areas. Although we cannot predict the impact, if any, of these changes to our business, they could adversely affect our business, financial condition, operating results and cash flows. Until we know what policy changes are made and how those changes impact our business and the business of our competitors over the long term, we will not know if, overall, we will benefit from them or be negatively affected by them. A particular area identified as subject to potential change, amendment or repeal includes the Dodd-Frank Act, including the Volcker Rule and various swaps and derivatives regulations, credit risk retention requirements and the authorities of the Federal Reserve, the Financial Stability Oversight Council and the SEC. Given the uncertainty associated with the manner in which and whether the provisions of the Dodd-Frank Act will be implemented, repealed, amended, or replaced, the full impact such requirements will have on our business, results of operations or financial condition is unclear. The changes resulting from the Dodd-Frank Act or any changes to the regulations already implemented thereunder may require us to invest significant management attention and resources to evaluate and make necessary changes in order to comply with new statutory and regulatory requirements. Failure to comply with any such laws, regulations or principles, or changes thereto, may negatively impact our business, results of operations or financial condition. While we cannot predict what effect any changes in the laws or regulations or their interpretations would have on us as a result of recent financial reform legislation, these changes could be materially adverse to us and our stockholders. | ||||||||
Legislative Or Other Actions Relating To Taxes | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Legislative or other actions relating to taxes could have a negative effect on the Company. Legislative or other actions relating to taxes could have a negative effect on the Company and its investors. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. We cannot predict with certainty how any changes in the tax laws might affect the Company, its investments or its investors. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect the Company’s ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to the Company and its investors of such qualification, or could have other adverse consequences. You are urged to consult with your tax advisor with respect to the impact of the status of any legislative, regulatory or administrative developments and proposals and their potential effect on your investment in our securities. | ||||||||
Uncertainty Surrounding Potential Legal, Regulatory and Policy Changes By Current Presidential Administrations and Congress | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | There is uncertainty surrounding potential legal, regulatory and policy changes by the current presidential administration and Congress in the United States that may directly affect financial institutions and the global economy. Changes in federal policy, including tax policies, and at regulatory agencies are expected to occur over time through policy and personnel changes, which may lead to changes involving the level of oversight and focus on the financial services industry or the tax rates paid by corporate entities. The nature, timing and economic and political effects of potential changes to the current legal and regulatory framework affecting financial institutions remain highly uncertain. Uncertainty surrounding future personnel or policy changes may adversely affect our operating environment and therefore our business, financial condition, results of operations and growth prospects. | ||||||||
Changes in Laws or Regulations Governing Operations | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy. We are subject to regulation at the local, state and federal level. New legislation may be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our stockholders, potentially with retroactive effect. In addition, any change to the SBA’s current debenture program could have a significant impact on our ability to obtain low-cost leverage and, therefore, our competitive advantage over other funds. Legal, tax and regulatory changes could occur that may adversely affect us. For example, from time to time the market for private equity transactions has been (and is currently being) adversely affected by a decrease in the availability of senior and subordinated financings for transactions, in part in response to credit market disruptions and/or regulatory pressures on providers of financing to reduce or eliminate their exposure to the risks involved in such transactions. Additionally, any changes to the laws and regulations governing our operations related to permitted investments may cause us to alter our investment strategy in order to meet our investment objectives. Such changes could result in material differences to the strategies and plans set forth in this Annual Report and may shift our investment focus from the areas of expertise of our investment advisor to other types of investments in which our investment advisor may have little or no expertise or experience. Any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment. | ||||||||
New Tax Legislation | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We cannot predict how new tax legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business. Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. The Biden Administration has proposed significant changes to the existing U.S. tax rules, and there are a number of proposals in Congress that would similarly modify the existing U.S. tax rules. The likelihood of any such legislation being enacted is uncertain, but new legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our investors of such qualification, or could have other adverse consequences. Investors are urged to consult with their tax advisor regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our shares. | ||||||||
Changes to U.S. Tariff and Import Export Regulations | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us. There has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. The current U.S. presidential administration, along with the U.S. Congress, has created significant uncertainty about the future relationship between the United States and other countries with respect to trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies' access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us. | ||||||||
Ability to Enter into and Exit Investment Transactions with Affiliates Will be Restricted | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our ability to enter into and exit investment transactions with our affiliates will be restricted. Except in those instances where we have received prior exemptive relief from the SEC, we will be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Independent Directors. We, our investment advisor, the Funds, and Fidus Credit Opportunities, L.P. received exemptive relief from the SEC under the 1940 Act, which permits us to co-invest with other funds managed by our investment advisor or its affiliates in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors. In addition, any person that owns, directly or indirectly, 5.0% or more of our outstanding voting securities is deemed our affiliate for purposes of the 1940 Act and we are generally prohibited from buying or selling any security from or to such affiliate, absent the prior approval of our Independent Directors. The 1940 Act also prohibits “joint” transactions with an affiliate, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of our Independent Directors. If a person acquires more than 25.0% of our voting securities, we will be prohibited from buying or selling any security from or to such person, or entering into joint transactions with such person, absent the prior approval of the SEC. These restrictions could limit or prohibit us from making certain attractive investments that we might otherwise make absent such restrictions. | ||||||||
Resignation of Investment Advisor | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investment advisor can resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations. Our investment advisor has the right, under the Investment Advisory Agreement, to resign at any time upon not less than 60 days’ written notice, whether we have found a replacement or not. If our investment advisor resigns, we may not be able to find a new investment advisor and administrator or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the market price of our shares may decline. In addition, investment activities are likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by our investment advisor and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations. | ||||||||
Resignation of Investment Advisor From Administrator Role Under Administration Agreement | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investment advisor can resign from its role as our administrator under the Administration Agreement, and we may not be able to find a suitable replacement, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations. Our investment advisor also has the right to resign under the Administration Agreement, whether we have found a replacement or not. If our investment advisor resigns as our administrator, we may not be able to find a new administrator or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the market price of our shares may decline. In addition, administrative activities are likely to suffer if we are unable to identify and reach an agreement with a service provider or individuals with the expertise possessed by our investment advisor. Even if we are able to retain a comparable service provider or individuals to perform such services, whether internal or external, their integration into our business and lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations. | ||||||||
Internal And External Cyber Threats, And Other Disaster | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Internal and external cyber threats, as well as other disasters, could impair our ability to conduct business effectively. The occurrence of a disaster, such as a cyber-attack against us or against a third-party that has access to our data or networks, a natural catastrophe, an industrial accident, failure of our disaster recovery systems, or consequential employee error, could have an adverse effect on our ability to communicate or conduct business, negatively impacting our operations and financial condition. This adverse effect can become particularly acute if those events affect our electronic data processing, transmission, storage, and retrieval systems, or impact the availability, integrity, or confidentiality of our data. Our investment adviser and third-party service providers with which we do business depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems, networks, and data, like those of other companies, could be subject to cyber-attacks and unauthorized access, use, alteration, or destruction, such as from physical and electronic break-ins or unauthorized tampering, malware and computer virus attacks, or system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary, and other information processed, stored in, and transmitted through our computer systems and networks. Such an attack could cause interruptions or malfunctions in our operations, which could result in damage to our reputation, financial losses, increased costs, litigation, regulatory penalties, client dissatisfaction or loss, reputational damage, and increased costs associated with mitigation of damages and remediation. If unauthorized parties gain access to such information and technology systems, they may be able to steal, publish, delete or modify private and sensitive information, including nonpublic personal information related to stockholders (and their beneficial owners) and material nonpublic information. The systems we have implemented to manage risks relating to these types of events could prove to be inadequate and, if compromised, could become inoperable for extended periods of time, cease to function properly or fail to adequately secure private information. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or other espionage may not be identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing them from being addressed appropriately. The failure of these systems or of disaster recovery plans for any reason could cause significant interruptions in our and our investment advisor’s operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to stockholders, material nonpublic information and other sensitive information in our possession. A disaster or a disruption in the infrastructure that supports our business, including a disruption involving electronic communications or other services used by us or third parties with whom we conduct business, or directly affecting our headquarters, could have a material adverse impact on our ability to continue to operate our business without interruption. Our disaster recovery programs may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse us for our losses, if at all. Third parties with which we do business may also be sources of cybersecurity or other technological risks. We outsource certain functions and these relationships allow for the storage and processing of our information, as well as counterparty, employee, and borrower information. Cybersecurity failures or breaches by our investment adviser and other service providers (including, but not limited to, accountants, custodians, transfer agents and administrators), and the issuers of securities in which we invest, also have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with our ability to calculate its NAV, impediments to trading, the inability of our stockholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputation damages, reimbursement of other compensation costs, or additional compliance costs. While we engage in actions to reduce our exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other cybersecurity incidents with increased costs and other consequences, including those as described above. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. Privacy and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, we may be required to expend significant additional resources to modify our protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. We and our service providers may be impacted by operating restrictions in response to the COVID-19 pandemic, which may obstruct the regular functioning of business workforces (including requiring employees to work from remote locations). Policies of extended periods of remote working, whether by us or by our Service Providers, could strain technology resources, introduce operational risks and otherwise heighten the risks described above. Remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the weakness in a remote work environment. Accordingly, the risks described above are heightened under current conditions, which may continue for an unknown duration. | ||||||||
Environmental Social and Governance Factors | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Environmental, social and governance factors may adversely affect our business or cause us to alter our business strategy. Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business . | ||||||||
Global Climate Change | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The effect of global climate change may impact the operations of our portfolio companies, which may, in turn, impact the valuation of such portfolio companies. Climate change creates physical and financial risk and certain portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition, through decreased revenues, which may, in turn, impact the valuation of such portfolio companies. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions. In December 2015, the United Nations, of which the United States is a member, adopted a climate accord (the “Paris Agreement”) with the long-term goal of limiting global warming and the short-term goal of significantly reducing greenhouse gas emissions. On November 4, 2016, the past administration announced that the United States would cease participation in the Paris Agreement with the withdrawal taking effect on November 4, 2020. However, on January 20, 2021, President Joseph R. Biden signed an executive order to rejoin the Paris Agreement. Additionally, the Inflation Reduction Act of 2022 included several measures designed to combat climate change, including restrictions on methane emissions. As a result, some of our portfolio companies may become subject to new or strengthened regulations or legislation, which could increase their operating costs and/or decrease their revenues, which may, in turn, impact the valuation of such portfolio companies. | ||||||||
Economic Recessions or Downturns | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Economic recessions or downturns could impair our portfolio companies and harm our operating results. Many of our portfolio companies are susceptible to economic slowdowns or recessions (including industry specific downturns), including as a result of, among other things, the COVID-19 pandemic, elevated levels of inflation, and a rising interest rate environment, and may be unable to repay our debt investments during these periods. The COVID-19 pandemic has disrupted economic markets, and the prolonged economic impact is uncertain. In the past, instability in the global capital markets resulted in disruptions in liquidity in the debt capital markets, significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated credit market and the failure of major domestic and international financial institutions. In particular, in past periods of instability, the financial services sector was negatively impacted by significant write-offs as the value of the assets held by financial firms declined, impairing their capital positions and abilities to lend and invest. In an economic downturn, we may have non-performing assets or non-performing assets may increase, and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing some of our debt investments and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results. The occurrence of recessionary conditions and/or negative developments in the domestic and international credit markets may significantly affect the markets in which we do business, the value of our investments, and our ongoing operations, costs and profitability. Any such unfavorable economic conditions, including rising interest rates, may also increase our funding costs, limit our access to capital markets or negatively impact our ability to obtain financing, particularly from the debt markets. In addition, any future financial market uncertainty could lead to financial market disruptions and could further impact our ability to obtain financing. These events could limit our investment originations, limit our ability to grow and negatively impact our operating results and financial condition. | ||||||||
Terrorist Attacks, Acts of War, or Natural Disasters | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Terrorist attacks, acts of war, or natural disasters may affect any market for our common stock, impact the businesses in which we invest and harm our business, operating results and financial condition. Portfolio investments may be affected by force majeure events (i.e., events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, fire, flood, earthquakes, war, terrorism and labor strikes). Some force majeure events may adversely affect the ability of a party (including a portfolio company or a counterparty to us or a portfolio company) to perform its obligations until it is able to remedy the force majeure event. In addition, the cost to a portfolio company of repairing or replacing damaged assets resulting from such force majeure events could be considerable. Additionally, a major governmental intervention into industry, including the nationalization of an industry or the assertion of control over one or more companies or its assets, could result in a loss to us, including if its investment in such issuer is cancelled, unwound or acquired (which could be without what we consider to be adequate compensation). To the extent we are exposed to investments in portfolio companies that as a group are exposed to such force majeure events, the risks and potential losses to us are enhanced. The continued threat of global terrorism and the impact of military and other action will likely continue to cause volatility in the economies of certain countries, contribute to increased market volatility and economic uncertainties or deterioration in the United States and worldwide and various aspects thereof, including in prices of commodities. Our portfolio investments may involve significant strategic assets having a national or regional profile. The nature of these assets could expose them to a greater risk of being the subject of a terrorist attack than other assets or businesses. Acts of war could similarly lead to such volatility. For example, in response to the ongoing conflict between Russia and Ukraine, the United States and other countries have imposed sanctions or other restrictive actions against Russia. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, could have a material adverse effect on our business, financial condition, cash flows, and results of operations, and could cause the market value of our common stock to decline. In addition, these market and economic disruptions could negatively impact the operating results of our portfolio companies, which may, in turn, impact the valuation of such portfolio companies, and impact our business, operating resulting and financial condition. | ||||||||
Investments in Certain Industry Sectors, Energy Sector, May be Subject To Significant Political, Economic And Capacity Risks | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investments in certain industry sectors, such as the energy sector, may be subject to significant political, economic and capacity risks that may increase the possibility that we lose all or a part of our investment. The revenues and profitability of certain portfolio companies may be significantly affected by the future prices of and the demand for oil, natural gas liquids and natural gas, which are inherently uncertain. Investments in energy companies may have significant shortfalls in projected cash flow if prices decline from levels projected at the time the investment is made. Various factors beyond our control could affect energy prices, including worldwide supplies, political instability or armed conflicts in oil, natural gas liquids and natural gas producing regions, the price of foreign imports, the level of consumer demand, the price and availability of alternative fuels, capacity constraints and changes in existing government regulation, taxation and price controls. Energy prices have fluctuated greatly during the past, and energy markets may continue to be volatile. | ||||||||
Changes in Healthcare Laws And Other Regulations Applicable to Portfolio Companies | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Changes in healthcare laws and other regulations applicable to some of our portfolio companies’ businesses may constrain their ability to offer their products and services. Changes in healthcare or other laws and regulations applicable to the businesses of some of our portfolio companies may occur that could increase their compliance and other costs of doing business, require significant systems enhancements, or render their products or services less profitable or obsolete, any of which could have a material adverse effect on their results of operations. There has also been an increased political and regulatory focus on healthcare laws in recent years, and new legislation could have a material effect on the business and operations of some of our portfolio companies. | ||||||||
Unable to Protect Intellectual Property Rights | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | If our portfolio companies are unable to protect their intellectual property rights, our business and prospects could be harmed, and if portfolio companies are required to devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced. Our future success and competitive position will depend in part upon the ability of our portfolio companies to obtain, maintain and protect proprietary technology used in their products and services. The intellectual property held by our portfolio companies often represents a substantial portion of the collateral securing our investments and/or constitutes a significant portion of the portfolio companies’ value and may be available in a downside scenario to repay our loans. Our portfolio companies will rely, in part, on patent, trade secret, and trademark law to protect that technology, but competitors may misappropriate their intellectual property, and disputes as to ownership of intellectual property may arise. Portfolio companies may, from time to time, be required to institute litigation to enforce their patents, copyrights, or other intellectual property rights; protect their trade secrets; determine the validity and scope of the proprietary rights of others; or defend against claims of infringement. Such litigation could result in substantial costs and diversion of resources. Similarly, if a portfolio company is found to infringe or misappropriate a third-party’s patent or other proprietary rights, it could be required to pay damages to the third party, alter its products or processes, obtain a license from the third-party, and/or cease activities utilizing the proprietary rights, including making or selling products utilizing the proprietary rights. Any of the foregoing events could negatively affect both the portfolio company’s ability to service our debt investment and the value of any related debt and equity securities that we own, as well as any collateral securing our investment. | ||||||||
Cybersecurity Risks and Cyber Incidents | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Cybersecurity risks and cyber incidents may adversely affect our business or the business of our portfolio companies by causing a disruption to our operations or the operations of our portfolio companies, a compromise or corruption of our confidential information or the confidential information of our portfolio companies and/or damage to our business relationships or the business relationships of our portfolio companies, all of which could negatively impact the business, financial condition and operating results of us or our portfolio companies. A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of the information resources of us or our portfolio companies. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems or those of our portfolio companies for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to business relationships. As our and our portfolio companies’ reliance on technology has increased, so have the risks posed to our information systems, both internal and those provided by third-party service providers, and the information systems of our portfolio companies. We have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber-incident, do not guarantee that a cyber-incident will not occur and/or that our financial results, operations or confidential information will not be negatively impacted by such an incident. | ||||||||
Investments in Portfolio Companies Involves Number of Significant Risks | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investments in portfolio companies may be risky, and we could lose all or part of our investment. Investing in lower middle-market companies involves a number of significant risks. Among other things, these companies: may have limited financial resources and may be unable to meet their obligations under their debt instruments that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees from subsidiaries or affiliates of portfolio companies that we may have obtained in connection with our investment; may have shorter operating histories, narrower product lines and smaller market shares, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns, than larger businesses; are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us; generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position; and generally have less publicly available information about their businesses, operations and financial condition. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and may lose all or part of our investment. In addition, in the course of providing significant managerial assistance to certain portfolio companies, certain of our management and directors may serve as directors on the boards of such companies. To the extent that litigation arises out of investments in these portfolio companies, our management and directors may be named as defendants in such litigation, which could result in an expenditure of funds (through our indemnification of such officers and directors) and the diversion of management time and resources. | ||||||||
Lack of Liquidity | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The lack of liquidity in our investments may adversely affect our business. All of our assets may be invested in illiquid securities, and a substantial portion of our investments in leveraged companies will be subject to legal and other restrictions on resale or will otherwise be less liquid than more broadly traded public securities. The illiquidity of these investments may make it difficult for us to sell such investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. However, to maintain the elections to be regulated as a BDC and as a RIC, we may have to dispose of investments if they do not satisfy one or more of the applicable criteria under the respective regulatory frameworks. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we or our investment advisor have material nonpublic information regarding such portfolio company. | ||||||||
May Not Have Funds to Make Additional Investment | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may not have the funds to make additional investments in our portfolio companies that could impair the value of our portfolio. After our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to such company or have the opportunity to increase our investment through the exercise of a warrant to purchase common stock. There is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Any decisions not to make a follow-on investment or any inability on our part to make such an investment may have a negative impact on a portfolio company in need of such an investment, may result in a missed opportunity for us to increase our participation in a successful operation or may reduce the expected yield on the investment. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our level of risk, because we prefer other opportunities or because we are inhibited by compliance with BDC requirements, SBA regulations or the desire to maintain our RIC tax treatment. Our ability to make follow-on investments may also be limited by our investment advisor’s allocation policy. | ||||||||
Portfolio Companies May Incur Debt That Ranks Equally With, or Senior to | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies. We will invest in second lien and subordinated debt as well as equity issued by lower middle-market companies. The portfolio companies generally have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such senior debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company. | ||||||||
Debt Investments Subordinated to Claims of Other Creditors or Subject to Lender Liability Claims | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | There may be circumstances where our debt investments could be subordinated to claims of other creditors or could be subject to lender liability claims. Even though we may have structured certain of our investments as senior loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt investment and subordinate all or a portion of our claim to that of other creditors. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance. | ||||||||
Second Priority Liens on Collateral Securing Loans May be Subject to Control By Senior Creditors With First Priority Lien | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us. Certain loans we make to portfolio companies are and will be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The first priority liens on the collateral secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the company under the agreements governing the loans. The holders of obligations secured by the first priority liens on the collateral will generally control the liquidation of and be entitled to receive proceeds from any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds are not sufficient to repay amounts outstanding under the loan obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the company’s remaining assets, if any. The rights we may have with respect to the collateral securing the loans we make to portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements entered into with the holders of senior debt. Under an intercreditor agreement, at any time that obligations having the benefit of the first priority liens are outstanding, any of the following actions that may be taken in respect to the collateral will be at the direction of the holders of the obligations secured by the first priority liens: the ability to cause the commencement of enforcement proceedings against the collateral; the ability to control the conduct of such proceedings; the approval of amendments to collateral documents; releases of liens on the collateral; and waivers of past defaults under collateral documents. We may not have the ability to control or direct such actions, even if our rights are adversely affected. | ||||||||
Debt Securities Of Leveraged Companies That May Experience Bankruptcy Or Similar Financial Distress | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may hold the debt securities of leveraged companies that may, due to the significant volatility of such companies, enter into bankruptcy proceedings. Leveraged companies may experience bankruptcy or similar financial distress. The bankruptcy process has a number of significant inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of the creditors. A bankruptcy filing by an issuer may adversely and permanently affect the issuer. If the proceeding is converted to a liquidation, the value of the issuer may not equal the liquidation value that was believed to exist at the time of the investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective. The administrative costs in connection with a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, any contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial. | ||||||||
Unrealized Depreciation on Investment Portfolio may be Indication of Future Realized Losses | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Any unrealized depreciation we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution. As a BDC, we are required to carry our investments at fair value as determined in good faith by our board of directors. Decreases in the fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our investment portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to the affected investments. This could result in realized losses in the future and ultimately in reductions of our income available for distribution in future periods. | ||||||||
Defaults By Portfolio Companies | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Defaults by our portfolio companies will harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets. This could trigger cross-defaults under other agreements and jeopardize the portfolio company’s ability to meet its obligations under the debt or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, reduced interest and/or loss of principal, with a defaulting portfolio company. | ||||||||
