NPORT-EX 2 keystone.htm HOLDINGS

Keystone Private Income Fund

Schedule of Investments

December 31, 2020 (Unaudited)

 

       Original        
Principal      Acquisition        
Amount      Date  Cost   Fair Value 
    Private Credit - 98.9%           
    Corporate Finance - 10.6%           
$2,282,003   ColdStream Energy Holdings, LLC, 11.75%, 3/1/20231,2  9/3/2020  $2,282,003   $2,282,003 
 10,000,000   FilmRise Acquisitions, LLC, 13.00%, 2/17/20211,2  7/1/2020   10,000,000    10,000,000 
            12,282,003    12,282,003 
                   
     Equipment Leasing - 28.2%             
 1,137,772   Carepoint Health Management Associates, LLC, 14.50%, 7/1/20231,2  12/2/2020   1,137,772    1,137,772 
 1,069,655   Firstronic, LLC, 12.00%, 11/1/20231,2  10/16/2020   1,069,655    1,069,655 
 48,804   KVJ Properties, Inc., 14.50%, 7/1/20231,2  12/4/2020   48,804    48,804 
 5,006,854   Lux Vending, LLC, 14.50%, 12/31/20221,2  8/6/2020   5,006,854    5,006,854 
 89,718   Metalogic Inspection Services LLC, 14.50%, 6/1/20231,2  11/9/2020   89,718    89,718 
 5,525,466   Mirarchi Brothers, Inc., 14.50%, 7/1/20231,2  12/24/2020   5,525,466    5,525,466 
 10,000,000   Onset Financial, Inc., 14.50%, 5/31/20261,2  12/11/2020   10,000,000    10,000,000 
 2,753,328   Sun-Tech Leasing of Texas, L.P., 12.00%, 10/1/20221,2  9/18/2020   2,753,328    2,753,328 
 7,184,868   Trico Products Corporation, 14.50%, 4/1/20231,2  7/23/2020   7,184,868    7,184,868 
            32,816,465    32,816,465 
                   
     Receivables Finance - 17.9%             
 8,697,297   CapitalPlus Construction Services, LLC, 13.25%, 10/1/20231,2  9/2/2020   8,697,297    8,697,297 
 2,617,269   Deserve CC Funding II, LLC, 13.25%, 12/20/20221,2  9/3/2020   2,617,269    2,617,269 
 2,190,192   DNF Associates, LLC, 12.75%, 10/31/20241,2  12/28/2020   2,190,192    2,190,192 
 5,209,177   Triton Credit Funding SPV, LLC, 13.00%, 2/1/20221,2  9/2/2020   5,209,177    5,209,177 
 2,106,640   Viva Funding SPV, LLC, 13.00%, 12/22/20241,2  12/23/2020   2,106,640    2,106,640 
            20,820,575    20,820,575 
                   
     Specialty Real Estate Finance - 42.2%             
 8,414,035   AHP Servicing, LLC, 12.00%, 7/30/20221,2  7/30/2020   8,414,035    8,414,035 
 5,296,398   Bonfire Aloha, LLC, 10.00%, 3/30/20221,2  12/11/2020   5,296,397    5,296,397 
 2,801,927   Brass Diablo LLC, 14.00%, 5/22/20211,2  9/3/2020   2,801,927    2,801,927 
 6,000,000   Commons Sole Member CGC LLC, 12.00%, 12/31/20261,2  10/1/2020   6,000,000    6,000,000 
 3,539,052   Corta Dito Stockton LLC, 10.00%, 11/10/20211,2  11/10/2020   3,539,052    3,539,052 
 7,251,293   DG Kia, LLC, 12.50%, 4/15/20211,2  12/2/2020   7,251,293    7,251,293 
 3,912,739   DG Opelika Circle K, LLC, 11.00%, 5/3/20211,2  9/3/2020   3,912,739    3,912,739 
 1,600,000   Emery Village Apartments, LLC, 9.90%, 4/23/20221,2  10/23/2020   1,600,000    1,600,000 
 1,000,000   Galaxy Management Company, LLC, 14.00%, 9/25/20231,2  11/18/2020   1,000,000    1,000,000 
 7,300,000   Port Royal Owner, LLC, 13.00%, 9/30/20231,2  8/6/2020   7,300,000    7,300,000 
 1,885,000   Storage Cap SDG, L.P., 13.00%, 12/21/20251,2  12/22/2020   1,885,000    1,885,000 
            49,000,443    49,000,443 
     Total Private Credit     $114,919,486   $114,919,486 
                   
     Total Investments - 98.9%³          $114,919,486 
     Other assets in excess of liabilities - 1.1%           1,334,791 
     Net Assets - 100%          $116,254,277 

 

1Restricted security. The total value of these securities is $114,919,486, which represents 98.9.0% of total net assets of the Fund.

