NPORT-EX 2 fp0073260_nportex.htm HOLDINGS

Keystone Private Income Fund

Schedule of Investments

December 31, 2021 (Unaudited)

 

 

         Original           
Principal        Acquisition           
Amount        Date   Cost   Fair Value  
     Private Credit - 114.8%                  
     Corporate Finance - 24.1%                  
$6,472,383   Bigfoot Capital SPV1, LLC, 11.75%, 1/15/20241,2     1/15/2021   $6,472,383 $ 6,472,383  
 6,493,547   Elevate Brands, 14.00 + 4.00% PIK, 4/30/20261,2,3,4     4/12/2021    6,493,547   6,493,547  
 20,000,000   FilmRise Acquisitions, LLC, 15.50%, 8/17/20212,2,3     7/1/2020    20,000,000   20,000,000  
 10,000,000   Hall Labs, LLC, 14.50%, 8/11/20221,2     8/11/2021    10,000,000   10,000,000  
 7,741,515   Kingbee Rentals, LLC, 15.00%, 7/21/20241,2     7/22/2021    7,741,515   7,741,515  
 14,118,991   Longbow Acquisition Holdco, LLC, 12.00%, 5/31/20221,2,3     8/9/2021    14,118,991   14,118,991  
 7,727,497   Onward Partners, LLC, 15.00%, 6/17/20261,2     6/18/2021    7,727,497   7,727,497  
 2,500,000   Paradise Cruise Line Intermediate Holdings, LLC, 12.00%, 4/1/20241,2     4/1/2021    2,500,000   2,500,000  
 7,000,000   Series KS Manscaped, 12.00%, 12/31/20241,2     12/17/2021    7,000,000   7,000,000  
 1,192,267   Sovrn Holdings, Inc, LLC, 12.00%, 7/12/20251,2,5     7/13/2021    1,192,267   1,192,267  
 1,050,000   Tacolicious, Inc., 9.00%, 1/20/20241,2,3     1/29/2021    1,050,000   1,050,000  
 6,000,000   Waiehu, LLC, 14.00%, 10/27/20221,2     10/14/2021    6,000,000   6,000,000  
                90,296,200   90,296,200  
     Equipment Leasing - 39.2%                  
     Accelerate360, LLC                  
 7,485,253   14.50%, 4/1/20231,2   3/11/2021    7,485,253   7,485,253  
 1,825,972   14.50%, 6/30/20231,2   5/25/2021    1,825,972   1,825,972  
     Carepoint Health Management Associates, LLC                  
 2,234,118   14.50%, 7/1/20231,2   12/2/2020    2,234,118   2,234,118  
 130,666   14.50%, 4/30/20221,2   4/6/2021    130,666   130,666  
 22,514,116   Custom Ecology, Inc., 14.50%, 6/14/20261,2     6/14/2021    22,514,116   22,514,116  
     Firstronic, LLC                  
 838,728   12.00%, 11/1/20231,2   10/15/2020    838,728   838,728  
 1,406,556   12.00%, 9/30/20241,2   9/21/2021    1,406,556   1,406,556  
 3,391,776   KVJ Properties, Inc., 14.50%, 7/1/20231,2     12/4/2020    3,391,776   3,391,776  
     Lux Vending, LLC                  
 1,905,938   14.50%, 12/31/20221,2   8/6/2020    1,905,938   1,905,938  
 2,705,287   14.50%, 4/30/20231,2   4/16/2021    2,705,287   2,705,287  
 3,235,390   MC Test Service, Inc., 12.00%, 5/31/20241,2     5/3/2021    3,235,390   3,235,390  
     Metalogic Inspection Services, LLC                  
 261,534   14.50%, 6/1/20231,2   11/9/2020    261,534   261,534  
 445,828   14.50%, 10/1/20231,2   3/15/2021    445,828   445,828  
 168,200   14.50%, 2/28/20241,2   8/9/2021    168,200   168,200  
     Mirarchi Brothers, Inc.                  
 3,285,902   14.50%, 7/1/20231,2   12/24/2020    3,285,902   3,285,902  
 1,421,272   14.50%, 10/1/20231,2   3/9/2021    1,421,272   1,421,272  
 1,132,301   14.50%, 10/30/20231,2   4/23/2021    1,132,301   1,132,301  
 2,640,349   14.50%, 1/13/20241,2   7/15/2021    2,640,349   2,640,349  
     Onset Financial, Inc.                  
 4,563,992   14.50%, 5/31/20261,2   12/11/2020    4,563,992   4,563,992  
 14,607,941   12.50%, 9/30/20241,2   9/9/2021    14,607,941   14,607,941  
 158,629   12.50%, 9/30/20261,2   10/18/2021    158,629   158,629  
     Orbital Power, Inc.                  
 9,415,673   12.00%, 4/1/20241,2   3/31/2021    9,415,673   9,415,673  
 4,839,040   12.00%, 7/31/20241,2   8/17/2021    4,839,040   4,839,040  
 3,111,966   12.00%, 1/31/20241,2   7/23/2021    3,111,966   3,111,966  
 3,185,254   Saint Jean Industries, Inc., 14.50%, 6/30/20241,2     12/30/2021    3,185,254   3,185,254  
 5,382,317   Steelman Aviation, Inc., 14.50%, 12/31/20231,2     12/13/2021    5,382,317   5,382,317  
     Sun-Tech Leasing of Texas, L.P.                  
 1,717,454   12.00%, 10/1/20251,2   9/18/2020    1,717,454   1,717,454  
 1,686,550   12.00%, 7/31/20241,2   8/25/2021    1,686,550   1,686,550  
 950,341   Thunderbird Field Services LLC, 14.50%, 12/31/20231,2     12/14/2021    950,341   950,341  

