Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Cover [Abstract] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | NexPoint Capital, Inc. |
Entity Central Index Key | 0001588272 |
Securities Act File Number | 814-01074 |
Entity Tax Identification Number | 38-3926499 |
Entity Shell Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Document Annual Report | true |
Document Transition Report | false |
Entity Incorporation, State or Country Code | DE |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | shares | 9,309,405 |
Entity Address, Address Line One | 300 Crescent Court, Suite 700 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75201 |
Local Phone Number | 628-4100 |
City Area Code | 972 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Public Float | $ | $ 0 |
Auditor Name | Cohen & Company, LTD. |
Auditor Firm ID | 925 |
Auditor Location | Cleveland, Ohio, United States |
Consolidated Statements of Asse
Consolidated Statements of Assets and Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Investments, fair value disclosure | $ 49,413,286 | $ 53,293,715 | |
Cash and cash equivalents | 1,401,744 | 1,629,846 | |
Receivable for investments sold | 8,953 | 0 | |
Dividends and interest receivable | 299,110 | 220,194 | |
Prepaid expenses | 5,273 | 15,905 | |
Deferred tax asset | [1] | 13,020 | 0 |
Total assets | 51,279,034 | 55,251,876 | |
Liabilities | |||
Payable for investments purchased | 53,304 | 0 | |
Accrued expenses and other liabilities | 293,462 | 371,736 | |
Distributions payable | 837,846 | 870,980 | |
Total liabilities | 1,469,508 | 1,557,709 | |
Commitments and contingencies | [2] | ||
Net assets | |||
Preferred stock, $0.001 par value (25,000,000 shares authorized, 0 shares issued and outstanding) | |||
Common stock, $0.001 par value (200,000,000 shares authorized, 9,309,405 and 9,677,593 shares issued and outstanding, respectively) | 9,309 | 9,678 | |
Paid-in capital in excess of par | 83,221,067 | 86,949,376 | |
Distributable earnings (accumulated loss) | (33,420,850) | (33,264,887) | |
Total net assets | $ 49,809,526 | $ 53,694,167 | |
Net asset value per share of common stock | $ 5.35 | $ 5.55 | |
Related Party [Member] | |||
Assets | |||
Receivable from Adviser | [1],[3] | $ 137,648 | $ 92,216 |
Liabilities | |||
Payable to Adviser | [3] | 284,896 | 314,993 |
Unaffiliated investments [Member] | |||
Assets | |||
Investments, fair value disclosure | 38,716,441 | 43,020,714 | |
Affiliated investments [Member] | |||
Assets | |||
Investments, fair value disclosure | [4] | $ 10,696,845 | $ 10,273,001 |
[1]See Note 9 for a discussion of affiliated investments.[2]See Note 4 and Note 7 for a discussion of the commitments and contingencies of the Company (as defined in Note 1).[3]See Note 4 for a discussion of related party transactions and arrangements.[4]See Note 5 for a discussion of the deferred tax asset. |
Consolidated Statements of As_2
Consolidated Statements of Assets and Liabilities (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investments owned at cost | $ 45,998,823 | $ 54,011,971 |
Preferred stock stated or par value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock stated or par value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock shares issued | 9,309,405 | 9,677,593 |
Common stock shares outstanding | 9,309,405 | 9,677,593 |
Unaffiliated investments [Member] | ||
Investments owned at cost | $ 33,564,802 | $ 41,687,079 |
Affiliated investments [Member] | ||
Investments owned at cost | $ 12,434,021 | $ 12,324,892 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Investment income: | ||||
Interest | $ 1,918,030 | $ 2,178,971 | $ 3,070,371 | |
Interest paid-in-kind | 131,372 | 193,003 | 100,908 | |
Other fee income | 0 | 0 | 4,651 | |
Total investment income | 3,332,223 | 3,692,613 | 4,097,859 | |
Expenses: | ||||
Investment advisory fees | [1] | 942,612 | 1,096,487 | 1,220,044 |
Custodian and accounting service fees | 311,664 | 311,050 | 307,438 | |
Administration fees | [1] | 194,764 | 226,948 | 244,754 |
Stock transfer fee | 167,547 | 209,866 | 208,251 | |
Audit and tax fees | 166,039 | 167,864 | 168,254 | |
Other expenses | 122,992 | 113,825 | 155,670 | |
Reports to stockholders | 134,324 | 82,721 | 75,060 | |
Legal fees | 43,949 | 53,658 | 72,441 | |
Directors' fees | [1] | 15,194 | 18,170 | 17,781 |
Total expenses | 2,099,085 | 2,280,589 | 2,469,693 | |
Expenses (waived) or recouped by the Adviser | [1] | (420,776) | (377,594) | (295,261) |
Net expenses | 1,678,309 | 1,902,995 | 2,174,432 | |
Net investment income before income taxes | 1,653,914 | 1,789,618 | 1,923,427 | |
Income tax expense | [2] | (13,020) | 0 | 0 |
Net investment income | 1,666,934 | 1,789,618 | 1,923,427 | |
Net realized and unrealized gains (losses) on investments: | ||||
Net realized gain (loss) on: | (4,345,706) | 329,081 | (3,479,546) | |
Net change in unrealized appreciation (depreciation) on: | 4,132,719 | (6,183,873) | 7,262,262 | |
Net realized and unrealized gains (losses) | (212,987) | (5,854,792) | 3,782,716 | |
Net increase (decrease) in net assets resulting from operations | $ 1,453,947 | $ (4,065,174) | $ 5,706,143 | |
Net investment income: | $ 0.17 | $ 0.18 | $ 0.19 | |
Earnings (loss) per share: Basic | 0.15 | (0.41) | 0.56 | |
Earnings (loss) per share: Diluted | $ 0.15 | $ (0.41) | $ 0.56 | |
Weighted average shares outstanding: Basic | 9,533,072 | 9,893,732 | 10,254,666 | |
Weighted average shares outstanding: Diluted | 9,533,072 | 9,893,732 | 10,254,666 | |
Unaffiliated investments [Member] | ||||
Investment income: | ||||
Dividend income | $ 444,982 | $ 645,582 | $ 17,848 | |
Net realized and unrealized gains (losses) on investments: | ||||
Net realized gain (loss) on: | (4,414,415) | 66,517 | (4,090,996) | |
Net change in unrealized appreciation (depreciation) on: | 3,818,004 | (3,747,521) | 5,494,097 | |
Affiliated investments [Member] | ||||
Investment income: | ||||
Dividend income | [3] | 837,839 | 675,057 | 904,081 |
Net realized and unrealized gains (losses) on investments: | ||||
Net realized gain (loss) on: | [3] | 68,709 | 262,564 | 611,450 |
Net change in unrealized appreciation (depreciation) on: | [3] | $ 314,715 | $ (2,436,352) | $ 1,768,165 |
[1]See Note 4 for a discussion of related party transactions and arrangements.[2]See Note 5 for a discussion of income tax expense.[3]See Note 9 for a discussion of affiliated investments. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning Balance | $ 53,694,167 | $ 62,938,908 | $ 64,190,472 |
Net investment income | 1,666,934 | 1,789,618 | 1,923,427 |
Net realized gain (loss) on investments | (4,345,706) | 329,081 | (3,479,546) |
Net change in unrealized appreciation (depreciation) on investments | 4,132,719 | (6,183,873) | 7,262,262 |
Repurchase of common stock | $ (3,079,032) | (2,862,936) | (4,643,769) |
Repurchase of common stock, Shares | 0 | ||
Reinvestment of common stock | $ 1,127,725 | 1,209,200 | 1,319,241 |
Distributions to stockholders | (1,629,804) | (1,526,458) | (3,633,179) |
Distributions to stockholders from return of capital | (1,757,477) | (1,999,373) | 0 |
Total increase (decrease) | (3,884,641) | (9,244,741) | (1,251,564) |
Ending Balance | $ 49,809,526 | $ 53,694,167 | $ 62,938,908 |
Distributions to stockholders per share | $ 0.36 | $ 0.36 | $ 0.36 |
Common Stock [Member] | |||
Beginning Balance | $ 9,678 | $ 9,956 | $ 10,475 |
Beginning Balance, Shares | 9,677,593 | 9,956,228 | 10,475,168 |
Repurchase of common stock | $ (580) | $ (478) | $ (728) |
Repurchase of common stock, Shares | (578,793) | (478,708) | (727,993) |
Reinvestment of common stock | $ 211 | $ 200 | $ 209 |
Reinvestment of common stock, Shares | 210,605 | 200,073 | 209,053 |
Total increase (decrease) | $ (369) | $ (278) | $ (519) |
Total increase (decrease), Shares | (368,188) | (278,635) | (518,940) |
Ending Balance | $ 9,309 | $ 9,678 | $ 9,956 |
Ending Balance, Shares | 9,309,405 | 9,677,593 | 9,956,228 |
Paid in Capital in Excess of Par [Member] | |||
Beginning Balance | $ 86,949,376 | $ 91,135,719 | $ 92,354,786 |
Repurchase of common stock | (3,078,452) | (2,862,458) | (4,643,041) |
Reinvestment of common stock | 1,127,514 | 1,209,000 | 1,319,032 |
Distributions to stockholders from return of capital | (1,757,477) | (1,999,373) | |
Total increase (decrease) | (3,708,415) | (3,652,831) | (3,324,009) |
Tax reclassification of stockholders' equity in accordance with GAAP | (19,894) | (533,512) | 2,104,942 |
Ending Balance | 83,221,067 | 86,949,376 | 91,135,719 |
Distributable Earnings [Member] | |||
Beginning Balance | (33,264,887) | (28,206,767) | (28,174,789) |
Net investment income | 1,666,934 | 1,789,618 | 1,923,427 |
Net realized gain (loss) on investments | (4,345,706) | 329,081 | (3,479,546) |
Net change in unrealized appreciation (depreciation) on investments | 4,132,719 | (6,183,873) | 7,262,262 |
Distributions to stockholders | (1,629,804) | (1,526,458) | (3,633,179) |
Total increase (decrease) | (175,857) | (5,591,632) | 2,072,964 |
Tax reclassification of stockholders' equity in accordance with GAAP | 19,894 | 533,512 | (2,104,942) |
Ending Balance | $ (33,420,850) | $ (33,264,887) | $ (28,206,767) |
Distributions to stockholders per share | $ 0.36 | $ 0.36 | $ 0.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flows provided by (used in) operating activities | ||||
Net increase (decrease) in net assets resulting from operations | $ 1,453,947 | $ (4,065,174) | $ 5,706,143 | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||
Purchases of investment securities | (4,569,498) | (9,519,074) | (8,119,981) | |
Payment-in-kind investments | (131,372) | (193,003) | (100,908) | |
Proceeds from sales and principal repayments of investment securities | 8,576,616 | 11,143,514 | 17,408,129 | |
Net realized gain (loss) on investments | 4,345,706 | (329,081) | 3,479,546 | |
Net change in unrealized (appreciation) depreciation on investments | (4,132,719) | 6,183,873 | (7,262,262) | |
Amortization of premium/discount, net | (208,304) | (343,633) | (972,220) | |
Change in operating assets and liabilities: | ||||
(Increase) decrease in receivable for investments sold | (8,953) | 990,537 | (990,537) | |
(Increase) decrease in dividends and interest receivable | (78,916) | 220,210 | (155,192) | |
(Increase) decrease in receivable from Adviser | (45,432) | 3,242 | 6,084 | |
(Increase) decrease in prepaid expenses | 10,632 | (2,683) | (13,222) | |
Increase (decrease) in payable for investments purchased | 53,304 | (301,369) | 301,369 | |
Increase (decrease) in payable to Adviser | (30,097) | (63,594) | (44,950) | |
(Increase) decrease in deferred tax asset | (13,020) | 0 | 0 | |
Increase (decrease) in accrued expenses and other liabilities | (78,274) | 299,558 | (155,884) | |
Net cash flows provided by (used in) operating activities | 5,143,620 | 4,023,323 | 9,086,115 | |
Cash flows provided by (used in) financing activities | ||||
Repurchase of common stock, net of payable | (3,079,032) | (2,862,936) | (4,643,769) | |
Distributions paid in cash | (2,292,690) | (2,341,712) | (2,360,642) | |
Net cash flows (used in) financing activities | (5,371,722) | (5,204,648) | (7,004,411) | |
Net increase (decrease) in cash and cash equivalents | (228,102) | (1,181,325) | 2,081,704 | |
Cash and cash equivalents | ||||
Beginning of the year | 1,629,846 | 2,811,171 | 729,467 | |
End of the year | 1,401,744 | 1,629,846 | 2,811,171 | |
Supplemental disclosure and non-cash financing activities | ||||
Paid-in-kind interest income | 131,372 | 193,003 | 100,908 | |
Reinvestment of distributions paid | 1,127,725 | 1,209,200 | 1,319,241 | |
Local and excise taxes paid | 58,473 | 36,426 | 87,200 | |
Affiliated investments [Member] | ||||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||
Net realized gain (loss) on investments | [1] | (68,709) | (262,564) | (611,450) |
Net change in unrealized (appreciation) depreciation on investments | [1] | (314,715) | 2,436,352 | (1,768,165) |
Unaffiliated investments [Member] | ||||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||
Net realized gain (loss) on investments | 4,414,415 | (66,517) | 4,090,996 | |
Net change in unrealized (appreciation) depreciation on investments | $ (3,818,004) | $ 3,747,521 | $ (5,494,097) | |
[1]See Note 9 for a discussion of affiliated investments. |
Consolidated Schedule of Invest
Consolidated Schedule of Investments - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |||
Schedule of Investments [Line Items] | |||||
Amortized Cost | $ 45,998,823 | $ 54,011,971 | |||
Fair Value | 49,413,286 | 53,293,715 | |||
Investment, Identifier [Axis]: Asset-Backed Securitie | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 84 | 7,036 | ||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 7,036 | |||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | Grayson Investor Corp. | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[6],[7] | 800 | [4],[5],[8] | 800 | [9],[10],[11] |
Amortized Cost | [1],[2],[3],[6],[7],[12] | 218,666 | [4],[5],[8] | 218,666 | [9],[10],[11] |
Fair Value | [1],[2],[3],[6],[7] | 84 | [4],[5],[8] | 7,023 | [9],[10],[11] |
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | PAMCO CLO 1997-1A B | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[6],[9],[10],[11],[13] | 295,435 | |||
Amortized Cost | [1],[2],[3],[6],[9],[10],[11],[12],[13] | 169,875 | |||
Fair Value | [1],[2],[3],[6],[9],[10],[11],[13] | 13 | |||
Investment, Identifier [Axis]: Common Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 15,961,319 | 19,514,684 | ||
Investment, Identifier [Axis]: Common Stocks | Chemicals | MPM Holdings Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12],[14] | 17,000 | [3],[4] | 17,000 | |
Fair Value | [1],[2],[14] | 42,500 | [3],[4] | 42,500 | |
Investment, Identifier [Axis]: Common Stocks | Energy | Quarternorth Energy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 1,563,928 | 981,428 | ||
Fair Value | [1],[2] | 2,237,604 | 1,591,692 | ||
Investment, Identifier [Axis]: Common Stocks | Financials | American Banknote Corp. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 2,062,500 | [4] | 2,062,500 | [9] |
Fair Value | [1],[2],[3],[14] | 3,536,250 | [4] | 1,732,500 | [9] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 4,606,797 | 10,012,730 | ||
Investment, Identifier [Axis]: Common Stocks | Real Estate Investment Trust (REIT) | NexPoint Residential Trust Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 701,237 | [8],[15] | 698,189 | [11],[16] |
Fair Value | [1],[2] | 805,987 | [8],[15] | 1,018,779 | [11],[16] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | IQHQ Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 1,500,000 | [4] | 1,500,000 | [9] |
Fair Value | [1],[2],[3] | 2,533,000 | [4] | 2,359,000 | [9] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | Nexpoint Real Estate Finance Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 2,479,467 | [15] | 9,960,591 | [16] |