Typical Risk Associated With OID and PIK Interets Income | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | To the extent OID and PIK-interest constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash representing such income. Our investments may include original-issue-discount instruments and contractual PIK-interest arrangements. To the extent OID or PIK-interest constitutes a portion of our income, we are exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including the following: The higher interest rates of OID and PIK instruments reflect the payment deferral, which results in a higher principal amount at the maturity of the instrument as compared to the original principal amount of the instrument, and increased credit risk associated with these instruments, and OID and PIK instruments generally represent a significantly higher credit risk than coupon loans. Even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is supposed to occur at the maturity of the obligation. OID and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. OID and PIK-income may also create uncertainty about the source of our cash distributions. To the extent we provide loans with interest-only payments or moderate loan amortization, the majority of the principal payment or amortization of principal may be deferred until loan maturity. Because this debt generally allows the borrower to make a large lump-sum payment of principal at the end of the loan term, there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. For accounting purposes, any cash distributions to stockholders representing OID and PIK-income are not treated as coming from paid-in capital, even though the cash to pay them comes from the offering proceeds. As a result, despite the fact that a distribution representing OID and PIK-income could be paid out of amounts invested by our stockholders, the 1940 Act does not require that stockholders be given notice of this fact by reporting it as a return of capital. In certain cases, we may recognize taxable income before or without receiving corresponding cash payments and, as a result, we may have difficulty meeting the annual distribution requirement necessary to maintain our tax treatment as a RIC. | ||||||||
Control Many of Portfolio Companies | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We do not expect to control many of our portfolio companies. We do not expect to control many of our portfolio companies, even though we may have board representation or board observation rights, and the debt agreements may contain certain restrictive covenants. As a result, we are subject to the risk that a portfolio company in which we invest may make business decisions with which we disagree and the management of such company, as representatives of the holders of the company’s common equity, may take risks or otherwise act in ways that do not serve our interests as debt investors. Due to the lack of liquidity for our investments in private companies in the lower middle-market, we may not be able to dispose of our interests in our portfolio companies as readily as we would like or at an appropriate valuation. As a result, a portfolio company may make decisions that could decrease the value of our portfolio holdings. | ||||||||
Non Diversified Investment Company | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We are a non-diversified investment company within the meaning of the 1940 Act; therefore, we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer. We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer and the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, while we are not targeting any specific industries, our investments may be concentrated in relatively few industries. As a result, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond the asset diversification requirements applicable to RICs, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. | ||||||||
Prepayments of Debt Investments by Portfolio Companies | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity. We are subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity. When this occurs, we will generally reinvest these proceeds in temporary investments (cash equivalents), pending future investments in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being repaid, and we could experience significant delays in reinvesting these amounts. In addition, any future investment of such amounts in a new portfolio company may also be at lower yields than the investment that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our common stock. | ||||||||
May Not Realize Gains From Equity Investment | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may not realize gains from our equity investments. Certain investments that we have made in the past and may make in the future include warrants or other equity or equity-related securities. Typically we make non-control equity investments in portfolio companies. Our goal is to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer. We may be unable to exercise these put rights for the consideration provided in our investment documents if the issuer is in financial distress. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. | ||||||||
Primary Investments Deemed Not to be Qualifying Assets | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | If our primary investments are deemed not to be qualifying assets, we could be precluded from investing in our desired manner or deemed to be in violation of the 1940 Act. In order to maintain our status as a BDC, we may not acquire any assets other than “qualifying assets” unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. We believe that most of the investments that we may acquire in the future will constitute qualifying assets. However, we may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to BDCs and be precluded from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or required to dispose of investments at inappropriate times in order to come into compliance with the 1940 Act. If we need to dispose of such investments quickly, it could be difficult to dispose of such investments on favorable terms. We may not be able to find a buyer for such investments and, even if we do find a buyer, we may have to sell the investments at a substantial loss. Any such outcomes would have a material adverse effect on our business, financial condition, results of operations and cash flows. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. If we do not maintain our status as a BDC, we would be subject to regulation as a registered closed-end investment company under the 1940 Act. As a registered closed-end investment company, we would be subject to substantially more regulatory restrictions under the 1940 Act, which would significantly decrease our operating flexibility. | ||||||||
Disposition of Investments May Result in Contingent Liabilities | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The disposition of our investments may result in contingent liabilities. A significant portion of our investments involve private securities and we expect that a significant portion of our investments will continue to involve private securities. In connection with the disposition of an investment in private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. Additionally, customary terms of such sales agreements generally provide adjustments to the initial purchase price determined on the closing date if the portfolio company's net working capital varies from preliminary amounts utilized in determining the initial purchase price; such adjustments could subsequently result in upward or downward revisions to the initial purchase price and impact our amount of realized gain or loss on sale. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. These arrangements may result in contingent liabilities that ultimately result in funding obligations that we must satisfy through its return of distributions previously made to it. | ||||||||
Unable to Invest Significant Portion of Net Proceeds From Offering or From Exiting Investment or Other Capital on Acceptable Term | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | We may be unable to invest a significant portion of any net proceeds from an offering or from exiting an investment or other capital on acceptable terms, which could harm our financial condition and operating results. We may be unable to invest the net proceeds of any offering or from exiting an investment or other sources of capital on acceptable terms within the time period that we anticipate or at all. Delays in investing such capital may cause our performance to be worse than that of fully invested BDCs or other lenders or investors pursuing comparable investment strategies. Depending on market conditions and the amount of the capital involved, it may take us a substantial period of time to invest substantially all the capital in securities meeting our investment objective. During this period, we will invest such capital primarily in short-term securities consistent with our BDC election and our election to be taxed as a RIC, which may produce returns that are significantly lower than the returns which we expect to achieve when our portfolio is fully invested in longer-term investments in pursuit of our investment objective. Any distributions that we pay during such period may be substantially lower than the distributions that we may be able to pay when our portfolio is fully invested. In addition, until such time as the net proceeds of any offering or from exiting an investment or other sources capital are invested in new investments meeting our investment objective, the market price for our common stock may decline. | ||||||||
Investment Advisors Liability Limited Under Investment Advisory Agreement | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our investment advisor’s liability is limited under the Investment Advisory Agreement, and we have agreed to indemnify our investment advisor against certain liabilities, which may lead our investment advisor to act in a riskier manner on our behalf than it would when acting for its own account. Under the Investment Advisory Agreement, our investment advisor does not assume any responsibility to us other than to render the services called for under that agreement, and it is not responsible for any action of our board of directors in following or declining to follow our investment advisor’s advice or recommendations. Under the terms of the Investment Advisory Agreement, our investment advisor and its officers, directors, members, managers, partners, stockholders and employees are not liable to us, any subsidiary of ours, our directors, our stockholders or any subsidiary’s stockholders or partners for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting gross negligence, willful misconduct, bad faith or reckless disregard of our investment advisor’s duties under the Investment Advisory Agreement. In addition, we have agreed to indemnify our investment advisor and its officers, directors, members, managers, partners, stockholders and employees from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement, except where attributable to gross negligence, willful misconduct, bad faith or reckless disregard of such person’s duties under the Investment Advisory Agreement. These protections may lead our investment advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account. | ||||||||
Shares Trade at Discount to Net Asset Value | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. Shares of closed-end investment companies, including BDCs, frequently trade at a discount from net asset value. This characteristic of closed-end investment companies and BDCs is separate and distinct from the risk that our net asset value per share may decline. We cannot predict whether our common stock will trade at, above or below net asset value. In addition, if our common stock trades below net asset value, we will generally not be able to issue additional common stock at the market price without first obtaining the approval of our stockholders and our Independent Directors. On June 29, 2022 our stockholders voted to allow us to sell or otherwise issue common stock at a price below net asset value per share for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2023 Annual Meeting of Stockholders. Selling or otherwise issuing shares of FIC’s common stock below its then current net asset value per share would result in a dilution of FIC’s existing common stockholders. The maximum number of shares issuable below net asset value pursuant to the authority granted by our stockholders that could result in such dilution is limited to 25.0% of FIC’s then outstanding common stock immediately prior to each such sale. We do not intend to sell or otherwise issue shares of our common stock below net asset value unless our board of directors determines that it would be in our stockholders’ best interests to do so. The level of net asset value dilution that could result from such an offering is not limited. | ||||||||
Market Conditions | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Market conditions may increase the risks associated with our business and an investment in us. The current worldwide financial market situation may contribute to increased market volatility, may have long-term effects on the U.S. and worldwide financial markets and may cause economic uncertainties or deterioration in the United States and worldwide. These conditions raised the level of many of the risks described herein and, if repeated or continued, could have an adverse effect on our portfolio companies and on their results of operations, financial conditions, access to credit and capital. The stress in the credit market and upon banks has led other creditors to tighten credit and the terms of credit. In certain cases, senior lenders to our portfolio companies can block payments by our portfolio companies in respect of our loans to such portfolio companies. In turn, these could have adverse effects on our business, financial condition, results of operations, distributions to our stockholders, access to capital, valuation of our assets and our stock price. Notwithstanding any recent gains across either the equity or debt markets, these conditions may continue for a prolonged period of time or worsen in the future. | ||||||||
Stockholders Not Participate in Share Trade at Discount to Net Asset Value Per Share May Experience Immediate Dilution | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | If, in the future, we sell common stock at a discount to our net asset value per share, stockholders who do not participate in such sale will experience immediate dilution in an amount that may be material. On June 29, 2022, our stockholders approved our ability to sell or otherwise issue shares of our common stock at a discount from net asset value per share, as long as the cumulative number of shares sold pursuant to such authority does not exceed 25.0% of our then outstanding common stock immediately prior to each such sale, for a period of one year ending on the earlier of June 29, 2023 or the date of our 2023 Annual Meeting of Stockholders. Our stockholders will be asked to vote on a similar proposal at our 2023 Annual Meeting of Stockholders. If we sell or otherwise issue shares of our common stock at a discount to net asset value, it will pose a risk of dilution to our stockholders. In particular, stockholders who do not purchase additional shares at or below the discounted price in proportion to their current ownership will experience an immediate decrease in net asset value per share (as well as in the aggregate net asset value of their shares if they do not participate at all). These stockholders will also experience a disproportionately greater decrease in their participation in our earnings and assets and their voting power than the increase we experience in our assets, potential earning power and voting interests from such issuances or sale. In addition, such issuances or sales may adversely affect the price at which our common stock trades. For additional information and hypothetical examples of these risks, see “Sales of Common Stock Below Net Asset Value,” and for actual dilution illustrations specific to an offering, see the prospectus supplement pursuant to which such sale is made. | ||||||||
Significant Change in Net Asset Value | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our net asset value may have changed significantly since our last valuation. Our board of directors determines the fair value of our portfolio investments on a quarterly basis based on input from our investment advisor, our audit committee and, as to certain of our investments, a third party independent valuation firm. While the board of directors will review our net asset value per share in connection with any offering, it will not always have the benefit of input from the independent valuation firm when it does so. The fair value of various individual investments in our portfolio and/or the aggregate fair value of our investments may change significantly over time. If the fair value of our investment portfolio at December 31, 2022 is less than the fair value was at the time of an offering during 2022, then we may record an unrealized loss on our investment portfolio and may report a lower net asset value per share than was reflected in the Selected Consolidated Financial Data and the financial statements included in the prospectus supplement of that offering. If the fair value of our investment portfolio at December 31, 2022 is greater than the fair value at the time of an offering during 2022, we may record an unrealized gain on our investment portfolio and may report a greater net asset value per share than so reflected in the prospectus supplement of that offering. Upon publication of this information in connection with our announcement of operating results for our fiscal year ended December 31, 2022 , the market price of our common stock may fluctuate materially, and may be substantially less than the price per share you pay for our common stock in an offering. | ||||||||
Significant Fluctuation on Market Price of Securities | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | The market price of our securities may fluctuate significantly. The market price and liquidity of the market for shares of our common stock may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include: significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which is not necessarily related to the operating performance of these companies; exclusion of our common stock from certain market indices, such as the Russell 2000 Financial Services Index, could reduce the ability of certain institutional investors to own our common stock and could put short term pressure on our common stock; changes in regulatory policies or tax guidelines, particularly with respect to RICs, BDCs or SBICs; loss of RIC or BDC status; loss of status as an SBIC for the Funds, or any other SBIC subsidiary we may form; changes or perceived changes in earnings or variations in operating results; changes or perceived changes in the value of our portfolio of investments; changes in accounting guidelines governing valuation of our investments; any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; departure of our investment advisor’s key personnel; operating performance of companies comparable to us; general economic trends and other external factors; and loss of a major funding source. | ||||||||
Investment in Our Securities May Involve Above Average Degree of Risk | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Investing in our securities may involve an above average degree of risk. The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies may be highly speculative; therefore, an investment in our securities may not be suitable for someone with lower risk tolerance. | ||||||||
Sales of Substantial Amounts of Common Stock | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Sales of substantial amounts of our common stock may have an adverse effect on the market price of our common stock. As of February 28, 2023, we had 24,842,692 s hares of common stock outstanding. Sales of substantial amounts of our common stock, or the availability of shares for sale, could adversely affect the prevailing market price of our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of equity securities should we desire to do so. | ||||||||
Issue of Preferred Stock and/or Debt Securities, Net Asset Value and Market Value of Common Stock | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | If we issue preferred stock and/or debt securities, the net asset value and market value of our common stock may become more volatile. We cannot assure you that the issuance of preferred stock and/or debt securities would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock and/or debt securities would likely cause the net asset value and market value of our common stock to become more volatile. If the distribution rate on the preferred stock, or the interest rate on the debt securities, were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of our common stock would be reduced. If the distribution rate on the preferred stock, or the interest rate on the debt securities, were to exceed the net rate of return on our portfolio, the use of leverage would result in a lower rate of return to the holders of common stock than if we had not issued the preferred stock and/or debt securities. Any decline in the net asset value of our investment would be borne entirely by the holders of our common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of our common stock than if we were not leveraged through the issuance of preferred stock and/or debt securities. This decline in net asset value would also tend to cause a greater decline in the market price for our common stock. There is also a risk that, in the event of a sharp decline in the value of our net assets, we would be in danger of failing to maintain required asset coverage ratios which may be required by the preferred stock and/or debt securities or of a downgrade in the ratings of the preferred stock and/or debt securities or our current investment income might not be sufficient to meet the distribution requirements on the preferred stock or the interest payments on the debt securities. In order to counteract such an event, we might need to liquidate investments in order to fund redemption of some or all of the preferred stock and/or debt securities. In addition, we would pay (and the holders of our common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock and/or debt securities. Holders of preferred stock and/or debt securities may have different interests than holders of common stock and may at times have disproportionate influence over our affairs. | ||||||||
Provisions of Maryland General Corporation Law | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Provisions of the Maryland General Corporation Law and our charter and bylaws could deter takeover attempts and have an adverse effect on the price of our common stock. The Maryland General Corporation Law contains provisions that may discourage, delay or make more difficult a change in control of us or the removal of our directors. In addition, our board of directors may, without stockholder action, authorize the issuance of shares of stock in one or more classes or series, including preferred stock. Our charter and bylaws contain provisions that limit liability and provide for indemnification of our directors and officers. These provisions and others also may have the effect of deterring hostile takeovers or delaying changes in control or management. We are generally prohibited from engaging in mergers and other business combinations with stockholders that beneficially own 10.0% or more of the voting power of our outstanding voting stock, or with their affiliates, for five years after the most recent date on which such stockholders became the beneficial owners of 10.0% or more of the voting power of our outstanding voting stock and thereafter unless our directors and stockholders approve the business combination in the prescribed manner. Maryland law may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter authorizing our board of directors to classify or reclassify shares of our stock in one or more classes or series and to cause the issuance of additional shares of our stock, including preferred stock. In addition, we have adopted a classified board of directors. A classified board may render a change in control of us or removal of our incumbent management more difficult. These provisions, as well as other provisions of our charter and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders. | ||||||||
Subject to Securities Litigation or Shareholder Activism, Cause to Incur Significant Expense, Hinder Execution of Investment Strategy and Impact Our Stock Price | |||||||||
General Description of Registrant [Abstract] | |||||||||
Risk [Text Block] | Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Shareholder activism, which could take many forms or arise in a variety of situations, has been increasing in the BDC space recently. While we are currently not subject to any securities litigation or shareholder activism, due to the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of securities litigation or shareholder activism. Securities litigation and shareholder activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such securities litigation and shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses related to any securities litigation and activist shareholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and shareholder activism. | ||||||||
2023 Notes | |||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt, Title [Text Block] | 2023 Notes | ||||||||
Long Term Debt, Principal | $ 6,500 | $ 43,500 | |||||||
Long Term Debt, Structuring [Text Block] | 5.875% notes due 2023 | ||||||||
February 2024 Notes | |||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt, Title [Text Block] | February 2024 Notes | ||||||||
Long Term Debt, Principal | $ 9,000 | $ 60,000 | |||||||
Long Term Debt, Structuring [Text Block] | 6.000% notes due 2024 | ||||||||
November 2024 Notes | |||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt, Title [Text Block] | November 2024 Notes | ||||||||
Long Term Debt, Principal | $ 8,300 | $ 55,000 | |||||||
January 2026 Notes | |||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt, Title [Text Block] | January 2026 Notes | ||||||||
Long Term Debt, Principal | $ 125,000 | ||||||||
Long Term Debt, Structuring [Text Block] | The January 2026 Notes will mature on January 31, 2026 and bear interest at a rate of 4.75%. The January 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the January 2026 Notes is payable on January 31 and July 31 of each year. | ||||||||
November 2026 Notes | |||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||
Long Term Debt, Title [Text Block] | November 2026 Notes | ||||||||
Long Term Debt, Principal | $ 125,000 | ||||||||
Long Term Debt, Structuring [Text Block] | The November 2026 Notes will mature on November 15, 2026 and bear interest at a rate of 3.50%. The November 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the November 2026 Notes is payable on May 15 and November 15 of each year. We do not intend to list the November 2026 Notes on any securities exchange or automated dealer quotation system. |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Note 1. Organization and Nature of Business Fidus Investment Corporation (“FIC,” and together with its subsidiaries, the “Company”), a Maryland corporation, operates as an externally managed, closed-end, non-diversified business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). FIC completed its initial public offering, or IPO, in June 2011. In addition, for U.S. federal income tax purposes, the Company has elected, and intends to qualify annually, to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company provides customized debt and equity financing solutions to lower middle-market companies, and may make investments directly or through its two wholly-owned investment company subsidiaries, Fidus Mezzanine Capital II, L.P. (“Fund II”) and Fidus Mezzanine Capital III, L.P. (“Fund III”) (collectively, Fund II and Fund III are referred to as the “Funds”). The Funds are licensed by the U.S. Small Business Administration (the “SBA”) as small business investment companies (“SBIC”). The SBIC licenses allow the Funds to obtain leverage by issuing SBA-guaranteed debentures (“SBA debentures”), subject to the issuance of leverage commitments by the SBA and other customary procedures. As SBICs, the Funds are subject to regulations of and oversight by the SBA under the Small Business Investment Act of 1958, as amended (the “SBIC Act”), concerning, among other things, the size and nature of the companies in which they may invest and the structure of those investments. We believe that utilizing both FIC and the Funds as investment vehicles provides us with access to a broader array of investment opportunities. Given our access to lower cost capital through the SBA’s SBIC debenture program, we expect that we will continue to make investments through the Funds until the earlier of the end of the Funds’ investment period, if applicable, or the Funds reach their borrowing limit under the program. For two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $ 350,000 . Fund II and Fund III are not registered under the 1940 Act and rely on the exclusion from the definition of investment company contained in Section 3(c)(7) of the 1940 Act. The Company pays a quarterly base management fee and an incentive fee to Fidus Investment Advisors, LLC, our investment advisor (the “Investment Advisor” or “Fidus Investment Advisors”) under an investment advisory agreement (the “Investment Advisory Agreement”). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Basis of presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) pursuant to the requirements for reporting on Form 10-K, Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. During fiscal year ended December 31, 2022 , the Company elected to change the manner in which it presents residual investments in portfolio companies that have sold their operations and are in the process of winding down. These investments similar to escrow receivables are now included in prepaid expenses and other assets whereas previously they were included as a component of investments, at fair value, on the consolidated statements of assets and liabilities until the security was legally extinguished or relinquished. There is no change in historical net increase in net assets resulting from operations due to this change in presentation. Use of estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Consolidation: Pursuant to Article 6 of Regulation S-X and ASC 946, the Company will generally not consolidate its investments in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. As a result, the consolidated financial statements of the Company include only the accounts of the Company and its wholly-owned subsidiaries, including the Funds. All significant intercompany balances and transactions have been eliminated. Investment risks: The Company’s investments are subject to a variety of risks. These risks may include, but are not limited to the following: • Market risk - In contrast to investment-grade bonds (the market prices of which change primarily as a reaction to changes in interest rates), the market prices of high-yield bonds (which are also affected by changes in interest rates) are influenced much more by credit factors and financial results of the issuer as well as general economic factors that influence the financial markets as a whole. The portfolio companies in which the Company invests may be unseasoned, unprofitable and/or have little established operating history or earnings. These companies may also lack technical, marketing, financial, and other resources or may be dependent upon the success of one product or service, a unique distribution channel, or the effectiveness of a manager or management team, as compared to larger, more established entities. The failure of a single product, service or distribution channel, or the loss or the ineffectiveness of a key executive or executives within the management team may have a materially adverse impact on such companies. Furthermore, these companies may be more vulnerable to competition and to overall economic conditions than larger, more established entities. • Credit risk - Credit risk represents the risk that the Company would incur if the counterparties failed to perform pursuant to the terms of their agreements with the Company. Issues of high-yield debt securities in which the Company invests are more likely to default on interest or principal than are issues of investment-grade securities. • Liquidity risk - Liquidity risk represents the possibility that the Company may not be able to sell its investments quickly or at a reasonable price (given the lack of an established market). • Interest rate risk - Interest rate risk represents the likelihood that a change in interest rates could have an adverse impact on the fair value of an interest-bearing financial instrument. • Prepayment risk - Certain of the Company’s debt investments allow for prepayment of principal without penalty. Downward changes in market interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the debt investments and making the instrument less likely to be an income producing instrument through the stated maturity date. • Off-Balance sheet risk - Some of the Company’s financial instruments contain off-balance sheet risk. Generally, these financial instruments represent future commitments to purchase other financial instruments at defined terms at defined future dates. See Note 7 for further details. Fair value of financial instruments: The Company measures and discloses fair value with respect to substantially all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 to the consolidated financial statements for further discussion regarding the fair value measurements and hierarchy. Investment classification: The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in those companies where the Company owns more than 25 % of the voting securities of such company or has rights to maintain greater than 50 % of the board representation. Under the 1940 Act, “Affiliate Investments” are defined as investments in those companies where the Company owns between 5 % and 25 % of the voting securities of such company. “Non-Control/Non-Affiliate Investments” are those that neither qualify as Control Investments nor Affiliate Investments. Segments: In accordance with ASC Topic 280 — Segment Reporting , the Company has determined that it has a single reporting segment and operating unit structure. Cash and cash equivalents: Cash and cash equivalents are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company places its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits. The Company does not believe its cash balances are exposed to any significant credit risk. Deferred financing costs: Deferred financing costs consist of fees and expenses paid in connection with the SBA debentures, the Credit Facility and the Notes (as defined in Note 6). Deferred financing costs are capitalized and amortized to interest and financing expenses over the term of the debt agreement using the effective interest method. Unamortized deferred financing costs are presented as an offset to the corresponding debt liabilities on the consolidated statements of assets and liabilities. Realized losses on extinguishment of debt: Upon the repayment of debt obligations which are deemed to be extinguishments, the difference between the principal amount due at maturity, adjusted for any unamortized deferred financing costs, is recognized as a loss (i.e., the unamortized deferred financing costs are recognized as a loss upon extinguishment of the underlying debt obligation). Deferred offering costs: Deferred offering costs include registration expenses related to the shelf registration statement filing pursuant to which the Company may offer its securities, from time to time, in one or more offerings. These expenses primarily consist of U.S. Securities and Exchange Commission (“SEC”) registration fees, legal fees and accounting fees incurred. These expenses are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities. Upon the completion of an equity offering or a debt offering, the deferred expenses are charged to additional paid-in capital or deferred financing costs, respectively. If no offering is completed prior to the expiration of the registration statement, the deferred costs are charged to expense. Realized gains or losses and unrealized appreciation or depreciation on investments: Realized gains or losses on investments are recorded upon the sale or disposition of a portfolio investment and are calculated as the difference between the net proceeds from the sale or disposition and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation on the consolidated statements of operations includes changes in the fair value of investments from the prior period, as determined in good faith by the Company’s board of directors (the “Board”) through the application of the Company’s valuation policy, as well as reclassifications of any prior period unrealized appreciation or depreciation on exited investments to realized gains or losses on investments. Interest and dividend income: Interest and dividend income are recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest is accrued daily based on the outstanding principal amount and the contractual terms of the debt. Dividend income is recorded as dividends are declared or at the point an obligation exists for the portfolio company to make a distribution, and is generally recognized when received. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital. Distributions of earnings are included in dividend income while a return of capital is recorded as a reduction in the cost basis of the investment. Estimates are adjusted as necessary after the relevant tax forms are received from the portfolio company. PIK income: Certain of the Company’s investments contain a payment-in-kind (“PIK”) income provision. The PIK income, computed at the contractual rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash, and recorded as interest or dividend income, as applicable, on the consolidated statements of operations. Generally, PIK can be paid-in-kind or all in cash. The Company stops accruing PIK income when there is reasonable doubt that PIK income will be collected. PIK income that has been contractually capitalized to the principal balance of the investment prior to the non-accrual designation date is not reserved against interest or dividend income, but rather is assessed through the valuation of the investment (with corresponding adjustments to unrealized depreciation, as applicable). PIK income is included in the Company’s taxable income and, therefore, affects the amount the Company is required to pay to shareholders in the form of dividends in order to maintain the Company’s tax treatment as a RIC, even though the Company has not yet collected the cash. Non-accrual: Debt investments or preferred equity investments (for which the Company is accruing PIK dividends) are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on full non-accrual status. Interest and dividend payments received on non-accrual investments may be recognized as interest or dividend income or may be applied to the investment principal balance based on management’s judgment. Non-accrual investments are restored to accrual status when past due principal, interest or dividends are paid and, in management’s judgment, payments are likely to remain current. Origination and closing fees: The Company also typically receives debt investment origination or closing fees in connection with such investments. Such debt investment origination and closing fees are capitalized as unearned income and offset against investment cost basis on the consolidated statements of assets and liabilities and accreted into interest income over the life of the investment. Upon the prepayment of a debt investment, any unaccreted debt investment origination and closing fees are accelerated into interest income. Warrants : In connection with the Company’s debt investments, the Company will sometimes receive warrants or other equity-related securities from the borrower (“Warrants”). The Company determines the cost basis of Warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and Warrants received. Any resulting difference between the face amount of the debt and its recorded fair value resulting from the assignment of value to the Warrants is treated as original issue discount (“OID”), and accreted into interest income using the effective interest method over the term of the debt investment. Upon the prepayment of a debt investment, any unaccreted OID is accelerated into interest income. Fee income : Transaction fees earned in connection with the Company’s investments are recognized as fee income and are generally non-recurring. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. The Company recognizes income from fees for providing such structuring and advisory services when the services are rendered or the transactions are completed. Upon the prepayment of a debt investment, any prepayment penalties are recorded as fee income when earned. Partial loan and equity sales: The Company follows the guidance in ASC 860, Transfers and Servicing, when accounting for loan (debt investment) participations, equity assignments and other partial loan sales. Such guidance requires a participation, assignment or other partial loan or equity sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations, assignments or other partial loan or equity sales which do not meet the definition of a participating interest should remain on the Company’s consolidated statements of assets and liabilities and the proceeds recorded as a secured borrowing until the definition is met. For these partial loan sales, the interest earned on the entire loan balance is recorded within “interest income” and the interest earned by the buyer in the partial loan sale is recorded within “interest and financing expenses” in the accompanying consolidated statements of operations. Income taxes: The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to stockholders. To maintain the tax treatment of a RIC, the Company generally is required to timely distribute to its stockholders at least 90 % of “investment company taxable income,” as defined by Subchapter M of the Code, each year. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year; however, the Company will pay a 4 % excise tax if it does not distribute at least 98 % of the current year’s ordinary taxable income. Any such carryover taxable income must be distributed through a dividend declared prior to the later of the date on which the final tax return related to the year in which the Company generated such taxable income is filed or the 15 th day of the 10 th month following the close of such taxable year. In addition, the Company will be subject to U.S. federal excise tax if it does not distribute at least 98.2 % of its net capital gains realized, computed for any one year period ending October 31. In the future, the Funds may be limited by provisions of the SBIC Act and SBA regulations governing SBICs from making certain distributions to FIC that may be necessary to enable FIC to make the minimum distributions required to maintain the tax treatment of a RIC. The Company has certain wholly-owned subsidiaries (the “Taxable Subsidiaries”) that have elected to be treated as corporations for U.S. federal income tax purposes and are thus subject to U.S. federal income tax at corporate rates, each of which generally holds one or more of the Company’s portfolio investments listed on the consolidated schedules of investments. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that the Company’s consolidated financial statements reflect the Company’s investment in the portfolio company investments owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S. federal income tax purposes (such as entities organized as limited liability companies (“LLCs”) or other forms of pass through entities) while complying with the “source-of-income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary will be subject to U.S. federal corporate income tax on its taxable income. Any such income or expense is reflected in the consolidated statements of operations. U.S. federal income tax regulations differ from GAAP, and as a result, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized under GAAP. Differences may be permanent or temporary. Permanent differences may arise as a result of, among other items, a difference in the book and tax basis of certain assets and nondeductible U.S. federal income taxes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. ASC Topic 740 — Accounting for Uncertainty in Income Taxes (“ASC Topic 740”) provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be respected by the applicable tax authorities. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits included in the income tax provision, if any. There were no material uncertain income tax positions at December 31, 2022 and 2021 . The Company’s tax returns are generally subject to examination by U.S. federal and most state tax authorities for a period of three years from the date the respective returns are filed, and, accordingly, the Company’s 2019 through 2021 tax years remain subject to examination. Dividends to stockholders: Dividends to stockholders are recorded on the record date with respect to such distributions. The amount, if any, to be distributed to stockholders, is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, may be distributed at least annually, although the Company may decide to retain such capital gains for investment. The determination of the tax attributes for the Company’s distributions is made annually, and is based upon the Company’s taxable income and distributions paid to its stockholders for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax characterization of the Company’s distributions generally includes both ordinary income and capital gains but may also include qualified dividends or return of capital. The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator before any associated brokerage or other costs. See Note 9 to the consolidated financial statements regarding dividend declarations and distributions. Earnings and net asset value per share: The earnings per share calculations for the years ended December 31, 2022, 2021 and 2020 , are computed utilizing the weighted average shares outstanding for the period. Net asset value per share is calculated using the number of shares outstanding as of the end of the period. Stock Repurchase Program: The Company has an open market stock repurchase program (the “Stock Repurchase Program”) under which the Company may acquire up to $ 5,000 of its outstanding common stock. Under the Stock Repurchase Program, the Company may, but is not obligated to, repurchase outstanding common stock in the open market from time to time provided that the Company complies with the prohibitions under its insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act”), including certain price, market value and timing constraints. The timing, manner, price and amount of any share repurchases will be determined by the Company’s management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate considerations. On October 31, 2022, the Board extended the Stock Repurchase Program through December 31, 2023, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not require the Company to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Stock Repurchase Program. The Stock Repurchase Program may be suspended, extended, modified or discontinued at any time. During the year ended December 31, 2020 the Company repurchased 25,719 shares of common stock on the open market for $ 268 . The Company did no t make any repurchases of common stock during the years ended December 31, 2022 and 2021 . Refer to Note 8 for additional information concerning stock repurchases. Recent accounting pronouncement: In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820),” which clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. In addition, ASU No. 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. ASU No. 2022-03’s amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU No. 2022-03 on its consolidated financial statements. |
Portfolio Company Investments
Portfolio Company Investments | 12 Months Ended |
Dec. 31, 2022 | |
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 periodically makes equity investments in its portfolio companies 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 December 31, 2022, the Company had active investments in 76 portfolio companies and residual investments in two portfolio companies that have sold their underlying operations. The aggregate fair value of the total portfolio was $ 860,329 and the weighted average effective yield on the Company’s debt investments was 13.8 % as of such date. As of December 31, 2022, the Company held equity investments in 74.4 % of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 4.0 % . As of December 31, 2021, the Company had active investments in 70 portfolio companies and residual investments in eight portfolio companies that have sold their underlying operations. The aggregate fair value of the total portfolio was $ 719,124 and the weighted average effective yield on the Company’s debt investments was 12.3 % as of such date. As of December 31, 2021, the Company held equity investments in 82.1 % of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 4.7 % . 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 December 31, 2022 and 2021, including accretion of OID and debt investment origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing, if any. Purchases of debt and equity investments for the years ended December 31, 2022, 2021 and 2020 totaled $ 333,846 , $ 346,737 , and $ 189,996 , respectively. Proceeds from sales and repayments, including principal, return of capital distributions and realized gains, of portfolio investments for the years ended December 31, 2022, 2021 and 2020 totaled $ 193,980 , $ 472,782 , and $ 210,774 respectively. Investments by type with corresponding percentage of total portfolio investments consisted of the following: Fair Value Cost December 31, December 31, December 31, December 31, 2022 2021 2022 2021 First Lien Debt (1) $ 456,105 53.0 % $ 354,922 49.4 % $ 453,585 54.7 % $ 353,306 56.8 % Second Lien Debt 182,948 21.3 158,815 22.1 213,654 25.8 168,573 27.1 Subordinated Debt 101,456 11.8 36,064 5.0 100,634 12.1 35,995 5.8 Equity 117,741 13.7 166,119 23.1 57,868 7.0 60,589 9.8 Warrants 2,079 0.2 3,204 0.4 2,952 0.4 3,323 0.5 Total $ 860,329 100.0 % $ 719,124 100.0 % $ 828,693 100.0 % $ 621,786 100.0 % (1) Includes unitranche investments, which account for 42.1 % and 43.4 % of our portfolio on a fair value and cost basis as of December 31, 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. 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 December 31, December 31, December 31, December 31, 2022 2021 2022 2021 United States Midwest $ 180,556 21.0 % $ 157,222 21.9 % $ 132,177 16.0 % $ 89,865 14.5 % Southeast 265,902 31.0 219,988 30.6 258,373 31.1 197,380 31.7 Northeast 127,427 14.8 126,569 17.6 134,897 16.3 127,809 20.6 West 151,487 17.6 105,918 14.7 161,935 19.5 100,098 16.1 Southwest 122,519 14.2 109,427 15.2 128,873 15.6 106,634 17.1 Canada 12,438 1.4 — — 12,438 1.5 — — Total $ 860,329 100.0 % $ 719,124 100.0 % $ 828,693 100.0 % $ 621,786 100.0 % 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 December 31, December 31, December 31, December 31, 2022 2021 2022 2021 First Lien Debt 95.0 % 72.8 % United States Second Lien Debt 38.1 32.6 Midwest 37.6 % 32.2 % Subordinated Debt 21.1 7.4 Southeast 55.4 45.1 Equity 24.5 34.0 Northeast 26.5 26.0 Warrants 0.4 0.6 West 31.5 21.7 Total 179.1 % 147.4 % Southwest 25.5 22.4 Canada 2.6 — Total 179.1 % 147.4 % As of December 31, 2022 and 2021 , 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 December 31, 2022 , the fair value of the Company's investment in Pfanstiehl, Inc. totaled $ 51,992 or 5.6 % of total assets. As of December 31, 2021 , the Company's investment in Pfanstiehl, Inc. totaled $ 57,639 or 6.4 % of total assets. As of December 31, 2022 and 2021 , the Company had debt investments in four and one portfolio companies, respectively, on non-accrual status : December 31, 2022 December 31, 2021 Fair Fair Portfolio Company Value Cost Value Cost EBL, LLC (EbLens) $ — $ 9,332 $ — (1) $ — (1) US GreenFiber, LLC — 5,223 — (2) 5,223 (2) K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) 2,123 2,368 — (1) — (1) Allredi, LLC (fka Marco Group International OpCo, LLC) 8,144 10,281 — (1) — (1) Total $ 10,267 $ 27,204 $ — $ 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 period end, meaning the Company has ceased recognizing PIK interest income on the investment. 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 year ended December 31, 2022, including the total investment income earned on such investments during the period. Year Ended December 31, 2022 Portfolio Company (1) December 31, 2022 Principal Amount - Debt Investments December 31, 2021 Gross Additions (2) Gross Reductions (3) December 31, 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 EBL, LLC (EbLens) (5) $ 9,350 $ — $ 19,628 $ ( 19,628 ) $ — $ — $ ( 11,083 ) $ — $ — $ — $ — Hilco Plastics Holdings, LLC (dba Hilco Technologies) — — 353 ( 353 ) $ — ( 352 ) — — — — — Mesa Line Services, LLC — 2,151 193 ( 2,344 ) — 194 ( 2,150 ) — — — — US GreenFiber, LLC 5,226 — — — — — — — — — — Total Control Investments $ 14,576 $ 2,151 $ 20,174 $ ( 22,325 ) $ — $ ( 158 ) $ ( 13,233 ) $ — $ — $ — $ — Affiliate Investments Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) $ 9,602 $ 22,405 $ 13,566 $ ( 12,803 ) $ 23,168 $ — 763 $ 973 $ — $ — $ — FAR Research Inc. — 28 — ( 28 ) — — ( 28 ) — — — — Medsurant Holdings, LLC — 3,662 — ( 1,122 ) 2,540 — ( 1,122 ) — — — — Mirage Trailers LLC — 10,675 355 ( 11,030 ) — 324 ( 1,694 ) 248 29 — 132 Pfanstiehl, Inc. 10,000 57,639 34,335 ( 39,982 ) 51,992 24,330 ( 15,432 ) 421 — — 150 Pinnergy, Ltd. (6) — 21,178 15,300 ( 36,478 ) — 15,300 ( 18,177 ) — — 656 — Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) 15,000 18,359 5,487 ( 4,728 ) 19,118 ( 121 ) ( 1,723 ) 1,822 — — 175 Steward Holding LLC (dba Steward Advanced Materials) — 3,338 1,434 — 4,772 — 1,434 — 1 69 — Total Affiliate Investments $ 34,602 $ 137,284 $ 70,477 $ ( 106,171 ) $ 101,590 $ 39,833 $ ( 35,979 ) $ 3,464 $ 30 $ 725 $ 457 (1) The investment type, industry, ownership detail for equity investments, interest rate, maturity date 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 Control investments from Non-control/Non-affiliate investments during the year ended December 31, 2022. (6) Portfolio company was transferred to Non-control/Non-affiliate investments from Affiliate investments during the year ended December 31, 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 December 31, 2021 Portfolio Company (1) December 31, 2021 Principal Amount - Debt Investments December 31, 2020 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements Investments The Board has established and documented processes and methodologies for determining the fair values of portfolio company investments on a recurring basis in accordance with ASC Topic 820 and consistent with the requirements of the 1940 Act. Fair value is the price, determined at the measurement date, that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available or reliable, valuation techniques described below are applied. Under ASC Topic 820, portfolio investments recorded at fair value in the consolidated financial statements are classified within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value, as defined below: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets as of the measurement date. Level 2 — Inputs include quoted prices for similar assets in active markets, or that are quoted prices for identical or similar assets in markets that are not active and inputs that are observable, either directly or indirectly, for substantially the full term, if applicable, of the investment. Level 3 — Inputs include those that are both unobservable and significant to the overall fair value measurement. An investment’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available, with the exception of money market funds and one portfolio company, which are valued using Level 1 inputs as of December 31, 2022. Therefore, the Company values such portfolio investments at fair value, as determined in good faith by the Board, using Level 3 inputs with the exception of money market funds and one portfolio company, that was valued using Level 1 inputs as of December 31, 2022. The degree of judgment exercised by the Board in determining fair value is greatest for investments classified as Level 3 inputs. Due to the inherent uncertainty of determining the fair values of investments that do not have readily available market values, the Board’s estimate of fair values may differ significantly from the values that would have been used had a ready market for the securities existed, and those differences may be material. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the amounts ultimately realized on these investments to be materially different than the valuations currently assigned. With respect to investments for which market quotations are not readily available, the Board undertakes a multi-step valuation process each quarter, as described below: the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of the Investment Advisor responsible for the portfolio investment; preliminary valuation conclusions are then documented and discussed with the investment committee of the Investment Advisor; the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, the Company may determine that it is not cost-effective, and as a result it is not in the Company’s stockholders’ best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not limited to, situations where the Company determines that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. the Board consulted with the independent third-party valuation firm(s) in arriving at our determination of fair value for 16 and 17 of our portfolio company investments representing 29.5 % and 21.8 % of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months ended December 31, 2022 and 2021, respectively) as of December 31, 2022 and 2021, respectively; the audit committee of the Board reviews the preliminary valuations of the Investment Advisor and of the independent valuation firm(s) and responds and supplements the valuation recommendations to reflect any comments; and the Board discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of the Investment Advisor, the independent valuation firm(s) and the audit committee. In making the good faith determination of the value of portfolio investments, the Board starts with the cost basis of the security. The transaction price is typically the best estimate of fair value at inception. When evidence supports a subsequent change to the carrying value from the original transaction price, adjustments are made to reflect the expected exit values. Consistent with the policies and methodologies adopted by the Board, the Company performs detailed valuations of its debt and equity investments, including an analysis on the Company’s unfunded debt investment commitments, using both the market and income approaches as appropriate. Under the market approach, the Company typically uses the enterprise value methodology to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Company derives a single estimate of enterprise value. Under the income approach, the Company typically prepares and analyzes discounted cash flow models to estimate the present value of future cash flows of either an individual debt investment or of the underlying portfolio company itself. The Company evaluates investments in portfolio companies using the most recent portfolio company financial statements and forecasts. The Company also consults with the portfolio company’s senior management to obtain further updates on the portfolio company’s performance, including information such as industry trends, new product development and other operational issues. For the Company’s debt investments the primary valuation technique used to estimate the fair value is the discounted cash flow method. However, if there is deterioration in credit quality or a debt investment is in workout status, the Company may consider other methods in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. The Company’s discounted cash flow models estimate a range of fair values by applying an appropriate discount rate to the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated debt investment agreements. The Company prepares a weighted average cost of capital for use in the discounted cash flow model for each investment, based on factors including, but not limited to: current pricing and credit metrics for similar proposed or executed investment transactions of private companies; the portfolio company’s historical financial results and outlook; and the portfolio company’s current leverage and credit quality as compared to leverage and credit quality as of the date the investment was made. The Company may also consider the following factors when determining the fair value of debt investments: the portfolio company’s ability to make future scheduled payments; prepayment penalties and other fees; estimated remaining life; the nature and realizable value of any collateral securing such debt investment; and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made. The Company estimates the remaining life of its debt investments to generally be the legal maturity date of the instrument, as the Company generally intends to hold its debt investments to maturity. However, if the Company has information available to it that the debt investment is expected to be repaid in the near term, it would use an estimated remaining life based on the expected repayment date. For the Company’s equity investments, including equity and warrants, the Company generally uses a market approach, including valuation methodologies consistent with industry practice, to estimate the enterprise value of portfolio companies. Typically, the enterprise value of a private company is based on multiples of EBITDA, net income, revenues, or in limited cases, book value. In estimating the enterprise value of a portfolio company, the Company analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. The Company may also utilize an income approach when estimating the fair value of its equity securities, either as a primary methodology if consistent with industry practice or if the market approach is otherwise not applicable, or as a supporting methodology to corroborate the fair value ranges determined by the market approach. The Company typically prepares and analyzes discounted cash flow models based on projections of the future free cash flows (or earnings) of the portfolio company. The Company considers various factors, including, but not limited to, the portfolio company’s projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. The following tables present fair value measurements of investments by major class according to the fair value hierarchy: December 31, 2022 Level 1 Level 2 Level 3 Total First Lien Debt $ — $ — $ 456,105 $ 456,105 Second Lien Debt — — 182,948 182,948 Subordinated Debt — — 101,456 101,456 Equity 310 — 117,431 117,741 Warrants — — 2,079 2,079 Money Market Funds 61,076 — — 61,076 Total $ 61,386 $ — $ 860,019 $ 921,405 December 31, 2021 Level 1 Level 2 Level 3 Total First Lien Debt $ — $ — $ 354,922 $ 354,922 Second Lien Debt — — 158,815 158,815 Subordinated Debt — — 36,064 36,064 Equity 357 — 165,762 166,119 Warrants — — 3,204 3,204 Total $ 357 $ — $ 718,767 $ 719,124 The Company reviews the fair value hierarchy classifications on a quarterly basis. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur. There were no transfers among Levels 1, 2, and 3 during the year ended December 31, 2022. There was one transf er among Levels 1, 2, and 3 during the year ended December 31, 2021. The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) for the years ended December 31, 2022 and 2021: First Lien Second Lien Subordinated Debt Debt Debt Equity Warrants Total Balance, December 31, 2020 $ 187,353 $ 332,154 $ 107,911 $ 112,836 $ 2,615 $ 742,869 Net realized gains (losses) on investments — — — 55,779 29 55,808 Net change in unrealized appreciation (depreciation) on ( 1,152 ) 35 ( 499 ) 42,652 460 41,496 Purchase of investments 244,596 72,181 16,500 13,331 129 346,737 Proceeds from sales and repayments of investments ( 75,124 ) ( 250,662 ) ( 88,384 ) ( 58,583 ) ( 29 ) ( 472,782 ) Interest and dividend income paid-in-kind 292 3,911 92 104 — 4,399 Proceeds from loan origination fees ( 2,322 ) ( 213 ) ( 135 ) — — ( 2,670 ) Accretion of loan origination fees 1,279 654 579 — — 2,512 Accretion of original issue discount — 755 — — — 755 Transfers in/(out) of Level 3 (1) — — — ( 357 ) — ( 357 ) Balance, December 31, 2021 $ 354,922 $ 158,815 $ 36,064 $ 165,762 3,204 $ 718,767 Net realized gains (losses) on investments ( 1,717 ) — — 65,817 1,535 65,635 Net change in unrealized appreciation (depreciation) on 904 ( 20,948 ) 753 ( 45,610 ) ( 754 ) ( 65,655 ) Purchase of investments 189,149 67,998 66,516 10,183 — 333,846 Proceeds from sales and repayments of investments ( 87,622 ) ( 23,731 ) ( 2,000 ) ( 78,721 ) ( 1,906 ) ( 193,980 ) Interest and dividend income paid-in-kind 597 651 415 — — 1,663 Proceeds from loan origination fees ( 1,566 ) ( 208 ) ( 350 ) — — ( 2,124 ) Accretion of loan origination fees 1,412 155 58 — — 1,625 Accretion of original issue discount 26 216 — — — 242 Transfers in/(out) of Level 3 — — — — — — Balance, December 31, 2022 $ 456,105 $ 182,948 $ 101,456 $ 117,431 $ 2,079 $ 860,019 (1) Transfers out of Level 3 were as a result of changes in the observability of significant inputs or available market data for certain portfolio companies. Net change in unrealized appreciation/(depreciation) of $( 28,524 ) and $ 46,340 for the years ended December 31, 2022 and 2021, respectively, was attributable to Level 3 investments held at December 31, 2022 and 2021, respectively. The following tables summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Company’s Level 3 debt and equity investments as of December 31, 2022 and 2021. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values. Fair Value at Valuation Unobservable Range December 31, 2022 Techniques Inputs (weighted average) (1) Debt investments: First Lien Debt $ 441,830 Discounted cash flow Weighted average cost of capital 8.9 % - 21.9 % ( 15.5 %) 11,000 Enterprise value Asset Coverage 1.1 x - 1.1 x ( 1.1 x) 3,275 Enterprise value Revenue multiples 4.3 x - 4.3 x ( 4.3 x) Second Lien Debt 180,824 Discounted cash flow (2) Weighted average cost of capital 11.7 % - 25.0 % ( 14.5 %) - Enterprise value EBITDA multiples 5.0 x - 5.0 x ( 5.0 x) 2,123 Enterprise value Asset Coverage 0.8 x - 0.8 x ( 0.8 x) Subordinated Debt 97,706 Discounted cash flow Weighted average cost of capital 10.0 % - 15.2 % ( 12.5 %) 3,750 Enterprise value EBITDA multiples 8.5 x - 8.5 x ( 8.5 x) Equity investments: Equity 111,808 Enterprise value EBITDA multiples 4.0 x - 16.8 x ( 8.1 x) 5,623 Enterprise value Revenue multiples 0.9 x - 7.8 x ( 6.4 x) Warrants 1,949 Enterprise value EBITDA multiples 6.0 x - 6.0 x ( 6.0 x) 130 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Includes $ 18.0 million of debt investments which were valued using a trading discount to par. Fair Value at Valuation Unobservable Range December 31, 2021 Techniques Inputs (weighted average) (1) Debt investments: First Lien Debt $ 335,022 Discounted cash flow Weighted average cost of capital 4.0 % - 21.6 % ( 12.2 %) 11,000 Enterprise value Asset Coverage 1.2 x - 1.2 x ( 1.2 x) 8,900 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) Second Lien Debt 144,541 Discounted cash flow Weighted average cost of capital 7.8 % - 25.0 % ( 14.4 %) 14,274 Enterprise value Asset Coverage 1.0 x - 1.4 x ( 1.4 x) Subordinated Debt 36,064 Discounted cash flow Weighted average cost of capital 10.0 % - 13.5 % ( 11.1 %) Equity investments: Equity 162,681 Enterprise value EBITDA multiples 3.5 x - 23.8 x ( 8.2 x) 3,081 Enterprise value Revenue multiples 3.5 x - 9.3 x ( 6.2 x) Warrants 3,075 Enterprise value EBITDA multiples 4.5 x - 6.0 x ( 5.9 x) 129 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) (1) Unobservable inputs were weighted by the relative fair value of the instruments. The significant unobservable input used in determining the fair value under the discounted cash flow technique is the weighted average cost of capital of each security. Significant increases (or decreases) in this input would likely result in significantly lower (or higher) fair value estimates. The significant unobservable inputs used in determining fair value under the enterprise value technique are revenue and EBITDA multiples, as well as asset coverage. Significant increases (or decreases) in these inputs could result in significantly higher (or lower) fair value estimates. Other Financial Assets and Liabilities ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash and cash equivalents, interest receivable and accounts payable and other liabilities approximate the fair value of such items due to the short maturity of such instruments. The Company’s borrowings under the Credit Facility (as defined in Note 6), SBA debentures, and Notes (as defined in Note 6) are recorded at their respective carrying values. The following tables summarize the carrying value and fair value of the Company’s debt obligations as of December 31, 2022 and 2021: December 31, 2022 (5) December 31, 2021 (5) Carrying Value (1) Fair Value Carrying Value (1) Fair Value SBA debentures (2) $ 153,000 $ 153,000 $ 107,000 $ 107,000 Credit Facility borrowings (3) — — — — January 2026 Notes (4) 125,000 111,854 125,000 125,258 November 2026 Notes (4) 125,000 103,963 125,000 125,171 Total $ 403,000 $ 368,817 $ 357,000 $ 357,429 (1) Carrying value represents the outstanding principal balance of the debt obligation. (2) The fair value of the SBA debentures is estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures, which are Level 3 inputs under ASC Topic 820. (3) The fair value of borrowings under the Credit Facility, if valued under ASC Topic 820, are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. (4) The fair value of the January 2026 Notes (as defined in Note 6) and the November 2026 Notes (as defined in Note 6) are estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date, which are Level 3 inputs under ASC Topic 820. (5) Totals exclude $ 16,880 and $ 17,637 of secured borrowings as of December 31, 2022 and December 31, 2021 , respectively. The following table summarizes the inputs used to value the Company’s debt obligations if measured at fair value as of December 31, 2022 and 2021: Fair Value December 31, December 31, Valuation Inputs 2022 2021 Level 1 $ — $ — Level 2 — — Level 3 368,817 357,429 Total $ 368,817 $ 357,429 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions Investment Advisory Agreement: The Company has entered into an Investment Advisory Agreement with the Investment Advisor. On June 9, 2022, the Board approved the renewal of the Investment Advisory Agreement for the period beginning June 20, 2022 through June 20, 2023. Pursuant to the Investment Advisory Agreement and subject to the overall supervision of the Board, the Investment Advisor provides investment advisory services to the Company. For providing these services, the Investment Advisor receives a fee, consisting of two components — a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 1.75 % based on the average value of total assets (other than cash or cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. The Board of Directors accepted a voluntary, non-contractual, and unconditional waiver from the Investment Advisor to exclude any investments recorded as secured borrowings as defined under GAAP from the base management fee payable effective April 1, 2021. The base management fee is payable quarterly in arrears. The base management fee under the Investment Advisory Agreement for the years ended December 31, 2022, 2021 and 2020 totaled $ 14,568 , $ 12,874 , and $ 12,932 , respectively. The base management fee waiver was $ 302 and $ 176 for the years ended December 31, 2022 and 2021 , respectively. There was no base management fee waiver for the year ended December 31, 2020. As of December 31, 2022 and 2021, the base management fee payable (net of the base management fee waiver) was $ 3,769 and $ 3,135 , respectively. The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the quarter. Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (defined below) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee and excise taxes on realized gains). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, original issue discount, debt instruments with PIK income, preferred stock with PIK dividends and zero-coupon securities), and accrued income the Company has not yet received in cash. The Investment Advisor is not under any obligation to reimburse the Company for any part of the incentive fee it receives that was based on accrued interest that the Company never collects. Pre-incentive fee net investment income does not include any realized capital gains, taxes associated with such realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where the Company incurs a loss. For example, if the Company generates pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to a net loss on investments. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 2.0 % per quarter. Under conditions such as the current rising interest rate environment, the Company may be able to invest funds in debt instruments that provide for a higher return, which would increase the Company’s pre-incentive fee net investment income and make it easier for the Investment Advisor to surpass the fixed hurdle rate and receive an incentive fee based on such net investment income. The Company pays the Investment Advisor an incentive fee with respect to pre-incentive fee net investment income in each calendar quarter as follows: no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle rate of 2.0 %; 100.0 % of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5 % in any calendar quarter. This portion of the pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 2.5 %) is referred to as the “catch-up” provision. The catch-up is meant to provide the Investment Advisor with 20.0 % of the pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeds 2.5 % in any calendar quarter; and 20.0 % of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 2.5 % in any calendar quarter. The sum of the calculations above equals the income incentive fee. The income incentive fee is appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the calendar quarter. The income incentive fee for the years ended December 31, 2022, 2021 and 2020 totaled $ 8,318 , $ 10,266 , and $ 8,952 , respectively. The Investment Advisor, in consultation with the Board, agreed to voluntarily waive $ 423 of the income incentive fee for the year ended December 31, 2020 . There was no income incentive fee waiver for the years ended December 31, 2022 or 2021. As of December 31, 2022 and 2021, the income incentive fee payable was $ 3,035 and $ 2,622 , respectively. The second part of the incentive fee is a capital gains incentive fee that is determined and paid in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.0 % of the net capital gains as of the end of the fiscal year. In determining the capital gains incentive fee to be paid in cash to the Investment Advisor, the Company calculates the cumulative aggregate realized capital gains and losses since the Formation Transactions (realized capital gains and losses include realized gains and losses on investments, net of income tax provision from realized gains on investments, realized losses on extinguishment of debt, but excluding income tax (provision) benefit from deemed distribution of long term capital gains), and the aggregate unrealized capital depreciation on investments as of the date of the calculation. At the end of the applicable year, the amount of capital gains that serves as the basis for the calculation of the capital gains incentive fee to be paid equals the cumulative aggregate realized capital gains on investments, less cumulative aggregate tax (provision) benefit on realized gains (losses), less cumulative aggregate realized capital losses on investments, less aggregate unrealized capital depreciation on investments, and less cumulative aggregate realized losses on extinguishment of debt. If this number is positive at the end of such year, then the capital gains incentive fee to be paid in cash for such year equals 20.0 % of such amount, less the aggregate amount of any capital gains incentive fees paid in all prior years. As of December 31, 2022 and 2021, the capital gains incentive fee payable in cash was $ 7,556 and $ 6,136 , respectively (as cumulative aggregate realized capital gains and losses on investments exceeded aggregate unrealized capital depreciation on investments plus realized losses on extinguishment of debt). The aggregate amount of capital gains incentive fees paid from the IPO through December 31, 2022 was $ 6,484 . In addition, the Company accrues, but does not pay in cash, a capital gains incentive fee in connection with any unrealized capital appreciation on investments, as applicable. If, on a cumulative basis, the sum of (i) net realized gains/(losses) on investments plus (ii) net unrealized appreciation/(depreciation) on investments plus (iii) realized losses on extinguishment of debt decreases during a period, the Company will reverse any excess capital gains incentive fee previously accrued such that the amount of capital gains incentive fee accrued is no more than 20.0 % of the sum of (i) net realized gains/(losses) on investments plus (ii) net unrealized appreciation/(depreciation) on investments plus (iii) realized losses on extinguishment of debt. The capital gains incentive fee accrued (reversed) during the years ended December 31, 2022, 2021 and 2020 was $ ( 432 ) , $ 18,196 , and $ ( 1,684 ) , respectively. As of December 31, 2022 and 2021, the accrued capital gains incentive fee payable was $ 22,659 and $ 29,227 , respectively. Unless terminated earlier as described below, the Investment Advisory Agreement will continue in effect from year to year if approved annually by the Board or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, and, in either case, if also approved by a majority of the directors who are not “interested persons” of the Company, as such term is defined under Section 2(a)(19) of the 1940 Act (the “Independent Directors”). The Investment Advisory Agreement automatically terminates in the event of its assignment, as defined in the 1940 Act, by the Investment Advisor and may be terminated by either party without penalty upon not less than 60 days’ written notice to the other. The holders of a majority of the Company’s outstanding voting securities may also terminate the Investment Advisory Agreement without penalty. Administration Agreement: The Company also entered into an administration agreement (the “Administration Agreement”) with the Investment Advisor. On June 9, 2022, the Board approved the renewal of the Administration Agreement for the period beginning June 20, 2022 through June 20, 2023. Under the Administration Agreement, the Investment Advisor furnishes the Company with office facilities and equipment, provides clerical, bookkeeping, and record keeping services at such facilities and provides the Company with other administrative services necessary to conduct its day-to-day operations. The Company reimburses the Investment Advisor for the allocable portion of overhead expenses incurred in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. Under the Administration Agreement, the Investment Advisor also provides managerial assistance to those portfolio companies on the Company's behalf to those portfolio companies that have accepted the Company's offer to provide such assistance and the Company reimburses the Investment Advisor for fees and expenses incurred with providing such services. In addition, the Company reimburses the Investment Advisor for fees and expenses incurred while performing due diligence on the Company’s prospective portfolio companies, including “dead deal” expenses . Under the Administration Agreement, administrative service expenses for the years ended December 31, 2022, 2021 and 2020 were $ 1,902 , $ 1,719 and $ 1,720 , respectively. As of December 31, 2022 and 2021, the accrued administrative service expense payable was $ 700 and $ 634 , respectively. Fidus Equity Fund I, L.P. : On February 25, 2020, the Company entered into a Limited Partnership Agreement (the “Agreement”) with Fidus Equity Fund I, L.P. (“FEF I”). Pursuant to the Agreement, the Company will serve as the General Partner of FEF I. Owned by third-party investors, FEF I was formed to purchase 50 % of select equity investments from the Company. The Company will not receive any fees from FEF I for any services provided in its capacity as the General Partner of FEF I. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt Revolving Credit Facility : On June 16, 2014, FIC entered into a senior secured revolving credit agreement (the "Credit Agreement") with ING Capital LLC (“ING”), as the administrative agent, collateral agent, and lender (“Credit Facility”). The Credit Facility is secured by certain portfolio investments held by the Company, but portfolio investments held by the Funds are not collateral for the Credit Facility. On April 24, 2019, the Company entered into an Amended & Restated Senior Secured Revolving Credit Agreement (the “Amended Credit Agreement”) among the Company, as borrower, the lenders party thereto, and ING, as administrative agent. On June 26, 2020, the Company entered into an amendment to the Amended Credit Agreement that, among other changes, modified certain financial covenants. On August 17, 2022, the Company entered into a second amendment on the Amended Credit Agreement ("Second Amendment"). The Second Amendment, among other things: (i) changed the underlying benchmark used to compute interest under the Amended Credit Agreement to SOFR from LIBOR; (ii) reduced the applicable margin from 3.00 % to 2.675 % on SOFR loans prior to satisfying certain step-down conditions, and from 2.675 % to 2.50 % after satisfying certain step-down conditions, with commensurate reductions in the applicable margins for base rate loans; (iii) provided for a loan commitment availability period ending on August 17, 2026; (iv) extended the maturity date to August 17, 2027 from April 24, 2023 ; and (v) amended certain financial covenants, including (a) amending the asset coverage ratio to no less than 1.50 to 1.00 from no less than 2.00 to 1.00 (on a regulatory basis); and (b) requiring the Company to maintain a senior asset coverage ratio of no less than 2.00 to 1.00. 2.500 % to 2.675 % per annum on the unused portion of the Credit Facility at or below 35 % of the commitments and 0.50 % per annum on any remaining unused portion of the Credit Facility between the total commitments and the 35 % minimum utilization. The Credit Facility is secured by a first priority security interest in all of our assets, excluding the assets of our SBIC subsidiaries. SBA debentures: The Company uses debenture leverage provided through the SBA to fund a portion of its investment purchases. Under the SBA debenture program, the SBA commits to purchase debentures issued by SBICs; such debentures have 10-year terms with the entire principal balance due at maturity and are guaranteed by the SBA. Interest on SBA debentures is payable semi-annually on March 1 and September 1 . As of December 31, 2022 and 2021, approved and unused SBA debenture commitments were $ 37,000 and $ 63,000 , respectively. The SBA may limit the amount that may be drawn each year under these commitments, and each issuance of leverage is conditioned on the Company’s full compliance, as determined by the SBA, with the terms and conditions under SBA regulations. As of December 31, 2022 and 2021, the Company’s issued and outstanding SBA debentures mature as follows: Pooling Maturity Fixed December 31, December 31, Date (1) Date Interest Rate 2022 2021 3/25/2015 3/1/2025 3.277 % $ 1,500 $ 22,500 3/23/2016 3/1/2026 3.267 1,500 1,500 3/23/2016 3/1/2026 3.249 2,500 2,500 9/21/2016 9/1/2026 2.793 500 500 9/20/2017 9/1/2027 3.260 1,000 1,000 9/20/2017 9/1/2027 3.190 33,000 33,000 3/21/2018 3/1/2028 3.534 — 9,000 9/25/2019 9/1/2029 2.377 7,500 7,500 3/25/2020 3/1/2030 2.172 6,000 6,000 9/22/2021 9/1/2031 1.398 11,500 11,500 3/23/2022 3/1/2032 3.209 43,500 12,000 9/21/2022 9/1/2032 4.533 17,500 — (2) (2) (2) 4,000 — (2) (2) (2) 3,000 — (2) (2) (2) 3,000 — (2) (2) (2) 5,000 — (2) (2) (2) 5,000 — (2) (2) (2) 7,000 — Total outstanding SBA debentures $ 153,000 $ 107,000 (1) The SBA has two scheduled pooling dates for debentures (in March and in September). Certain debentures funded during the reporting periods may not be pooled until the subsequent pooling date. (2) The Company issued $ 4,000 , $ 3,000 , $ 3,000 , $ 5,000 , $ 5,000 , and $ 7,000 in SBA debentures that will pool in March 2023. Until the pooling date, the debentures bear interest at a fixed rate interim interest rate of 4.855 %, 4.757 %, 5.123 %, 5.221 %, 5.341 %, and 5.243 %, respectively. Notes: On February 2, 2018, the Company closed the public offering of approximately $ 43,478 in aggregate principal amount of its 5.875 % notes due 2023, or the “2023 Notes.” On February 22, 2018, the underwriters exercised their option to purchase an additional $ 6,522 in aggregate principal of the 2023 Notes. The total net proceeds to the Company from the 2023 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $ 1,500 and offering expenses of $ 438 , were approximately $ 48,062 . On January 19, 2021, the Company redeemed $ 50,000 in aggregate principal amount of the issued and outstanding 2023 Notes, resulting in a realized loss on extinguishment of debt of approximately $ 794 . On February 8, 2019, the Company closed the public offering of approximately $ 60,000 in aggregate principal amount of its 6.000 % notes due 2024, or the “February 2024 Notes”. On February 19, 2019, the underwriters exercised their option to purchase an additional $ 9,000 in aggregate principal of the February 2024 Notes. The total net proceeds to the Company from the February 2024 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $ 2,070 and estimated offering expenses of $ 409 , were approximately $ 66,521 . On February 16, 2021, the Company redeemed $ 50,000 of the $ 69,000 aggregate principal amount on the February 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $ 1,081 . On November 2, 2021, the Company fully redeemed the remaining $ 19,000 in aggregate principal amount on the issued and outstanding February 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $ 313 . On October 16, 2019, the Company closed the public offering of approximately $ 55,000 in aggregate principal amount of its 5.375 % notes due 2024, or the “November 2024 Notes” (and collectively with the 2023 Notes and February 2024 Notes, the “Public Notes” and collectively with the February 2024 Notes, the "2024 Notes"). On October 23, 2019, the underwriters exercised their option to purchase an additional $ 8,250 in aggregate principal of the November 2024 Notes. The total net proceeds to the Company from the November 2024 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $ 1,898 and estimated offering expenses of $ 300 , were approximately $ 61,053 . On November 2, 2021, the Company fully redeemed $ 63,250 in aggregate principal amount on the issued and outstanding November 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $ 1,311 . On December 23, 2020, the Company closed the offering of approximately $ 125,000 in aggregate principal amount of its 4.75 % notes due 2026, or the “January 2026 Notes”. The total net proceeds to the Company from the January 2026 Notes after deducting underwriting discounts of approximately $ 2,500 and estimated offering expenses of $ 400 , were approximately $ 122,100 . The January 2026 Notes will mature on January 31, 2026 and bear interest at a rate of 4.75 %. The January 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the January 2026 Notes is payable on January 31 and July 31 of each year. The Company does not intend to list the January 2026 Notes on any securities exchange or automated dealer quotation system. On October 8, 2021, the Company closed the offering of approximately $ 125,000 in aggregate principal amount of its 3.50 % notes due 2026, or the “November 2026 Notes” (collectively with the Public Notes and the January 2026 Notes, the “Notes”). The total net proceeds to the Company from the November 2026 Notes , based on a public offering price of 99.996 % of par, after deducting underwriting discounts of approximately $ 2,505 and estimated offering expenses of $ 400 , were approximately $ 122,095 . The November 2026 Notes will mature on November 15, 2026 and bear interest at a rate of 3.50 %. The November 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the November 2026 Notes is payable on May 15 and November 15 of each year. The Company does not intend to list the November 2026 Notes on any securities exchange or automated dealer quotation system. Each of the Notes are unsecured obligations of the Company and rank pari passu with the Company’s future unsecured indebtedness; effectively subordinated to all of the Company’s existing and future secured indebtedness; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, financing vehicles, or similar facilities the Company may form in the future, with respect to claims on the assets of any such subsidiaries, financing vehicles, or similar facilities. Secured Borrowing As of December 31, 2022 and December 31, 2021, the carrying value of secured borrowings totaled $ 16,880 and $ 17,637 , respectively, and the fair value of the associated loans included in investments was $ 16,875 and $ 17,522 , respectively. These secured borrowings were created as a result of our completion of partial loan sales of certain unitranche loan assets that did not meet the definition of a “participating interest.” As a result, sale treatment was not permitted and these partial loan sales were treated as secured borrowings. The weighted average interest rate on our secured borrowings was approximately 7.8 % and 4.4 % as of December 31, 2022 and 2021, respectively. Senior Securities As of December 31, 2022, and December 31, 2021, the aggregate amount outstanding of the senior securities (including secured borrowings) issued by the Company was $ 266,880 and $ 267,637 , respectively, for which our asset coverage was 280.0 % and 282.2 % respectively. The SBA debentures are not subject to the asset coverage requirements of the 1940 Act as a result of exemptive relief granted to us by the SEC on June 30, 2014. The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness. Interest and Financing Expenses Interest and fees related to the Company’s debt for the years ended December 31, 2022, 2021 and 2020 that are included in interest and financing expenses on the consolidated statements of operations, were as follows: Year Ended December 31, 2022 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 3,747 $ 1,424 $ 1,078 $ 10,312 $ 16,561 Amortization of deferred financing costs 598 394 - 1,112 2,104 Total interest and financing expenses $ 4,345 $ 1,818 $ 1,078 $ 11,424 $ 18,665 Weighted average stated interest rate, period end 3.479 % N/A (1) 7.786 % 4.125 % 4.037 % Unused commitment fee rate, period end N/A 1.200 % (1) N/A N/A 1.200 % Year Ended December 31, 2021 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 3,810 $ 1,467 $ 427 $ 11,245 $ 16,949 Amortization of deferred financing costs 532 453 - 1,230 2,215 Total interest and financing expenses $ 4,342 $ 1,920 $ 427 $ 12,475 $ 19,164 Weighted average stated interest rate, period end 2.676 % N/A (1) 4.392 % 4.125 % 3.724 % Unused commitment fee rate, period end N/A 1.375 % (1) N/A N/A 1.375 % Year Ended December 31, 2020 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 5,140 $ 1,642 $ - $ 10,625 $ 17,407 Amortization of deferred financing costs 549 397 - 1,325 2,271 Total interest and financing expenses $ 5,689 $ 2,039 $ - $ 11,950 $ 19,678 Weighted average stated interest rate, period end 3.297 % N/A (1) N/A 5.342 % 4.680 % Unused commitment fee rate, period end N/A 1.375 % (1) N/A N/A 1.375 % (1) Reflects the effective rate as of year end Realized Losses on Extinguishment of Debt During the years ended December 31, 2022, 2021, and 2020 the Company prepaid $ 30,000 , $ 63,500 , and $ 16,500 of SBA debentures, respectively, which were scheduled to mature on dates ranging from 2025 to 2028 , 2025 to 2028 , and 2024 to 2028 , respectively. During the year ended December 31, 2021, the Company redeemed $ 50,000 and $ 132,250 of the issued and outstanding 2023 Notes and 2024 Notes, respectively. As a result of the prepayments, the Company recognized realized losses on extinguishment of debt of $ 251 , $ 4,263 , and $ 299 respectively, equal to the write-off of the related unamortized deferred financing costs, during the years ended December 31, 2022, 2021, and 2020. Deferred Financing Costs Deferred financing costs are amortized into interest and financing expenses on the consolidated statements of operations using the effective interest method, over the term of the respective financing instrument. Deferred financing costs related to the SBA debentures, the Credit Facility, and the Notes as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 SBA Credit SBA Credit debentures Facility Notes Total debentures Facility Notes Total SBA debenture commitment fees $ 3,000 $ - $ - $ 3,000 $ 2,500 $ - $ - $ 2,500 SBA debenture leverage fees 6,389 - - 6,389 4,538 - - 4,538 Credit Facility upfront fees - 4,417 - 4,417 - 3,238 - 3,238 Notes underwriting discounts - - 5,005 5,005 - - 5,005 5,005 Notes debt issue costs - - 685 685 - - 685 685 Total deferred financing costs 9,389 4,417 5,690 19,496 7,038 3,238 5,690 15,966 Less: accumulated amortization ( 4,865 ) ( 3,037 ) ( 1,818 ) ( 9,720 ) ( 4,016 ) ( 2,643 ) ( 706 ) ( 7,365 ) Unamortized deferred financing costs $ 4,524 $ 1,380 $ 3,872 $ 9,776 $ 3,022 $ 595 $ 4,984 $ 8,601 Unamortized deferred financing costs are presented as a direct offset to the SBA debentures, Credit Facility, and Notes liabilities on the consolidated statements of assets and liabilities. The following table summarizes the outstanding debt net of unamortized deferred financing costs as of December 31, 2022 and 2021: December 31, 2022 (1) December 31, 2021 SBA Credit SBA Credit debentures Facility Notes Total debentures Facility Notes Total Outstanding debt $ 153,000 $ - $ 250,000 $ 403,000 $ 107,000 $ - $ 250,000 $ 357,000 Less: unamortized deferred financing costs ( 4,524 ) ( 1,380 ) ( 3,872 ) ( 9,776 ) ( 3,022 ) ( 595 ) ( 4,984 ) ( 8,601 ) Debt, net of deferred financing costs $ 148,476 $ ( 1,380 ) $ 246,128 $ 393,224 $ 103,978 $ ( 595 ) $ 245,016 $ 348,399 (1) Total excludes $ 16,880 and $ 17,637 of Secured Borrowings as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the Company’s debt liabilities are scheduled to mature as follows (1) : SBA Credit Secured Year debentures Facility (2) Borrowings Notes Total 2023 $ — $ — $ — $ — $ — 2024 — — — — — 2025 1,500 — — — 1,500 2026 4,500 — 16,880 250,000 271,380 2027 34,000 — — — 34,000 Thereafter 113,000 — — — 113,000 Total $ 153,000 $ — $ 16,880 $ 250,000 $ 419,880 (1) The table above presents scheduled maturities of the Company’s outstanding debt liabilities as of a point in time pursuant to the terms of those instruments. The timing of actual repayments of outstanding debt liabilities may not ultimately correspond with the scheduled maturity dates depending on the terms of the underlying instruments and the potential for earlier prepayments. (2) The Company’s Credit Facility matures on August 17, 2027 . As of December 31, 2022 , there were no outstanding borrowings under the Credit Facility. Information about our senior securities is shown in the following table for the years indicated in the table, unless otherwise noted. Class and Year Total Amount Outstanding Exclusive of Treasury Securities (1) Asset Coverage per Unit (2)(5) Involuntary Liquidation Preference per Unit (3) Average Market Value per Unit (4) (dollars in thousands) SBA debentures 2013 $ 144,500 $ ** $ * $ N/A 2014 173,500 ** * N/A 2015 213,500 ** * N/A 2016 224,000 ** * N/A 2017 231,300 ** * N/A 2018 191,000 ** * N/A 2019 157,500 ** * N/A 2020 147,000 ** * N/A 2021 107,000 ** * N/A 2022 153,000 ** * N/A Credit Facility 2013 $ - $ N/A $ * $ N/A 2014 10,000 25,326 * N/A 2015 15,500 16,959 * N/A 2016 - N/A * N/A 2017 11,500 35,198 * N/A 2018 36,500 5,659 * N/A 2019 25,000 2,989 * N/A 2020 - 2,337 * N/A 2021 - 2,822 * N/A 2022 - 2,800 * N/A 2023 Notes (6) 2018 $ 50,000 $ 5,659 $ * $ 25.74 2019 50,000 2,989 * 25.81 2020 50,000 2,337 * 24.12 February 2024 Notes (6) 2019 $ 69,000 $ 2,989 $ * $ 25.97 2020 69,000 2,337 * 24.60 November 2024 Notes (6) 2019 $ 63,250 $ 2,989 $ * $ 25.75 2020 63,250 2,337 * 23.20 January 2026 Notes 2020 $ 125,000 $ 2,337 $ * $ N/A 2021 125,000 2,822 * N/A 2022 125,000 2,800 * N/A November 2026 Notes 2021 $ 125,000 $ 2,822 $ * $ N/A 2022 125,000 2,800 * N/A Secured Borrowings 2021 $ 17,637 $ 2,822 $ * $ N/A 2022 16,880 2,800 * N/A (1) Total amount of each class of senior securities outstanding at the end of the period presented. (2) Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $ 1,000 of indebtedness. (3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “*” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities. (4) Not applicable to SBA debentures, Credit Facility, January 2026 Notes, the November 2026 Notes and Secured Borrowings because these senior securities are not registered for public trading. The average market value per unit for the Public Notes is based on the average of the closing market price as of each quarter end during the fiscal year and the prior year end, as applicable, and is expressed per $ 1,000 of indebtedness. The Public Notes were issued in $ 25 increments. (5) We have excluded our SBA debentures from the asset coverage calculation as of December 31, 2012 pursuant to the exemptive relief granted by the SEC in March 2012 that permits us to exclude the senior securities issued by the Funds from the definition of senior securities in the asset coverage requirement applicable to us under the 1940 Act. (6) Our 2023 Notes were repaid in full on January 19, 2021. Our February 2024 Notes and our November 2024 Notes were repaid in full on November 2, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 7. Commitments and Contingencies Commitments: The Company had outstanding commitments to portfolio companies to fund various undrawn revolving loans, other debt investments and capital commitments totaling $ 16,915 and $ 8,170 as of December 31, 2022 and 2021 , respectively. Such outstanding commitments are summarized in the following table: December 31, 2022 December 31, 2021 Total Unfunded Total Unfunded Portfolio Company - Investment Commitment Commitment Commitment Commitment Acendre Midco, Inc. - Revolving Loan $ 1,000 $ 1,000 $ 1,000 $ 1,000 Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) - Revolving Loan 1,000 1,000 — — Combined Systems, Inc. - Revolving Loan 4,000 162 4,000 605 EBL, LLC (EbLens) - Common Equity (Units) 375 375 — — Elements Brands, LLC - Revolving Loan 1,500 — 3,000 838 Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) 300 300 — — Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) 3,000 3,000 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - First Lien Debt 2,489 2,489 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Senior Subordinated Debt 417 417 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Common Equity 70 70 — — Rhino Assembly Company, LLC - Delayed Draw Commitment — — 875 875 Safety Products Group, LLC - Common Equity (Units) — — 2,852 (1) 2,852 (1) Tedia Company, LLC - Revolving Loan 4,000 2,400 — — Tedia Company, LLC - Delayed Draw Term Loan 3,000 3,000 — — Western's Smokehouse, LLC - Delayed Draw Term Loan 3,500 2,702 — — Wonderware Holdings, LLC (dba CORE Business Technologies) - Delayed Draw Term Loan — — 2,000 2,000 Total $ 24,651 $ 16,915 $ 13,727 $ 8,170 (1) Portfolio company was no longer held at period end. The commitment represents the Company's maximum potential liability related to certain guaranteed obligations stemming from the prior sale of the portfolio company's underlying operations. Additional detail for each of the commitments above is provided in the Company’s consolidated schedules of investments. The commitments are generally subject to the borrowers meeting certain criteria such as compliance with financial and non-financial covenants, which may limit such borrower's ability to draw on a revolving loan or delayed draw loan. Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide indemnifications under certain circumstances. In addition, in connection with the disposition of an investment in a portfolio company, the Company may be required to make representations about the business and financial affairs of such portfolio company typical of those made in connection with the sale of a business. The Company may also be required to indemnify the purchasers of such investment to the extent that any such representations are inaccurate. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects the risk of future obligation under these indemnifications to be remote. Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While the outcome of any such legal proceedings cannot be predicted with certainty, the Company does not believe any such legal proceedings will have a material adverse effect on the Company’s consolidated financial statements. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Common Stock | Note 8. Common Stock Public Offerings of Common Stock The following table summarizes the cumulative total shares issued, net proceeds received, and weighted average offering price in public offerings of the Company’s common stock since the IPO in June 2011. Period Cumulative Number of Shares Cumulative Gross Proceeds Cumulative Underwriting Fees and Commissions and Offering Costs (1) Weighted Average Offering Price Cumulative since IPO 14,388,414 $ 236,597 $ 8,989 $ 16.44 (1) Fidus Investment Advisors, LLC agreed to bear a cumulative of $ 1,925 of underwriting fees and commissions and offering costs associated with these offerings (such amounts are not included in the number reported above). All such payments made by Fidus Investment Advisors, LLC are not subject to reimbursement by the Company. Equity ATM Program On November 10, 2022, the Company established the at-the-market program (the “ATM Program”) , pursuant to which the Company may offer and sell, from time to time through Raymond James & Associates, Inc. and B. Riley Securities, Inc., each as sales agents, shares of the Company’s common stock having an aggregate offering price of up to $ 50,000 . No shares were issued under the ATM program for years ended December 31, 2021 and 2020. The gross proceeds raised, the related sales agent commission and the offering expenses, the net proceeds raised, and the average price at which shares were issued under the ATM Program for the year ended December 31, 2022 are as follows: Sales Agent Gross Commissions Weighted- Number of Proceeds and Offering Average Year Ended December 31, 2022: Shares Sold Received Costs Price January 1, 2022 through March 31, 2022 - $ - $ - $ - April 1, 2022 through June 30, 2022 - - - July 1, 2022 through September 30, 2022 - - - October 1, 2022 through December 31, 2022 (1) 290,388 5,900 89 20.32 Total 290,388 $ 5,900 $ 89 $ 20.32 (1) Net proceeds of $ 5,811 were received for the period October 1, 2022 through December 31, 2022. As of December 31, 2022, the Company has $ 44,100 available under the ATM Program. No shares were issued during the years ended December 31, 2021 and 2020. Stock Repurchase Program As described in Note 2, the Company has a Stock Repurchase Program under which the Company may acquire up to $ 5,000 of its outstanding common stock. The Company did no t make any repurchases of common stock during the years ended December 31, 2022 and 2021 . During the year ended December 31, 2020, the Company repurchased 25,719 shares of common stock on the open market for $ 268 . The Company’s NAV per share increased by approximately $ 0.01 for the year ended December 31, 2020 as a result of the share repurchases. The following table summarizes the Company’s share repurchases under the Stock Repurchase Program for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, Repurchases of Common Stock 2022 2021 2020 Number of shares repurchased — — 25,719 Cost of shares repurchased, including commissions $ — $ — $ 268 Weighted average price per share $ — $ — $ 10.37 Weighted average discount to net asset value at quarter end prior to repurchases N/A N/A 38.5 % Refer to Note 9 for additional information regarding the issuance of shares under the DRIP. The Compan y had 24,727,788 an d 24,437,400 shares of common stock outstanding as of December 31, 2022 and 2021 , respectively. |
Dividends and Distributions
Dividends and Distributions | 12 Months Ended |
Dec. 31, 2022 | |
Dividends and Distributions [Abstract] | |
