UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2022~~ 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-01393

Kayne DL 2021, Inc.

Delaware		86-2440860
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

811 Main Street, 14^th Floor, Houston, TX		77002
(Address of principal executive offices)		(Zip Code)

(713) 493-2020

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☐ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of May ~~11, 2022,~~10, 2023, the registrant had ~~8,600~~26,231 shares of common stock, $0.001 par value per share, ~~outstanding. As of May 11, 2022,~~issued and outstanding and there was no public market for the registrant’s shares.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements	1
	Consolidated Statements of Assets and Liabilities as of March ~~31, 2022~~31.2023 (Unaudited) and December 31, ~~2021~~2022	1
	Consolidated Statement of Operations for the three months ended March 31, 2023 and 2022 (Unaudited)	2
	Consolidated Statement of Changes in Net Assets for the three months ended March 31, 2023 and 2022 (Unaudited)	3
	Consolidated Statement of Cash Flows for the three months ended March 31, 2023 and 2022 (Unaudited)	4
	Consolidated Schedule of Investments as of March 31, ~~2022~~2023 (Unaudited) and December 31, ~~2021~~2022	5
	Notes to Financial Statements (Unaudited)	713
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1727
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2435
Item 4.	Controls and Procedures	2435

PART II.	OTHER INFORMATION	2536
Item 1.	Legal Proceedings	2536
Item 1A.	Risk Factors	2536
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2537
Item 3.	Defaults Upon Senior Securities	2537
Item 4.	Mine Safety Disclosures	2537
Item 5.	Other Information	2537
Item 6.	Exhibits	2638

Signatures		2739

Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the company, current and prospective portfolio investments, the industry, beliefs and assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond control of Kayne DL 2021, Inc. (“the ~~Company~~Company”) and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

●

future operating results;

●

business prospects and the prospects of portfolio companies;

●

changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital ~~markets, including changes from the impact of the novel coronavirus (SARS-CoV-2) and related respiratory disease pandemic (“COVID-19 pandemic”);~~markets;

●

the ability of KA Credit Advisors II, LLC (our “Advisor”) to locate suitable investments and to monitor and administer investments;

●

the ability of the Advisor and its affiliates to attract and retain highly talented professionals;

●

risk associated with possible disruptions in operations or the economy generally;

	●	the timing of cash flows, if any, from the operations of the companies in which the Company invests;

	●	the ability of (1) the companies in which the Company invests to achieve their objectives and (2) the Company to continue to effectively manage the business due to disruptions, both of which are caused by the current COVID-19 pandemic;

●

the dependence of the future success on the general economy and its effect on the industries in which the Company invests;

●

the ability to maintain qualification as a business development company (“BDC”) and as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”);

●

the use of borrowed money to finance a portion of the Company’s investments;

●

the adequacy, availability and pricing of financing sources and working capital for the Company;

●

actual or potential conflicts of interest with the Advisor and its affiliates;

●

contractual arrangements and relationships with third parties;

●

the risk associated with an economic downturn, increased inflation, political instability, interest rate volatility, loss of key personnel, and the illiquid nature of investments of the Company; and

●

the risks, uncertainties and other factors the Company identifies under “Item 1A. Risk Factors” and elsewhere in this quarterly report on Form ~~10-Q.~~10-Q, as well as in the Company’s annual report on Form 10-K for the year ended December 31, 2022.

We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the United States Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, registration statements on Form 10, quarterly reports on Form 10-Q and current reports on Form 8-K.

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Kayne DL 2021, Inc.

Consolidated Statements of Assets and Liabilities

(amounts in ~~000's,~~000’s, except share and per share amounts)

March 31,
2022 December 31, 2021
(Unaudited)
Assets:
Investments, at fair value:
Long-term investments (amortized cost of $23,910 and $11,499) $ 24,409 $ 11,761
Short-term investments (amortized cost of $18,946 and $31,239) 18,946 31,239
Cash and cash equivalents 4,783 266
Deferred offering costs 101 137
Interest receivable 123 12
Prepaid expenses and other assets 165 112
Total Assets $ 48,527 $ 43,527

Liabilities:
Subscription credit facility (Note 6) $ 5,000 $ -
Payable to affiliate 11 471
Management fee payable 33 2
Accrued expenses and other liabilities 330 175
Total Liabilities $ 5,374 $ 648

Commitments and contingencies (Note 8)

Net Assets:
Common Shares, $0.001 par value; 100,000 shares authorized; 8,600 as of March 31, 2022 and December 31, 2021 issued and outstanding $ - $ -
Additional paid-in capital 42,824 42,824
Total distributable earnings (deficit) 329 55
Total Net Assets $ 43,153 $ 42,879
Total Liabilities and Net Assets $ 48,527 $ 43,527
Net Asset Value Per Common Share $ 5,018 $ 4,986
March 31,
2023
(Unaudited) December 31, 2022
Assets:
Investments, at fair value:
Long-term investments (amortized cost of $128,530 and $105,083) $ 131,248 $ 107,312
Short-term investments (amortized cost of $2,938) 2,938 -
Cash and cash equivalents 1,125 715
Receivable for principal payments on investments 24 22
Interest receivable 1,201 972
Prepaid expenses and other assets 72 101
Total Assets $ 136,608 $ 109,122

Liabilities:
Subscription Credit Facility (Note 6) $ - $ 750
Unamortized Subscription Credit Facility issuance costs (50 ) (35 )
Payable for investments purchased - 137
Distributions payable 2,952 1,768
Management fee payable 221 156
Accrued expenses and other liabilities 345 438
Total Liabilities $ 3,468 $ 3,214

Commitments and contingencies (Note 8)

Net Assets:
Common Shares, $0.001 par value; 100,000 shares authorized; 25,668 and 20,554 as of March 31, 2023 and December 31, 2022, respectively, issued and outstanding $ - $ -
Additional paid-in capital 130,561 103,811
Total distributable earnings (deficit) 2,579 2,097
Total Net Assets $ 133,140 $ 105,908
Total Liabilities and Net Assets $ 136,608 $ 109,122
Net Asset Value Per Common Share $ 5,187 $ 5,153
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Statements of Operations
(amounts in ~~000's,~~000’s, except share and per share amounts)
(Unaudited)
For the three
months ended
March 31,
2022
Income:
Investment income from investments:
Interest income $ 346
Total Investment Income 346

Expenses:
Interest expense 18
Management fees 33
Professional fees 99
Directors fees 27
Offering costs 35
Other general and administrative expenses 98
Total Expenses 310
Net Investment Income (Loss) 36

Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Investments -
Total net realized gains (losses) -
Net change in unrealized gains (losses):
Investments 238
Total net change in unrealized gains (losses) 238
Total realized and unrealized gains (losses) 238

Net Increase (Decrease) in Net Assets Resulting from Operations $ 274

Per Common Share Data:
Basic and diluted net investment income per common share $ 4
Basic and diluted net increase in net assets resulting from operations $ 32
Weighted Average Common Shares Outstanding - Basic and Diluted 8,600
For the three months ended
March 31,
2023 2022
Income:
Investment income from investments:
Interest income $ 3,499 $ 346
Total Investment Income 3,499 346

Expenses:
Interest expense 111 18
Management fees 221 33
Professional fees 85 99
Directors fees 35 27
Offering costs - 35
Other general and administrative expenses 101 98
Total Expenses 553 310
Net Investment Income (Loss) 2,946 36

Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Investments - -
Total net realized gains (losses) - -
Net change in unrealized gains (losses):
Investments 488 238
Total net change in unrealized gains (losses) 488 238
Total realized and unrealized gains (losses) 488 238

Net Increase (Decrease) in Net Assets Resulting from Operations $ 3,434 $ 274

Per Common Share Data:
Basic and diluted net investment income per common share $ 131 $ 4
Basic and diluted net increase in net assets resulting from operations $ 152 $ 32
Weighted Average Common Shares Outstanding - Basic and Diluted 22,546 8,600
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Statements of Changes in Net Assets
(amounts in ~~000's)~~000’s)
(Unaudited)
For the three
months ended
March 31,
2022
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss) $ 36
Net realized gains (losses) on investments -
Net change in unrealized gains (losses) on investments 238
Net Increase (Decrease) in Net Assets Resulting from Operations 274

Total Increase (Decrease) in Net Assets 274
Net Assets, Beginning of Period 42,879
Net Assets, End of Period $ 43,153
For the three months ended
March 31,
2023 2022
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss) $ 2,946 $ 36
Net realized gains (losses) on investments - -
Net change in unrealized gains (losses) on investments 488 238
Net Increase (Decrease) in Net Assets Resulting from Operations 3,434 274

Decrease in Net Assets Resulting from Stockholder Distributions
Dividends and distributions to stockholders (2,952 ) -
Net Decrease in Net Assets Resulting from Stockholder Distributions (2,952 ) -

Increase in Net Assets Resulting from Capital Share Transactions
Issuance of common shares 25,000 -
Reinvestment of distributions 1,750 -
Net Increase in Net Assets Resulting from Capital Share Transactions 26,750 -
Total Increase (Decrease) in Net Assets 27,232 274
Net Assets, Beginning of Period 105,908 42,879
Net Assets, End of Period $ 133,140 $ 43,153
See accompanying notes to consolidated financial statements.
3

Kayne DL 2021, Inc.
Consolidated Statements of Cash Flows
(amounts in ~~000's)~~000’s)
(Unaudited)
For the three
months ended
March 31,
2022

Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations $ 274
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net change in unrealized (gains)/losses on investments (238 )
Net accretion of discount on investments (26 )
Sales of short-term investments, net 12,293
Purchases of portfolio investments (12,478 )
Proceeds from sales of investments and principal repayments 94
Amortization of deferred financing cost 9
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in interest and dividends receivable (111 )
(Increase)/decrease in deferred offering costs 36
(Increase)/decrease in prepaid expenses and other assets 33
Increase/(decrease) in management fees payable 31
Increase/(decrease) in accrued organizational and offering costs, net (460 )
Increase/(decrease) in accrued other general and administrative expenses 155
Net cash used in operating activities (388 )
Cash Flows from Financing Activities:
Borrowings on subscription credit facility, net 5,000
Payments of debt issuance costs (95 )
Net cash provided by financing activities 4,905
Net increase in cash and cash equivalents 4,517
Cash and cash equivalents, beginning of period 266
Cash and cash equivalents, end of period $ 4,783

Supplemental and Non-Cash Information:
Interest paid during the period $ -
Non-cash financing activities not included herein consisted of reinvestment of dividends $ -

For the three months ended
March 31,

2023 2022
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations $ 3,434 $ 274
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net realized (gains)/losses on investments - -
Net change in unrealized (gains)/losses on investments (488 ) (238 )
Net accretion of discount on investments (194 ) (26 )
Sales (purchases) of short-term investments, net
(2,938 ) 12,293
Purchases of portfolio investments (24,044 ) (12,478 )
Proceeds from sales of investments and principal repayments 790 94
Amortization of deferred financing cost 40 9
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in interest and dividends receivable (229 ) (111 )
(Increase)/decrease in deferred offering costs - 36
(Increase)/decrease in receivable for principal payments on investments (2 ) -
(Increase)/decrease in prepaid expenses and other assets 29 33
Increase/(decrease) in payable for investments purchased (137 ) -
Increase/(decrease) in management fees payable 65 31
Increase/(decrease) in accrued organizational and offering costs, net - (460 )
Increase/(decrease) in accrued other general and administrative expenses (93 ) 155
Net cash used in operating activities (23,767 ) (388 )
Cash Flows from Financing Activities:
Borrowings/(payments) on subscription credit facility, net
(750 ) 5,000
Payments of debt issuance costs (55 ) (95 )
Distributions paid in cash (18 ) -
Proceeds from issuance of common shares 25,000 -
Net cash provided by financing activities 24,177 4,905
Net increase in cash and cash equivalents 410 4,517
Cash and cash equivalents, beginning of period 715 266
Cash and cash equivalents, end of period $ 1,125 $ 4,783

