UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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,June 30, 2022
OR
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number 814-01332814-01453
T Series Middle Market Loan Fund LLC
(Exact name of registrant as specified in charter)
Delaware
(State or other jurisdiction of incorporation or registration)
87-3271290
(I.R.S. Employer Identification No.)
1585 Broadway, New York, NY
(Address of principal executive offices)
10036
(Zip Code)
1 212-761-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
NoneNoneNone
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, a smaller reporting company, or an emerging growth company. See 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 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,August 9, 2022, there was no established public market for the registrant’s limited liability company common units.
The number of the registrant’s limited liability company common units outstanding at May 11,August 9, 2022 was 14,525,07123,780,752




T Series Middle Market Loan Fund LLC
TABLE OF CONTENTS
Part I. Financial Information
Item 1.
Consolidated Statement of Cash Flows for the threesix months ended March 31,June 30, 2022(Unaudited)
Item 2.
Item 3.
Item 4.
Part II. Other Information
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
SIGNATURES




Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the unitholders and the Board of Directors of T Series Middle Market Loan Fund LLC
Results of Review of Interim Financial Information
We have reviewed the accompanying consolidated statements of financial condition of T Series Middle Market Loan Fund LLC and subsidiaries (the "Company"), including the consolidated schedule of investments as of March 31,June 30, 2022, and the related consolidated statementstatements of operations, changes in members’ capital and cash flow for the three-month and six-month periods ended June 30, 2022, and cash flows for the six-month period ended March 31,June 30, 2022, and the related notes (collectively referred to as the “interim financial information”). Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial condition of the Company including the consolidated schedule of investments as of December 31, 2021, and the related consolidated statement of operations, changes in net assets, and cash flowflows for the period from September 14, 2021 (inception) throughto December 31, 2021 (not presented herein); and in our report dated March 22, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial condition as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of financial condition from which it has been derived.
Basis for Review Results
This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviewreviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ Deloitte & Touche LLP
New York, NY
May 11,August 9, 2022
3
TableTable of Contents
T Series Middle Market Loan Fund LLC
Consolidated Statements of Financial Condition
(In thousands, except unit and per unit amounts)
As of
March 31, 2022
(Unaudited)		December 31, 2021
(Audited)		June 30, 2022
(Unaudited)		December 31, 2021
(Audited)
AssetsAssetsAssets
Non-controlled/non-affiliated investments, at fair value (amortized cost of $531,565 and $364,398 at March 31, 2022 and December 31, 2021, respectively)$531,733 $364,398 
Non-controlled/non-affiliated investments, at fair value (amortized cost of $843,869 and $364,398 at June 30, 2022 and December 31, 2021, respectively)Non-controlled/non-affiliated investments, at fair value (amortized cost of $843,869 and $364,398 at June 30, 2022 and December 31, 2021, respectively)$831,909 $364,398 
CashCash71,096 84,597 Cash65,915 84,597 
Deferred financing costsDeferred financing costs3,200 1,480 Deferred financing costs2,869 1,480 
Deferred offering costsDeferred offering costs44 60 Deferred offering costs25 60 
Interest and dividend receivable from non-controlled/non-affiliated investmentsInterest and dividend receivable from non-controlled/non-affiliated investments2,794 722 Interest and dividend receivable from non-controlled/non-affiliated investments3,650 722 
Receivable for investments sold76 38 
Receivable for investments sold/repaidReceivable for investments sold/repaid147 38 
Prepaid expenses and other assetsPrepaid expenses and other assets92 152 Prepaid expenses and other assets153 152 
Total assetsTotal assets609,035 451,447 Total assets904,668 451,447 
LiabilitiesLiabilitiesLiabilities
DebtDebt315,000 214,000 Debt527,000 214,000 
Payable for investments purchasedPayable for investments purchased25,760 — 
Payable to affiliate (Note 3)Payable to affiliate (Note 3)677 694 Payable to affiliate (Note 3)909 694 
Financing costs payableFinancing costs payable923 790 Financing costs payable727 790 
Dividends payableDividends payable4,942 415 Dividends payable7,864 415 
Management fees payableManagement fees payable321 95 Management fees payable393 95 
Income based incentive fees payableIncome based incentive fees payable489 — Income based incentive fees payable756 — 
Capital gains based incentive fees payable14 — 
Interest payableInterest payable285 151 Interest payable1,695 151 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities764 572 Accrued expenses and other liabilities730 572 
Total liabilitiesTotal liabilities323,415 216,717 Total liabilities565,834 216,717 
Commitments and Contingencies (Note 7)Commitments and Contingencies (Note 7)Commitments and Contingencies (Note 7)
Members' CapitalMembers' CapitalMembers' Capital
Common units (14,280,242 and 11,747,027 common units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively)14 12 
Common units (17,477,827 and 11,747,027 common units issued and outstanding as of June 30 2022 and December 31, 2021, respectively)Common units (17,477,827 and 11,747,027 common units issued and outstanding as of June 30 2022 and December 31, 2021, respectively)17 12 
Paid-in capital in excess of par valuePaid-in capital in excess of par value285,399 234,987Paid-in capital in excess of par value350,338 234,987
Distributable earnings (accumulated losses)207 (269)
Net distributable earnings (accumulated losses)Net distributable earnings (accumulated losses)(11,521)(269)
Total members' capitalTotal members' capital$285,620 $234,730 Total members' capital$338,834 $234,730 
Total liabilities and members' capitalTotal liabilities and members' capital$609,035 $451,447 Total liabilities and members' capital$904,668 $451,447 
Net asset value per unitNet asset value per unit$20.00 $19.98 Net asset value per unit$19.39 $19.98 


The accompanying notes are an integral part of these unaudited consolidated financial statements
4
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated StatementStatements of Operations (Unaudited)
(In thousands, except unit and per unit amounts)
For the Three Months Ended March 31, 2022
Investment Income:
From non-controlled/non-affiliated investments:
Interest income$7,488 
Payment-in-kind interest income10 
Dividend income80 
Other income431 
Total investment income8,009 
Expenses:
Interest and other financing expenses1,589 
Management fees321 
Income based incentive fees489 
Capital gains incentive fees14 
Professional fees169 
Organization and offering costs42 
Directors' fees51 
General and other expenses83 
Total expenses2,758 
Net investment income (loss) before taxes5,251 
Excise tax expense1 
Net investment income (loss) after taxes5,250 
Realized and unrealized gain (loss) on investment transactions:
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments168 
Net realized and unrealized gain (loss)168 
Net increase (decrease) in members' capital resulting from operations$5,418 
Per unit information—basic and diluted
Net investment income (loss) per unit$0.45 
Earnings per unit$0.46 
Weighted average units outstanding (Note 9):11,790,318 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Investment Income:
From non-controlled/non-affiliated investments:
Interest income$12,384 $19,872 
Payment-in-kind interest income— 10 
Dividend income89 169 
Other income622 1,053 
Total investment income13,095 21,104 
Expenses:
Interest expense and other financing expenses3,404 4,993 
Management fees393 714 
Income based incentive fees756 1,245 
Capital gains incentive fees(14)— 
Professional fees283 452 
Organization and offering costs20 62 
Directors' fees52 103 
Administrative service fees5 5 
General and other expenses36 119 
Total expenses4,935 7,693 
Net investment income (loss) before taxes8,160 13,411 
Excise tax expense1 2 
Net investment income (loss) after taxes8,159 13,409 
Realized and unrealized gain (loss) on investment transactions:
Net realized gain (loss):
Non-controlled/non-affiliated investments104 104 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments(12,127)(11,959)
Net realized and unrealized gain (loss)(12,023)(11,855)
Net increase (decrease) in members' capital resulting from operations$(3,864)$1,554 
Per unit information—basic and diluted
Net investment income (loss) per unit$0.51 $0.96 
Earnings per unit$(0.24)$0.11 
Weighted average units outstanding (Note 9):16,080,203 13,947,111 





The accompanying notes are an integral part of these unaudited consolidated financial statements
5
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated StatementStatements of Changes in Members’ Capital (Unaudited)
(In thousands)
For the Three Months Ended March 31, 2022
Members' Capital at beginning of period:$234,730 
Increase (decrease) in members’ capital resulting from operations:
Net investment income (loss)5,250 
Net change in unrealized appreciation (depreciation)168 
Net increase (decrease) in members’ capital resulting from operations5,418 
Capital transactions:
Issuance of common units50,000 
Reinvestment of dividends414 
Dividends declared(4,942)
Net increase in Members' Capital resulting from capital transactions45,472 
Total increase (decrease) in Members' Capital50,890 
Members' Capital at end of period$285,620 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Members' Capital at beginning of period:$285,620 $234,730 
Increase (decrease) in members’ capital resulting from operations:
Net investment income (loss)8,159 13,409 
Net realized gain (loss)104 104 
Net change in unrealized appreciation (depreciation)(12,127)(11,959)
Net increase (decrease) in members’ capital resulting from operations(3,864)1,554 
Capital transactions:
Issuance of common units60,000 110,000 
Reinvestment of dividends4,942 5,356 
Dividends declared(7,864)(12,806)
Net increase in Members' Capital resulting from capital transactions57,078 102,550 
Total increase (decrease) in Members' Capital53,214 104,104 
Members' Capital at end of period$338,834 $338,834 



























The accompanying notes are an integral part of these unaudited consolidated financial statements
6
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Statement of Cash Flows (Unaudited)
(In thousands)

For the ThreeSix Months Ended March 31,June 30, 2022
Cash flows from operating activities:
Net increase (decrease) in members' capital resulting from operations$5,4181,554 
Adjustments to reconcile net decrease in members' capital resulting from operations
to net cash provided by (used in) operating activities
Net unrealized (appreciation) depreciation on investments(168)11,959 
Net realized (gain) loss on investments(104)
Net accretion of discount and amortization of premium on investments(363)(941)
Payment-in-kind interest and dividend capitalized(270)
Amortization of deferred financing costs260618 
Amortization of deferred offering costs1837 
Purchases of investments and change in payable for investments purchased(170,633)(470,027)
Proceeds from sale of investments and principal repayments and change in receivable for investments sold3,79117,522 
Changes in operating assets and liabilities:
(Increase) decrease in interest and dividend receivable from non-controlled/non-affiliated investments(2,072)(2,928)
(Increase) decrease in prepaid expenses and other assets60 (1)
(Decrease) increase in payable to affiliates(17)215 
(Decrease) increase in management fees payable226298 
(Decrease) increase in incentive fees payable503756 
(Decrease) increase in interest payable1341,544 
(Decrease) increase in accrued expenses and other liabilities192158 
Net cash provided by (used in) operating activities(162,651)(439,610)
Cash flows from financing activities:
Borrowings on debt216,500589,500 
Repayments on debt(115,500)(276,500)
Proceeds from issuance of Common Units50,000110,000 
Deferred financing costs paid(1,847)
Dividends paid in cash(1)(2,070)
Offering costs paid(2)
Net cash provided by (used in) financing activities149,150420,928 
Net increase (decrease) in cash(13,501)(18,682)
Cash at beginning of period84,597 
Cash at end of period$71,09665,915 
Supplemental information and non-cash activities:
Excise tax paid$2 
Accrued but unpaid dividends$7,864 
Interest expense paid$9322,104 
Dividend reinvestment paid$414 
Accrued but unpaid dividendsReinvestment of distributions during the period$4,942 
Accrued but unpaid deferred financing costs$13363 


The accompanying notes are an integral part of these unaudited consolidated financial statements
7
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)

Investments-non-controlled/non-affiliated(1)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
First Lien Debt(3)
First Lien Debt(3)
First Lien Debt(3)
Air Freight & LogisticsAir Freight & LogisticsAir Freight & Logistics
Omni Intermediate Holdings, LLCOmni Intermediate Holdings, LLC(4) (5)L + 5.00%6.01%12/30/2026$21,944 $21,736 $21,850 7.65 %Omni Intermediate Holdings, LLC(4) (5) (11)L + 5.00%7.10%12/30/202622,144 $21,940 $21,701 6.40 %
Omni Intermediate Holdings, LLCOmni Intermediate Holdings, LLC(4) (5) (10)L + 5.00%6.01%12/30/2026989 973 979 0.34 Omni Intermediate Holdings, LLC(4) (5) (10)L + 5.00%7.10%12/30/2026986 964 932 0.28 
Omni Intermediate Holdings, LLCOmni Intermediate Holdings, LLC(4) (6) (10)L + 5.00%6.01%12/30/2025— (18)(9)— Omni Intermediate Holdings, LLC(4) (6) (10)L + 5.00%7.10%12/30/2025— (20)(40)(0.01)
22,691 22,820 7.99 22,884 22,593 6.67 
Auto ComponentsAuto ComponentsAuto Components
Continental Battery CompanyContinental Battery Company(4) (5)L + 6.75%7.75%01/20/20276,234 6,113 6,113 2.14 Continental Battery Company(4) (5)L + 6.75%9.00%01/20/20276,219 6,103 5,971 1.76 
AutomobilesAutomobilesAutomobiles
ARI Network Services, Inc.ARI Network Services, Inc.(4) (6)L + 5.50%6.25%02/28/202514,338 14,066 14,066 4.92 ARI Network Services, Inc.(4) (6)L + 5.50%6.88%02/28/202514,302 14,052 13,983 4.13 
Portfolio GroupPortfolio Group(4) (10)S + 5.50%7.01%12/02/2025— (24)(24)(0.01)Portfolio Group(4) (5) (10)L + 6.00%8.25%12/02/2025133 110 53 0.02 
14,042 14,042 4.92 14,162 14,036 4.14 
BiotechnologyBiotechnologyBiotechnology
GraphPad Software, LLCGraphPad Software, LLC(4) (5)L + 5.50%6.50%04/27/202719,412 19,227 19,295 6.76 GraphPad Software, LLC(4) (5) (11)L + 5.50%6.50%04/27/202719,315 19,139 18,670 5.51 
GraphPad Software, LLCGraphPad Software, LLC(4) (5) (10)L + 6.00%7.00%04/27/2027— (100)(63)(0.02)GraphPad Software, LLC(4) (5) (10)L + 5.50%6.50%04/27/2027— (95)(354)(0.10)
19,127 19,232 6.73 19,044 18,316 5.41 
ChemicalsChemicals
Tank Holding Corp.Tank Holding Corp.(4) (6) (11)S + 6.00%7.63%03/31/202823,667 23,209 23,209 6.85 
Tank Holding Corp.Tank Holding Corp.(4) (6) (10)S + 6.00%7.63%03/31/2028556 530 530 0.16 
V Global Holdings, LLCV Global Holdings, LLC(4) (6) (11)L + 5.75%6.12%12/22/20278,008 7,851 7,851 2.32 
V Global Holdings, LLCV Global Holdings, LLC(4) (6) (10)L + 5.75%6.12%12/22/2025164 142 142 0.04 
31,732 31,732 9.37 
Commercial Services & SuppliesCommercial Services & SuppliesCommercial Services & Supplies
Encore Holdings, LLCEncore Holdings, LLC(4) (6)L + 4.50%5.51%11/23/20281,242 1,222 1,218 0.43 Encore Holdings, LLC(4) (6) (11)L + 4.50%6.73%11/23/20281,239 1,219 1,212 0.36 
Encore Holdings, LLCEncore Holdings, LLC(4) (6) (10)L + 4.50%5.51%11/23/2028340 318 293 0.10 Encore Holdings, LLC(4) (6) (10)L + 4.50%6.73%11/23/2028737 712 685 0.20 
Encore Holdings, LLCEncore Holdings, LLC(4) (6) (10)L + 4.50%5.51%11/23/2027— (6)(7)— Encore Holdings, LLC(4) (6) (10)L + 4.50%6.73%11/23/2027— (6)(8)— 
FLS Holding, Inc.FLS Holding, Inc.(4) (5) (8)L + 5.25%6.25%12/17/202830,667 30,074 30,096 10.54 FLS Holding, Inc.(4) (5) (7) (11)L + 5.25%7.28%12/17/202822,109 21,694 21,664 6.39 
FLS Holding, Inc.FLS Holding, Inc.(4) (5) (8) (10)L + 5.25%6.25%12/17/2028— (64)(124)(0.04)FLS Holding, Inc.(4) (5) (7) (10)L + 5.25%7.28%12/17/2028— (45)(97)(0.03)
FLS Holding, Inc.FLS Holding, Inc.(4) (5) (8) (10)L + 5.25%6.25%12/17/2027— (51)(50)(0.02)FLS Holding, Inc.(4) (5) (7) (10)L + 5.25%7.28%12/17/2027— (35)(39)(0.01)
KWOR Acquisition, Inc.KWOR Acquisition, Inc.(4) (6)L + 5.25%6.00%12/22/202813,171 12,979 12,884 4.51 KWOR Acquisition, Inc.(4) (6) (11)L + 5.25%6.99%12/22/202816,478 16,226 16,149 4.77 
KWOR Acquisition, Inc.KWOR Acquisition, Inc.(4) (10)P + 4.25%7.75%12/22/2027119 93 79 0.03 KWOR Acquisition, Inc.(4) (6) (10)L + 5.25%6.99%12/22/2028— (35)(70)(0.02)
KWOR Acquisition, Inc.KWOR Acquisition, Inc.(4) (10)P + 4.25%9.00%12/22/2027247 222 211 0.06 
MHE Intermediate Holdings, LLCMHE Intermediate Holdings, LLC(4) (5) (11)L + 6.00%7.29%07/21/202714,888 14,751 14,751 4.35 
MHE Intermediate Holdings, LLCMHE Intermediate Holdings, LLC(4) (5)L + 5.75%7.04%07/21/202714,925 14,782 14,658 5.13 MHE Intermediate Holdings, LLC(4) (5) (10)L + 6.00%7.29%07/21/2027620 594 594 0.18 
Procure Acquireco, Inc. (Procure Analytics)Procure Acquireco, Inc. (Procure Analytics)(4) (6)L + 5.50%6.25%12/20/202819,792 19,409 19,463 6.81 Procure Acquireco, Inc. (Procure Analytics)(4) (6) (11)L + 5.50%8.25%12/20/202819,742 19,372 19,081 5.63 
Procure Acquireco, Inc. (Procure Analytics)Procure Acquireco, Inc. (Procure Analytics)(4) (6) (10)L + 5.50%6.25%12/01/2028— (38)(66)(0.02)Procure Acquireco, Inc. (Procure Analytics)(4) (6) (10)L + 5.50%8.25%12/01/2028— (37)(133)(0.04)
Procure Acquireco, Inc. (Procure Analytics)Procure Acquireco, Inc. (Procure Analytics)(4) (6) (10)L + 5.50%6.25%12/01/2026— (23)(20)(0.01)Procure Acquireco, Inc. (Procure Analytics)(4) (6) (10)L + 5.50%8.25%12/01/2026— (21)(40)(0.01)
Sherlock Buyer Corp.(4) (6)L + 5.75%6.50%12/08/202824,925 24,444 24,826 8.69 
Sherlock Buyer Corp.(4) (6) (10)L + 5.75%6.50%12/08/2028— (69)(29)(0.01)
Sherlock Buyer Corp.(4) (6) (10)L + 5.75%6.50%12/08/2027— (55)(12)— 
Sweep Purchaser, LLC(4) (5) (10)L + 5.75%6.75%11/30/20262,863 2,802 2,809 0.98 
Tamarack Intermediate, LLC(4) (6)S + 5.75%6.50%03/13/202815,125 14,824 14,824 5.19 
Tamarack Intermediate, LLC(4) (6) (10)S + 5.75%6.50%03/13/2028— (49)(49)(0.02)
8
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliated(1)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair ValuePercentage of Net Assets
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
QW Holding CorporationQW Holding Corporation(4) (5) (11)L + 5.75%7.04%08/31/202411,276 $11,118 $11,118 3.28 %
QW Holding CorporationQW Holding Corporation(4) (5) (10)L + 5.75%7.04%08/31/20241,289 1,260 1,260 0.37 
QW Holding CorporationQW Holding Corporation(4) (5) (10)L + 5.75%7.04%08/31/2024— (39)(39)(0.01)
Sherlock Buyer Corp.Sherlock Buyer Corp.(4) (6) (11)L + 5.75%6.74%12/08/202824,863 24,399 24,328 7.18 
Sherlock Buyer Corp.Sherlock Buyer Corp.(4) (6) (10)L + 5.75%6.74%12/08/2028— (66)(155)(0.05)
Sherlock Buyer Corp.Sherlock Buyer Corp.(4) (6) (10)L + 5.75%6.74%12/08/2027— (52)(62)(0.02)
Sweep Purchaser, LLCSweep Purchaser, LLC(4) (5) (10) (11)L + 5.75%7.17%11/30/20263,695 3,610 3,610 1.07 
Tamarack Intermediate, LLCTamarack Intermediate, LLC(4)S + 5.75%6.94%03/13/202815,125 14,834 14,422 4.26 
Tamarack Intermediate, LLCTamarack Intermediate, LLC(4) (10)S + 5.75%6.94%03/13/2028— (47)(115)(0.03)
Valcourt Holdings II, LLCValcourt Holdings II, LLC(4) (5)S + 5.50%6.50%01/07/20273,289 $3,224 $3,224 1.13 %Valcourt Holdings II, LLC(4) (5)S + 5.50%7.70%01/07/20273,281 3,219 3,263 0.96 
123,816 124,017 43.42 132,847 131,590 38.84 
Construction & EngineeringConstruction & Engineering
KPSKY Acquisition, Inc.KPSKY Acquisition, Inc.(4) (10)P + 4.50%9.25%10/19/2028— (81)(162)(0.05)
Containers & PackagingContainers & PackagingContainers & Packaging
BP Purchaser, LLCBP Purchaser, LLC(4) (6)L + 5.50%6.25%12/10/202827,728 27,194 27,054 9.47 BP Purchaser, LLC(4) (6) (11)L + 5.50%7.19%12/11/202827,659 27,142 26,096 7.70 
DistributorsDistributorsDistributors
48Forty Solutions, LLC48Forty Solutions, LLC(4) (5) (11)S + 6.00%7.22%11/30/202622,498 22,064 22,064 6.51 
48Forty Solutions, LLC48Forty Solutions, LLC(4) (5) (10)S + 6.00%7.22%11/30/2026— (8)(8)— 
48Forty Solutions, LLC48Forty Solutions, LLC(4) (5) (10)S + 6.00%7.22%11/30/2026— (75)(75)(0.02)
ABB Concise Optical Group LLCABB Concise Optical Group LLC(4) (6)L + 7.50%8.28%02/23/202818,113 17,667 17,666 6.19 ABB Concise Optical Group LLC(4) (6)L + 7.50%8.26%02/23/202818,068 17,637 17,405 5.14 
ABB Concise Optical Group LLCABB Concise Optical Group LLC(4) (6) (10)P + 6.50%10.00%02/23/2028698 652 652 0.23 ABB Concise Optical Group LLC(4) (6) (10)P + 6.50%11.22%02/23/20281,642 1,597 1,572 0.46 
PT Intermediate Holdings III, LLCPT Intermediate Holdings III, LLC(4) (6)L + 5.50%6.51%11/01/202818,206 18,032 18,024 6.31 PT Intermediate Holdings III, LLC(4) (6) (11)L + 5.50%7.75%11/01/202819,099 18,916 18,813 5.55 
PT Intermediate Holdings III, LLCPT Intermediate Holdings III, LLC(4) (6)L + 5.50%6.51%11/01/202810,110 10,011 10,009 3.50 PT Intermediate Holdings III, LLC(4) (6) (11)L + 5.50%7.75%11/01/202810,424 10,324 10,268 3.03 
46,362 46,351 16.23 70,455 70,039 20.67 
Diversified Consumer ServicesDiversified Consumer ServicesDiversified Consumer Services
Heartland Home ServicesHeartland Home Services(4) (6) (10)L + 5.50%6.75%12/15/2026— — — — Heartland Home Services(4) (6) (10)L + 5.75%7.37%12/15/202613,113 12,984 11,998 3.54 
Lightspeed Solution,LLC(4) (6)S + 6.00%6.75%03/01/202815,122 14,823 14,823 5.19 
Lightspeed Solution,LLC(4) (6) (10)S + 6.00%6.75%03/01/2028— (48)(48)(0.02)
Lightspeed Solution, LLCLightspeed Solution, LLC(4)S + 6.00%7.53%03/01/202815,122 14,833 14,543 4.29 
Lightspeed Solution, LLCLightspeed Solution, LLC(4) (10)S + 6.00%7.53%03/01/2028— (46)(187)(0.06)
LUV Car Wash Group, LLCLUV Car Wash Group, LLC(4) (5) (10)L + 5.50%6.50%12/09/20264,778 4,677 4,677 1.64 LUV Car Wash Group, LLC(4) (5) (10)L + 5.50%6.50%12/09/20266,623 6,528 6,369 1.88 
Mammoth Holdings, LLCMammoth Holdings, LLC(4) (5) (10)S + 6.00%7.00%10/16/20234,965 4,903 4,903 1.45 
39,202 37,626 11.10 
19,452 19,452 6.81 
Diversified Financial ServicesDiversified Financial ServicesDiversified Financial Services
Everest Intermediate, LtdEverest Intermediate, Ltd(4) (7) (10)S + 5.75%7.75%05/25/2028— (18)(18)(0.01)
Everest Intermediate, LtdEverest Intermediate, Ltd(4) (6) (7)S + 5.75%7.75%05/25/20296,318 6,192 6,192 1.83 
SitusAMC Holdings Corp.SitusAMC Holdings Corp.(4) (6)L + 5.75%6.50%12/22/202723,600 23,374 23,409 8.20 SitusAMC Holdings Corp.(4) (6) (11)L + 5.75%8.00%12/22/202723,541 23,323 22,651 6.68 
Smarsh, Inc.Smarsh, Inc.(4) (6)S + 6.50%7.25%02/16/20294,286 4,201 4,201 1.47 Smarsh, Inc.(4)S + 6.50%7.25%02/16/20294,286 4,204 4,176 1.23 
Smarsh, Inc.Smarsh, Inc.(4) (6) (10)S + 6.50%7.25%02/16/2029— (11)(11)— Smarsh, Inc.(4) (10)S + 6.50%7.25%02/16/2029— (10)(27)(0.01)
Smarsh, Inc.Smarsh, Inc.(4) (6) (10)S + 6.50%7.25%02/16/2029— (5)(5)— Smarsh, Inc.(4) (10)S + 6.50%7.25%02/16/2029— (5)(7)— 
27,559 27,594 9.66 33,686 32,967 9.73 
Health Care Providers & Services
DCA Investment Holdings, LLC(4) (6)S + 6.00%6.75%04/03/20287,092 7,022 7,022 2.46 
DCA Investment Holdings, LLC(4) (6) (10)S + 6.00%6.75%04/03/2028— (8)(16)(0.01)
Heartland Veterinary Partners, LLC(4) (5)L + 4.75%5.75%12/10/20266,074 6,017 6,056 2.12 
Heartland Veterinary Partners, LLC(4) (5) (10)L + 4.75%5.75%12/10/20262,789 2,661 2,749 0.96 
Heartland Veterinary Partners, LLC(4) (5) (10)L + 4.75%5.75%12/10/2026— (11)(4)— 
mPulse Mobile, Inc.(4) (6)L + 5.25%6.17%12/17/202710,000 9,808 9,848 3.45 
mPulse Mobile, Inc.(4) (6) (10)L + 5.25%6.17%12/17/2027— (190)(304)(0.11)
mPulse Mobile, Inc.(4) (6) (10)L + 5.25%6.17%12/17/2027— (95)(76)(0.03)
Stepping Stones Healthcare Services, LLC(4) (6)L + 6.25%6.50%01/02/20294,375 4,311 4,311 1.51 
Stepping Stones Healthcare Services, LLC(4) (6) (10)L + 6.25%6.50%01/02/2029— (6)(6)— 
Stepping Stones Healthcare Services, LLC(4) (10)P + 4.75%8.25%12/30/2026100 91 91 0.03 
Vardiman Black Holdings, LLC(4) (7)S + 8.00%8.50%03/18/20275,729 5,672 5,672 1.99 
Vardiman Black Holdings, LLC(4) (7) (10)S + 8.00%8.50%03/18/2027304 269 269 0.09 
9
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair ValuePercentage of Net Assets
Vermont Aus Pty Ltd(4) (6) (8)S + 5.50%6.25%03/22/202810,000 $9,751 $9,751 3.41 %
45,292 45,363 15.88 
Insurance Services
Higginbotham Insurance Agency, Inc.(4) (6)L + 5.50%6.25%11/25/20263,692 3,657 3,650 1.28 
Higginbotham Insurance Agency, Inc.(4) (6) (10)L + 5.50%6.25%11/25/20261,057 1,011 960 0.34 
High Street Buyer, Inc.(4) (6) (10)L + 5.75%6.50%02/02/20291,770 1,482 1,482 0.52 
Integrity Marketing Acquisition, LLC(4) (6)L + 5.50%6.25%08/27/202514,925 14,717 14,840 5.20 
Integrity Marketing Acquisition, LLC(4) (5) (10)L + 5.75%6.75%08/27/2025— (78)(64)(0.02)
Keystone Agency Investors(4) (5)L + 5.50%6.51%05/03/20275,995 5,909 5,914 2.07 
Keystone Agency Investors(4) (5) (10)L + 5.50%6.51%05/03/2027— (110)(105)(0.04)
Oakbridge Insurance Agency LLC(4) (5)S + 5.75%6.75%12/31/20261,903 1,875 1,875 0.66 
Oakbridge Insurance Agency LLC(4) (5) (10)S + 5.75%6.75%12/31/2026— (118)(119)(0.04)
Oakbridge Insurance Agency LLC(4) (5) (10)S + 5.75%6.75%12/31/2026169 160 160 0.06 
Peter C. Foy & Associates Insurance Services, LLC(4) (6) (10)S + 6.00%7.74%11/01/20281,477 1,421 1,421 0.50 
RSC Acquisition, Inc.(4) (6)L + 5.50%6.25%10/30/202613,326 13,203 13,048 4.57 
RSC Acquisition, Inc.(4) (6) (10)L + 5.50%6.25%10/30/2026— (118)(266)(0.09)
World Insurance Associates, LLC(4) (5)L + 5.75%6.76%04/01/20266,762 6,636 6,628 2.32 
World Insurance Associates, LLC(4) (5) (10)L + 5.75%6.75%04/01/20269,934 9,556 9,323 3.26 
59,203 58,747 20.57 
Interactive Media & Services
MSM Acquisitions, Inc.(4) (5) (10)L + 6.00%7.00%12/09/2026— — (37)(0.01)
Triple Lift, Inc.(4) (5)S + 5.75%6.75%03/16/20294,762 4,667 4,667 1.63 
4,667 4,630 1.62 
IT Services
Donuts, Inc.(4) (5)S + 6.00%7.00%12/29/202711,876 11,876 11,876 4.16 
Donuts, Inc.(4) (5) (10)S + 6.00%7.00%12/29/2027— — — — 
Govbrands Intermediate, Inc.(4) (6)L + 5.50%6.51%08/04/202724,061 23,489 23,616 8.27 
Govbrands Intermediate, Inc.(4) (6) (10)L + 5.50%6.51%08/04/20275,414 5,255 5,266 1.84 
Govbrands Intermediate, Inc.(4) (6) (10)L + 5.50%6.51%08/04/2027— (68)(53)(0.02)
40,552 40,705 14.25 
Machinery
Answer Target Holdco, LLC(4) (5)L + 6.00%7.01%12/30/202623,777 23,322 23,554 8.25 
Answer Target Holdco, LLC(4) (5) (10)L + 6.00%7.01%12/30/2026183 148 166 0.06 
23,470 23,720 8.30 

Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
Health Care Providers & Services
DCA Investment Holdings, LLC(4)S + 6.00%6.75%04/03/20287,074 $7,007 $6,853 2.02 %
DCA Investment Holdings, LLC(4) (10)S + 6.00%6.75%04/03/2028154 146 103 0.03 
Gateway US Holdings, Inc.(4) (6) (7)S + 5.50%8.23%09/22/20245,287 5,237 5,237 1.55 
Gateway US Holdings, Inc.(4) (6) (7) (10)S + 5.50%8.23%09/22/2024287 273 273 0.08 
Gateway US Holdings, Inc.(4) (6) (7) (10)S + 5.50%8.23%09/22/202411 9 9 — 
Heartland Veterinary Partners, LLC(4) (5) (11)L + 4.75%6.19%12/10/20266,059 6,005 5,948 1.76 
Heartland Veterinary Partners, LLC(4) (5) (10) (11)L + 4.75%6.19%12/10/20263,677 3,556 3,426 1.01 
Heartland Veterinary Partners, LLC(4) (5) (10)L + 4.75%6.19%12/10/2026— (11)(22)(0.01)
mPulse Mobile, Inc.(4) (6) (11)L + 5.25%7.28%12/17/202710,000 9,815 9,696 2.86 
mPulse Mobile, Inc.(4) (6) (10)L + 5.25%7.28%12/17/2027— (182)(608)(0.18)
mPulse Mobile, Inc.(4) (6) (10)L + 5.25%7.28%12/17/2027— (91)(152)(0.04)
Southern Veterinary Partners, LLC(4) (8)S + 5.50%7.70%06/28/20271,896 1,858 1,858 0.55 
Stepping Stones Healthcare Services, LLC(4) (6)L + 5.75%8.00%01/02/20294,364 4,302 4,181 1.23 
Stepping Stones Healthcare Services, LLC(4) (6) (10)L + 5.75%8.00%01/02/2029— (6)(52)(0.02)
Stepping Stones Healthcare Services, LLC(4) (6) (10)L + 5.75%8.00%12/30/2026— (8)(26)(0.01)
Tivity Health, Inc.(4) (6)S + 6.00%8.01%06/28/20292,720 2,679 2,679 0.79 
Vardiman Black Holdings, LLC(4)S + 8.00%8.78%03/18/20275,715 5,660 5,430 1.60 
Vardiman Black Holdings, LLC(4) (10)S + 8.00%8.78%03/18/20272,441 2,397 2,103 0.62 
Vermont Aus Pty Ltd(4) (6) (7)S + 5.50%7.55%03/22/202812,725 12,416 12,416 3.66 
61,062 59,352 17.52 
Insurance Services
Foundation Risk Partners, Corp.(4) (6)L + 5.50%7.75%10/29/20281,517 1,495 1,495 0.44 
Foundation Risk Partners, Corp.(4) (6) (10)L + 5.50%7.75%10/29/20281,065 1,013 976 0.29 
Galway Borrower, LLC(4) (6)L + 5.25%7.50%09/29/20285,991 5,864 5,864 1.73 
Galway Borrower, LLC(4) (6) (10)L + 5.25%7.50%09/29/2028— (13)(13)— 
Galway Borrower, LLC(4) (6) (10)L + 5.25%7.50%09/30/2027— (9)(9)— 
Higginbotham Insurance Agency, Inc.(4) (6) (11)L + 5.50%7.17%11/25/20263,683 3,649 3,619 1.07 
Higginbotham Insurance Agency, Inc.(4) (6) (10)L + 5.50%7.17%11/25/20261,208 1,164 1,059 0.31 
High Street Buyer, Inc.(4) (6) (10)L + 5.75%6.86%02/02/20292,285 2,002 2,143 0.63 
Integrity Marketing Acquisition, LLC(4) (6) (11)L + 5.50%7.58%08/27/202514,887 14,694 14,592 4.31 
Integrity Marketing Acquisition, LLC(4) (6) (10)L + 5.50%7.58%08/27/202510,253 10,106 10,031 2.96 
Keystone Agency Investors(4) (5) (11)S + 6.00%8.20%05/03/20278,259 8,144 8,144 2.40 
Keystone Agency Investors(4) (5) (10)S + 6.00%8.20%05/03/20277,734 7,571 7,567 2.23 
Oakbridge Insurance Agency LLC(4) (5)S + 5.75%7.95%12/31/20261,898 1,871 1,825 0.54 
Oakbridge Insurance Agency LLC(4) (5) (10)S + 5.75%7.95%12/31/2026651 534 47 0.01 
Oakbridge Insurance Agency LLC(4) (5) (10)S + 5.75%7.95%12/31/2026127 118 103 0.03 
10
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Acquisition DateMaturity DatePar Amount/ Shares
Cost(3)
Fair ValuePercentage of Net Assets
Real Estate Management & Development
Associations, Inc.(4) (5)L + 4.00%; 2.50% PIK7.50%07/02/20271,772 $1,763 $1,763 0.62 %
MRI Software, LLC(4) (5) (10)L + 6.00%6.51%02/10/2026— (14)(30)(0.01)
1,749 1,733 0.61 
Software
Cordeagle US Finco, Inc.(4) (5) (8)L + 6.75%7.75%07/30/202710,161 9,964 9,964 3.49 
Revalize, Inc.(4) (5) (10)L + 5.25%6.76%04/15/20279,373 9,217 9,076 3.18 
Revalize, Inc.(4) (5) (10)L + 5.25%6.76%04/15/2027887 873 869 0.30 
Trunk Acquisition, Inc.(4) (5)L + 6.00%7.26%02/19/202711,400 11,291 11,250 3.94 
Trunk Acquisition, Inc.(4) (5) (10)L + 6.00%7.26%02/19/2026— (10)(14)— 
31,335 31,145 10.90 
Total First Lien Debt$512,624 $512,718 179.51 %
Second Lien Debt
Health Care Providers & Services
Heartland Veterinary Partners, LLC(4) (5)L + 8.00%9.00%12/10/20272,520 $2,472 $2,458 0.86 %
Heartland Veterinary Partners, LLC(4) (5) (10)L + 8.00%9.00%12/10/2027372 365 349 0.12 
2,837 2,807 0.98 
Software
Matrix Parent, Inc.(4) (6)S + 8.00%8.75%03/01/203010,667 10,481 10,481 3.67 
Total Second Lien Debt$13,318 $13,288 4.65 %
Other Securities
Preferred Equity
Integrity Marketing Acquisition, LLC(4) (9)10.50% PIK12/21/20211,000,000 $980 $1,010 0.35 %
Revalize, Inc.(4) (9)12/14/20212,000 1,960 2,034 0.71 
Total Preferred Equity$2,940 $3,044 1.07 %
Common Equity
BP Purchaser, LLC(4) (9)12/10/20211,233,333 $1,233 $1,233 0.43 %
Encore Holdings, LLC(4) (9)11/23/20211,478 170 170 0.06 
mPulse Mobile, Inc.(4) (9)12/17/2021105,978 780 780 0.27 
Procure Acquiom Financial, LLC (Procure Analytics)(4) (9)12/20/2021500,000 500 500 0.18 
Total Common Equity$2,683 $2,683 0.94 %
Total Other Securities$5,623 $5,727 2.01 %
Total Portfolio Investments$531,565 $531,733 186.17 %
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
Peter C. Foy & Associates Insurance Services, LLC(4)L + 6.00%7.39%11/01/20281,486 $1,464 $1,464 0.43 %
Peter C. Foy & Associates Insurance Services, LLC(4) (10)L + 6.00%7.39%11/01/20288,400 8,283 8,196 2.42 
RSC Acquisition, Inc.(4) (6) (11)L + 5.50%7.44%10/30/202613,280 13,163 13,151 3.88 
RSC Acquisition, Inc.(4) (6) (10) (11)L + 5.50%7.44%10/30/20265,525 5,413 5,400 1.59 
World Insurance Associates, LLC(4) (5) (11)L + 5.75%7.80%04/01/20266,745 6,626 6,610 1.95 
World Insurance Associates, LLC(4) (5) (10)L + 5.75%7.80%04/01/202628,970 28,431 28,355 8.37 
121,583 120,619 35.60 
Interactive Media & Services
MSM Acquisitions, Inc.(4) (10)L + 6.00%8.25%12/09/2026— — (289)(0.09)
Triple Lift, Inc.(4)L + 5.75%6.58%03/16/20294,738 4,646 4,522 1.33 
4,646 4,233 1.25 
IT Services
Donuts, Inc.(4)S + 6.00%7.45%12/29/202711,846 11,846 11,663 3.44 
Donuts, Inc.(4) (10)S + 6.00%7.45%12/29/2027— — (85)(0.03)
Govbrands Intermediate, Inc.(4) (6) (11)L + 5.50%7.75%08/04/202724,000 23,453 23,117 6.82 
Govbrands Intermediate, Inc.(4) (6) (10)L + 5.50%7.75%08/04/20275,400 5,248 5,109 1.51 
Govbrands Intermediate, Inc.(4) (6) (10)L + 5.50%7.75%08/04/2027— (64)(105)(0.03)
Long Term Care Group, Inc.(4) (6)L + 6.00%7.26%09/08/202711,471 11,250 11,250 3.32 
Redwood Services Group, LLC(4) (6)S + 6.00%7.70%06/15/20297,998 7,838 7,838 2.31 
Redwood Services Group, LLC(4) (6) (10)S + 6.00%7.70%06/15/2029— (19)(19)(0.01)
59,552 58,768 17.34 
Machinery
Answer Target Holdco, LLC(4) (5) (11)L + 5.75%8.00%12/30/202623,717 23,284 22,849 6.74 
Answer Target Holdco, LLC(4) (5) (10)L + 5.75%8.00%12/30/2026— (33)(67)(0.02)
23,251 22,782 6.72 
Oil, Gas & Consumable Fuels
Energy Labs Holdings Corp.(4) (5)S + 5.25%6.35%04/07/2028390 384 384 0.11 
Energy Labs Holdings Corp.(4) (5) (10)S + 5.25%6.35%04/07/2028— (1)(1)— 
Energy Labs Holdings Corp.(4) (5) (10)S + 5.25%6.53%04/07/202812 11 11 — 
394 394 0.12 
Professional Services
Project Boost Purchaser, LLC(4) (6)S + 5.50%6.90%05/02/20297,754 7,677 7,677 2.27 
Project Boost Purchaser, LLC(4) (6) (10)S + 5.50%6.90%05/02/2029— (8)(8)— 
Project Boost Purchaser, LLC(4) (6) (10)S + 5.50%6.90%05/02/2027— (6)(6)— 
7,663 7,663 2.26 
Real Estate Management & Development
Associations, Inc.(4) (5)L + 4.00%; 2.50% PIK7.50%07/02/20275,147 5,105 5,105 1.51 
11
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Maturity DatePar Amount/ Shares
Cost(3)
Fair Value Percentage of Net Assets
Associations, Inc.(4) (5) (10)L + 4.00%; 2.50% PIK7.50%07/02/2027— $(53)$(43)(0.01)%
MRI Software, LLC(4) (10)L + 5.50%7.75%02/10/2026— (13)(30)(0.01)
5,039 5,032 1.49 
Software
Anaplan, Inc.(4) (6)S + 6.50%8.01%06/21/202917,600 17,249 17,249 5.09 
APEX Analytix(4) (5) (8) (10)S + 5.75%7.95%08/18/20268,659 8,486 8,486 2.50 
APEX Analytix(4) (5) (8) (10)S + 5.75%7.95%06/30/2028978 958 958 0.28 
Appfire Technologies, LLC(4) (5) (10)S + 5.50%7.70%03/09/2027— (10)(10)— 
Appfire Technologies, LLC(4) (5) (10)S + 5.50%7.70%03/09/20277 5 5 — 
Bottomline Technologies, Inc.(4)S + 5.50%6.74%05/14/202916,000 15,685 15,685 4.63 
Bottomline Technologies, Inc.(4) (10)S + 5.50%6.74%01/27/2028— (26)(26)(0.01)
Cordeagle US Finco, Inc.(4) (5) (7)L + 6.75%7.99%07/30/202710,161 9,972 10,082 2.98 
GS AcquisitionCo, Inc.(4)L + 5.75%7.30%05/22/20261,519 1,500 1,500 0.44 
GS AcquisitionCo, Inc.(4) (10)L + 5.75%7.16%05/22/2026— (2)(2)— 
GS AcquisitionCo, Inc.(4) (10)L + 5.75%7.65%05/22/20269 8 8 — 
Kaseya, Inc.(4) (6)S + 5.75%8.29%06/25/202910,309 10,155 10,155 3.00 
Kaseya, Inc.(4) (6) (10)S + 5.75%8.29%05/02/2029— (5)(5)— 
Kaseya, Inc.(4) (6) (10)S + 5.75%8.29%05/02/2029— (9)(9)— 
LegitScript(4)S + 5.75%7.26%06/24/202915,573 15,262 15,262 4.50 
LegitScript(4) (10)S + 5.75%7.26%06/24/2029— (203)(203)(0.06)
LegitScript(4) (10)S + 5.75%7.26%06/24/2028— (60)(60)(0.02)
Netwrix Corporation And Concept Searching, Inc.(4) (6)S + 5.00%6.50%06/01/20293,018 2,988 2,988 0.88 
Netwrix Corporation And Concept Searching, Inc.(4) (6) (10)S + 5.00%6.50%06/01/2029— (8)(8)— 
Netwrix Corporation And Concept Searching, Inc.(4) (6) (10)S + 5.00%6.50%06/01/2029— (3)(3)— 
Oak Purchaser, Inc.(4)L + 5.50%7.55%04/28/20284,653 4,607 4,607 1.36 
Oak Purchaser, Inc.(4) (10)L + 5.50%7.55%04/30/2029— (30)(30)(0.01)
Oak Purchaser, Inc.(4) (10)L + 5.50%7.55%04/30/2029— (6)(6)— 
Project Leopard Holdings, Inc.(4) (7) (8)S + 5.25%7.45%06/16/202810,000 9,300 9,300 2.74 
Revalize, Inc.(4) (10) (11)L + 5.75%8.00%04/15/20279,647 9,498 8,729 2.58 
Revalize, Inc.(4) (10)L + 5.75%8.00%04/15/2027887 874 831 0.25 
Securonix, Inc.(4) (6)S + 6.50%7.25%04/05/202821,010 20,654 20,654 6.10 
Securonix, Inc.(4) (6) (10)S + 6.50%7.25%04/05/2028— (63)(63)(0.02)
Trunk Acquisition, Inc.(4) (5) (11)L + 6.00%8.25%02/19/202711,371 11,267 10,931 3.23 
Trunk Acquisition, Inc.(4) (5) (10)L + 6.00%8.25%02/19/2026— (9)(41)(0.01)
138,034 136,964 40.42 
Total First Lien Debt$818,400 $806,611 238.05 %
12
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(2)
Acquisition DateMaturity DatePar Amount/ Shares
Cost(3)
Fair ValuePercentage of Net Assets
Second Lien Debt
Air Freight & Logistics
Omni Logistics(4)L + 9.00%11.19%12/30/20273,300 $3,201 $3,201 0.94 %
Health Care Providers & Services
Heartland Veterinary Partners, LLC(4) (5)L + 8.00%9.00%12/10/20272,520 2,473 2,391 0.71 
Heartland Veterinary Partners, LLC(4) (5) (10)L + 8.00%9.00%12/10/2027624 613 574 0.17 
3,086 2,965 0.88 
Software
Matrix Parent, Inc.(4) (6)S + 8.00%9.55%03/01/203010,667 10,485 10,240 3.02 
Total Second Lien Debt$16,772 $16,406 4.84 %
Other Securities
Preferred Equity
Integrity Marketing Acquisition, LLC(4) (9)10.50% PIK1,000,000 $1,009 $1,038 0.31 %
Knockout Intermediate Holdings I, Inc.(4) (9)2,040 1,989 1,989 0.59 
Revalize, Inc.(4) (9)2,000 2,024 2,081 0.61 
Total Preferred Equity$5,022 $5,108 1.51 %
Common Equity
BP Purchaser, LLC(4) (9)12/10/20211,233,333 $1,234 $1,234 0.36 %
Encore Holdings, LLC(4) (9)11/23/20211,478 170 196 0.06 
LUV Car Wash(4) (9)04/06/2022992 991 992 0.29 
mPulse Mobile, Inc.(4) (9)12/17/2021105,978 780 780 0.23 
Procure Acquiom Financial, LLC (Procure Analytics)(4) (9)12/20/2021500,000 500 582 0.17 
Total Common Equity$3,675 $3,784 1.12 %
Total Other Securities$8,697 $8,892 2.62 %
Total Portfolio Investments$843,869 $831,909 245.52 %
13
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
June 30, 2022
(In thousands)
(1)Unless otherwise indicated, issuers of debt and equity investments held by the Company (which such term “Company” shall include the Company’s consolidated subsidiaries for purposes of this Consolidated Schedule of Investments) are denominated in dollars. All debt investments are income producing unless otherwise indicated. All equity investments are non-income producing unless otherwise noted. Certain portfolio company investments are subject to contractual restrictions on sales. Under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “1940 Act”), the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. As of March 31,June 30, 2022, the Company does not “control” any of these portfolio companies. Under the 1940 Act, the Company would be deemed an “affiliated person” of a portfolio company if the Company owns 5% or more of the portfolio company’s outstanding voting securities. As of March 31,June 30, 2022, the Company is not an “affiliated person” of any of its portfolio companies.
(2)Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to either LIBOR ("L") or SOFR ("S") or an alternate base rate (commonly based on the Federal Funds Rate ("F") or the U.S. Prime Rate ("P")), which generally resets periodically. For each loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as of March 31,June 30, 2022. For investments with multiple reference rates or alternate base rates, the interest rate shown is the weighted average interest rate in effect at March 31,June 30, 2022. As of March 31,June 30, 2022, the reference rates for our variable rate loans were the 1-month L at 0.45%1.79%, 3-month L at 0.97%2.29%, the 6-month L at 1.47%2.90%, 1-month S at 0.16%1.09%, 3-month S at 0.09%0.70%, and the P at 3.50%4.75%.
(3)The cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(4)These investments were valued using unobservable inputs and are considered Level 3 investments. Fair value was determined in good faith by or under the direction of the board of directors of the Company (the “Board of Directors” or the “Board”) (see Note 2 and Note 5), pursuant to the Company’s valuation policy.
(5)Loan includes interest rate floor of 1.00%.
(6)Loan includes interest rate floor of 0.75%.
(7)Loan includes interest rate floor of 0.50%.
(8)The investment is not a qualifying asset under Section 55(a) of the 1940 Act. 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,June 30, 2022 non-qualifying assets represented 8.2%7.2% of total assets as calculated in accordance with regulatory requirements.
(8)Position or portion thereof unsettled as of June 30, 2022.
(9)Securities exempt from registration under the Securities Act of 1933, as amended, and may be deemed to be “restricted securities”. As of March 31,June 30, 2022, the aggregate fair value of these securities is $5,727$8,892 or 2.0%2.6% of the Company’s net assets. The initial acquisition dates have been included for such securities.
(10)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fair value, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded loan commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the Company’s unfunded commitments as of March 31,June 30, 2022:

Investments-non-controlled/non-affiliatedInvestments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair ValueInvestments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair Value
First Lien DebtFirst Lien DebtFirst Lien Debt
ABB Concise Optical Group LLC0.50%Revolver02/23/2028$1,189 $(29)
48Forty Solutions, LLC48Forty Solutions, LLC1.00%Delayed Draw Term Loan02/11/2024$881 $(8)
48Forty Solutions, LLC48Forty Solutions, LLC0.50%Revolver11/30/20263,921 (75)
ABB Concise Optical Group, LLCABB Concise Optical Group, LLC0.50%Revolver02/23/2028245 (9)
Answer Target Holdco, LLCAnswer Target Holdco, LLC0.50%Revolver12/30/20261,650 (16)Answer Target Holdco, LLC0.50%Revolver12/30/20261,834 (67)
Appfire Technologies, LLCAppfire Technologies, LLC0.50%Delayed Draw Term Loan06/13/20241,370 (10)
Appfire Technologies, LLCAppfire Technologies, LLC0.50%Revolver03/09/2027115 (2)
Everest Intermediate Ltd.Everest Intermediate Ltd.0.50%Revolver05/25/2028900 (18)
Associations, Inc.Associations, Inc.1.00%Delayed Draw Term Loan06/10/20245,280 (43)
Bottomline Technologies, Inc.Bottomline Technologies, Inc.0.50%Revolver01/27/20281,333 (26)
DCA Investment Holdings, LLCDCA Investment Holdings, LLC1.00%Delayed Draw Term Loan03/02/20231,658 (16)DCA Investment Holdings, LLC1.00%Delayed Draw Term Loan03/02/20231,504 (47)
Donuts, Inc.Donuts, Inc.0.25%Delayed Draw Term Loan08/14/20235,541 — Donuts, Inc.0.25%Delayed Draw Term Loan08/14/20235,541 (85)
Encore Holdings, LLCEncore Holdings, LLC0.75%Delayed Draw Term Loan01/23/20242,054 (40)Encore Holdings, LLC0.75%Delayed Draw Term Loan01/23/20241,656 (36)
Encore Holdings, LLCEncore Holdings, LLC0.50%Revolver11/23/2027359 (7)Encore Holdings, LLC0.50%Revolver11/23/2027359 (8)
Energy Labs Holdings Corp.Energy Labs Holdings Corp.1.00%Delayed Draw Term Loan04/13/202347 — 
Energy Labs Holdings Corp.Energy Labs Holdings Corp.0.50%Revolver04/07/202851 (1)
FLS Holding, Inc.FLS Holding, Inc.1.00%Delayed Draw Term Loan06/17/20236,667 (124)FLS Holding, Inc.1.00%Delayed Draw Term Loan06/17/20234,806 (97)
FLS Holding, Inc.FLS Holding, Inc.0.50%Revolver02/17/20272,667 (50)FLS Holding, Inc.0.50%Revolver12/17/20271,922 (39)
Govbrands Intermediate, Inc.1.00%Delayed Draw Term Loan08/04/20232,514 (25)
Govbrands Intermediate, Inc.0.50%Revolver08/04/20272,864 (53)
GraphPad Software, LLC1.00%Delayed Draw Term Loan04/27/202710,588 (64)
Heartland Home Services0.50%Delayed Draw Term Loan02/15/202627,500 — 
Heartland Veterinary Partners, LLC0.75%Delayed Draw Term Loan01/17/202310,904 (32)
Heartland Veterinary Partners, LLC0.50%Revolver02/10/20261,211 (4)
Higginbotham Insurance Agency, Inc.0.75%Delayed Draw Term Loan11/25/20267,611 (85)
High Street Buyer, Inc.1.00%Delayed Draw Term Loan08/11/202325,891 (270)
Foundation Risk Partners, Corp.Foundation Risk Partners, Corp.1.00%Delayed Draw Term Loan04/14/20245,020 (73)
1214
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
March 31,June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair Value
Integrity Marketing Acquisition, LLC1.00%Delayed Draw Term Loan02/03/2023$11,250 $(64)
Keystone Agency Investors1.00%Delayed Draw Term Loan02/01/20237,734 (105)
KWOR Acquisition, Inc.0.50%Revolver02/02/20271,710 (37)
Lightspeed Solution,LLC0.50%Delayed Draw Term Loan03/01/20284,878 (48)
LUV Car Wash Group, LLC1.00%Delayed Draw Term Loan02/09/20265,471 (54)
mPulse Mobile, Inc.1.00%Delayed Draw Term Loan02/17/202320,004 (304)
mPulse Mobile, Inc.0.50%Revolver12/17/20274,996 (76)
MRI Software, LLC0.50%Delayed Draw Term Loan03/24/20236,000 (30)
MSM Acquisitions, Inc.1.00%Delayed Draw Term Loan01/30/202312,500 (38)
Oakbridge Insurance Agency LLC1.00%Delayed Draw Term Loan03/31/202415,862 (118)
Oakbridge Insurance Agency LLC0.50%Revolver02/01/2026465 (7)
Omni Intermediate Holdings, LLC1.00%Delayed Draw Term Loan12/01/20231,360 (6)
Omni Intermediate Holdings, LLC0.50%Revolver12/30/20251,977 (9)
Peter C. Foy & Associates Insurance Services, LLC1.00%Delayed Draw Term Loan05/02/20238,523 (48)
Portfolio Group0.50%Delayed Draw Term Loan12/02/20252,500 (24)
Procure Acquireco, Inc. (Procure Analytics)0.50%Delayed Draw Term Loan02/20/20233,968 (66)
Procure Acquireco, Inc. (Procure Analytics)0.50%Revolver12/01/20261,190 (20)
Revalize, Inc.0.50%Delayed Draw Term Loan06/13/202314,184 (179)
Revalize, Inc.1.00%Revolver04/15/2027532 (7)
RSC Acquisition, Inc.0.50%Delayed Draw Term Loan01/02/202312,700 (265)
Sherlock Buyer Corp.0.50%Delayed Draw Term Loan02/08/20237,190 (29)
Sherlock Buyer Corp.0.50%Revolver02/08/20272,876 (11)
Smarsh, Inc.1.00%Delayed Draw Term Loan02/16/20291,071 (10)
Smarsh, Inc.0.50%Revolver02/16/2029268 (5)
Stepping Stones Healthcare Services, LLC1.00%Delayed Draw Term Loan01/14/20241,250 (6)
Stepping Stones Healthcare Services, LLC0.50%Revolver12/30/2026525 (7)
Sweep Purchaser, LLC1.00%Delayed Draw Term Loan11/30/2026630 (10)
Tamarack Intermediate, LLC1.00%Revolver03/13/20282,475 (49)
Trunk Acquisition, Inc.0.50%Revolver02/19/20261,072 (14)
Vardiman Black Holdings, LLC0.50%Delayed Draw Term Loan03/18/20276,467 (33)
World Insurance Associates, LLC1.00%Delayed Draw Term Loan04/01/202620,803 (414)
Total First Lien Debt Unfunded Commitments$293,299 $(2,908)
Second Lien Debt
Heartland Veterinary Partners, LLC0.75%Delayed Draw Term Loan1/17/2023$608 $(15)
Total Second Lien Debt Unfunded Commitments$608 $(15)
Total Unfunded Commitments$293,907 $(2,923)


Investments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair Value
GS AcquisitionCo, Inc.0.50%Delayed Draw Term Loan11/03/2022126 (2)
GS AcquisitionCo, Inc.0.50%Revolver05/22/202626 — 
Galway Borrower, LLC0.50%Delayed Draw Term Loan09/30/2023612 (13)
Galway Borrower, LLC0.50%Revolver09/30/2027414 (9)
Gateway US Holdings, Inc.1.00%Delayed Draw Term Loan04/15/20241,200 (11)
Gateway US Holdings, Inc.0.50%Revolver09/22/2024202 (2)
Govbrands Intermediate, Inc.1.00%Delayed Draw Term Loan08/04/20232,514 (93)
Govbrands Intermediate, Inc.0.50%Revolver08/04/20272,864 (105)
GraphPad Software, LLC0.50%Delayed Draw Term Loan04/27/202710,588 (354)
Heartland Home Services0.75%Delayed Draw Term Loan02/15/202614,354 (583)
Heartland Veterinary Partners, LLC0.75%Delayed Draw Term Loan01/17/202310,007 (183)
Heartland Veterinary Partners, LLC0.50%Revolver12/10/20261,211 (22)
Higginbotham Insurance Agency, Inc.1.00%Delayed Draw Term Loan11/25/20267,457 (128)
High Street Buyer, Inc.1.00%Delayed Draw Term Loan08/11/202325,372 (129)
Integrity Marketing Acquisition, LLC1.00%Delayed Draw Term Loan02/03/2023971 (19)
KPSKY Acquisition, Inc.1.00%Delayed Draw Term Loan06/17/20248,100 (162)
KWOR Acquisition, Inc.1.00%Delayed Draw Term Loan06/22/20243,493 (70)
KWOR Acquisition, Inc.0.50%Revolver12/22/20271,582 (32)
Kaseya, Inc.0.50%Delayed Draw Term Loan06/22/2024626 (5)
Kaseya, Inc.0.50%Revolver05/02/2029626 (9)
Keystone Agency Investors1.00%Delayed Draw Term Loan06/03/20243,988 (59)
LUV Car Wash Group, LLC1.00%Delayed Draw Term Loan02/09/20263,442 (87)
LegitScript—%Delayed Draw Term Loan06/24/202410,182 (203)
LegitScript0.50%Revolver06/24/20282,995 (60)
Lightspeed Solution, LLC0.50%Delayed Draw Term Loan03/01/20284,878 (187)
MHE Intermediate Holdings, LLC1.00%Delayed Draw Term Loan04/07/20241,379 (17)
MRI Software, LLC0.50%Delayed Draw Term Loan03/24/20236,000 (30)
MSM Acquisitions, Inc.0.75%Delayed Draw Term Loan01/30/202312,500 (289)
Mammoth Holdings, LLC0.50%Delayed Draw Term Loan10/29/20232,129 (19)
Netwrix Corporation And Concept Searching, Inc.0.50%Delayed Draw Term Loan06/09/20241,578 (8)
Netwrix Corporation And Concept Searching, Inc.—%Delayed Draw Term Loan06/09/2024588 — 
Netwrix Corporation And Concept Searching, Inc.0.25%Revolver06/01/2029316 (3)
Oak Purchaser, Inc.0.50%Delayed Draw Term Loan04/28/20243,102 (30)
Oak Purchaser, Inc.0.50%Revolver04/30/2029620 (6)
Oakbridge Insurance Agency, LLC1.00%Delayed Draw Term Loan03/31/202415,164 (579)
Oakbridge Insurance Agency, LLC0.50%Revolver12/31/2026508 (19)
Omni Intermediate Holdings, LLC1.00%Delayed Draw Term Loan06/24/20241,750 (34)
Omni Intermediate Holdings, LLC0.50%Revolver12/30/20251,977 (40)
1315
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Unaudited)
June 30, 2022
(In thousands)
Investments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair Value
Peter C. Foy & Associates Insurance Services, LLC—%Delayed Draw Term Loan12/14/20233,714 (55)
Peter C. Foy & Associates Insurance Services, LLC1.00%Delayed Draw Term Loan05/02/20231,600 (24)
Portfolio Group1.00%Delayed Draw Term Loan12/02/20252,367 (76)
Procure Acquireco, Inc. (Procure Analytics)0.50%Delayed Draw Term Loan02/20/20233,968 (133)
Procure Acquireco, Inc. (Procure Analytics)0.50%Revolver12/01/20261,190 (40)
Project Boost Purchaser, LLC1.00%Delayed Draw Term Loan05/02/20241,604 (8)
Project Boost Purchaser, LLC0.50%Revolver05/02/2027642 (6)
QW Holding Corporation1.00%Delayed Draw Term Loan05/02/20241,544 (16)
QW Holding Corporation0.50%Revolver08/31/20242,833 (40)
RSC Acquisition, Inc.0.50%Delayed Draw Term Loan01/02/20237,175 (70)
Redwood Services Group, LLC—%Delayed Draw Term Loan12/22/20231,902 (19)
Revalize, Inc.0.50%Delayed Draw Term Loan06/13/202313,887 (542)
Revalize, Inc.0.50%Revolver04/15/2027532 (21)
Securonix, Inc.0.50%Revolver04/05/20283,782 (64)
Sherlock Buyer Corp.0.50%Delayed Draw Term Loan02/08/20237,190 (155)
Sherlock Buyer Corp.0.50%Revolver12/08/20272,876 (62)
Smarsh, Inc.1.00%Delayed Draw Term Loan02/16/20291,071 (28)
Smarsh, Inc.0.50%Revolver02/16/2029268 (7)
Stepping Stones Healthcare Services, LLC1.00%Delayed Draw Term Loan01/14/20241,250 (52)
Stepping Stones Healthcare Services, LLC0.50%Revolver12/30/2026625 (26)
Sweep Purchaser, LLC1.00%Delayed Draw Term Loan11/30/202655 (1)
Sweep Purchaser, LLC1.00%Delayed Draw Term Loan05/05/20241,788 (20)
Tamarack Intermediate, LLC0.50%Revolver03/13/20282,475 (115)
Tank Holding Corp.0.50%Revolver03/31/2028778 (15)
Trunk Acquisition, Inc.0.50%Revolver02/19/20261,071 (41)
V Global Holdings, LLC0.50%Revolver12/22/2025928 (18)
Vardiman Black Holdings, LLC1.25%Delayed Draw Term Loan03/18/20274,329 (216)
World Insurance Associates, LLC1.00%Delayed Draw Term Loan04/01/20261,768 (35)
mPulse Mobile, Inc.1.00%Delayed Draw Term Loan02/17/202320,004 (608)
mPulse Mobile, Inc.0.50%Revolver12/17/20274,996 (152)
Total First Lien Debt Unfunded Commitments$300,438 $(6,910)
Second Lien Debt
Heartland Veterinary Partners, LLC0.50%Delayed Draw Term Loan01/17/2023$356 $(18)
Total Second Lien Debt Unfunded Commitments$356 $(18)
Total Unfunded Commitments$300,794 $(6,928)
(11)Assets or a portion thereof are pledged as collateral for the Barclays Funding Facility. See Note 6 “Debt”.
16
Table of Contents
T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Audited)
December 31, 2021
(In thousands)

Investments-non-controlled/non-affiliated(1)FootnotesReference Rate and Spread
Interest Rate(3)
Maturity DatePar Amount/ Shares
Cost(2)
Fair Value Percentage of Net Assets
First Lien Debt
Air Freight & Logistics
Omni Intermediate Holdings, LLC(4) (5)L + 5.00%6.00%12/30/2026$19,725 $19,530 $19,530 8.32 %
Omni Intermediate Holdings, LLC(4) (5) (9)L + 5.00%6.00%12/30/20262,219 2,185 2,185 0.93 
Omni Intermediate Holdings, LLC(4) (5) (9)L + 5.00%6.00%12/30/2025494 475 475 0.20 
22,190 22,190 9.45 
Biotechnology
GraphPad Software, LLC(4) (5)L + 5.50%6.50%04/27/202719,412 19,220 19,220 8.19 
GraphPad Software, LLC(4) (5) (9)L + 5.50%6.50%04/27/2027— (105)(105)(0.04)
19,115 19,115 8.14 
Commercial Services & Supplies
Encore Holdings, LLC(4) (6)L + 4.50%5.25%11/23/20281,246 1,224 1,224 0.52 
Encore Holdings, LLC(4) (6) (9)L + 4.50%5.25%11/23/2028341 318 318 0.14 
Encore Holdings, LLC(4) (6) (9)L + 4.50%5.25%11/23/2027— (6)(6)— 
FLS Holding, Inc.(4) (5) (7)L + 5.25%6.25%12/17/202830,667 30,056 30,056 12.80 
FLS Holding, Inc.(4) (5) (7) (9)L + 5.25%6.25%12/17/2028— (66)(66)(0.03)
FLS Holding, Inc.(4) (5) (7) (9)L + 5.25%6.25%12/17/2027— (53)(53)(0.02)
KWOR Acquisition, Inc.(4) (6)L + 5.25%6.00%12/22/202813,171 12,974 12,974 5.53 
KWOR Acquisition, Inc.(4) (9)P + 4.25%7.50%12/22/2027183 156 156 0.07 
MHE Intermediate Holdings, LLC(4) (5)L + 5.75%6.75%07/21/202714,963 14,813 14,813 6.31 
Procure Acquireco, Inc. (Procure Analytics)(4) (6)L + 5.50%6.25%12/20/202819,841 19,446 19,446 8.28 
Procure Acquireco, Inc. (Procure Analytics)(4) (6) (9)L + 5.50%6.25%12/20/2028— (39)(39)(0.02)
Procure Acquireco, Inc. (Procure Analytics)(4) (6) (9)L + 5.50%6.25%12/20/2028— (24)(24)(0.01)
Sherlock Buyer Corp.(4) (6)L + 5.75%6.50%12/08/202824,925 24,430 24,430 10.41 
Sherlock Buyer Corp.(4) (6) (9)L + 5.75%6.50%12/08/2028— (71)(71)(0.03)
Sherlock Buyer Corp.(4) (6) (9)L + 5.75%6.50%12/08/2027— (57)(57)(0.02)
Sweep Purchaser, LLC(4) (5) (9)L + 5.75%6.75%11/30/2026— (35)(35)(0.01)
103,066 103,066 43.91 
Containers & Packaging
BP Purchaser, LLC(4) (6)L + 5.50%6.25%12/10/202827,728 27,177 27,177 11.58 
Distributors
PT Intermediate Holdings III, LLC(4) (6)L + 5.50%6.25%11/01/202810,980 10,872 10,872 4.63 
PT Intermediate Holdings III, LLC(4) (6) (9)L + 5.50%6.25%11/01/20287,272 7,200 7,200 3.07 
18,072 18,072 7.70 
Diversified Financial Services
SitusAMC Holdings Corporation(4) (6)L + 5.75%6.50%12/22/202723,600 23,365 23,365 9.95 
First Lien Debt (continued)
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T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Audited)
December 31, 2021
(In thousands)
Investments-non-controlled/non-affiliated(1)FootnotesReference Rate and Spread
Interest Rate(3)
Maturity DatePar Amount/ Shares
Cost(2)
Fair Value Percentage of Net Assets
Health Care Providers & Services
Heartland Veterinary Partners, LLC(4) (5)L + 4.75%5.75%12/10/20266,089 $6,030 $6,030 2.57 %
Heartland Veterinary Partners, LLC(4) (5) (9)L + 4.75%5.75%12/10/20261,370 1,236 1,236 0.53 
Heartland Veterinary Partners, LLC(4) (5) (9)L + 4.75%5.75%12/10/2026— (12)(12)(0.01)
mPulse Mobile, Inc.(4) (6)L + 5.25%6.00%12/17/202710,000 9,801 9,801 4.18 
mPulse Mobile, Inc.(4) (6) (9)L + 5.25%6.00%12/17/2027— (199)(199)(0.08)
mPulse Mobile, Inc.(4) (6) (9)L + 5.25%6.00%12/17/2027— (99)(99)(0.04)
16,757 16,757 7.14 
Insurance Services
Higginbotham Insurance Agency, Inc.(4) (6)L + 5.50%6.25%11/25/20263,701 3,664 3,664 1.56 
Higginbotham Insurance Agency, Inc.(4) (6) (9)L + 5.50%6.25%11/25/20261,060 1,011 1,011 0.43 
Integrity Marketing Acquisition, LLC(4) (6)L + 5.50%6.25%08/27/202514,963 14,739 14,739 6.28 
Integrity Marketing Acquisition, LLC(4) (6) (9)L + 5.50%6.25%08/27/2025— (83)(83)(0.04)
Keystone Agency Investors(4) (5)L + 5.50%6.50%05/03/20276,010 5,921 5,921 2.52 
Keystone Agency Investors(4) (5) (9)L + 5.50%6.50%05/03/2027— (115)(115)(0.05)
RSC Acquisition, Inc.(4) (6)L + 5.50%6.25%10/30/20263,143 3,113 3,113 1.33 
RSC Acquisition, Inc.(4) (6) (9)L + 5.50%6.25%10/30/20269,430 9,207 9,207 3.92 
World Insurance Associates, LLC(4) (5)L + 5.75%6.75%04/01/20266,762 6,629 6,629 2.82 
World Insurance Associates, LLC(4) (5) (9)L + 5.75%6.75%04/01/20269,934 9,534 9,534 4.06 
53,620 53,620 22.84 
Interactive Media & Services
MSM Acquisitions, Inc.(4) (5) (9)L + 6.00%7.00%12/09/2026— — — — 
IT Services
Govbrands Intermediate, Inc.(4) (6)L + 5.50%6.25%08/04/202724,121 23,526 23,526 10.02 
Govbrands Intermediate, Inc.(4) (6) (9)L + 5.50%6.25%08/04/20275,441 5,276 5,276 2.25 
Govbrands Intermediate, Inc.(4) (6) (9)L + 5.50%6.25%08/04/2027— (71)(71)(0.03)
28,731 28,731 12.24 
Machinery
Answer Target Holdco, LLC(4) (5)L + 6.00%7.00%12/30/202623,836 23,360 23,360 9.95 
Answer Target Holdco, LLC(4) (5) (9)L + 6.00%7.00%12/30/2026— (37)(37)(0.02)
23,323 23,323 9.94 
Software
Revalize, Inc.(4) (5) (9)L + 5.25%6.25%04/15/20279,397 9,234 9,234 3.93 
Revalize, Inc.(4) (5) (9)L + 5.25%6.25%04/15/2027— (14)(14)(0.01)
Trunk Acquisition, Inc.(4) (5)L + 6.00%7.00%02/19/202711,429 11,314 11,314 4.82 
Trunk Acquisition, Inc.(4) (5) (9)L + 6.00%7.00%02/19/2026— (11)(11)— 
20,523 20,523 8.74 
Total First Lien Debt$355,939 $355,939 151.64 %

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T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Audited)
December 31, 2021
(In thousands)
Investments-non-controlled/non-affiliated(1)
FootnotesReference Rate and Spread
Interest Rate(3)
Acquisition DateMaturity DatePar Amount/ Shares
Cost(2)
Fair ValuePercentage of Net Assets
Second Lien Debt
Health Care Providers & Services
Heartland Veterinary Partners, LLC(4) (5)L + 8.00%9.00%12/10/20272,520 $2,471 $2,471 1.05%
Heartland Veterinary Partners, LLC(4) (5) (9)L + 8.00%9.00%12/10/2027372 365 365 0.16
2,836 2,836 1.21
Total Second Lien Debt$2,836 $2,836 1.21%
Other Securities
Preferred Equity
Integrity Marketing Acquisition, LLC(4) (8)10.50% PIK12/21/20211,000,000 $980 $980 0.42%
Revalize, Inc.(4) (8)12/14/20212,000 1,960 1,960 0.84
Total Preferred Equity$2,940 $2,940 1.25%
Common Equity
BP Purchaser, LLC(4) (8)12/10/20211,233,333 $1,233 $1,233 0.53%
Encore Holdings, LLC(4) (8)11/23/20211,478 170 170 0.07
mPulse Mobile, Inc.(4) (8)12/17/2021105,978 780 780 0.33
Procure Acquiom Financial, LLC (Procure Analytics)(4) (8)12/20/2021500,000 500 500 0.21
Total Common Equity$2,683 $2,683 1.14%
Total Other Securities$5,623 $5,623 2.40%
Total Portfolio Investments$364,398 $364,398 155.24%
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T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Audited)
December 31, 2021
(In thousands)
(1)Unless otherwise indicated, issuers of debt and equity investments held by the Company (which such term “Company” shall include the Company’s consolidated subsidiaries for purposes of this Consolidated Schedule of Investments) are denominated in dollars. All debt investments are income producing unless otherwise indicated. All equity investments are non-income producing unless otherwise noted. Certain portfolio company investments are subject to contractual restrictions on sales. Under 1940 Act, the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. As of December 31, 2021, the Company does not “control” any of these portfolio companies. Under the 1940 Act, the Company would be deemed an “affiliated person” of a portfolio company if the Company owns 5% or more of the portfolio company’s outstanding voting securities. As of December 31, 2021, the Company is not an “affiliated person” of any of its portfolio companies.
(2)The cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(3)Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to either LIBOR (“L”) or an alternate base rate (commonly based on the Federal Funds Rate (“F”) or the U.S. Prime Rate (“P”)), which generally resets periodically. For each loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as of December 31, 2021. For investments with multiple reference rates or alternate base rates, the interest rate shown is the weighted average interest rate in effect at December 31, 2021. As of December 31, 2021, the reference rates for our variable rate loans were the 1-month L at 0.10%, 3-month L at 0.21%, the 6-month L at 0.34% and the P at 3.25%.
(4)These investments were valued using unobservable inputs and are considered Level 3 investments. Fair value was determined in good faith by or under the direction of the Board of Trustees (see Note 2 and Note 5), pursuant to the Company’s valuation policy.
(5)Loan includes interest rate floor of 1.00%.
(6)Loan includes interest rate floor of 0.75%.
(7)The investment is not a qualifying asset under Section 55(a) of the 1940 Act. 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 December 31, 2021 non-qualifying assets represented 6.6% of total assets as calculated in accordance with regulatory requirements.
(8)Securities exempt from registration under the Securities Act of 1933 and may be deemed to be “restricted securities”. As of December 31, 2021, the aggregate fair value of these securities is $5,623 or 2.4% of the Company’s net assets. The initial acquisition dates have been included for such securities.
(9)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fair value, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded loan commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the Company’s unfunded commitments as of December 31, 2021:

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T Series Middle Market Loan Fund LLC
Consolidated Schedule of Investments (Audited)
December 31, 2021
(In thousands)
Investments-non-controlled/non-affiliatedUnused Fee RateCommitment TypeCommitment Expiration DateUnfunded CommitmentFair Value
First Lien Debt
Answer Target Holdco, LLC0.50%Revolver12/30/2026$1,834 $(37)
Encore Holdings, LLC0.75%Delayed Draw Term Loan11/23/20242,054 (20)
Encore Holdings, LLC0.50%Revolver11/23/2027359 (6)
FLS Holding, Inc.1.00%Delayed Draw Term Loan06/17/20236,667 (66)
FLS Holding, Inc.0.50%Revolver12/17/20272,667 (53)
Govbrands Intermediate, Inc.1.00%Delayed Draw Term Loan08/04/20232,514 (52)
Govbrands Intermediate, Inc.0.50%Revolver08/04/20272,864 (71)
GraphPad Software, LLC0.50%Delayed Draw Term Loan11/29/202310,588 (105)
Heartland Veterinary Partners, LLC0.75%Delayed Draw Term Loan11/17/202312,330 (120)
Heartland Veterinary Partners, LLC0.50%Revolver12/10/20261,211 (12)
Higginbotham Insurance Agency, Inc.1.00%Delayed Draw Term Loan12/22/20237,611 (42)
Integrity Marketing Acquisition, LLC0.50%Delayed Draw Term Loan12/03/202311,250 (83)
Keystone Agency Investors1.00%Delayed Draw Term Loan12/21/20237,734 (115)
KWOR Acquisition, Inc.0.50%Revolver12/22/20271,646 (25)
mPulse Mobile, Inc.1.00%Delayed Draw Term Loan12/17/202320,004 (199)
mPulse Mobile, Inc.0.50%Revolver12/17/20274,996 (99)
MSM Acquisitions, Inc.1.00%Delayed Draw Term Loan06/30/202312,500              -
Omni Intermediate Holdings, LLC1.00%Delayed Draw Term Loan12/01/20232,348 (12)
Omni Intermediate Holdings, LLC0.50%Revolver12/30/20251,483 (15)
Procure Acquireco, Inc. (Procure Analytics)0.50%Delayed Draw Term Loan12/20/20233,968 (39)
Procure Acquireco, Inc. (Procure Analytics)0.50%Revolver12/20/20281,191 (24)
PT Intermediate Holdings III, LLC—%Delayed Draw Term Loan05/11/202210,150              -
Revalize, Inc.0.50%Delayed Draw Term Loan06/13/202314,184 (70)
Revalize, Inc.0.50%Revolver04/15/20271,419 (14)
RSC Acquisition, Inc.0.50%Delayed Draw Term Loan11/12/202313,517 (131)
Sherlock Buyer Corp.0.50%Delayed Draw Term Loan12/08/20237,190 (71)
Sherlock Buyer Corp.0.50%Revolver12/08/20272,876 (57)
Sweep Purchaser, LLC1.00%Delayed Draw Term Loan12/08/20233,500 (35)
Trunk Acquisition, Inc.0.50%Revolver02/19/20261,071 (11)
World Insurance Associates, LLC1.00%Delayed Draw Term Loan06/01/202320,803 (271)
Total First Lien Debt Unfunded Commitments$192,529 $(1,855)
Second Lien Debt
Heartland Veterinary Partners, LLC0.50%Delayed Draw Term Loan11/17/2023$608 $(5)
Total Second Lien Debt Unfunded Commitments$608 $(5)
Total Unfunded Commitments$193,137 $(1,860)
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T Series Middle Market Loan Fund LLC
Notes to the Consolidated Financial Statements (Unaudited)
March 31,June 30, 2022
(In thousands, except unit and per unit amounts)