Dividends and Distributions | Note 9. Dividends and Distributions The Company’s dividends and distributions are recorded on the record date. The following table summarizes the dividends paid during the last three fiscal years. DRIP DRIP Date Record Payment Amount Total Cash Shares DRIP Share Declared Date Date Per Share Distribution Distribution Value Shares Issue Price Year Ended December 31, 2020: 2/14/2020 3/13/2020 3/27/2020 $ 0.39 $ 9,537 $ 9,537 $ — (3) — (3) — 4/29/2020 6/12/2020 6/26/2020 0.30 7,331 7,331 — (3) — (3) — 8/03/2020 9/11/2020 9/25/2020 0.30 7,331 7,331 — (3) — (3) — 10/26/2020 12/4/2020 12/18/2020 0.30 7,331 7,331 — (3) — (3) — 10/26/2020 (2) 12/4/2020 12/18/2020 0.04 978 978 — (3) — (3) — $ 1.33 $ 32,508 $ 32,508 $ — — Year Ended December 31, 2021: 2/09/2021 3/12/2021 3/26/2021 $ 0.31 $ 7,575 $ 7,575 $ — (3) — (3) — 2/09/2021 (2) 3/12/2021 3/26/2021 0.07 1,711 1,711 — (3) — (3) — 5/03/2021 6/14/2021 6/28/2021 0.31 7,576 7,576 — (3) — (3) — 5/03/2021 (2) 6/14/2021 6/28/2021 0.08 1,955 1,955 — (3) — (3) — 8/02/2021 9/14/2021 9/28/2021 0.32 7,820 7,820 — (3) — (3) — 8/02/2021 (2) 9/14/2021 9/28/2021 0.06 1,466 1,466 — (3) — (3) — 8/02/2021 (1) 9/14/2021 9/28/2021 0.04 977 977 — (3) — (3) — 11/01/2021 12/3/2021 12/17/2021 0.32 7,820 7,820 — (3) — (3) — 11/01/2021 (2) 12/3/2021 12/17/2021 0.04 978 978 — (3) — (3) — 11/01/2021 (1) 12/3/2021 12/17/2021 0.05 1,222 1,222 — (3) — (3) — $ 1.60 $ 39,100 $ 39,100 $ — — Year Ended December 31, 2022: 2/15/2022 3/11/2022 3/25/2022 $ 0.36 $ 8,797 $ 8,797 $ — (3) — (3) — 2/15/2022 (2) 3/11/2022 3/25/2022 0.17 4,154 4,154 — (3) — (3) — 5/02/2022 6/10/2022 6/24/2022 0.36 8,797 8,797 — (3) — (3) — 5/02/2022 (2) 6/10/2022 6/24/2022 0.07 1,712 1,712 — (3) — (3) — 8/01/2022 9/9/2022 9/23/2022 0.36 8,797 8,797 — (3) — (3) — 8/01/2022 (2) 9/9/2022 9/23/2022 0.07 1,711 1,711 — (3) — (3) — 8/01/2022 12/2/2022 12/16/2022 0.36 8,902 8,902 — (3) — (3) — 8/01/2022 (2) 12/2/2022 12/16/2022 0.07 1,731 1,731 — (3) — (3) — 11/03/2022 (2) 12/2/2022 12/16/2022 0.08 1,978 1,978 — (3) — (3) — 11/03/2022 (1) 12/2/2022 12/16/2022 0.10 2,473 2,473 — (3) — (3) — $ 2.00 $ 49,052 $ 49,052 $ — — (1) Special dividend (2) Supplemental dividend (3) During the years ended December 31, 2022, 2021, and 2020, the Company directed the DRIP plan administrator to repurchase shares on the open market in order to satisfy the DRIP obligation to deliver shares of common stock in lieu of issuing new shares. Accordingly, the Company purchased and reissued shares to satisfy the DRIP obligation as follows: Number of Shares Average Purchased Price Paid Total Fiscal Year Ended December 31, 2020: and Reissued Per Share Amount Paid January 1, 2020 through March 31, 2020 31,586 $ 7.58 $ 239 April 1, 2020 through June 30, 2020 21,904 9.04 198 July 1, 2020 through September 30, 2020 28,871 10.18 294 October 1, 2020 through December 31, 2020 20,222 12.91 261 Total 102,583 $ 9.67 $ 992 Number of Shares Average Purchased Price Paid Total Year Ended December 31, 2021: and Reissued Per Share Amount Paid January 1, 2021 through March 31, 2021 15,562 $ 15.62 $ 243 April 1, 2021 through June 30, 2021 17,042 17.20 293 July 1, 2021 through September 30, 2021 18,201 17.82 324 October 1, 2021 through December 31, 2021 18,283 17.42 318 Total 69,088 $ 17.05 $ 1,178 Number of Shares Average Purchased Price Paid Total Year Ended December 31, 2022: and Reissued Per Share Amount Paid January 1, 2022 through March 31, 2022 20,380 $ 20.51 $ 418 April 1, 2022 through June 30, 2022 20,233 17.89 362 July 1, 2022 through September 30, 2022 21,114 17.08 360 October 1, 2022 through December 31, 2022 23,026 18.99 437 Total 84,753 $ 18.61 $ 1,577 |
Financial Highlights
Financial Highlights | 12 Months Ended |
Dec. 31, 2022 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 10. Financial Highlights The following is a schedule of financial highlights for the years ended December 31, 2022 to 2013: Years Ended December 31, 2022 2021 2020 2019 2018 Per share data: Net asset value at beginning of period $ 19.96 $ 16.81 $ 16.85 $ 16.47 $ 16.05 Net investment income (1) 1.90 1.03 1.62 1.31 1.43 Net realized gain (loss) on investments, net of tax (provision) (1) 2.61 2.19 ( 0.06 ) ( 0.05 ) ( 0.45 ) Taxes paid on deemed distributions (1) ( 0.35 ) - - - - Net unrealized appreciation (depreciation) on investments (1) ( 2.69 ) 1.70 ( 0.27 ) 0.74 1.05 Realized losses on extinguishment of debt (1) ( 0.01 ) ( 0.17 ) ( 0.01 ) ( 0.02 ) ( 0.01 ) Total increase from investment operations (1) 1.46 4.75 1.28 1.98 2.02 Accretive (dilutive) effect of share issuances and repurchases 0.02 - 0.01 - 0.01 Dividends declared to stockholders ( 1.19 ) ( 1.60 ) ( 1.33 ) ( 1.60 ) ( 1.60 ) Distributions from capital gains ( 0.81 ) - - - - Other (2) ( 0.01 ) - - - ( 0.01 ) Net asset value at end of period $ 19.43 $ 19.96 $ 16.81 $ 16.85 $ 16.47 Market value at end of period $ 19.03 $ 17.98 $ 13.10 $ 14.84 $ 11.69 Shares outstanding at end of period 24,727,788 24,437,400 24,437,400 24,463,119 24,463,119 Weighted average shares outstanding during the period 24,468,172 24,437,400 24,442,431 24,463,119 24,471,730 Net assets at end of period $ 480,343 $ 487,764 $ 410,760 $ 412,310 $ 402,985 Average net assets (6) $ 482,594 $ 437,690 $ 392,866 $ 404,284 $ 398,440 Ratios to average net assets: Total expenses (4)(10) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Net investment income (5) 9.6 % 5.7 % 10.1 % 7.9 % 8.8 % Total return based on market value (3) 17.7 % 53.9 % 1.0 % 37.6 % ( 15.8 %) Total return based on net asset value (8) 7.3 % 28.3 % 7.6 % 12.0 % 12.6 % Portfolio turnover ratio 23.9 % 47.7 % 25.8 % 17.2 % 29.5 % Supplemental Data: Average debt outstanding (7) $ 397,244 $ 380,997 $ 385,350 $ 319,050 $ 271,560 Average debt per share (1) $ 16.24 $ 15.59 $ 15.77 $ 13.04 $ 11.10 Years Ended December 31, 2017 2016 2015 2014 2013 Per share data: Net asset value at beginning of period $ 15.76 $ 15.17 $ 15.16 $ 15.35 $ 15.32 Net investment income (1) 1.44 1.45 1.64 1.62 1.43 Net realized gain (loss) on investments, net of tax (provision) (1) 0.67 ( 0.77 ) 0.58 ( 1.18 ) 2.22 Net unrealized appreciation (depreciation) on investments (1) ( 0.23 ) 1.59 ( 0.62 ) 0.92 ( 1.64 ) Realized losses on extinguishment of debt (1) ( 0.01 ) - - - - Total increase from investment operations (1) 1.87 2.27 1.60 1.36 2.01 Accretive (dilutive) effect of share issuances and repurchases 0.02 ( 0.05 ) 0.02 0.19 0.18 Dividends to stockholders ( 1.60 ) ( 1.60 ) ( 1.60 ) ( 0.97 ) ( 1.21 ) Distributions from capital gains - - - ( 0.75 ) ( 0.73 ) Taxes paid on deemed distributions - - - - ( 0.21 ) Other (2) - ( 0.03 ) ( 0.01 ) ( 0.02 ) ( 0.01 ) Net asset value at end of period $ 16.05 $ 15.76 $ 15.17 $ 15.16 $ 15.35 Market value at end of period $ 15.18 $ 15.73 $ 13.69 $ 14.85 $ 21.74 Shares outstanding at end of period 24,507,940 22,446,076 16,300,732 16,051,037 13,755,232 Weighted average shares outstanding during the period 23,527,188 18,283,715 16,201,449 14,346,438 13,524,368 Net assets at end of period $ 393,273 $ 353,785 $ 247,362 $ 243,263 $ 211,125 Average net assets (6) $ 376,292 $ 289,453 $ 245,706 $ 222,737 $ 209,136 Ratios to average net assets: Total expenses (4)(10) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Net investment income (5) 9.0 % 9.2 % 10.8 % 10.5 % 9.2 % Total return based on market value (3) 3.2 % 23.8 % 2.4 % ( 23.8 %) 44.0 % Total return based on net asset value (8) 11.9 % 15.0 % 10.6 % 8.9 % 13.1 % Portfolio turnover ratio 29.5 % 29.3 % 22.5 % 18.9 % 44.9 % Supplemental Data: Average debt outstanding (7) $ 219,920 $ 221,200 $ 199,340 $ 152,700 $ 144,500 Average debt per share (1) $ 9.35 $ 12.10 $ 12.30 $ 10.64 $ 10.68 ________________________________________________________ (1) Weighted average per share data. (2) Represents the impact of different share amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date, or other rounding. (3) Total return based on market value equals the change in the market value of the Company’s common stock per share during the period divided by the market value per share at the beginning of the period, and assumes reinvestment of dividends at prices obtained by our dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor. (4) The total expenses to average net assets ratio is calculated using i) the "total expenses, net of income incentive fee and base management fee waiver", ii) the "income tax (provision) benefit", iii) the "income tax (provision) benefit from realized gains on investments, and iv) income tax (provision) from deemed distribution of long term capital gains" captions as presented on the consolidated statements of operations. (5) The net investment income to average net assets ratio is calculated using the net investment income caption as presented on the consolidated statements of operations, which includes incentive fee. (6) Average net assets is calculated as the average of the net asset balances as of each quarter end during the fiscal year and the prior year end. (7) Average debt outstanding is calculated as the average of the outstanding debt balances, including secured borrowings, as of each quarter end during the fiscal year and the prior year end. (8) Total return based on net asset value per share equals the change in net asset value per share during the period, plus dividends paid per share during the period, less other non-operating changes during the period, and divided by beginning net asset value per share for the period. Non-operating changes include any items that affect net asset value per share other than increase from investment operations, such as the effects of share issuances and repurchases and other miscellaneous items. (9) There was no incentive fee waived for the years ended December 31, 2022, and 2021 , The ratio of waived incentive fees to average net assets was ( 0.11 )% for the year ended December 31, 2020. There was no incentive fee waived for the years ended December 31, 2 0 19 through 2013. (10) The following is a schedule of supplemental expense ratios to average net assets: Years Ended December 31, Ratio to average net assets: 2022 2021 2020 2019 2018 Expenses other than incentive fee (4) 10.4 % 8.9 % 10.1 % 8.5 % 7.6 % Incentive fee (4)(9) 1.6 % 6.5 % 1.7 % 2.7 % 3.1 % Total expenses (4) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Years Ended December 31, Ratio to average net assets: 2017 2016 2015 2014 2013 Expenses other than incentive fee (4) 6.9 % 8.1 % 8.7 % 8.1 % 7.8 % Incentive fee, net of incentive fee waiver (4)(9) 2.9 % 3.6 % 2.6 % 2.2 % 3.2 % Total expenses (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Years Ended December 31, Ratio to average net assets: 2022 2021 2020 2019 2018 Total expenses, before base management fee waiver (4) 12.1 % 15.4 % 11.8 % 11.2 % 10.7 % Base management fee waiver (4)(9) ( 0.1 %) 0.0 % 0.0 % 0.0 % 0.0 % Total expenses (4) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Years Ended December 31, Ratio to average net assets: 2017 2016 2015 2014 2013 Total expenses, before base management fee waiver (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Base management fee waiver (4)(9) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Total expenses (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Note 11. Selected Quarterly Financial Data (unaudited) March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Total investment income $ 20,518 $ 21,153 $ 24,992 $ 27,474 Net investment income 10,338 11,008 12,719 12,484 Net increase in net assets from operations 11,690 7,981 11,428 4,723 Net investment income per share (1) $ 0.42 $ 0.45 $ 0.52 $ 0.51 Net increase in net assets from operations per share (1) $ 0.48 $ 0.33 $ 0.47 $ 0.19 Net asset value per share at end of period $ 19.91 $ 19.80 $ 19.41 $ 19.43 March 31, June 30, September 30, December 31, 2021 2021 2021 2021 Total investment income $ 23,290 $ 21,826 $ 21,229 $ 24,101 Net investment income 11,081 6,473 5,118 2,448 Net increase in net assets from operations 11,538 25,886 28,442 50,238 Net investment income per share (1) $ 0.45 $ 0.26 $ 0.21 $ 0.10 Net increase in net assets from operations per share (1) $ 0.47 $ 1.06 $ 1.16 $ 2.06 Net asset value per share at end of period $ 16.90 $ 17.57 $ 18.31 $ 19.96 March 31, June 30, September 30, December 31, 2020 2020 2020 2020 Total investment income $ 19,983 $ 20,433 $ 21,077 $ 23,630 Net investment income 17,417 9,291 6,902 6,038 Net increase in net assets from operations ( 26,971 ) 7,973 20,707 29,517 Net investment income per share (1) $ 0.71 $ 0.38 $ 0.28 $ 0.25 Net increase in net assets from operations per share (1) $ ( 1.10 ) $ 0.33 $ 0.85 $ 1.20 Net asset value per share at end of period $ 15.37 $ 15.39 $ 15.94 $ 16.81 (1) Per share amounts are calculated using the weighted average shares outstanding for the period. Due to rounding, the sum of the quarters may not equal the annual calculation on a per share basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The Company has elected to be treated for U.S. federal income tax purposes as a RIC, whereby the Company generally will not be subject to U.S. federal income tax at corporate rates on any net ordinary income or capital gains that the Company timely distributes to its stockholders as dividends. The Company must generally distribute at least 90 % of its investment company taxable income to maintain its RIC status. As part of maintaining RIC status, undistributed taxable income pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared prior to the due date for filing of the federal income tax return (including extensions) for the prior year, the 15th day of the 10th month following the prior tax year. Such taxable income carried forward to the next tax year will be subject to excise tax equal to 4 % of the amount by which (i) 98 % of the Company’s ordinary income recognized during a calendar year and (ii) 98.2 % of the Company’s long term capital gains, as defined by Subchapter M of the Code, recognized for the one year period ending October 31st of a calendar year exceeds the respective distributions for the year. Excise tax is included as a component of income tax provision and income tax (provision) on realized gains on investments, depending on the character of the underlying taxable income (ordinary or capital gains), on the consolidated statements of operations. The Taxable Subsidiaries hold certain portfolio investments for the Company. The Taxable Subsidiaries are consolidated for financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in the Company’s consolidated financial statements. The principal purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies which are “pass through” entities for U.S. federal income tax purposes in order to comply with the “source-of-income” requirements contained in the RIC tax provisions of Subchapter M of the Code. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary is subject to U.S. federal corporate income tax on its taxable income. The Taxable Subsidiaries are taxed as corporations and do not intend to qualify as a RIC pursuant to Subchapter M of the Code. As corporations, the Taxable Subsidiaries are obligated to pay U.S. federal, state and local income tax on taxable income, as applicable. Income earned and gains realized on the investment or investments held by the Taxable Subsidiary are taxable to such subsidiary. A tax provision for ordinary income, if any, is shown as income tax provision in the Consolidated Statements of Operations of the Company. A tax provision for realized and unrealized gains on investments is included as a reduction of realized and unrealized gains (losses) on investments in the Consolidated Statements of Operations of the Company. For the years ended December 31, 2022, 2021, and 2020 , the Taxable Subsidiaries were subject to a 21 % U.S. federal income tax rate. The Company classifies interest and penalties, if any, as a component of income tax provision on the consolidated statements of operations. Income tax expense at the Taxable Subsidiaries is included as a component of the income tax provisions, depending on the character of the underlying taxable income (ordinary or capital gains), on the consolidated statements of operations. For the years ended December 31, 2022, 2021, and 2020, income tax expense at the Taxable Subsidiaries was $ 1,809 , $ 1,827 , and $ 628 , respectively. The Company and the Taxable Subsidiaries are also subject to various state and local income taxes. 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. 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 The Company estimates that it generated undistributed ordinary taxable income of approximately $ 28,818 , or $ 1.18 per share, and undistributed long term capital gains of $ 11,225 , or $ 0.45 per share, during 2022 that will be carried forward and distributed in 2023. Ordinary dividend distributions from a RIC do not qualify for the preferential U.S. federal income tax rate on dividend income from certain domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The Company may distribute a portion of its realized net long term capital gains in excess of realized net short term capital losses to its stockholders, but may also decide to retain a portion, or all, of its net capital gains and elect to make a “deemed distribution” to its stockholders. For the year ended December 31, 2022 , the Company elected to designate retained net capital gains of $ 40,801 , or approximately $ 1.65 per share, as a deemed distribution, which was allocated to stockholders of record as of December 31, 2022 . The Company incurred U.S. federal income taxes of $ 8,568 , or approximately $ 0.35 per share, on behalf of stockholders related to this deemed distribution. Such U.S. federal income taxes were paid in January 2023. For the years ended December 31, 2021 and 2020, the Company did not elect to designate retained net capital gains as a deemed distribution. 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. 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. Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These permanent book-to-tax differences are reclassified on the consolidated statements of changes in net assets to reflect their tax character but have no impact on total net assets. 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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events On February 15, 2023 , the Board declared a regular quarterly dividend of $ 0.41 per share, a supplemental dividend of $ 0.15 per share, and a special dividend of $ 0.10 per share payable March 29, 2023 , to stockholders of record as of March 22, 2023 . On February 23, 2023 , the Company invested $ 11,000 in first lien debt and common equity of USG AS Holdings, LLC, a leading provider of water asset management services for small and medium public water utilities in North America. On February 27, 2023, the Company issued an additional $ 4,000 in SBA debentures, which will bear interest at a fixed interim interest rate of 5.344 % until the pooling date in March 2023. On February 28, 2023 , the Company invested $ 10,400 in first lien debt, subordinated debt, and common equity of CTM Group, Inc., a leading provider of turn-key entertainment solutions across tourist attractions, leisure venues, and high traffic retail sites. For the period from January 1, 2023, to February 28, 2023, the Company sold a total of 114,904 shares of our common stock under the ATM Program for gross proceeds of approximately $ 2,395 and net proceeds of approximately $ 2,359 , after deducting commissions to the sales agents on shares sold and offering expenses. On March 1, 2023, the Company invested $ 18,750 in first lien debt and common equity of QED Technologies International, Inc., a leading provider of precision optics finishing and inspection equipment, products, and services for the semiconductor, military, space, R&D, imaging, and other industries. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) pursuant to the requirements for reporting on Form 10-K, Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. During fiscal year ended December 31, 2022 , the Company elected to change the manner in which it presents residual investments in portfolio companies that have sold their operations and are in the process of winding down. These investments similar to escrow receivables are now included in prepaid expenses and other assets whereas previously they were included as a component of investments, at fair value, on the consolidated statements of assets and liabilities until the security was legally extinguished or relinquished. There is no change in historical net increase in net assets resulting from operations due to this change in presentation. |
Use of Estimates | Use of estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation | Consolidation: Pursuant to Article 6 of Regulation S-X and ASC 946, the Company will generally not consolidate its investments in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. As a result, the consolidated financial statements of the Company include only the accounts of the Company and its wholly-owned subsidiaries, including the Funds. All significant intercompany balances and transactions have been eliminated. |
Investment Risks | Investment risks: The Company’s investments are subject to a variety of risks. These risks may include, but are not limited to the following: • Market risk - In contrast to investment-grade bonds (the market prices of which change primarily as a reaction to changes in interest rates), the market prices of high-yield bonds (which are also affected by changes in interest rates) are influenced much more by credit factors and financial results of the issuer as well as general economic factors that influence the financial markets as a whole. The portfolio companies in which the Company invests may be unseasoned, unprofitable and/or have little established operating history or earnings. These companies may also lack technical, marketing, financial, and other resources or may be dependent upon the success of one product or service, a unique distribution channel, or the effectiveness of a manager or management team, as compared to larger, more established entities. The failure of a single product, service or distribution channel, or the loss or the ineffectiveness of a key executive or executives within the management team may have a materially adverse impact on such companies. Furthermore, these companies may be more vulnerable to competition and to overall economic conditions than larger, more established entities. • Credit risk - Credit risk represents the risk that the Company would incur if the counterparties failed to perform pursuant to the terms of their agreements with the Company. Issues of high-yield debt securities in which the Company invests are more likely to default on interest or principal than are issues of investment-grade securities. • Liquidity risk - Liquidity risk represents the possibility that the Company may not be able to sell its investments quickly or at a reasonable price (given the lack of an established market). • Interest rate risk - Interest rate risk represents the likelihood that a change in interest rates could have an adverse impact on the fair value of an interest-bearing financial instrument. • Prepayment risk - Certain of the Company’s debt investments allow for prepayment of principal without penalty. Downward changes in market interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the debt investments and making the instrument less likely to be an income producing instrument through the stated maturity date. • Off-Balance sheet risk - Some of the Company’s financial instruments contain off-balance sheet risk. Generally, these financial instruments represent future commitments to purchase other financial instruments at defined terms at defined future dates. See Note 7 for further details. |
Fair Value of Financial Instruments | Fair value of financial instruments: The Company measures and discloses fair value with respect to substantially all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 to the consolidated financial statements for further discussion regarding the fair value measurements and hierarchy. |
Investment Classification | Investment classification: The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in those companies where the Company owns more than 25 % of the voting securities of such company or has rights to maintain greater than 50 % of the board representation. Under the 1940 Act, “Affiliate Investments” are defined as investments in those companies where the Company owns between 5 % and 25 % of the voting securities of such company. “Non-Control/Non-Affiliate Investments” are those that neither qualify as Control Investments nor Affiliate Investments. |
Segments | Segments: In accordance with ASC Topic 280 — Segment Reporting , the Company has determined that it has a single reporting segment and operating unit structure. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company places its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits. The Company does not believe its cash balances are exposed to any significant credit risk. |
Deferred Financing Costs | Deferred financing costs: Deferred financing costs consist of fees and expenses paid in connection with the SBA debentures, the Credit Facility and the Notes (as defined in Note 6). Deferred financing costs are capitalized and amortized to interest and financing expenses over the term of the debt agreement using the effective interest method. Unamortized deferred financing costs are presented as an offset to the corresponding debt liabilities on the consolidated statements of assets and liabilities. |
Realized Losses on Extinguishment of Debt | Realized losses on extinguishment of debt: Upon the repayment of debt obligations which are deemed to be extinguishments, the difference between the principal amount due at maturity, adjusted for any unamortized deferred financing costs, is recognized as a loss (i.e., the unamortized deferred financing costs are recognized as a loss upon extinguishment of the underlying debt obligation). |
Deferred Offering Costs | Deferred offering costs: Deferred offering costs include registration expenses related to the shelf registration statement filing pursuant to which the Company may offer its securities, from time to time, in one or more offerings. These expenses primarily consist of U.S. Securities and Exchange Commission (“SEC”) registration fees, legal fees and accounting fees incurred. These expenses are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities. Upon the completion of an equity offering or a debt offering, the deferred expenses are charged to additional paid-in capital or deferred financing costs, respectively. If no offering is completed prior to the expiration of the registration statement, the deferred costs are charged to expense. |
Realized Gains or Losses and Unrealized Appreciation or Depreciation on Investments | Realized gains or losses and unrealized appreciation or depreciation on investments: Realized gains or losses on investments are recorded upon the sale or disposition of a portfolio investment and are calculated as the difference between the net proceeds from the sale or disposition and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation on the consolidated statements of operations includes changes in the fair value of investments from the prior period, as determined in good faith by the Company’s board of directors (the “Board”) through the application of the Company’s valuation policy, as well as reclassifications of any prior period unrealized appreciation or depreciation on exited investments to realized gains or losses on investments. |
Interest and Dividend Income | Interest and dividend income: Interest and dividend income are recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest is accrued daily based on the outstanding principal amount and the contractual terms of the debt. Dividend income is recorded as dividends are declared or at the point an obligation exists for the portfolio company to make a distribution, and is generally recognized when received. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital. Distributions of earnings are included in dividend income while a return of capital is recorded as a reduction in the cost basis of the investment. Estimates are adjusted as necessary after the relevant tax forms are received from the portfolio company. |
PIK Income | PIK income: Certain of the Company’s investments contain a payment-in-kind (“PIK”) income provision. The PIK income, computed at the contractual rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash, and recorded as interest or dividend income, as applicable, on the consolidated statements of operations. Generally, PIK can be paid-in-kind or all in cash. The Company stops accruing PIK income when there is reasonable doubt that PIK income will be collected. PIK income that has been contractually capitalized to the principal balance of the investment prior to the non-accrual designation date is not reserved against interest or dividend income, but rather is assessed through the valuation of the investment (with corresponding adjustments to unrealized depreciation, as applicable). PIK income is included in the Company’s taxable income and, therefore, affects the amount the Company is required to pay to shareholders in the form of dividends in order to maintain the Company’s tax treatment as a RIC, even though the Company has not yet collected the cash. |
Non-accrual | Non-accrual: Debt investments or preferred equity investments (for which the Company is accruing PIK dividends) are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on full non-accrual status. Interest and dividend payments received on non-accrual investments may be recognized as interest or dividend income or may be applied to the investment principal balance based on management’s judgment. Non-accrual investments are restored to accrual status when past due principal, interest or dividends are paid and, in management’s judgment, payments are likely to remain current. |
Origination and Closing Fees | Origination and closing fees: The Company also typically receives debt investment origination or closing fees in connection with such investments. Such debt investment origination and closing fees are capitalized as unearned income and offset against investment cost basis on the consolidated statements of assets and liabilities and accreted into interest income over the life of the investment. Upon the prepayment of a debt investment, any unaccreted debt investment origination and closing fees are accelerated into interest income. |
Warrants | Warrants : In connection with the Company’s debt investments, the Company will sometimes receive warrants or other equity-related securities from the borrower (“Warrants”). The Company determines the cost basis of Warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and Warrants received. Any resulting difference between the face amount of the debt and its recorded fair value resulting from the assignment of value to the Warrants is treated as original issue discount (“OID”), and accreted into interest income using the effective interest method over the term of the debt investment. Upon the prepayment of a debt investment, any unaccreted OID is accelerated into interest income. |
Fee Income | Fee income : Transaction fees earned in connection with the Company’s investments are recognized as fee income and are generally non-recurring. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. The Company recognizes income from fees for providing such structuring and advisory services when the services are rendered or the transactions are completed. Upon the prepayment of a debt investment, any prepayment penalties are recorded as fee income when earned. |
Partial Loan and Equity Sales | Partial loan and equity sales: The Company follows the guidance in ASC 860, Transfers and Servicing, when accounting for loan (debt investment) participations, equity assignments and other partial loan sales. Such guidance requires a participation, assignment or other partial loan or equity sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations, assignments or other partial loan or equity sales which do not meet the definition of a participating interest should remain on the Company’s consolidated statements of assets and liabilities and the proceeds recorded as a secured borrowing until the definition is met. For these partial loan sales, the interest earned on the entire loan balance is recorded within “interest income” and the interest earned by the buyer in the partial loan sale is recorded within “interest and financing expenses” in the accompanying consolidated statements of operations. |
Income Taxes | Income taxes: The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to stockholders. To maintain the tax treatment of a RIC, the Company generally is required to timely distribute to its stockholders at least 90 % of “investment company taxable income,” as defined by Subchapter M of the Code, each year. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year; however, the Company will pay a 4 % excise tax if it does not distribute at least 98 % of the current year’s ordinary taxable income. Any such carryover taxable income must be distributed through a dividend declared prior to the later of the date on which the final tax return related to the year in which the Company generated such taxable income is filed or the 15 th day of the 10 th month following the close of such taxable year. In addition, the Company will be subject to U.S. federal excise tax if it does not distribute at least 98.2 % of its net capital gains realized, computed for any one year period ending October 31. In the future, the Funds may be limited by provisions of the SBIC Act and SBA regulations governing SBICs from making certain distributions to FIC that may be necessary to enable FIC to make the minimum distributions required to maintain the tax treatment of a RIC. The Company has certain wholly-owned subsidiaries (the “Taxable Subsidiaries”) that have elected to be treated as corporations for U.S. federal income tax purposes and are thus subject to U.S. federal income tax at corporate rates, each of which generally holds one or more of the Company’s portfolio investments listed on the consolidated schedules of investments. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that the Company’s consolidated financial statements reflect the Company’s investment in the portfolio company investments owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S. federal income tax purposes (such as entities organized as limited liability companies (“LLCs”) or other forms of pass through entities) while complying with the “source-of-income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary will be subject to U.S. federal corporate income tax on its taxable income. Any such income or expense is reflected in the consolidated statements of operations. U.S. federal income tax regulations differ from GAAP, and as a result, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized under GAAP. Differences may be permanent or temporary. Permanent differences may arise as a result of, among other items, a difference in the book and tax basis of certain assets and nondeductible U.S. federal income taxes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. ASC Topic 740 — Accounting for Uncertainty in Income Taxes (“ASC Topic 740”) provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be respected by the applicable tax authorities. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits included in the income tax provision, if any. There were no material uncertain income tax positions at December 31, 2022 and 2021 . The Company’s tax returns are generally subject to examination by U.S. federal and most state tax authorities for a period of three years from the date the respective returns are filed, and, accordingly, the Company’s 2019 through 2021 tax years remain subject to examination. |
Dividends to Stockholders | Dividends to stockholders: Dividends to stockholders are recorded on the record date with respect to such distributions. The amount, if any, to be distributed to stockholders, is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, may be distributed at least annually, although the Company may decide to retain such capital gains for investment. The determination of the tax attributes for the Company’s distributions is made annually, and is based upon the Company’s taxable income and distributions paid to its stockholders for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax characterization of the Company’s distributions generally includes both ordinary income and capital gains but may also include qualified dividends or return of capital. The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator before any associated brokerage or other costs. See Note 9 to the consolidated financial statements regarding dividend declarations and distributions. |
Earnings and Net Asset Value per Share | Earnings and net asset value per share: The earnings per share calculations for the years ended December 31, 2022, 2021 and 2020 , are computed utilizing the weighted average shares outstanding for the period. Net asset value per share is calculated using the number of shares outstanding as of the end of the period. |