Fair Value | [1],[2] | 2,073,797 | [15] | 7,653,730 | [16] |
Investment, Identifier [Axis]: Common Stocks | Service | Wayne Services Legacy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9],[12],[14] | 253,404 | |||
Fair Value | [1],[2],[3],[9],[14] | 2,269 | |||
Investment, Identifier [Axis]: Common Stocks | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 1,599,990 | [4] | 1,599,990 | [9] |
Fair Value | [1],[2],[3],[14] | 4,732,181 | [4] | 5,114,214 | [9] |
Investment, Identifier [Axis]: Corporate Bonds | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 727,523 | $ 2,704,917 | ||
Investment, Identifier [Axis]: Corporate Bonds | Consumer Discretionary | Vista Outdoor, Inc. | 4.50% | 03/15/2029 | |||||
Schedule of Investments [Line Items] | |||||
Base Rate Floor | [1],[2] | 4.50% | |||
Maturity Date | [1],[2] | Mar. 15, 2029 | |||
Principal Amount | [1],[2] | $ 500,000 | |||
Amortized Cost | [1],[2],[12] | 482,645 | |||
Fair Value | [1],[2] | 488,665 | |||
Investment, Identifier [Axis]: Corporate Bonds | Healthcare | Hadrian Merger Sub Inc. | 8.500% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[10] | 8.50% | |||
Maturity Date | [1],[2],[10] | May 01, 2026 | |||
Principal Amount | [1],[2],[10] | $ 2,728,000 | |||
Amortized Cost | [1],[2],[10],[12] | 2,460,536 | |||
Fair Value | [1],[2],[10] | 2,414,839 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 238,858 | $ 290,078 | ||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.375% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[11] | 6.375% | |||
Maturity Date | [1],[2],[11] | May 01, 2026 | |||
Principal Amount | [1],[2],[11] | $ 116,808 | |||
Amortized Cost | [1],[2],[11],[12] | 313,455 | |||
Fair Value | [1],[2],[11] | $ 107,648 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.38% | 05/01/2026 | |||||
Schedule of Investments [Line Items] | |||||
Base Rate Floor | [1],[2] | 6.38% | |||
Maturity Date | [1],[2] | May 01, 2026 | |||
Principal Amount | [1],[2],[8] | $ 116,808 | |||
Amortized Cost | [1],[2],[8],[12] | 313,455 | |||
Fair Value | [1],[2],[8] | $ 99,711 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.375% | 5/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[11] | 8.375% | |||
Maturity Date | [1],[2],[11] | May 01, 2027 | |||
Principal Amount | [1],[2],[11] | $ 214,073 | |||
Amortized Cost | [1],[2],[11],[12] | 584,792 | |||
Fair Value | [1],[2],[11] | 182,430 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.38% | 05/01/2027 | |||||
Schedule of Investments [Line Items] | |||||
Base Rate Floor | [1],[2] | 8.38% | |||
Maturity Date | [1],[2] | May 01, 2027 | |||
Principal Amount | [1],[2],[8] | $ 214,073 | |||
Amortized Cost | [1],[2],[8],[12] | 584,792 | |||
Fair Value | [1],[2],[8] | 139,147 | |||
Investment, Identifier [Axis]: LLC Interests | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 10,370,499 | 4,689,242 | ||
Investment, Identifier [Axis]: LLC Interests | Consumer Products | US Gaming LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 1,700,000 | [4] | 2,000,000 | [9] |
Fair Value | [1],[2],[3],[14] | 3,016,752 | [4] | 3,088,750 | [9] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 7,353,747 | 1,600,492 | ||
Investment, Identifier [Axis]: LLC Interests | Real Estate | NexPoint Capital REIT LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 8,418,892 | [4],[15] | 1,215,000 | [9],[16] |
Fair Value | [1],[2],[3] | 7,014,774 | [4],[15] | 1,176,024 | [9],[16] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | SFR WLIF III LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 371,111 | [4],[15] | 451,112 | [9],[16] |
Fair Value | [1],[2],[3] | 338,973 | [4],[15] | 424,468 | [9],[16] |
Investment, Identifier [Axis]: Net Assets | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 49,809,526 | 53,694,167 | ||
Investment, Identifier [Axis]: Preferred Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 11,822,375 | 11,967,910 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 1,186,250 | 1,440,625 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2] | 750 | |||
Amortized Cost | [1],[2],[12] | 750,000 | |||
Fair Value | [1],[2] | 686,250 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.000 % | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2] | 750 | |||
Amortized Cost | [1],[2],[12] | 750,000 | |||
Fair Value | [1],[2] | 740,625 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2] | 1,000 | |||
Amortized Cost | [1],[2],[12] | 1,000,000 | |||
Fair Value | [1],[2] | 500,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.000 % | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2] | 1,000 | |||
Amortized Cost | [1],[2],[12] | 1,000,000 | |||
Fair Value | [1],[2] | 700,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 10,636,125 | 10,527,285 | ||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[4] | 72,065 | |||
Amortized Cost | [1],[2],[3],[4],[12] | 799,994 | |||
Fair Value | [1],[2],[3],[4] | 928,197 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[9] | 72,065 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 799,994 | |||
Fair Value | [1],[2],[3],[9] | 799,994 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[4] | 135,122 | |||
Amortized Cost | [1],[2],[3],[4],[12] | 1,199,993 | |||
Fair Value | [1],[2],[3],[4] | 1,644,435 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[9] | 135,122 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 1,199,993 | |||
Fair Value | [1],[2],[3],[9] | 1,499,989 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[4],[17] | 1,863,468 | |||
Amortized Cost | [1],[2],[3],[4],[12],[17] | 4,080,000 | |||
Fair Value | [1],[2],[3],[4],[17] | 4,452,382 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[9] | 1,619,048 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 4,080,000 | |||
Fair Value | [1],[2],[3],[9] | 4,549,525 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[9] | 1,111,111 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 4,000,000 | |||
Fair Value | [1],[2],[3],[9] | 3,677,777 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[4],[17] | 1,311,091 | |||
Amortized Cost | [1],[2],[3],[4],[12],[17] | 4,000,000 | |||
Fair Value | [1],[2],[3],[4],[17] | 3,611,111 | |||
Investment, Identifier [Axis]: Senior Secured Loans | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 10,258,517 | [18] | 14,228,193 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Bioplastics | PlantSwitch, Inc. Convertible Promissory Note (First Lien Term Loan) | 10% Fixed | 9/20/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 10% | |||
Maturity Date | [1],[2],[3],[4],[18] | Sep. 20, 2026 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 2,000,000 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 2,000,000 | |||
Fair Value | [1],[2],[3],[4],[18] | 2,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 6,592,574 | [18] | $ 13,158,950 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | L + 375 | 4.93 % | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[11],[19],[20] | 375% | |||
Base Rate Floor | [1],[2],[11],[19],[20] | 4.93% | |||
Maturity Date | [1],[2],[11],[19],[20] | Feb. 27, 2026 | |||
Principal Amount | [1],[2],[11],[19],[20] | $ 1,468,909 | |||
Amortized Cost | [1],[2],[11],[12],[19],[20] | 1,465,131 | |||
Fair Value | [1],[2],[11],[19],[20] | $ 1,318,346 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | SOFR + 375 | 5.37% | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[8],[18],[21] | 375% | |||
Base Rate Floor | [1],[2],[8],[18],[21] | 5.87% | |||
Maturity Date | [1],[2],[8],[18],[21] | Feb. 27, 2026 | |||
Principal Amount | [1],[2],[8],[18],[21] | $ 1,453,650 | |||
Amortized Cost | [1],[2],[8],[12],[18],[21] | 1,450,998 | |||
Fair Value | [1],[2],[8],[18],[21] | $ 1,438,750 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical Inc (First Lien Term Loan) | 14% Fixed |4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[9],[19],[22] | 14% | |||
Maturity Date | [1],[2],[3],[9],[19],[22] | Apr. 07, 2026 | |||
Principal Amount | [1],[2],[3],[9],[19],[22] | $ 3,000,000 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19],[22] | 2,926,520 | |||
Fair Value | [1],[2],[3],[9],[19],[22] | $ 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical, Inc (First Lien Term Loan) | 11% Fixed | 4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 11% | |||
Maturity Date | [1],[2],[3],[4],[18] | Apr. 07, 2026 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 3,000,000 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 2,945,554 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CNT Holdings I Corp (Second Lien Term Loan) | L + 675 | 3.74 % | 11/6/2028 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[22] | 675% | |||
Base Rate Floor | [1],[2],[19],[22] | 3.74% | |||
Maturity Date | [1],[2],[19],[22] | Nov. 06, 2028 | |||
Principal Amount | [1],[2],[19],[22] | $ 1,500,000 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 1,494,084 | |||
Fair Value | [1],[2],[19],[22] | $ 1,422,503 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health Inc. (First Lien Term Loan) | L + 675 | 12.18 % | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[22] | 675% | |||
Base Rate Floor | [1],[2],[19],[22] | 12.18% | |||
Maturity Date | [1],[2],[19],[22] | Sep. 30, 2027 | |||
Principal Amount | [1],[2],[19],[22] | $ 668,605 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 576,001 | |||
Fair Value | [1],[2],[19],[22] | $ 511,483 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health, Inc. (First Lien Term Loan) | SOFR + 750 | 5.36% | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[18],[23] | 750% | |||
Base Rate Floor | [1],[2],[18],[23] | 5.36% | |||
Maturity Date | [1],[2],[18],[23] | Sep. 30, 2027 | |||
Principal Amount | [1],[2],[18],[23] | $ 658,467 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 581,366 | |||
Fair Value | [1],[2],[18],[23] | $ 514,635 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Delayed Draw Term Loan) | 4% Fixed | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19] | 4% | |||
Maturity Date | [1],[2],[19] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[19] | $ 333,333 | |||
Amortized Cost | [1],[2],[12],[19] | 333,817 | |||
Fair Value | [1],[2],[19] | $ 282,500 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Term Loan) | L + 400 | 4.41 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[24] | 400% | |||
Base Rate Floor | [1],[2],[19],[24] | 4.41% | |||
Maturity Date | [1],[2],[19],[24] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[19],[24] | $ 1,613,305 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 1,615,775 | |||
Fair Value | [1],[2],[19],[24] | $ 1,367,276 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Delayed Draw Term Loan) | SOFR + 400 | 5.38% | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[18],[23] | 400% | |||
Base Rate Floor | [1],[2],[18],[23] | 5.38% | |||
Maturity Date | [1],[2],[18],[23] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 333,333 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 333,679 | |||
Fair Value | [1],[2],[18],[23] | $ 261,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Term Loan) | SOFR + 400 | 5.38 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[18],[23] | 400% | |||
Base Rate Floor | [1],[2],[18],[23] | 5.38% | |||
Maturity Date | [1],[2],[18],[23] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 1,597,232 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 1,599,049 | |||
Fair Value | [1],[2],[18],[23] | $ 1,250,633 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Envision Healthcare Corp. (First Lien Term Loan) | L + 375 | 4.07 % | 10/10/2025 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[24] | 375% | |||
Base Rate Floor | [1],[2],[19],[24] | 4.07% | |||
Maturity Date | [1],[2],[19],[24] | Oct. 10, 2025 | |||
Principal Amount | [1],[2],[19],[24] | $ 4,518,572 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 3,709,077 | |||
Fair Value | [1],[2],[19],[24] | $ 1,354,645 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | RxBenefits Inc. (First Lien Term Loan) | L + 450 | 2.11 % | 12/20/2027 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[20] | 450% | |||
Base Rate Floor | [1],[2],[19],[20] | 2.11% | |||
Maturity Date | [1],[2],[19],[20] | Dec. 20, 2027 | |||
Principal Amount | [1],[2],[19],[20] | $ 1,993,177 | |||
Amortized Cost | [1],[2],[12],[19],[20] | 1,963,107 | |||
Fair Value | [1],[2],[19],[20] | $ 1,888,535 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | L + 675 | 4.07 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[24] | 675% | |||
Base Rate Floor | [1],[2],[19],[24] | 4.07% | |||
Maturity Date | [1],[2],[19],[24] | Jun. 26, 2026 | |||
Principal Amount | [1],[2],[19],[24] | $ 1,555,556 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 1,481,972 | |||
Fair Value | [1],[2],[19],[24] | $ 1,229,869 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | SOFR + 675 | 5.64 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[18],[23] | 675% | |||
Base Rate Floor | [1],[2],[18],[23] | 5.64% | |||
Maturity Date | [1],[2],[18],[23] | Jun. 26, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 1,555,556 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 1,500,056 | |||
Fair Value | [1],[2],[18],[23] | $ 127,556 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Wellpath Holdings Inc. (First Lien Term Loan) | L + 550 | 4.41 % | 10/1/2025 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[19],[22] | 550% | |||
Base Rate Floor | [1],[2],[19],[22] | 4.41% | |||
Maturity Date | [1],[2],[19],[22] | Oct. 01, 2025 | |||
Principal Amount | [1],[2],[19],[22] | $ 984,615 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 980,197 | |||
Fair Value | [1],[2],[19],[22] | 783,793 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Real Estate | NexPoint Capital REIT, LLC (First Lien Term Loan) | PRIME + 100 | 8.00% | 3/25/2025 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[15],[18] | 100% | |||
Base Rate Floor | [1],[2],[3],[4],[15],[18] | 8% | |||
Maturity Date | [1],[2],[3],[4],[15],[18] | Mar. 25, 2025 | |||
Principal Amount | [1],[2],[3],[4],[15],[18] | $ 463,314 | |||
Amortized Cost | [1],[2],[3],[4],[12],[15],[18] | 463,314 | |||
Fair Value | [1],[2],[3],[4],[15],[18] | 463,314 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 1,202,629 | [18] | $ 1,069,243 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan E) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 12% | |||
Base Rate Floor | [1],[2],[3],[4],[18] | 12% | |||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 915,322 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 915,322 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 912,118 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan F) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 12% | |||