Supplemental and Non-Cash Information:
Interest paid during the period $ 72 $ -
Non-cash financing activities not included herein consisted of reinvestment of dividends $ 1,750 $ -
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of March 31, ~~2022~~2023
(amounts in ~~000's)~~000’s)
(Unaudited)
Portfolio Company⁽¹⁾ Investment Interest Rate Maturity
Date Principal /
Par Amortized
Cost⁽²⁾⁽³⁾ Fair
Value Percentage
of Net Assets
Debt Investments
Private Credit
Investments⁽⁴⁾
Aerospace & defense
Basel U.S. Acquisition Co., Inc. (IAC) (5) First lien senior secured revolving loan 11.58% (S + 6.50%) 12/5/2028 - $ - $ - 0.0 %
First lien senior secured loan 11.58% (S + 6.50%) 12/5/2028 4,589 4,471 4,589 3.5 %
Precinmac (US) Holdings, Inc. First lien senior secured loan 10.91% (S + 6.00%) 8/31/2027 283 277 279 0.2 %
4,872 4,748 4,868 3.7 %
Asset management & custody banks
Atria Wealth Solutions, Inc. First lien senior secured delayed draw loan 11.16% (S + 6.00%) 2/29/2024 215 193 215 0.2 %
215 193 215 0.2 %
Auto components
Speedstar Holding LLC First lien senior secured delayed draw loan 12.31% (S + 7.25%) 1/22/2027 187 182 187 0.1 %
First lien senior secured loan 12.16% (S + 7.25%) 1/22/2027 796 773 796 0.6 %
Vehicle Accessories, Inc. First lien senior secured loan 10.66% (S + 5.50%) 11/30/2026 1,710 1,687 1,710 1.3 %
2,693 2,642 2,693 2.0 %
Biotechnology
Alcami Corporation (Alcami) First lien senior secured delayed draw loan 11.91% (S + 7.00%) 6/30/2024 - - - 0.0 %
First lien senior secured revolving loan 11.91% (S + 7.00%) 12/21/2028 - - - 0.0 %
First lien senior secured loan 11.91% (S + 7.00%) 12/21/2028 4,099 3,932 4,099 3.1 %
4,099 3,932 4,099 3.1 %
Building products
BCI Burke Holding Corp. First lien senior secured delayed draw loan 10.66% (L + 5.50%) 12/14/2023 85 82 85 0.1 %
First lien senior secured loan 10.66% (L + 5.50%) 12/14/2027 2,180 2,151 2,180 1.6 %
First lien senior secured revolving loan 10.66% (L + 5.50%) 6/14/2027 - - - 0.0 %
2,265 2,233 2,265 1.7 %
Chemicals
Shrieve Chemical Company, LLC First lien senior secured loan 11.05% (L + 6.38%) 12/2/2024 254 250 254 0.2 %
First lien senior secured loan 11.20% (L + 6.38%) 12/2/2024 2,962 2,936 2,962 2.2 %
3,216 3,186 3,216 2.4 %
Commercial services & supplies
Allentown, LLC First lien senior secured delayed draw loan 10.91% (S + 6.00%) 10/22/2023 - - - 0.0 %
First lien senior secured revolving loan 13.00% (P + 5.00%) 4/22/2027 106 104 104 0.1 %
First lien senior secured loan 10.91% (S + 6.00%) 4/22/2027 2,271 2,250 2,225 1.7 %
American Equipment Holdings LLC First lien senior secured delayed draw loan 11.24% (S + 6.00%) 11/5/2026 2,000 1,920 2,000 1.4 %
BLP Buyer, Inc. (Bishop Lifting Products) First lien senior secured revolving loan 11.09% (S + 6.25%) 2/1/2027 91 88 90 0.1 %
First lien senior secured loan 11.33% (S + 6.50%) 2/1/2027 1,995 1,950 1,970 1.5 %
First lien senior secured loan 11.08% (S + 6.25%) 2/1/2027 2,723 2,680 2,688 2.0 %
9,186 8,992 9,077 6.8 %
Containers & packaging
Drew Foam Companies, Inc. First lien senior secured loan 11.55% (S + 6.75%) 11/5/2025 2,985 2,946 2,963 2.2 %
FCA, LLC (FCA Packaging) First lien senior secured revolving loan 11.29% (S + 6.50%) 7/18/2028 - - - 0.0 %
First lien senior secured loan 11.29% (S + 6.50%) 7/18/2028 2,380 2,343 2,404 1.8 %
5,365 5,289 5,367 4.0 %
Diversified telecommunication services
Pavion Corp. (f/k/a Corbett Technology Solutions, Inc.) First lien senior secured loan 10.80% (S + 5.75%) 10/29/2027 930 915 930 0.7 %
First lien senior secured loan 10.83% (S + 5.75%) 10/29/2027 837 823 837 0.6 %
1,767 1,738 1,767 1.3 %
Electronic equipment, instruments & components
Process Insights, Inc. First lien senior secured loan 11.18% (S + 6.00%) 10/30/2025 1,469 1,446 1,469 1.1 %
1,469 1,446 1,469 1.1 %
See accompanying notes to consolidated financial statements.
~~(Unaudited)~~

Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Debt Investments
Private Credit Investments⁽⁴⁾
Auto components
Vehicle Accessories, Inc. First lien senior secured loan 6.50% (S + 5.50%) 11/30/2026 1,727 $ 1,698 $ 1,727 4.0 %
1,727 1,698 1,727 4.0 %
Building products
BCI Burke Holding Corp. First lien senior secured loan 6.75% (L + 5.75%) 12/14/2027 2,288 2,250 2,288 5.3 %
First lien senior secured delayed draw loan 6.75% (L + 5.75%) 12/14/2022 - - - - %
First lien senior secured revolving loan 6.75% (L + 5.75%) 6/14/2027 57 53 57 0.1 %
2,345 2,303 2,345 5.4 %
Commercial services & supplies
Bishop Lifting Products , Inc. First lien senior secured revolving loan 7.25% (L + 6.25%) 2/1/2027 91 87 91 0.2 %
First lien senior secured loan 7.25% (L + 6.25%) 2/1/2027 2,750 2,697 2,750 6.4 %
2,841 2,784 2,841 6.6 %
Diversified telecommunication services
Corbett Technology Solutions, Inc. First lien senior secured loan 6.00% (L + 5.00%) 10/29/2027 846 829 846 1.9 %
First lien senior secured loan 6.01% (L + 5.00%) 10/29/2027 940 922 940 2.2 %
1,786 1,751 1,786 4.1 %
Food products
Siegel Egg Co., LLC First lien senior secured revolving loan 7.00% (L + 6.00%) 12/29/2026 377 367 377 0.9 %
First lien senior secured loan 7.00% (L + 6.00%) 12/29/2026 2,502 2,459 2,502 5.8 %
2,879 2,826 2,879 6.7 %
Health care providers & services
Brightview, LLC First lien senior secured loan 6.75% (L + 5.75%) 4/12/2024 2,206 2,181 2,206 5.1 %
First lien senior secured delayed draw loan 6.75% (L + 5.75%) 4/12/2024 - - -   - %
First lien senior secured revolving loan 6.75% (L + 5.75%) 4/12/2024 - - - - %
Guardian Dentistry Partners First lien senior secured delayed draw loan 7.00% (L + 6.00%) 8/20/2026 262 234 262 0.6 %
First lien senior secured loan 7.00% (L + 6.00%) 8/20/2026 1,020 1,008 1,020 2.4 %
OMH-Healthedge Holdings, LLC First lien senior secured loan 7.50% (L + 6.00%) 10/24/2025 3,000 2,934 3,000 7.0 %
SGA Dental Partners Holdings, LLC First lien senior secured delayed draw loan 6.50% (L + 5.50%) 12/30/2026 808 787 808 1.9 %
First lien senior secured loan 6.50% (L + 5.50%) 12/30/2026 1,444 1,413 1,444 3.3 %
8,740 8,557 8,740 20.3 %
Leisure products
MacNeill Pride Group First lien senior secured delayed draw loan 7.25% (S + 6.25%) 4/22/2026 90 63 90 0.2 %
First lien senior secured revolving loan 7.25% (S + 6.25%) 4/22/2026 156 151 156 0.4 %
246 214 246 0.6 %
Machinery
Pennsylvania Machine Works, LLC First lien senior secured loan 7.25% (S + 6.25%) 3/6/2027 975 966 975 2.3 %
975 966 975 2.3 %
Software
Peak Technologies First lien senior secured loan 8.07% (L + 7.07%) 4/1/2026 612 600 612 1.4 %
612 600 612 1.4 %
Trading companies & distributors
CGI Automated Manufacturing LLC First lien senior secured loan 7.00% (S + 6.00%) 12/17/2026 1,556 1,521 1,556 3.6 %
First lien senior secured delayed draw loan 7.00% (S + 6.00%) 5/17/2023 - - - - %
First lien senior secured revolving loan 7.00% (S + 6.00%) 12/17/2026 - - - - %
I.D. Images Acquisition, LLC First lien senior secured loan 7.26% (L + 6.25%) 7/30/2026 702 690 702 1.6 %
2,258 2,211 2,258 5.2 %
Total Private Credit Investments 24,409 23,910 24,409 56.6 %

Total Debt Investments 24,409 23,910 24,409 56.6 %
Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of March 31, 2023
(amounts in 000’s)
(Unaudited)
Portfolio Company⁽¹⁾ Investment Interest Rate Maturity
Date Principal /
Par Amortized
Cost⁽²⁾⁽³⁾ Fair
Value Percentage
of Net Assets
Food products
BR PJK Produce, LLC (Keany) First lien senior secured loan 10.99% (S + 6.25%) 11/14/2027 4,760 4,643 4,760 3.6 %
First lien senior secured delayed draw loan 10.99% (S + 6.25%) 5/14/2024 - - - 0.0 %
Gulf Pacific Holdings, LLC First lien senior secured delayed draw loan 11.11% (S + 6.00%) 9/30/2028 147 139 147 0.1 %
First lien senior secured revolving loan 10.98% (S + 6.00%) 9/30/2028 180 170 180 0.1 %
First lien senior secured loan 11.05% (S + 6.00%) 9/30/2028 1,743 1,711 1,743 1.3 %
IF&P Foods, LLC (FreshEdge) (6) First lien senior secured delayed draw loan 10.14% (S + 5.25%) 10/3/2024 - - - 0.0 %
First lien senior secured revolving loan 10.45% (S + 5.25%) 10/3/2028 254 242 254 0.2 %
First lien senior secured loan 10.14% (S + 5.25%) 10/3/2028 3,922 3,818 3,922 2.9 %
Siegel Egg Co., LLC First lien senior secured revolving loan 10.26% (L + 5.50%) 12/29/2026 235 227 233 0.2 %
First lien senior secured loan 10.26% (L + 5.50%) 12/29/2026 2,477 2,442 2,465 1.9 %
Worldwide Produce Acquisition, LLC First lien senior secured revolving loan 10.88% (S + 6.25%) 1/18/2029 155 143 155 0.1 %
First lien senior secured delayed draw loan 11.15% (S + 6.25%) 1/18/2029 636 586 636 0.5 %
First lien senior secured delayed draw loan 10.88% (S + 6.25%) 4/18/2024 - - - 0.0 %
First lien senior secured loan 10.88% (S + 6.25%) 1/18/2029 2,881 2,798 2,881 2.2 %
17,390 16,919 17,376 13.1 %
Health care providers & services
Brightview, LLC First lien senior secured delayed draw loan 10.59% (L + 5.75%) 12/14/2026 292 289 289 0.2 %
First lien senior secured revolving loan 10.59% (L + 5.75%) 12/14/2026 39 39 39 0.0 %
First lien senior secured loan 10.59% (L + 5.75%) 12/14/2026 2,184 2,175 2,162 1.6 %
Guardian Dentistry Partners First lien senior secured delayed draw loan 11.42% (S + 6.50%) 8/20/2026 1,965 1,939 1,965 1.5 %
First lien senior secured loan 11.42% (S + 6.50%) 8/20/2026 1,010 991 1,010 0.8 %
Light Wave Dental Management LLC First lien senior secured delayed draw loan 11.66% (S + 6.50%) 12/31/2023
953

944

953

0.7
%
First lien senior secured revolving loan 11.66% (S + 6.50%) 1/2/2024 56 56 56 0.1 %
First lien senior secured loan 11.66% (S + 6.50%) 12/31/2023 1,291 1,285 1,291 0.9 %
OMH-HealthEdge Holdings, LLC First lien senior secured loan 10.03% (L + 5.25%) 10/24/2025 2,970 2,921 2,970 2.2 %
SGA Dental Partners Holdings, LLC First lien senior secured delayed draw loan 10.39% (S + 5.50%) 12/30/2026 1,333 1,312 1,333 1.0 %
First lien senior secured loan 10.39% (S + 5.50%) 12/30/2026 1,430 1,405 1,430 1.1 %
First lien senior secured revolving loan 10.39% (S + 5.50%) 12/30/2026 - - - 0.0 %
13,523 13,356 13,498 10.1 %
Healthcare equipment & supplies
LSL Industries, LLC (LSL Healthcare) First lien senior secured delayed draw loan 11.45% (S + 6.50%) 11/3/2024 - - - 0.0 %
First lien senior secured revolving loan 11.45% (S + 6.50%) 11/3/2027 - - - 0.0 %
First lien senior secured loan 11.45% (S + 6.50%) 11/3/2027 1,687 1,629 1,670 1.3 %
1,687 1,629 1,670 1.3 %
See accompanying notes to consolidated financial statements.