Stock Repurchase Program | Stock Repurchase Program: The Company has an open market stock repurchase program (the “Stock Repurchase Program”) under which the Company may acquire up to $ 5,000 of its outstanding common stock. Under the Stock Repurchase Program, the Company may, but is not obligated to, repurchase outstanding common stock in the open market from time to time provided that the Company complies with the prohibitions under its insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act”), including certain price, market value and timing constraints. The timing, manner, price and amount of any share repurchases will be determined by the Company’s management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate considerations. On October 31, 2022, the Board extended the Stock Repurchase Program through December 31, 2023, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not require the Company to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Stock Repurchase Program. The Stock Repurchase Program may be suspended, extended, modified or discontinued at any time. During the year ended December 31, 2020 the Company repurchased 25,719 shares of common stock on the open market for $ 268 . The Company did no t make any repurchases of common stock during the years ended December 31, 2022 and 2021 . Refer to Note 8 for additional information concerning stock repurchases. |
Recent Accounting Pronouncement | Recent accounting pronouncement: In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820),” which clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. In addition, ASU No. 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. ASU No. 2022-03’s amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU No. 2022-03 on its consolidated financial statements. |
Portfolio Company Investments (
Portfolio Company Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Investments [Abstract] | |
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 December 31, December 31, December 31, December 31, 2022 2021 2022 2021 First Lien Debt (1) $ 456,105 53.0 % $ 354,922 49.4 % $ 453,585 54.7 % $ 353,306 56.8 % Second Lien Debt 182,948 21.3 158,815 22.1 213,654 25.8 168,573 27.1 Subordinated Debt 101,456 11.8 36,064 5.0 100,634 12.1 35,995 5.8 Equity 117,741 13.7 166,119 23.1 57,868 7.0 60,589 9.8 Warrants 2,079 0.2 3,204 0.4 2,952 0.4 3,323 0.5 Total $ 860,329 100.0 % $ 719,124 100.0 % $ 828,693 100.0 % $ 621,786 100.0 % (1) Includes unitranche investments, which account for 42.1 % and 43.4 % of our portfolio on a fair value and cost basis as of December 31, 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. 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 December 31, December 31, December 31, December 31, 2022 2021 2022 2021 United States Midwest $ 180,556 21.0 % $ 157,222 21.9 % $ 132,177 16.0 % $ 89,865 14.5 % Southeast 265,902 31.0 219,988 30.6 258,373 31.1 197,380 31.7 Northeast 127,427 14.8 126,569 17.6 134,897 16.3 127,809 20.6 West 151,487 17.6 105,918 14.7 161,935 19.5 100,098 16.1 Southwest 122,519 14.2 109,427 15.2 128,873 15.6 106,634 17.1 Canada 12,438 1.4 — — 12,438 1.5 — — Total $ 860,329 100.0 % $ 719,124 100.0 % $ 828,693 100.0 % $ 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 December 31, December 31, December 31, December 31, 2022 2021 2022 2021 First Lien Debt 95.0 % 72.8 % United States Second Lien Debt 38.1 32.6 Midwest 37.6 % 32.2 % Subordinated Debt 21.1 7.4 Southeast 55.4 45.1 Equity 24.5 34.0 Northeast 26.5 26.0 Warrants 0.4 0.6 West 31.5 21.7 Total 179.1 % 147.4 % Southwest 25.5 22.4 Canada 2.6 — Total 179.1 % 147.4 % |
Schedule of Debt Investment on Non-Accrual Status | As of December 31, 2022 and 2021 , the Company had debt investments in four and one portfolio companies, respectively, on non-accrual status : December 31, 2022 December 31, 2021 Fair Fair Portfolio Company Value Cost Value Cost EBL, LLC (EbLens) $ — $ 9,332 $ — (1) $ — (1) US GreenFiber, LLC — 5,223 — (2) 5,223 (2) K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) 2,123 2,368 — (1) — (1) Allredi, LLC (fka Marco Group International OpCo, LLC) 8,144 10,281 — (1) — (1) Total $ 10,267 $ 27,204 $ — $ 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 period end, 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 year ended December 31, 2022, including the total investment income earned on such investments during the period. Year Ended December 31, 2022 Portfolio Company (1) December 31, 2022 Principal Amount - Debt Investments December 31, 2021 Gross Additions (2) Gross Reductions (3) December 31, 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 EBL, LLC (EbLens) (5) $ 9,350 $ — $ 19,628 $ ( 19,628 ) $ — $ — $ ( 11,083 ) $ — $ — $ — $ — Hilco Plastics Holdings, LLC (dba Hilco Technologies) — — 353 ( 353 ) $ — ( 352 ) — — — — — Mesa Line Services, LLC — 2,151 193 ( 2,344 ) — 194 ( 2,150 ) — — — — US GreenFiber, LLC 5,226 — — — — — — — — — — Total Control Investments $ 14,576 $ 2,151 $ 20,174 $ ( 22,325 ) $ — $ ( 158 ) $ ( 13,233 ) $ — $ — $ — $ — Affiliate Investments Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) $ 9,602 $ 22,405 $ 13,566 $ ( 12,803 ) $ 23,168 $ — 763 $ 973 $ — $ — $ — FAR Research Inc. — 28 — ( 28 ) — — ( 28 ) — — — — Medsurant Holdings, LLC — 3,662 — ( 1,122 ) 2,540 — ( 1,122 ) — — — — Mirage Trailers LLC — 10,675 355 ( 11,030 ) — 324 ( 1,694 ) 248 29 — 132 Pfanstiehl, Inc. 10,000 57,639 34,335 ( 39,982 ) 51,992 24,330 ( 15,432 ) 421 — — 150 Pinnergy, Ltd. (6) — 21,178 15,300 ( 36,478 ) — 15,300 ( 18,177 ) — — 656 — Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) 15,000 18,359 5,487 ( 4,728 ) 19,118 ( 121 ) ( 1,723 ) 1,822 — — 175 Steward Holding LLC (dba Steward Advanced Materials) — 3,338 1,434 — 4,772 — 1,434 — 1 69 — Total Affiliate Investments $ 34,602 $ 137,284 $ 70,477 $ ( 106,171 ) $ 101,590 $ 39,833 $ ( 35,979 ) $ 3,464 $ 30 $ 725 $ 457 (1) The investment type, industry, ownership detail for equity investments, interest rate, maturity date 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 Control investments from Non-control/Non-affiliate investments during the year ended December 31, 2022. (6) Portfolio company was transferred to Non-control/Non-affiliate investments from Affiliate investments during the year ended December 31, 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 December 31, 2021 Portfolio Company (1) December 31, 2021 Principal Amount - Debt Investments December 31, 2020 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Investments by Major Class According to Fair Value Hierarchy | The following tables present fair value measurements of investments by major class according to the fair value hierarchy: December 31, 2022 Level 1 Level 2 Level 3 Total First Lien Debt $ — $ — $ 456,105 $ 456,105 Second Lien Debt — — 182,948 182,948 Subordinated Debt — — 101,456 101,456 Equity 310 — 117,431 117,741 Warrants — — 2,079 2,079 Money Market Funds 61,076 — — 61,076 Total $ 61,386 $ — $ 860,019 $ 921,405 December 31, 2021 Level 1 Level 2 Level 3 Total First Lien Debt $ — $ — $ 354,922 $ 354,922 Second Lien Debt — — 158,815 158,815 Subordinated Debt — — 36,064 36,064 Equity 357 — 165,762 166,119 Warrants — — 3,204 3,204 Total $ 357 $ — $ 718,767 $ 719,124 |
Summary of Reconciliation of Beginning and Ending Balances for Fair Valued Investments | The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) for the years ended December 31, 2022 and 2021: First Lien Second Lien Subordinated Debt Debt Debt Equity Warrants Total Balance, December 31, 2020 $ 187,353 $ 332,154 $ 107,911 $ 112,836 $ 2,615 $ 742,869 Net realized gains (losses) on investments — — — 55,779 29 55,808 Net change in unrealized appreciation (depreciation) on ( 1,152 ) 35 ( 499 ) 42,652 460 41,496 Purchase of investments 244,596 72,181 16,500 13,331 129 346,737 Proceeds from sales and repayments of investments ( 75,124 ) ( 250,662 ) ( 88,384 ) ( 58,583 ) ( 29 ) ( 472,782 ) Interest and dividend income paid-in-kind 292 3,911 92 104 — 4,399 Proceeds from loan origination fees ( 2,322 ) ( 213 ) ( 135 ) — — ( 2,670 ) Accretion of loan origination fees 1,279 654 579 — — 2,512 Accretion of original issue discount — 755 — — — 755 Transfers in/(out) of Level 3 (1) — — — ( 357 ) — ( 357 ) Balance, December 31, 2021 $ 354,922 $ 158,815 $ 36,064 $ 165,762 3,204 $ 718,767 Net realized gains (losses) on investments ( 1,717 ) — — 65,817 1,535 65,635 Net change in unrealized appreciation (depreciation) on 904 ( 20,948 ) 753 ( 45,610 ) ( 754 ) ( 65,655 ) Purchase of investments 189,149 67,998 66,516 10,183 — 333,846 Proceeds from sales and repayments of investments ( 87,622 ) ( 23,731 ) ( 2,000 ) ( 78,721 ) ( 1,906 ) ( 193,980 ) Interest and dividend income paid-in-kind 597 651 415 — — 1,663 Proceeds from loan origination fees ( 1,566 ) ( 208 ) ( 350 ) — — ( 2,124 ) Accretion of loan origination fees 1,412 155 58 — — 1,625 Accretion of original issue discount 26 216 — — — 242 Transfers in/(out) of Level 3 — — — — — — Balance, December 31, 2022 $ 456,105 $ 182,948 $ 101,456 $ 117,431 $ 2,079 $ 860,019 (1) Transfers out of Level 3 were as a result of changes in the observability of significant inputs or available market data for certain portfolio companies. |
Summary of Significant Unobservable Inputs by Valuation Technique to Determine Fair Value | The following tables summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Company’s Level 3 debt and equity investments as of December 31, 2022 and 2021. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values. Fair Value at Valuation Unobservable Range December 31, 2022 Techniques Inputs (weighted average) (1) Debt investments: First Lien Debt $ 441,830 Discounted cash flow Weighted average cost of capital 8.9 % - 21.9 % ( 15.5 %) 11,000 Enterprise value Asset Coverage 1.1 x - 1.1 x ( 1.1 x) 3,275 Enterprise value Revenue multiples 4.3 x - 4.3 x ( 4.3 x) Second Lien Debt 180,824 Discounted cash flow (2) Weighted average cost of capital 11.7 % - 25.0 % ( 14.5 %) - Enterprise value EBITDA multiples 5.0 x - 5.0 x ( 5.0 x) 2,123 Enterprise value Asset Coverage 0.8 x - 0.8 x ( 0.8 x) Subordinated Debt 97,706 Discounted cash flow Weighted average cost of capital 10.0 % - 15.2 % ( 12.5 %) 3,750 Enterprise value EBITDA multiples 8.5 x - 8.5 x ( 8.5 x) Equity investments: Equity 111,808 Enterprise value EBITDA multiples 4.0 x - 16.8 x ( 8.1 x) 5,623 Enterprise value Revenue multiples 0.9 x - 7.8 x ( 6.4 x) Warrants 1,949 Enterprise value EBITDA multiples 6.0 x - 6.0 x ( 6.0 x) 130 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Includes $ 18.0 million of debt investments which were valued using a trading discount to par. Fair Value at Valuation Unobservable Range December 31, 2021 Techniques Inputs (weighted average) (1) Debt investments: First Lien Debt $ 335,022 Discounted cash flow Weighted average cost of capital 4.0 % - 21.6 % ( 12.2 %) 11,000 Enterprise value Asset Coverage 1.2 x - 1.2 x ( 1.2 x) 8,900 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) Second Lien Debt 144,541 Discounted cash flow Weighted average cost of capital 7.8 % - 25.0 % ( 14.4 %) 14,274 Enterprise value Asset Coverage 1.0 x - 1.4 x ( 1.4 x) Subordinated Debt 36,064 Discounted cash flow Weighted average cost of capital 10.0 % - 13.5 % ( 11.1 %) Equity investments: Equity 162,681 Enterprise value EBITDA multiples 3.5 x - 23.8 x ( 8.2 x) 3,081 Enterprise value Revenue multiples 3.5 x - 9.3 x ( 6.2 x) Warrants 3,075 Enterprise value EBITDA multiples 4.5 x - 6.0 x ( 5.9 x) 129 Enterprise value Revenue multiples 4.5 x - 4.5 x ( 4.5 x) (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Summary of Carrying Value and Fair Value of Debt Obligations | The following tables summarize the carrying value and fair value of the Company’s debt obligations as of December 31, 2022 and 2021: December 31, 2022 (5) December 31, 2021 (5) Carrying Value (1) Fair Value Carrying Value (1) Fair Value SBA debentures (2) $ 153,000 $ 153,000 $ 107,000 $ 107,000 Credit Facility borrowings (3) — — — — January 2026 Notes (4) 125,000 111,854 125,000 125,258 November 2026 Notes (4) 125,000 103,963 125,000 125,171 Total $ 403,000 $ 368,817 $ 357,000 $ 357,429 (1) Carrying value represents the outstanding principal balance of the debt obligation. (2) The fair value of the SBA debentures is estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures, which are Level 3 inputs under ASC Topic 820. (3) The fair value of borrowings under the Credit Facility, if valued under ASC Topic 820, are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. (4) The fair value of the January 2026 Notes (as defined in Note 6) and the November 2026 Notes (as defined in Note 6) are estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date, which are Level 3 inputs under ASC Topic 820. (5) Totals exclude $ 16,880 and $ 17,637 of secured borrowings as of December 31, 2022 and December 31, 2021 , respectively. |
Summary of Inputs Used to Value Debt Obligations | The following table summarizes the inputs used to value the Company’s debt obligations if measured at fair value as of December 31, 2022 and 2021: Fair Value December 31, December 31, Valuation Inputs 2022 2021 Level 1 $ — $ — Level 2 — — Level 3 368,817 357,429 Total $ 368,817 $ 357,429 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Summary of Interest and Fees Related to Debt | Interest and fees related to the Company’s debt for the years ended December 31, 2022, 2021 and 2020 that are included in interest and financing expenses on the consolidated statements of operations, were as follows: Year Ended December 31, 2022 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 3,747 $ 1,424 $ 1,078 $ 10,312 $ 16,561 Amortization of deferred financing costs 598 394 - 1,112 2,104 Total interest and financing expenses $ 4,345 $ 1,818 $ 1,078 $ 11,424 $ 18,665 Weighted average stated interest rate, period end 3.479 % N/A (1) 7.786 % 4.125 % 4.037 % Unused commitment fee rate, period end N/A 1.200 % (1) N/A N/A 1.200 % Year Ended December 31, 2021 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 3,810 $ 1,467 $ 427 $ 11,245 $ 16,949 Amortization of deferred financing costs 532 453 - 1,230 2,215 Total interest and financing expenses $ 4,342 $ 1,920 $ 427 $ 12,475 $ 19,164 Weighted average stated interest rate, period end 2.676 % N/A (1) 4.392 % 4.125 % 3.724 % Unused commitment fee rate, period end N/A 1.375 % (1) N/A N/A 1.375 % Year Ended December 31, 2020 SBA debentures Credit Facility Secured Borrowings Notes Total Stated interest expense $ 5,140 $ 1,642 $ - $ 10,625 $ 17,407 Amortization of deferred financing costs 549 397 - 1,325 2,271 Total interest and financing expenses $ 5,689 $ 2,039 $ - $ 11,950 $ 19,678 Weighted average stated interest rate, period end 3.297 % N/A (1) N/A 5.342 % 4.680 % Unused commitment fee rate, period end N/A 1.375 % (1) N/A N/A 1.375 % (1) Reflects the effective rate as of year end |
Summary of Deferred Financing Costs Amortized into Interest and Financing Expenses | Deferred financing costs are amortized into interest and financing expenses on the consolidated statements of operations using the effective interest method, over the term of the respective financing instrument. Deferred financing costs related to the SBA debentures, the Credit Facility, and the Notes as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 SBA Credit SBA Credit debentures Facility Notes Total debentures Facility Notes Total SBA debenture commitment fees $ 3,000 $ - $ - $ 3,000 $ 2,500 $ - $ - $ 2,500 SBA debenture leverage fees 6,389 - - 6,389 4,538 - - 4,538 Credit Facility upfront fees - 4,417 - 4,417 - 3,238 - 3,238 Notes underwriting discounts - - 5,005 5,005 - - 5,005 5,005 Notes debt issue costs - - 685 685 - - 685 685 Total deferred financing costs 9,389 4,417 5,690 19,496 7,038 3,238 5,690 15,966 Less: accumulated amortization ( 4,865 ) ( 3,037 ) ( 1,818 ) ( 9,720 ) ( 4,016 ) ( 2,643 ) ( 706 ) ( 7,365 ) Unamortized deferred financing costs $ 4,524 $ 1,380 $ 3,872 $ 9,776 $ 3,022 $ 595 $ 4,984 $ 8,601 |
Summary of Outstanding Debt Net of Unamortized Deferred Financing Costs | The following table summarizes the outstanding debt net of unamortized deferred financing costs as of December 31, 2022 and 2021: December 31, 2022 (1) December 31, 2021 SBA Credit SBA Credit debentures Facility Notes Total debentures Facility Notes Total Outstanding debt $ 153,000 $ - $ 250,000 $ 403,000 $ 107,000 $ - $ 250,000 $ 357,000 Less: unamortized deferred financing costs ( 4,524 ) ( 1,380 ) ( 3,872 ) ( 9,776 ) ( 3,022 ) ( 595 ) ( 4,984 ) ( 8,601 ) Debt, net of deferred financing costs $ 148,476 $ ( 1,380 ) $ 246,128 $ 393,224 $ 103,978 $ ( 595 ) $ 245,016 $ 348,399 (1) Total excludes $ 16,880 and $ 17,637 of Secured Borrowings as of December 31, 2022 and 2021, respectively. |
Scheduled to Mature Debt Liabilities | As of December 31, 2022, the Company’s debt liabilities are scheduled to mature as follows (1) : SBA Credit Secured Year debentures Facility (2) Borrowings Notes Total 2023 $ — $ — $ — $ — $ — 2024 — — — — — 2025 1,500 — — — 1,500 2026 4,500 — 16,880 250,000 271,380 2027 34,000 — — — 34,000 Thereafter 113,000 — — — 113,000 Total $ 153,000 $ — $ 16,880 $ 250,000 $ 419,880 (1) The table above presents scheduled maturities of the Company’s outstanding debt liabilities as of a point in time pursuant to the terms of those instruments. The timing of actual repayments of outstanding debt liabilities may not ultimately correspond with the scheduled maturity dates depending on the terms of the underlying instruments and the potential for earlier prepayments. (2) The Company’s Credit Facility matures on August 17, 2027 . As of December 31, 2022 , there were no outstanding borrowings under the Credit Facility. |
Information about Senior Securities | Information about our senior securities is shown in the following table for the years indicated in the table, unless otherwise noted. Class and Year Total Amount Outstanding Exclusive of Treasury Securities (1) Asset Coverage per Unit (2)(5) Involuntary Liquidation Preference per Unit (3) Average Market Value per Unit (4) (dollars in thousands) SBA debentures 2013 $ 144,500 $ ** $ * $ N/A 2014 173,500 ** * N/A 2015 213,500 ** * N/A 2016 224,000 ** * N/A 2017 231,300 ** * N/A 2018 191,000 ** * N/A 2019 157,500 ** * N/A 2020 147,000 ** * N/A 2021 107,000 ** * N/A 2022 153,000 ** * N/A Credit Facility 2013 $ - $ N/A $ * $ N/A 2014 10,000 25,326 * N/A 2015 15,500 16,959 * N/A 2016 - N/A * N/A 2017 11,500 35,198 * N/A 2018 36,500 5,659 * N/A 2019 25,000 2,989 * N/A 2020 - 2,337 * N/A 2021 - 2,822 * N/A 2022 - 2,800 * N/A 2023 Notes (6) 2018 $ 50,000 $ 5,659 $ * $ 25.74 2019 50,000 2,989 * 25.81 2020 50,000 2,337 * 24.12 February 2024 Notes (6) 2019 $ 69,000 $ 2,989 $ * $ 25.97 2020 69,000 2,337 * 24.60 November 2024 Notes (6) 2019 $ 63,250 $ 2,989 $ * $ 25.75 2020 63,250 2,337 * 23.20 January 2026 Notes 2020 $ 125,000 $ 2,337 $ * $ N/A 2021 125,000 2,822 * N/A 2022 125,000 2,800 * N/A November 2026 Notes 2021 $ 125,000 $ 2,822 $ * $ N/A 2022 125,000 2,800 * N/A Secured Borrowings 2021 $ 17,637 $ 2,822 $ * $ N/A 2022 16,880 2,800 * N/A (1) Total amount of each class of senior securities outstanding at the end of the period presented. (2) Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $ 1,000 of indebtedness. (3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “*” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities. (4) Not applicable to SBA debentures, Credit Facility, January 2026 Notes, the November 2026 Notes and Secured Borrowings because these senior securities are not registered for public trading. The average market value per unit for the Public Notes is based on the average of the closing market price as of each quarter end during the fiscal year and the prior year end, as applicable, and is expressed per $ 1,000 of indebtedness. The Public Notes were issued in $ 25 increments. (5) We have excluded our SBA debentures from the asset coverage calculation as of December 31, 2012 pursuant to the exemptive relief granted by the SEC in March 2012 that permits us to exclude the senior securities issued by the Funds from the definition of senior securities in the asset coverage requirement applicable to us under the 1940 Act. (6) Our 2023 Notes were repaid in full on January 19, 2021. Our February 2024 Notes and our November 2024 Notes were repaid in full on November 2, 2021. |
SBA Debentures | |
Debt Instrument [Line Items] | |
Summary of Issued and Outstanding SBA Debentures | As of December 31, 2022 and 2021, the Company’s issued and outstanding SBA debentures mature as follows: Pooling Maturity Fixed December 31, December 31, Date (1) Date Interest Rate 2022 2021 3/25/2015 3/1/2025 3.277 % $ 1,500 $ 22,500 3/23/2016 3/1/2026 3.267 1,500 1,500 3/23/2016 3/1/2026 3.249 2,500 2,500 9/21/2016 9/1/2026 2.793 500 500 9/20/2017 9/1/2027 3.260 1,000 1,000 9/20/2017 9/1/2027 3.190 33,000 33,000 3/21/2018 3/1/2028 3.534 — 9,000 9/25/2019 9/1/2029 2.377 7,500 7,500 3/25/2020 3/1/2030 2.172 6,000 6,000 9/22/2021 9/1/2031 1.398 11,500 11,500 3/23/2022 3/1/2032 3.209 43,500 12,000 9/21/2022 9/1/2032 4.533 17,500 — (2) (2) (2) 4,000 — (2) (2) (2) 3,000 — (2) (2) (2) 3,000 — (2) (2) (2) 5,000 — (2) (2) (2) 5,000 — (2) (2) (2) 7,000 — Total outstanding SBA debentures $ 153,000 $ 107,000 (1) The SBA has two scheduled pooling dates for debentures (in March and in September). Certain debentures funded during the reporting periods may not be pooled until the subsequent pooling date. (2) The Company issued $ 4,000 , $ 3,000 , $ 3,000 , $ 5,000 , $ 5,000 , and $ 7,000 in SBA debentures that will pool in March 2023. Until the pooling date, the debentures bear interest at a fixed rate interim interest rate of 4.855 %, 4.757 %, 5.123 %, 5.221 %, 5.341 %, and 5.243 %, respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of outstanding commitments | Such outstanding commitments are summarized in the following table: December 31, 2022 December 31, 2021 Total Unfunded Total Unfunded Portfolio Company - Investment Commitment Commitment Commitment Commitment Acendre Midco, Inc. - Revolving Loan $ 1,000 $ 1,000 $ 1,000 $ 1,000 Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) - Revolving Loan 1,000 1,000 — — Combined Systems, Inc. - Revolving Loan 4,000 162 4,000 605 EBL, LLC (EbLens) - Common Equity (Units) 375 375 — — Elements Brands, LLC - Revolving Loan 1,500 — 3,000 838 Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) 300 300 — — Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) 3,000 3,000 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - First Lien Debt 2,489 2,489 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Senior Subordinated Debt 417 417 — — R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Common Equity 70 70 — — Rhino Assembly Company, LLC - Delayed Draw Commitment — — 875 875 Safety Products Group, LLC - Common Equity (Units) — — 2,852 (1) 2,852 (1) Tedia Company, LLC - Revolving Loan 4,000 2,400 — — Tedia Company, LLC - Delayed Draw Term Loan 3,000 3,000 — — Western's Smokehouse, LLC - Delayed Draw Term Loan 3,500 2,702 — — Wonderware Holdings, LLC (dba CORE Business Technologies) - Delayed Draw Term Loan — — 2,000 2,000 Total $ 24,651 $ 16,915 $ 13,727 $ 8,170 (1) Portfolio company was no longer held at period end. The commitment represents the Company's maximum potential liability related to certain guaranteed obligations stemming from the prior sale of the portfolio company's underlying operations. |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Common Stock | The following table summarizes the cumulative total shares issued, net proceeds received, and weighted average offering price in public offerings of the Company’s common stock since the IPO in June 2011. Period Cumulative Number of Shares Cumulative Gross Proceeds Cumulative Underwriting Fees and Commissions and Offering Costs (1) Weighted Average Offering Price Cumulative since IPO 14,388,414 $ 236,597 $ 8,989 $ 16.44 (1) Fidus Investment Advisors, LLC agreed to bear a cumulative of $ 1,925 of underwriting fees and commissions and offering costs associated with these offerings (such amounts are not included in the number reported above). All such payments made by Fidus Investment Advisors, LLC are not subject to reimbursement by the Company. |
Summary of Equity ATM Program | The gross proceeds raised, the related sales agent commission and the offering expenses, the net proceeds raised, and the average price at which shares were issued under the ATM Program for the year ended December 31, 2022 are as follows: Sales Agent Gross Commissions Weighted- Number of Proceeds and Offering Average Year Ended December 31, 2022: Shares Sold Received Costs Price January 1, 2022 through March 31, 2022 - $ - $ - $ - April 1, 2022 through June 30, 2022 - - - July 1, 2022 through September 30, 2022 - - - October 1, 2022 through December 31, 2022 (1) 290,388 5,900 89 20.32 Total 290,388 $ 5,900 $ 89 $ 20.32 (1) Net proceeds of $ 5,811 were received for the period October 1, 2022 through December 31, 2022. |
Summary of Repurchases of Common Stock | The following table summarizes the Company’s share repurchases under the Stock Repurchase Program for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, Repurchases of Common Stock 2022 2021 2020 Number of shares repurchased — — 25,719 Cost of shares repurchased, including commissions $ — $ — $ 268 Weighted average price per share $ — $ — $ 10.37 Weighted average discount to net asset value at quarter end prior to repurchases N/A N/A 38.5 % |
Dividends and Distributions (Ta
Dividends and Distributions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Dividends and Distributions [Abstract] | |
Summary of Dividends Paid | The Company’s dividends and distributions are recorded on the record date. The following table summarizes the dividends paid during the last three fiscal years. DRIP DRIP Date Record Payment Amount Total Cash Shares DRIP Share Declared Date Date Per Share Distribution Distribution Value Shares Issue Price Year Ended December 31, 2020: 2/14/2020 3/13/2020 3/27/2020 $ 0.39 $ 9,537 $ 9,537 $ — (3) — (3) — 4/29/2020 6/12/2020 6/26/2020 0.30 7,331 7,331 — (3) — (3) — 8/03/2020 9/11/2020 9/25/2020 0.30 7,331 7,331 — (3) — (3) — 10/26/2020 12/4/2020 12/18/2020 0.30 7,331 7,331 — (3) — (3) — 10/26/2020 (2) 12/4/2020 12/18/2020 0.04 978 978 — (3) — (3) — $ 1.33 $ 32,508 $ 32,508 $ — — Year Ended December 31, 2021: 2/09/2021 3/12/2021 3/26/2021 $ 0.31 $ 7,575 $ 7,575 $ — (3) — (3) — 2/09/2021 (2) 3/12/2021 3/26/2021 0.07 1,711 1,711 — (3) — (3) — 5/03/2021 6/14/2021 6/28/2021 0.31 7,576 7,576 — (3) — (3) — 5/03/2021 (2) 6/14/2021 6/28/2021 0.08 1,955 1,955 — (3) — (3) — 8/02/2021 9/14/2021 9/28/2021 0.32 7,820 7,820 — (3) — (3) — 8/02/2021 (2) 9/14/2021 9/28/2021 0.06 1,466 1,466 — (3) — (3) — 8/02/2021 (1) 9/14/2021 9/28/2021 0.04 977 977 — (3) — (3) — 11/01/2021 12/3/2021 12/17/2021 0.32 7,820 7,820 — (3) — (3) — 11/01/2021 (2) 12/3/2021 12/17/2021 0.04 978 978 — (3) — (3) — 11/01/2021 (1) 12/3/2021 12/17/2021 0.05 1,222 1,222 — (3) — (3) — $ 1.60 $ 39,100 $ 39,100 $ — — Year Ended December 31, 2022: 2/15/2022 3/11/2022 3/25/2022 $ 0.36 $ 8,797 $ 8,797 $ — (3) — (3) — 2/15/2022 (2) 3/11/2022 3/25/2022 0.17 4,154 4,154 — (3) — (3) — 5/02/2022 6/10/2022 6/24/2022 0.36 8,797 8,797 — (3) — (3) — 5/02/2022 (2) 6/10/2022 6/24/2022 0.07 1,712 1,712 — (3) — (3) — 8/01/2022 9/9/2022 9/23/2022 0.36 8,797 8,797 — (3) — (3) — 8/01/2022 (2) 9/9/2022 9/23/2022 0.07 1,711 1,711 — (3) — (3) — 8/01/2022 12/2/2022 12/16/2022 0.36 8,902 8,902 — (3) — (3) — 8/01/2022 (2) 12/2/2022 12/16/2022 0.07 1,731 1,731 — (3) — (3) — 11/03/2022 (2) 12/2/2022 12/16/2022 0.08 1,978 1,978 — (3) — (3) — 11/03/2022 (1) 12/2/2022 12/16/2022 0.10 2,473 2,473 — (3) — (3) — $ 2.00 $ 49,052 $ 49,052 $ — — (1) Special dividend (2) Supplemental dividend (3) During the years ended December 31, 2022, 2021, and 2020, the Company directed the DRIP plan administrator to repurchase shares on the open market in order to satisfy the DRIP obligation to deliver shares of common stock in lieu of issuing new shares. Accordingly, the Company purchased and reissued shares to satisfy the DRIP obligation as follows: Number of Shares Average Purchased Price Paid Total Fiscal Year Ended December 31, 2020: and Reissued Per Share Amount Paid January 1, 2020 through March 31, 2020 31,586 $ 7.58 $ 239 April 1, 2020 through June 30, 2020 21,904 9.04 198 July 1, 2020 through September 30, 2020 28,871 10.18 294 October 1, 2020 through December 31, 2020 20,222 12.91 261 Total 102,583 $ 9.67 $ 992 Number of Shares Average Purchased Price Paid Total Year Ended December 31, 2021: and Reissued Per Share Amount Paid January 1, 2021 through March 31, 2021 15,562 $ 15.62 $ 243 April 1, 2021 through June 30, 2021 17,042 17.20 293 July 1, 2021 through September 30, 2021 18,201 17.82 324 October 1, 2021 through December 31, 2021 18,283 17.42 318 Total 69,088 $ 17.05 $ 1,178 Number of Shares Average Purchased Price Paid Total Year Ended December 31, 2022: and Reissued Per Share Amount Paid January 1, 2022 through March 31, 2022 20,380 $ 20.51 $ 418 April 1, 2022 through June 30, 2022 20,233 17.89 362 July 1, 2022 through September 30, 2022 21,114 17.08 360 October 1, 2022 through December 31, 2022 23,026 18.99 437 Total 84,753 $ 18.61 $ 1,577 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Company, Financial Highlights [Abstract] | |
Schedule of Financial Highlights | The following is a schedule of financial highlights for the years ended December 31, 2022 to 2013: Years Ended December 31, 2022 2021 2020 2019 2018 Per share data: Net asset value at beginning of period $ 19.96 $ 16.81 $ 16.85 $ 16.47 $ 16.05 Net investment income (1) 1.90 1.03 1.62 1.31 1.43 Net realized gain (loss) on investments, net of tax (provision) (1) 2.61 2.19 ( 0.06 ) ( 0.05 ) ( 0.45 ) Taxes paid on deemed distributions (1) ( 0.35 ) - - - - Net unrealized appreciation (depreciation) on investments (1) ( 2.69 ) 1.70 ( 0.27 ) 0.74 1.05 Realized losses on extinguishment of debt (1) ( 0.01 ) ( 0.17 ) ( 0.01 ) ( 0.02 ) ( 0.01 ) Total increase from investment operations (1) 1.46 4.75 1.28 1.98 2.02 Accretive (dilutive) effect of share issuances and repurchases 0.02 - 0.01 - 0.01 Dividends declared to stockholders ( 1.19 ) ( 1.60 ) ( 1.33 ) ( 1.60 ) ( 1.60 ) Distributions from capital gains ( 0.81 ) - - - - Other (2) ( 0.01 ) - - - ( 0.01 ) Net asset value at end of period $ 19.43 $ 19.96 $ 16.81 $ 16.85 $ 16.47 Market value at end of period $ 19.03 $ 17.98 $ 13.10 $ 14.84 $ 11.69 Shares outstanding at end of period 24,727,788 24,437,400 24,437,400 24,463,119 24,463,119 Weighted average shares outstanding during the period 24,468,172 24,437,400 24,442,431 24,463,119 24,471,730 Net assets at end of period $ 480,343 $ 487,764 $ 410,760 $ 412,310 $ 402,985 Average net assets (6) $ 482,594 $ 437,690 $ 392,866 $ 404,284 $ 398,440 Ratios to average net assets: Total expenses (4)(10) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Net investment income (5) 9.6 % 5.7 % 10.1 % 7.9 % 8.8 % Total return based on market value (3) 17.7 % 53.9 % 1.0 % 37.6 % ( 15.8 %) Total return based on net asset value (8) 7.3 % 28.3 % 7.6 % 12.0 % 12.6 % Portfolio turnover ratio 23.9 % 47.7 % 25.8 % 17.2 % 29.5 % Supplemental Data: Average debt outstanding (7) $ 397,244 $ 380,997 $ 385,350 $ 319,050 $ 271,560 Average debt per share (1) $ 16.24 $ 15.59 $ 15.77 $ 13.04 $ 11.10 Years Ended December 31, 2017 2016 2015 2014 2013 Per share data: Net asset value at beginning of period $ 15.76 $ 15.17 $ 15.16 $ 15.35 $ 15.32 Net investment income (1) 1.44 1.45 1.64 1.62 1.43 Net realized gain (loss) on investments, net of tax (provision) (1) 0.67 ( 0.77 ) 0.58 ( 1.18 ) 2.22 Net unrealized appreciation (depreciation) on investments (1) ( 0.23 ) 1.59 ( 0.62 ) 0.92 ( 1.64 ) Realized losses on extinguishment of debt (1) ( 0.01 ) - - - - Total increase from investment operations (1) 1.87 2.27 1.60 1.36 2.01 Accretive (dilutive) effect of share issuances and repurchases 0.02 ( 0.05 ) 0.02 0.19 0.18 Dividends to stockholders ( 1.60 ) ( 1.60 ) ( 1.60 ) ( 0.97 ) ( 1.21 ) Distributions from capital gains - - - ( 0.75 ) ( 0.73 ) Taxes paid on deemed distributions - - - - ( 0.21 ) Other (2) - ( 0.03 ) ( 0.01 ) ( 0.02 ) ( 0.01 ) Net asset value at end of period $ 16.05 $ 15.76 $ 15.17 $ 15.16 $ 15.35 Market value at end of period $ 15.18 $ 15.73 $ 13.69 $ 14.85 $ 21.74 Shares outstanding at end of period 24,507,940 22,446,076 16,300,732 16,051,037 13,755,232 Weighted average shares outstanding during the period 23,527,188 18,283,715 16,201,449 14,346,438 13,524,368 Net assets at end of period $ 393,273 $ 353,785 $ 247,362 $ 243,263 $ 211,125 Average net assets (6) $ 376,292 $ 289,453 $ 245,706 $ 222,737 $ 209,136 Ratios to average net assets: Total expenses (4)(10) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Net investment income (5) 9.0 % 9.2 % 10.8 % 10.5 % 9.2 % Total return based on market value (3) 3.2 % 23.8 % 2.4 % ( 23.8 %) 44.0 % Total return based on net asset value (8) 11.9 % 15.0 % 10.6 % 8.9 % 13.1 % Portfolio turnover ratio 29.5 % 29.3 % 22.5 % 18.9 % 44.9 % Supplemental Data: Average debt outstanding (7) $ 219,920 $ 221,200 $ 199,340 $ 152,700 $ 144,500 Average debt per share (1) $ 9.35 $ 12.10 $ 12.30 $ 10.64 $ 10.68 ________________________________________________________ (1) Weighted average per share data. (2) Represents the impact of different share amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date, or other rounding. (3) Total return based on market value equals the change in the market value of the Company’s common stock per share during the period divided by the market value per share at the beginning of the period, and assumes reinvestment of dividends at prices obtained by our dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor. (4) The total expenses to average net assets ratio is calculated using i) the "total expenses, net of income incentive fee and base management fee waiver", ii) the "income tax (provision) benefit", iii) the "income tax (provision) benefit from realized gains on investments, and iv) income tax (provision) from deemed distribution of long term capital gains" captions as presented on the consolidated statements of operations. (5) The net investment income to average net assets ratio is calculated using the net investment income caption as presented on the consolidated statements of operations, which includes incentive fee. (6) Average net assets is calculated as the average of the net asset balances as of each quarter end during the fiscal year and the prior year end. (7) Average debt outstanding is calculated as the average of the outstanding debt balances, including secured borrowings, as of each quarter end during the fiscal year and the prior year end. (8) Total return based on net asset value per share equals the change in net asset value per share during the period, plus dividends paid per share during the period, less other non-operating changes during the period, and divided by beginning net asset value per share for the period. Non-operating changes include any items that affect net asset value per share other than increase from investment operations, such as the effects of share issuances and repurchases and other miscellaneous items. (9) There was no incentive fee waived for the years ended December 31, 2022, and 2021 , The ratio of waived incentive fees to average net assets was ( 0.11 )% for the year ended December 31, 2020. There was no incentive fee waived for the years ended December 31, 2 0 19 through 2013. (10) The following is a schedule of supplemental expense ratios to average net assets: Years Ended December 31, Ratio to average net assets: 2022 2021 2020 2019 2018 Expenses other than incentive fee (4) 10.4 % 8.9 % 10.1 % 8.5 % 7.6 % Incentive fee (4)(9) 1.6 % 6.5 % 1.7 % 2.7 % 3.1 % Total expenses (4) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Years Ended December 31, Ratio to average net assets: 2017 2016 2015 2014 2013 Expenses other than incentive fee (4) 6.9 % 8.1 % 8.7 % 8.1 % 7.8 % Incentive fee, net of incentive fee waiver (4)(9) 2.9 % 3.6 % 2.6 % 2.2 % 3.2 % Total expenses (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Years Ended December 31, Ratio to average net assets: 2022 2021 2020 2019 2018 Total expenses, before base management fee waiver (4) 12.1 % 15.4 % 11.8 % 11.2 % 10.7 % Base management fee waiver (4)(9) ( 0.1 %) 0.0 % 0.0 % 0.0 % 0.0 % Total expenses (4) 12.0 % 15.4 % 11.8 % 11.2 % 10.7 % Years Ended December 31, Ratio to average net assets: 2017 2016 2015 2014 2013 Total expenses, before base management fee waiver (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % Base management fee waiver (4)(9) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Total expenses (4) 9.8 % 11.7 % 11.3 % 10.3 % 11.0 % |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Total investment income $ 20,518 $ 21,153 $ 24,992 $ 27,474 Net investment income 10,338 11,008 12,719 12,484 Net increase in net assets from operations 11,690 7,981 11,428 4,723 Net investment income per share (1) $ 0.42 $ 0.45 $ 0.52 $ 0.51 Net increase in net assets from operations per share (1) $ 0.48 $ 0.33 $ 0.47 $ 0.19 Net asset value per share at end of period $ 19.91 $ 19.80 $ 19.41 $ 19.43 March 31, June 30, September 30, December 31, 2021 2021 2021 2021 Total investment income $ 23,290 $ 21,826 $ 21,229 $ 24,101 Net investment income 11,081 6,473 5,118 2,448 Net increase in net assets from operations 11,538 25,886 28,442 50,238 Net investment income per share (1) $ 0.45 $ 0.26 $ 0.21 $ 0.10 Net increase in net assets from operations per share (1) $ 0.47 $ 1.06 $ 1.16 $ 2.06 Net asset value per share at end of period $ 16.90 $ 17.57 $ 18.31 $ 19.96 March 31, June 30, September 30, December 31, 2020 2020 2020 2020 Total investment income $ 19,983 $ 20,433 $ 21,077 $ 23,630 Net investment income 17,417 9,291 6,902 6,038 Net increase in net assets from operations ( 26,971 ) 7,973 20,707 29,517 Net investment income per share (1) $ 0.71 $ 0.38 $ 0.28 $ 0.25 Net increase in net assets from operations per share (1) $ ( 1.10 ) $ 0.33 $ 0.85 $ 1.20 Net asset value per share at end of period $ 15.37 $ 15.39 $ 15.94 $ 16.81 (1) Per share amounts are calculated using the weighted average shares outstanding for the period. Due to rounding, the sum of the quarters may not equal the annual calculation on a per share basis. |
