Note 8. Unit Capital

As of September 30, 2017, the Company has five classes of units: Class A, Class C, Class I, Class W and Class Y units, with only Class A, Class C, Class I and Class Y units outstanding. The unit classes have different upfront sales commissions and dealer manager fees and there are ongoing distribution fees, dealer manager fees and/or service fees with respect to certain classes of units, including a distribution fee with respect to Class C units, an ongoing dealer manager fee with respect to Class I and Class W units, and an ongoing service fee with respect to Class W units. As of September 30, 2017, the Company recorded a liability in the aggregate amount of $1,961,000 for the estimated future amount of Class C unit distribution fee payable and Class I unit dealer manager fee payable. The estimated liability is calculated based on a net asset value per Class C and Class I units of $9.025 with distribution and dealer manager fees of 0.8% and 0.5%, respectively, per annum applied to the net asset value, during the expected period that Class C and Class I units remain outstanding, and discounted using an annual rate of 4%. All units participate in the income and expenses of the Company on a pro-rata basis based on the number of units outstanding. The following table is a summary of unit activity during the nine months ended September 30, 2017:

	Units							Units
	Outstanding				Units			Outstanding
	as of		Units Issued		Repurchased			as of
	December 31,		During		During			September 30,
	2016		the Period		the Period			2017
Class A units		15,391,991		3,072,172		(278,184	)		18,185,979
Class C units		6,803,985		1,548,378		(38,581	)		8,313,782
Class I units		7,411,405		3,113,568		(407,951	)		10,117,022
Class Y units		-		297,643		-			297,643
Total		29,607,381		8,031,761		(724,716	)		36,914,426

The total of 8,031,761 units issued during the nine months ended September 30, 2017 included 922,746 units issued under the DRP at a value of $8,321,794. As of September 30, 2017, no Class W units have been issued.

Beginning June 11, 2014, the Company commenced a unit repurchase program pursuant to which the Company may conduct quarterly unit repurchases of up to 5% of the weighted average number of outstanding units in any 12-month period to allow the Company’s unitholders, who have held units for a minimum of one year, to sell their units back to the Company at a price equal to the greater of the unit’s net asset value or $9.025. The unit repurchase program includes numerous restrictions, including a one-year holding period, that limit the ability of the Company’s unitholders to sell their units. Unless the Company’s board of managers determines otherwise, the Company will limit the number of units to be repurchased during any calendar year to the number of units that can be repurchased with the proceeds the Company receives from the sale of units under the Company’s DRP. At the sole discretion of the Company’s board of managers, the Company may also use cash on hand, cash available from borrowings and cash from the repayment or liquidation of investments as of the end of the applicable quarter to repurchase units.

During the nine months ended September 30, 2017, the Company received 98 repurchase requests for a total of 724,716 units at a repurchase price of $9.025 per unit. As of September 30, 2017, 52 of these repurchase requests were pending processing and were completed by the Company between October 5 to October 11, 2017.