(1)Organization
T Series Middle Market Loan Fund LLC (the “Company”) is a non-diversified, externally managed specialty finance company that is focused on lending to middle market companies. The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940 Act, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company intends to elect to be treated, and intends to comply with the requirements to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is not a subsidiary of or consolidated with Morgan Stanley.
The Company was formed as a Delaware limited liability company on September 14, 2021 with the name “MS BDC 4 LLC”. The Company changed its name to “T Series Middle Market Investment Loan Fund LLC” on September 21, 2021 and to “T Series Middle Market Loan Fund LLC” on October 4, 2021. The Company commenced operations on November 4, 2021. Pursuant to the Company’s operating agreement, theThe Company has delegated the right to manage the assets of the Company to MS Capital Partners Adviser Inc., as the investment adviser to the Company (the “Adviser” or “Investment Adviser”). The Investment Adviser is an indirect, wholly owned and consolidated subsidiary of Morgan Stanley.
The Company’s investment objective is to achieve attractive risk-adjusted returns via current income and, to a lesser extent, capital appreciation by investing primarily in directly originated senior secured term loans issued by U.S. middle-market companies backed by financial sponsors, including first lien senior secured term loans, second lien senior secured term loans, with the balance of its investments expected to be in higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases.
Pursuant to aThe Company is conducting private offeringofferings of common units (the “Common Units”) to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), each. Each investor at any closing of a private offering makes a capital commitment (a “Capital Commitment”) to purchase Common Units pursuant to a subscription agreement entered into with the Company (a “Subscription Agreement”). Investors are required to fund drawdowns to purchase Common Units up to the amount of their respective Capital Commitments each time the Company delivers a notice to the investors.
The Company has formed wholly-owned subsidiaries for the purpose of holding certain investments in portfolio companies made by the Company. As of March 31,June 30, 2022, the Company's wholly-owned subsidiaries were formed as Delaware limited liability companies and included: T Series CA SPV LLC (“CA SPV”), T Series Equity Holdings LLC (“T Series Equity Holdings”) and T Series Financing SPV LLC (“T Series SPV LLC,” collectively with CA SPV, T Series Equity Holdings and T Series SPV LLC, the “subsidiaries”). The Company consolidates its wholly-owned subsidiaries in these consolidated financing statements from the date of the respective subsidiary's formation.
(2)Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). As an investment company, the Company applies the accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies (“ASC 946”) issued by the Financial Accounting Standards Board (“FASB”). The carrying value for all assets and liabilities approximates their fair value.
The consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures for annual, audited consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that the Company may ultimately achieve for the year ending December 31, 2022.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Such amounts could differ from those estimates and such differences could be material. Management’s estimates are based on historical experiences and other factors, including expectations of future events that management believes to be reasonable under the circumstances. Assumptions and estimates regarding the valuation of investments involve a higher degree of judgment and complexity and these assumptions and estimates may be significant to the consolidated financial statements.
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Consolidation
As provided under ASC 946, the Company will not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.
Cash
Cash is carried at cost, which approximates fair value. The Company deposits its cash with multiple financial institutions and, at times, may exceed the Federal Deposit Insurance Corporation insured limit.
Foreign Currency Translation
The functional currency of the Company is the U.S. Dollar. Investments denominated in foreign currencies are translated into U.S. Dollars based upon currency exchange rates effective on the last business day of the period. Net changes in fair value of investments due to foreign exchange rates fluctuation is recorded as change in unrealized appreciation (depreciation) from foreign currency translation on the Consolidated Statements of Operations. Investment and non-investment activities denominated in foreign currencies, including purchase and sales of investments, borrowings and repayments of debt, income and expenses, are translated into U.S. dollars based upon currency exchange rates prevailing on the transaction dates.
Investments
Investment transactions are recorded on the trade date. Receivables/payables from investments sold/purchased on the Consolidated Statements of Financial Condition consist of amounts receivable to or payable by the Company for transactions that have not settled at the reporting date. Realized gains or losses are measured by the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment values, including the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period. See Note 5 for further information about fair value measurements.
The Company’s Board of Directors, with the assistance of the Company’s audit committee (the “Audit Committee”), determines the fair value of the Company’s investments in accordance with ASC Topic 820, Fair Value Measurements (“ASC 820”) issued by FASB. ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value is a market-based measurement, not an entity-specific measurement. For some investments, observable market transactions or market information might be available. For other investments, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same—to estimate the price when an orderly transaction to sell the investment would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant. Refer to Note 5 the Company’s framework for determining fair value, fair value hierarchies, and the composition of the Company’s portfolio.
Revenue Recognition
Interest Income
Interest income is recorded on an accrual basis and includes the accretion of discounts and amortizations of premiums. Discounts from and premiums to par value on debt investments purchased are accreted/amortized into interest income over the life of the respective investment using the effective interest method. The amortized cost of debt investments represents the original cost, including loan origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion of discounts and amortization of premiums, if any. Upon prepayment of a loan or debt investment, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income in the current period.
PIK Income
The Company has loans in its portfolio that contain payment-in-kind (“PIK”) provisions. PIK represents interest that is accrued and recorded as interest income at the contractual rates, increases the loan principal on the respective capitalization dates, and is generally due at maturity. Such income is included in interestPIK income inon the Consolidated StatementStatements of Operations. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed through interestPIK income. To maintain the Company’s status as a RIC, thisThis non-cash source of income is included when determining what must be paid out to unitholdersstockholders in the form of dividends,distributions in order for the Company to qualify as a RIC, even though the Company has not yet collected cash.
Dividend income
Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date
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for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies. Dividend income is presented net of withholding tax, if any.
Other Income
The Company may receive various fees in the ordinary course of business such as structuring, consent, waiver, amendment and syndication fees as well as fees for managerial assistance rendered by the Company to the portfolio companies. Such fees are recognized in income when earned or when the services are rendered and there is no uncertainty or contingency related to the amount to be received.
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Non-Accrual Income
Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full. Accrued interest is generally reversed when a loan is placed on non-accrual status. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the 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 management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.
Organization and Offering Costs
Costs associated with the organization of the Company are expensed as incurred, subject to the limitations discussed in Note 3. These costs consist primarily of legal fees and other costs of organizing the Company. Costs associated with the offering of Common Units are capitalized as “deferred offering costs” on the Statements of Financial Condition and amortized over a twelve-month period from the initial capital call, subject to the limitation described in Note 3 below. These costs consist primarily of legal fees and other costs incurred in connection with the Company’s continuous private offerings of its Common Units. As of March 31,June 30, 2022, organization and offering costs are included in payable to affiliates and accrued expenses on the Consolidated Statements of Financial Condition.
Expenses
The Company is responsible for investment expenses, legal expenses, and other general and administrative expenses related to the Company’s operations. Such fees and expenses, including expenses incurred by the Investment Adviser on behalf of the Company, will be reimbursed by the Company, subject to contractual thresholds.
The Company pays the Investment Adviser a base management fee and an incentive fee under the Investment Advisory Agreement between the Company and the Investment Adviser (the “Investment Advisory Agreement”) as described in Note 3 below. The fees are recorded in the Consolidated StatementStatements of Operations.
Deferred Financing Costs
Deferred financing costs represent upfront fees, legal and other direct incremental costs incurred in connection with the Company’s borrowings. These costs are deferred and will be amortized over the life of the related borrowings using the straight-line method. Deferred financing costs related to revolving credit facilities are presented separately as an asset on the Company’s Statement of Financial Condition.
Income Taxes
The Company intends to elect to be treated as a RIC under Subchapter M of the Code. So long as the Company maintains its status as a RIC, it generally will not pay corporate U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its unitholders as dividends.
In order to qualify as a RIC, the Company must meet certain minimum distribution, source-of-income and asset diversification requirements. If such requirements are met, then the Company is generally required to pay income taxes only on the portion of its taxable income and gains it does not distribute.
The minimum distribution requirements applicable to RICs require the Company to distribute to its unitholders at least 90% of its investment company taxable income (the “ICTI”), as defined by the Code, each year. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year distributions into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.
In addition, based on the excise distribution requirements, the Company is subject to a 4% nondeductible federal excise tax on undistributed income unless the Company distributes in a timely manner an amount at least equal to the sum of (1) 98% of its ordinary income for each calendar year, (2) 98.2% of capital gain net income (both long-term and short-term) for the one-year period ending October 31 in that calendar year and (3) any income realized, but not distributed, in the preceding year. For this purpose, however, any ordinary income or capital gain net income retained by the Company that is subject to corporate income tax is considered to have been
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distributed. The Company currently intends to make sufficient distributions each taxable year to satisfy the excise distribution requirements.
The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. All penalties and interest associated with income taxes, if any, are included in income tax expense. Each of the SPVs, except for T Series Equity Holdings, is a disregarded entity for tax purposes and will be consolidated with the tax return of the Company.
For the three and six months ended March 31,June 30, 2022, the Company incurred $1 and $2 of U.S. federal excise tax.
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New Accounting Standards
In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04 (“ASU 2020-04”) “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This accounting update provides optional accounting relief to entities with contracts, hedge accounting relationships or other transactions that reference the London Interbank Offered Rate (“LIBOR”) or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. This optional relief generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, and would therefore not trigger certain accounting impacts that would otherwise be required. The optional relief can be applied beginning January 1, 2020 and ending December 31, 2022. The Company adopted the accounting relief on January 1, 2022, and noted no material impact on the consolidated financial statements, as relevant contract relationship modifications are made during the course of the reference rate reform transition period.
(3)Related Party Transactions
Investment Advisory Agreement
On October 19, 2021, the Board of Directors, including a majority of the directors who are not “interested persons” as defined in Section 2(a)(19) of the 1940 Act (the “Independent Directors”), approved the Investment Advisory Agreement in accordance with, and on the basis of an evaluation satisfactory to such directors as required by, Section 15(c) of the 1940 Act.
The Company pays the Investment Adviser a fee for its services under the Investment Advisory Agreement consisting of two components: a base management fee (the “Base Management Fee”) and an incentive fee. The cost of both the Base Management Fee and the incentive fee will ultimately be borne by the unitholders.
Base Management Fee
The base management fee is calculated at an annual rate of 0.5% of the Company’s average called capital commitments, at the end of the then-current quarter and the prior calendar quarter (and, in the case of our first quarter, called capital commitments as of such quarter-end). Called capital commitments is defined in the Investment Advisory Agreement as the aggregate purchase price paid to purchase Common Units of the Company by all unitholders pursuant to a Subscription Agreement. Called capital commitments do not include assets acquired through the use of leverage. The Investment Adviser will not receive any fees on unused capital commitments. The base management fee for any partial quarter will be appropriately prorated.
For the three and six months ended March 31,June 30, 2022, base management fees were $321.$393 and $714. As of March 31,June 30, 2022, $321$393 was payable to the Investment Adviser relating to base management fees.
Incentive Fee
The Company pays the Investment Adviser an incentive fee consisting of two parts. The first part is determined and paid quarterly based on the Company’s pre-incentive fee net investment income and the second part is determined and payable in arrears based on net capital gains as of the end of each quartercalendar year or upon termination of the Investment Advisory Agreement.
Pre-incentive fee net investment income is defined as interest income, distribution income and any other income accrued during the calendar quarter, minus operating expenses for the quarter, including the base management fee, expenses payable to the Administrator under the Administration Agreement, any interest expense and distributions paid on any issued and outstanding Preferred Units, but excluding the incentive fee. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.
Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as debt instruments with payment-in-kind (“PIK”) interest and zero coupon securities), accrued income that the Company has not yet received in cash. The Investment Adviser is not obligated to return to us theany incentive fee it receives on PIK interest that is later determined to be uncollectible in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.
Pursuant to the Investment Advisory Agreement, the Company pays the Investment Adviser an incentive fee with respect to the Company’s pre-incentive fee net investment income as follows:
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•No incentive fee based on pre-incentive fee net investment income in any calendar quarter in which our pre-incentive fee net investment income does not exceed a hurdle rate of 1.5% (6.0% annualized) (“Hurdle Rate”);
•100% of pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 1.6393% in any quarter (6.5572% annualized). The Company refers to this portion of the pre-incentive fee net investment income (which exceeds the Hurdle Rate but is less than 1.6393%) as the “catch-up”. The “catch-up” is meant to provide the Investment Adviser with approximately 8.5% of the Company’s pre-incentive fee net investment income as if a Hurdle Rate did not apply if this net investment income exceeds 1.6393% in any calendar quarter; and
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•8.5% of the pre-incentive fee net investment income, if any, that exceeds 1.6393% in any calendar quarter (6.5572% annualized), which reflects that once the Hurdle Rate is reached and the catch-up is achieved, 8.5% of all pre-incentive fee net investment income is paid to the Investment Adviser.
The second part of the incentive fee is determined on realized capital gains calculated and payable in arrears in cash as of the end of each calendar quarter or upon the termination of the Investment Advisory Agreement in an amount equal to 8.5% of the realized capital gains, if any, on a quarterly basis from the date of the Company’s election to be regulated as a BDC through the end of a given calendar year or upon the termination of the Investment Advisory Agreement, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees (the “Cumulative Capital Gains”).
Under U.S. GAAP, the Company is required to accrue an incentive fee on capital gains, including unrealized capital appreciation even though such unrealized capital appreciation is not included in calculating the incentive fee payable under the Investment Advisory Agreement. If such amount is positive at the end of a period, then the Company records an incentive fee on capital gain incentive fee equal to 8.5% of such amount, less the aggregate amount of any previously paid capital gain incentive fees. If such amount is negative, no accrual is recorded for such period.
For the three and six months ended March 31,June 30, 2022, $489$756 and $1,245 of income based incentive fees were accrued to the Investment Adviser. For the three and six months ended March 31,June 30, 2022, $14$(14) and $0 of capital gains incentive fees were accrued to the Investment Adviser. The Investment Advisory Agreement does not permit unrealized capital appreciation for purposes of calculating the amount payable to the Investment Adviser. Amounts due related to unrealized capital appreciation, if any, will not be paid to the Investment Adviser until realized under the terms of the Investment Advisory Agreement and determined based on the calculation. Incentive fees on Cumulative Capital Gains crystallize at calendar year-end. As of March 31,June 30, 2022, there were $489$756 of income based incentive fees and $14$0 of capital gains incentive fees payable to the Investment Adviser.
Administration Agreement
MS Private Credit Administrative Services LLC (the “Administrator”) is the administrator of the Company pursuant to an administration agreement (the “Administration Agreement”). Pursuant to the Administration Agreement, the Administrator provides services and receives reimbursements from the Company for its costs and expenses and the Company’s allocable portion of overhead costs incurred by the Administrator in performing its obligations under the Administration Agreement. Reimbursement under the Administration Agreement occurs quarterly in arrears. The Administrator is an indirect, wholly owned and consolidated subsidiary of Morgan Stanley.
For the three and six months ended March 31,June 30, 2022, the Company incurred no expenses under the Administration Agreement. There were no amounts unpaid and included in payable to affiliates on the Consolidated Statements of Financial Condition as of three months ended March 31,June 30, 2022.
MS Credit Partners Holdings, Inc. Investment
MS Credit Partners Holdings, Inc., an indirect, wholly owned and consolidated subsidiary of Morgan Stanley and an affiliate of the Investment Adviser, invested seed capital of $10 toin the Company on September 28, 2021.
(4) Investments
The composition of the Company’s investment portfolio was as follows:
March 31, 2022December 31, 2021June 30, 2022December 31, 2021
CostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair Value
First Lien DebtFirst Lien Debt$512,624 $512,718 96.4 %$355,939 $355,939 97.7 %First Lien Debt$818,400 $806,611 97.0 %$355,939 $355,939 97.7 %
Second Lien DebtSecond Lien Debt13,318 13,288 2.5 2,836 2,836 0.8 Second Lien Debt16,772 16,406 2.0 2,836 2,836 0.8 
Other SecuritiesOther Securities5,623 5,727 1.1 5,623 5,623 1.5 Other Securities8,697 8,892 1.1 5,623 5,623 1.5 
TotalTotal$531,565 $531,733 100.0 %$364,398 $364,398 100.0 %Total$843,869 $831,909 100.0 %$364,398 $364,398 100.0 %
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The industry composition of investments at fair value was as follows:
March 31, 2022December 31, 2021June 30, 2022December 31, 2021
Air Freight & LogisticsAir Freight & Logistics4.3 %6.1 %Air Freight & Logistics3.1 %6.1 %
Auto ComponentsAuto Components1.2 — Auto Components0.7 — 
AutomobilesAutomobiles2.6 — Automobiles1.7 — 
BiotechnologyBiotechnology3.6 5.2 Biotechnology2.2 5.2 
ChemicalsChemicals3.8 — 
Commercial Services & SuppliesCommercial Services & Supplies23.5 28.5 Commercial Services & Supplies15.9 28.5 
Construction & EngineeringConstruction & Engineering— — (1)
Containers & PackagingContainers & Packaging5.3 7.8 Containers & Packaging3.3 7.8 
DistributorsDistributors8.7 4.9 Distributors8.4 4.9 
Diversified Consumer ServicesDiversified Consumer Services3.7 — Diversified Consumer Services4.6 — 
Diversified Financial ServicesDiversified Financial Services5.2 6.4 Diversified Financial Services4.0 6.4 
Health Care Providers & ServicesHealth Care Providers & Services9.2 5.6 Health Care Providers & Services7.6 5.6 
Insurance ServicesInsurance Services11.2 15.0 Insurance Services14.6 15.0 
Interactive Media & ServicesInteractive Media & Services0.9 — (1)Interactive Media & Services0.6 — 
IT ServicesIT Services7.6 7.9 IT Services7.1 7.9 
MachineryMachinery4.5 6.4 Machinery2.7 6.4 
Oil, Gas & Consumable FuelsOil, Gas & Consumable Fuels— — (1)
Professional ServicesProfessional Services0.9 — 
Real Estate Management & DevelopmentReal Estate Management & Development0.3 — Real Estate Management & Development0.6 — 
SoftwareSoftware8.2 6.2 Software18.2 6.2 
TotalTotal100.0 %100.0 %Total100.0 %100.0 %
(1)    Amount rounds to 0.0%.
The geographic composition of investments at cost and fair value was as follows:
March 31, 2022December 31, 2021June 30, 2022December 31, 2021
CostFair Value% of Total
Investments at
Fair Value		CostFair Value% of Total
Investments at
Fair Value		CostFair Value% of Total
Investments at
Fair Value		CostFair Value% of Total
Investments at
Fair Value
AustraliaAustralia$9,751 $9,751 1.8 %$— $— — %Australia$12,416 $12,416 1.5 %$— $— — %
CanadaCanada5,519 5,519 0.7 — — — 
United KingdomUnited Kingdom9,972 10,082 1.2 — — — 
United StatesUnited States521,814 521,982 98.2 364,398 364,398 100.0 United States815,962 803,892 96.6 364,398 364,398 100.0 
TotalTotal$531,565 $531,733 100.0 %$364,398 $364,398 100.0 %Total$843,869 $831,909 100.0 %$364,398 $364,398 100.0 %
(5) Fair Value Measurements
ASC 820 establishes a hierarchical disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value.
The three-level hierarchy for fair value measurements is defined as follows:
Level 1—inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. The Company will not adjust the quoted price for these instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level 2—inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, and certain over-the-counter derivatives where the fair value is based on observable inputs.
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Level 3—inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations and certain over-the-counter derivatives where the fair value is based on unobservable inputs.
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
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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.
Pursuant to the framework set forth above, the Company values securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of the investments from pricing services, brokers or dealers' quotes, or counterparty marks in order to value liquid assets that are not traded in active markets. Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, the Company will determine whether the quote obtained is sufficient according to U.S. GAAP to determine the fair value of the security. If determined adequate, the Company will use the quote obtained.
Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of the Investment Adviser or the Board, does not represent fair value, each is valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data is available. These valuation techniques may vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Non-controlled debt investments are generally fair valued using discounted cash flow technique. Expected cash flows are projected based on contractual terms and discounted back to the measurement date based on a discount rate. Discount rate is determined based upon an assessment of current and expected yields for similar investments and risk profiles. Non-controlled equity investments are generally fair valued using a market approach and/or an income approach. The market approach typically utilizes market value multiples of comparable publicly traded companies. The income approach typically utilizes a discounted cash flow analysis of the portfolio company. The Board undertakes a multi-step valuation process each quarter, as described below:
1)each portfolio company or investment is initially valued by using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs;
2)preliminary valuation conclusions are documented and reviewed by a valuation committee comprised of members of the Investment Adviser’s senior management;
3)the Board engages one independent third-party valuation firmfirms to provide positive assurance on a portion of the Company’s illiquid investments each quarter (such that each illiquid investment will be reviewed by an independent valuation firm at least once on a rolling twelve month basis) including review of management’s preliminary valuation and conclusion of fair value;
4)the Audit Committee reviews the assessments of the Investment Adviser and the independent third-party valuation firm and provide the Board with recommendations with respect to the fair value of each investment in the Company’s portfolio; and
5)the Board discusses the valuation recommendations of the Audit Committee and determine the fair value of each investment in the Company’s portfolio in good faith based on the input of the Investment Adviser and, where applicable, the third-party valuation firm.
The fair value is generally determined based on the assessment of the following factors, as relevant:
•the nature and realizable value of any collateral;
•call features, put features and other relevant terms of debt;
•the portfolio company’s leverage and ability to make payments;
•the portfolio company’s public or “private letter” credit ratings;
•the portfolio company’s actual and expected earnings and discounted cash flow;
•prevailing interest rates for like securities and expected volatility in future interest rates;
•the markets in which the issuer does business and recent economic and/or market events; and
•comparisons to publicly traded securities.
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.
The Board is ultimately responsible for the determination, in good faith, of the fair value of the Company’s portfolio investments.
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The following tables presents the fair value hierarchy of the investments as of:
March 31, 2022
Level 1Level 2Level 3Total
First Lien Debt$— $— $512,718 $512,718 
Second Lien Debt— — 13,288 13,288 
Other Securities— — 5,727 5,727 
Total$— $— $531,733 $531,733 
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June 30, 2022
Level 1Level 2Level 3Total
First Lien Debt$— $— $806,611 $806,611 
Second Lien Debt— — 16,406 16,406 
Other Securities— — 8,892 8,892 
Total$— $— $831,909 $831,909 

December 31, 2021
Level 1Level 2Level 3Total
First Lien Debt$— $— $355,939 $355,939 
Second Lien Debt— — 2,836 2,836 
Other Securities— — 5,623 5,623 
Total$— $— $364,398 $364,398 
The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the three months ended March 31,June 30, 2022:
First Lien DebtSecond Lien DebtOther SecuritiesTotal InvestmentsFirst Lien DebtSecond Lien DebtOther SecuritiesTotal Investments
Fair value, beginning of periodFair value, beginning of period$355,939 $2,836 $5,623 $364,398 Fair value, beginning of period$512,718 $13,288 $5,727 $531,733 
Purchases of investmentsPurchases of investments160,153 10,480 — 170,633 Purchases of investments318,725 3,448 2,981 325,154 
Proceeds from principal repayments and sales of investmentsProceeds from principal repayments and sales of investments(3,829)— — (3,829)Proceeds from principal repayments and sales of investments(13,802)— — (13,802)
Accretion of discount/amortization of premiumAccretion of discount/amortization of premium360 3 — 363 Accretion of discount/amortization of premium571 6 — 577 
Payment-in-kindPayment-in-kind177 — 93 270 
Net change in unrealized appreciation (depreciation)Net change in unrealized appreciation (depreciation)95 (31)104 168 Net change in unrealized appreciation (depreciation)(11,882)(336)91 (12,127)
Net realized gains (losses)Net realized gains (losses)104 — — 104 
Transfers into/out of Level 3Transfers into/out of Level 3— — — — 
Fair value, end of periodFair value, end of period$512,718 $13,288 $5,727 $531,733 Fair value, end of period$806,611 $16,406 $8,892 $831,909 
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2022$94 $(30)$104 $168 
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022$(11,882)$(336)$91 $(12,127)
The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the period from September 14, 2021 (inception) to December 31, 2021:six months ended June 30, 2022:
First Lien DebtSecond Lien DebtOther SecuritiesTotal InvestmentsFirst Lien DebtSecond Lien DebtOther SecuritiesTotal Investments
Fair value, beginning of periodFair value, beginning of period$— $— $— $— Fair value, beginning of period$355,939 $2,836 $5,623 $364,398 
Purchases of investmentsPurchases of investments358,135 2,835 5,623 366,593 Purchases of investments478,877 13,928 2,981 495,786 
Proceeds from principal repayments and sales of investmentsProceeds from principal repayments and sales of investments(2,265)— — (2,265)Proceeds from principal repayments and sales of investments(17,631)— — (17,631)
Accretion of discount/amortization of premiumAccretion of discount/amortization of premium69 1 — 70 Accretion of discount/amortization of premium932 9 — 941 
Payment-in-kindPayment-in-kind177 — 93 270 
Net change in unrealized appreciation (depreciation)Net change in unrealized appreciation (depreciation)(11,787)(367)195 (11,959)
Net realized gains (losses)Net realized gains (losses)104 — — 104 
Transfers into/out of Level 3Transfers into/out of Level 3— — — — 
Fair value, end of periodFair value, end of period$355,939 $2,836 $5,623 $364,398 Fair value, end of period$806,611 $16,406 $8,892 $831,909 
Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2021$— $— $— $— 
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022$(11,787)$(367)$195 $(11,959)

The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value.
March 31, 2022
Fair
Value		Valuation TechniqueUnobservable
Input		RangeWeighted
Average
LowHigh
Investments in first lien debt$512,718 Yield AnalysisDiscount Rate6.90 %10.70 %8.57 %
Investments in second lien debt13,288 Yield AnalysisDiscount Rate9.80 %11.75 %10.21 %
Investments in other securities:
Preferred equity3,044 Income ApproachDiscount Rate11.68 %11.69 %11.68 %
Common equity2,683 Market ApproachEBITDA Multiple10.40x19.62x13.98x
Total investment in other securities5,727 
Total Investments$531,733 

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June 30, 2022
Fair
Value		Valuation TechniqueUnobservable
Input		RangeWeighted
Average
LowHigh
Investments in first lien debt$806,611 Yield AnalysisDiscount Rate7.70 %12.91 %9.65 %
Investments in second lien debt16,406 Yield AnalysisDiscount Rate12.27 %13.10 %12.55 %
Investments in other securities:
Preferred equity5,108 Income ApproachDiscount Rate11.68 %14.80 %12.90 %
Common equity780 Market ApproachRevenue Multiple10.40x10.40x10.40x
Common equity3,004 Market ApproachEBITDA Multiple11.70x19.62x14.35x
Total investment in other securities8,892 
Total Investments$831,909 