 

2Level 3 securities fair valued under procedures established by the Board of Trustees. The total value of these securities is $114,919,486, which represents 98.9.0% of total net assets of the Fund.

 

3Entire portfolio is pledged as collateral for line of credit.

 

See accompanying notes to schedule of investments.

  

 

Keystone Private Income Fund, LLC

 

Notes to Schedule of Investments

 

December 31, 2020 (Unaudited)

 

Note 1 - Valuation of Investments

 

The Board has approved valuation procedures for the Fund (the “Valuation Procedures”) and appointed a separate valuation committee (the “Valuation Committee”). The Board has delegated the day-to-day responsibility for determining the fair valuation of the Fund’s investments to the Investment Manager, subject to the oversight of the Valuation Committee. The Investment Manager oversees the valuation of the Fund’s investments on behalf of the Fund in accordance with the Valuation Procedures, which provide that investments will be valued at fair value. Furthermore, the valuation of the Fund’s assets will be done in accordance with the FASB ASC Topic 820, Fair Value Measurements and Disclosures.

 

In general, fair value represents a good faith approximation of the current value of an asset and will be used when there is no public market or possibly no market at all for the asset. As a result, the fair values of one or more assets may not be the prices at which those assets are ultimately sold. Prospective investors should be aware that situations involving uncertainties as to the value of investments could have an adverse effect on the Fund’s net asset value (“NAV”) if the judgments of the Valuation Committee or Investment Manager regarding appropriate valuations should prove incorrect.

 

The Fund expects that it will hold a high proportion of illiquid investments relative to its total investments, which is directly related to the Fund’s investment objectives and strategy. The valuation approach will likely vary by investment, but may include comparable public market valuations, comparable transaction valuations and discounted cash flow analyses. All factors that might materially impact the value of an investment (i.e., underlying collateral, operating results, financial condition, achievement of milestones, and economic and/or market events) may be considered. In certain circumstances the Investment Manager may determine that cost best approximates the fair value of the particular investment.

 

Note 2 – Fair Value Measurements and Disclosure

 

The Fund uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

 

•Level 1 – Valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

•Level 2 – Valuations based on inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly.

 

•Level 3 – Valuations based on inputs that are both significant and unobservable to the overall fair value measurement.

  

 

The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining fair value requires more judgment. Because of the inherent uncertainly of valuation, estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Investment Manager in determining fair value is greatest for investments categorized in Level 3.

 

The Fund’s assets recorded at fair value have been categorized based on a fair value hierarchy as described in the Fund’s significant accounting policies. The following table presents information about the Fund’s assets and liabilities measured at fair value as of December 31, 2020:

 

Assets  Level 1   Level 2   Level 3   Total 
Private Credit  $—   $—   $114,919,486   $114,919,486 
Total Investments, at fair value  $—   $—   $114,919,486   $114,919,486 

 

The following table presents the changes in assets and transfers in and out which are classified in Level 3 of the fair value hierarchy for the period ended December 31, 2020:

 

   Private Credit 
Balance as of October 1, 2020  $51,202,769 
Transfers In   — 
Transfers Out   — 
Purchases   80,699,390 
Sales   — 
Principal reductions received   (16,982,673)
Realized gains (losses)   — 
Change in unrealized appreciation (depreciation)   — 
Balance as of December 31, 2020  $114,919,486 

  

 

The following table summarizes the valuation techniques and significant unobservable inputs used for the Fund’s investments that are categorized in Level 3 of the fair value hierarchy as of December 31, 2020.

 

Investments   Fair Value   Valuation Technique  Unobservable Inputs  Range of Inputs
Private Credit  $114,919,486   Cost  Price  N/A