Base Rate Floor | [1],[2],[3],[4],[18] | 12% | |||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 216,696 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 216,696 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 215,938 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan G) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 12% | |||
Base Rate Floor | [1],[2],[3],[4],[18] | 12% | |||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 38,714 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 38,714 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 38,579 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan H) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[4],[18] | 12% | |||
Base Rate Floor | [1],[2],[3],[4],[18] | 12% | |||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 36,121 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 36,121 | |||
Fair Value | [1],[2],[3],[4],[18] | 35,994 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan E) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[9],[19] | 11% | |||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 815,685 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 815,684 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 810,953 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan F) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[9],[19] | 11% | |||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 193,108 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 193,108 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 191,988 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan G) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[9],[19] | 11% | |||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 34,500 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 34,500 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 34,300 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan H) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Interest Rate | [1],[2],[3],[9],[19] | 11% | |||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 32,189 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 32,189 | |||
Fair Value | [1],[2],[3],[9],[19] | 32,002 | |||
Investment, Identifier [Axis]: Total Investments | Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2],[25] | 1,160,707 | 1,420,428 | ||
Investment, Identifier [Axis]: Total Investments | Other Assets & Liabilities net | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | (764,467) | (1,019,976) | ||
Investment, Identifier [Axis]: Warrants | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 272,969 | 181,733 | ||
Investment, Identifier [Axis]: Warrants | Energy | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 266,500 | $ 161,249 | ||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[14] | 5,738 | |||
Amortized Cost | [1],[2],[12],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | 133,888 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[14] | Aug. 27, 2029 | |||
Principal Amount | [1],[2],[14] | $ 5,738 | |||
Amortized Cost | [1],[2],[12],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | $ 64,553 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[14] | 11,051 | |||
Amortized Cost | [1],[2],[12],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | 132,612 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[14] | Aug. 27, 2029 | |||
Principal Amount | [1],[2],[14] | $ 11,051 | |||
Amortized Cost | [1],[2],[12],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | $ 96,696 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[8],[14] | 2,875 | |||
Amortized Cost | [1],[2],[8],[12],[14] | 52,987 | |||
Fair Value | [1],[2],[8],[14] | 6,469 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | 5/1/2039 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[11],[14] | May 01, 2039 | |||
Principal Amount | [1],[2],[11],[14] | $ 2,875 | |||
Amortized Cost | [1],[2],[11],[12],[14] | 52,987 | |||
Fair Value | [1],[2],[11],[14] | 20,484 | |||
Investment, Identifier [Axis]: Warrants | Total Investments | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 45,998,823 | 54,011,971 | ||
Fair Value | [1],[2] | $ 49,413,286 | $ 53,293,715 | ||
[1]All investments are denominated in United States Dollars.[2]Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.[3]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[4]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $38,516,582 or 77.3% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2023.[5]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2023, these securities amounted to $84, or 0.0% of net assets.[6]Securities of collateralized loan obligations where an affiliate of the Adviser serves as collateral manager.[7]The investment is considered to be the equity tranche of the issuer.[8]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2023.[9]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022.[10]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2022, these securities amounted to $2,421,875, or 4.5% of net assets.[11]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[12]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[13]The issuer is in default of its payment obligation, or is in danger of default.[14]Non-income producing security.[15]Represents an affiliated issuer. Assets with a total aggregate market value of $10,696,845, or 21.5% of net assets, were affiliated with the Company as of December 31, 2023. See Note 9.[16]Represents an affiliated issuer. Assets with a total aggregate market value of $10,273,001, or 19.1% of net assets, were affiliated with the Company as of December 31, 2022. See Note 10.[17]All or a portion of this security is held through BDC Sapience Holdco, LLC (See Note 1)[18]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2023. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[19]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (“LIBOR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2022. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[20]The interest rate on these investments is subject to a base rate of 6-Month LIBOR, which at December 31, 2022 was 5.14%. The LIBOR rate used to calculate interest is the higher of the prevailing 6 month LIBOR rate in effect on the date of the semiannual reset, or the LIBOR base rate floor shown.[21]The interest rate on these investments is subject to a base rate of 6-Month SOFR which at December 31, 2023 was 5.16%. The SOFR rate used to calculate interest is the higher of the prevailing 6 month SOFR rate in effect on the date of the semiannual reset, or the SOFR base rate floor shown.[22]The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at December 31, 2022 was 4.77%. The LIBOR rate used to calculate interest is the higher of the prevailing 3 month LIBOR rate in effect on the date of the quarterly reset, or the LIBOR base rate floor shown.[23]The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at December 31, 2023 was 5.33%[24]The interest rate on these investments is subject to a base rate of 1-Month LIBOR, which at December 31, 2022 was 4.39%. The LIBOR rate used to calculate interest is the higher of the prevailing 1 month LIBOR rate in effect on the date of the monthly reset, or the LIBOR base rate floor shown.[25]State Street U.S. Government Money Market Fund. |
Consolidated Schedule of Inve_2
Consolidated Schedule of Investments 1 - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |||
Schedule of Investments [Line Items] | |||||
Shares | 1,453,556 | 956,291 | |||
Amortized Cost | $ 45,998,823 | $ 54,011,971 | |||
Fair Value | 49,413,286 | 53,293,715 | |||
Investment, Identifier [Axis]: Asset-Backed Securitie | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 84 | 7,036 | ||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 7,036 | |||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | Grayson Investor Corp. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[7],[8] | 218,666 | [5],[6],[9] | 218,666 | [10],[11],[12] |
Fair Value | [1],[2],[4],[7],[8] | 84 | [5],[6],[9] | 7,023 | [10],[11],[12] |
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | PAMCO CLO 1997-1A B | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[7],[10],[11],[12],[13] | 169,875 | |||
Fair Value | [1],[2],[4],[7],[10],[11],[12],[13] | 13 | |||
Investment, Identifier [Axis]: Common Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 15,961,319 | $ 19,514,684 | ||
Investment, Identifier [Axis]: Common Stocks | Chemicals | MPM Holdings Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[14] | 8,500 | [4],[5] | 8,500 | |
Amortized Cost | [1],[2],[3],[14] | $ 17,000 | [4],[5] | $ 17,000 | |
Fair Value | [1],[2],[14] | $ 42,500 | [4],[5] | $ 42,500 | |
Investment, Identifier [Axis]: Common Stocks | Energy | Quarternorth Energy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2] | 16,534 | 11,534 | ||
Amortized Cost | [1],[2],[3] | $ 1,563,928 | $ 981,428 | ||
Fair Value | [1],[2] | $ 2,237,604 | $ 1,591,692 | ||
Investment, Identifier [Axis]: Common Stocks | Financials | American Banknote Corp. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4],[14] | 750,000 | [5] | 750,000 | [10] |
Amortized Cost | [1],[2],[3],[4],[14] | $ 2,062,500 | [5] | $ 2,062,500 | [10] |
Fair Value | [1],[2],[4],[14] | 3,536,250 | [5] | 1,732,500 | [10] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 4,606,797 | $ 10,012,730 | ||
Investment, Identifier [Axis]: Common Stocks | Real Estate Investment Trust (REIT) | NexPoint Residential Trust Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2] | 23,409 | [9],[15] | 23,409 | [12],[16] |
Amortized Cost | [1],[2],[3] | $ 701,237 | [9],[15] | $ 698,189 | [12],[16] |
Fair Value | [1],[2] | $ 805,987 | [9],[15] | $ 1,018,779 | [12],[16] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | IQHQ Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4] | 100,000 | [5] | 100,000 | [10] |
Amortized Cost | [1],[2],[3],[4] | $ 1,500,000 | [5] | $ 1,500,000 | [10] |
Fair Value | [1],[2],[4] | $ 2,533,000 | [5] | $ 2,359,000 | [10] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | Nexpoint Real Estate Finance Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2] | 131,670 | [15] | 481,670 | [16] |
Amortized Cost | [1],[2],[3] | $ 2,479,467 | [15] | $ 9,960,591 | [16] |
Fair Value | [1],[2] | $ 2,073,797 | [15] | $ 7,653,730 | [16] |
Investment, Identifier [Axis]: Common Stocks | Service | Wayne Services Legacy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4],[10],[14] | 237 | |||
Amortized Cost | [1],[2],[3],[4],[10],[14] | $ 253,404 | |||
Fair Value | [1],[2],[4],[10],[14] | $ 2,269 | |||
Investment, Identifier [Axis]: Common Stocks | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4],[14] | 14,035 | [5] | 14,035 | [10] |
Amortized Cost | [1],[2],[3],[4],[14] | $ 1,599,990 | [5] | $ 1,599,990 | [10] |
Fair Value | [1],[2],[4],[14] | 4,732,181 | [5] | 5,114,214 | [10] |
Investment, Identifier [Axis]: Corporate Bonds | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 727,523 | 2,704,917 | ||
Investment, Identifier [Axis]: Corporate Bonds | Consumer Discretionary | Vista Outdoor, Inc. | 4.50% | 03/15/2029 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 482,645 | |||
Fair Value | [1],[2] | 488,665 | |||
Investment, Identifier [Axis]: Corporate Bonds | Healthcare | Hadrian Merger Sub Inc. | 8.500% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[11] | 2,460,536 | |||
Fair Value | [1],[2],[11] | 2,414,839 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 238,858 | 290,078 | ||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.375% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 313,455 | |||
Fair Value | [1],[2],[12] | 107,648 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.38% | 05/01/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9] | 313,455 | |||
Fair Value | [1],[2],[9] | 99,711 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.375% | 5/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 584,792 | |||
Fair Value | [1],[2],[12] | 182,430 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.38% | 05/01/2027 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9] | 584,792 | |||
Fair Value | [1],[2],[9] | 139,147 | |||
Investment, Identifier [Axis]: LLC Interests | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 10,370,499 | $ 4,689,242 | ||
Investment, Identifier [Axis]: LLC Interests | Consumer Products | US Gaming LLC | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4],[14] | 1,700 | [5] | 2,000 | [10] |
Amortized Cost | [1],[2],[3],[4],[14] | $ 1,700,000 | [5] | $ 2,000,000 | [10] |
Fair Value | [1],[2],[4],[14] | 3,016,752 | [5] | 3,088,750 | [10] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 7,353,747 | $ 1,600,492 | ||
Investment, Identifier [Axis]: LLC Interests | Real Estate | NexPoint Capital REIT LLC | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4] | 737 | [5],[15] | 100 | [10],[16] |
Amortized Cost | [1],[2],[3],[4] | $ 8,418,892 | [5],[15] | $ 1,215,000 | [10],[16] |
Fair Value | [1],[2],[4] | $ 7,014,774 | [5],[15] | $ 1,176,024 | [10],[16] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | SFR WLIF III LLC | |||||
Schedule of Investments [Line Items] | |||||
Shares | [1],[2],[4] | 371,112 | [5],[15] | 451,112 | [10],[16] |
Amortized Cost | [1],[2],[3],[4] | $ 371,111 | [5],[15] | $ 451,112 | [10],[16] |
Fair Value | [1],[2],[4] | 338,973 | [5],[15] | 424,468 | [10],[16] |
Investment, Identifier [Axis]: Net Assets | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 49,809,526 | 53,694,167 | ||
Investment, Identifier [Axis]: Preferred Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 11,822,375 | 11,967,910 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 1,186,250 | 1,440,625 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 750,000 | |||
Fair Value | [1],[2] | 686,250 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.000 % | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 750,000 | |||
Fair Value | [1],[2] | 740,625 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 1,000,000 | |||
Fair Value | [1],[2] | 500,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.000 % | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 1,000,000 | |||
Fair Value | [1],[2] | 700,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 10,636,125 | 10,527,285 | ||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5] | 799,994 | |||
Fair Value | [1],[2],[4],[5] | 928,197 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10] | 799,994 | |||
Fair Value | [1],[2],[4],[10] | 799,994 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5] | 1,199,993 | |||
Fair Value | [1],[2],[4],[5] | 1,644,435 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10] | 1,199,993 | |||