December 31, 2021
Fair
Value		Valuation TechniqueUnobservable
Input		RangeWeighted
Average
LowHigh
Investments in first lien debt$355,939 Yield AnalysisDiscount Rate6.20 %11.70 %7.59 %
Investments in second lien debt2,836 Yield AnalysisDiscount Rate9.90 %9.90 %9.90 %
Investments in other securities:
Preferred equity2,940 Yield AnalysisDiscount Rate11.70 %12.10 %11.97 %
Common equity2,683 Market ApproachEBITDA Multiple10.17x19.97x13.87x
Total investment in other securities5,623 
Total Investments$364,398 
The significant unobservable input used in yield analysis is discount rate based on comparable market yields. Significant increases in discount rates in isolation would result in a significantly lower fair value measurement. The significant unobservable input used in the market approach is the comparable company multiple. The multiple is used to estimate the enterprise value of the underlying investment. An increase/decrease in the multiple would result in an increase/decrease, respectively, in the fair value.
Financial instruments disclosed but not carried at fair value
The Company’s debt, including its credit facilities, is presented at carrying cost on the Consolidated Statements of Financial Condition. The fair value of the Company’s credit facilities is estimated using Level 3 inputs by discounting remaining payments using the appropriate discount rates, if available. The carrying value and fair value of the Company’s debt were as follows:
March 31, 2022December 31, 2021June 30, 2022December 31, 2021
Carrying ValueFair ValueCarrying ValueFair ValueCarrying ValueFair ValueCarrying ValueFair Value
CBA Subscription FacilityCBA Subscription Facility$250,000 $250,000 $214,000 $214,000 CBA Subscription Facility$327,000 $327,000 $214,000 $214,000 
Barclays Funding FacilityBarclays Funding Facility65,000 65,000 — — Barclays Funding Facility200,000 200,000 — — 
TotalTotal$315,000 $315,000 $214,000 $214,000 Total$527,000 $527,000 $214,000 $214,000 
(6)Debt
CBA Subscription Facility
On November 5, 2021, the Company entered into a Revolving Credit Agreement with Commonwealth Bank of Australia as administrative agent, lead arranger, letter of credit issuer and a lender, which was subsequently amended on January 25, 2022 (as amended, the “CBA Subscription Facility”). The CBA Subscription Facility allows the Company to borrow up to $425,000 at any one time outstanding, including a current $100,000 temporary increase in the facility that will expire on July 25, 2022 at which point $325,000 will be available under the facility. The facility is available subject to certain restrictions, including availability under the borrowing base, which is based on unused capital commitments. The amount of permissible borrowings under the CBA Subscription Facility may be increased to up to an aggregate amount of $500,000 with the consent of the lenders. The CBA Subscription Facility has a maturity date of November 5, 2023, which may be extended for an additional term of up to 364 days subject to the terms set forth in the CBA Subscription Facility.
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The CBA Subscription Facility bears interest at a rate of: (i) with respect to Eurocurrency Rate Loans (as defined in the CBA Subscription Facility), the greater of (x) the rate designated with respect to the currency in which the loan is denominated, and (y) 0%, plus 1.65%; (ii) with respect to RFR Loans (as defined in the CBA Subscription Facility) in Sterling, SONIA, plus 1.70%, plus a SONIA spread adjustment set forth in the CBA Subscription Facility; (iii) with respect to RFR Loans (as defined in the CBA Subscription Facility) in Dollars or Terms SOFR Loans, SOFR or Term SOFR as applicable, plus 1.65%, plus the SOFR spread adjustment set forth in the CBA Subscription Facility; and (iii) with respect to Reference Rate Loans (as defined in the CBA Subscription Facility), (x) the greatest of (1) the prime rate, (2) the federal funds rate plus 0.50%, and (y) Term SOFR plus 1.00%, provided that the reference rate will not be less than 2.00%, plus (y) 0.65%, each as calculated in accordance with the CBA Subscription Facility. The CBA Subscription Facility is secured by the unfunded investor commitments to purchase the Company’s Common Units. As of March 31,June 30, 2022, the Company was in compliance with all covenants and other requirements of the CBA Subscription Facility.
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The summary information of the CBA Subscription Facility is as follows:
For the Three Months Ended March 31, 2022
Borrowing interest expense$954 
Facility unused commitment fees147 
Amortization of deferred financing costs234 
Total$1,335 
Weighted average interest rate (excluding unused fees and financing costs)1.89 %
Weighted average outstanding balance$202,433 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Borrowing interest expense$1,579 $2,533 
Facility unused commitment fees129 276 
Amortization of deferred financing costs263 497 
Total$1,971 $3,306 
Weighted average interest rate (excluding unused fees and financing costs)2.45 %2.20 %
Weighted average outstanding balance$255,049 $228,887 
DuringFor the three months ended March 31,June 30, 2022, the Company borrowed $151,500$238,000 and repaid $115,500$161,000 under the CBA Subscription Facility. For the six months ended June 30, 2022, the Company borrowed $389,500 and repaid $276,500 under the CBA Subscription Facility. As of March 31,June 30, 2022, the Company had $175,000$98,000 of available capacity under the CBA Subscription Facility (subject to borrowing base restrictions).
Barclays Funding Facility
On March 7, 2022, T Series SPV LLC entered into a Credit and Security Agreement (the “Credit and Security Agreement”) with T Series SPV LLC, as the borrower, the lenders party thereto (the “Lenders”), Barclays Bank PLC (“Barclays”), as the administrative agent for the Lenders, the Company, as the servicer and retention provider, and State Street Bank & Trust Company, as collateral administrator, collateral agent and securities intermediary, pursuant to which the Lenders have agreed to extend credit to T Series SPV LLC in an aggregate principal amount up to $400,000 at any one time outstanding, with up to an additional $350,000 available pursuant to an accordion feature (the “Barclays Funding Facility”).
The Barclays Funding Facility is a revolving funding facility with a reinvestment period ending March 7, 2025 and a final maturity date of March 7, 2027. Advances under the Barclays Funding Facility are available in US dollars, British Pounds, Euros or Canadian dollars and such advances bear interest at a rate equal to an applicable margin plus, at T Series SPV LLC’s option, either (a) a rate based on Term SOFR, Daily Simple SONIA (or if Daily Simple SONIA is not available the Central Bank Rate), EURIBOR or CDOR, as applicable (or, if such rate is not available, a benchmark replacement) (each as defined in the Credit and Securities Agreement) or (b) a “base rate” (which with respect to US dollars is a rate per annum equal to the greater of a prime rate and the federal funds rate plus 0.50%; with respect to Canadian dollars is a rate per annum equal to the greater of the PRIMCAN Index and CDOR plus 1.0% and with respect to British Pounds and Euros is equal to the annual rate of interest announced from time to time by Barclays (or an affiliate thereof) as being its reference rate then in effect for determining interest rates on commercial loans made by it in the United Kingdom (with respect to GBP advances) or the Euro Zone (with respect to Euro advances), as applicable). The applicable margin with respect to advances under the Barclays Funding Facility generally ranges between 1.90% and 2.65% (depending on the type of assets such advances relate to).
The obligations of T Series SPV LLC under the Barclays Funding Facility are secured by all of the assets held by T Series SPV LLC (the “Collateral”), including certain corporate loans and corporate debt securities that the Company has originated or acquired, or will originate or acquire, from time to time (the “Portfolio Investments”), to be sold, contributed or otherwise transferred by the Company to T Series SPV LLC pursuant to the terms of the Sale and Contribution Agreement dated as of March 7, 2022 (the “Sale and Contribution Agreement” and, together with the Credit and Security Agreement, the “Agreements”) between the Company and T Series SPV LLC, entered into in connection with the Barclays Funding Facility. Under the Agreements, the Company and T Series SPV LLC, as applicable, have made customary representations and warranties regarding the Portfolio Investments, as well as their businesses, and are required to comply with various covenants, servicing procedures, limitations on disposition of Portfolio Investments, reporting requirements and other customary requirements for similar revolving funding facilities. As of March 31,June 30, 2022, the Company was in compliance with all covenants and other requirements of the Barclays Funding Facility.
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The summary information of the Barclays Funding Facility is as follows:
For the Three Months Ended March 31, 2022
Borrowing interest expense$112 
Facility unused commitment fees116 
Amortization of deferred financing costs26 
Total$254 
Weighted average interest rate (excluding unused fees and financing costs)2.48 %
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Borrowing interest expense$1,003 $1,115 
Facility unused commitment fees335 451 
Amortization of deferred financing costs95 121 
Total$1,433 $1,687 
Weighted average interest rate (excluding unused fees and financing costs)2.94 %2.88 %
Weighted average outstanding balance$135,110 $120,000 
Weighted average outstanding balance(1)
$65,000 
(1)Calculated for the period from March 7, 2022 (Barclays Funding Facility closing date) through March 31, 2022.
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DuringFor the three months ended March 31,June 30, 2022, the Company borrowed $65,000$135,000 and repaid $—$0 under the Barclays Funding Facility. For the six months ended June 30, 2022, the Company borrowed $200,000 and repaid $0 under the Barclays Funding Facility. As of March 31,June 30, 2022, the Company had $335,000$200,000 of available capacity under the Barclays Funding Facility (subject to borrowing base restrictions).
The combined weighted average interest rate of the aggregate borrowings outstanding for the three months ended March 31,June 30, 2022 was 1.93%2.62%. The combined weighted average debt of the aggregate borrowings outstanding for the three months ended March 31,June 30, 2022 was 220,489.$390,159.

The combined weighted average interest rate of the aggregate borrowings outstanding for the six months ended June 30, 2022 was 2.08%. The combined weighted average debt of the aggregate borrowings outstanding for the six months ended June 30, 2022 was $348,887.
The Company’s outstanding debt obligations were as follows:
March 31, 2022December 31, 2021June 30, 2022December 31, 2021
Aggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused Portion
CBA Subscription FacilityCBA Subscription Facility$425,000 $250,000 $175,000 $325,000 $214,000 $111,000 CBA Subscription Facility$425,000 $327,000 $98,000 $325,000 $214,000 $111,000 
Barclays Funding FacilityBarclays Funding Facility400,000 65,000 335,000 — — — Barclays Funding Facility400,000 200,000 200,000 — — — 
TotalTotal$825,000 $315,000 $510,000 $325,000 $214,000 $111,000 Total$825,000 $527,000 $298,000 $325,000 $214,000 $111,000 
(7)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.
As of March 31,June 30, 2022 and December 31, 2021, the Company had $293,907$300,794 and $193,137 of unfunded commitments to fund delayed draw and revolving senior secured loans, respectively.
As of March 31,June 30, 2022 and December 31, 2021, the Company had $1,000,010 and $1,000,010 in total capital commitments from common unitholders, respectively, of which $715,000$655,000 and $765,000 were unfunded, respectively.
(8)Members’ Capital
The following table shows the components of distributable earnings as shown on the Consolidated Statements of Financial Condition:
As of
March 31, 2022December 31, 2021
Net distributable earnings (accumulated losses), beginning of period$(269)$— 
Net investment income (loss)5,250 135 
Net realized gain (loss)— — 
Net unrealized appreciation (depreciation)168 — 
Dividends declared(4,942)(415)
Tax reclassification of members' capital— 11 
Net distributable earnings (accumulated losses), end of period$207 $(269)

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As of
June 30, 2022December 31, 2021
Net distributable earnings (accumulated losses), beginning of period$(269)$— 
Net investment income (loss)13,409 135 
Net realized gain (loss)104 — 
Net unrealized appreciation (depreciation)(11,959)— 
Dividends declared(12,806)(415)
Tax reclassification of members' capital— 11 
Net distributable earnings (accumulated losses), end of period$(11,521)$(269)
The following table summarizes the total units issued and proceeds received from the Company’s capital drawdowns delivered pursuant to the Subscription Agreements for threesix months ended March 31,June 30, 2022:
Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
Total2,512,563 $50,000 

Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
May 12, 20222,952,75660,000 
Total5,465,319$110,000 
The following table summarizes the Company’s distributions declared and payable for the threesix months ended March 31,June 30, 2022:

Date DeclaredRecord DatePayment DatePer Unit AmountTotal Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 $4,942 
Total Distributions$0.42 $4,942 
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Date DeclaredRecord DatePayment DatePer Unit AmountTotal Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 $4,942 
June 24, 2022June 24, 2022July 25, 20220.45 7,864 
Total Distributions$0.87 $12,806 
The Company adopted an “opt out” distribution reinvestment plan (“DRIP”). As a result, unless unitholders elect to “opt out” of the DRIP, unitholders will have their cash dividends or distributions automatically reinvested in additional Common Units, rather than receiving cash. Unitholders who receive distributions in the form of Common Units will generally be subject to the same U.S. federal, state and local tax consequences as if they received cash distributions; however, those unitholders will not receive cash with which to pay any applicable taxes. Units issued under the DRIP will not reduce a unitholder’s outstanding capital commitment.
The following table summarizes the amounts received and units issued to unitholders who have participated in the DRIP for the threesix months ended March 31,June 30, 2022:
Payment DatePayment DateDRIP Units IssuedDRIP Units ValuePayment DateDRIP Units IssuedDRIP Units Value
January 24, 2022January 24, 202220,652 $414,479 January 24, 202220,652 $414 
April 26, 2022April 26, 2022244,829 4,942 
TotalTotal20,652 $414,479 Total265,481 $5,356 
(9)Earnings Per Unit
The following table sets forth the computation of basic and diluted earnings per common unit:
For the Three Months Ended March 31, 2022
Net increase in Members' Capital from operations$5,418 
Weighted average Common Units outstanding11,790,318 
Basic and diluted earnings per Common Unit$0.46 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Net increase in Members' Capital from operations$(3,864)$1,554 
Weighted average Common Units outstanding16,080,203 13,947,111 
Basic and diluted earnings per Common Unit$(0.24)$0.11 
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(10)Consolidated Financial Highlights
The following are the financial highlights (dollar amounts in thousands, except per unit amounts):
For the Three Months Ended March 31, 2022
Per Unit Data:(1)
Net asset value, beginning of period$19.98 
Net investment income (loss)0.45 
Net unrealized and realized gain (loss)(2)
(0.01)
Net increase (decrease) in net assets resulting from operations0.44 
Distributions declared(0.42)
Total increase (decrease) in net assets0.02 
Net asset value, end of period$20.00 
Units outstanding, end of period14,280,242 
Total return based on net asset value(3)
2.19 %
Ratio/Supplemental Data:
Members' Capital, end of period$285,620 
Weighted average units outstanding11,790,318 
Ratio of total expenses to average Members’ Capital(4)
3.74 %
Ratio of net investment income to average Members’ Capital(4)
9.03 %
Asset coverage ratio190.67 %
Portfolio turnover rate0.87 %
For the Six Months Ended June 30, 2022
Per Unit Data:(1)
Net asset value, beginning of period$19.98
Net investment income (loss)0.96
Net unrealized and realized gain (loss)(2)
(0.69)
Net increase (decrease) in net assets resulting from operations0.27
Distributions declared(0.87)
Issuance of common units0.01
Total increase (decrease) in net assets(0.59)
Net asset value, end of period$19.39
Units outstanding, end of period17,477,827
Total return based on net asset value(3)
1.36%
Ratio/Supplemental Data:
Members' Capital, end of period$338,834
Weighted average units outstanding13,947,111
Ratio of total expenses to average Members’ Capital(4)
4.86 %
Ratio of net investment income to average Members’ Capital(4)
9.71 %
Asset coverage ratio164.29 %
Portfolio turnover rate3.12 %
(1)The per unit data was derived by using the weighted average units outstanding during the period, except otherwise noted.
(2)The amount shown does not correspond with the aggregate amount for the period as it includes the effect of the timing of capital transactions.
(3)Total return (not annualized) is calculated assuming a purchase of common units at the opening of the first day of the period and a sale on the closing of the last
business day of the period. Distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s
distribution reinvestment plan.
(4)Amounts are annualized except for incentive fees, and organization and offering costs.
(11)Subsequent Events
Subsequent events have been evaluated through the date the consolidated financial statements were issued. There have been no subsequent events that require recognition or disclosure through the date the consolidated financial statements were issued, except as disclosed below.
On April 28,July 6, 2022, the Company delivered a capital drawdown notice relating to the sale of approximately 5,900,462 of the Company’s common units, for an aggregate offering price of approximately $60,000.$115 million. The sale of Common Units is expected to closeclosed on May 12,July 14, 2022.
On July 19, 2022, the Company entered into that certain Second Amendment to Revolving Credit Agreement (the “Second Amendment”), amending that certain Revolving Credit Agreement, dated November 5, 2021 (as amended by that certain First Amendment to Revolving Credit Agreement, dated as of January 25, 2022, and as further amended, restated, amended and restated, supplemented or otherwise modified, including by the Second Amendment, the “Credit Agreement”) by and among the Company, as Borrower and Commonwealth Bank of Australia as Administrative Agent under the Credit Agreement, as Lead Arranger, as the Letter of Credit Issuer and as a Lender. The Second Amendment amends the Credit Agreement to, among other things, move to SOFR as the interest rate benchmark rate and include a short-term increase in the Maximum Commitment (as such term is defined in the Credit Agreement) in the amount of $100,000 for an aggregate Maximum Commitment of $425,000. The temporary increase maturity date is January 25, 2023. On such date, the Maximum Commitment will revert back to the initial $325,000.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (dollar amounts in thousands, except per unit amounts, unless otherwise indicated)

In this Quarterly Report on Form 10-Q, or this “Report”, except where context suggests otherwise, the terms “Company,” “we,” “our” or “us” refers to T Series Middle Market Loan Fund LLC and its consolidated subsidiaries. This Report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and you should not place undue reliance on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and opinions and our assumptions. For the avoidance of doubt, we are not a subsidiary of, or consolidated with, Morgan Stanley. Furthermore, Morgan Stanley has no obligation, contractual or otherwise, to financially support us beyond the aggregate capital commitment to purchase our common units pursuant to a subscription agreement entered into by MS Credit Partners Holdings, Inc. described below. Morgan Stanley has no history of financially supporting any business development companies (“BDCs”) on the MS Private Credit platform, even during periods of financial distress. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “potential”, “predicts” 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 our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:
•our future operating results;
•our business prospects and the prospects of our portfolio companies;
•risk associated with possible disruptions in our operations or the economy generally, including disruptions from the impact of the current Coronavirus (also referred to as “COVID-19” or “Coronavirus”) pandemic;
•changes in the general interest rate environment;
•general economic, political and industry trends and other external factors, including uncertainty surrounding the financial and political stability of the United States and other countries;
•the effect of an inflationary economic environment on our portfolio companies, our financial condition and our results of operations;
•our contractual arrangements and relationships with third parties;
•actual and potential conflicts of interest with MS Capital Partners Adviser Inc., our investment adviser (the “Adviser” or “Investment Adviser”), and its affiliates;
•the dependence of our future success on the general economy and its effect on the industries in which we invest;
•the ability of our portfolio companies to achieve their objectives, including as a result of the Coronavirus pandemic;
•the use of borrowed money to finance a portion of our investments;
•the adequacy of our financing sources and working capital;
•the timing and amount of cash flows, if any, from the operations of our portfolio companies;
•the ability of our Investment Adviser to locate suitable investments for us and to monitor and administer our investments;
•the ability of our Investment Adviser and its affiliates to attract and retain highly talented professionals;
•our ability to qualify and maintain our qualification as a BDC, and as a regulated investment company (a “RIC”), under the Internal Revenue Code of 1986, as amended (the “Code”);
•the impact on our business of U.S. and international financial reform legislation, rules and regulations;
•currency fluctuations, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars, could adversely affect the results of our investments in foreign companies;
•the effect of changes in tax laws and regulations and interpretations thereof; and
•the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in this Report.
The information contained in this section should be read in conjunction with “Item 1. Consolidated Financial Statements.” Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved. This discussion contains forward-looking statements, which relate to future events or our future performance or financial condition and involves numerous risks and uncertainties, including, but not limited to, those set forth in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, or the Form 10-K, and Part II, Item 1A of and elsewhere in this Report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Report. Moreover, we assume no duty and do not undertake to update the forward-looking statements. You are advised to consult any additional disclosures that we make directly to you or through reports that we have filed or in the future file with the Securities and Exchange Commission, (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.
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OVERVIEW

We are a non-diversified externally managed specialty finance company focused on lending to middle-market companies. We have elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to elect to be treated, and intend to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. We are not a subsidiary of, or consolidated with, Morgan Stanley.
Our investment objective is to achieve attractive risk-adjusted returns via current income and, to a lesser extent, capital appreciation by investing primarily in directly originated senior secured term loans issued by U.S. middle-market companies backed by financial sponsors. For the purposes of this report, “middle-market companies” refers to companies that, in general, generate annual EBITDA in the range of approximately $15 million to $100$150 million, which we believe is a useful proxy for cash flow although not all of our portfolio companies will meet this criteria.
We invest primarily in directly originated senior secured term loans issued by U.S middle-market companies backed by financial sponsors, including first lien senior secured term loans, second lien senior secured term loans, with the balance of our investments expected to be in higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases. Typical middle-market senior loans may be issued by middle-market companies in the context of leveraged buyouts (“LBOs”), acquisitions, debt refinancings recapitalizations, and other similar transactions. We generally expect our debt investments to have a stated term of five to eight years and typically bear interest at a floating rate usually determined on the basis of a benchmark (historically, the London Inter-bank OfferingOffered Rate (“LIBOR”) and prospectively, alternative reference rates including the Secured Overnight Financing Rate (“SOFR” or “S”)) and, prospectively, alternative reference rates).
We generate revenues primarily in the form of interest income from investments we hold. In addition, we generate income from dividends or distributions of income on any direct equity investments, capital gains on the sale of loans and equity securities and various other loan origination and other fees, including commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
On September 18, 2020,Pursuant to exemptive relief from the SEC granted to our Investment Adviser exemptive relief (the(as amended, the “Order”) that allows uswe are able to enter into certain negotiated co-investment transactions alongside certain other Affiliated Investment Accounts (as defined in the Order) in a manner consistent with our investment objective, positions, policies, strategies, and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with the Order. Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our eligible directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our unitholders and do not involve overreaching in respect of us or our unitholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our unitholders and is consistent with our investment objective and strategies.
CoronavirusRecent Market Developments
The effect onUncertainty as to the U.S.probability of, and length and depth of a global economyrecession, and the impact of the ongoing Coronavirus pandemic, uncertainty relating to new variants of the Coronavirus that have emerged in the United States and globally, vaccine hesitancy and efficacy, the length of economic recovery, government policies and actions taken or to be taken in response to the pandemic havehas created stress on the market and could affect our portfolio companies. In addition, government spending, government policies, including recent increases in certain interest rates by the U.S. Federal Reserve, high oil prices and disruptions in supply chains in the United States and elsewhere, in response to the Coronavirus pandemic and otherwise, in conjunction with other factors, including those described above, have led and could continue to lead to inflationary economic environments that could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving situation relatingmarket environment including as it relates to the Coronavirus pandemic and guidance from U.S. and international authorities, including federal, state and local public health authorities. In these circumstances, there may be developments outside our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impacts of the Coronavirusdevelopments described above on our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment, and we and our Investment Adviser continue to be fully operational.
KEY COMPONENTS OF OUR RESULTS OF OPERATIONS
Investments
Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt available to middle-market companies, the general economic environment and the competitive environment for the type of investments we make.
Revenue
We generate revenue primarily in the form of interest income on debt investments we hold. In addition, we generate income from dividends or distributions on income on direct equity investments, capital gains on the sales of loans and equity securities and various loan origination and other fees. Our debt investments generally have a stated term of five to eight years and typically to bear interest at a floating rate usually determined on the basis of a benchmark such as LIBOR or SOFR. Interest on these debt investments is generally paid quarterly. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we may receive repayments of some of our debt investments prior to their scheduled maturity date.
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The frequency or volume of these repayments is expected to fluctuate significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
Expenses
Our primary operating expenses include the payment of: (i) investment advisory fees, including base management fees and incentive fees, to our Investment Adviser pursuant to the Investment Advisory Agreement between us and our Investment Adviser (the “Investment Advisory Agreement”); (ii) costs and other expenses and our allocable portion of overhead incurred by our Administrator in performing its administrative obligations under the Administration Agreement between us and our Administrator (the “Administration Agreement”); and (iii) other operating expenses as detailed below:
•initial organization costs and offering costs incurred prior to the filing of our election to be regulated as a BDC;
•costs associated with any private offerings of our Common Units, and any other securities offerings;
•calculating individual asset values and our net asset value (including the cost and expenses of any third-party valuation services);
•out of pocket expenses, including travel expenses, incurred by the Investment Adviser, or members of its investment team or payable to third parties, performing due diligence on prospective portfolio companies and monitoring actual portfolio companies and, if necessary, enforcing our rights;
•base management fee and any incentive fee payable under the Investment Advisory Agreement;
•certain costs and expenses relating to distributions paid by us;
•administration fees payable under the Administration Agreement and any sub-administration agreements, including related expenses;
•debt service and other costs of borrowings, senior securities or other financing arrangements;
•the allocated costs incurred by the Investment Adviser in providing managerial assistance to those portfolio companies that request it;
•amounts payable to third parties relating to, or associated with, making or holding investments;
•the costs associated with subscriptions to data service, research-related subscriptions and expenses and quotation equipment and services used in making or holding investments;
•transfer agent and custodial fees;
•costs of hedging;
•commissions and other compensation payable to brokers or dealers;
•any fees payable to rating agencies;
•federal and state registration fees;
•U.S. federal, state and local taxes, including any excise taxes;
•independent director fees and expenses;
•costs of preparing financial statements and maintaining books and records, costs of preparing tax returns, costs of Sarbanes-Oxley Act compliance and attestation and costs of filing reports or other documents with the SEC (or other regulatory bodies), and other reporting and compliance costs, including registration fees, and the compensation of professionals responsible for the preparation or review of the foregoing;
•the costs of any reports, proxy statements or other notices to our unitholders (including printing and mailing costs), the costs of any unitholders’ meetings, and costs and expenses of preparation for the foregoing and related matters;
•the costs of specialty and custom software for monitoring risk, compliance and overall investments;
•any fidelity bond required by applicable law;
•any necessary insurance premiums;
•indemnification payments;
•any extraordinary expenses (such as litigation or indemnification payments or amounts payable pursuant to any agreement to provide indemnification entered into by the Company),
•direct fees and expenses associated with independent audits, agency, consulting and legal costs;
•cost of winding up; and
•all other expenses incurred by either the Administrator or us in connection with administering our business.
We reimburse the Administrator or its affiliates for amounts paid or costs borne that properly constitute Company expenses as set forth in the Administration Agreement or otherwise. We expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.
PORTFOLIO, INVESTMENT ACTIVITY AND RESULTS OF OPERATIONS
As of March 31,June 30, 2022, we had investments in 4775 portfolio companies across 1620 industries. Based on fair value as of March 31,June 30, 2022, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. Approximately 99.8% of our debt portfolio at fair value had an interest rate floor denoted in LIBOR or SOFR. The weighted average interest rate floor across our floating-rate portfolio was approximately 0.8% as of March 31, 2022. These floors allow us to mitigate (to a degree) any impact of spread widening on the valuation of our investments. As of March 31,June 30, 2022, our weighted average total
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yield of debt securities at amortized cost was 7.1%8.1%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of March 31,June 30, 2022.
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As of December 31, 2021, we had investments in 24 portfolio companies across 12 industries. Based on fair value as of December 31, 2021, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. Approximately 99.8% of our debt portfolio at fair value had a LIBOR floor. The weighted average LIBOR floor across our floating-rate portfolio was approximately 0.9% as of December 31, 2021. As of December 31, 2021, our weighted average total yield on debt securities at amortized cost was 6.8%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of December 31, 2021.