Number of Fair Percentage
Shares Cost Value of Net Assets
Short-Term Investments
First American Treasury Obligations Fund - Institutional Class Z, 0.19% ⁽⁵⁾ 18,946 18,946 18,946 43.9 %
Total Short-Term Investments 18,946 18,946 18,946 43.9 %

Total Investments $ 42,856 $ 43,355 100.5 %

Liabilities in Excess of Other Assets (202 ) (0.5 )%
Net Assets $ 43,153 100.0 %
Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of March 31, 2023
(amounts in 000’s)
(Unaudited)
Portfolio Company⁽¹⁾ Investment Interest Rate Maturity
Date Principal /
Par Amortized
Cost⁽²⁾⁽³⁾ Fair
Value Percentage
of Net Assets
Insurance
Allcat Claims Service, LLC First lien senior secured delayed draw loan 10.77% (S + 6.00%) 7/7/2027 1,866 1,831 1,866 1.4 %
First lien senior secured revolving loan 10.91% (S + 6.00%) 7/7/2027 - - - 0.0 %
First lien senior secured loan 10.91% (S + 6.00%) 7/7/2027 666 649 666 0.5 %
2,532 2,480 2,532 1.9 %
IT services
Domain Information Services Inc. (Integris) First lien senior secured loan 10.99% (S + 6.25%) 9/30/2025 4,992 4,883 4,992 3.7 %
Improving Acquisition LLC First lien senior secured revolving loan 10.45% (S + 6.00%) 7/26/2027 - - - 0.0 %
First lien senior secured loan 10.45% (S + 6.00%) 7/26/2027 4,623 4,533 4,623 3.5 %
9,615 9,416 9,615 7.2 %
Leisure products
CTM Group, Inc. First lien senior secured loan 11.79% (S + 6.75%) 11/30/2026 3,046 2,971 3,046 2.3 %
MacNeill Pride Group First lien senior secured delayed draw loan 11.66% (S + 6.50%) 4/22/2026 1,230 1,209 1,206 0.9 %
First lien senior secured revolving loan 11.66% (S + 6.50%) 4/22/2026 78 74 76 0.1 %
4,354 4,254 4,328 3.3 %
Machinery
Pennsylvania Machine Works, LLC First lien senior secured loan 11.16% (S + 6.00%) 3/6/2027 966 958 966 0.7 %
PVI Holdings, Inc. First lien senior secured loan 10.57% (S + 5.94%) 7/18/2027 2,064 2,035 2,064 1.6 %
3,030 2,993 3,030 2.3 %
Professional services
DISA Holdings Corp. (DISA) First lien senior secured delayed draw loan 10.16% (S + 5.50%) 9/9/2028 374 350 374 0.3 %
First lien senior secured revolving loan 10.16% (S + 5.50%) 9/9/2028 - - - 0.0 %
First lien senior secured loan 10.16% (S + 5.50%) 9/9/2028 3,420 3,316 3,420 2.6 %
Universal Marine Medical Supply International, LLC (Unimed) First lien senior secured revolving loan 13.14% (S + 7.50%) 12/5/2027 147 130 147 0.1 %
First lien senior secured loan 12.58% (S + 7.50%) 12/5/2027 4,176 4,079 4,176 3.1 %
8,117 7,875 8,117 6.1 %
Software
AIDC Intermediate Co 2, LLC (Peak Technologies) First lien senior secured loan 11.06% (S + 6.25%) 7/22/2027 2,990 2,876 2,967 2.2 %
2,990 2,876 2,967 2.2 %
Textiles, apparel & luxury goods
American Soccer Company, Incorporated (SCORE) First lien senior secured revolving loan 11.29% (S + 6.50%) 7/20/2027 203 195 203 0.2 %
First lien senior secured loan 11.55% (S + 6.50%) 7/20/2027 2,575 2,523 2,575 1.9 %
2,778 2,718 2,778 2.1 %
Trading companies & distributors
BCDI Meteor Acquisition, LLC (Meteor) First lien senior secured loan 11.91% (S + 7.00%) 6/29/2028 5,000 4,881 5,000 3.8 %
CGI Automated Manufacturing, LLC First lien senior secured revolving loan 12.15% (S + 7.00%) 12/17/2026 64 60 64 0.0 %
First lien senior secured delayed draw loan 12.16% (S + 7.00%) 12/17/2026 1,259 1,222 1,259 0.9 %
First lien senior secured loan 12.16% (S + 7.00%) 12/17/2026 1,508 1,462 1,508 1.1 %
Engineered Fastener Company, LLC (EFC International) First lien senior secured loan 11.56% (S + 6.50%) 11/1/2027 7,000 6,828 7,000 5.3 %
Genuine Cable Group, LLC First lien senior secured loan 10.41% (S + 5.50%) 11/1/2026 4,975 4,822 4,888 3.7 %
I.D. Images Acquisition, LLC First lien senior secured loan 11.16% (S + 6.25%) 7/30/2026 3,078 3,023 3,078 2.3 %
First lien senior secured loan 11.30% (S + 6.25%) 7/30/2026 695 685 695 0.5 %
Krayden Holdings, Inc. First lien senior secured delayed draw loan 11.00% (S + 6.00%) 3/1/2025 - - - 0.0 %
First lien senior secured delayed draw loan 11.00% (S + 6.00%) 3/1/2025 - - - 0.0 %
First lien senior secured revolving loan 11.00% (S + 6.00%) 3/1/2029 - - - 0.0 %
First lien senior secured loan 11.00% (S + 6.00%) 3/1/2029 3,188 3,039 3,188 2.4 %
26,767 26,022 26,680 20.0 %
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of March 31, 2023
(amounts in 000’s)
(Unaudited)
Portfolio Company⁽¹⁾ Investment Interest Rate Maturity
Date Principal /
Par Amortized
Cost⁽²⁾⁽³⁾ Fair
Value Percentage
of Net Assets
Wireless telecommunication services
Centerline Communications, LLC First lien senior secured loan 10.95% (S + 6.00%) 8/10/2027 669 650 662 0.5 %
First lien senior secured delayed draw loan 10.95% (S + 6.00%) 8/10/2027 2,989 2,943 2,959 2.2 %
3,658 3,593 3,621 2.7 %
Total Private Credit Investments 131,588 128,530 131,248 98.6 %
Total Debt Investments 131,588 128,530 131,248 98.6 %

Number of Fair Percentage of
Shares Cost Value Net Assets
Short-Term Investments
First American Treasury Obligations Fund - Institutional Class Z, 4.66% (7) 2,938 2,938 2,938 2.2 %
Total Short-Term Investments 2,938 2,938 2,938 2.2 %
Total Investments $ 131,468 $ 134,186 100.8 %
Liabilities in Excess of Other Assets (1,046 ) (0.8 )%
Net Assets $ 133,140 100.0 %

(1) ~~(1)~~ As of March 31, ~~2022,~~2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
(2) ~~(2)~~ The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(3) ~~(3)~~ As of March 31, ~~2022,~~2023, the tax cost of the ~~Company's~~Company’s investments approximates their amortized cost.
(4) ~~(4)~~
Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR), the Secured Overnight Funding Rate (“SOFR” or “S”) (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime ~~Rate)~~Rate or “P”).
(5) ~~(5)~~Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940.  The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of March 31, 2023, 3.4% of the Company’s total assets were in non-qualifying investments.
(6) The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss. Certain lenders represent a “first out” portion of the investment and have priority to the “last out” portion with respect to payments of principal and interest.
(7) The indicated rate is the yield as of March 31, ~~2022.~~2023.
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of December 31, ~~2021~~2022
(amounts in 000’s)
Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Debt Investments
Private Credit
Investments⁽⁴⁾
Aerospace & defense
Basel U.S. Acquisition Co., Inc. (IAC) (5) First lien senior secured revolving loan 11.10% (S + 6.50%) 12/5/2028 - $ - $ - 0.0 %
First lien senior secured loan 11.10% (S + 6.50%) 12/5/2028 4,601 4,477 4,601 4.3 %
Precinmac (US) Holdings, Inc. First lien senior secured loan 10.42% (S + 6.00%) 8/31/2027 284 278 280 0.3 %
4,885 4,755 4,881 4.6 %
Asset management & custody banks
Atria Wealth Solutions, Inc. First lien senior secured delayed draw loan 10.84% (S + 6.00%) 2/29/2024 216 187 212 0.2 %
216 187 212 0.2 %
Auto components
Vehicle Accessories, Inc. First lien senior secured loan 10.34% (S + 5.50%) 11/30/2026 1,714 1,689 1,701 1.6 %
1,714 1,689 1,701 1.6 %
Biotechnology
Alcami Corporation (Alcami) First lien senior secured delayed draw loan 11.42% (S + 7.00%) 6/30/2024 - - - 0.0 %
First lien senior secured revolving loan 11.42% (S + 7.00%) 12/21/2028 - - - 0.0 %
First lien senior secured loan 11.42% (S + 7.00%) 12/21/2028 4,110 3,935 4,069 3.8 %
4,110 3,935 4,069 3.8 %
Building products
BCI Burke Holding Corp. First lien senior secured delayed draw loan 9.70% (L + 5.50%) 12/14/2027 85 82 85 0.1 %
First lien senior secured loan 10.23% (L + 5.50%) 12/14/2027 2,186 2,155 2,197 2.1 %
First lien senior secured revolving loan 9.70% (L + 5.50%) 6/14/2027 - - - 0.0 %
2,271 2,237 2,282 2.2 %
Chemicals
Schrieve Chemical Company, LLC First lien senior secured loan 10.33% (L + 6.00%) 12/2/2024 256 251 256 0.2 %
256 251 256 0.2 %
Commercial services & supplies
Allentown, LLC First lien senior secured delayed draw loan 10.42% (S + 6.00%) 10/22/2023 - - - 0.0 %
First lien senior secured revolving loan 12.50% (P + 5.00%) 4/22/2027 106 102 103 0.1 %
First lien senior secured loan 10.42% (S + 6.00%) 4/22/2027 2,276 2,256 2,214 2.1 %
American Equipment Holdings LLC First lien secured delayed draw loan 10.88% (S + 6.00%) 11/5/2026 - (61 ) - 0.0 %
BLP Buyer, Inc. (Bishop Lifting Products) First lien senior secured revolving loan 10.67% (S + 6.25%) 2/1/2027 91 87 90 0.1 %
First lien senior secured loan 10.21% (S + 6.50%) 2/1/2027 2,000 1,952 1,975 1.9 %
First lien senior secured loan 10.49% (S + 6.25%) 2/1/2027 2,729 2,683 2,695 2.5 %
7,202 7,019 7,077 6.7 %
Containers & packaging
Drew Foam Companies, Inc. First lien senior secured loan 10.89% (S + 6.75%) 11/5/2025 2,993 2,949 2,993 2.8 %
FCA, LLC (FCA Packaging) First lien senior secured revolving loan 9.46% (S + 6.50%) 7/18/2028 - - - 0.0 %
First lien senior secured loan 9.46% (S + 6.50%) 7/18/2028 2,520 2,479 2,545 2.4 %
5,513 5,428 5,538 5.2 %
Diversified telecommunication services
Pavion Corp., f/k/a Corbett Technology Solutions, Inc. First lien senior secured loan 8.70% (L + 5.00%) 10/29/2027 932 917 918 0.8 %
First lien senior secured loan 9.58% (S + 5.00%) 10/29/2027 839 825 827 0.8 %
1,771 1,742 1,745 1.6 %
Electronic equipment, instruments & components
Process Insights, Inc. First lien senior secured loan 10.49% (S + 6.00%) 10/30/2025 1,472 1,448 1,461 1.4 %
See accompanying notes to consolidated financial statements.

Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Debt Investments
Private Credit Investments⁽⁴⁾
Capital goods
I.D. Images Acquisition, LLC First lien senior secured loan 7.25% (L + 6.25%) 7/30/2026 703 $ 691 $ 703 1.6 %
703 691 703 1.6 %
Consumer durables & apparel
BCI Burke Holding Corp. First lien senior secured loan 6.75% (L + 5.75%) 12/14/2027 2,294 2,253 2,294 5.4 %
First lien senior secured revolving loan 6.75% (L + 5.75%) 6/14/2027 52 48 52 0.1 %
First lien senior secured delayed draw loan 6.75% (L + 5.75%) 12/14/2023 - - - 0.0 %
2,346 2,301 2,346 5.5 %
Food & beverage
Siegel Egg Co., LLC First lien senior secured revolving loan 7.00% (L + 6.00%) 12/29/2026 164 153 164 0.4 %
First lien senior secured loan 7.00% (L + 6.00%) 12/29/2026 2,502 2,456 2,502 5.8 %
2,666 2,609 2,666 6.2 %
Health care equipment & services
Brightview, LLC First lien senior secured loan 6.75% (L + 5.75%) 4/12/2024 2,212 2,182 2,212 5.1 %
First lien senior secured delayed draw loan 6.75% (L + 5.75%) 4/12/2024 - - - 0.0 %
First lien senior secured revolving loan 6.75% (L + 5.75%) 4/12/2024 - - - 0.0 %
Guardian Dentistry Partners First lien senior secured loan 6.75% (L + 5.75%) 8/20/2026 1,023 978 1,023 2.4 %
First lien senior secured delayed draw loan 6.75% (L + 5.75%) 8/20/2026 - - - 0.0 %
SGA Dental Partners Holdings, LLC First lien senior secured loan 6.50% (L + 5.50%) 12/30/2026 1,448 1,402 1,448 3.4 %
First lien senior secured delayed draw loan 6.50% (L + 5.50%) 12/30/2026 - - - 0.0 %
First lien senior secured revolving loan 6.50% (L + 5.50%) 12/30/2026 - - - 0.0 %
4,683 4,562 4,683 10.9 %
Software & services
Peak Technologies First lien senior secured loan 7.50% (L + 6.50%) 4/1/2026 421 413 421 1.0 %
421 413 421 1.0 %
Telecommunication services
Corbett Technology Solutions, Inc. First lien senior secured loan 6.00% (L + 5.00%) 10/27/2027 942 923 942 2.2 %
942 923 942 2.2 %
Total Private Credit Investments 11,761 11,499 11,761 27.4 %
Total Debt Investments 11,761 11,499 11,761 27.4 %
Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of December 31, 2022
(amounts in 000’s)
Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Food products
BR PJK Produce, LLC (Keany) First lien senior secured loan 10.47% (S + 6.25%) 11/14/2027 4,772 4,649 4,772 4.5 %
First lien senior secured delayed draw loan 10.47% (S + 6.25%) 5/14/2024 - - - 0.0 %
Gulf Pacific Holdings, LLC First lien senior secured delayed draw loan 10.73% (S + 6.00%) 9/30/2024 - - - 0.0 %
First lien senior secured revolving loan 10.42% (S + 6.00%) 9/30/2028 128 119 128 0.1 %
First lien senior secured loan 10.73% (S + 6.00%) 9/30/2028 1,747 1,706 1,747 1.7 %
IF&P Foods, LLC (FreshEdge) (6) First lien senior secured delayed draw loan 8.91% (S + 5.25%) 10/3/2024 - - - 0.0 %
First lien senior secured revolving loan 8.91% (S + 5.25%) 10/3/2028 195 184 195 0.2 %
First lien senior secured loan 8.91% (S + 5.25%) 10/3/2028 3,931 3,822 3,931 3.7 %
Siegel Egg Co., LLC First lien senior secured revolving loan 9.25% (L + 5.50%) 12/29/2026 306 298 304 0.3 %
First lien senior secured loan 9.25% (L + 5.50%) 12/29/2026 2,484 2,445 2,471 2.3 %
13,563 13,223 13,548 12.8 %
Health care providers & services
Brightview, LLC First lien senior secured delayed draw loan 10.14% (L + 5.75%) 12/14/2026 292 289 290 0.3 %
First lien senior secured revolving loan 10.13% (L + 5.75%) 12/14/2026 - - - 0.0 %
First lien senior secured loan 10.13% (L + 5.75%) 12/14/2026 2,190 2,176 2,168 2.0 %
Guardian Dentistry Partners First lien senior secured delayed draw loan 10.94% (S + 6.50%) 8/20/2026 1,970 1,942 1,970 1.9 %
First lien senior secured loan 10.94% (S + 6.50%) 8/20/2026 1,012 992 1,012 0.9 %
Light Wave Dental Management LLC First lien senior secured delayed draw loan 11.32% (S + 6.50%) 12/31/2023 956 944 956 0.9 %
First lien senior secured revolving loan 11.32% (S + 6.50%) 12/31/2023 56 55 56 0.0 %
First lien senior secured loan 11.32% (S + 6.50%) 12/31/2023 1,294 1,285 1,294 1.2 %
OMH-HealthEdge Holdings, LLC First lien senior secured loan 10.03% (L + 5.25%) 10/24/2025 2,978 2,924 2,978 2.8 %
SGA Dental Partners Holdings, LLC First lien senior secured delayed draw loan 9.93% (S + 6.00%) 12/30/2026 1,336 1,314 1,336 1.3 %
First lien senior secured loan 9.93% (S + 6.00%) 12/30/2026 1,434 1,407 1,434 1.4 %
First lien senior secured revolving loan 9.93% (S + 6.00%) 12/30/2026 - - - 0.0 %
13,518 13,328 13,494 12.7 %
Healthcare equipment & supplies
LSL Industries, LLC (LSL Healthcare) First lien senior secured delayed draw loan 10.90% (S + 6.50%) 11/3/2024 - - - 0.0 %
First lien senior secured revolving loan 10.90% (S + 6.50%) 11/3/2027 - - - 0.0 %
First lien senior secured loan 10.90% (S + 6.50%) 11/3/2027 1,691 1,629 1,691 1.6 %
1,691 1,629 1,691 1.6 %
See accompanying notes to consolidated financial statements.

Number of
Shares Cost Fair
Value Percentage
of Net Assets
Short-Term Investments
First American Treasury Obligations Fund - Institutional Class Z, 0.01% ⁽⁵⁾ 31,239 31,239 31,239 72.9 %
Total Short-Term Investments 31,239 31,239 31,239 72.9 %
Total Investments $ 42,738 $ 43,000 100.3 %

Liabilities in Excess of Other Assets (121 ) (0.3 )%
Net Assets $ 42,879 100.0 %
Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of December 31, 2022
(amounts in 000’s)
Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Insurance
Allcat Claims Service, LLC First lien senior secured delayed draw loan 10.24% (S + 6.00%) 7/7/2027 462 439 462 0.5 %
First lien senior secured revolving loan 10.33% (S + 6.00%) 7/7/2027 142 136 142 0.1 %
First lien senior secured loan 10.41% (S + 6.00%) 7/7/2027 668 655 668 0.6 %
1,272 1,230 1,272 1.2 %
IT services
Domain Information Services Inc. (Integris) First lien senior secured loan 10.63% (S + 6.25%) 9/30/2025 5,000 4,879 5,000 4.7 %
Improving Acquisition LLC First lien senior secured revolving loan 10.24% (S + 6.00%) 7/26/2027 - - - 0.0 %
First lien senior secured loan 10.24% (S + 6.00%) 7/26/2027 4,635 4,538 4,635 4.4 %
9,635 9,417 9,635 9.1 %
Leisure products
MacNeill Pride Group First lien senior secured delayed draw loan 11.09% (S + 6.25%) 4/22/2026 1,233 1,210 1,202 1.2 %
First lien senior secured revolving loan 11.09% (S + 6.25%) 4/22/2026 130 126 127 0.1 %
1,363 1,336 1,329 1.3 %
Machinery
Pennsylvania Machine Works, LLC First lien senior secured loan 11.09% (S + 6.25%) 3/6/2027 968 959 968 0.9 %
PVI Holdings, Inc First lien senior secured loan 10.12% (S + 6.38%) 7/18/2027 2,068 2,037 2,068 2.0 %
3,036 2,996 3,036 2.9 %
Professional services
DISA Holdings Corp. (DISA) First lien senior secured delayed draw loan 9.73% (S + 5.50%) 9/9/2028 374 349 372 0.4 %
First lien senior secured revolving loan 9.82% (S + 5.50%) 9/9/2028 9 - 9 0.0 %
First lien senior secured loan 9.72% (S + 5.50%) 9/9/2028 3,429 3,328 3,412 3.2 %
Universal Marine Medical Supply International, LLC (Unimed) First lien senior secured revolving loan 12.14% (S + 7.50%) 12/5/2027 147 129 147 0.1 %
First lien senior secured loan 12.10% (S + 7.50%) 12/5/2027 4,265 4,160 4,265 4.0 %
8,224 7,966 8,205 7.7 %
See accompanying notes to consolidated financial statements.

Kayne DL 2021, Inc.
Consolidated Schedule of Investments
As of December 31, 2022
(amounts in 000’s)
Maturity Principal / Amortized Fair Percentage
Portfolio Company⁽¹⁾ Investment Interest Rate Date Par Cost⁽²⁾⁽³⁾ Value of Net Assets
Software
AIDC Intermediate Co 2, LLC (Peak Technologies) First lien senior secured loan 10.44% (S + 6.25%) 7/22/2027 2,997 2,878 2,997 2.8 %
2,997 2,878 2,997 2.8 %
Textiles, apparel & luxury goods
American Soccer Company, Incorporated (SCORE) First lien senior secured revolving loan 11.91% (S + 7.25%) 7/20/2027 162 154 162 0.2 %
First lien senior secured loan 11.98% (S + 7.25%) 7/20/2027 2,582 2,527 2,582 2.4 %
2,744 2,681 2,744 2.6 %
Trading companies & distributors
BCDI Meteor Acquisition, LLC (Meteor) First lien senior secured loan 11.66% (S + 7.00%) 6/29/2028 5,000 4,875 5,000 4.7 %
CGI Automated Manufacturing, LLC First lien senior secured revolving loan 11.34% (S + 6.50%) 12/17/2026 - - - 0.0 %
First lien senior secured delayed draw loan 11.34% (S + 6.50%) 12/17/2026 1,267 1,222 1,267 1.2 %
First lien senior secured loan 11.34% (S + 6.50%) 12/17/2026 1,517 1,476 1,517 1.4 %
Genuine Cable Group, LLC First lien senior secured loan 10.17% (S + 5.75%) 11/1/2026 4,988 4,824 4,925 4.7 %
I.D. Images Acquisition, LLC First lien senior secured loan 10.67% (S + 6.25%) 7/30/2026 3,085 3,026 3,085 2.9 %
First lien senior secured loan 10.98% (S + 6.25%) 7/30/2026 696 686 696 0.7 %
16,553 16,109 16,490 15.6 %
Wireless telecommunication services
Centerline Communications, LLC First lien senior secured loan 9.93% (S + 5.50%) 8/10/2027 670 651 667 0.6 %
First lien senior secured delayed draw loan 9.93% (S + 5.50%) 8/10/2027 2,997 2,948 2,982 2.8 %
3,667 3,599 3,649 3.4 %
Total Private Credit Investments 107,673 105,083 107,312 101.2 %

Total Debt Investments 107,673 105,083 107,312 101.2 %

Total Investments $ 105,083 $ 107,312 101.2 %

Liabilities in Excess of Other Assets (1,404 ) (1.2 )%
Net Assets $ 105,908 100.0 %

(1) ~~(1)~~ As of December 31, ~~2021,~~2022, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
(2) ~~(2)~~ The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(3) ~~(3)~~ As of December 31, ~~2021,~~2022, the tax cost of the Company’s investments approximates their amortized cost.
(4) ~~(4)~~ Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to ~~either~~ the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR), the Secured Overnight Funding Rate (“SOFR” or “S”) (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime ~~Rate)~~Rate or “P”).
(5) ~~(5)~~ Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The ~~indicated rate is~~Company may not acquire any non-qualifying asset unless, at the ~~yield as~~time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, ~~2021.~~2022, 4.2% of the Company’s total assets were in non-qualifying investments.
(6) The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss. Certain lenders represent a “first out” portion of the investment and have priority to the “last-out” portion with respect to payments of principal and interest.
See accompanying notes to consolidated financial statements.
6

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
Note 1. Organization
Organization
Kayne DL 2021, Inc. (the “Company”) is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company intends to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
The Company was formed as a Delaware corporation to make investments in middle-market companies and commenced operations on December 16, 2021.
As of March 31, ~~2022,~~2023, the Company has entered into subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of the Company’s common stock.
KA Credit Advisors II, LLC (the “Advisor”) ~~serves as the Company’s investment advisor. The Advisor~~ is an indirect subsidiary of Kayne Anderson Capital Advisors, L.P. (“KACALP” or “Kayne Anderson”). The Advisor is registered with the Securities and Exchange Commission (“SEC”) as an investment advisor under the Investment Advisory Act of ~~1940.~~1940, as amended. Subject to the overall supervision of the Company’s board of directors (the “Board”), the Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments, determining the value of the investments and monitoring its investments and portfolio companies on an ongoing basis. The Board consists of ~~four~~five directors, ~~three~~four of whom are independent (including the Board’s chairperson).
The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.
The Company conducts private offerings of its Common Stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). At the closing of any private offering, each investor will make a capital commitment (a “Capital Commitment”) to purchase shares of its Common Stock (“Shares”) pursuant to a subscription agreement entered into with the Company. Investors will be required to fund drawdowns to purchase Shares up to the amount of their respective Capital Commitments each time the Company delivers a notice to the investors. The Company commenced its loan origination and investment activities on December 16, 2021 contemporaneously with the initial drawdown from investors in the private offering.