Fair Value | [1],[2],[4],[10] | 1,499,989 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[17] | 4,080,000 | |||
Fair Value | [1],[2],[4],[5],[17] | 4,452,382 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10] | 4,080,000 | |||
Fair Value | [1],[2],[4],[10] | 4,549,525 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10] | 4,000,000 | |||
Fair Value | [1],[2],[4],[10] | 3,677,777 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[17] | 4,000,000 | |||
Fair Value | [1],[2],[4],[5],[17] | 3,611,111 | |||
Investment, Identifier [Axis]: Senior Secured Loans | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 10,258,517 | [18] | 14,228,193 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Bioplastics | PlantSwitch, Inc. Convertible Promissory Note (First Lien Term Loan) | 10% Fixed | 9/20/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 2,000,000 | |||
Fair Value | [1],[2],[4],[5],[18] | 2,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 6,592,574 | [18] | 13,158,950 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | L + 375 | 4.93 % | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[19],[20] | 1,465,131 | |||
Fair Value | [1],[2],[12],[19],[20] | 1,318,346 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | SOFR + 375 | 5.37% | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9],[18],[21] | 1,450,998 | |||
Fair Value | [1],[2],[9],[18],[21] | 1,438,750 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical Inc (First Lien Term Loan) | 14% Fixed |4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10],[19],[22] | 2,926,520 | |||
Fair Value | [1],[2],[4],[10],[19],[22] | 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical, Inc (First Lien Term Loan) | 11% Fixed | 4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 2,945,554 | |||
Fair Value | [1],[2],[4],[5],[18] | 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CNT Holdings I Corp (Second Lien Term Loan) | L + 675 | 3.74 % | 11/6/2028 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[22] | 1,494,084 | |||
Fair Value | [1],[2],[19],[22] | 1,422,503 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health Inc. (First Lien Term Loan) | L + 675 | 12.18 % | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[22] | 576,001 | |||
Fair Value | [1],[2],[19],[22] | 511,483 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health, Inc. (First Lien Term Loan) | SOFR + 750 | 5.36% | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[18],[23] | 581,366 | |||
Fair Value | [1],[2],[18],[23] | 514,635 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Delayed Draw Term Loan) | 4% Fixed | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19] | 333,817 | |||
Fair Value | [1],[2],[19] | 282,500 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Term Loan) | L + 400 | 4.41 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[24] | 1,615,775 | |||
Fair Value | [1],[2],[19],[24] | 1,367,276 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Delayed Draw Term Loan) | SOFR + 400 | 5.38% | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[18],[23] | 333,679 | |||
Fair Value | [1],[2],[18],[23] | 261,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Term Loan) | SOFR + 400 | 5.38 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[18],[23] | 1,599,049 | |||
Fair Value | [1],[2],[18],[23] | 1,250,633 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Envision Healthcare Corp. (First Lien Term Loan) | L + 375 | 4.07 % | 10/10/2025 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[24] | 3,709,077 | |||
Fair Value | [1],[2],[19],[24] | 1,354,645 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | RxBenefits Inc. (First Lien Term Loan) | L + 450 | 2.11 % | 12/20/2027 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[20] | 1,963,107 | |||
Fair Value | [1],[2],[19],[20] | 1,888,535 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | L + 675 | 4.07 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[24] | 1,481,972 | |||
Fair Value | [1],[2],[19],[24] | 1,229,869 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | SOFR + 675 | 5.64 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[18],[23] | 1,500,056 | |||
Fair Value | [1],[2],[18],[23] | 127,556 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Wellpath Holdings Inc. (First Lien Term Loan) | L + 550 | 4.41 % | 10/1/2025 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[19],[22] | 980,197 | |||
Fair Value | [1],[2],[19],[22] | 783,793 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Real Estate | NexPoint Capital REIT, LLC (First Lien Term Loan) | PRIME + 100 | 8.00% | 3/25/2025 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[15],[18] | 463,314 | |||
Fair Value | [1],[2],[4],[5],[15],[18] | 463,314 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 1,202,629 | [18] | 1,069,243 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan E) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 915,322 | |||
Fair Value | [1],[2],[4],[5],[18] | 912,118 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan F) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 216,696 | |||
Fair Value | [1],[2],[4],[5],[18] | 215,938 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan G) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 38,714 | |||
Fair Value | [1],[2],[4],[5],[18] | 38,579 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan H) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[5],[18] | 36,121 | |||
Fair Value | [1],[2],[4],[5],[18] | 35,994 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan E) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10],[19] | 815,684 | |||
Fair Value | [1],[2],[4],[10],[19] | 810,953 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan F) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10],[19] | 193,108 | |||
Fair Value | [1],[2],[4],[10],[19] | 191,988 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan G) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10],[19] | 34,500 | |||
Fair Value | [1],[2],[4],[10],[19] | 34,300 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan H) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[4],[10],[19] | 32,189 | |||
Fair Value | [1],[2],[4],[10],[19] | 32,002 | |||
Investment, Identifier [Axis]: Total Investments | Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2],[25] | 1,160,707 | 1,420,428 | ||
Investment, Identifier [Axis]: Total Investments | Other Assets & Liabilities net | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | (764,467) | (1,019,976) | ||
Investment, Identifier [Axis]: Warrants | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 272,969 | 181,733 | ||
Investment, Identifier [Axis]: Warrants | Energy | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 266,500 | 161,249 | ||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | 133,888 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | 64,553 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | 132,612 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | 96,696 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9],[14] | 52,987 | |||
Fair Value | [1],[2],[9],[14] | 6,469 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | 5/1/2039 | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 52,987 | |||
Fair Value | [1],[2],[12],[14] | 20,484 | |||
Investment, Identifier [Axis]: Warrants | Total Investments | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3] | 45,998,823 | 54,011,971 | ||
Fair Value | [1],[2] | $ 49,413,286 | $ 53,293,715 | ||
[1]All investments are denominated in United States Dollars.[2]Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.[3]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[4]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[5]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $38,516,582 or 77.3% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2023.[6]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2023, these securities amounted to $84, or 0.0% of net assets.[7]Securities of collateralized loan obligations where an affiliate of the Adviser serves as collateral manager.[8]The investment is considered to be the equity tranche of the issuer.[9]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2023.[10]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022.[11]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2022, these securities amounted to $2,421,875, or 4.5% of net assets.[12]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[13]The issuer is in default of its payment obligation, or is in danger of default.[14]Non-income producing security.[15]Represents an affiliated issuer. Assets with a total aggregate market value of $10,696,845, or 21.5% of net assets, were affiliated with the Company as of December 31, 2023. See Note 9.[16]Represents an affiliated issuer. Assets with a total aggregate market value of $10,273,001, or 19.1% of net assets, were affiliated with the Company as of December 31, 2022. See Note 10.[17]All or a portion of this security is held through BDC Sapience Holdco, LLC (See Note 1)[18]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2023. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[19]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (“LIBOR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2022. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[20]The interest rate on these investments is subject to a base rate of 6-Month LIBOR, which at December 31, 2022 was 5.14%. The LIBOR rate used to calculate interest is the higher of the prevailing 6 month LIBOR rate in effect on the date of the semiannual reset, or the LIBOR base rate floor shown.[21]The interest rate on these investments is subject to a base rate of 6-Month SOFR which at December 31, 2023 was 5.16%. The SOFR rate used to calculate interest is the higher of the prevailing 6 month SOFR rate in effect on the date of the semiannual reset, or the SOFR base rate floor shown.[22]The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at December 31, 2022 was 4.77%. The LIBOR rate used to calculate interest is the higher of the prevailing 3 month LIBOR rate in effect on the date of the quarterly reset, or the LIBOR base rate floor shown.[23]The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at December 31, 2023 was 5.33%[24]The interest rate on these investments is subject to a base rate of 1-Month LIBOR, which at December 31, 2022 was 4.39%. The LIBOR rate used to calculate interest is the higher of the prevailing 1 month LIBOR rate in effect on the date of the monthly reset, or the LIBOR base rate floor shown.[25]State Street U.S. Government Money Market Fund. |
Consolidated Schedule of Inve_3
Consolidated Schedule of Investments 2 - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | $ 45,998,823 | $ 54,011,971 | |||
Fair Value | 49,413,286 | 53,293,715 | |||
Investment, Identifier [Axis]: Asset-Backed Securitie | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 84 | 7,036 | ||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 7,036 | |||
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | Grayson Investor Corp. | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[6],[7] | 800 | [4],[5],[8] | 800 | [9],[10],[11] |
Amortized Cost | [1],[2],[3],[6],[7],[12] | 218,666 | [4],[5],[8] | 218,666 | [9],[10],[11] |
Fair Value | [1],[2],[3],[6],[7] | 84 | [4],[5],[8] | 7,023 | [9],[10],[11] |
Investment, Identifier [Axis]: Asset-Backed Securities | Financials | PAMCO CLO 1997-1A B | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[6],[9],[10],[11],[13] | 295,435 | |||
Amortized Cost | [1],[2],[3],[6],[9],[10],[11],[12],[13] | 169,875 | |||
Fair Value | [1],[2],[3],[6],[9],[10],[11],[13] | 13 | |||
Investment, Identifier [Axis]: Common Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 15,961,319 | 19,514,684 | ||
Investment, Identifier [Axis]: Common Stocks | Chemicals | MPM Holdings Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12],[14] | 17,000 | [3],[4] | 17,000 | |
Fair Value | [1],[2],[14] | 42,500 | [3],[4] | 42,500 | |
Investment, Identifier [Axis]: Common Stocks | Energy | Quarternorth Energy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 1,563,928 | 981,428 | ||
Fair Value | [1],[2] | 2,237,604 | 1,591,692 | ||
Investment, Identifier [Axis]: Common Stocks | Financials | American Banknote Corp. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 2,062,500 | [4] | 2,062,500 | [9] |
Fair Value | [1],[2],[3],[14] | 3,536,250 | [4] | 1,732,500 | [9] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 4,606,797 | 10,012,730 | ||
Investment, Identifier [Axis]: Common Stocks | Real Estate Investment Trust (REIT) | NexPoint Residential Trust Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 701,237 | [8],[15] | 698,189 | [11],[16] |
Fair Value | [1],[2] | 805,987 | [8],[15] | 1,018,779 | [11],[16] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | IQHQ Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 1,500,000 | [4] | 1,500,000 | [9] |
Fair Value | [1],[2],[3] | 2,533,000 | [4] | 2,359,000 | [9] |
Investment, Identifier [Axis]: Common Stocks | Real Estate | Nexpoint Real Estate Finance Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 2,479,467 | [15] | 9,960,591 | [16] |
Fair Value | [1],[2] | 2,073,797 | [15] | 7,653,730 | [16] |
Investment, Identifier [Axis]: Common Stocks | Service | Wayne Services Legacy Inc. | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[9],[12],[14] | 253,404 | |||
Fair Value | [1],[2],[3],[9],[14] | 2,269 | |||
Investment, Identifier [Axis]: Common Stocks | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 1,599,990 | [4] | 1,599,990 | [9] |
Fair Value | [1],[2],[3],[14] | 4,732,181 | [4] | 5,114,214 | [9] |
Investment, Identifier [Axis]: Corporate Bonds | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 727,523 | $ 2,704,917 | ||
Investment, Identifier [Axis]: Corporate Bonds | Consumer Discretionary | Vista Outdoor, Inc. | 4.50% | 03/15/2029 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2] | Mar. 15, 2029 | |||
Principal Amount | [1],[2] | $ 500,000 | |||
Amortized Cost | [1],[2],[12] | 482,645 | |||
Fair Value | [1],[2] | 488,665 | |||
Investment, Identifier [Axis]: Corporate Bonds | Healthcare | Hadrian Merger Sub Inc. | 8.500% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[10] | May 01, 2026 | |||
Principal Amount | [1],[2],[10] | $ 2,728,000 | |||
Amortized Cost | [1],[2],[10],[12] | 2,460,536 | |||
Fair Value | [1],[2],[10] | 2,414,839 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 238,858 | $ 290,078 | ||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.375% | 5/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[11] | May 01, 2026 | |||
Principal Amount | [1],[2],[11] | $ 116,808 | |||
Amortized Cost | [1],[2],[11],[12] | 313,455 | |||