Our portfolio as of March 31,June 30, 2022 and December 31, 2021 is presented below:
As of
March 31, 2022December 31, 2021
CostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair Value
First Lien Debt$512,624 $512,718 96.4 %$355,939 $355,939 97.7 %
Second Lien Debt13,318 13,288 2.5 2,836 2,836 0.8 
Other Securities5,623 5,727 1.1 5,623 5,623 1.5 
Total$531,565 $531,733 100.0 %$364,398 $364,398 100.0 %

As of
June 30, 2022December 31, 2021
CostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair Value
First Lien Debt$818,400 $806,611 97.0 %$355,939 $355,939 97.7 %
Second Lien Debt16,772 16,406 2.0 2,836 2,836 0.8 
Other Securities8,697 8,892 1.1 5,623 5,623 1.5 
Total$843,869 $831,909 100.0 %$364,398 $364,398 100.0 %

Our investment activity is presented below (information presented herein is at amortized cost unless otherwise indicated):

As of and For the Three Months Ended March 31,June 30, 2022
New Investments Committed/Purchased
Gross Principal Balance(1)
$279,552337,610 
Less: Syndications— 
Net New Investments Committed/Purchased279,552$337,610 
Investments, at Cost
Investments, beginning of period364,398$531,565 
New investments purchased170,633325,154 
Net accretion of discount on investments363578 
Payment-in-kind270 
Net realized gain (loss) on investments104 
Investments sold or repaid(3,829)(13,802)
Investments, end of period531,565$843,869 
Principal amount of investments funded
First lien debt174,200$314,739 
Second lien debt14,219 
Other securities(2)
— 
Total$174,200328,958 
Amount of investments sold/fully repaid, at principal
First lien debt investments$(8,473)
Second lien debt investments— 
Total$(8,473)
Weighted average yield on debt and income producing investments, at cost(3)
7.18.1 %
Weighted average yield on debt and income producing investments, at fair value(3)
7.28.2 %
Number of portfolio companies4775 
Percentage of debt investments bearing a floating rate, at fair value100.0 %
Percentage of debt investments bearing a fixed rate, at fair value— %

(1)Includes new investment commitments, excluding sale/repayments and including unfunded investment commitments.
(2)Represents dollar amount of common equity funded.
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(3)Computed as (a) the annual stated spread, plus applicable Prime/LIBOR/SOFR or Interest rate floor, as applicable, plus the annual accretion of discounts, as applicable, on accruing debt securities, divided by (b) total debt investments (at fair value or cost, as applicable) included in such securities. Actual yields earned over the life of each investment could differ materially from the yields presented herein.
As part of the monitoring process, our Investment Adviser has developed risk policies pursuant to which it regularly assesses the risk profile of each of our debt investments. Our Investment Adviser has developed a classification system to group investments into four categories. The investments are evaluated regularly and assigned a category based on certain credit metrics. Our Investment Adviser’s ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any
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third-party assessment of any of our investments. Please see below for a description of the four categories of the Investment Adviser’s Internal Risk Rating system:
Category 1 — In the opinion of our Investment Adviser, investments in Category 1 involve the least amount of risk relative to our initial cost basis at the time of origination or acquisition. Category 1 investments performance is above our initial underwriting expectations and the business trends and risk factors are generally favorable, which may include the performance of the portfolio company, or the likelihood of a potential exit.
Category 2 — In the opinion of our Investment Adviser, investments in Category 2 involve a level of risk relative to our initial cost basis at the time of origination or acquisition. Category 2 investments are generally performing in line with our initial underwriting expectations and risk factors to ultimately recoup the cost of our principal investment are neutral to favorable. All new originated or acquired investments are initially included in Category 2.
Category 3 — In the opinion of our Investment Adviser, investments in Category 3 indicate that the risk to our ability to recoup the initial cost basis at the time of origination or acquisition has increased materially since the origination or acquisition of the investment, such as declining financial performance and non-compliance with debt covenants; however, principal and interest payments are not more than 120 days past due.
Category 4 — In the opinion of our Investment Adviser, investments in Category 4 involve a borrower performing substantially below expectations and indicate that the loan’s risk has increased substantially since origination or acquisition. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. For Category 4 investments, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis at the time of origination or acquisition upon exit.
The distribution of our portfolio on the Investment Adviser’s Internal Risk Rating System as of March 31,June 30, 2022 and December 31, 2021 was as follows:
 March 31, 2022December 31, 2021
Fair Value% of PortfolioNumber of Portfolio CompaniesFair Value% of PortfolioNumber of Portfolio Companies
Risk rating 1$— — %— $— — %— 
Risk rating 2531,733 100.0 47 364,398 100.0 24 
Risk rating 3— — — — — — 
Risk rating 4— — — — — — 
$531,733 100.0 %47$364,398 100.0 %24

 June 30, 2022December 31, 2021
Fair Value% of PortfolioNumber of Portfolio CompaniesFair Value% of PortfolioNumber of Portfolio Companies
Risk rating 1$— — %— $— — %— 
Risk rating 2831,909 100.0 75 364,398 100.0 24 
Risk rating 3— — — — — — 
Risk rating 4— — — — — — 
$831,909 100.0 %75$364,398 100.0 %24
CONSOLIDATED RESULTS OF OPERATIONS
The following table represents our operating results:
For the Three Months Ended March 31, 2022
Total investment income$8,009 
Less: Total expenses2,758 
Net investment income (loss) before taxes5,251 
Less: Excise tax expense1 
Net investment income (loss) after taxes5,250 
Net change in unrealized appreciation (depreciation)168 
Net increase (decrease) in Members' Capital resulting from operations$5,418 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Total investment income$13,095 $21,104 
Less: Total expenses4,935 7,693 
Net investment income (loss) before taxes8,160 13,411 
Less: Excise tax expense1 2 
Net investment income (loss) after taxes8,159 13,409 
Net change in unrealized appreciation (depreciation)(12,127)(11,959)
Net realized gain (loss)104 104 
Net increase (decrease) in Members' Capital resulting from operations$(3,864)$1,554 
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Investment Income
Investment income was as follows:
For the Three Months Ended March 31, 2022
Investment income:
Interest income$7,488 
Payment-in-kind interest income10 
Dividend income80 
Other income431 
Total Investment Income$8,009 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Investment income:
Interest income$12,384 $19,872 
Payment-in-kind interest income— 10 
Dividend income89 169 
Other income622 1,053 
Total Investment Income$13,095 $21,104 
For the three and six months ended March 31,June 30, 2022, total investment income was driven by our deployment of capital and invested balance of investments. The size of our investment portfolio at fair value was $531.7$831.9 million as of March 31,June 30, 2022 and, as of such date, all our debt investments were income-producing. 
Interest income on our debt investments is dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of March 31,June 30, 2022, all of our first and second lien debt investments were performing and current on their interest payments.
Expenses
Expenses were as follows:
For the Three Months Ended March 31, 2022
Expenses:
Interest and other financing expenses$1,589 
Management fees321 
Income based incentive fees489 
Capital gains incentive fees14 
Professional fees169 
Organization and offering costs42 
Directors' fees51 
General and other expenses83 
Total expenses$2,758 
Excise tax expense$1 
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Expenses:
Interest and other financing expenses$3,404 $4,993 
Management fees393 714 
Income based incentive fees756 1,245 
Capital gains incentive fees(14)— 
Professional fees283 452 
Organization and offering costs20 62 
Directors' fees52 103 
Administrative service fees5 5 
General and other expenses36 119 
Excise tax expense1 2 
Total expenses (including excise tax)$4,936 $7,695 
For the three and six months ended March 31,June 30, 2022, total expenses were primarily comprised of interest and other financing expenses of $1,589,$3,404 and $4,993, management fees of $321,$393 and $714, income based incentive fees of $489,$756 and $1,245, capital gains based incentive fees of $14,$(14) and $0, professional fees of $169,$283 and $452, directors’ fees of $51$52 and $103 and general and other expenses of $83.
The Company incurred approximately $220.5 million of average borrowings (at an average effective interest rate of 1.93%), during the three months ended March 31, 2022, related to borrowings for investments$36 and expenses.$119.
Professional fees include legal, audit, tax, valuation, and other professional fees incurred related to the management of the Company. General and other expenses include insurance, filing, research, subscriptions and other costs. Organization and offering costs include expenses incurred in our initial formation and our offering of Common Units.
Income Taxes, Including Excise Taxes
We intend to elect to be treated as a RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, we must, among other things, distribute to our unitholders in each taxable year generally at least 90% of the sum of our ICTI, as defined by the Code (without regard to the deduction for dividends paid), and net tax-exempt income for that taxable year. To maintain our tax treatment as a RIC, we, among other things, intend to make the requisite distributions to our unitholders, which generally relieve us from corporate-level U.S. federal income taxes. For the three and six months ended March 31,June 30, 2022, we incurred $1 and $2, respectively, of U.S. federal excise tax.

Net Realized Gain (Loss) and Unrealized Gain (Loss) on Investments

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For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Realized and unrealized gains (losses) on investment transactions:
Net realized gain (loss):
Non-controlled/non-affiliated investments$104 $104 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments(12,127)(11,959)
Net realized and unrealized gains (losses)$(12,023)$(11,855)

For the three and six months ended June 30, 2022, net realized gain on our investments was $104 and $104, respectively, primarily driven by the sale of debt investments in our portfolio.
We determine the fair value of our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. For the three and six months ended June 30, 2022, net change in unrealized loss on our investments of $12.1 million and $12.0 million, respectively, was primarily driven by the decreases of valuations of our debt and equity investments as a result of the volatile credit environment and spread widening in the primary and secondary markets.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We generate cash from the net proceeds of offerings of our Common Units, net borrowings from our credit facility,facilities, and from cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. We may also fund a portion of our investments through borrowings from banks and issuances of senior securities, including before we have fully invested the proceeds of the private offering of our ComonCommon Units. Our primary use of cash will be investments in portfolio companies, payments of our expenses and payment of cash distributions to our unitholders. As of March 31,June 30, 2022, we had two revolving credit facilities outstanding, as described in “Debt” below. We may also from time to time enter into new credit facilities, increase the size of existing credit facilities or issue new debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.
As of March 31,June 30, 2022, we had approximately $71.1$65.9 million of cash, which taken together with our approximately $175.0$98.0 million and $335.0$200.0 million of availability under the CBA Subscription Facility and Barclays Funding Facility (each as defined below) (subject to borrowing base availability), respectively, and our approximately $715.0$655.0 million of uncalled capital commitments to purchase Common Units, or capital commitments, we expect to be sufficient for our investing activities and to conduct our operations in the near term. As of June 30, 2022, we believed we had adequate financial resources to satisfy the unfunded portfolio company commitments.
Unregistered SalesBarclays Funding Facility
On March 7, 2022, T Series SPV LLC entered into a Credit and Security Agreement (the “Credit and Security Agreement”) with T Series SPV LLC, as the borrower, the lenders party thereto (the “Lenders”), Barclays Bank PLC (“Barclays”), as the administrative agent for the Lenders, the Company, as the servicer and retention provider, and State Street Bank & Trust Company, as collateral administrator, collateral agent and securities intermediary, pursuant to which the Lenders have agreed to extend credit to T Series SPV LLC in an aggregate principal amount up to $400,000 at any one time outstanding, with up to an additional $350,000 available pursuant to an accordion feature (the “Barclays Funding Facility”).
The Barclays Funding Facility is a revolving funding facility with a reinvestment period ending March 7, 2025 and a final maturity date of EquityMarch 7, 2027. Advances under the Barclays Funding Facility are available in US dollars, British Pounds, Euros or Canadian dollars and such advances bear interest at a rate equal to an applicable margin plus, at T Series SPV LLC’s option, either (a) a rate based on Term SOFR, Daily Simple SONIA (or if Daily Simple SONIA is not available the Central Bank Rate), EURIBOR or CDOR, as applicable (or, if such rate is not available, a benchmark replacement) (each as defined in the Credit and Securities Agreement) or (b) a “base rate” (which with respect to US dollars is a rate per annum equal to the greater of a prime rate and the federal funds rate plus 0.50%; with respect to Canadian dollars is a rate per annum equal to the greater of the PRIMCAN Index and CDOR plus 1.0% and with respect to British Pounds and Euros is equal to the annual rate of interest announced from time to time by Barclays (or an affiliate thereof) as being its reference rate then in effect for determining interest rates on commercial loans made by it in the United Kingdom (with respect to GBP advances) or the Euro Zone (with respect to Euro advances), as applicable). The applicable margin with respect to advances under the Barclays Funding Facility generally ranges between 1.90% and 2.65% (depending on the type of assets such advances relate to).
The obligations of T Series SPV LLC under the Barclays Funding Facility are secured by all of the assets held by T Series SPV LLC (the “Collateral”), including certain corporate loans and corporate debt securities that the Company has originated or acquired, or will originate or acquire, from time to time (the “Portfolio Investments”), to be sold, contributed or otherwise transferred by the Company to T Series SPV LLC pursuant to the terms of the Sale and Contribution Agreement dated as of March 7, 2022 (the “Sale and Contribution Agreement” and, together with the Credit and Security Agreement, the “Agreements”) between the Company and T Series SPV LLC, entered into in connection with the Barclays Funding Facility. Under the Agreements, the Company and T Series SPV LLC, as applicable, have made customary representations and warranties regarding the Portfolio Investments, as well as their businesses, and are required to comply with various covenants, servicing procedures, limitations on disposition of Portfolio Investments, reporting requirements and other customary requirements for similar revolving funding facilities. As of March 31,June 30, 2022, we had received aggregate capital commitmentsthe Company was in compliance with all covenants and other requirements of $1,000.0 million.the Barclays Funding Facility.
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The summary information of the Barclays Funding Facility is as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Borrowing interest expense$1,003 $1,115 
Facility unused commitment fees335 451 
Amortization of deferred financing costs95 121 
Total$1,433 $1,687 
Weighted average interest rate (excluding unused fees and financing costs)2.94 %2.88 %
Weighted average outstanding balance$135,110 $120,000 

For the three months ended MarchJune 30, 2022, the Company borrowed $135,000 and repaid $0 under the Barclays Funding Facility. For the six months ended June 30, 2022, the Company borrowed $200,000 and repaid $0 under the Barclays Funding Facility. As of June 30, 2022, the Company had $200,000 of available capacity under the Barclays Funding Facility (subject to borrowing base restrictions).
The combined weighted average interest rate of the aggregate borrowings outstanding for the three months ended June 30, 2022 was 2.62%. The combined weighted average debt of the aggregate borrowings outstanding for the three months ended June 30, 2022 was $390,159.

The combined weighted average interest rate of the aggregate borrowings outstanding for the six months ended June 30, 2022 was 2.08%. The combined weighted average debt of the aggregate borrowings outstanding for the six months ended June 30, 2022 was $348,887.
The Company’s outstanding debt obligations were as follows:
June 30, 2022December 31, 2021
Aggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused Portion
CBA Subscription Facility$425,000 $327,000 $98,000 $325,000 $214,000 $111,000 
Barclays Funding Facility400,000 200,000 200,000 — — — 
Total$825,000 $527,000 $298,000 $325,000 $214,000 $111,000 
(7)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.
As of June 30, 2022 and December 31, 2021, the Company had $300,794 and $193,137 of unfunded commitments to fund delayed draw and revolving senior secured loans, respectively.
As of June 30, 2022 we issued aand December 31, 2021, the Company had $1,000,010 and $1,000,010 in total capital call to our unitholders. As a result,commitments from common unitholders, respectively, of which $655,000 and $765,000 were unfunded, respectively.
(8) Members’ Capital
The following table shows the components of distributable earnings as shown on the Consolidated Statements of Financial Condition:

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As of
June 30, 2022December 31, 2021
Net distributable earnings (accumulated losses), beginning of period$(269)$— 
Net investment income (loss)13,409 135 
Net realized gain (loss)104 — 
Net unrealized appreciation (depreciation)(11,959)— 
Dividends declared(12,806)(415)
Tax reclassification of members' capital— 11 
Net distributable earnings (accumulated losses), end of period$(11,521)$(269)
The following table summarizes the total Common Unitsunits issued and proceeds received related tofrom the Company’s capital drawdowns delivered pursuant to the Subscription Agreements were as follows:for six months ended June 30, 2022:
Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
Total2,512,563 $50,000 

Distributions and Distribution Reinvestment
Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
May 12, 20222,952,75660,000 
Total5,465,319$110,000 
The following table summarizes ourthe Company’s distributions declared and payable for the threesix months ended March 31,June 30, 2022:
Date DeclaredRecord DatePayment DatePer Unit Amount
Distribution Yield(1)
Total Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 8.5 %$4,942 
Total Distributions$0.42 $4,942 

(1)    Distribution yield (annualized) is calculated by dividing the declared distribution by the weighted average of the net asset value at the beginning of the quarter, the capital called and distribution reinvested during the quarter and annualizing over 4 quarterly periods.
Date DeclaredRecord DatePayment DatePer Unit AmountTotal Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 $4,942 
June 24, 2022June 24, 2022July 25, 20220.45 7,864 
Total Distributions$0.87 $12,806 
We haveThe Company adopted an “opt out” distribution reinvestment plan (“DRIP”). As a result, if our Boardunless unitholders elect to “opt out” of Directors authorizes, and we declare, a cash distribution, ourthe DRIP, unitholders will have their cash dividends or distributions automatically reinvested in additional units of same class of units to which the distribution relates unless they specifically “opt out” of the DRIP and elect toCommon Units, rather than receiving cash. Unitholders who receive distributions in cash.the form of Common Units will generally be subject to the same U.S. federal, state and local tax consequences as if they received cash distributions; however, those unitholders will not receive cash with which to pay any applicable taxes. Units issued under the DRIP will not reduce a unitholder’s outstanding capital commitment.
The following table summarizes the amounts received and units issued to unitholders who have participated in the DRIP for the threesix months ended MarchJune 30, 2022:
Payment DateDRIP Units IssuedDRIP Units Value
January 24, 202220,652 $414 
April 26, 2022244,829 4,942 
Total265,481 $5,356 
(9)Earnings Per Unit
The following table sets forth the computation of basic and diluted earnings per common unit:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Net increase in Members' Capital from operations$(3,864)$1,554 
Weighted average Common Units outstanding16,080,203 13,947,111 
Basic and diluted earnings per Common Unit$(0.24)$0.11 
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(10)Consolidated Financial Highlights
The following are the financial highlights (dollar amounts in thousands, except per unit amounts):
For the Six Months Ended June 30, 2022
Per Unit Data:(1)
Net asset value, beginning of period$19.98
Net investment income (loss)0.96
Net unrealized and realized gain (loss)(2)
(0.69)
Net increase (decrease) in net assets resulting from operations0.27
Distributions declared(0.87)
Issuance of common units0.01
Total increase (decrease) in net assets(0.59)
Net asset value, end of period$19.39
Units outstanding, end of period17,477,827
Total return based on net asset value(3)
1.36%
Ratio/Supplemental Data:
Members' Capital, end of period$338,834
Weighted average units outstanding13,947,111
Ratio of total expenses to average Members’ Capital(4)
4.86 %
Ratio of net investment income to average Members’ Capital(4)
9.71 %
Asset coverage ratio164.29 %
Portfolio turnover rate3.12 %
(1)The per unit data was derived by using the weighted average units outstanding during the period, except otherwise noted.
(2)The amount shown does not correspond with the aggregate amount for the period as it includes the effect of the timing of capital transactions.
(3)Total return (not annualized) is calculated assuming a purchase of common units at the opening of the first day of the period and a sale on the closing of the last
business day of the period. Distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s
distribution reinvestment plan.
(4)Amounts are annualized except for incentive fees, and organization and offering costs.
(11)Subsequent Events
Subsequent events have been evaluated through the date the consolidated financial statements were issued. There have been no subsequent events that require recognition or disclosure through the date the consolidated financial statements were issued, except as disclosed below.
On July 6, 2022, the Company delivered a capital drawdown notice relating to the sale of approximately 5,900,462 of the Company’s common units, for an aggregate offering price of $115 million. The sale closed on July 14, 2022.
On July 19, 2022, the Company entered into that certain Second Amendment to Revolving Credit Agreement (the “Second Amendment”), amending that certain Revolving Credit Agreement, dated November 5, 2021 (as amended by that certain First Amendment to Revolving Credit Agreement, dated as of January 25, 2022, and as further amended, restated, amended and restated, supplemented or otherwise modified, including by the Second Amendment, the “Credit Agreement”) by and among the Company, as Borrower and Commonwealth Bank of Australia as Administrative Agent under the Credit Agreement, as Lead Arranger, as the Letter of Credit Issuer and as a Lender. The Second Amendment amends the Credit Agreement to, among other things, move to SOFR as the interest rate benchmark rate and include a short-term increase in the Maximum Commitment (as such term is defined in the Credit Agreement) in the amount of $100,000 for an aggregate Maximum Commitment of $425,000. The temporary increase maturity date is January 25, 2023. On such date, the Maximum Commitment will revert back to the initial $325,000.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (dollar amounts in thousands, except per unit amounts, unless otherwise indicated)

In this Quarterly Report on Form 10-Q, or this “Report”, except where context suggests otherwise, the terms “Company,” “we,” “our” or “us” refers to T Series Middle Market Loan Fund LLC and its consolidated subsidiaries. This Report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and you should not place undue reliance on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and opinions and our assumptions. For the avoidance of doubt, we are not a subsidiary of, or consolidated with, Morgan Stanley. Morgan Stanley has no history of financially supporting any business development companies (“BDCs”) on the MS Private Credit platform, even during periods of financial distress.Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “potential”, “predicts” 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 our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:
•our future operating results;
•our business prospects and the prospects of our portfolio companies;
•risk associated with possible disruptions in our operations or the economy generally, including disruptions from the impact of the current Coronavirus (also referred to as “COVID-19” or “Coronavirus”) pandemic;
•changes in the general interest rate environment;
•general economic, political and industry trends and other external factors, including uncertainty surrounding the financial and political stability of the United States and other countries;
•the effect of an inflationary economic environment on our portfolio companies, our financial condition and our results of operations;
•our contractual arrangements and relationships with third parties;
•actual and potential conflicts of interest with MS Capital Partners Adviser Inc., our investment adviser (the “Adviser” or “Investment Adviser”), and its affiliates;
•the dependence of our future success on the general economy and its effect on the industries in which we invest;
•the ability of our portfolio companies to achieve their objectives, including as a result of the Coronavirus pandemic;
•the use of borrowed money to finance a portion of our investments;
•the adequacy of our financing sources and working capital;
•the timing and amount of cash flows, if any, from the operations of our portfolio companies;
•the ability of our Investment Adviser to locate suitable investments for us and to monitor and administer our investments;
•the ability of our Investment Adviser and its affiliates to attract and retain highly talented professionals;
•our ability to qualify and maintain our qualification as a BDC, and as a regulated investment company (a “RIC”), under the Internal Revenue Code of 1986, as amended (the “Code”);
•the impact on our business of U.S. and international financial reform legislation, rules and regulations;
•currency fluctuations, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars, could adversely affect the results of our investments in foreign companies;
•the effect of changes in tax laws and regulations and interpretations thereof; and
•the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in this Report.
The information contained in this section should be read in conjunction with “Item 1. Consolidated Financial Statements.” Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved. This discussion contains forward-looking statements, which relate to future events or our future performance or financial condition and involves numerous risks and uncertainties, including, but not limited to, those set forth in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022:2021, or the Form 10-K, and Part II, Item 1A of and elsewhere in this Report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Report. Moreover, we assume no duty and do not undertake to update the forward-looking statements. You are advised to consult any additional disclosures that we make directly to you or through reports that we have filed or in the future file with the Securities and Exchange Commission, (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Payment DateDRIP Units IssuedDRIP Units Value
January 24, 202220,652 $414 
Total20,652 $414 
You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.
Debt
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OVERVIEW