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
Note 2. Significant Accounting Policies
A. Basis of Presentation—the accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an investment company and follows accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 — “Financial Services — Investment Companies.” In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of the financial statements for the periods presented, have been included.
B. Consolidation—As provided under Regulation S-X and ASC Topic 946 – “Financial Services – Investment Companies”, the Company will generally not consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the accounts of KDL Corp, LLC in its consolidated financial statements. As of March 31, ~~2022,~~2023, KDL Corp, LLC held no investments.
C. Use of Estimates—the preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Actual results could differ materially from those estimates.
D. Cash and Cash Equivalents—cash and cash equivalents include short-term, liquid investments with an original maturity of three months or less and include money market fund accounts.
E. Investment Valuation, Fair Value—the Company conducts the valuation of its investments consistent with GAAP and the 1940 Act. The Company’s investments will be valued no less frequently than quarterly, in accordance with the terms of Topic 820 of the Financial Accounting Standards Board’s Accounting Standards Codification, Fair Value Measurement and Disclosures (“ASC 820”).
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Directors has designated the Advisor as the “valuation designee” to perform fair value determinations of the Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board. The valuation designee performs fair valuation of the Company’s portfolio holdings in accordance with the Company’s Valuation Program, as approved by the Board.

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)

Traded Investments (Level 1 or Level 2)

Investments for which market quotations are readily available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes, loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices are stale or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the ~~Company’s~~Advisor’s valuation process for investments that are privately issued or otherwise restricted as to resale.

The Company may also invest, to a lesser extent, in equity securities purchased in conjunction with debt investments. While the Company anticipates these equity securities to be issued by privately held companies, the Company may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock Market, Inc. (“NASDAQ”) are valued, except as indicated below, at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

Non-Traded Investments (Level 3)

Investments that are privately issued or otherwise restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the Company’s Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the security on the valuation date. The Company expects that a significant majority of its investments will be Level 3 investments. Unless otherwise determined by the ~~Board,~~Advisor, the following valuation process is used for the Company’s Level 3 investments:

● ~~Investment Team~~ Valuation Designee. The applicable investments ~~are~~will be valued no less frequently than quarterly by ~~senior professionals of Kayne Anderson who are responsible for~~ the ~~portfolio investments.~~Advisor, with new investments valued at the time such investment was made. The value of each ~~portfolio company or~~Level 3 investment will be initially reviewed by the ~~investment professionals~~persons responsible for such portfolio company or ~~investment and, for non-traded investments (i.e., illiquid securities/instruments),~~investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs ~~will be used~~ to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will ~~be valued no less frequently than quarterly, with new investments valued at~~reasonably segregate fair value determinations from the ~~time~~portfolio management of the Company such ~~investment was made.~~that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

● ~~Investment Team~~ Valuation ~~Documentation~~Firm. Preliminary valuation conclusions will be determined by the Company’s executive officers. Such valuation and supporting documentation is submitted to the Audit Committee (a committee of the Board) and the Board onQuarterly, a ~~quarterly basis.~~
● ~~Audit Committee~~. The Audit Committee meets to consider the valuations submitted by our executive officers at the end of each quarter. Between meetings of the Audit Committee, the executive officers of the Company are authorized to make valuation determinations. All valuation determinations of the Audit Committee are subject to ratification by the Board at its next regular meeting.
● ~~Valuation Firm.~~ ~~Quarterly,~~ third-party valuation ~~firms~~firm engaged by the ~~Board review~~Advisor reviews the valuation methodologies and calculations employed for each of the Company’s investments that the ~~Company~~Advisor has placed on the “watch list” and approximately 25% of ~~its~~the Company’s remaining investments. ~~These~~The third-party valuation ~~firms~~firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis. The ~~Company expects the~~ quarterly report issued by ~~these~~the third-party valuation ~~firms~~firm will ~~assist the Board in determining~~provide positive assurance on the fair values of the investments reviewed.

● Oversight. The Board ~~Determination.~~ has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act. The ~~Company’s~~Audit Committee shall aid the Board ~~meets~~in overseeing the Advisor’s fair valuation of securities that are not publicly traded or for which current market values are not readily available. The Audit Committee shall meet quarterly to consider the valuations provided by the Company’s executive officers and the Audit Committee and ratify valuations for the applicable investments. The Company’s Board considers the report provided by the third-party valuation firms in reviewing and determining in good faithreview the fair value determinations, processes and written reports of the ~~applicable portfolio investments.~~Advisor as part of the Board’s oversight responsibilities.

~~The Board of Directors will be ultimately responsible~~

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for ~~the determination, in good faith, of the fair value of our portfolio investments.~~ shares and per share data)
(Unaudited)
Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to ~~our~~the Company’s financial statements will express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on ~~our~~the Company’s financial statements.

~~Kayne DL 2021, Inc.~~
~~Notes to Consolidated Financial Statements~~
~~(amounts in 000s, except for shares and per share data)~~
~~(Unaudited)~~
F. Interest Income Recognition— Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. To maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends for the year the income was earned, even though the Company has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.

Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, principal and interest are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection. As of March 31, 2023 and December 31, 2022, the Company did not have any investments in portfolio companies on non-accrual status.

G. Debt Issuance Costs – Costs incurred by the Company related to the issuance of its debt (credit ~~facility)~~facilities) are capitalized and amortized over the period the debt is outstanding. The Company has classified the costs incurred to issue its credit facilities as a deduction from the carrying value of the credit facilities on the Statement of Assets and Liabilities. For the purpose of calculating the Company’s asset coverage ratios pursuant to the 1940 Act, deferred issuance costs are not deducted from the carrying value of ~~debt.~~debt or preferred stock.

H. Dividends to Common Stockholders—Distributions to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Company’s board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed taxable income carried forward from the prior year for distribution in the current year. Net realized capital gains, if any, are generally distributed, although the Company may decide to retain such capital gains for investment.

I. Organizational Costs—organizational expenses include costs and expenses relating to the formation and organization of the Company. The Company has reimbursed the Advisor for these costs which are expensed as incurred.

J. Offering Costs – offering costs include costs and expenses incurred in connection with the offering of the Company’s common stock. These costs were capitalized as deferred offering expenses and included in prepaid expenses and other assets on the Statement of Assets and Liabilities. These costs were amortized over a twelve-month period beginning with the commencement of operations. These expenses consist primarily of legal fees and other costs incurred in connection with the Company’s share offerings, the preparation of the Company’s registration statement and registration fees. The Company reimbursed the Advisor for these costs. ~~The aggregate amount of organizational expenses and offering costs shall not exceed $350 for such reimbursement to the Advisor.~~

K. Income Taxes – it is the Company’s intention to continue to be treated as and to qualify each year for special tax treatment afforded a RIC under the Code. As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution of earnings to stockholders, the Company will not be subject to U.S. federal income tax.

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
The Company must pay distributions equal to 90% of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes. The Company will be subject to federal income tax on any undistributed portion of income. For purposes of the distribution test, the Company may elect to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year if such distributions are declared before the due date of its tax return, including any ~~extensions (October 15th).~~extensions.

All RICs are subject to a non-deductible 4% excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii) undistributed amounts from previous years on which the Company paid no U.S. federal income tax. A distribution will be treated as paid during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year, payable to stockholders of record on a date during such months and paid by the Company ~~during~~no later than January of the following year. Any such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year the distributions are declared, rather than when the distributions are actually received.


~~Kayne DL 2021, Inc.~~
~~Notes to Consolidated Financial Statements~~
~~(amounts in 000s, except for shares and per share data)~~
~~(Unaudited)~~
The Company does not currently qualify as a “publicly offered regulated investment company,” as defined in the Code. A “publicly offered regulated investment company” is a RIC whose shares are either (i) continuously offered pursuant to a public offering, (ii) regularly traded on an established securities market, or (iii) held by at least 500 persons at all times during the taxable year. The Company cannot determine when it will qualify as a publicly offered RIC. If the Company does not qualify as a publicly offered RIC during the tax year, a non-corporate shareholder’s allocable portion of the Company’s affected expenses, including its management fees, may be treated as an additional distribution to shareholders. A non-corporate shareholder’s allocable portion of these expenses may be treated as miscellaneous itemized deductions that are not currently deductible by such shareholders.
The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.

L. LIBOR Transition — The U.K. Financial Conduct Authority (“FCA”) announced that certain London Interbank Offered Rate (“LIBOR”) tenors in certain currencies ceased to be provided at the end of 2021 with all remaining tenors ceasing in June 2023. Alternatives to LIBOR have been established, or are in development in most major currencies, including the Secured Overnight Financing Rate (“SOFR”) that is intended to replace U.S. dollar LIBOR. Markets are developing in response to these new reference rates. ~~Uncertainty exists~~The LIBOR transition has become increasingly well-defined in advance of its anticipated discontinuation, but uncertainty remains related to the liquidity impact of the change in rates, and how to appropriately adjust these rates at the time of transition. ~~Although SOFR appears to be the preferred replacement rate for LIBOR, at~~At this time, it is not possible to predict fully the ~~full effect~~ultimate outcome of ~~any such changes or any establishment of alternative reference rates.~~these changes.

M. Commitments and Contingencies – in the normal course of business, the Company may enter into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

Note 3. Agreements and Related Party Transactions

A. Administration Agreement – on December 16, 2021, the Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and will provide or oversee the performance of its required administrative services and professional services rendered by others, which will include (but are not limited to), accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation and filing of its tax returns, and preparation of financial reports provided to its stockholders and filed with the SEC. On March 7, 2023, the Board approved a renewal of the Administration Agreement through March 15, 2024.

The Company will reimburse the Administrator for its costs and expenses incurred in performing its obligations under the Administration Agreement. As the Company reimburses the Administrator for its expenses, the Company will indirectly bear such cost. The Administration Agreement may be terminated by either party with 60 days’ written notice.

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
B. Investment Advisory Agreement – on December 16, 2021, the Company entered into an Investment Advisory Agreement with its Advisor. Pursuant to the Investment Advisory Agreement with its Advisor, the Company will pay its Advisor a management fee for investment advisory and management services. The Investment Advisory Agreement may be terminated by either party with 60 days’ written notice. On March 7, 2023, the Board approved a renewal of the Investment Advisory Agreement through March 15, 2024.

~~Kayne DL 2021, Inc.~~
~~Notes to Consolidated Financial Statements~~
~~(amounts in 000s, except for shares and per share data)~~
~~(Unaudited)~~
The Company has agreed to reimburse the Advisor and its affiliates for the third-party costs incurred on its behalf in connection with the formation and the offering of shares of the Company’s common stock. Amounts shown as payables to affiliates on the Statement of Assets and Liabilities represent organizational expenses and offering costs of the Company that were paid by the Advisor and its affiliates on behalf of the Company.
Management Fee

The management fee will be calculated at an annual rate of 0.75% of the fair market value of the Company’s investments including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase.

The management fee will be payable quarterly in arrears and calculated based on the average of the Company’s fair market value of investments, at the end of the two most recently completed calendar quarters, ~~of our fair market value of investments,~~ including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. Management fees for any partial quarter will be appropriately pro-rated.

For the three months ended March 31, 2023 and 2022, the Company incurred management fees of ~~$33.~~$221 and $33, respectively.

C. Other – KACALP, an affiliate of the Advisor, made an equity ~~contributions~~contribution of ~~$430~~$250 during ~~the year ended December 31, 2021. For~~ the three months ended March 31, ~~2022, KACALP did not make any equity contributions to the Company.~~2023.

Note 4. Investments

The following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022.

March 31, 2022 December 31, 2021
Amortized Fair Amortized Fair
Cost Value Cost Value
First-lien senior secured debt investments $ 23,910 $ 24,409 $ 11,499 $ 11,761
Short-term investments 18,946 18,946 31,239 31,239
Total Investments $ 42,856 $ 43,355 $ 42,738 $ 43,000
March 31, 2023 December 31, 2022
Amortized Fair Amortized Fair
Cost Value Cost Value
First-lien senior secured debt investments $ 128,530 $ 131,248 $ 105,083 $ 107,312
Short-term investments 2,938 2,938 - -
Total Investments $ 131,468 $ 134,186 $ 105,083 $ 107,312

As of March 31, ~~2022~~2023 and December 31, ~~2021, all~~2022, $4,589 and $4,601, respectively, of the Company’s ~~investments~~total assets were ~~qualifying~~non-qualifying assets as defined by Section 55(a) of the 1940 Act.