Fair Value | [1],[2],[11] | $ 107,648 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 6.38% | 05/01/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2] | May 01, 2026 | |||
Principal Amount | [1],[2],[8] | $ 116,808 | |||
Amortized Cost | [1],[2],[8],[12] | 313,455 | |||
Fair Value | [1],[2],[8] | $ 99,711 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.375% | 5/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[11] | May 01, 2027 | |||
Principal Amount | [1],[2],[11] | $ 214,073 | |||
Amortized Cost | [1],[2],[11],[12] | 584,792 | |||
Fair Value | [1],[2],[11] | 182,430 | |||
Investment, Identifier [Axis]: Corporate Bonds | Media/Telecommunications | iHeartCommunications Inc. | 8.38% | 05/01/2027 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2] | May 01, 2027 | |||
Principal Amount | [1],[2],[8] | $ 214,073 | |||
Amortized Cost | [1],[2],[8],[12] | 584,792 | |||
Fair Value | [1],[2],[8] | 139,147 | |||
Investment, Identifier [Axis]: LLC Interests | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 10,370,499 | 4,689,242 | ||
Investment, Identifier [Axis]: LLC Interests | Consumer Products | US Gaming LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12],[14] | 1,700,000 | [4] | 2,000,000 | [9] |
Fair Value | [1],[2],[3],[14] | 3,016,752 | [4] | 3,088,750 | [9] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 7,353,747 | 1,600,492 | ||
Investment, Identifier [Axis]: LLC Interests | Real Estate | NexPoint Capital REIT LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 8,418,892 | [4],[15] | 1,215,000 | [9],[16] |
Fair Value | [1],[2],[3] | 7,014,774 | [4],[15] | 1,176,024 | [9],[16] |
Investment, Identifier [Axis]: LLC Interests | Real Estate | SFR WLIF III LLC | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[3],[12] | 371,111 | [4],[15] | 451,112 | [9],[16] |
Fair Value | [1],[2],[3] | 338,973 | [4],[15] | 424,468 | [9],[16] |
Investment, Identifier [Axis]: Net Assets | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 49,809,526 | 53,694,167 | ||
Investment, Identifier [Axis]: Preferred Stocks | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 11,822,375 | 11,967,910 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 1,186,250 | $ 1,440,625 | ||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2] | 10% | |||
Principal Amount | [1],[2] | $ 750 | |||
Amortized Cost | [1],[2],[12] | 750,000 | |||
Fair Value | [1],[2] | $ 686,250 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | 777 Partners LLC | 10.000 % | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2] | 10% | |||
Principal Amount | [1],[2] | $ 750 | |||
Amortized Cost | [1],[2],[12] | 750,000 | |||
Fair Value | [1],[2] | $ 740,625 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2] | 7% | |||
Principal Amount | [1],[2] | $ 1,000 | |||
Amortized Cost | [1],[2],[12] | 1,000,000 | |||
Fair Value | [1],[2] | 500,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Financials | United Fidelity Bank FSB | 7.000 % | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2] | 7% | |||
Principal Amount | [1],[2] | $ 1,000 | |||
Amortized Cost | [1],[2],[12] | 1,000,000 | |||
Fair Value | [1],[2] | 700,000 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 10,636,125 | $ 10,527,285 | ||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[4] | 8% | |||
Principal Amount | [1],[2],[3],[4] | $ 72,065 | |||
Amortized Cost | [1],[2],[3],[4],[12] | 799,994 | |||
Fair Value | [1],[2],[3],[4] | $ 928,197 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[9] | 8% | |||
Principal Amount | [1],[2],[3],[9] | $ 72,065 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 799,994 | |||
Fair Value | [1],[2],[3],[9] | $ 799,994 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[4] | 8% | |||
Principal Amount | [1],[2],[3],[4] | $ 135,122 | |||
Amortized Cost | [1],[2],[3],[4],[12] | 1,199,993 | |||
Fair Value | [1],[2],[3],[4] | $ 1,644,435 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Apnimed Inc. | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[9] | 8% | |||
Principal Amount | [1],[2],[3],[9] | $ 135,122 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 1,199,993 | |||
Fair Value | [1],[2],[3],[9] | $ 1,499,989 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[4],[17] | 8% | |||
Principal Amount | [1],[2],[3],[4],[17] | $ 1,863,468 | |||
Amortized Cost | [1],[2],[3],[4],[12],[17] | 4,080,000 | |||
Fair Value | [1],[2],[3],[4],[17] | $ 4,452,382 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) | 8.000 % | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[9] | 8% | |||
Principal Amount | [1],[2],[3],[9] | $ 1,619,048 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 4,080,000 | |||
Fair Value | [1],[2],[3],[9] | 4,549,525 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[3],[9] | 1,111,111 | |||
Amortized Cost | [1],[2],[3],[9],[12] | 4,000,000 | |||
Fair Value | [1],[2],[3],[9] | 3,677,777 | |||
Investment, Identifier [Axis]: Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) | 8.00% | |||||
Schedule of Investments [Line Items] | |||||
Preferred Dividend Rate | [1],[2],[3],[4],[17] | 8% | |||
Principal Amount | [1],[2],[3],[4],[17] | $ 1,311,091 | |||
Amortized Cost | [1],[2],[3],[4],[12],[17] | 4,000,000 | |||
Fair Value | [1],[2],[3],[4],[17] | 3,611,111 | |||
Investment, Identifier [Axis]: Senior Secured Loans | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 10,258,517 | [18] | 14,228,193 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Bioplastics | PlantSwitch, Inc. Convertible Promissory Note (First Lien Term Loan) | 10% Fixed | 9/20/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Sep. 20, 2026 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 2,000,000 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 2,000,000 | |||
Fair Value | [1],[2],[3],[4],[18] | 2,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 6,592,574 | [18] | $ 13,158,950 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | L + 375 | 4.93 % | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[11],[19],[20] | Feb. 27, 2026 | |||
Principal Amount | [1],[2],[11],[19],[20] | $ 1,468,909 | |||
Amortized Cost | [1],[2],[11],[12],[19],[20] | 1,465,131 | |||
Fair Value | [1],[2],[11],[19],[20] | $ 1,318,346 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Auris Luxembourg III S.a.r.l. (First Lien Term Loan) | SOFR + 375 | 5.37% | 2/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[8],[18],[21] | Feb. 27, 2026 | |||
Principal Amount | [1],[2],[8],[18],[21] | $ 1,453,650 | |||
Amortized Cost | [1],[2],[8],[12],[18],[21] | 1,450,998 | |||
Fair Value | [1],[2],[8],[18],[21] | $ 1,438,750 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical Inc (First Lien Term Loan) | 14% Fixed |4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[9],[19],[22] | Apr. 07, 2026 | |||
Principal Amount | [1],[2],[3],[9],[19],[22] | $ 3,000,000 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19],[22] | 2,926,520 | |||
Fair Value | [1],[2],[3],[9],[19],[22] | $ 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CCS Medical, Inc (First Lien Term Loan) | 11% Fixed | 4/7/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Apr. 07, 2026 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 3,000,000 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 2,945,554 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 3,000,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | CNT Holdings I Corp (Second Lien Term Loan) | L + 675 | 3.74 % | 11/6/2028 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[22] | Nov. 06, 2028 | |||
Principal Amount | [1],[2],[19],[22] | $ 1,500,000 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 1,494,084 | |||
Fair Value | [1],[2],[19],[22] | $ 1,422,503 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health Inc. (First Lien Term Loan) | L + 675 | 12.18 % | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[22] | Sep. 30, 2027 | |||
Principal Amount | [1],[2],[19],[22] | $ 668,605 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 576,001 | |||
Fair Value | [1],[2],[19],[22] | $ 511,483 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Carestream Health, Inc. (First Lien Term Loan) | SOFR + 750 | 5.36% | 9/30/2027 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[18],[23] | Sep. 30, 2027 | |||
Principal Amount | [1],[2],[18],[23] | $ 658,467 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 581,366 | |||
Fair Value | [1],[2],[18],[23] | $ 514,635 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Delayed Draw Term Loan) | 4% Fixed | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[19] | $ 333,333 | |||
Amortized Cost | [1],[2],[12],[19] | 333,817 | |||
Fair Value | [1],[2],[19] | $ 282,500 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners Inc. (First Lien Term Loan) | L + 400 | 4.41 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[24] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[19],[24] | $ 1,613,305 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 1,615,775 | |||
Fair Value | [1],[2],[19],[24] | $ 1,367,276 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Delayed Draw Term Loan) | SOFR + 400 | 5.38% | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[18],[23] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 333,333 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 333,679 | |||
Fair Value | [1],[2],[18],[23] | $ 261,000 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Covenant Surgical Partners, Inc. (First Lien Term Loan) | SOFR + 400 | 5.38 % | 7/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[18],[23] | Jul. 01, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 1,597,232 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 1,599,049 | |||
Fair Value | [1],[2],[18],[23] | $ 1,250,633 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Envision Healthcare Corp. (First Lien Term Loan) | L + 375 | 4.07 % | 10/10/2025 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[24] | Oct. 10, 2025 | |||
Principal Amount | [1],[2],[19],[24] | $ 4,518,572 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 3,709,077 | |||
Fair Value | [1],[2],[19],[24] | $ 1,354,645 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | RxBenefits Inc. (First Lien Term Loan) | L + 450 | 2.11 % | 12/20/2027 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[20] | Dec. 20, 2027 | |||
Principal Amount | [1],[2],[19],[20] | $ 1,993,177 | |||
Amortized Cost | [1],[2],[12],[19],[20] | 1,963,107 | |||
Fair Value | [1],[2],[19],[20] | $ 1,888,535 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | L + 675 | 4.07 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[24] | Jun. 26, 2026 | |||
Principal Amount | [1],[2],[19],[24] | $ 1,555,556 | |||
Amortized Cost | [1],[2],[12],[19],[24] | 1,481,972 | |||
Fair Value | [1],[2],[19],[24] | $ 1,229,869 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Sound Inpatient Physicians (Second Lien Term Loan) | SOFR + 675 | 5.64 % | 6/26/2026 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[18],[23] | Jun. 26, 2026 | |||
Principal Amount | [1],[2],[18],[23] | $ 1,555,556 | |||
Amortized Cost | [1],[2],[12],[18],[23] | 1,500,056 | |||
Fair Value | [1],[2],[18],[23] | $ 127,556 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Healthcare | Wellpath Holdings Inc. (First Lien Term Loan) | L + 550 | 4.41 % | 10/1/2025 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[19],[22] | Oct. 01, 2025 | |||
Principal Amount | [1],[2],[19],[22] | $ 984,615 | |||
Amortized Cost | [1],[2],[12],[19],[22] | 980,197 | |||
Fair Value | [1],[2],[19],[22] | 783,793 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Real Estate | NexPoint Capital REIT, LLC (First Lien Term Loan) | PRIME + 100 | 8.00% | 3/25/2025 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[15],[18] | Mar. 25, 2025 | |||
Principal Amount | [1],[2],[3],[4],[15],[18] | $ 463,314 | |||
Amortized Cost | [1],[2],[3],[4],[12],[15],[18] | 463,314 | |||
Fair Value | [1],[2],[3],[4],[15],[18] | 463,314 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | $ 1,202,629 | [18] | $ 1,069,243 | [19] |
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan E) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 915,322 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 915,322 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 912,118 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan F) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 216,696 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 216,696 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 215,938 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan G) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 38,714 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 38,714 | |||
Fair Value | [1],[2],[3],[4],[18] | $ 38,579 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (fka Terrestar Corp.) (First Lien Term Loan H) | 12% PIK | 12.00% | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[4],[18] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[4],[18] | $ 36,121 | |||
Amortized Cost | [1],[2],[3],[4],[12],[18] | 36,121 | |||
Fair Value | [1],[2],[3],[4],[18] | 35,994 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan E) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 815,685 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 815,684 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 810,953 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan F) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 193,108 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 193,108 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 191,988 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan G) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 34,500 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 34,500 | |||
Fair Value | [1],[2],[3],[9],[19] | $ 34,300 | |||
Investment, Identifier [Axis]: Senior Secured Loans | Telecommunication Services | Terrestar Corp. (First Lien Term Loan H) | 11% PIK | 2/28/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[3],[9],[19] | Feb. 28, 2024 | |||
Principal Amount | [1],[2],[3],[9],[19] | $ 32,189 | |||
Amortized Cost | [1],[2],[3],[9],[12],[19] | 32,189 | |||
Fair Value | [1],[2],[3],[9],[19] | 32,002 | |||
Investment, Identifier [Axis]: Total Investments | Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2],[25] | 1,160,707 | 1,420,428 | ||
Investment, Identifier [Axis]: Total Investments | Other Assets & Liabilities net | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | (764,467) | (1,019,976) | ||
Investment, Identifier [Axis]: Warrants | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 272,969 | 181,733 | ||
Investment, Identifier [Axis]: Warrants | Energy | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | [1],[2] | 266,500 | $ 161,249 | ||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[14] | 5,738 | |||