We are a non-diversified externally managed specialty finance company focused on lending to middle-market companies. We have elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to elect to be treated, and intend to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. We are not a subsidiary of, or consolidated with, Morgan Stanley.
Our investment objective is to achieve attractive risk-adjusted returns via current income and, to a lesser extent, capital appreciation by investing primarily in directly originated senior secured term loans issued by U.S. middle-market companies backed by financial sponsors. For the purposes of this report, “middle-market companies” refers to companies that, in general, generate annual EBITDA in the range of approximately $15 million to $150 million, which we believe is a useful proxy for cash flow although not all of our portfolio companies will meet this criteria.
We invest primarily in directly originated senior secured term loans issued by U.S middle-market companies backed by financial sponsors, including first lien senior secured term loans, second lien senior secured term loans, higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases. Typical middle-market senior loans may be issued by middle-market companies in the context of leveraged buyouts (“LBOs”), acquisitions, debt refinancings recapitalizations, and other similar transactions. We generally expect our debt investments to have a stated term of five to eight years and typically bear interest at a floating rate usually determined on the basis of a benchmark (historically, the London Inter-bank Offered Rate (“LIBOR”) and the Secured Overnight Financing Rate (“SOFR” or “S”) and, prospectively, alternative reference rates).
We generate revenues primarily in the form of interest income from investments we hold. In addition, we generate income from dividends or distributions of income on any direct equity investments, capital gains on the sale of loans and equity securities and various other loan origination and other fees, including commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
Pursuant to exemptive relief from the SEC granted to our Adviser (as amended, the “Order”) we are able to enter into certain negotiated co-investment transactions alongside certain other Affiliated Investment Accounts (as defined in the Order) in a manner consistent with our investment objective, positions, policies, strategies, and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with the Order. Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our eligible directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our unitholders and do not involve overreaching in respect of us or our unitholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our unitholders and is consistent with our investment objective and strategies.
Recent Market Developments
Uncertainty as to the probability of, and length and depth of a global recession, and the impact of new variants of the Coronavirus that have emerged in the United States and globally, has created stress on the market and could affect our portfolio companies. In addition, government spending, government policies, including recent increases in certain interest rates by the U.S. Federal Reserve, high oil prices and disruptions in supply chains in the United States and elsewhere, in conjunction with other factors, including those described above, have led and could continue to lead to inflationary economic environments that could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving market environment including as it relates to the Coronavirus pandemic and guidance from U.S. and international public health authorities. In these circumstances, there may be developments outside our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impacts of the developments described above on our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment, and we and our Investment Adviser continue to be fully operational.
KEY COMPONENTS OF OUR RESULTS OF OPERATIONS
Investments
Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt available to middle-market companies, the general economic environment and the competitive environment for the type of investments we make.
Revenue
We generate revenue primarily in the form of interest income on debt investments we hold. In addition, we generate income from dividends or distributions on income on direct equity investments, capital gains on the sales of loans and equity securities and various loan origination and other fees. Our debt investments generally have a stated term of five to eight years and typically to bear interest at a floating rate usually determined on the basis of a benchmark such as LIBOR or SOFR. Interest on these debt investments is generally paid quarterly. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we may receive repayments of some of our debt investments prior to their scheduled maturity date.
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The frequency or volume of these repayments is expected to fluctuate significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
Expenses
Our primary operating expenses include the payment of: (i) investment advisory fees, including base management fees and incentive fees, to our Investment Adviser pursuant to the Investment Advisory Agreement between us and our Investment Adviser (the “Investment Advisory Agreement”); (ii) costs and other expenses and our allocable portion of overhead incurred by our Administrator in performing its administrative obligations wereunder the Administration Agreement between us and our Administrator (the “Administration Agreement”); and (iii) other operating expenses as follows:detailed below:
•
March 31, 2022December 31, 2021
Aggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused Portion
CBA Subscription Facility$425,000 $250,000 $175,000 $325,000 $214,000 $111,000 
Barclays Funding Facility400,000 65,000 335,000 — — — 
Total$825,000 $315,000 $510,000 $325,000 $214,000 $111,000 
initial organization costs and offering costs incurred prior to the filing of our election to be regulated as a BDC;
•costs associated with any private offerings of our Common Units, and any other securities offerings;
•calculating individual asset values and our net asset value (including the cost and expenses of any third-party valuation services);
•out of pocket expenses, including travel expenses, incurred by the Investment Adviser, or members of its investment team or payable to third parties, performing due diligence on prospective portfolio companies and monitoring actual portfolio companies and, if necessary, enforcing our rights;
•base management fee and any incentive fee payable under the Investment Advisory Agreement;
•certain costs and expenses relating to distributions paid by us;
•administration fees payable under the Administration Agreement and any sub-administration agreements, including related expenses;
•debt service and other costs of borrowings, senior securities or other financing arrangements;
•the allocated costs incurred by the Investment Adviser in providing managerial assistance to those portfolio companies that request it;
•amounts payable to third parties relating to, or associated with, making or holding investments;
•the costs associated with subscriptions to data service, research-related subscriptions and expenses and quotation equipment and services used in making or holding investments;
•transfer agent and custodial fees;
•costs of hedging;
•commissions and other compensation payable to brokers or dealers;
•any fees payable to rating agencies;
•federal and state registration fees;
•U.S. federal, state and local taxes, including any excise taxes;
•independent director fees and expenses;
•costs of preparing financial statements and maintaining books and records, costs of preparing tax returns, costs of Sarbanes-Oxley Act compliance and attestation and costs of filing reports or other documents with the SEC (or other regulatory bodies), and other reporting and compliance costs, including registration fees, and the compensation of professionals responsible for the preparation or review of the foregoing;
•the costs of any reports, proxy statements or other notices to our unitholders (including printing and mailing costs), the costs of any unitholders’ meetings, and costs and expenses of preparation for the foregoing and related matters;
•the costs of specialty and custom software for monitoring risk, compliance and overall investments;
•any fidelity bond required by applicable law;
•any necessary insurance premiums;
•indemnification payments;
•any extraordinary expenses (such as litigation or indemnification payments or amounts payable pursuant to any agreement to provide indemnification entered into by the Company),
•direct fees and expenses associated with independent audits, agency, consulting and legal costs;
•cost of winding up; and
•all other expenses incurred by either the Administrator or us in connection with administering our business.
We reimburse the Administrator or its affiliates for amounts paid or costs borne that properly constitute Company expenses as set forth in the Administration Agreement or otherwise. We expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.
PORTFOLIO, INVESTMENT ACTIVITY AND RESULTS OF OPERATIONS
As of June 30, 2022, we had investments in 75 portfolio companies across 20 industries. Based on fair value as of June 30, 2022, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. As of June 30, 2022, our weighted average total yield of debt securities at amortized cost was 8.1%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of June 30, 2022.
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CBA Subscription Facility
On November 5,As of December 31, 2021, we enteredhad investments in 24 portfolio companies across 12 industries. Based on fair value as of December 31, 2021, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. Approximately 99.8% of our debt portfolio at fair value had a LIBOR floor. The weighted average LIBOR floor across our floating-rate portfolio was approximately 0.9% as of December 31, 2021. As of December 31, 2021, our weighted average total yield on debt securities at amortized cost was 6.8%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of December 31, 2021.

Our portfolio as of June 30, 2022 and December 31, 2021 is presented below:
As of
June 30, 2022December 31, 2021
CostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair Value
First Lien Debt$818,400 $806,611 97.0 %$355,939 $355,939 97.7 %
Second Lien Debt16,772 16,406 2.0 2,836 2,836 0.8 
Other Securities8,697 8,892 1.1 5,623 5,623 1.5 
Total$843,869 $831,909 100.0 %$364,398 $364,398 100.0 %

Our investment activity is presented below (information presented herein is at amortized cost unless otherwise indicated):

As of and For the Three Months Ended June 30, 2022
New Investments Committed/Purchased
Gross Principal Balance(1)
$337,610 
Less: Syndications— 
Net New Investments Committed/Purchased$337,610 
Investments, at Cost
Investments, beginning of period$531,565 
New investments purchased325,154 
Net accretion of discount on investments578 
Payment-in-kind270 
Net realized gain (loss) on investments104 
Investments sold or repaid(13,802)
Investments, end of period$843,869 
Principal amount of investments funded
First lien debt$314,739 
Second lien debt14,219 
Other securities(2)
— 
Total$328,958 
Amount of investments sold/fully repaid, at principal
First lien debt investments$(8,473)
Second lien debt investments— 
Total$(8,473)
Weighted average yield on debt and income producing investments, at cost(3)
8.1 %
Weighted average yield on debt and income producing investments, at fair value(3)
8.2 %
Number of portfolio companies75 
Percentage of debt investments bearing a floating rate, at fair value100.0 %
Percentage of debt investments bearing a fixed rate, at fair value— %

(1)Includes new investment commitments, excluding sale/repayments and including unfunded investment commitments.
(2)Represents dollar amount of common equity funded.
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(3)Computed as (a) the annual stated spread, plus applicable Prime/LIBOR/SOFR or Interest rate floor, as applicable, plus the annual accretion of discounts, as applicable, on accruing debt securities, divided by (b) total debt investments (at fair value or cost, as applicable) included in such securities. Actual yields earned over the life of each investment could differ materially from the yields presented herein.
As part of the monitoring process, our Investment Adviser has developed risk policies pursuant to which it regularly assesses the risk profile of each of our debt investments. Our Investment Adviser has developed a classification system to group investments into four categories. The investments are evaluated regularly and assigned a Revolving Credit Agreementcategory based on certain credit metrics. Our Investment Adviser’s ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments. Please see below for a description of the four categories of the Investment Adviser’s Internal Risk Rating system:
Category 1 — In the opinion of our Investment Adviser, investments in Category 1 involve the least amount of risk relative to our initial cost basis at the time of origination or acquisition. Category 1 investments performance is above our initial underwriting expectations and the business trends and risk factors are generally favorable, which may include the performance of the portfolio company, or the likelihood of a potential exit.
Category 2 — In the opinion of our Investment Adviser, investments in Category 2 involve a level of risk relative to our initial cost basis at the time of origination or acquisition. Category 2 investments are generally performing in line with Commonwealth Bankour initial underwriting expectations and risk factors to ultimately recoup the cost of Australiaour principal investment are neutral to favorable. All new originated or acquired investments are initially included in Category 2.
Category 3 — In the opinion of our Investment Adviser, investments in Category 3 indicate that the risk to our ability to recoup the initial cost basis at the time of origination or acquisition has increased materially since the origination or acquisition of the investment, such as administrative agent, lead arranger, letterdeclining financial performance and non-compliance with debt covenants; however, principal and interest payments are not more than 120 days past due.
Category 4 — In the opinion of our Investment Adviser, investments in Category 4 involve a borrower performing substantially below expectations and indicate that the loan’s risk has increased substantially since origination or acquisition. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. For Category 4 investments, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis at the time of origination or acquisition upon exit.
The distribution of our portfolio on the Investment Adviser’s Internal Risk Rating System as of June 30, 2022 and December 31, 2021 was as follows:

 June 30, 2022December 31, 2021
Fair Value% of PortfolioNumber of Portfolio CompaniesFair Value% of PortfolioNumber of Portfolio Companies
Risk rating 1$— — %— $— — %— 
Risk rating 2831,909 100.0 75 364,398 100.0 24 
Risk rating 3— — — — — — 
Risk rating 4— — — — — — 
$831,909 100.0 %75$364,398 100.0 %24
CONSOLIDATED RESULTS OF OPERATIONS
The following table represents our operating results:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Total investment income$13,095 $21,104 
Less: Total expenses4,935 7,693 
Net investment income (loss) before taxes8,160 13,411 
Less: Excise tax expense1 2 
Net investment income (loss) after taxes8,159 13,409 
Net change in unrealized appreciation (depreciation)(12,127)(11,959)
Net realized gain (loss)104 104 
Net increase (decrease) in Members' Capital resulting from operations$(3,864)$1,554 
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Investment Income
Investment income was as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Investment income:
Interest income$12,384 $19,872 
Payment-in-kind interest income— 10 
Dividend income89 169 
Other income622 1,053 
Total Investment Income$13,095 $21,104 
For the three and six months ended June 30, 2022, total investment income was driven by our deployment of capital and invested balance of investments. The size of our investment portfolio at fair value was $831.9 million as of June 30, 2022 and, as of such date, all our debt investments were income-producing. 
Interest income on our debt investments is dependent on the composition and credit issuerquality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of June 30, 2022, all of our first and second lien debt investments were performing and current on their interest payments.
Expenses
Expenses were as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Expenses:
Interest and other financing expenses$3,404 $4,993 
Management fees393 714 
Income based incentive fees756 1,245 
Capital gains incentive fees(14)— 
Professional fees283 452 
Organization and offering costs20 62 
Directors' fees52 103 
Administrative service fees5 5 
General and other expenses36 119 
Excise tax expense1 2 
Total expenses (including excise tax)$4,936 $7,695 
For the three and six months ended June 30, 2022, total expenses were primarily comprised of interest and other financing expenses of $3,404 and $4,993, management fees of $393 and $714, income based incentive fees of $756 and $1,245, capital gains based incentive fees of $(14) and $0, professional fees of $283 and $452, directors’ fees of $52 and $103 and general and other expenses of $36 and $119.
Professional fees include legal, audit, tax, valuation, and other professional fees incurred related to the management of the Company. General and other expenses include insurance, filing, research, subscriptions and other costs. Organization and offering costs include expenses incurred in our initial formation and our offering of Common Units.
Income Taxes, Including Excise Taxes
We intend to elect to be treated as a lender,RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, we must, among other things, distribute to our unitholders in each taxable year generally at least 90% of the sum of our ICTI, as defined by the Code (without regard to the deduction for dividends paid), and net tax-exempt income for that taxable year. To maintain our tax treatment as a RIC, we, among other things, intend to make the requisite distributions to our unitholders, which generally relieve us from corporate-level U.S. federal income taxes. For the three and six months ended June 30, 2022, we incurred $1 and $2, respectively, of U.S. federal excise tax.

Net Realized Gain (Loss) and Unrealized Gain (Loss) on Investments

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For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Realized and unrealized gains (losses) on investment transactions:
Net realized gain (loss):
Non-controlled/non-affiliated investments$104 $104 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments(12,127)(11,959)
Net realized and unrealized gains (losses)$(12,023)$(11,855)

For the three and six months ended June 30, 2022, net realized gain on our investments was subsequently amended$104 and $104, respectively, primarily driven by the sale of debt investments in our portfolio.
We determine the fair value of our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. For the three and six months ended June 30, 2022, net change in unrealized loss on January 25, 2022 (as amended,our investments of $12.1 million and $12.0 million, respectively, was primarily driven by the “CBA Subscription Facility”). The CBA Subscription Facility allows us to borrow up to $425.0 million at any one time outstanding, includingdecreases of valuations of our debt and equity investments as a current $100.0 million temporary increaseresult of the volatile credit environment and spread widening in the facility that will expire on July 25, 2022 at which point $325.0 millionprimary and secondary markets.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We generate cash from the net proceeds of offerings of our Common Units, net borrowings from our credit facilities, and from cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. We may also fund a portion of our investments through borrowings from banks and issuances of senior securities, including before we have fully invested the proceeds of the private offering of our Common Units. Our primary use of cash will be available underinvestments in portfolio companies, payments of our expenses and payment of cash distributions to our unitholders. As of June 30, 2022, we had two revolving credit facilities outstanding, as described in “Debt” below. We may also from time to time enter into new credit facilities, increase the facility. The facility is availablesize of existing credit facilities or issue new debt securities. Any such incurrence or issuance would be subject to certainprevailing market conditions, our liquidity requirements, contractual and regulatory restrictions includingand other factors.
As of June 30, 2022, we had approximately $65.9 million of cash, which taken together with our approximately $98.0 million and $200.0 million of availability under the borrowing base, which is based on unused capital commitments. The amount of permissible borrowings under the CBA Subscription Facility may be increased to up to an aggregate amount of $500.0 million with the consent of the lenders. The CBA Subscriptionand Barclays Funding Facility has a maturity date of November 5, 2023, which may be extended for an additional term of up to 364 days subject to the terms set forth in the CBA Subscription Facility.
The CBA Subscription Facility bears interest at a rate of: (i) with respect to Eurocurrency Rate Loans (as(each as defined in the CBA Subscription Facility), the greater of (x) the rate designated with respect to the currency in which the loan is denominated, and (y) 0%, plus 1.65%; (ii) with respect to RFR Loans (as defined in the CBA Subscription Facility) in Sterling, SONIA, plus 1.70%, plus a SONIA spread adjustment set forth in the CBA Subscription Facility; (iii) with respect to RFR Loans (as defined in the CBA Subscription Facility) in Dollars or Terms SOFR Loans, SOFR or Term SOFR as applicable, plus 1.65%, plus the SOFR spread adjustment set forth in the CBA Subscription Facility; and (iii) with respect to Reference Rate Loans (as defined in the CBA Subscription Facility), (x) the greatest of (1) the prime rate, (2) the federal funds rate plus 0.50%, and (y) Term SOFR plus 1.00%, provided that the reference rate will not be less than 2.00%, plus (y) 0.65%, each as calculated in accordance with the CBA Subscription Facility. The CBA Subscription Facility is secured by the unfunded investor commitments to purchase our Common Units.
For the three months ended March 31, 2022, we borrowed $151.5 million and repaid $115.5 million under the CBA Subscription Facility. As of March 31, 2022, we had $250.0 million outstanding under the CBA Subscription Facility. As of March 31, 2022, we had $175.0 million of available capacity under the CBA Subscription Facilitybelow) (subject to borrowing base restrictions).
availability), respectively, and our approximately $655.0 million of uncalled capital commitments to purchase Common Units, or capital commitments, we expect to be sufficient for our investing activities and to conduct our operations in the near term. As of March 31,June 30, 2022, we were in compliance with all covenants and other requirements ofbelieved we had adequate financial resources to satisfy the CBA Subscription Facility, as well as the leverage restrictions contained in the 1940 Act.unfunded portfolio company commitments.
Barclays Funding Facility
On March 7, 2022, T Series SPV LLC entered into a Credit and Security Agreement (the “Credit and Security Agreement”) with T Series SPV LLC, as the borrower, the lenders party thereto (the “Lenders”), Barclays Bank PLC (“Barclays”), as the administrative agent for the Lenders, the Company, as the servicer and retention provider, and State Street Bank & Trust Company, as collateral administrator, collateral agent and securities intermediary, pursuant to which the Lenders have agreed to extend credit to T Series SPV LLC in an aggregate principal amount up to $400.0 million$400,000 at any one time outstanding, with up to an additional $350.00 million$350,000 available pursuant to an accordion feature (the “Barclays Funding Facility”).
The Barclays Funding Facility is a revolving funding facility with a reinvestment period ending March 7, 2025 and a final maturity date of March 7, 2027. Advances under the Barclays Funding Facility are available in US dollars, British Pounds, Euros or Canadian dollars and such advances bear interest at a rate equal to an applicable margin plus, at T Series SPV LLC’s option, either (a) a rate based on Term SOFR, Daily Simple SONIA (or if Daily Simple SONIA is not available the Central Bank Rate), EURIBOR or CDOR, as applicable (or, if such rate is not available, a benchmark replacement) (each as defined in the Credit and Securities Agreement) or (b) a “base rate” (which with respect to US dollars is a rate per annum equal to the greater of a prime rate and the federal funds rate plus 0.50%; with respect to Canadian dollars is a rate per annum equal to the greater of the PRIMCAN Index and CDOR plus 1.0% and with respect to British Pounds and Euros is equal to the annual rate of interest announced from time to time by Barclays (or an affiliate thereof) as being its reference rate then in effect for determining interest rates on commercial loans made by it in the United Kingdom (with respect to GBP advances) or the Euro Zone (with respect to Euro advances), as applicable). The applicable margin with respect to advances under the Barclays Funding Facility generally ranges between 1.90% and 2.65% (depending on the type of assets such advances relate to).
The obligations of T Series SPV LLC under the Barclays Funding Facility are secured by all of the assets held by T Series SPV LLC (the “Collateral”), including certain corporate loans and corporate debt securities that the Company has originated or acquired, or will originate or acquire, from time to time (the “Portfolio Investments”), to be sold, contributed or otherwise transferred by the Company to T Series SPV LLC pursuant to the terms of the Sale and Contribution Agreement dated as of March 7, 2022 (the “Sale and Contribution Agreement” and, together with the Credit and Security Agreement, the “Agreements”) between the Company and T Series SPV LLC, entered into in connection with the Barclays Funding Facility. Under the Agreements, the Company and T Series SPV LLC, as applicable, have made customary representations and warranties regarding the Portfolio Investments, as well as their businesses, and are required to comply with various covenants, servicing procedures, limitations on disposition of Portfolio Investments, reporting requirements and other customary requirements for similar revolving funding facilities. As of June 30, 2022, the Company was in compliance with all covenants and other requirements of the Barclays Funding Facility.
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The summary information of the Barclays Funding Facility is as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Borrowing interest expense$1,003 $1,115 
Facility unused commitment fees335 451 
Amortization of deferred financing costs95 121 
Total$1,433 $1,687 
Weighted average interest rate (excluding unused fees and financing costs)2.94 %2.88 %
Weighted average outstanding balance$135,110 $120,000 

For the three months ended March 31,June 30, 2022, wethe Company borrowed $65.0 million$135,000 and repaid $— million$0 under the Barclays Funding Facility. For the six months ended June 30, 2022, the Company borrowed $200,000 and repaid $0 under the Barclays Funding Facility. As of March 31,June 30, 2022, wethe Company had $65.0 million outstanding under the Barclays Funding Facility. As of March 31, 2022, we had $335.0 million$200,000 of available capacity under the Barclays Funding Facility (subject to borrowing base restrictions).
The combined weighted average interest rate of the aggregate borrowings outstanding for the three months ended June 30, 2022 was 2.62%. The combined weighted average debt of the aggregate borrowings outstanding for the three months ended June 30, 2022 was $390,159.

The combined weighted average interest rate of the aggregate borrowings outstanding for the six months ended June 30, 2022 was 2.08%. The combined weighted average debt of the aggregate borrowings outstanding for the six months ended June 30, 2022 was $348,887.
The Company’s outstanding debt obligations were as follows:
June 30, 2022December 31, 2021
Aggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused Portion
CBA Subscription Facility$425,000 $327,000 $98,000 $325,000 $214,000 $111,000 
Barclays Funding Facility400,000 200,000 200,000 — — — 
Total$825,000 $527,000 $298,000 $325,000 $214,000 $111,000 
(7)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.
As of MarchJune 30, 2022 and December 31, 2021, the Company had $300,794 and $193,137 of unfunded commitments to fund delayed draw and revolving senior secured loans, respectively.
As of June 30, 2022 and December 31, 2021, the Company had $1,000,010 and $1,000,010 in total capital commitments from common unitholders, respectively, of which $655,000 and $765,000 were unfunded, respectively.
(8) Members’ Capital
The following table shows the components of distributable earnings as shown on the Consolidated Statements of Financial Condition:

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As of
June 30, 2022December 31, 2021
Net distributable earnings (accumulated losses), beginning of period$(269)$— 
Net investment income (loss)13,409 135 
Net realized gain (loss)104 — 
Net unrealized appreciation (depreciation)(11,959)— 
Dividends declared(12,806)(415)
Tax reclassification of members' capital— 11 
Net distributable earnings (accumulated losses), end of period$(11,521)$(269)
The following table summarizes the total units issued and proceeds received from the Company’s capital drawdowns delivered pursuant to the Subscription Agreements for six months ended June 30, 2022:

Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
May 12, 20222,952,75660,000 
Total5,465,319$110,000 
The following table summarizes the Company’s distributions declared and payable for the six months ended June 30, 2022:

Date DeclaredRecord DatePayment DatePer Unit AmountTotal Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 $4,942 
June 24, 2022June 24, 2022July 25, 20220.45 7,864 
Total Distributions$0.87 $12,806 
The Company adopted an “opt out” distribution reinvestment plan (“DRIP”). As a result, unless unitholders elect to “opt out” of the DRIP, unitholders will have their cash dividends or distributions automatically reinvested in additional Common Units, rather than receiving cash. Unitholders who receive distributions in the form of Common Units will generally be subject to the same U.S. federal, state and local tax consequences as if they received cash distributions; however, those unitholders will not receive cash with which to pay any applicable taxes. Units issued under the DRIP will not reduce a unitholder’s outstanding capital commitment.
The following table summarizes the amounts received and units issued to unitholders who have participated in the DRIP for the six months ended June 30, 2022:
Payment DateDRIP Units IssuedDRIP Units Value
January 24, 202220,652 $414 
April 26, 2022244,829 4,942 
Total265,481 $5,356 
(9)Earnings Per Unit
The following table sets forth the computation of basic and diluted earnings per common unit:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Net increase in Members' Capital from operations$(3,864)$1,554 
Weighted average Common Units outstanding16,080,203 13,947,111 
Basic and diluted earnings per Common Unit$(0.24)$0.11 
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(10)Consolidated Financial Highlights
The following are the financial highlights (dollar amounts in thousands, except per unit amounts):
For the Six Months Ended June 30, 2022
Per Unit Data:(1)
Net asset value, beginning of period$19.98
Net investment income (loss)0.96
Net unrealized and realized gain (loss)(2)
(0.69)
Net increase (decrease) in net assets resulting from operations0.27
Distributions declared(0.87)
Issuance of common units0.01
Total increase (decrease) in net assets(0.59)
Net asset value, end of period$19.39
Units outstanding, end of period17,477,827
Total return based on net asset value(3)
1.36%
Ratio/Supplemental Data:
Members' Capital, end of period$338,834
Weighted average units outstanding13,947,111
Ratio of total expenses to average Members’ Capital(4)
4.86 %
Ratio of net investment income to average Members’ Capital(4)
9.71 %
Asset coverage ratio164.29 %
Portfolio turnover rate3.12 %
(1)The per unit data was derived by using the weighted average units outstanding during the period, except otherwise noted.
(2)The amount shown does not correspond with the aggregate amount for the period as it includes the effect of the timing of capital transactions.
(3)Total return (not annualized) is calculated assuming a purchase of common units at the opening of the first day of the period and a sale on the closing of the last
business day of the period. Distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s
distribution reinvestment plan.
(4)Amounts are annualized except for incentive fees, and organization and offering costs.
(11)Subsequent Events
Subsequent events have been evaluated through the date the consolidated financial statements were issued. There have been no subsequent events that require recognition or disclosure through the date the consolidated financial statements were issued, except as disclosed below.
On July 6, 2022, the Company delivered a capital drawdown notice relating to the sale of approximately 5,900,462 of the Company’s common units, for an aggregate offering price of $115 million. The sale closed on July 14, 2022.
On July 19, 2022, the Company entered into that certain Second Amendment to Revolving Credit Agreement (the “Second Amendment”), amending that certain Revolving Credit Agreement, dated November 5, 2021 (as amended by that certain First Amendment to Revolving Credit Agreement, dated as of January 25, 2022, and as further amended, restated, amended and restated, supplemented or otherwise modified, including by the Second Amendment, the “Credit Agreement”) by and among the Company, as Borrower and Commonwealth Bank of Australia as Administrative Agent under the Credit Agreement, as Lead Arranger, as the Letter of Credit Issuer and as a Lender. The Second Amendment amends the Credit Agreement to, among other things, move to SOFR as the interest rate benchmark rate and include a short-term increase in the Maximum Commitment (as such term is defined in the Credit Agreement) in the amount of $100,000 for an aggregate Maximum Commitment of $425,000. The temporary increase maturity date is January 25, 2023. On such date, the Maximum Commitment will revert back to the initial $325,000.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (dollar amounts in thousands, except per unit amounts, unless otherwise indicated)

In this Quarterly Report on Form 10-Q, or this “Report”, except where context suggests otherwise, the terms “Company,” “we,” “our” or “us” refers to T Series Middle Market Loan Fund LLC and its consolidated subsidiaries. This Report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and you should not place undue reliance on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and opinions and our assumptions. For the avoidance of doubt, we are not a subsidiary of, or consolidated with, Morgan Stanley. Morgan Stanley has no history of financially supporting any business development companies (“BDCs”) on the MS Private Credit platform, even during periods of financial distress.Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “potential”, “predicts” 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 our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:
•our future operating results;
•our business prospects and the prospects of our portfolio companies;
•risk associated with possible disruptions in our operations or the economy generally, including disruptions from the impact of the current Coronavirus (also referred to as “COVID-19” or “Coronavirus”) pandemic;
•changes in the general interest rate environment;
•general economic, political and industry trends and other external factors, including uncertainty surrounding the financial and political stability of the United States and other countries;
•the effect of an inflationary economic environment on our portfolio companies, our financial condition and our results of operations;
•our contractual arrangements and relationships with third parties;
•actual and potential conflicts of interest with MS Capital Partners Adviser Inc., our investment adviser (the “Adviser” or “Investment Adviser”), and its affiliates;
•the dependence of our future success on the general economy and its effect on the industries in which we invest;
•the ability of our portfolio companies to achieve their objectives, including as a result of the Coronavirus pandemic;
•the use of borrowed money to finance a portion of our investments;
•the adequacy of our financing sources and working capital;
•the timing and amount of cash flows, if any, from the operations of our portfolio companies;
•the ability of our Investment Adviser to locate suitable investments for us and to monitor and administer our investments;
•the ability of our Investment Adviser and its affiliates to attract and retain highly talented professionals;
•our ability to qualify and maintain our qualification as a BDC, and as a regulated investment company (a “RIC”), under the Internal Revenue Code of 1986, as amended (the “Code”);
•the impact on our business of U.S. and international financial reform legislation, rules and regulations;
•currency fluctuations, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars, could adversely affect the results of our investments in foreign companies;
•the effect of changes in tax laws and regulations and interpretations thereof; and
•the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in this Report.
The information contained in this section should be read in conjunction with “Item 1. Consolidated Financial Statements.” Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved. This discussion contains forward-looking statements, which relate to future events or our future performance or financial condition and involves numerous risks and uncertainties, including, but not limited to, those set forth in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, or the Form 10-K, and Part II, Item 1A of and elsewhere in this Report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Report. Moreover, we assume no duty and do not undertake to update the forward-looking statements. You are advised to consult any additional disclosures that we make directly to you or through reports that we have filed or in the future file with the Securities and Exchange Commission, (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.
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OVERVIEW

