Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

Note 4. Investments and Fair Value Measurements

The following table summarizes the composition of the Company’s investment portfolio at amortized cost and fair value as of December 31, 2023 and 2022:

	December 31, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Senior Secured Loans	$	532,378,544	$	526,032,489	$	501,621,705	$	496,354,293
Equity		9,585,173		7,033,311		9,182,145		8,588,300
Total Investments	$	541,963,717	$	533,065,800	$	510,803,850	$	504,942,593

Generally, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned more than 25% of its voting securities or it had the power to exercise control over the management or policies of such portfolio company, and would be

an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. As of December 31, 2023 and 2022, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the 1940 Act.

The following tables summarize the industry and geographic composition of the Company’s investment portfolio based on fair value as of December 31, 2023 and 2022:

	December 31, 2023					December 31, 2022
	Fair Value		Percentage			Fair Value		Percentage
Automotive	$	19,279,402		3.6	%	$	18,641,767		3.7	%
Beverage, Food & Tobacco		16,823,761		3.2	%		—		—	%
Business Services		87,305,356		16.4	%		71,864,705		14.2	%
Chemicals, Plastics & Rubber		—		—	%		6,299,949		1.2	%
Construction & Building		13,446,800		2.5	%		13,891,279		2.8	%
Consumer Goods: Durable		51,235,893		9.6	%		52,528,261		10.4	%
Consumer Goods: Non-durable		42,071,990		7.9	%		42,386,720		8.4	%
Consumer Services		8,699,485		1.6	%		9,694,347		1.9	%
Forest Products & Paper		10,917,405		2.0	%		11,681,141		2.3	%
Healthcare & Pharmaceuticals		94,446,748		17.8	%		97,294,977		19.4	%
High Tech Industries		90,843,387		17.1	%		85,401,792		16.9	%
Insurance		29,096,663		5.5	%		—		—	%
Sovereign & Public Finance		33,027,815		6.2	%		53,948,701		10.7	%
Transportation: Cargo		20,504,652		3.8	%		20,953,208		4.1	%
Wholesale		15,366,443		2.8	%		20,355,746		4.0	%
Total Investments	$	533,065,800		100.0	%	$	504,942,593		100.0	%

	December 31, 2023					December 31, 2022
	Fair Value		Percentage			Fair Value		Percentage
United States	$	531,815,989		99.8	%	$	493,799,332		97.8	%
Canada		1,249,811		0.2	%		11,143,261		2.2	%
Total Investments	$	533,065,800		100.0	%	$	504,942,593		100.0	%

The following table summarizes the fair value hierarchy of the Company’s investment portfolio as of December 31, 2023:

	Level 1		Level 2		Level 3		Total
Senior Secured Loans	$	—	$	16,921,875	$	509,110,614	$	526,032,489
Equity		—		—		7,033,311		7,033,311
Total Investments	$	—	$	16,921,875	$	516,143,925	$	533,065,800

The following table summarizes the fair value hierarchy of the Company’s investment portfolio as of December 31, 2022:

	Level 1		Level 2		Level 3		Total
Senior Secured Loans	$	—	$	17,733,300	$	478,620,993	$	496,354,293
Equity		—		—		8,588,300		8,588,300
Total Investments	$	—	$	17,733,300	$	487,209,293	$	504,942,593

The following table presents changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the year ended December 31, 2023:

	Senior Secured Loans			Equity			Total
Balance as of January 1, 2023	$	478,620,993		$	8,588,300		$	487,209,293
Purchases and drawdowns of investments		107,863,849			403,027			108,266,876
Proceeds from principal pre-payments and sales of investments		(56,107,885	)		—			(56,107,885	)
Payment-in-kind		1,556,095			—			1,556,095
Net accretion of discount on investments		1,830,325			—			1,830,325
Net change in unrealized appreciation (depreciation) on investments		(725,499	)		(1,958,016	)		(2,683,515	)
Net realized gain (loss) on investments		204,767			—			204,767
Transfers into Level 3 (1)		—			—			—
Transfers out of Level 3 (1)		(24,132,031	)		—			(24,132,031	)
Balance as of December 31, 2023	$	509,110,614		$	7,033,311		$	516,143,925
Net change in unrealized appreciation (depreciation) on Level 3 investments still held	$	(1,841,457	)	$	(1,958,016	)	$	(3,799,473	)

The following table presents changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the year ended December 31, 2022:

	Senior Secured Loans			Equity			Total
Balance as of January 1, 2022	$	221,562,845		$	4,585,750		$	226,148,595
Purchases and drawdowns of investments		329,509,984			4,602,483			334,112,467
Proceeds from principal pre-payments and sales of investments		(72,858,271	)		—			(72,858,271	)
Payment-in-kind		1,878,423			—			1,878,423
Net accretion of discount on investments		1,390,622			—			1,390,622
Net change in unrealized appreciation (depreciation) on investments		(3,703,340	)		(599,933	)		(4,303,273	)
Net realized gain (loss) on investments		840,730			—			840,730
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			—			—
Balance as of December 31, 2022	$	478,620,993		$	8,588,300		$	487,209,293
Net change in unrealized appreciation (depreciation) on Level 3 investments still held	$	(3,703,340	)	$	(599,933	)	$	(4,303,273	)

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of December 31, 2023 were as follows:

Investment type	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)	Impact to Valuation from an Increase in Input
Senior Secured Loans	$	382,741,551	Discounted cash flow	Discount rate	6.2% - 108.9% (12.4%)	Decrease
		76,718,361	Yield analysis	Market yield	11.2% - 16.4% (12.6%)	Decrease
		49,650,702	Recent transactions	Transaction price	N/A	N/A
Equity		7,033,311	Enterprise value waterfall	EBITDA multiple	12.5x - 15.4x (14.2x)	Increase
	$	516,143,925

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of December 31, 2022 were as follows:

Investment type	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)	Impact to Valuation from an Increase in Input
Senior Secured Loans	$	280,648,742	Discounted cash flow	Discount rate	6.9% - 12.0% (9.5%)	Decrease
		145,565,023	Yield analysis	Market yield	10.2% - 12.3% (11.4%)	Decrease
		52,407,228	Recent transactions	Transaction price	97.5 - 98.0 (97.75)	N/A
Equity		7,088,300	Enterprise value waterfall	EBITDA multiple	13.5x - 16.2x (15.3x)	Increase
		1,500,000	Recent transactions	Transaction price	100.0 (100.0)	N/A
	$	487,209,293