Amortized Cost | [1],[2],[12],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | 133,888 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 1 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[14] | Aug. 27, 2029 | |||
Principal Amount | [1],[2],[14] | $ 5,738 | |||
Amortized Cost | [1],[2],[12],[14] | 16,122 | |||
Fair Value | [1],[2],[14] | $ 64,553 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[14] | 11,051 | |||
Amortized Cost | [1],[2],[12],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | 132,612 | |||
Investment, Identifier [Axis]: Warrants | Energy | QuarterNorth Tranche 2 | 8/27/2029 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[14] | Aug. 27, 2029 | |||
Principal Amount | [1],[2],[14] | $ 11,051 | |||
Amortized Cost | [1],[2],[12],[14] | 5,175 | |||
Fair Value | [1],[2],[14] | $ 96,696 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | |||||
Schedule of Investments [Line Items] | |||||
Principal Amount | [1],[2],[8],[14] | 2,875 | |||
Amortized Cost | [1],[2],[8],[12],[14] | 52,987 | |||
Fair Value | [1],[2],[8],[14] | 6,469 | |||
Investment, Identifier [Axis]: Warrants | Media/Telecommunications | iHeartMedia Inc. | 5/1/2039 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [1],[2],[11],[14] | May 01, 2039 | |||
Principal Amount | [1],[2],[11],[14] | $ 2,875 | |||
Amortized Cost | [1],[2],[11],[12],[14] | 52,987 | |||
Fair Value | [1],[2],[11],[14] | 20,484 | |||
Investment, Identifier [Axis]: Warrants | Total Investments | |||||
Schedule of Investments [Line Items] | |||||
Amortized Cost | [1],[2],[12] | 45,998,823 | 54,011,971 | ||
Fair Value | [1],[2] | $ 49,413,286 | $ 53,293,715 | ||
[1]All investments are denominated in United States Dollars.[2]Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.[3]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[4]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $38,516,582 or 77.3% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2023.[5]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2023, these securities amounted to $84, or 0.0% of net assets.[6]Securities of collateralized loan obligations where an affiliate of the Adviser serves as collateral manager.[7]The investment is considered to be the equity tranche of the issuer.[8]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2023.[9]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022.[10]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2022, these securities amounted to $2,421,875, or 4.5% of net assets.[11]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[12]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[13]The issuer is in default of its payment obligation, or is in danger of default.[14]Non-income producing security.[15]Represents an affiliated issuer. Assets with a total aggregate market value of $10,696,845, or 21.5% of net assets, were affiliated with the Company as of December 31, 2023. See Note 9.[16]Represents an affiliated issuer. Assets with a total aggregate market value of $10,273,001, or 19.1% of net assets, were affiliated with the Company as of December 31, 2022. See Note 10.[17]All or a portion of this security is held through BDC Sapience Holdco, LLC (See Note 1)[18]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2023. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[19]Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (“LIBOR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2022. Senior secured loans, while exempt from registration under the Securities Act of 1933 (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.[20]The interest rate on these investments is subject to a base rate of 6-Month LIBOR, which at December 31, 2022 was 5.14%. The LIBOR rate used to calculate interest is the higher of the prevailing 6 month LIBOR rate in effect on the date of the semiannual reset, or the LIBOR base rate floor shown.[21]The interest rate on these investments is subject to a base rate of 6-Month SOFR which at December 31, 2023 was 5.16%. The SOFR rate used to calculate interest is the higher of the prevailing 6 month SOFR rate in effect on the date of the semiannual reset, or the SOFR base rate floor shown.[22]The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at December 31, 2022 was 4.77%. The LIBOR rate used to calculate interest is the higher of the prevailing 3 month LIBOR rate in effect on the date of the quarterly reset, or the LIBOR base rate floor shown.[23]The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at December 31, 2023 was 5.33%[24]The interest rate on these investments is subject to a base rate of 1-Month LIBOR, which at December 31, 2022 was 4.39%. The LIBOR rate used to calculate interest is the higher of the prevailing 1 month LIBOR rate in effect on the date of the monthly reset, or the LIBOR base rate floor shown.[25]State Street U.S. Government Money Market Fund. |
Consolidated Schedule of Inve_4
Consolidated Schedule of Investments (Parenthentical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Percentage of Non Qualifying Asset on Company's total asset | 4.80% | 4.80% |
Percentage of Net Assets under valuation procedure | 0% | 4.50% |
Equity Method Investments | $ 84 | $ 2,421,875 |
Percentage of Qualifying Assets to The Total Assets | 70% | 70% |
Affiliated Entity [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Net Assets under valuation procedure | 21.50% | 19.10% |
Equity Method Investments | $ 10,696,845 | $ 10,273,001 |
Board of Directors [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Net Assets under valuation procedure | 77.30% | 53% |
Equity Method Investments | $ 38,516,582 | $ 28,500,789 |
Base Rate of 1 Month LIBOR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 4.39% | |
Base Rate Of 3 Month SOFR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 5.33% | 4.77% |
Base Rate Of 6 Month SOFR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 5.16% | 5.14% |
Maximum [Member] | Equity Method Investee Controlling Investment [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Equity method investments ownership percentage | 5% | 5% |
Minimum [Member] | Equity Method Investee Controlling Investment [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Equity method investments ownership percentage | 25% | 25% |
N-2
N-2 - $ / shares | 12 Months Ended | |||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cover [Abstract] | ||||||||||||
Entity Central Index Key | 0001588272 | |||||||||||
Amendment Flag | false | |||||||||||
Securities Act File Number | 814-01074 | |||||||||||
Document Type | 10-K | |||||||||||
Entity Registrant Name | NexPoint Capital, Inc. | |||||||||||
Entity Address, Address Line One | 300 Crescent Court, Suite 700 | |||||||||||
Entity Address, City or Town | Dallas | |||||||||||
Entity Address, State or Province | TX | |||||||||||
Entity Address, Postal Zip Code | 75201 | |||||||||||
City Area Code | 972 | |||||||||||
Local Phone Number | 628-4100 | |||||||||||
Entity Well-known Seasoned Issuer | No | |||||||||||
Entity Emerging Growth Company | false | |||||||||||
Financial Highlights [Abstract] | ||||||||||||
Senior Securities, Note [Text Block] | Senior Securities We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 200% immediately after each such issuance. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage. For a discussion of the risks associated with leverage, see “Risk Factors—Risks Relating to our Business and Structure—Regulations governing our operation as a BDC will affect our ability to raise, and the way in which we raise, additional debt or equity capital.” | |||||||||||
General Description of Registrant [Abstract] | ||||||||||||
Investment Objectives and Practices [Text Block] | Business & Investment Strategies We focus our healthcare investments primarily on opportunities in companies we believe will benefit from the long-term changes in the healthcare industry as a result of the aging demographic of Baby Boomers, implementation of payment system reforms and advances in medical technologies. It is our belief that the changing demographic landscape in the United States, where approximately 10,000 people per day turn 65 years of age, coupled with advances in medical technologies that are enabling Americans to live longer, will produce strong growth in demand for healthcare. At the same time, changes in the U.S. healthcare reimbursement system, including the implementation of alternative payment model are creating disruption in the healthcare sector, affecting each sub-sector sub-sectors Our primary areas of focus within the healthcare sector will be in the pharmaceuticals, devices, life sciences and facilities sub-sectors sub-sectors However, the Adviser and its affiliates have a core competency in other, non-healthcare case-by-case • Focus on growing economic sectors • High level of inherent value - • Strong risk/reward characteristics • Proven management team - start-up • Strong cash flow and business models • Stable and proven businesses - | |||||||||||
Risk Factors [Table Text Block] | Item 1A. Risk Factors. Before you invest in our shares you should be aware of various risks associated with an investment in shares of our common stock, as well as risks generally associated with investment in a company with investment objectives, investment policies, capital structure or trading markets similar to ours. You should carefully consider these risk factors, together with all of the other information included in this annual report on Form 10-K Geopolitical concerns and other global events, including, without limitation, trade conflict, national and international political circumstances (including wars, terrorist acts or security operations) and pandemics or other severe public health events, have contributed and may continue to contribute to volatility in global equity and debt markets. Such concerns have contributed and may continue to contribute to volatility in global equity and debt markets. An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and subsequently spread globally (“COVID-19”). The impact of this coronavirus has resulted in substantial economic volatility. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing self-regulatory In addition to the factors described above, other factors described herein that may affect market, economic and geopolitical conditions, and thereby adversely affect our business include, without limitation: • economic slowdown in the U.S. and internationally; • changes in interest rates and/or a lack of availability of credit in the U.S. and internationally; • commodity price volatility; and • changes in law and/or regulation, and uncertainty regarding government and regulatory policy. Risks Relating to our Business and Structure Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objective. The 1940 Act and the Code impose numerous constraints on the operations of business development companies and RICs that do not apply to certain other investment vehicles managed by the Adviser and its affiliates. Business development companies are required, for example, to invest at least 70% of their total assets primarily in securities of U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Subject to certain exceptions for follow-on source-of-income, We may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to business development companies and possibly lose our status as a BDC, which would have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making follow-on We depend upon key personnel of the Adviser and its affiliates. We are an externally managed BDC and therefore we do not have any internal management capacity or employees. We will depend on the diligence, skill and network of business contacts of the Adviser to achieve our investment objective. We expect the Adviser to evaluate, negotiate, structure, close and monitor our investments in accordance with the terms of the Investment Advisory Agreement. We depend upon the senior professionals of the Adviser to maintain relationships with potential sources of lending opportunities, and we intend to rely heavily upon these relationships to provide us with potential investment opportunities. We cannot assure you that these individuals will continue to indirectly provide investment advice to us. We do not intend to purchase any “key person” insurance coverage respecting such investment personnel. If these individuals do not maintain their existing relationships with our Adviser, maintain existing relationships or develop new relationships with other sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom the senior professionals of our Adviser have relationships are not obligated to provide us with investment opportunities. Therefore, we can offer no assurance that such relationships will generate investment opportunities for us. If our Adviser is unable to manage our investments effectively, we may be unable to achieve our investment objective. Our ability to achieve our investment objective will depend upon our ability to manage and grow our business. This will depend, in turn, on our Adviser’s ability to identify, invest in and monitor companies that meet our investment criteria. The achievement of our investment objective on a cost-effective basis will depend upon our Adviser’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and our access to financing on acceptable terms. Our Adviser will have substantial responsibilities under the Investment Advisory Agreement. The personnel of our Adviser are engaged in other business activities and may be called upon to provide managerial assistance to our portfolio companies, either of which could distract them, divert their time and attention such that they could no longer dedicate a significant portion of their time to our businesses or otherwise slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition, results of operations and cash flows. An investment in our shares is not an investment in existing funds, accounts or other investment vehicles managed by the Adviser or its affiliates except to the extent that we, consistent with the 1940 Act, invest in such entities. Our performance, therefore, is distinct from the prior performance of such entities. Our primary focus in making investments generally differs from that of existing investment funds, accounts or other investment vehicles that are or have been managed or sponsored by the Adviser or its affiliates. In addition, investors in our common stock are not acquiring an interest in any such investment funds, accounts or other investment vehicles that are or have been managed or sponsored by the Adviser or its affiliates. While we may consider co-investing co-investments The highly competitive market for