Income Taxes (Tables)
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. |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Details) $ in Thousands | Jun. 20, 2011 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SBIC debenture program, maximum amount outstanding SBA debentures | $ 350,000 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) shares | |
Change in Accounting Estimate [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Number of operating segments | Segment | 1 | ||
Percentage of excise tax | 4% | ||
Income tax examination, description | The Company’s tax returns are generally subject to examination by U.S. federal and most state tax authorities for a period of three years from the date the respective returns are filed, and, accordingly, the Company’s 2019 through 2021 tax years remain subject to examination. | ||
Tax year subject to examination | 2019 2020 2021 | ||
Maximum number of common stock purchasable under stock repurchase program | $ | $ 5,000,000 | ||
Number of shares repurchased under repurchase program | shares | 25,719 | ||
Repurchase of common stock | $ | $ 0 | $ 0 | $ 268,000 |
Minimum | |||
Change in Accounting Estimate [Line Items] | |||
Percentage of voting securities | 25% | ||
Percentage of board representation | 50% | ||
Percentage of investment company taxable income | 90% | ||
Percentage of taxable income | 98% | ||
Percentage of net capital gains realized | 98.20% | ||
Minimum | Affiliate Investment | |||
Change in Accounting Estimate [Line Items] | |||
Percentage of voting securities | 5% | ||
Maximum | Affiliate Investment | |||
Change in Accounting Estimate [Line Items] | |||
Percentage of voting securities | 25% |
Portfolio Company Investments -
Portfolio Company Investments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Investment | Dec. 31, 2021 USD ($) Investment | Dec. 31, 2020 USD ($) | |
Investment Holdings [Line Items] | |||
Number of investment portfolio companies | Investment | 76 | 70 | |
Number of residual investment porfolio companies | Investment | 2 | 8 | |
Aggregate fair value of total portfolio | $ 860,329 | $ 719,124 | |
Weighted average effective yield investment percentage | 13.80% | 12.30% | |
Average fully diluted equity ownership percentage | 4% | 4.70% | |
Percentage of equity investments held in portfolio companies | 74.40% | 82.10% | |
Purchases of debt and equity investments | $ 333,846 | $ 346,737 | $ 189,996 |
Proceeds from sales and repayments | $ 193,980 | $ 472,782 | $ 210,774 |
Number of investments represented more than ten percentage of aggregate investment portfolio | Investment | 0 | 0 | |
Investments at Fair Value | $ 860,329 | $ 719,124 | |
Debt investments in portfolio companies on non-accrual status | Investment | 4 | 1 | |
Pfanstiehl, Inc | |||
Investment Holdings [Line Items] | |||
Investments at Fair Value | $ 51,992 | $ 57,639 | |
Investments as percentage of total assets | 5.60% | 6.40% | |
Maximum | |||
Investment Holdings [Line Items] | |||
Investment maturity period | 7 years | ||
Minimum | |||
Investment Holdings [Line Items] | |||
Investment maturity period | 5 years |
Portfolio Company Investments_2
Portfolio Company Investments - Schedule of Investments Type With Corresponding Percentage of Total Portfolio Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 860,329 | $ 719,124 |
Percentage of Fair Value | 100% | 100% |
Investments at cost | $ 828,693 | $ 621,786 |
Percentage of Cost | 100% | 100% |
First Lien Debt | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 456,105 | $ 354,922 |
Percentage of Fair Value | 53% | 49.40% |
Investments at cost | $ 453,585 | $ 353,306 |
Percentage of Cost | 54.70% | 56.80% |
Second Lien Debt | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 182,948 | $ 158,815 |
Percentage of Fair Value | 21.30% | 22.10% |
Investments at cost | $ 213,654 | $ 168,573 |
Percentage of Cost | 25.80% | 27.10% |
Subordinated Debt | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 101,456 | $ 36,064 |
Percentage of Fair Value | 11.80% | 5% |
Investments at cost | $ 100,634 | $ 35,995 |
Percentage of Cost | 12.10% | 5.80% |
Equity | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 117,741 | $ 166,119 |
Percentage of Fair Value | 13.70% | 23.10% |
Investments at cost | $ 57,868 | $ 60,589 |
Percentage of Cost | 7% | 9.80% |
Warrants | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 2,079 | $ 3,204 |
Percentage of Fair Value | 0.20% | 0.40% |
Investments at cost | $ 2,952 | $ 3,323 |
Percentage of Cost | 0.40% | 0.50% |
Portfolio Company Investments_3
Portfolio Company Investments - Schedule of Investments Type With Corresponding Percentage of Total Portfolio Investments (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Investment Holdings [Line Items] | ||
Percentage of Fair Value | 100% | 100% |
Percentage of Cost | 100% | 100% |
Unitranche Investments [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Fair Value | 42.10% | 40.20% |
Percentage of Cost | 43.40% | 46.30% |
Portfolio Company Investments_4
Portfolio Company Investments - Schedule of Portfolio Composition by Geographic Region at Fair Value and Cost and as Percentage of Total Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 860,329 | $ 719,124 |
Percentage of Fair Value | 100% | 100% |
Investments at cost | $ 828,693 | $ 621,786 |
Percentage of Cost | 100% | 100% |
United States Midwest | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 180,556 | $ 157,222 |
Percentage of Fair Value | 21% | 21.90% |
Investments at cost | $ 132,177 | $ 89,865 |
Percentage of Cost | 16% | 14.50% |
United States Southeast | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 265,902 | $ 219,988 |
Percentage of Fair Value | 31% | 30.60% |
Investments at cost | $ 258,373 | $ 197,380 |
Percentage of Cost | 31.10% | 31.70% |
United States Northeast | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 127,427 | $ 126,569 |
Percentage of Fair Value | 14.80% | 17.60% |
Investments at cost | $ 134,897 | $ 127,809 |
Percentage of Cost | 16.30% | 20.60% |
United States West | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 151,487 | $ 105,918 |
Percentage of Fair Value | 17.60% | 14.70% |
Investments at cost | $ 161,935 | $ 100,098 |
Percentage of Cost | 19.50% | 16.10% |
United States Southwest | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 122,519 | $ 109,427 |
Percentage of Fair Value | 14.20% | 15.20% |
Investments at cost | $ 128,873 | $ 106,634 |
Percentage of Cost | 15.60% | 17.10% |
Canada | ||
Summary of Investment Holdings [Line Items] | ||
Investments at Fair Value | $ 12,438 | |
Percentage of Fair Value | 1.40% | |
Investments at cost | $ 12,438 | |
Percentage of Cost | 1.50% |
Portfolio Company Investments_5
Portfolio Company Investments - Schedule of Portfolio Composition by Type And by Geographic Region at Fair Value (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 179.10% | 147.40% |
United States Midwest | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 37.60% | 32.20% |
United States Southeast | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 55.40% | 45.10% |
United States Northeast | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 26.50% | 26% |
United States West | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 31.50% | 21.70% |
United States Southwest | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 25.50% | 22.40% |
Canada | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 2.60% | |
First Lien Debt | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 95% | 72.80% |
Second Lien Debt | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 38.10% | 32.60% |
Subordinated Debt | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 21.10% | 7.40% |
Equity | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 24.50% | 34% |
Warrants | ||
Summary of Investment Holdings [Line Items] | ||
Total net assets percentage | 0.40% | 0.60% |
Portfolio Company Investments_6
Portfolio Company Investments - Schedule of Debt Investment on Non-Accrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 10,267 | |
Fair Value | K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 2,123 | |
Fair Value | Allredi, LLC (fka Marco Group International OpCo, LLC) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 8,144 | |
Cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 27,204 | $ 5,223 |
Cost | EBL, LLC (EbLens) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 9,332 | |
Cost | US GreenFiber, LLC | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 5,223 | $ 5,223 |
Cost | K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 2,368 | |
Cost | Allredi, LLC (fka Marco Group International OpCo, LLC) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 10,281 |
Portfolio Company Investments_7
Portfolio Company Investments - Schedule of Consolidated Schedule of Investments in and Advances to Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | $ 14,576 | $ 5,226 |
Fair Value, beginning balance | 2,151 | 28,253 |
Gross Additions | 20,174 | 41,485 |
Gross Reductions | (22,325) | (67,587) |
Fair Value, ending balance | 2,151 | |
Net Realized Gain (Losses) | (158) | 20,521 |
Net Change in Unrealized Appreciation (Depreciation) | (13,233) | 34 |
Interest Income | 3,735 | |
Payment-in-kind Interest Income | 2,117 | |
Dividend Income | 568 | |
Fee Income | 1,872 | |
Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 34,602 | 29,307 |
Fair Value, beginning balance | 137,284 | 81,394 |
Gross Additions | 70,477 | 72,005 |
Gross Reductions | (106,171) | (16,115) |
Fair Value, ending balance | 101,590 | 137,284 |
Net Realized Gain (Losses) | 39,833 | 94 |
Net Change in Unrealized Appreciation (Depreciation) | (35,979) | 32,207 |
Interest Income | 3,464 | 2,695 |
Payment-in-kind Interest Income | 30 | 368 |
Dividend Income | 725 | 1,172 |
Fee Income | 457 | 385 |
EBL, LLC (EbLens) | Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 9,350 | |
Gross Additions | 19,628 | |
Gross Reductions | (19,628) | |
Net Change in Unrealized Appreciation (Depreciation) | (11,083) | |
Hilco Plastics Holdings, LLC (dba Hilco Technologies) | Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Gross Additions | 353 | 1,577 |
Gross Reductions | (353) | (1,577) |
Net Realized Gain (Losses) | (352) | (881) |
Interest Income | 308 | |
Dividend Income | 568 | |
Mesa Line Services, LLC | Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 2,151 | |
Gross Additions | 193 | 32,708 |
Gross Reductions | (2,344) | (30,557) |
Fair Value, ending balance | 2,151 | |
Net Realized Gain (Losses) | 194 | 20,445 |
Net Change in Unrealized Appreciation (Depreciation) | (2,150) | 2,150 |
Interest Income | 951 | |
Payment-in-kind Interest Income | 903 | |
Fee Income | 1,472 | |
US GreenFiber, LLC | Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 5,226 | 5,226 |
Fair Value, beginning balance | 20,862 | |
Gross Additions | 5,214 | |
Gross Reductions | (26,076) | |
Net Change in Unrealized Appreciation (Depreciation) | (3,144) | |
Interest Income | 2,386 | |
Payment-in-kind Interest Income | 1,214 | |
Applegate Greenfiber Intermediate Inc. (fka US GreenFiber, LLC) | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 9,602 | 9,602 |
Fair Value, beginning balance | 22,405 | |
Gross Additions | 13,566 | 22,405 |
Gross Reductions | (12,803) | |
Fair Value, ending balance | 23,168 | 22,405 |
Net Change in Unrealized Appreciation (Depreciation) | 763 | |
Interest Income | 973 | |
FAR Research Inc. | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 28 | 28 |
Gross Reductions | (28) | |
Fair Value, ending balance | 28 | |
Net Change in Unrealized Appreciation (Depreciation) | (28) | |
Fiber Materials, Inc. | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 41 | |
Gross Additions | 94 | |
Gross Reductions | (135) | |
Net Realized Gain (Losses) | 94 | |
Net Change in Unrealized Appreciation (Depreciation) | (42) | |
Medsurant Holdings, LLC | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 3,662 | 10,960 |
Gross Additions | 733 | |
Gross Reductions | (1,122) | (8,031) |
Fair Value, ending balance | 2,540 | 3,662 |
Net Change in Unrealized Appreciation (Depreciation) | (1,122) | 687 |
Interest Income | 331 | |
Fee Income | 91 | |
Mirage Trailers LLC | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 6,705 | |
Fair Value, beginning balance | 10,675 | 6,494 |
Gross Additions | 355 | 4,225 |
Gross Reductions | (11,030) | (44) |
Fair Value, ending balance | 10,675 | |
Net Realized Gain (Losses) | 324 | |
Net Change in Unrealized Appreciation (Depreciation) | (1,694) | 3,871 |
Interest Income | 248 | 761 |
Payment-in-kind Interest Income | 29 | 338 |
Dividend Income | 110 | |
Fee Income | 132 | |
Pfanstiehl, Inc | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 10,000 | |
Fair Value, beginning balance | 57,639 | 33,505 |
Gross Additions | 34,335 | 24,134 |
Gross Reductions | (39,982) | |
Fair Value, ending balance | 51,992 | 57,639 |
Net Realized Gain (Losses) | 24,330 | |
Net Change in Unrealized Appreciation (Depreciation) | (15,432) | 24,135 |
Interest Income | 421 | |
Dividend Income | 1,062 | |
Fee Income | 150 | |
Pinnergy, Ltd. | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 21,178 | 20,589 |
Gross Additions | 15,300 | 589 |
Gross Reductions | (36,478) | |
Fair Value, ending balance | 21,178 | |
Net Realized Gain (Losses) | 15,300 | |
Net Change in Unrealized Appreciation (Depreciation) | (18,177) | 589 |
Dividend Income | 656 | |
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Control Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 7,391 | |
Gross Additions | 1,986 | |
Gross Reductions | (9,377) | |
Net Realized Gain (Losses) | 957 | |
Net Change in Unrealized Appreciation (Depreciation) | 1,028 | |
Interest Income | 90 | |
Fee Income | 400 | |
Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.) | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Principal Amount - Debt Investments | 15,000 | 13,000 |
Fair Value, beginning balance | 18,359 | |
Gross Additions | 5,487 | 18,452 |
Gross Reductions | (4,728) | (93) |
Fair Value, ending balance | 19,118 | 18,359 |
Net Realized Gain (Losses) | (121) | |
Net Change in Unrealized Appreciation (Depreciation) | (1,723) | 1,626 |
Interest Income | 1,822 | 1,142 |
Fee Income | 175 | 294 |
Steward Holding LLC (dba Steward Advanced Materials) | Affiliate Investments | ||
Investments in and Advances to Affiliates [Line Items] | ||
Fair Value, beginning balance | 3,338 | 9,777 |
Gross Additions | 1,434 | 1,373 |
Gross Reductions | (7,812) | |
Fair Value, ending balance | 4,772 | 3,338 |
Net Change in Unrealized Appreciation (Depreciation) | 1,434 | 1,341 |
Interest Income | 461 | |
Payment-in-kind Interest Income | 1 | $ 30 |
Dividend Income | $ 69 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 1 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 1 |
Fair value, assets, transfers into level 3, amount | 0 | 1 |
Fair value, assets, transfers out of level 3, amount | 0 | 1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net change in unrealized appreciation (depreciation) on investments | $ (28,524) | $ 46,340 |
16 and 17 Portfolio Company Investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of portfolio investments at fair value | 29.50% | 21.80% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measuruments of Investments by Major Class According to Fair Value Hierachy (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 921,405 | $ 719,124 |
First Lien Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 456,105 | 354,922 |
Second Lien Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 182,948 | 158,815 |
Subordinated Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 101,456 | 36,064 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 117,741 | 166,119 |
Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,079 | 3,204 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 61,076 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 61,386 | 357 |
Level 1 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 310 | 357 |
Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 61,076 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 860,019 | 718,767 |
Level 3 | First Lien Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 456,105 | 354,922 |
Level 3 | Second Lien Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 182,948 | 158,815 |
Level 3 | Subordinated Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 101,456 | 36,064 |
Level 3 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 117,431 | 165,762 |
Level 3 | Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 2,079 | $ 3,204 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Reconciliation of Beginning and Ending Balances for Fair Valued Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized gain (loss) on investment | Realized gain (loss) on investment |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Change In Unrealized (appreciation) Depreciation on Investments | Net Change In Unrealized (appreciation) Depreciation on Investments |
Transfers in/(out) of Level 3 | $ 0 | $ 1 |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net change in unrealized appreciation (depreciation) on investments | (28,524) | 46,340 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 718,767 | 742,869 |
Net realized gains (losses) on investments | 65,635 | 55,808 |
Net change in unrealized appreciation (depreciation) on investments | (65,655) | 41,496 |
Purchase of investments | 333,846 | 346,737 |
Proceeds from sales and repayments of investments | (193,980) | (472,782) |
Interest and dividend income paid-in-kind | 1,663 | 4,399 |
Proceeds from loan origination fees | (2,124) | (2,670) |
Accretion of loan origination fees | 1,625 | 2,512 |
Accretion of original issue discount | 242 | 755 |
Transfers in/(out) of Level 3 | (357) | |
Ending Balance | 860,019 | 718,767 |
Subordinated Debt | Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 36,064 | 107,911 |
Net realized gains (losses) on investments | 0 | |
Net change in unrealized appreciation (depreciation) on investments | 753 | (499) |
Purchase of investments | 66,516 | 16,500 |
Proceeds from sales and repayments of investments | (2,000) | (88,384) |
Interest and dividend income paid-in-kind | 415 | 92 |
Proceeds from loan origination fees | (350) | (135) |
Accretion of loan origination fees | 58 | 579 |
Accretion of original issue discount | 0 | 0 |
Transfers in/(out) of Level 3 | 0 | |
Ending Balance | 101,456 | 36,064 |
First Lien Debt | Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 354,922 | 187,353 |
Net realized gains (losses) on investments | (1,717) | |
Net change in unrealized appreciation (depreciation) on investments | 904 | (1,152) |
Purchase of investments | 189,149 | 244,596 |
Proceeds from sales and repayments of investments | (87,622) | (75,124) |
Interest and dividend income paid-in-kind | 597 | 292 |
Proceeds from loan origination fees | (1,566) | (2,322) |
Accretion of loan origination fees | 1,412 | 1,279 |
Accretion of original issue discount | 26 | 0 |
Transfers in/(out) of Level 3 | 0 | |
Ending Balance | 456,105 | 354,922 |
Second Lien Debt | Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 158,815 | 332,154 |
Net realized gains (losses) on investments | 0 | |
Net change in unrealized appreciation (depreciation) on investments | (20,948) | 35 |
Purchase of investments | 67,998 | 72,181 |
Proceeds from sales and repayments of investments | (23,731) | (250,662) |
Interest and dividend income paid-in-kind | 651 | 3,911 |
Proceeds from loan origination fees | (208) | (213) |
Accretion of loan origination fees | 155 | 654 |
Accretion of original issue discount | 216 | 755 |
Transfers in/(out) of Level 3 | 0 | |
Ending Balance | 182,948 | 158,815 |
Equity | Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 165,762 | 112,836 |
Net realized gains (losses) on investments | 65,817 | 55,779 |
Net change in unrealized appreciation (depreciation) on investments | (45,610) | 42,652 |
Purchase of investments | 10,183 | 13,331 |
Proceeds from sales and repayments of investments | (78,721) | (58,583) |
Interest and dividend income paid-in-kind | 0 | 104 |
Proceeds from loan origination fees | 0 | 0 |
Accretion of loan origination fees | 0 | 0 |
Accretion of original issue discount | 0 | 0 |
Transfers in/(out) of Level 3 | (357) | |
Ending Balance | 117,431 | 165,762 |
Warrant | Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 3,204 | 2,615 |
Net realized gains (losses) on investments | 1,535 | 29 |
Net change in unrealized appreciation (depreciation) on investments | (754) | 460 |
Purchase of investments | 0 | 129 |
Proceeds from sales and repayments of investments | (1,906) | (29) |
Interest and dividend income paid-in-kind | 0 | 0 |
Proceeds from loan origination fees | 0 | 0 |
Accretion of loan origination fees | 0 | 0 |
Accretion of original issue discount | 0 | 0 |
Transfers in/(out) of Level 3 | 0 | |
Ending Balance | $ 2,079 | $ 3,204 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Significant Unobservable Inputs by Valuation Technique to Determine Fair Value (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 368,817 | $ 357,429 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Total investments, at fair value | |
Level 3 | Enterprise Value | EBITDA Multiples | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity Fair Value | 111,808 | $ 162,681 |
Equity Investments, Warrants fair value | $ 1,949 | $ 3,075 |
Level 3 | Enterprise Value | EBITDA Multiples | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 4 | 3.5 |
Equity investments, Warrants range | 6 | 4.5 |
Level 3 | Enterprise Value | EBITDA Multiples | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 16.8 | 23.8 |
Equity investments, Warrants range | 6 | 6 |
Level 3 | Enterprise Value | EBITDA Multiples | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 8.1 | 8.2 |
Equity investments, Warrants range | 6 | 5.9 |
Level 3 | Enterprise Value | Revenue Multiples | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity Fair Value | $ 5,623 | $ 3,081 |
Equity Investments, Warrants fair value | $ 130 | $ 129 |
Level 3 | Enterprise Value | Revenue Multiples | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 0.9 | 3.5 |
Equity investments, Warrants range | 4.5 | 4.5 |
Level 3 | Enterprise Value | Revenue Multiples | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 7.8 | 9.3 |
Equity investments, Warrants range | 4.5 | 4.5 |
Level 3 | Enterprise Value | Revenue Multiples | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity Investments, Equity, Range | 6.4 | 6.2 |
Equity investments, Warrants range | 4.5 | 4.5 |
Level 3 | Subordinated Debt | Discounted Cash Flow | Weighted Average Cost of Capital | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 97,706 | $ 36,064 |
Level 3 | Subordinated Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.100 | 0.100 |
Level 3 | Subordinated Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.152 | 0.135 |
Level 3 | Subordinated Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.125 | 0.111 |
Level 3 | Subordinated Debt | Enterprise Value | EBITDA Multiples | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 3,750 | |
Level 3 | Subordinated Debt | Enterprise Value | EBITDA Multiples | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 8.5 | |
Level 3 | Subordinated Debt | Enterprise Value | EBITDA Multiples | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 8.5 | |
Level 3 | Subordinated Debt | Enterprise Value | EBITDA Multiples | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 8.5 | |
Level 3 | First Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 441,830 | $ 335,022 |
Level 3 | First Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.089 | 0.040 |
Level 3 | First Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.219 | 0.216 |
Level 3 | First Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.155 | 0.122 |
Level 3 | First Lien Debt | Enterprise Value | Asset Coverage | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 11,000 | $ 11,000 |
Level 3 | First Lien Debt | Enterprise Value | Asset Coverage | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 1.1 | 1.2 |
Level 3 | First Lien Debt | Enterprise Value | Asset Coverage | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 1.1 | 1.2 |
Level 3 | First Lien Debt | Enterprise Value | Asset Coverage | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 1.1 | 1.2 |
Level 3 | First Lien Debt | Enterprise Value | Revenue Multiples | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 3,275 | $ 8,900 |
Level 3 | First Lien Debt | Enterprise Value | Revenue Multiples | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 4.3 | 4.5 |
Level 3 | First Lien Debt | Enterprise Value | Revenue Multiples | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 4.3 | 4.5 |
Level 3 | First Lien Debt | Enterprise Value | Revenue Multiples | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 4.3 | 4.5 |
Level 3 | Second Lien Debt | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 18,000 | |
Level 3 | Second Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 180,824 | $ 144,541 |
Level 3 | Second Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.117 | 0.078 |
Level 3 | Second Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.250 | 0.250 |
Level 3 | Second Lien Debt | Discounted Cash Flow | Weighted Average Cost of Capital | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.145 | 0.144 |
Level 3 | Second Lien Debt | Enterprise Value | Asset Coverage | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Fair Value | $ 2,123 | $ 14,274 |
Level 3 | Second Lien Debt | Enterprise Value | Asset Coverage | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.8 | 1 |
Level 3 | Second Lien Debt | Enterprise Value | Asset Coverage | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.8 | 1.4 |
Level 3 | Second Lien Debt | Enterprise Value | Asset Coverage | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 0.8 | 1.4 |
Level 3 | Second Lien Debt | Enterprise Value | EBITDA Multiples | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 5 | |
Level 3 | Second Lien Debt | Enterprise Value | EBITDA Multiples | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 5 | |
Level 3 | Second Lien Debt | Enterprise Value | EBITDA Multiples | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Investments, Range | 5 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Significant Unobservable Inputs by Valuation Technique to Determine Fair Value (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt investments | $ 368,817 | $ 357,429 |
Level 3 | Second Lien Debt | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt investments | $ 18,000 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt obligations carrying value | $ 403,000 | $ 357,000 |
Debt obligations fair value | 368,817 | 357,429 |
SBA Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt obligations carrying value | 153,000 | 107,000 |
Debt obligations fair value | 153,000 | 107,000 |
January 2026 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt obligations carrying value | 125,000 | 125,000 |
Debt obligations fair value | 111,854 | 125,258 |
November 2026 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt obligations carrying value | 125,000 | 125,000 |
Debt obligations fair value | 103,963 | 125,171 |
Credit Facility Borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt obligations carrying value | 0 | 0 |
Debt obligations fair value | $ 0 | $ 0 |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Carrying Value and Fair Value of Debt Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Secured Borrowings | $ 16,880 | $ 17,637 |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Inputs Used to Value Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt obligations | $ 368,817 | $ 357,429 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt obligations | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt obligations | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt obligations | $ 368,817 | $ 357,429 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Base management fee payable | $ 3,769 | $ 3,769 | $ 3,135 | |
Income incentive fee | 8,318 | 10,266 | $ 8,952 | |
Income incentive fee waiver | 0 | 0 | 423 | |
Income Incentive fee payable | 3,035 | $ 3,035 | 2,622 | |
Percentage of net capital gains | 20% | |||
Capital gains incentive fee payable | 7,556 | $ 7,556 | 6,136 | |
Aggregate amount of capital gains incentive fees | $ 6,484 | |||
Percentage of capital gains incentive fee accrued | 20% | |||
Capital gains incentive fee accrued (reversed). | $ (432) | 18,196 | (1,684) | |
Accrued capital gains incentive fee payable | 22,659 | $ 22,659 | 29,227 | |
Investment Advisory Agreement | ||||
Related Party Transaction [Line Items] | ||||
Management fees annual rate | 1.75% | |||
Base management fee | $ 14,568 | 12,874 | 12,932 | |
Base management fee payable | $ 3,769 | 3,769 | 3,135 | |
Base management fee waiver | $ 302 | 176 | 0 | |
Pre-incentive fee fixed hurdle rate | 2% | 2% | ||
Incentive fee | $ 0 | |||
Pre-incentive fee net investment income | 100% | |||
Payment percentage of preincentive fees net investment income | 20% | |||
Percentage of amount of pre-incentive fee net investment income | 20% | |||
Written notice period for termination of agreement | 60 days | |||
Investment Advisory Agreement | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Pre-incentive fee fixed hurdle rate | 2.50% | |||
Administration Agreement | ||||
Related Party Transaction [Line Items] | ||||
Administrative service expenses | $ 1,902 | 1,719 | $ 1,720 | |
Accrued administrative service expense payable | $ 700 | $ 700 | $ 634 | |
Limited Partnership Agreement | Fidus Equity Fund I, L.P. | Equity Investment | ||||
Related Party Transaction [Line Items] | ||||
Equity ownership percentage | 50% | 50% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||||||||||||
Aug. 17, 2022 | Nov. 02, 2021 | Oct. 08, 2021 | Feb. 16, 2021 | Jan. 19, 2021 | Dec. 23, 2020 | Jun. 26, 2020 | Oct. 23, 2019 | Apr. 24, 2019 | Feb. 19, 2019 | Feb. 02, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 16, 2019 | Feb. 08, 2019 | Feb. 22, 2018 | |
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument asset coverage percentage | 280% | 282.20% | |||||||||||||||
Aggregate principal amount | $ 153,000,000 | $ 107,000,000 | |||||||||||||||
Weighted average interest rate | 4.037% | 3.724% | 4.68% | ||||||||||||||
Offering expenses | $ 9,776,000 | $ 8,601,000 | |||||||||||||||
Loss on extinguishment of debt | (251,000) | (4,263,000) | $ (299,000) | ||||||||||||||
Secured borrowings | 16,880,000 | 17,637,000 | |||||||||||||||
Aggregate amount of outstanding of senior securities | 266,880,000 | 267,637,000 | |||||||||||||||
Fair value of loans included in investments | $ 16,875,000 | $ 17,522,000 | |||||||||||||||
Credit facility, interest rate per annum | 1.20% | 1.375% | 1.375% | ||||||||||||||
SBA Debentures | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average interest rate | 3.479% | 2.676% | 3.297% | ||||||||||||||
Offering expenses | $ 4,524,000 | $ 3,022,000 | |||||||||||||||
Prepayment of debentures | $ 30,000,000 | $ 63,500,000 | $ 16,500,000 | ||||||||||||||
Debt instrument, maturity year range, start | 2025 | 2025 | 2024 | ||||||||||||||
Debt instrument, maturity year range, end | 2028 | 2028 | 2028 | ||||||||||||||
Loss on extinguishment of debt | $ (251,000) | $ (4,263,000) | $ 299,000 | ||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||
Interest rate payment term | semi-annually on March 1 and September 1 | ||||||||||||||||
Unused commitments amount | $ 37,000,000 | $ 63,000,000 | |||||||||||||||
Secured Borrowings | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average interest rate | 7.786% | 4.392% | |||||||||||||||
5.875% Notes Due 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 43,478,000 | ||||||||||||||||
Interest rate | 5.875% | ||||||||||||||||
Debt instrument additional aggregate principal amount | $ 6,522,000 | ||||||||||||||||
Net proceeds from the notes | $ 48,062,000 | ||||||||||||||||
Underwriting discounts | 1,500,000 | ||||||||||||||||
Offering expenses | $ 438,000 | ||||||||||||||||
Debt instrument redemption of aggregate principal amount | $ 50,000,000 | ||||||||||||||||
Loss on extinguishment of debt | $ (794,000) | ||||||||||||||||
6.000% Notes Due 2024 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 69,000,000 | $ 60,000,000 | |||||||||||||||
Interest rate | 6% | ||||||||||||||||
Debt instrument additional aggregate principal amount | $ 9,000,000 | ||||||||||||||||
Net proceeds from the notes | $ 66,521,000 | ||||||||||||||||
Underwriting discounts | 2,070,000 | ||||||||||||||||
Offering expenses | $ 409,000 | ||||||||||||||||
Debt instrument redemption of aggregate principal amount | 50,000,000 | ||||||||||||||||
Debt instrument redemption of remaining aggregate principal amount | $ 19,000,000 | ||||||||||||||||
Loss on extinguishment of debt | (313,000) | $ (1,081,000) | |||||||||||||||
5.375% Notes Due 2024 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 55,000,000 | ||||||||||||||||
Interest rate | 5.375% | ||||||||||||||||
Debt instrument additional aggregate principal amount | $ 8,250,000 | ||||||||||||||||
Net proceeds from the notes | 61,053,000 | ||||||||||||||||
Underwriting discounts | 1,898,000 | ||||||||||||||||
Offering expenses | $ 300,000 | ||||||||||||||||
Debt instrument redemption of aggregate principal amount | 63,250,000 | ||||||||||||||||
Loss on extinguishment of debt | $ (1,311,000) | ||||||||||||||||
4.75% Notes due 2026 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Jan. 31, 2026 | ||||||||||||||||
Aggregate principal amount | $ 125,000,000 | ||||||||||||||||
Interest rate | 4.75% | ||||||||||||||||
Net proceeds from the notes | $ 122,100,000 | ||||||||||||||||
Underwriting discounts | 2,500,000 | ||||||||||||||||
Offering expenses | $ 400,000 | ||||||||||||||||