~~Beginning with the three months ended March 31, 2022, the~~The Company uses Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies. ~~As of December 31, 2021, the Company used GICS, Level 2 – Industry Group.~~

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
The industry composition of long-term investments based on fair value as of March 31, ~~2022~~2023 and December 31, ~~2021~~2022 was as follows:

~~March 31,~~
~~2022~~
~~Health care providers & services~~ ~~35.8~~ %
~~Food products~~ ~~11.8~~ %
~~Commercial services & supplies~~ ~~11.6~~ %
~~Building products~~ ~~9.6~~ %
~~Trading companies & distributors~~ ~~9.3~~ %
~~Diversified telecommunication services~~ ~~7.3~~ %
~~Auto components~~ ~~7.1~~ %
~~Machinery~~ ~~4.0~~ %
~~Software~~ ~~2.5~~ %
~~Leisure products~~ ~~1.0~~ %
~~Total~~ ~~100.0~~ %
~~December 31,~~
~~2021~~
~~Health care equipment & services~~ ~~39.8~~ %
~~Food & beverage~~ ~~22.7~~ %
~~Consumer durables & apparel~~ ~~19.9~~ %
~~Telecommunication services~~ ~~8.0~~ %
~~Capital goods~~ ~~6.0~~ %
~~Software & services~~ ~~3.6~~ %
~~Total~~ ~~100.0~~ %
March 31,
2023 December 31,
2022

Trading companies & distributors 20.3 % 15.4 %
Food products 13.2 % 12.6 %
Health care providers & services 10.3 % 12.6 %
IT services 7.3 % 9.0 %
Commercial services & supplies 6.9 % 6.6 %
Professional services 6.2 % 7.6 %
Containers & packaging 4.1 % 5.2 %
Aerospace & defense 3.7 % 4.5 %
Leisure products 3.3 % 1.2 %
Biotechnology 3.1 % 3.8 %
Wireless telecommunication services 2.8 % 3.4 %
Chemicals 2.5 % 0.2 %
Machinery 2.3 % 2.8 %
Software 2.3 % 2.8 %
Textiles, apparel & luxury goods 2.1 % 2.6 %
Auto components 2.1 % 1.6 %
Insurance 1.9 % 1.2 %
Building products 1.7 % 2.1 %
Diversified telecommunication services 1.4 % 1.6 %
Healthcare equipment & supplies 1.2 % 1.6 %
Electronic equipment, instruments & components 1.1 % 1.4 %
Asset management & custody banks 0.2 % 0.2 %
Total 100.0 % 100.0 %

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)

Note 5. Fair Value

The Fair Value Measurement Topic of the FASB Accounting Standards Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants under current market conditions at the measurement date. As required by ASC 820, the Company has performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their fair value determination. Inputs are the assumptions, along with considerations of risk, that a market participant would use to value an asset or a liability. In general, observable inputs are based on market data that is readily available, regularly distributed and verifiable that the Company obtains from independent, third-party sources. Unobservable inputs are developed by the Company based on its own assumptions of how market participants would value an asset or a liability.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories.

Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement.

Level 2 — Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best available information.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

The following ~~table presents~~tables present the fair value hierarchy of investments as of March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Note that the valuation levels below are not necessarily an indication of the risk or liquidity associated with the underlying investment.

Fair Value Hierarchy as of March 31, 2022
Investments: Level 1 Level 2 Level 3 Total
First-lien senior secured debt investments $ - $ - $ 24,409 $ 24,409
Short-term investments 18,946 - - 18,946
Total Investments $ 18,946 $ - $ 24,409 $ 43,355
Fair Value Hierarchy as of December 31, 2021
Investments: Level 1 Level 2 Level 3 Total
First-lien senior secured debt investments $ - $   - $ 11,761 $ 11,761
Short-term investments 31,239 - - 31,239
Total Investments $ 31,239 $ - $ 11,761 $ 43,000
Fair Value Hierarchy as of March 31, 2023
Investments: Level 1 Level 2 Level 3 Total
First-lien senior secured debt investments $ - $ - $ 131,248 $ 131,248
Short-term investments 2,938 - - 2,938
Total Investments $ 2,938 $ - $ 131,248 $ 134,186

Fair Value Hierarchy as of December 31, 2022
Investments: Level 1 Level 2 Level 3 Total
First-lien senior secured debt investments $ - $        - $ 107,312 $ 107,312
Short-term investments - - - -
Total Investments $ - $ - $ 107,312 $ 107,312

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)

~~For the three months ended March 31, 2022, the Company did not recognize any transfers to or from Level 3.~~
The following ~~table presents~~tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three months ended March 31, ~~2022:~~2023 and 2022.

For the three months ended
March 31,
2022

Fair value, beginning of period $ 11,761
Purchases of investments 12,478
Proceeds from sales of investments and principal repayments (94 )
Net change in unrealized gain (loss) 238
Net accretion of discount on investments 26
Transfers into (out of) Level 3 -
Fair value, end of period $ 24,409
First-lien
senior secured
debt investments
For the three months ended March 31, 2023
Fair value, beginning of period $ 107,312
Purchases of investments 24,044
Proceeds from sales of investments and principal repayments (790 )
Net change in unrealized gain (loss) 488
Net realized gain (loss) -
Net accretion of discount on investments 194
Transfers into (out of) Level 3 -
Fair value, end of period $ 131,248

First-lien
senior secured
debt investments
For the three months ended March 31, 2022
Fair value, beginning of period $ 11,761
Purchases of investments 12,478
Proceeds from sales of investments and principal repayments (94 )
Net change in unrealized gain (loss) 238
Net accretion of discount on investments 26
Transfers into (out of) Level 3 -
Fair value, end of period $ 24,409

For the three months ended March 31, 2023 and 2022, the Company did not recognize any transfers to or from Level 3. The increase in unrealized gain (loss) relates to investments that were held during the period. The Company includes these unrealized gains and losses on the Statement of Operations – Net Change in Unrealized Gains (Losses).

Valuation Techniques and Unobservable Inputs

Non-traded debt investments are typically valued using either a market yield analysis or an enterprise value analysis. For debt investments that are not ~~determined~~considered to be credit impaired, the ~~Company~~Advisor uses a market yield analysis to determine fair value. If the debt investment is considered to be credit impaired (which is determined by performing an enterprise value analysis), the ~~Company~~Advisor will use the enterprise value analysis or a liquidation basis analysis to determine fair value. ~~As of March 31, 2022, none of the Company’s non-traded debt investments were determined to be credit impaired, and the Company used~~
To determine fair value using a market yield analysis, ~~to determine fair value on these investments.~~
the Advisor discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield). To determine the estimated market yield for ~~our~~its debt investments, the ~~Company~~Advisor analyzes changes in the risk/reward (measured by yields and leverage) of middle market indices as compared to changes in risk/reward for the underlying investment ~~(the “Market Approach”)~~ and estimates the appropriate ~~credit spread~~discount rate for such debt investment. In this context, the discount rate and fair market value of the investment is impacted by the structure and pricing of the security relative to current market yields ~~and credit spreads~~ for similar investments in similar businesses as well as the financial performance of such business. In performing this analysis, the ~~Company~~Advisor considers data sources including, but not limited to: (i) industry publications, such as S&P Global’s High-End Middle Market Lending Review; Thomson Reuter’s Refinitiv Middle Market Monthly Stats; CapitalIQ; Pitchbook News; The Lead Left, and other data sources; (ii) comparable investments reviewed or completed by affiliates of the Advisor, and (iii) information obtained and provided by the Advisor’s independent valuation managers.

To determine if a debt investment is credit impaired, the ~~Company~~Advisor estimates the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business. The ~~Company~~Advisor utilizes the following valuation methodologies to determine the estimated enterprise value of the company: (i) analysis of valuations of publicly traded companies in a similar line of business (“public company comparable analysis”), (ii) analysis of valuations of M&A transaction valuations for companies in a similar line of business (“precedent transaction analysis”), (iii) discounted cash flows (“DCF analysis”) and (iv) other valuation methodologies.

In determining the non-traded debt investment valuations, the following factors are considered, where relevant: the nature and realizable value of any collateral; the company’s ability to make interest payments, amortization payments (if any) and other fixed charges; call features, put features and other relevant terms of the debt security; the company’s historical and projected financial results; the markets in which the company does business; changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be valued; and other relevant factors.

Kayne DL 2021, Inc.
Notes to Consolidated Financial Statements
(amounts in 000s, except for shares and per share data)
(Unaudited)
Equity investments in private companies are typically valued using one of or a combination of the following valuation techniques: (i) public company comparable analysis, (ii) precedent transaction analysis and (iii) DCF analysis.

~~Kayne DL 2021, Inc.~~
~~Notes to Consolidated Financial Statements~~
~~(amounts in 000s, except for shares and per share data)~~
~~(Unaudited)~~
Under all of these valuation techniques, the ~~Company~~Advisor estimates operating results of the companies in which ~~we invest,~~it invests, including earnings before interest expense, income tax expense, depreciation and amortization (“EBITDA”) and free cash flow. These estimates utilize unobservable inputs such as historical operating results, which may be unaudited, and projected operating results, which will be based on operating assumptions for such company. Investment performance data utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in information. These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the industry. Other unobservable inputs utilized in the valuation techniques outlined above include: discounts for lack of marketability, selection of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected required rates of return (discount rates).

Quantitative Table for Valuation Techniques

As of March 31, 2022
Fair Valuation Unobservable Weighted
Value Technique Input Range Average
First-lien senior secured debt investments $ 24,409 Market Approach - Yield Analysis Credit Spreads 5.00% - 7.05% 5.86 %
The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of March 31, 2023 and December 31, 2022. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Advisor’s determination of fair value.

As of December 31, 2021
Fair Valuation Unobservable Weighted
Value Technique Input Range Average
First-lien senior secured debt investments $ 11,761 Market Approach - Yield Analysis Credit Spreads 5.00% - 6.50% 5.77%
As of March 31, 2023
Fair Value Valuation
Technique Unobservable
Input Range Weighted
Average
First-lien senior secured debt investments $ 131,248 Discounted cash
flow analysis Discount rate 8.2% - 12.0% 9.5 %

As of December 31, 2022
Fair Value Valuation
Technique Unobservable
Input Range Weighted
Average
First-lien senior secured debt investments $ 107,312 Discounted cash
flow analysis Discount rate 8.7% - 15.0% 9.8 %
Note 6. Debt

On February 25, 2022, the Company entered into a senior secured revolving credit facility (the “Subscription Credit Facility”), that has a total commitment of $25,000 and a maturity date of February ~~25, 2023.~~22, 2024. The Subscription Credit Facility permits the Company to borrow up to $25,000, subject to availability under the borrowing base which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements. The interest rate on the Subscription Credit Facility is equal to SOFR plus an applicable spread of 1.975% with no floor. The Company is also required to pay a commitment fee of 0.25% per annum on any unused portion of the Subscription Credit Facility.

~~Debt obligations consisted of the following as of March 31, 2022:~~

March 31, 2022
Aggregate
Principal
Committed Outstanding Principal Amount Available⁽¹⁾
Subscription Credit Facility $ 25,000 $ 5,000 $ 20,000
Total debt $ 25,000 $ 5,000 $ 20,000

~~For the three months ended March 31, 2022, the components of interest expense were as follows:~~

	Offering price per		Common stock		Aggregate offering
Common stock issue date	share		shares issued		amount
February 28, 2023	$	5,236		4,775	$	25,000
				4,775	$	25,000

	For the three months ended March 31,
	2023 ($ in millions)			2022 ($ in millions)

New investments:
Gross new investments commitments	$	24.0		$	15.2
Less: investment commitments sold down, exited or repaid⁽¹⁾		(0.5	)		(0.1	)
Net investment commitments		23.5			15.1

Principal amount of investments funded:
Private credit investments	$	24.7		$	12.7
Liquid credit investments		-			-
Total principal amount of investments funded		24.7			12.7

Principal amount of investments sold:
Private credit investments		(0.7	)		(0.1	)
Liquid credit investments		-			-
Total principal amount of investments sold or repaid		(0.7	)		(0.1	)

Number of new investment commitments		14			12
Average new investment commitment amount	$	1.7		$	1.3
Weighted average maturity for new investment commitments⁽²⁾		4.3 years			4.5 years
Percentage of new debt investment commitments at floating rates		100.0	%		100.0	%
Percentage of new debt investment commitments at fixed rates		0.0	%		0.0	%
Weighted average interest rate of new investment commitments⁽³⁾		11.3	%		6.9	%
Weighted average spread over benchmark rate of new floating rate investment commitments⁽³⁾		6.4	%		5.9	%
Weighted average interest rate on investment sold or paid down⁽⁴⁾		11.3	%		6.2	%

	March 31, 2022		December 31, 2021
	(Unaudited)
Assets:
Investments, at fair value:
Long-term investments (amortized cost of $23,910 and $11,499)	$	24,409	$	11,761
Short-term investments (amortized cost of $18,946 and $31,239)		18,946		31,239
Cash and cash equivalents		4,783		266
Deferred offering costs		101		137
Interest receivable		123		12
Prepaid expenses and other assets		165		112
Total Assets	$	48,527	$	43,527

Liabilities:
Subscription credit facility (Note 6)	$	5,000	$	-
Payable to affiliate		11		471
Management fee payable		33		2
Accrued expenses and other liabilities		330		175
Total Liabilities	$	5,374	$	648

Commitments and contingencies (Note 8)

Net Assets:
Common Shares, $0.001 par value; 100,000 shares authorized; 8,600 as of March 31, 2022 and December 31, 2021 issued and outstanding	$	-	$	-
Additional paid-in capital		42,824		42,824
Total distributable earnings (deficit)		329		55
Total Net Assets	$	43,153	$	42,879
Total Liabilities and Net Assets	$	48,527	$	43,527
Net Asset Value Per Common Share	$	5,018	$	4,986