investment opportunities in which we operate may limit our investment opportunities. A number of entities compete with us to make the types of investments we plan to make in middle-market companies. We compete with public and private funds, including other business development companies, commercial and investment banks, commercial financing companies, and, to the extent they provide an alternative form of financing, private equity funds. Additionally, as competition for investment opportunities increases, alternative investment vehicles, such as hedge funds, may invest in middle-market companies. As a result of these new entrants, competition for investment opportunities in middle-market companies may intensify. Many of our potential competitors are substantially larger and have access to considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us which could allow them to offer more favorable terms to borrowers. In addition, some of our competitors have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions the 1940 Act imposes on us as a BDC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective. Participants in our industry compete on several factors, including price, flexibility in transaction structuring, customer service, reputation, market knowledge and speed in decision-making. We will not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors may make loans with interest rates that are lower than the rates we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may reduce our net investment income and increase our risk of credit loss. The global capital markets are in a period of disruption and instability. These market conditions materially and adversely affected debt and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations. Uncertainties surrounding the sovereign debt of a number of European Union (EU) countries and the viability of the EU have disrupted and may in the future disrupt markets in the United States and around the world. If one or more countries leave the EU or the EU dissolves, the world’s securities markets likely will be significantly disrupted. On January 31, 2020, the UK left the EU, commonly referred to as “Brexit,” and the UK ceased to be a member of the EU. Following a transition period during which the EU and the UK Government engaged in a series of negotiations regarding the terms of the UK’s future relationship with the EU, the EU and the UK Government signed an agreement on December 30, 2020 regarding the economic relationship between the UK and the EU. This agreement became effective on a provisional basis on January 1, 2021 and formally entered into force on May 1, 2021. While the full impact of Brexit is unknown, Brexit has already resulted in volatility in European and global markets. There remains significant market uncertainty regarding Brexit’s ramifications, and the range of potential outcomes of possible political, regulatory, economic, and market outcomes are difficult to predict. This uncertainty may affect other countries in the EU and elsewhere, and may cause volatility within the EU, triggering prolonged economic downturns in certain countries within the EU. Despite the influence of the lockdowns, and the economic bounce back, Brexit has had a material impact on the UK’s economy. Additionally, trade between the UK and the EU did not benefit from the global rebound in trade in 2021, and remained at the very low levels experienced at the start of the novel coronavirus (COVID-19) UK-based (COVID-19) Political and military events, including in Russia, North Korea, Venezuela, Iran, Ukraine, Syria, and other areas of the Middle East, and nationalist unrest in Europe and South America, also may cause market disruptions. As a result of continued political tensions and armed conflicts, including the Russian invasion of Ukraine commencing in February of 2022, the extent and ultimate result of which are unknown at this time, the United States and the EU, along with the regulatory bodies of a number of countries, have imposed economic sanctions on certain Russian corporate entities and individuals, and certain sectors of Russia’s economy, which may result in, among other things, the continued devaluation of Russian currency, a downgrade in the country’s credit rating, and/or a decline in the value and liquidity of Russian securities, property or interests. These sanctions could also result in the immediate freeze of Russian securities and/or funds invested in prohibited assets, impairing the ability of the Company to buy, sell, receive or deliver those securities and/or assets. These sanctions or the threat of additional sanctions could also result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. The United States and other nations or international organizations may also impose additional economic sanctions or take other actions that may adversely affect Russia-exposed issuers and companies in various sectors of the Russian economy. Any or all of these potential results could lead Russia’s economy into a recession. Economic sanctions and other actions against Russian institutions, companies, and individuals resulting from the ongoing conflict may also have a substantial negative impact on other economies and securities markets both regionally and globally, as well as on companies with operations in the conflict region, the extent to which is unknown at this time. The United States and the EU have also imposed similar sanctions on Belarus for its support of Russia’s invasion of Ukraine. Additional sanctions may be imposed on Belarus and other countries that support Russia. Any such sanctions could present substantially similar risks as those resulting from the sanctions imposed on Russia, including substantial negative impacts on the regional and global economies and securities markets. Any return of the U.S. or global economic downturn or a recession period in the United States could adversely impact our investments. In addition, social and political tensions and conflict around the world, and particularly in the Middle East, may continue to contribute to increased market volatility, may have long-term effects on the U.S. and worldwide financial markets and may cause further economic uncertainty or deterioration in the United States and worldwide. We do not know how long the financial markets will continue to be affected by these events and cannot predict the effects of these or similar events in the future on the U.S. economy and securities markets, the global economy and securities markets or on our investments. We monitor developments and seek to manage our investments in a manner consistent with achieving our investment objective, but there can be no assurance that we will be successful in doing so, and we may not timely anticipate or manage existing, new or additional risks, contingencies or developments, including regulatory developments in the current or future market environment. While these conditions persist, we and other companies in the financial services sector may be required to, or may choose to, seek access to alternative markets for debt and equity capital. Equity capital may be difficult to raise because, subject to certain limited exceptions, as a BDC, we are not generally able to issue and sell our common stock at a price below net asset value per share without first obtaining approval for such issuance from our stockholders and independent directors. In addition, the debt capital that will be available to us, if at all, may be at a higher cost and on terms and conditions that may be less favorable than we expect, which, if incurred, could negatively affect our financial performance and results in the future. In addition, the portfolio companies in which we invest may not be able to service or refinance their debt, which could materially and adversely affect our financial condition, as we could experience reduced income or even losses. The inability to raise capital and the risk of portfolio company defaults may have a negative effect on our business, financial condition and results of operations. Another prolonged period of market illiquidity may also cause us to reduce the volume of loans we originate and/or fund below historical levels and adversely affect the value of our portfolio investments, which could have a material and adverse effect on our business, financial condition and results of operations. Moreover, recent market conditions have made, and may in the future make, it difficult to extend the maturity of or refinance our existing indebtedness and any failure to do so could have a material adverse effect on our business, financial condition and results of operations. The illiquidity of our investments may make it difficult for us to sell such investments if required. As a result, we may realize significantly less than the value at which we have recorded our investments. Capital markets volatility also affects our investment valuations. While most of our investments will not be publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). As a result, volatility in the capital markets can adversely affect our valuations. We have elected to be treated as a RIC and intend each year to qualify and to be eligible to be treated as such. If we fail to qualify for treatment as a RIC, we will, among other things, be subject to corporate-level income tax. We have elected to be treated as a RIC under Subchapter M of the Code and intend each year to qualify and be eligible to be treated as such. In order to qualify for the special tax treatment accorded RICs and their shareholders, we must meet certain gross income, diversification and distribution requirements. A RIC generally is not subject to tax at the corporate level on income and gains from investments that are timely distributed to shareholders. Our ability to pursue our investment strategy, including a strategy focused on investments in CLOs, certain debt instruments and the generation of fee income, may be limited or adversely affected by our intention to qualify as a RIC and our strategy may bear adversely on our ability to so qualify. Our failure to qualify as a RIC would result in, among other things, corporate-level taxation, and consequently, a reduction in the value of an investment in our shares. If we failed to qualify for treatment as a RIC, we would be subject to tax on all our taxable income at regular corporate rates and all of our distributions from earnings and profits (including from net long-term capital gains) would be taxable to stockholders as ordinary income. We would not be able to deduct distributions to stockholders, nor would we be required to make such distributions. Distributions, including distributions of net long-term capital gain, would generally be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate stockholders would be eligible to claim a dividends-received deduction with respect to such dividends, and non-corporate built-in Our distributions may exceed our net investment income. As a result, portions of the distributions that we make may represent a return of capital to you for tax purposes, which will lower your tax basis in your shares and reduce the amount of funds we have available for investment in targeted assets. A return of capital is a return of your investment rather than a return of earnings or gains derived from our investment activities and will be made after the offering, including any fees payable to our Adviser. Although a return of capital is not currently taxable, it will lower your tax basis in your shares, which may increase your gain or decrease your loss in connection with a sale of our shares. We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income. For U.S. federal income tax purposes, we will include in income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the making of a loan or possibly in other circumstances, or PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such original issue discount, which could be significant relative to our overall investment assets and increases in loan balances as a result of PIK interest will be included in income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash. Accordingly, in order to qualify for the special tax treatment accorded RICs and their shareholders, we may be required to distribute income accrued prior to the receipt of cash and thus we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. We may retain a portion of our earnings and be subject to excise tax on such earnings. If we fail to distribute in a calendar year at least an amount equal to the sum of 98% of our ordinary income for such year and 98.2% of our capital gain net income (adjusted for certain ordinary losses) for the one-year Potential tax consequences if we were not a “publicly offered” RIC If for any taxable year we were not a “publicly offered” RIC within the meaning of Code Section 67(c)(2)(B), certain of our direct and indirect expenses, including the management fee, the incentive fee and certain other advisory expenses, would be subject to special “pass-through” rules. Such rules would treat these expenses as additional dividends to certain of our direct or indirect shareholders (generally including other RICs that are not “publicly offered,” individuals and entities that compute their taxable income in the same manner as an individual) and, under current law, are not deductible by those shareholders that are individuals (or entities that compute their taxable income in the same manner as an individual). To qualify for the special tax treatment accorded to RICs and their shareholders, we must, among other things, distribute to our shareholders with respect to each taxable year at least 90% of the sum of our “investment company taxable income” (as that term is defined in the Code, without regard to the deduction for dividends paid—generally taxable ordinary income and the excess, if any, of net short-term capital gains over net long-term capital losses) and any net tax-exempt tax-exempt non-deductible If we make loans to borrowers that include PIK interest or accretion of original issue discount provisions, this could increase the risk of default by our borrowers. Some of the loans we make or acquire may provide for the payment by borrowers of PIK interest or accreted original issue discount at maturity. Such loans have the effect of deferring a borrower’s payment obligation until the end of the term of the loan, which may make it difficult for us to identify and address developing problems with borrowers in terms of their ability to repay us. Particularly in a rising interest rate environment, loans containing PIK and original issue discount provisions can give rise to negative amortization on a loan, resulting in a borrower owing more at the end of the term of a loan than what