Debt instrument, redemption description | The January 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the January 2026 Notes is payable on January 31 and July 31 of each year. The Company does not intend to list the January 2026 Notes on any securities exchange or automated dealer quotation system. | ||||||||||||||||
3.50% Notes Due 2026 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Nov. 15, 2026 | ||||||||||||||||
Aggregate principal amount | $ 125,000,000 | ||||||||||||||||
Interest rate | 3.50% | ||||||||||||||||
Net proceeds from the notes | $ 122,095,000 | ||||||||||||||||
Underwriting discounts | $ 2,505,000 | ||||||||||||||||
Percentage of public offering price | 99.996% | ||||||||||||||||
Offering expenses | $ 400,000 | ||||||||||||||||
Debt instrument, redemption description | The November 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option subject to a make whole provision if redeemed more than three months prior to maturity and at par thereafter. Interest on the November 2026 Notes is payable on May 15 and November 15 of each year. The Company does not intend to list the November 2026 Notes on any securities exchange or automated dealer quotation system. | ||||||||||||||||
2023 Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption of issued and outstanding amount | $ 50,000,000 | ||||||||||||||||
2024 Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption of issued and outstanding amount | $ 132,250,000 | ||||||||||||||||
Revolving Credit Facility | Credit Agreement | ING Capital LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Aug. 17, 2027 | Apr. 24, 2023 | |||||||||||||||
Interest rate after certain conditions satisfied | 2.675% | 2.50% | |||||||||||||||
Asset coverage ratio | 1.50% | 2% | |||||||||||||||
Senior asset coverage ratio | 2% | ||||||||||||||||
Remaining unused portion of Credit Facility commitment percentage | 0.50% | ||||||||||||||||
Performing first lien bank loans, minimum percentage | 35% | ||||||||||||||||
Revolving Credit Facility | Credit Agreement | ING Capital LLC | SOFR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate prior to certain conditions satisfied | 3% | 2.675% | |||||||||||||||
Revolving Credit Facility | Credit Agreement | ING Capital LLC | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility, interest rate per annum | 2.675% | ||||||||||||||||
Credit facility commitment percentage | 35% | ||||||||||||||||
Revolving Credit Facility | Credit Agreement | ING Capital LLC | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility, interest rate per annum | 2.50% |
Debt - Summary of Issued and Ou
Debt - Summary of Issued and Outstanding SBA Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | $ 153,000 | $ 107,000 |
3.277 % Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 25, 2015 | |
Maturity Date | Mar. 01, 2025 | |
Fixed Interest Rate | 3.277% | |
Total outstanding SBA debentures | $ 1,500 | 22,500 |
3.267% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 23, 2016 | |
Maturity Date | Mar. 01, 2026 | |
Fixed Interest Rate | 3.267% | |
Total outstanding SBA debentures | $ 1,500 | 1,500 |
3.249% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 23, 2016 | |
Maturity Date | Mar. 01, 2026 | |
Fixed Interest Rate | 3.249% | |
Total outstanding SBA debentures | $ 2,500 | 2,500 |
2.793% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 21, 2016 | |
Maturity Date | Sep. 01, 2026 | |
Fixed Interest Rate | 2.793% | |
Total outstanding SBA debentures | $ 500 | 500 |
3.260% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 20, 2017 | |
Maturity Date | Sep. 01, 2027 | |
Fixed Interest Rate | 3.26% | |
Total outstanding SBA debentures | $ 1,000 | 1,000 |
3.190% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 20, 2017 | |
Maturity Date | Sep. 01, 2027 | |
Fixed Interest Rate | 3.19% | |
Total outstanding SBA debentures | $ 33,000 | 33,000 |
3.534% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 21, 2018 | |
Maturity Date | Mar. 01, 2028 | |
Fixed Interest Rate | 3.534% | |
Total outstanding SBA debentures | $ 0 | 9,000 |
2.377% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 25, 2019 | |
Maturity Date | Sep. 01, 2029 | |
Fixed Interest Rate | 2.377% | |
Total outstanding SBA debentures | $ 7,500 | 7,500 |
2.172% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 25, 2020 | |
Maturity Date | Mar. 01, 2030 | |
Fixed Interest Rate | 2.172% | |
Total outstanding SBA debentures | $ 6,000 | 6,000 |
1.398% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 22, 2021 | |
Maturity Date | Sep. 01, 2031 | |
Fixed Interest Rate | 1.398% | |
Total outstanding SBA debentures | $ 11,500 | 11,500 |
3.209% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Mar. 23, 2022 | |
Maturity Date | Mar. 01, 2032 | |
Fixed Interest Rate | 3.209% | |
Total outstanding SBA debentures | $ 43,500 | $ 12,000 |
4.533% Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
Pooling Date | Sep. 21, 2022 | |
Maturity Date | Sep. 01, 2032 | |
Fixed Interest Rate | 4.533% | |
Total outstanding SBA debentures | $ 17,500 | |
4.855% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | 4,000 | |
4.757% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | 3,000 | |
5.123% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | 3,000 | |
5.221% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | 5,000 | |
5.341% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | 5,000 | |
5.243% Fixed Interest Rate | SBA Debentures | ||
Debt Instrument [Line Items] | ||
Total outstanding SBA debentures | $ 7,000 |
Debt - Summary of Issued and _2
Debt - Summary of Issued and Outstanding SBA Debentures (Parenthetical) (Details) - SBA Debentures - Forecast $ in Thousands | Mar. 31, 2023 USD ($) |
4.855% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 4,000 |
Debt instrument interim interest rate | 4.855% |
4.757% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 3,000 |
Debt instrument interim interest rate | 4.757% |
5.123% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 3,000 |
Debt instrument interim interest rate | 5.123% |
5.221% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 5,000 |
Debt instrument interim interest rate | 5.221% |
5.341% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 5,000 |
Debt instrument interim interest rate | 5.341% |
5.243% Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Debt instrument issued amount | $ 7,000 |
Debt instrument interim interest rate | 5.243% |
Debt - Summary of Interest and
Debt - Summary of Interest and Fees Related to Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Stated interest expense | $ 16,561 | $ 16,949 | $ 17,407 |
Amortization of deferred financing costs | 2,104 | 2,215 | 2,271 |
Total interest and financing expenses | $ 18,665 | $ 19,164 | $ 19,678 |
Weighted average stated interest rate, period end | 4.037% | 3.724% | 4.68% |
Unused commitment fee rate, period end | 1.20% | 1.375% | 1.375% |
SBA Debentures | |||
Debt Instrument [Line Items] | |||
Stated interest expense | $ 3,747 | $ 3,810 | $ 5,140 |
Amortization of deferred financing costs | 598 | 532 | 549 |
Total interest and financing expenses | $ 4,345 | $ 4,342 | $ 5,689 |
Weighted average stated interest rate, period end | 3.479% | 2.676% | 3.297% |
Credit Facility | |||
Debt Instrument [Line Items] | |||
Stated interest expense | $ 1,424 | $ 1,467 | $ 1,642 |
Amortization of deferred financing costs | 394 | 453 | 397 |
Total interest and financing expenses | $ 1,818 | $ 1,920 | $ 2,039 |
Unused commitment fee rate, period end | 1.20% | 1.375% | 1.375% |
Secured Borrowings | |||
Debt Instrument [Line Items] | |||
Stated interest expense | $ 1,078 | $ 427 | |
Total interest and financing expenses | $ 1,078 | $ 427 | |
Weighted average stated interest rate, period end | 7.786% | 4.392% | |
Notes | |||
Debt Instrument [Line Items] | |||
Stated interest expense | $ 10,312 | $ 11,245 | $ 10,625 |
Amortization of deferred financing costs | 1,112 | 1,230 | 1,325 |
Total interest and financing expenses | $ 11,424 | $ 12,475 | $ 11,950 |
Weighted average stated interest rate, period end | 4.125% | 4.125% | 5.342% |
Debt - Summary of Deferred Fina
Debt - Summary of Deferred Financing Costs Amortized into Interest and Financing Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
SBA debenture commitment fees | $ 3,000 | $ 2,500 |
SBA debenture leverage fees | 6,389 | 4,538 |
Credit Facility upfront fees | 4,417 | 3,238 |
Notes underwriting discounts | 5,005 | 5,005 |
Notes debt issue costs | 685 | 685 |
Total deferred financing costs | 19,496 | 15,966 |
Less: accumulated amortization | (9,720) | (7,365) |
Unamortized deferred financing costs | 9,776 | 8,601 |
SBA Debentures | ||
Line of Credit Facility [Line Items] | ||
SBA debenture commitment fees | 3,000 | 2,500 |
SBA debenture leverage fees | 6,389 | 4,538 |
Total deferred financing costs | 9,389 | 7,038 |
Less: accumulated amortization | (4,865) | (4,016) |
Unamortized deferred financing costs | 4,524 | 3,022 |
Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit Facility upfront fees | 4,417 | 3,238 |
Total deferred financing costs | 4,417 | 3,238 |
Less: accumulated amortization | (3,037) | (2,643) |
Unamortized deferred financing costs | 1,380 | 595 |
Notes | ||
Line of Credit Facility [Line Items] | ||
Notes underwriting discounts | 5,005 | 5,005 |
Notes debt issue costs | 685 | 685 |
Total deferred financing costs | 5,690 | 5,690 |
Less: accumulated amortization | (1,818) | (706) |
Unamortized deferred financing costs | $ 3,872 | $ 4,984 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt Net of Unamortized Deferred Financing Costs (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 403,000,000 | $ 357,000,000 |
Less: unamortized deferred financing costs | (9,776,000) | (8,601,000) |
Debt, net of deferred financing costs | 393,224,000 | 348,399,000 |
Debt, net of deferred financing costs | 0 | |
SBA Debentures | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 153,000,000 | 107,000,000 |
Less: unamortized deferred financing costs | (4,524,000) | (3,022,000) |
Debt, net of deferred financing costs | 148,476,000 | 103,978,000 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs | (1,380,000) | (595,000) |
Debt, net of deferred financing costs | (1,380,000) | (595,000) |
Notes | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 250,000,000 | 250,000,000 |
Less: unamortized deferred financing costs | (3,872,000) | (4,984,000) |
Debt, net of deferred financing costs | $ 246,128,000 | $ 245,016,000 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt Net of Unamortized Deferred Financing Costs (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Secured Borrowings | $ 16,880 | $ 17,637 |
Debt - Scheduled to Mature Debt
Debt - Scheduled to Mature Debt Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2025 | $ 1,500 |
2026 | 271,380 |
2027 | 34,000 |
Thereafter | 113,000 |
Total Amount Outstanding Exclusive of Treasury | 419,880 |
SBA Debentures | |
Debt Instrument [Line Items] | |
2025 | 1,500 |
2026 | 4,500 |
2027 | 34,000 |
Thereafter | 113,000 |
Total Amount Outstanding Exclusive of Treasury | 153,000 |
Secured Borrowings | |
Debt Instrument [Line Items] | |
2026 | 16,880 |
Total Amount Outstanding Exclusive of Treasury | 16,880 |
Notes | |
Debt Instrument [Line Items] | |
2026 | 250,000 |
Total Amount Outstanding Exclusive of Treasury | $ 250,000 |
Debt - Scheduled to Mature De_2
Debt - Scheduled to Mature Debt Liabilities (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Disclosure [Abstract] | |
Credit facility maturity date | Aug. 17, 2027 |
Outstanding borrowings | $ 0 |
Debt - Information about Senior
Debt - Information about Senior Securities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SBA Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 153,000 | $ 107,000 | $ 147,000 | $ 157,500 | $ 191,000 | $ 231,300 | $ 224,000 | $ 213,500 | $ 173,500 | $ 144,500 |
Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 25,000 | $ 36,500 | $ 11,500 | $ 15,500 | $ 10,000 | |||||
Asset Coverage per Unit | $ 2,800 | $ 2,822 | $ 2,337 | $ 2,989 | $ 5,659 | $ 35,198 | $ 16,959 | $ 25,326 | ||
2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 50,000 | $ 50,000 | $ 50,000 | |||||||
Asset Coverage per Unit | $ 2,337 | $ 2,989 | $ 5,659 | |||||||
Average Market Value per Unit | $ 24.12 | $ 25.81 | $ 25.74 | |||||||
February 2024 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 69,000 | $ 69,000 | ||||||||
Asset Coverage per Unit | $ 2,337 | $ 2,989 | ||||||||
Average Market Value per Unit | $ 24.60 | $ 25.97 | ||||||||
November 2024 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 63,250 | $ 63,250 | ||||||||
Asset Coverage per Unit | $ 2,337 | $ 2,989 | ||||||||
Average Market Value per Unit | $ 23.20 | $ 25.75 | ||||||||
January 2026 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 125,000 | $ 125,000 | $ 125,000 | |||||||
Asset Coverage per Unit | $ 2,800 | $ 2,822 | $ 2,337 | |||||||
November 2026 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 125,000 | $ 125,000 | ||||||||
Asset Coverage per Unit | $ 2,800 | $ 2,822 | ||||||||
Secured Borrowings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Amount Outstanding Exclusive of Treasury Securities | $ 16,880 | $ 17,637 | ||||||||
Asset Coverage per Unit | $ 2,800 | $ 2,822 |
Debt - Information about Seni_2
Debt - Information about Senior Securities (Parenthetical) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Indebtedness threshold asset coverage ratio per unit. | $ 1,000 |
Senior Security Indebtedness Threshold per Average Market Value per Unit | 1,000 |
Average market value per Unit increase amount | $ 25 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments outstanding to fund various undrawn revolving loans, other debt investments and capital commitments. | $ 16,915 | $ 8,170 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary Of Outstanding Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Total Commitment | $ 24,651 | $ 13,727 |
Unfunded Commitment | 16,915 | 8,170 |
Acendre Midco, Inc. - Revolving Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 1,000 | 1,000 |
Unfunded Commitment | 1,000 | 1,000 |
Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) - Revolving Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 1,000 | |
Unfunded Commitment | 1,000 | |
Combined Systems, Inc. - Revolving Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 4,000 | 4,000 |
Unfunded Commitment | 162 | 605 |
EBL, LLC (EbLens) - Common Equity (Units) | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 375 | |
Unfunded Commitment | 375 | |
Elements Brands, LLC - Revolving Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 1,500 | 3,000 |
Unfunded Commitment | 838 | |
Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 300 | |
Unfunded Commitment | 300 | |
Netbase Solutions, Inc. (dba Netbase Quid) - First Lien Debt (last out) | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 3,000 | |
Unfunded Commitment | 3,000 | |
R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - First Lien Debt | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 2,489 | |
Unfunded Commitment | 2,489 | |
R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Senior Subordinated Debt | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 417 | |
Unfunded Commitment | 417 | |
R1 Holdings, LLC (dba RoadOne IntermodaLogistics) - Common Equity | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 70 | |
Unfunded Commitment | 70 | |
Rhino Assembly Company, LLC - Delayed Draw Commitment | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 875 | |
Unfunded Commitment | 875 | |
Safety Products Group, LLC - Common Equity (Units) | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 2,852 | |
Unfunded Commitment | 2,852 | |
Tedia Company, LLC - Revolving Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 4,000 | |
Unfunded Commitment | 2,400 | |
Tedia Company, LLC - Delayed Draw Term Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 3,000 | |
Unfunded Commitment | 3,000 | |
Western's Smokehouse, LLC - Delayed Draw Term Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 3,500 | |
Unfunded Commitment | $ 2,702 | |
Wonderware Holdings, LLC (dba CORE Business Technologies) - Delayed Draw Term Loan | ||
Loss Contingencies [Line Items] | ||
Total Commitment | 2,000 | |
Unfunded Commitment | $ 2,000 |
Common Stock - Summary of Commo
Common Stock - Summary of Common Stock (Details) $ / shares in Units, $ in Thousands | 139 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Stockholders' Equity Note [Abstract] | |
Cumulative number of shares | shares | 14,388,414 |
Cumulative gross proceeds from issuance of common stock | $ 236,597 |
Cumulative underwriting fees and commission and offering costs | $ 8,989 |
Weighted average offering Price | $ / shares | $ 16.44 |
Common Stock - Summary of Com_2
Common Stock - Summary of Common Stock (Parenthetical) (Details) $ in Thousands | 139 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Cumulative Underwriting Fees and Commission and Offering Costs | $ 8,989 |
Fidus Investment Advisors LLC | |
Related Party Transaction [Line Items] | |
Cumulative Underwriting Fees and Commission and Offering Costs | $ 1,925 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 10, 2022 | |
Class of Stock [Line Items] | |||||
Maximum common stock can be purchased under repurchase program | $ 5,000,000 | $ 5,000,000 | |||
Number of shares repurchased under repurchase program | 25,719 | ||||
Number of shares repurchased under repurchase program, value | $ 0 | $ 0 | $ 268,000 | ||
Increase in NAV per share | $ 0.01 | ||||
Common Stock, Shares, Outstanding | 24,727,788 | 24,727,788 | 24,437,400 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares issued during the period | 290,388 | 0 | 0 | ||
Maximum aggregate offering price of common stock under at-the-market program | $ 50,000,000 | ||||
Maximum common stock can be purchased under repurchase program | $ 5,000,000 | $ 5,000,000 | |||
Number of shares repurchased under repurchase program | 0 | 0 | 25,719 | ||
Number of shares repurchased under repurchase program, value | $ 268,000 | ||||
Available under ATM program | $ 44,100,000 | ||||
Common Stock | Raymond James & Associates, Inc. and B. Riley Securities, Inc. | |||||
Class of Stock [Line Items] | |||||
Shares issued during the period | 290,388 | 290,388 |
Common Stock - Summary of Equit
Common Stock - Summary of Equity ATM Program (Details) - Common Stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||
Number of Shares Sold | 290,388 | 0 | 0 | |
Raymond James & Associates, Inc. and B. Riley Securities, Inc. | ||||
Class of Stock [Line Items] | ||||
Number of Shares Sold | 290,388 | 290,388 | ||
Gross Proceeds Received | $ 5,900 | $ 5,900 | ||
Sales Agent Commissions and Offering Costs | $ 89 | $ 89 | ||
Weighted-Average Price | $ 20.32 | $ 20.32 |
Common Stock - Summary of Equ_2
Common Stock - Summary of Equity ATM Program (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Stockholders' Equity Note [Abstract] | |
Net proceeds from common stock under ATM program | $ 5,811 |
Common Stock - Summary of Repur
Common Stock - Summary of Repurchases of Common Stock (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||
Number of shares repurchased | 25,719 | ||
Cost of shares repurchased, including commissions | $ 0 | $ 0 | $ 268,000 |
Weighted average price per share | $ 10.37 | ||
Weighted average discount to net asset value at quarter end prior to repurchases | 38.50% |
Dividends and Distributions - S
Dividends and Distributions - Summary of Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||||
Nov. 03, 2022 | Aug. 01, 2022 | May 02, 2022 | Feb. 15, 2022 | Nov. 01, 2021 | Aug. 02, 2021 | May 03, 2021 | Feb. 09, 2021 | Oct. 26, 2020 | Aug. 03, 2020 | Apr. 29, 2020 | Feb. 14, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Jun. 10, 2022 | Mar. 11, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | Jun. 14, 2021 | Mar. 12, 2021 | Dec. 04, 2020 | Sep. 11, 2020 | Jun. 12, 2020 | Mar. 13, 2020 | |||||
Payment Date | Jun. 24, 2022 | Mar. 25, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | Jun. 28, 2021 | Mar. 26, 2021 | Dec. 18, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | |||||
Amount Per Share | $ 0.36 | $ 0.36 | $ 0.32 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.39 | $ 2 | $ 1.60 | $ 1.33 | ||
Total Distribution | $ 8,797 | $ 8,797 | $ 7,820 | $ 7,820 | $ 7,576 | $ 7,575 | $ 7,331 | $ 7,331 | $ 7,331 | $ 9,537 | $ 49,052 | $ 39,100 | $ 32,508 | ||
Cash Distribution | $ 8,797 | $ 8,797 | $ 7,820 | $ 7,820 | $ 7,576 | $ 7,575 | $ 7,331 | $ 7,331 | $ 7,331 | $ 9,537 | $ 49,052 | $ 39,100 | $ 32,508 | ||
Special Dividend | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Dec. 02, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | ||||||||||||
Payment Date | Dec. 16, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | ||||||||||||
Amount Per Share | $ 0.10 | $ 0.05 | $ 0.04 | ||||||||||||
Total Distribution | $ 2,473 | $ 1,222 | $ 977 | ||||||||||||
Cash Distribution | $ 2,473 | $ 1,222 | $ 977 | ||||||||||||
Supplemental Dividend | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Dec. 02, 2022 | Jun. 10, 2022 | Mar. 11, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | Jun. 14, 2021 | Mar. 12, 2021 | Dec. 04, 2020 | |||||||
Payment Date | Dec. 16, 2022 | Jun. 24, 2022 | Mar. 25, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | Jun. 28, 2021 | Mar. 26, 2021 | Dec. 18, 2020 | |||||||
Amount Per Share | $ 0.08 | $ 0.07 | $ 0.17 | $ 0.04 | $ 0.06 | $ 0.08 | $ 0.07 | $ 0.04 | |||||||
Total Distribution | $ 1,978 | $ 1,712 | $ 4,154 | $ 978 | $ 1,466 | $ 1,955 | $ 1,711 | $ 978 | |||||||
Cash Distribution | $ 1,978 | $ 1,712 | $ 4,154 | $ 978 | $ 1,466 | $ 1,955 | $ 1,711 | $ 978 | |||||||
Dividend One | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Sep. 09, 2022 | ||||||||||||||
Payment Date | Sep. 23, 2022 | ||||||||||||||
Amount Per Share | $ 0.36 | ||||||||||||||
Total Distribution | $ 8,797 | ||||||||||||||
Cash Distribution | $ 8,797 | ||||||||||||||
Dividend Two | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Dec. 02, 2022 | ||||||||||||||
Payment Date | Dec. 16, 2022 | ||||||||||||||
Amount Per Share | $ 0.36 | ||||||||||||||
Total Distribution | $ 8,902 | ||||||||||||||
Cash Distribution | $ 8,902 | ||||||||||||||
Supplemental Dividend One | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Sep. 09, 2022 | ||||||||||||||
Payment Date | Sep. 23, 2022 | ||||||||||||||
Amount Per Share | $ 0.07 | ||||||||||||||
Total Distribution | $ 1,711 | ||||||||||||||
Cash Distribution | $ 1,711 | ||||||||||||||
Supplemental Dividend Two | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Record Date | Dec. 02, 2022 | ||||||||||||||
Payment Date | Dec. 16, 2022 | ||||||||||||||
Amount Per Share | $ 0.07 | ||||||||||||||
Total Distribution | $ 1,731 | ||||||||||||||
Cash Distribution | $ 1,731 |
Dividends and Distributions -_2
Dividends and Distributions - Schedule of Purchased and Reissued Shares to Satisfy the DRIP Obligation (Details) - DRIP - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends Payable [Line Items] | ||||||||||||||||
Number of Shares Purchased and Reissued | 23,026 | 21,114 | 20,233 | 20,380 | 18,283 | 18,201 | 17,042 | 15,562 | 20,222 | 28,871 | 21,904 | 31,586 | 84,753 | 69,088 | 102,583 | |
Average Price Paid Per Share | $ 18.99 | $ 17.08 | $ 17.89 | $ 20.51 | $ 17.42 | $ 17.82 | $ 17.20 | $ 15.62 | $ 12.91 | $ 10.18 | $ 9.04 | $ 7.58 | $ 18.61 | $ 17.05 | $ 9.67 | |
Total Amount Paid | $ 437 | $ 360 | $ 362 | $ 418 | $ 318 | $ 324 | $ 293 | $ 243 | $ 261 | $ 294 | $ 198 | $ 239 | $ 1,577 | $ 1,178 | $ 992 |
Financial Highlights - Schedule
Financial Highlights - Schedule of Financial Highlights (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Company, Financial Highlights [Line Items] | ||||||||||
Net asset value at beginning of period | $ 19.96 | $ 16.81 | $ 16.85 | $ 16.47 | $ 16.05 | $ 15.76 | $ 15.17 | $ 15.16 | $ 15.35 | $ 15.32 |
Net investment income | 1.90 | 1.03 | 1.62 | 1.31 | 1.43 | 1.44 | 1.45 | 1.64 | 1.62 | 1.43 |
Net realized gain (loss) on investments, net of tax (provision) | 2.61 | 2.19 | (0.06) | (0.05) | (0.45) | 0.67 | (0.77) | 0.58 | (1.18) | 2.22 |
Taxes paid on deemed distributions | (0.35) | (0.21) | ||||||||
Net unrealized appreciation (depreciation) on investments | (2.69) | 1.70 | (0.27) | 0.74 | 1.05 | (0.23) | 1.59 | (0.62) | 0.92 | (1.64) |
Realized losses on extinguishment of debt | (0.01) | (0.17) | (0.01) | (0.02) | (0.01) | (0.01) | ||||
Total increase from investment operations | 1.46 | 4.75 | 1.28 | 1.98 | 2.02 | 1.87 | 2.27 | 1.60 | 1.36 | 2.01 |
Accretive (dilutive) effect of share issuances and repurchases | 0.02 | 0.01 | 0.01 | 0.02 | (0.05) | 0.02 | 0.19 | 0.18 | ||
Dividends declared to stockholders | (1.19) | (1.60) | (1.33) | (1.60) | (1.60) | (1.60) | (1.60) | (1.60) | (0.97) | (1.21) |
Distributions from capital gains | (0.81) | (0.75) | (0.73) | |||||||
Other | (0.01) | (0.01) | (0.03) | (0.01) | (0.02) | (0.01) | ||||
Net asset value at end of period | 19.43 | 19.96 | 16.81 | 16.85 | 16.47 | 16.05 | 15.76 | 15.17 | 15.16 | 15.35 |
Market value at end of period | $ 19.03 | $ 17.98 | $ 13.10 | $ 14.84 | $ 11.69 | $ 15.18 | $ 15.73 | $ 13.69 | $ 14.85 | $ 21.74 |
Shares outstanding at end of period | 24,727,788 | 24,437,400 | 24,437,400 | 24,463,119 | 24,463,119 | 24,507,940 | 22,446,076 | 16,300,732 | 16,051,037 | 13,755,232 |
Weighted average number of shares outstanding - basic | 24,468,172 | 24,437,400 | 24,442,431 | |||||||
Weighted average number of shares outstanding - diluted | 24,468,172 | 24,437,400 | 24,442,431 | 24,463,119 | 24,471,730 | 23,527,188 | 18,283,715 | 16,201,449 | 14,346,438 | 13,524,368 |
Net assets at end of period | $ 480,343 | $ 487,764 | $ 410,760 | $ 412,310 | $ 402,985 | $ 393,273 | $ 353,785 | $ 247,362 | $ 243,263 | $ 211,125 |
Average net assets | $ 482,594 | $ 437,690 | $ 392,866 | $ 404,284 | $ 398,440 | $ 376,292 | $ 289,453 | $ 245,706 | $ 222,737 | $ 209,136 |
Total expenses | 12% | 15.40% | 11.80% | 11.20% | 10.70% | 9.80% | 11.70% | 11.30% | 10.30% | 11% |
Net investment income | 9.60% | 5.70% | 10.10% | 7.90% | 8.80% | 9% | 9.20% | 10.80% | 10.50% | 9.20% |
Total return based on market value | 3.20% | 23.80% | 2.40% | (23.80%) | 44% | |||||
Total return based on market value | 17.70% | 53.90% | 1% | 37.60% | (15.80%) | |||||
Total return based on net asset value | 7.30% | 28.30% | 7.60% | 12% | 12.60% | 11.90% | 15% | 10.60% | 8.90% | 13.10% |
Portfolio turnover ratio | 29.50% | 29.30% | 22.50% | 18.90% | 44.90% | |||||
Portfolio turnover ratio | 23.90% | 47.70% | 25.80% | 17.20% | 29.50% | |||||
Average debt outstanding | $ 397,244 | $ 380,997 | $ 385,350 | $ 319,050 | $ 271,560 | $ 219,920 | $ 221,200 | $ 199,340 | $ 152,700 | $ 144,500 |
Average debt per share | $ 16.24 | $ 15.59 | $ 15.77 | $ 13.04 | $ 11.10 | $ 9.35 | $ 12.10 | $ 12.30 | $ 10.64 | $ 10.68 |
Financial Highlights - Schedu_2
Financial Highlights - Schedule of Financial Highlights (Parenthetical) (Details) | 12 Months Ended | |||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Company, Financial Highlights [Abstract] | ||||||||||
Incentive fee waived | 0% | 0% | (0.11%) | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Expenses other than incentive fee | 10.40% | 8.90% | 10.10% | 8.50% | 7.60% | 6.90% | 8.10% | 8.70% | 8.10% | 7.80% |
Incentive fee, net of incentive fee waiver | 1.60% | 6.50% | 1.70% | 2.70% | 3.10% | 2.90% | 3.60% | 2.60% | 2.20% | 3.20% |
Total expenses | 12% | 15.40% | 11.80% | 11.20% | 10.70% | 9.80% | 11.70% | 11.30% | 10.30% | 11% |
Total expenses, before base management fee waiver | 12.10% | 15.40% | 11.80% | 11.20% | 10.70% | 9.80% | 11.70% | 11.30% | 10.30% | 11% |
Base management fee waiver | (0.10%) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) - Schedule of Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||
Total investment income | $ 27,474 | $ 24,992 | $ 21,153 | $ 20,518 | $ 24,101 | $ 21,229 | $ 21,826 | $ 23,290 | $ 23,630 | $ 21,077 | $ 20,433 | $ 19,983 | $ 94,137 | $ 90,446 | $ 85,123 | ||||||||
Net investment income | 12,484 | 12,719 | 11,008 | 10,338 | 2,448 | 5,118 | 6,473 | 11,081 | 6,038 | 6,902 | 9,291 | 17,417 | 46,549 | 25,120 | 39,648 | ||||||||
Net increase in net assets from operations | $ 4,723 | $ 11,428 | $ 7,981 | $ 11,690 | $ 50,238 | $ 28,442 | $ 25,886 | $ 11,538 | $ 29,517 | $ 20,707 | $ 7,973 | $ (26,971) | $ 35,822 | $ 116,104 | $ 31,226 | ||||||||
Net investment income per share-basic | $ 0.51 | $ 0.52 | $ 0.45 | $ 0.42 | $ 0.10 | $ 0.21 | $ 0.26 | $ 0.45 | $ 0.25 | $ 0.28 | $ 0.38 | $ 0.71 | $ 1.90 | $ 1.03 | $ 1.62 | ||||||||
Net investment income per share-diluted | 0.51 | 0.52 | 0.45 | 0.42 | 0.10 | 0.21 | 0.26 | 0.45 | 0.25 | 0.28 | 0.38 | 0.71 | 1.90 | 1.03 | 1.62 | ||||||||
Net increase in net assets from operations per share | 0.19 | 0.47 | 0.33 | 0.48 | 2.06 | 1.16 | 1.06 | 0.47 | 1.20 | 0.85 | 0.33 | (1.10) | 1.46 | 4.75 | 1.28 | ||||||||
Net asset value per share at end of period | $ 19.43 | $ 19.41 | $ 19.80 | $ 19.91 | $ 19.96 | $ 18.31 | $ 17.57 | $ 16.90 | $ 16.81 | $ 15.94 | $ 15.39 | $ 15.37 | $ 19.43 | $ 19.96 | $ 16.81 | $ 16.85 | $ 16.47 | $ 16.05 | $ 15.76 | $ 15.17 | $ 15.16 | $ 15.35 | $ 15.32 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Percentage of excise tax | 4% | ||
Federal income tax rate | 21% | 21% | 21% |
Income tax expense at taxable subsidiaries | $ 1,809 | $ 1,827 | $ 628 |
Estimated undistributed ordinary taxable income | $ 28,818 | 18,562 | |
Estimated undistributed ordinary taxable income per share | $ 1.18 | ||
Estimated undistributed long term capital gains | $ 11,225 | 15,277 | |
Estimated undistributed long term capital gains per share | $ 0.45 | ||
Designate retained net capital gains | $ 40,801 | ||
Designate retained net capital gains per share | $ 1.65 | ||
United States federal income taxes behalf of stockholders related deemed distribution | $ 8,568 | ||
United States federal income taxes behalf of stockholders related deemed distribution per share | $ 0.35 | ||
Cost of investments | $ 811,962 | $ 623,527 | |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Percentage of investment company taxable income | 90% | ||
Percentage of taxable income | 98% | ||
Percentage of net capital gains realized | 98.20% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Taxable Income and Total Distributions Declared to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Net increase in net assets resulting from operations | $ 4,723 | $ 11,428 | $ 7,981 | $ 11,690 | $ 50,238 | $ 28,442 | $ 25,886 | $ 11,538 | $ 29,517 | $ 20,707 | $ 7,973 | $ (26,971) | $ 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 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Character of Distributions to Common Stockholders (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||||||
May 02, 2022 | Feb. 15, 2022 | Nov. 01, 2021 | Aug. 02, 2021 | May 03, 2021 | Feb. 09, 2021 | Oct. 26, 2020 | Aug. 03, 2020 | Apr. 29, 2020 | Feb. 14, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||||
Ordinary income | $ 29,135 | $ 39,100 | $ 32,508 | ||||||||||
Long term capital gains | 19,917 | ||||||||||||
Dividends, Total | $ 8,797 | $ 8,797 | $ 7,820 | $ 7,820 | $ 7,576 | $ 7,575 | $ 7,331 | $ 7,331 | $ 7,331 | $ 9,537 | $ 49,052 | $ 39,100 | $ 32,508 |
Income Taxes - Summary of Tax B
Income Taxes - Summary of Tax Basis Components of Distributable Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
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) |
Distributed Earnings, Total | $ 84,646 | $ 125,933 |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal Income Tax Purposes Cost of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
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 |
Income Taxes - Summary of Perma
Income Taxes - Summary of Permanent Book to Tax Difference of Additional Paid in Capital and Total Distributable Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Additional paid-in capital | $ (4,176) | $ (2,175) | $ (1,811) |
Total distributable earnings | $ 4,176 | $ 2,175 | $ 1,811 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 28, 2023 | Feb. 23, 2023 | Feb. 15, 2023 | Nov. 03, 2022 | May 02, 2022 | Feb. 15, 2022 | Nov. 01, 2021 | Aug. 02, 2021 | May 03, 2021 | Feb. 09, 2021 | Oct. 26, 2020 | Aug. 03, 2020 | Apr. 29, 2020 | Feb. 14, 2020 | Feb. 28, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 01, 2023 | Feb. 27, 2023 | |
Subsequent Event [Line Items] | |||||||||||||||||||||
Investments at cost | $ 828,693 | $ 828,693 | $ 621,786 | ||||||||||||||||||
Dividends to stockholders | $ 0.36 | $ 0.36 | $ 0.32 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.39 | $ 2 | $ 2 | $ 1.60 | $ 1.33 | |||||||
Dividend payable date | Jun. 24, 2022 | Mar. 25, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | Jun. 28, 2021 | Mar. 26, 2021 | Dec. 18, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | |||||||||||
Dividend record date | Jun. 10, 2022 | Mar. 11, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | Jun. 14, 2021 | Mar. 12, 2021 | Dec. 04, 2020 | Sep. 11, 2020 | Jun. 12, 2020 | Mar. 13, 2020 | |||||||||||
Net proceeds from common stock under ATM program | $ 5,811 | ||||||||||||||||||||
Common Stock | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Number of Shares Sold | 290,388 | 0 | 0 | ||||||||||||||||||
Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividend declared date | Feb. 15, 2023 | ||||||||||||||||||||
Dividend payable date | Mar. 29, 2023 | ||||||||||||||||||||
Dividend record date | Mar. 22, 2023 | ||||||||||||||||||||
Subsequent Events | ATM Program | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Gross proceeds received | $ 2,395 | ||||||||||||||||||||
Net proceeds from common stock under ATM program | $ 2,359 | ||||||||||||||||||||
Subsequent Events | Common Stock | ATM Program | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Number of Shares Sold | 114,904 | ||||||||||||||||||||
Subsequent Events | 5.344% Fixed Interest Rate | SBA Debentures | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Debt instrument issued amount | $ 4,000 | ||||||||||||||||||||
Debt instrument interim interest rate | 5.344% | ||||||||||||||||||||
QED Parent Holdings, Inc. | First Lien Debt | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Investments at cost | $ 18,750 | ||||||||||||||||||||
CTM Group, Inc. | First Lien Debt, Subordinated Debt and Common Equity | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Investments at cost | $ 10,400 | $ 10,400 | |||||||||||||||||||
Investment Date | Feb. 28, 2023 | ||||||||||||||||||||
USG AS Holdings, LLC, | First Lien Debt | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Investments at cost | $ 11,000 | ||||||||||||||||||||
Investment Date | Feb. 23, 2023 | ||||||||||||||||||||
Quarterly Dividend | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividends to stockholders | $ 0.41 | ||||||||||||||||||||
Supplemental Dividend | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividends to stockholders | $ 0.08 | $ 0.07 | $ 0.17 | $ 0.04 | $ 0.06 | $ 0.08 | $ 0.07 | $ 0.04 | |||||||||||||
Dividend payable date | Dec. 16, 2022 | Jun. 24, 2022 | Mar. 25, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | Jun. 28, 2021 | Mar. 26, 2021 | Dec. 18, 2020 | |||||||||||||
Dividend record date | Dec. 02, 2022 | Jun. 10, 2022 | Mar. 11, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | Jun. 14, 2021 | Mar. 12, 2021 | Dec. 04, 2020 | |||||||||||||
Supplemental Dividend | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividends to stockholders | 0.15 | ||||||||||||||||||||
Special Dividend | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividends to stockholders | $ 0.10 | $ 0.05 | $ 0.04 | ||||||||||||||||||
Dividend payable date | Dec. 16, 2022 | Dec. 17, 2021 | Sep. 28, 2021 | ||||||||||||||||||
Dividend record date | Dec. 02, 2022 | Dec. 03, 2021 | Sep. 14, 2021 | ||||||||||||||||||
Special Dividend | Subsequent Events | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Dividends to stockholders | $ 0.10 |