	March 31, 2023 (Unaudited)			December 31, 2022
Assets:
Investments, at fair value:
Long-term investments (amortized cost of $128,530 and $105,083)	$	131,248		$	107,312
Short-term investments (amortized cost of $2,938)		2,938			-
Cash and cash equivalents		1,125			715
Receivable for principal payments on investments		24			22
Interest receivable		1,201			972
Prepaid expenses and other assets		72			101
Total Assets	$	136,608		$	109,122

Liabilities:
Subscription Credit Facility (Note 6)	$	-		$	750
Unamortized Subscription Credit Facility issuance costs		(50	)		(35	)
Payable for investments purchased		-			137
Distributions payable		2,952			1,768
Management fee payable		221			156
Accrued expenses and other liabilities		345			438
Total Liabilities	$	3,468		$	3,214

Commitments and contingencies (Note 8)

Net Assets:
Common Shares, $0.001 par value; 100,000 shares authorized; 25,668 and 20,554 as of March 31, 2023 and December 31, 2022, respectively, issued and outstanding	$	-		$	-
Additional paid-in capital		130,561			103,811
Total distributable earnings (deficit)		2,579			2,097
Total Net Assets	$	133,140		$	105,908
Total Liabilities and Net Assets	$	136,608		$	109,122
Net Asset Value Per Common Share	$	5,187		$	5,153

	For the three months ended March 31, 2022
Income:
Investment income from investments:
Interest income	$	346
Total Investment Income		346

Expenses:
Interest expense		18
Management fees		33
Professional fees		99
Directors fees		27
Offering costs		35
Other general and administrative expenses		98
Total Expenses		310
Net Investment Income (Loss)		36

Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Investments		-
Total net realized gains (losses)		-
Net change in unrealized gains (losses):
Investments		238
Total net change in unrealized gains (losses)		238
Total realized and unrealized gains (losses)		238

Net Increase (Decrease) in Net Assets Resulting from Operations	$	274

Per Common Share Data:
Basic and diluted net investment income per common share	$	4
Basic and diluted net increase in net assets resulting from operations	$	32
Weighted Average Common Shares Outstanding - Basic and Diluted		8,600

	For the three months ended March 31,
	2023		2022
Income:
Investment income from investments:
Interest income	$	3,499	$	346
Total Investment Income		3,499		346

Expenses:
Interest expense		111		18
Management fees		221		33
Professional fees		85		99
Directors fees		35		27
Offering costs		-		35
Other general and administrative expenses		101		98
Total Expenses		553		310
Net Investment Income (Loss)		2,946		36

Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Investments		-		-
Total net realized gains (losses)		-		-
Net change in unrealized gains (losses):
Investments		488		238
Total net change in unrealized gains (losses)		488		238
Total realized and unrealized gains (losses)		488		238

Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,434	$	274

Per Common Share Data:
Basic and diluted net investment income per common share	$	131	$	4
Basic and diluted net increase in net assets resulting from operations	$	152	$	32
Weighted Average Common Shares Outstanding - Basic and Diluted		22,546		8,600

	For the three months ended March 31, 2022
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss)	$	36
Net realized gains (losses) on investments		-
Net change in unrealized gains (losses) on investments		238
Net Increase (Decrease) in Net Assets Resulting from Operations		274

Total Increase (Decrease) in Net Assets		274
Net Assets, Beginning of Period		42,879
Net Assets, End of Period	$	43,153

	For the three months ended March 31, 2022

Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	274
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net change in unrealized (gains)/losses on investments		(238	)
Net accretion of discount on investments		(26	)
Sales of short-term investments, net		12,293
Purchases of portfolio investments		(12,478	)
Proceeds from sales of investments and principal repayments		94
Amortization of deferred financing cost		9
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in interest and dividends receivable		(111	)
(Increase)/decrease in deferred offering costs		36
(Increase)/decrease in prepaid expenses and other assets		33
Increase/(decrease) in management fees payable		31
Increase/(decrease) in accrued organizational and offering costs, net		(460	)
Increase/(decrease) in accrued other general and administrative expenses		155
Net cash used in operating activities		(388	)
Cash Flows from Financing Activities:
Borrowings on subscription credit facility, net		5,000
Payments of debt issuance costs		(95	)
Net cash provided by financing activities		4,905
Net increase in cash and cash equivalents		4,517
Cash and cash equivalents, beginning of period		266
Cash and cash equivalents, end of period	$	4,783

Supplemental and Non-Cash Information:
Interest paid during the period	$	-
Non-cash financing activities not included herein consisted of reinvestment of dividends	$	-

Portfolio Company⁽¹⁾	Investment	Interest Rate	Maturity Date		Principal / Par		Amortized Cost⁽²⁾⁽³⁾		Fair Value		Percentage of Net Assets
Debt Investments
Private Credit Investments⁽⁴⁾
Aerospace & defense
Basel U.S. Acquisition Co., Inc. (IAC) (5)	First lien senior secured revolving loan	11.58% (S + 6.50%)		12/5/2028		-	$	-	$	-		0.0	%
	First lien senior secured loan	11.58% (S + 6.50%)		12/5/2028		4,589		4,471		4,589		3.5	%
Precinmac (US) Holdings, Inc.	First lien senior secured loan	10.91% (S + 6.00%)		8/31/2027		283		277		279		0.2	%
						4,872		4,748		4,868		3.7	%
Asset management & custody banks
Atria Wealth Solutions, Inc.	First lien senior secured delayed draw loan	11.16% (S + 6.00%)		2/29/2024		215		193		215		0.2	%
						215		193		215		0.2	%
Auto components
Speedstar Holding LLC	First lien senior secured delayed draw loan	12.31% (S + 7.25%)		1/22/2027		187		182		187		0.1	%
	First lien senior secured loan	12.16% (S + 7.25%)		1/22/2027		796		773		796		0.6	%
Vehicle Accessories, Inc.	First lien senior secured loan	10.66% (S + 5.50%)		11/30/2026		1,710		1,687		1,710		1.3	%
						2,693		2,642		2,693		2.0	%
Biotechnology
Alcami Corporation (Alcami)	First lien senior secured delayed draw loan	11.91% (S + 7.00%)		6/30/2024		-		-		-		0.0	%
	First lien senior secured revolving loan	11.91% (S + 7.00%)		12/21/2028		-		-		-		0.0	%
	First lien senior secured loan	11.91% (S + 7.00%)		12/21/2028		4,099		3,932		4,099		3.1	%
						4,099		3,932		4,099		3.1	%
Building products
BCI Burke Holding Corp.	First lien senior secured delayed draw loan	10.66% (L + 5.50%)		12/14/2023		85		82		85		0.1	%
	First lien senior secured loan	10.66% (L + 5.50%)		12/14/2027		2,180		2,151		2,180		1.6	%
	First lien senior secured revolving loan	10.66% (L + 5.50%)		6/14/2027		-		-		-		0.0	%
						2,265		2,233		2,265		1.7	%
Chemicals
Shrieve Chemical Company, LLC	First lien senior secured loan	11.05% (L + 6.38%)		12/2/2024		254		250		254		0.2	%
	First lien senior secured loan	11.20% (L + 6.38%)		12/2/2024		2,962		2,936		2,962		2.2	%
						3,216		3,186		3,216		2.4	%
Commercial services & supplies
Allentown, LLC	First lien senior secured delayed draw loan	10.91% (S + 6.00%)		10/22/2023		-		-		-		0.0	%
	First lien senior secured revolving loan	13.00% (P + 5.00%)		4/22/2027		106		104		104		0.1	%
	First lien senior secured loan	10.91% (S + 6.00%)		4/22/2027		2,271		2,250		2,225		1.7	%
American Equipment Holdings LLC	First lien senior secured delayed draw loan	11.24% (S + 6.00%)		11/5/2026		2,000		1,920		2,000		1.4	%
BLP Buyer, Inc. (Bishop Lifting Products)	First lien senior secured revolving loan	11.09% (S + 6.25%)		2/1/2027		91		88		90		0.1	%
	First lien senior secured loan	11.33% (S + 6.50%)		2/1/2027		1,995		1,950		1,970		1.5	%
	First lien senior secured loan	11.08% (S + 6.25%)		2/1/2027		2,723		2,680		2,688		2.0	%
						9,186		8,992		9,077		6.8	%
Containers & packaging
Drew Foam Companies, Inc.	First lien senior secured loan	11.55% (S + 6.75%)		11/5/2025		2,985		2,946		2,963		2.2	%
FCA, LLC (FCA Packaging)	First lien senior secured revolving loan	11.29% (S + 6.50%)		7/18/2028		-		-		-		0.0	%
	First lien senior secured loan	11.29% (S + 6.50%)		7/18/2028		2,380		2,343		2,404		1.8	%
						5,365		5,289		5,367		4.0	%
Diversified telecommunication services
Pavion Corp. (f/k/a Corbett Technology Solutions, Inc.)	First lien senior secured loan	10.80% (S + 5.75%)		10/29/2027		930		915		930		0.7	%
	First lien senior secured loan	10.83% (S + 5.75%)		10/29/2027		837		823		837		0.6	%
						1,767		1,738		1,767		1.3	%
Electronic equipment, instruments & components
Process Insights, Inc.	First lien senior secured loan	11.18% (S + 6.00%)		10/30/2025		1,469		1,446		1,469		1.1	%
						1,469		1,446		1,469		1.1	%

			Maturity		Principal /		Amortized			Fair			Percentage
Portfolio Company⁽¹⁾	Investment	Interest Rate	Date		Par		Cost⁽²⁾⁽³⁾			Value			of Net Assets
Debt Investments
Private Credit Investments⁽⁴⁾
Auto components
Vehicle Accessories, Inc.	First lien senior secured loan	6.50% (S + 5.50%)		11/30/2026		1,727	$	1,698		$	1,727			4.0	%
						1,727		1,698			1,727			4.0	%
Building products
BCI Burke Holding Corp.	First lien senior secured loan	6.75% (L + 5.75%)		12/14/2027		2,288		2,250			2,288			5.3	%
	First lien senior secured delayed draw loan	6.75% (L + 5.75%)		12/14/2022		-		-			-			-	%
	First lien senior secured revolving loan	6.75% (L + 5.75%)		6/14/2027		57		53			57			0.1	%
						2,345		2,303			2,345			5.4	%
Commercial services & supplies
Bishop Lifting Products , Inc.	First lien senior secured revolving loan	7.25% (L + 6.25%)		2/1/2027		91		87			91			0.2	%
	First lien senior secured loan	7.25% (L + 6.25%)		2/1/2027		2,750		2,697			2,750			6.4	%
						2,841		2,784			2,841			6.6	%
Diversified telecommunication services
Corbett Technology Solutions, Inc.	First lien senior secured loan	6.00% (L + 5.00%)		10/29/2027		846		829			846			1.9	%
	First lien senior secured loan	6.01% (L + 5.00%)		10/29/2027		940		922			940			2.2	%
						1,786		1,751			1,786			4.1	%
Food products
Siegel Egg Co., LLC	First lien senior secured revolving loan	7.00% (L + 6.00%)		12/29/2026		377		367			377			0.9	%
	First lien senior secured loan	7.00% (L + 6.00%)		12/29/2026		2,502		2,459			2,502			5.8	%
						2,879		2,826			2,879			6.7	%
Health care providers & services
Brightview, LLC	First lien senior secured loan	6.75% (L + 5.75%)		4/12/2024		2,206		2,181			2,206			5.1	%
	First lien senior secured delayed draw loan	6.75% (L + 5.75%)		4/12/2024		-		-				-		-	%
	First lien senior secured revolving loan	6.75% (L + 5.75%)		4/12/2024		-		-			-			-	%
Guardian Dentistry Partners	First lien senior secured delayed draw loan	7.00% (L + 6.00%)		8/20/2026		262		234			262			0.6	%
	First lien senior secured loan	7.00% (L + 6.00%)		8/20/2026		1,020		1,008			1,020			2.4	%
OMH-Healthedge Holdings, LLC	First lien senior secured loan	7.50% (L + 6.00%)		10/24/2025		3,000		2,934			3,000			7.0	%
SGA Dental Partners Holdings, LLC	First lien senior secured delayed draw loan	6.50% (L + 5.50%)		12/30/2026		808		787			808			1.9	%
	First lien senior secured loan	6.50% (L + 5.50%)		12/30/2026		1,444		1,413			1,444			3.3	%
						8,740		8,557			8,740			20.3	%
Leisure products
MacNeill Pride Group	First lien senior secured delayed draw loan	7.25% (S + 6.25%)		4/22/2026		90		63			90			0.2	%
	First lien senior secured revolving loan	7.25% (S + 6.25%)		4/22/2026		156		151			156			0.4	%
						246		214			246			0.6	%
Machinery
Pennsylvania Machine Works, LLC	First lien senior secured loan	7.25% (S + 6.25%)		3/6/2027		975		966			975			2.3	%
						975		966			975			2.3	%
Software
Peak Technologies	First lien senior secured loan	8.07% (L + 7.07%)		4/1/2026		612		600			612			1.4	%
						612		600			612			1.4	%
Trading companies & distributors
CGI Automated Manufacturing LLC	First lien senior secured loan	7.00% (S + 6.00%)		12/17/2026		1,556		1,521			1,556			3.6	%
	First lien senior secured delayed draw loan	7.00% (S + 6.00%)		5/17/2023		-		-			-			-	%
	First lien senior secured revolving loan	7.00% (S + 6.00%)		12/17/2026		-			-		-			-	%
I.D. Images Acquisition, LLC	First lien senior secured loan	7.26% (L + 6.25%)		7/30/2026		702		690			702			1.6	%
						2,258		2,211			2,258			5.2	%
Total Private Credit Investments						24,409		23,910			24,409			56.6	%