 

 

 

Keystone Private Income Fund

Schedule of Investments

December 31, 2021 (Unaudited) (continued)

 

 

          Original           
Principal         Acquisition           
Amount         Date   Cost   Fair Value  
     Private Credit - 114.8% (continued)                  
     Equipment Leasing - 39.2% (continued)                  
     Trico Products Corporation                  
$2,280,824   14.50%, 4/1/20231,2     7/23/2020   $2,280,824 $ 2,280,824  
 8,723,109   12.50%, 10/31/20241,2     4/22/2021    8,723,109   8,723,109  
 23,840,170   12.50%, 10/31/20241,2     4/12/2021    23,840,170   23,840,170  
     Vensure Employer Services, Inc.                  
 1,717,547   14.50%, 1/31/20241,2     7/16/2021    1,717,547   1,717,547  
 3,554,157   14.50%, 12/1/20231,2     5/18/2021    3,554,157   3,554,157  
                146,764,150   146,764,150  
     Receivables Finance - 18.2%                  
 11,097,297   CapitalPlus Construction Services, LLC, 12.00%, 10/1/20231,2     9/2/2020    11,097,297   11,097,297  
 1,050,000   CapitalPlus Supply Chain Partners, LLC, 12.00%, 7/31/20241,2     8/31/2021    1,050,000   1,050,000  
 6,989,201   Dallas Growth Capital and Funding, LLC, 13.00%, 2/23/20241,2     2/24/2021    6,989,201   6,989,201  
 22,154,492   Deserve CC Funding II, LLC, 1 month LIBOR (1.75% floor) + 11.50%, 12/20/20221,2     9/3/2020    22,154,492   22,154,492  
 1,852,032   DNF Associates, LLC, 12.75%, 10/31/20241,2     12/28/2020    1,852,032   1,852,032  
 800,000   Elevation Capital Group, LLC, 12.50%, 6/22/20221,2     12/30/2021    800,000   800,000  
 2,809,219   Simply Funding SPV, LLC, 13.75%, 6/23/20231,2     6/23/2021    2,809,219   2,809,219  
 9,351,363   Triton Credit Funding SPV, LLC, 13.00%, 2/28/20231,2     9/2/2020    9,351,363   9,351,363  
 12,115,192   Viva Funding SPV, LLC, 13.00%, 12/22/20241,2     12/23/2020    12,115,192   12,115,192  
                68,218,796   68,218,796  
     Specialty Real Estate Finance - 33.3%                  
 12,339,581   AHP Servicing, LLC, 12.00%, 7/30/20221,2     7/30/2020    12,339,581   12,339,581  
 1,849,689   Bluepearl Operations, LLC, 10.00% PIK, 1/9/20231,2,4     7/8/2021    1,849,689   1,849,689  
 243,825   CC Development LP Series I, LLC, 9.95% PIK, 5/18/20231,2,4     11/18/2021    243,825   243,825  
 2,996,000   Circolo Villas, LLC, 13.00%, 4/13/20221,2     10/13/2021    2,996,000   2,996,000  
 6,000,000   Commons Sole Member CGC, LLC, 8.00% + 4.00% PIK, 12/31/20261,2,4,6     10/1/2020    6,000,000   6,000,000  
 2,529,154   CP Maryland 1, LLC, 8.00% PIK, 2/24/20231,2,4     8/20/2021    2,529,154   2,529,154  
 5,619,372   Draper Innovation Center, LLC, 6.25% + 6.25% PIK%, 7/31/20261,2,4     7/30/2021    5,619,372   5,619,372  
 8,774,965   Emery Village Apartments, LLC, 9.90%, 4/23/20221,2     10/23/2020    8,774,965   8,774,965  
 1,392,559   Endeavor Investments X, LLC, 10.50%, 1/1/20271,2     12/15/2021    1,392,559   1,392,559  
 4,374,471   ETV Holdings, LLC, 10.50% PIK, 7/12/20231,2,4     7/14/2021    4,374,471   4,374,471  
 300,000   Fruition California Holdings LLC,11.49% PIK, 12/30/20231,2,4     12/30/2021    300,000   300,000  
 2,000,000   Galaxy Management Company, LLC, 14.00%, 9/25/20231,2,3     11/18/2020    2,000,000   2,000,000  
 1,075,482   Grind Ventures, LLC, 9.65%, 10/20/20221,2     10/20/2021    1,075,482   1,075,482  
 2,450,101   JPA 1800, LLC, 10.00% PIK, 9/1/20221,2,4     8/31/2021    2,450,101   2,450,101  
 10,660,280   MAP Logistics Center I, LLC, 6.25% + 6.25% PIK, 10/26/20261,2,4     12/27/2021    10,660,280   10,660,280  
 3,279,199   Meridian Hotel Holdings, LLC, 9.90% PIK, 12/20/20221,2,4     6/21/2021    3,279,199   3,279,199  
 28,000,000   MPI Group, LLC, 12.00%, 4/26/2022-6/8/20221,2     5/6/2021    28,000,000   28,000,000  
 3,757,418   MRD 3, LLC, 10.00% PIK, 9/14/20221,2,4     9/14/2021    3,757,418   3,757,418  
 1,250,000   Olympus Pines FF Wash 1, LLC, 12.50%, 6/14/20261,2     7/15/2021    1,250,000   1,250,000  
 946,029   RadNet Management, Inc., 9.00% PIK, 9/30/20221,2,4     3/29/2021    946,029   946,029  
 21,942,023   Shiraz I-215 Logistics Center, LLC, 9.95%, 6/26/20221,2     12/22/2021    21,942,023   21,942,023  
 2,886,391   Sterling Management Company, LLC, 10.00% PIK, 6/3/20221,2,4     6/3/2021    2,886,391   2,886,391  
                124,666,539   124,666,539  
     Total Private Credit         $429,945,685 $ 429,945,685  