We are a non-diversified externally managed specialty finance company focused on lending to middle-market companies. We have elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to elect to be treated, and intend to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. We are not a subsidiary of, or consolidated with, Morgan Stanley.
Our investment objective is to achieve attractive risk-adjusted returns via current income and, to a lesser extent, capital appreciation by investing primarily in directly originated senior secured term loans issued by U.S. middle-market companies backed by financial sponsors. For the purposes of this report, “middle-market companies” refers to companies that, in general, generate annual EBITDA in the range of approximately $15 million to $150 million, which we believe is a useful proxy for cash flow although not all of our portfolio companies will meet this criteria.
We invest primarily in directly originated senior secured term loans issued by U.S middle-market companies backed by financial sponsors, including first lien senior secured term loans, second lien senior secured term loans, higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases. Typical middle-market senior loans may be issued by middle-market companies in the context of leveraged buyouts (“LBOs”), acquisitions, debt refinancings recapitalizations, and other similar transactions. We generally expect our debt investments to have a stated term of five to eight years and typically bear interest at a floating rate usually determined on the basis of a benchmark (historically, the London Inter-bank Offered Rate (“LIBOR”) and the Secured Overnight Financing Rate (“SOFR” or “S”) and, prospectively, alternative reference rates).
We generate revenues primarily in the form of interest income from investments we hold. In addition, we generate income from dividends or distributions of income on any direct equity investments, capital gains on the sale of loans and equity securities and various other loan origination and other fees, including commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
Pursuant to exemptive relief from the SEC granted to our Adviser (as amended, the “Order”) we are able to enter into certain negotiated co-investment transactions alongside certain other Affiliated Investment Accounts (as defined in the Order) in a manner consistent with our investment objective, positions, policies, strategies, and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with the Order. Pursuant to the Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our eligible directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our unitholders and do not involve overreaching in respect of us or our unitholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our unitholders and is consistent with our investment objective and strategies.
Recent Market Developments
Uncertainty as to the probability of, and length and depth of a global recession, and the impact of new variants of the Coronavirus that have emerged in the United States and globally, has created stress on the market and could affect our portfolio companies. In addition, government spending, government policies, including recent increases in certain interest rates by the U.S. Federal Reserve, high oil prices and disruptions in supply chains in the United States and elsewhere, in conjunction with other factors, including those described above, have led and could continue to lead to inflationary economic environments that could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving market environment including as it relates to the Coronavirus pandemic and guidance from U.S. and international public health authorities. In these circumstances, there may be developments outside our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impacts of the developments described above on our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment, and we and our Investment Adviser continue to be fully operational.
KEY COMPONENTS OF OUR RESULTS OF OPERATIONS
Investments
Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt available to middle-market companies, the general economic environment and the competitive environment for the type of investments we make.
Revenue
We generate revenue primarily in the form of interest income on debt investments we hold. In addition, we generate income from dividends or distributions on income on direct equity investments, capital gains on the sales of loans and equity securities and various loan origination and other fees. Our debt investments generally have a stated term of five to eight years and typically to bear interest at a floating rate usually determined on the basis of a benchmark such as LIBOR or SOFR. Interest on these debt investments is generally paid quarterly. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we may receive repayments of some of our debt investments prior to their scheduled maturity date.
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The frequency or volume of these repayments is expected to fluctuate significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees.
Expenses
Our primary operating expenses include the payment of: (i) investment advisory fees, including base management fees and incentive fees, to our Investment Adviser pursuant to the Investment Advisory Agreement between us and our Investment Adviser (the “Investment Advisory Agreement”); (ii) costs and other expenses and our allocable portion of overhead incurred by our Administrator in performing its administrative obligations under the Administration Agreement between us and our Administrator (the “Administration Agreement”); and (iii) other operating expenses as detailed below:
•initial organization costs and offering costs incurred prior to the filing of our election to be regulated as a BDC;
•costs associated with any private offerings of our Common Units, and any other securities offerings;
•calculating individual asset values and our net asset value (including the cost and expenses of any third-party valuation services);
•out of pocket expenses, including travel expenses, incurred by the Investment Adviser, or members of its investment team or payable to third parties, performing due diligence on prospective portfolio companies and monitoring actual portfolio companies and, if necessary, enforcing our rights;
•base management fee and any incentive fee payable under the Investment Advisory Agreement;
•certain costs and expenses relating to distributions paid by us;
•administration fees payable under the Administration Agreement and any sub-administration agreements, including related expenses;
•debt service and other costs of borrowings, senior securities or other financing arrangements;
•the allocated costs incurred by the Investment Adviser in providing managerial assistance to those portfolio companies that request it;
•amounts payable to third parties relating to, or associated with, making or holding investments;
•the costs associated with subscriptions to data service, research-related subscriptions and expenses and quotation equipment and services used in making or holding investments;
•transfer agent and custodial fees;
•costs of hedging;
•commissions and other compensation payable to brokers or dealers;
•any fees payable to rating agencies;
•federal and state registration fees;
•U.S. federal, state and local taxes, including any excise taxes;
•independent director fees and expenses;
•costs of preparing financial statements and maintaining books and records, costs of preparing tax returns, costs of Sarbanes-Oxley Act compliance and attestation and costs of filing reports or other documents with the SEC (or other regulatory bodies), and other reporting and compliance costs, including registration fees, and the compensation of professionals responsible for the preparation or review of the foregoing;
•the costs of any reports, proxy statements or other notices to our unitholders (including printing and mailing costs), the costs of any unitholders’ meetings, and costs and expenses of preparation for the foregoing and related matters;
•the costs of specialty and custom software for monitoring risk, compliance and overall investments;
•any fidelity bond required by applicable law;
•any necessary insurance premiums;
•indemnification payments;
•any extraordinary expenses (such as litigation or indemnification payments or amounts payable pursuant to any agreement to provide indemnification entered into by the Company),
•direct fees and expenses associated with independent audits, agency, consulting and legal costs;
•cost of winding up; and
•all other expenses incurred by either the Administrator or us in connection with administering our business.
We reimburse the Administrator or its affiliates for amounts paid or costs borne that properly constitute Company expenses as set forth in the Administration Agreement or otherwise. We expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.
PORTFOLIO, INVESTMENT ACTIVITY AND RESULTS OF OPERATIONS
As of June 30, 2022, we had investments in 75 portfolio companies across 20 industries. Based on fair value as of June 30, 2022, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. As of June 30, 2022, our weighted average total yield of debt securities at amortized cost was 8.1%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of June 30, 2022.
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As of December 31, 2021, we had investments in 24 portfolio companies across 12 industries. Based on fair value as of December 31, 2021, 100.0% of our debt portfolio was invested in debt bearing a floating interest rate, which are primarily subject to interest rate floors. Approximately 99.8% of our debt portfolio at fair value had a LIBOR floor. The weighted average LIBOR floor across our floating-rate portfolio was approximately 0.9% as of December 31, 2021. As of December 31, 2021, our weighted average total yield on debt securities at amortized cost was 6.8%. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of December 31, 2021.

Our portfolio as of June 30, 2022 and December 31, 2021 is presented below:
As of
June 30, 2022December 31, 2021
CostFair Value% of Total Investments at Fair ValueCostFair Value% of Total Investments at Fair Value
First Lien Debt$818,400 $806,611 97.0 %$355,939 $355,939 97.7 %
Second Lien Debt16,772 16,406 2.0 2,836 2,836 0.8 
Other Securities8,697 8,892 1.1 5,623 5,623 1.5 
Total$843,869 $831,909 100.0 %$364,398 $364,398 100.0 %

Our investment activity is presented below (information presented herein is at amortized cost unless otherwise indicated):

As of and For the Three Months Ended June 30, 2022
New Investments Committed/Purchased
Gross Principal Balance(1)
$337,610 
Less: Syndications— 
Net New Investments Committed/Purchased$337,610 
Investments, at Cost
Investments, beginning of period$531,565 
New investments purchased325,154 
Net accretion of discount on investments578 
Payment-in-kind270 
Net realized gain (loss) on investments104 
Investments sold or repaid(13,802)
Investments, end of period$843,869 
Principal amount of investments funded
First lien debt$314,739 
Second lien debt14,219 
Other securities(2)
— 
Total$328,958 
Amount of investments sold/fully repaid, at principal
First lien debt investments$(8,473)
Second lien debt investments— 
Total$(8,473)
Weighted average yield on debt and income producing investments, at cost(3)
8.1 %
Weighted average yield on debt and income producing investments, at fair value(3)
8.2 %
Number of portfolio companies75 
Percentage of debt investments bearing a floating rate, at fair value100.0 %
Percentage of debt investments bearing a fixed rate, at fair value— %

(1)Includes new investment commitments, excluding sale/repayments and including unfunded investment commitments.
(2)Represents dollar amount of common equity funded.
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(3)Computed as (a) the annual stated spread, plus applicable Prime/LIBOR/SOFR or Interest rate floor, as applicable, plus the annual accretion of discounts, as applicable, on accruing debt securities, divided by (b) total debt investments (at fair value or cost, as applicable) included in such securities. Actual yields earned over the life of each investment could differ materially from the yields presented herein.
As part of the monitoring process, our Investment Adviser has developed risk policies pursuant to which it regularly assesses the risk profile of each of our debt investments. Our Investment Adviser has developed a classification system to group investments into four categories. The investments are evaluated regularly and assigned a category based on certain credit metrics. Our Investment Adviser’s ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments. Please see below for a description of the four categories of the Investment Adviser’s Internal Risk Rating system:
Category 1 — In the opinion of our Investment Adviser, investments in Category 1 involve the least amount of risk relative to our initial cost basis at the time of origination or acquisition. Category 1 investments performance is above our initial underwriting expectations and the business trends and risk factors are generally favorable, which may include the performance of the portfolio company, or the likelihood of a potential exit.
Category 2 — In the opinion of our Investment Adviser, investments in Category 2 involve a level of risk relative to our initial cost basis at the time of origination or acquisition. Category 2 investments are generally performing in line with our initial underwriting expectations and risk factors to ultimately recoup the cost of our principal investment are neutral to favorable. All new originated or acquired investments are initially included in Category 2.
Category 3 — In the opinion of our Investment Adviser, investments in Category 3 indicate that the risk to our ability to recoup the initial cost basis at the time of origination or acquisition has increased materially since the origination or acquisition of the investment, such as declining financial performance and non-compliance with debt covenants; however, principal and interest payments are not more than 120 days past due.
Category 4 — In the opinion of our Investment Adviser, investments in Category 4 involve a borrower performing substantially below expectations and indicate that the loan’s risk has increased substantially since origination or acquisition. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. For Category 4 investments, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis at the time of origination or acquisition upon exit.
The distribution of our portfolio on the Investment Adviser’s Internal Risk Rating System as of June 30, 2022 and December 31, 2021 was as follows:

 June 30, 2022December 31, 2021
Fair Value% of PortfolioNumber of Portfolio CompaniesFair Value% of PortfolioNumber of Portfolio Companies
Risk rating 1$— — %— $— — %— 
Risk rating 2831,909 100.0 75 364,398 100.0 24 
Risk rating 3— — — — — — 
Risk rating 4— — — — — — 
$831,909 100.0 %75$364,398 100.0 %24
CONSOLIDATED RESULTS OF OPERATIONS
The following table represents our operating results:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Total investment income$13,095 $21,104 
Less: Total expenses4,935 7,693 
Net investment income (loss) before taxes8,160 13,411 
Less: Excise tax expense1 2 
Net investment income (loss) after taxes8,159 13,409 
Net change in unrealized appreciation (depreciation)(12,127)(11,959)
Net realized gain (loss)104 104 
Net increase (decrease) in Members' Capital resulting from operations$(3,864)$1,554 
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Investment Income
Investment income was as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Investment income:
Interest income$12,384 $19,872 
Payment-in-kind interest income— 10 
Dividend income89 169 
Other income622 1,053 
Total Investment Income$13,095 $21,104 
For the three and six months ended June 30, 2022, total investment income was driven by our deployment of capital and invested balance of investments. The size of our investment portfolio at fair value was $831.9 million as of June 30, 2022 and, as of such date, all our debt investments were income-producing. 
Interest income on our debt investments is dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in compliance witheach loan’s credit agreement. As of June 30, 2022, all covenantsof our first and second lien debt investments were performing and current on their interest payments.
Expenses
Expenses were as follows:
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Expenses:
Interest and other financing expenses$3,404 $4,993 
Management fees393 714 
Income based incentive fees756 1,245 
Capital gains incentive fees(14)— 
Professional fees283 452 
Organization and offering costs20 62 
Directors' fees52 103 
Administrative service fees5 5 
General and other expenses36 119 
Excise tax expense1 2 
Total expenses (including excise tax)$4,936 $7,695 
For the three and six months ended June 30, 2022, total expenses were primarily comprised of interest and other requirementsfinancing expenses of $3,404 and $4,993, management fees of $393 and $714, income based incentive fees of $756 and $1,245, capital gains based incentive fees of $(14) and $0, professional fees of $283 and $452, directors’ fees of $52 and $103 and general and other expenses of $36 and $119.
Professional fees include legal, audit, tax, valuation, and other professional fees incurred related to the management of the Company. General and other expenses include insurance, filing, research, subscriptions and other costs. Organization and offering costs include expenses incurred in our initial formation and our offering of Common Units.
Income Taxes, Including Excise Taxes
We intend to elect to be treated as a RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, we must, among other things, distribute to our unitholders in each taxable year generally at least 90% of the sum of our ICTI, as defined by the Code (without regard to the deduction for dividends paid), and net tax-exempt income for that taxable year. To maintain our tax treatment as a RIC, we, among other things, intend to make the requisite distributions to our unitholders, which generally relieve us from corporate-level U.S. federal income taxes. For the three and six months ended June 30, 2022, we incurred $1 and $2, respectively, of U.S. federal excise tax.

Net Realized Gain (Loss) and Unrealized Gain (Loss) on Investments

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For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
Realized and unrealized gains (losses) on investment transactions:
Net realized gain (loss):
Non-controlled/non-affiliated investments$104 $104 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments(12,127)(11,959)
Net realized and unrealized gains (losses)$(12,023)$(11,855)

For the three and six months ended June 30, 2022, net realized gain on our investments was $104 and $104, respectively, primarily driven by the sale of debt investments in our portfolio.
We determine the fair value of our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. For the three and six months ended June 30, 2022, net change in unrealized loss on our investments of $12.1 million and $12.0 million, respectively, was primarily driven by the decreases of valuations of our debt and equity investments as a result of the volatile credit environment and spread widening in the primary and secondary markets.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We generate cash from the net proceeds of offerings of our Common Units, net borrowings from our credit facilities, and from cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. We may also fund a portion of our investments through borrowings from banks and issuances of senior securities, including before we have fully invested the proceeds of the private offering of our Common Units. Our primary use of cash will be investments in portfolio companies, payments of our expenses and payment of cash distributions to our unitholders. As of June 30, 2022, we had two revolving credit facilities outstanding, as described in “Debt” below. We may also from time to time enter into new credit facilities, increase the size of existing credit facilities or issue new debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.
As of June 30, 2022, we had approximately $65.9 million of cash, which taken together with our approximately $98.0 million and $200.0 million of availability under the CBA Subscription Facility and Barclays Funding Facility (each as well as the leverage restrictions containeddefined below) (subject to borrowing base availability), respectively, and our approximately $655.0 million of uncalled capital commitments to purchase Common Units, or capital commitments, we expect to be sufficient for our investing activities and to conduct our operations in the 1940 Act.near term. As of June 30, 2022, we believed we had adequate financial resources to satisfy the unfunded portfolio company commitments.
Unregistered Sales of Equity Securities
As of June 30, 2022, we had received aggregate capital commitments of $1,000.0 million.
For the six months ended June 30, 2022, we issued capital calls to our unitholders. As a result, the total Common Units issued and proceeds received related to capital drawdowns delivered pursuant to the Subscription Agreements were as follows:

Unit Issuance DateCommon Units IssuedAmount
March 31, 20222,512,563$50,000 
May 12, 20222,952,75660,000 
Total5,465,319$110,000 
Distributions and Distribution Reinvestment
The following table summarizes our distributions declared and payable for the six months ended June 30, 2022:

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Date DeclaredRecord DatePayment DatePer Unit AmountDistribution Yield(1)Total Amount
March 25, 2022March 25, 2022April 26, 2022$0.42 8.5 %$4,942 
June 24, 2022June 24, 2022July 25, 20220.45 9.8 %7,864 
Total Distributions$0.87 $12,806 

(1)    Distribution yield (annualized) is calculated by dividing the declared distribution by the weighted average of the net asset value at the beginning of the quarter, the capital called and distribution reinvested during the quarter and annualizing over 4 quarterly periods.
We have adopted an “opt out” distribution reinvestment plan (“DRIP”). As a result, if our Board of Directors authorizes, and we declare, a cash distribution, our unitholders will have their cash distributions automatically reinvested in additional units of same class of units to which the distribution relates unless they specifically “opt out” of the DRIP and elect to receive distributions in cash.
The following table summarizes the amounts received and units issued to unitholders who have participated in the DRIP for the six months ended June 30, 2022:

Payment DateDRIP Units IssuedDRIP Units Value
January 24, 202220,652 $414 
April 26, 2022244,829 4,942 
Total265,481 $5,356 
Debt
Our outstanding debt obligations were as follows:
June 30, 2022December 31, 2021
Aggregate Principal CommittedOutstanding PrincipalUnused PortionAggregate Principal CommittedOutstanding PrincipalUnused Portion
CBA Subscription Facility$425,000 $327,000 $98,000 $325,000 $214,000 $111,000 
Barclays Funding Facility400,000 200,000 200,000 — — — 
Total$825,000 $527,000 $298,000 $325,000 $214,000 $111,000 

For additional information on our debt obligations see “Item 1. Consolidated Financial Statements—Notes to Consolidated Financial Statements—Note 6. Debt."

RECENT DEVELOPMENTS
Subsequent to March 31,June 30, 2022 through May 11,August 9, 2022, the Company haswe have closed or the Investment Committee has committed/approved approximately $184.5$130.1 million of new/add-on investments. This includes transactions for which a formal mandate, letter of intent or a signed commitment have been issued, and therefore the Company believeswe believe are likely to close. Of these new commitments, approximately $180.6$128.0 million were first lien senior secured loans and $3.9$2.1 million were equity securities. 100% of the senior secured loans were floating rate loans. We remain highly focused on conducting extensive due diligence and leveraging the Morgan Stanley platform. We continue to seek to invest in companies that are led by strong management teams, generate substantial free cash flow, have leading market positions, benefit from sustainable business models, and are well positioned to perform well despite the impact of the Coronavirus pandemic. We believe the current market environment offers opportunities to seek compelling risk adjusted returns. Our investment pace will depend on several factors including the market environment, deal flow, and the continued impact of the Coronavirus.
On April 26,July 6, 2022, we delivered a capital drawdown notice relating to the sale of approximately 5,900,462 of our common units, for an aggregate offering price of approximately $60.0$115 million. The sale closed on July 14, 2022.

On July 19, 2022, we entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”), amending that certain Revolving Credit Agreement, dated November 5, 2021 (as amended by that certain First Amendment to Revolving Credit Agreement, dated as of Common UnitsJanuary 25, 2022, and as further amended, restated, amended and restated, supplemented or otherwise modified, including by the Second Amendment, the “Credit Agreement”) by and among us, as Borrower and Commonwealth Bank of Australia as Administrative Agent under the Credit Agreement, as Lead Arranger, as the Letter of Credit Issuer and as a Lender. The Second Amendment amends the Credit Agreement to, among other things, move to SOFR as the interest rate benchmark rate and include a short-term increase in the Maximum Commitment (as such term is expecteddefined in the Credit Agreement) in the amount of
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$100,000 for an aggregate Maximum Commitment of $425,000. The temporary increase maturity date is January 25, 2023. On such date, the Maximum Commitment will revert back to close on May 12, 2022.the initial $325,000.
CRITICAL ACCOUNTING ESTIMATES
The preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, should be read in connection with our financial statements in Part I, Item 1 of this Form 10-Q, "Risk Factors" Report, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in Part II, Item 1A7 of this Report,our Form 10-K, and “Risk Factors”"Risk Factors" in Part I, Item 1A of our Form 10-K.
RELATED PARTY TRANSACTIONS
We have entered into a number of business relationships with affiliated or related parties, including the following:
•the Investment Advisory Agreement; and
•the Administration Agreement.
See “Item 1. Consolidated Financial Statements—Notes to Consolidated Financial Statements—Note 3. Related Party Transactions.”Transactions” in the accompanying unaudited financial statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including valuation risk, market risk and interest rate risk.
Valuation Risk
We have invested, and plan to continue to invest, primarily in illiquid debt and equity securities of portfolio companies. During periods of market dislocation, we will seek to invest prudently in the secondary loan market to provide our investors better risk adjusted returns while adhering to our core investment tenants. See “Item 2—Management’s Discussion & Analysis of Financial Condition and Results of Operations - Coronavirus Developments.” Most of our investments will not have a readily available market price. To ensure accurate valuation, our investments are valued at fair value in good faith by our Board of Directors, based on, among other things, the input of the Investment Adviser, our Audit Committee and independent third-party valuation firmfirms engaged at the direction of our Board of Directors, and in accordance with our valuation policy. There is no single standard for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each investment while employing a consistently applied valuation process for the investments we hold. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material.
Market Risk
The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Global economies and financial markets are increasingly interconnected, which increases the probabilities that conditions in one country or region might adversely impact issuers in a different country or region. Conditions affecting the general economy, including political, social, or economic instability at the local, regional, or global level, may also affect the market value of a security. Health crises, such as pandemic and epidemic diseases, as well as other incidents that interrupt the expected course of events, such as natural disasters, war or civil disturbance, acts of terrorism, power outages and other unforeseeable and external events, and the public response to or fear of such diseases or events, have and may in the future have
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an adverse effect on a company’s investments and net asset value and can lead to increased market volatility. See “Item 1A. Risk Factors—General Risk Factors—Risks Relating to Our Business and Structure—We are operating in a period of capital markets disruption and economic uncertainty. The conditions have materially and adversely affected debt and equity capital markets in the United States, and any future disruptions or instability in capital markets may have a negative impact on our business and operations.” and “Terrorist attacks, acts of war, natural disasters, outbreaks or pandemics, such as the Coronavirus pandemic, may impact our portfolio companies and our Adviser and harm our business, operating results and financial condition.” in the Form 10-K.
Interest Rate Risk
We are subject to financial market risks, most significantly changes in interest rates. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we expect to fund a portion of our investments with borrowings, our net investment income is expected to be affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
As of March 31,June 30, 2022, 100.0% of our debt investments were at floating rates. Based on our Consolidated Statements of Financial Condition as of March 31,June 30, 2022, the following table shows the annualized impact on net income of hypothetical basereference rate changes
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in interest rates (considering interest rate floors and ceilings for floating rate debt instruments assuming no changes in our investments and borrowing structure as of March 31,June 30, 2022):
InterestInterestNetInterestInterestNet
Basis Point Change - Interest RatesBasis Point Change - Interest RatesIncomeExpenseIncomeBasis Point Change - Interest RatesIncomeExpenseIncome
Up 300 basis pointsUp 300 basis points$15,069 $(9,450)$5,619 Up 300 basis points$25,543 $(15,810)$9,733 
Up 200 basis pointsUp 200 basis points$9,702 $(6,300)$3,402 Up 200 basis points$17,025 $(10,540)$6,485 
Up 100 basis pointsUp 100 basis points$4,340 $(3,150)$1,190 Up 100 basis points$8,507 $(5,270)$3,237 
Down 100 basis pointsDown 100 basis points$(510)$1,755 $1,245 Down 100 basis points$(6,830)$5,270 $(1,560)
Down 200 basis pointsDown 200 basis points$(510)$1,755 $1,245 Down 200 basis points$(9,080)$9,853 $773 
Down 300 basis pointsDown 300 basis points$(510)$1,755 $1,245 Down 300 basis points$(9,211)$10,433 $1,222 
We may hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts or our credit facilities, subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates or higher exchange rates with respect to our portfolio of investments with fixed interest rates or investments denominated in foreign currencies. During the periods covered by this Report, we did not engage in interest rate hedging activities.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
In accordance with Rules 13a-15(b) and 15d-15(b) of the Exchange Act, we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Report and determined that our disclosure controls and procedures are effective as of the end of the period covered by this Report.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred for the threesix months ended March 31,June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II
Item 1. Legal Proceedings
The Company, the Adviser and the Administrator may become party to certain lawsuits in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. Each of the Company, the Investment Adviser and the Administrator is not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against the Company.
Item 1A. Risk Factors
In addition to the other information set forth in this Report, you should carefully consider the risk factors previously disclosed under Item 1A of the Form 10-K, which could materially affect our business, financial condition and/or operating results. The risks disclosed in the Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition and/or operating results.
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Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.
Sales of Unregistered Securities
Refer to “Item“Item 1. Consolidated Financial Statements—Notes to the Consolidated Financial Statements—Note 8. Members’ Capital” in this Report and our Current Report on Form 8-K filed on March 9, 2022 and July 20, 2022 for an issuance of our Common Units during the threesix months ended March 31,June 30, 2022. Such issuance was part of our private offering of Common Units pursuant to Section 4(a)(2) of the Securities Act and Regulation D thereunder.
Issuer Purchases of Equity Securities
None
Item 3: Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures
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Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits and Financial Statement Schedules
(a) Documents filed as part of this report
(b) Exhibits
The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:
ExhibitDescription
10.1*
31.1*
31.2*
32.1*
32.2*
_________________
* Filed herewith
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
T Series Middle Market Loan Fund LLC
Dated: May 11,August 9, 2022By:/s/ Jeffrey S. Levin
Jeffrey S. Levin
Director and Chief Executive Officer (principal executive officer)
Dated: May 11,August 9, 2022By:/s/ Venugopal Rathi
Venugopal Rathi
Chief Financial Officer
(principal financial officer)




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