Total Debt Investments						24,409		23,910			24,409			56.6	%

	Number of				Fair			Percentage
	Shares		Cost		Value			of Net Assets
Short-Term Investments
First American Treasury Obligations Fund - Institutional Class Z, 0.19% ⁽⁵⁾		18,946		18,946		18,946			43.9	%
Total Short-Term Investments		18,946		18,946		18,946			43.9	%

Total Investments			$	42,856	$	43,355			100.5	%

Liabilities in Excess of Other Assets						(202	)		(0.5	)%
Net Assets					$	43,153			100.0	%

	Number of Shares		Cost		Fair Value			Percentage of Net Assets
Short-Term Investments
First American Treasury Obligations Fund - Institutional Class Z, 0.01% ⁽⁵⁾		31,239		31,239		31,239			72.9	%
Total Short-Term Investments		31,239		31,239		31,239			72.9	%
Total Investments			$	42,738	$	43,000			100.3	%

Liabilities in Excess of Other Assets						(121	)		(0.3	)%
Net Assets					$	42,879			100.0	%

(5)	~~(5)~~	Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The ~~indicated rate is~~Company may not acquire any non-qualifying asset unless, at the ~~yield as~~time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, ~~2021.~~2022, 4.2% of the Company’s total assets were in non-qualifying investments.
(6)	The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss. Certain lenders represent a “first out” portion of the investment and have priority to the “last-out” portion with respect to payments of principal and interest.

	March 31, 2022				December 31, 2021
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
First-lien senior secured debt investments	$	23,910	$	24,409	$	11,499	$	11,761
Short-term investments		18,946		18,946		31,239		31,239
Total Investments	$	42,856	$	43,355	$	42,738	$	43,000

	March 31, 2023				December 31, 2022
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
First-lien senior secured debt investments	$	128,530	$	131,248	$	105,083	$	107,312
Short-term investments		2,938		2,938		-		-
Total Investments	$	131,468	$	134,186	$	105,083	$	107,312

	~~March 31,~~ ~~2022~~

~~Health care providers & services~~		~~35.8~~	%
~~Food products~~		~~11.8~~	%
~~Commercial services & supplies~~		~~11.6~~	%
~~Building products~~		~~9.6~~	%
~~Trading companies & distributors~~		~~9.3~~	%
~~Diversified telecommunication services~~		~~7.3~~	%
~~Auto components~~		~~7.1~~	%
~~Machinery~~		~~4.0~~	%
~~Software~~		~~2.5~~	%
~~Leisure products~~		~~1.0~~	%
~~Total~~		~~100.0~~	%

	~~December 31,~~ ~~2021~~

~~Health care equipment & services~~		~~39.8~~	%
~~Food & beverage~~		~~22.7~~	%
~~Consumer durables & apparel~~		~~19.9~~	%
~~Telecommunication services~~		~~8.0~~	%
~~Capital goods~~		~~6.0~~	%
~~Software & services~~		~~3.6~~	%
~~Total~~		~~100.0~~	%

	March 31, 2023			December 31, 2022

Trading companies & distributors		20.3	%		15.4	%
Food products		13.2	%		12.6	%
Health care providers & services		10.3	%		12.6	%
IT services		7.3	%		9.0	%
Commercial services & supplies		6.9	%		6.6	%
Professional services		6.2	%		7.6	%
Containers & packaging		4.1	%		5.2	%
Aerospace & defense		3.7	%		4.5	%
Leisure products		3.3	%		1.2	%
Biotechnology		3.1	%		3.8	%
Wireless telecommunication services		2.8	%		3.4	%
Chemicals		2.5	%		0.2	%
Machinery		2.3	%		2.8	%
Software		2.3	%		2.8	%
Textiles, apparel & luxury goods		2.1	%		2.6	%
Auto components		2.1	%		1.6	%
Insurance		1.9	%		1.2	%
Building products		1.7	%		2.1	%
Diversified telecommunication services		1.4	%		1.6	%
Healthcare equipment & supplies		1.2	%		1.6	%
Electronic equipment, instruments & components		1.1	%		1.4	%
Asset management & custody banks		0.2	%		0.2	%
Total		100.0	%		100.0	%

	Fair Value Hierarchy as of March 31, 2022
Investments:	Level 1		Level 2		Level 3		Total
First-lien senior secured debt investments	$	-	$	-	$	24,409	$	24,409
Short-term investments		18,946		-		-		18,946
Total Investments	$	18,946	$	-	$	24,409	$	43,355

	Fair Value Hierarchy as of December 31, 2021
Investments:	Level 1		Level 2		Level 3		Total
First-lien senior secured debt investments	$	-	$	-	$	11,761	$	11,761
Short-term investments		31,239		-		-		31,239
Total Investments	$	31,239	$	-	$	11,761	$	43,000

	For the three months ended
	March 31, 2022

Fair value, beginning of period	$	11,761
Purchases of investments		12,478
Proceeds from sales of investments and principal repayments		(94	)
Net change in unrealized gain (loss)		238
Net accretion of discount on investments		26
Transfers into (out of) Level 3		-
Fair value, end of period	$	24,409

	First-lien
	senior secured
	debt investments
For the three months ended March 31, 2023
Fair value, beginning of period	$	107,312
Purchases of investments		24,044
Proceeds from sales of investments and principal repayments		(790	)
Net change in unrealized gain (loss)		488
Net realized gain (loss)		-
Net accretion of discount on investments		194
Transfers into (out of) Level 3		-
Fair value, end of period	$	131,248

		First-lien
		senior secured
		debt investments
For the three months ended March 31, 2022
Fair value, beginning of period	$	11,761
Purchases of investments		12,478
Proceeds from sales of investments and principal repayments		(94	)
Net change in unrealized gain (loss)		238
Net accretion of discount on investments		26
Transfers into (out of) Level 3		-
Fair value, end of period	$	24,409

	March 31, 2022
	Aggregate Principal Committed		Outstanding Principal		Amount Available⁽¹⁾
Subscription Credit Facility	$	25,000	$	5,000	$	20,000
Total debt	$	25,000	$	5,000	$	20,000

	March 31, 2023
	Aggregate Principal Committed		Outstanding Principal		Amount Available ⁽¹⁾
Subscription Credit Facility	$	25,000	$	-	$	25,000
Total debt	$	25,000	$	-	$	25,000

	As of		As of
	March 31, 2022		December 31, 2021
BCI Burke Holding Corp.	$	649	$	654
Bishop Lifting Products , Inc.		159		-
Brightview, LLC		783		783
CGI Automated Manufacturing LLC		1,444		-
Guardian Dentistry Partners		1,716		1,977
MacNeill Pride Group		2,178		-
SGA Dental Partners Holdings, LLC		743		1,552
Siegel Egg Co., LLC		121		334
Total unfunded commitments	$	7,793	$	5,300

	As of March 31, 2023		As of December 31, 2022
Alcami Corporation (Alcami)	$	890	$	890
Allcat Claims Service, LLC		460		1,723
Allentown, LLC		606		606
American Equipment Holdings LLC		3,000		5,000
American Soccer Company, Incorporated (SCORE)		203		243
Atria Wealth Solutions, Inc.		2,784		2,784
Basel U.S. Acquisition Co., Inc. (IAC)		399		399
BCI Burke Holding Corp.		618		618
BLP Buyer, Inc. (Bishop Lifting Products)		159		159
BR PJK Produce, LLC (Keany)		228		228
Brightview, LLC		450		489
CGI Automated Manufacturing, LLC		96		160
DISA Holdings Corp. (DISA)		1,198		1,189
FCA, LLC (FCA Packaging)		288		288
Gulf Pacific Holdings, LLC		922		1,120
IF&P Foods, LLC (FreshEdge)		815		874
Improving Acquisition LLC		327		354
Krayden Holdings, Inc.		1,813		-
Light Wave Dental Management LLC		677		677
LSL Industries, LLC (LSL Healthcare)		1,305		1,305
MacNeill Pride Group		1,106		1,055
SGA Dental Partners Holdings, LLC		207		207
Siegel Egg Co., LLC		263		192
Universal Marine Medical Supply International, LLC (Unimed)		588		588
Worldwide Produce Acquisition, LLC		1,328		-
Total unfunded commitments	$	20,730	$	21,148

	For the three months ended
	March 31, 2022 (amounts in thousands, except share and per share amounts)
Per Common Share Operating Performance ⁽¹⁾
Net Asset Value, Beginning of Period	$	4,986

Results of Operations:
Net Investment Income		4
Net Realized and Unrealized Gain (Loss) on Investments⁽²⁾		28
Net Increase (Decrease) in Net Assets Resulting from Operations		32

Net Asset Value, End of Period	$	5,018

Shares Outstanding, End of Period		8,600

Ratio/Supplemental Data
Net assets, end of period	$	43,153
Weighted-average shares outstanding		8,600
Total Return⁽³⁾		0.6	%
Portfolio turnover		0.5	%
Ratio of operating expenses to average net assets		2.9	%
Ratio of net investment income (loss) to average net assets		0.3	%

	For the three months ended March 31,
	2023 (amounts in thousands, except share and per share amounts)			2022 (amounts in thousands, except share and per share amounts)
Per Common Share Operating Performance ⁽¹⁾
Net Asset Value, Beginning of Period	$	5,153		$	4,986

Results of Operations:
Net Investment Income		131			4
Net Realized and Unrealized Gain (Loss) on Investments⁽²⁾		18			28
Net Increase (Decrease) in Net Assets Resulting from Operations		149			32

Distributions to Common Stockholders
Distributions from Net Investment Income		(115	)		-
Net Decrease in Net Assets Resulting from Distributions		(115	)		-

Net Asset Value, End of Period	$	5,187		$	5,018

Shares Outstanding, End of Period		25,668			8,600

Ratio/Supplemental Data
Net assets, end of period	$	133,140		$	43,153
Weighted-average shares outstanding		22,546			8,600
Total Return⁽³⁾		2.9	%		0.6	%
Portfolio turnover		0.7	%		0.5	%
Ratio of operating expenses to average net assets		1.9	%		2.9	%
Ratio of net investment income (loss) to average net assets		10.0	%		0.3	%

(3)	Based on the rate in effect at March 31, 2023 per our Consolidated Schedule of Investments for new commitments entered into during the quarter.
(4)	Based on the underlying rate if still held at March 31, 2023. For those investments sold or paid down in full during the year, based on the rate in effect at the time of sale or paid down.

	For the three months ended
	March 31, 2022 ($ in millions)

New investments:
Gross investments	$	15.2
Less: sold investments		(0.1	)
Total new investments		15.1

Principal amount of investments funded:
Private credit investments	$	12.7
Liquid credit investments		-
Total principal amount of investments funded		12.7

Principal amount of investments sold:
Private credit investments		(0.1	)
Liquid credit investments		-
Total principal amount of investments sold or repaid		(0.1	)

Number of new investment commitments		12
Average new investment commitment amount	$	1.3
Weighted average maturity for new investment commitments		4.5 years
Percentage of new debt investment commitments at floating rates		100.0	%
Percentage of new debt investment commitments at fixed rates		0.0	%
Weighted average interest rate of new investment commitments		6.9	%
Weighted average spread over LIBOR of new floating rate investment commitments		5.9	%
Weighted average interest rate on investment sold or paid down		6.2	%

	~~March 31, 2022~~

~~Health care providers & services~~		~~35.8~~	%
~~Food products~~		~~11.8~~	%
~~Commercial services & supplies~~		~~11.6~~	%
~~Building products~~		~~9.6~~	%
~~Trading companies & distributors~~		~~9.3~~	%
~~Diversified telecommunication services~~		~~7.3~~	%
~~Auto components~~		~~7.1~~	%
~~Machinery~~		~~4.0~~	%
~~Software~~		~~2.5~~	%
~~Leisure products~~		~~1.0~~	%
~~Total~~		~~100.0~~	%

	For the three months ended
	March 31, 2022
	($ in millions)
Total investment income	$	0.34
Less: Net expenses		0.31
Net investment income		0.03
Net realized gains (losses) on investments		-
Net change in unrealized gains (losses) on investments		0.24
Net increase (decrease) in net assets resulting from operations	$	0.27