 

 

 

Keystone Private Income Fund

Schedule of Investments

December 31, 2021 (Unaudited) (continued)

 

 

Number of           
Shares      Cost  Fair Value 
     Warrants - 0.0%         
 73,274   Sovrn Holdings, Inc2,5  $-  $- 
     Total Investments - 114.8%7      $429,945,685 
     Liabilities in excess of other assets - (14.8%)       (55,440,653)
     Net Assets - 100%      $374,505,032 

 

1 Restricted security. The total value of these securities is $429,945,685, which represents 114.8% of total net assets of the Fund.
2 Level 3 securities fair valued under procedures established by the Board of Trustees. The total value of these securities is $429,945,685, which represents 114.8% of total net assets of the Fund.
3 This investment was made through a participation. Please see Note 2 for a description of participations.
4 Principal includes accumulated payment in kind (“PIK”) interest and is net of repayments, if any.
5 Investment made through an affiliated single purpose holding company.
6 Investment made through a single purpose holding company that Keystone National Group and/or one if its affiliates is a member of.
7 Entire 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, 2021 (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, 2021:

 

Investments

    

Level 1

    

Level 2

    

Level 3

    

Total

  

Private Credit

    

$

—

    

$

—

    

$

429,945,685

    

$

429,945,685

  

Warrants

    

 

—

    

 

—

    

 

—

    

 

—

  

Total Investments, at fair value

   

$

—

    

$

—

    

$

429,945,685

    

$

429,945,685

  

 

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, 2021:

 

     

Private Credit

    

Warrants

  
Balance as of October 1, 2021     $ 360,166,897     $ —  
Transfers In       —       —  
Transfers Out       —       —  
Purchases       131,244,517       —  
Sales     —       —  
Principal reductions received       (61,465,729)       —  
Realized gains (losses)       —       —  
Change in unrealized appreciation (depreciation)    

 

—

    

 

—

  
Balance as of December 31, 2021    

$ 

429,945,685

    

$

—

  

 

 

 

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, 2021.

 

Investments

Fair Value

Valuation
Technique

Unobservable
Inputs

Range of
Inputs

Private Credit $ 429,945,685 Cost  Price N/A
Warrants $ — Cost  Price N/A