it owed when the loan was originated. Any such developments may increase the risk of default on our loans by borrowers. Any PIK interest payments we receive will increase our assets under management and, as a result, will increase the amount of base management fees payable by us to our Adviser. Certain of our debt investments may contain provisions providing for the payment of PIK interest. Because PIK interest results in an increase in the size of the loan balance of the underlying loan, the receipt by us of PIK interest will have the effect of increasing our assets under management. As a result, because the base management fee that we pay to our Adviser is based on the value of our consolidated gross assets, the receipt by us of PIK interest will result in an increase in the amount of the base management fee payable by us regardless of whether the PIK interest income is ever realized. In addition, any such increase in a loan balance due to the receipt of PIK interest will cause such loan to accrue interest on the higher loan balance, which will result in an increase in our pre-incentive Regulations governing our operation as a BDC will affect our ability to raise, and the way in which we raise, additional debt or equity capital. We expect that we will require a substantial amount of capital. We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we will be permitted as a BDC to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments at a time when such sales may be disadvantageous and, depending on the nature of our leverage, repay a portion of our indebtedness. Senior Securities. Additional Common Stock. If we enter into securitization transactions, we may be subject to additional risks. In addition to issuing securities to raise capital as described above, we may securitize our loans to generate cash for funding new investments. To securitize loans, we may create a wholly-owned subsidiary, contribute a pool of loans to the subsidiary and have the subsidiary issue primarily investment grade debt securities to purchasers who we would expect to be willing to accept a substantially lower interest rate than the loans earn. Even though we expect the pool of loans that we contribute to any such securitization vehicle to be rated below investment grade, because the securitization vehicle’s portfolio of loans would secure all of the debt issued by such vehicle, a portion of such debt may be rated investment grade, subject in each case to market conditions that may require such portion of the debt to be over collateralized and various other restrictions. If applicable accounting pronouncements or SEC staff guidance require us to consolidate the securitization vehicle’s financial statements with our financial statements, any debt issued by it would be generally treated as if it were issued by us for purposes of the asset coverage ratio applicable to us. In such case, we would expect to retain all or a portion of the equity and/or subordinated notes in the securitization vehicle. Our retained equity would be exposed to any losses on the portfolio of loans before any of the debt securities would be exposed to such losses. Accordingly, if the pool of loans experienced a low level of losses due to defaults, we would earn an incremental amount of income on our retained equity, but we would be exposed, up to the amount of equity we retained, to that proportion of any losses we would have experienced if we had continued to hold the loans in our portfolio. We would have no direct ability to enforce the payment obligations on the loans contributed to the securitization vehicle. We may hold subordinated debentures in any such securitization vehicle and, if so, we would not consider such securities to be senior securities. An inability to successfully securitize our loan portfolio could limit our ability to grow our business and fully execute our business strategy and adversely affect our earnings, if any. Moreover, the successful securitization of a portion of our loan portfolio might expose us to losses as the residual loans in which we do not sell interests will tend to be those that are riskier and less liquid. Any fee payable under any servicing or collateral management agreement in respect of the securitization would be offset in an amount equal to the base management fee payable under the Investment Advisory Agreement. As part of the securitization transaction, we would likely enter into an agreement under which we would be required to repurchase any loan (or participation interest therein) which was sold to the securitization vehicle in breach of any representation or warranty made by us with respect to such loan on the date such loan was sold. The structure of a securitization transaction is intended to prevent, in the event of our bankruptcy, the consolidation of the securitization vehicle with our operations. If the true sale of these assets were not respected in the event of our insolvency, a trustee or debtor-in-possession Recourse to us by the securitization vehicle would be limited and generally consistent with the terms of other similarly structured finance transactions. In a securitization transaction, we would sell and/or contribute to the securitization vehicle all of our ownership interest in certain of our portfolio loans and participations for the purchase price and other consideration set forth in the securitization agreement. This transfer would be structured by its terms to provide limited recourse to us by the securitization vehicle relating to certain representations and warranties with respect to certain characteristics including title and quality of the portfolio loans that were transferred to the securitization vehicle. If we breached these representations and warranties and such breach materially and adversely affected the value of the portfolio loans or the interests of holders of notes issued by the securitization vehicle, then we could be required to (a) cure such breach in all material respects, (b) repurchase the portfolio loan or loans subject to such breach or (c) remove the portfolio loan or loans subject to such breach from the pool of loans and other assets held by the securitization vehicle and substitute a portfolio loan or loans that meet the requirements of the securitization documents. This repurchase and substitution obligation of us would constitute the sole remedy available against us for any breach of a representation or warranty related to the portfolio loans transferred to the securitization vehicle. We intend to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. The use of leverage magnifies the potential for gain or loss on amounts invested. We expect to incur leverage through a credit facility and, from time to time, intend to incur additional leverage to the extent permitted under the 1940 Act. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities. In the future, we may borrow from, and issue senior securities, to banks, insurance companies and other lenders. Holders of these senior securities will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such holders to seek recovery against our assets in the event of a default. We may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instruments into which we may enter. In addition, under the terms of any credit facility or other debt instrument we enter into, we are likely to be required by its terms to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged, thereby magnifying losses or eliminating our equity stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have had we not borrowed. Such a decline would also negatively affect our ability to make dividend payments on our common stock or preferred stock. Our ability to service our debt will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses and any increase in the management fee payable to our Adviser. As a BDC, we generally are required to meet a coverage ratio of total assets to total borrowings and other senior securities, which includes all of our borrowings and any preferred stock tha | |||||||||||
NAV Per Share | $ 5.35 | $ 5.24 | $ 5.26 | $ 5.36 | $ 5.55 | $ 5.6 | $ 5.96 | $ 6.35 | $ 6.32 | $ 6.13 | $ 8.53 | $ 8.36 |
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | ||||||||||||
Outstanding Securities [Table Text Block] | Title of Class Amount Amount Held by Us or for Our Account Amount Outstanding Common Stock 200,000,000 — 9,309,405 Preferred Stock 25,000,000 — — | |||||||||||
Risks Relating to our Business and Structure [Member] | ||||||||||||
General Description of Registrant [Abstract] | ||||||||||||
Risk [Text Block] | Risks Relating to our Business and Structure Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objective. The 1940 Act and the Code impose numerous constraints on the operations of business development companies and RICs that do not apply to certain other investment vehicles managed by the Adviser and its affiliates. Business development companies are required, for example, to invest at least 70% of their total assets primarily in securities of U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Subject to certain exceptions for follow-on source-of-income, We may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to business development companies and possibly lose our status as a BDC, which would have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making follow-on We depend upon key personnel of the Adviser and its affiliates. We are an externally managed BDC and therefore we do not have any internal management capacity or employees. We will depend on the diligence, skill and network of business contacts of the Adviser to achieve our investment objective. We expect the Adviser to evaluate, negotiate, structure, close and monitor our investments in accordance with the terms of the Investment Advisory Agreement. We depend upon the senior professionals of the Adviser to maintain relationships with potential sources of lending opportunities, and we intend to rely heavily upon these relationships to provide us with potential investment opportunities. We cannot assure you that these individuals will continue to indirectly provide investment advice to us. We do not intend to purchase any “key person” insurance coverage respecting such investment personnel. If these individuals do not maintain their existing relationships with our Adviser, maintain existing relationships or develop new relationships with other sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom the senior professionals of our Adviser have relationships are not obligated to provide us with investment opportunities. Therefore, we can offer no assurance that such relationships will generate investment opportunities for us. If our Adviser is unable to manage our investments effectively, we may be unable to achieve our investment objective. Our ability to achieve our investment objective will depend upon our ability to manage and grow our business. This will depend, in turn, on our Adviser’s ability to identify, invest in and monitor companies that meet our investment criteria. The achievement of our investment objective on a cost-effective basis will depend upon our Adviser’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and our access to financing on acceptable terms. Our Adviser will have substantial responsibilities under the Investment Advisory Agreement. The personnel of our Adviser are engaged in other business activities and may be called upon to provide managerial assistance to our portfolio companies, either of which could distract them, divert their time and attention such that they could no longer dedicate a significant portion of their time to our businesses or otherwise slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition, results of operations and cash flows. An investment in our shares is not an investment in existing funds, accounts or other investment vehicles managed by the Adviser or its affiliates except to the extent that we, consistent with the 1940 Act, invest in such entities. Our performance, therefore, is distinct from the prior performance of such entities. Our primary focus in making investments generally differs from that of existing investment funds, accounts or other investment vehicles that are or have been managed or sponsored by the Adviser or its affiliates. In addition, investors in our common stock are not acquiring an interest in any such investment funds, accounts or other investment vehicles that are or have been managed or sponsored by the Adviser or its affiliates. While we may consider co-investing co-investments The highly competitive market for investment opportunities in which we operate may limit our investment opportunities. A number of entities compete with us to make the types of investments we plan to make in middle-market companies. We compete with public and private funds, including other business development companies, commercial and investment banks, commercial financing companies, and, to the extent they provide an alternative form of financing, private equity funds. Additionally, as competition for investment opportunities increases, alternative investment vehicles, such as hedge funds, may invest in middle-market companies. As a result of these new entrants, competition for investment opportunities in middle-market companies may intensify. Many of our potential competitors are substantially larger and have access to considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us which could allow them to offer more favorable terms to borrowers. In addition, some of our competitors have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions the 1940 Act imposes on us as a BDC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective. Participants in our industry compete on several factors, including price, flexibility in transaction structuring, customer service, reputation, market knowledge and speed in decision-making. We will not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors may make loans with interest rates that are lower than the rates we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may reduce our net investment income and increase our risk of credit loss. The global capital markets are in a period of disruption and instability. These market conditions materially and adversely affected debt and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations. Uncertainties surrounding the sovereign debt of a number of European Union (EU) countries and the viability of the EU have disrupted and may in the future disrupt markets in the United States and around the world. If one or more countries leave the EU or the EU dissolves, the world’s securities markets likely will be significantly disrupted. On January 31, 2020, the UK left the EU, commonly referred to as “Brexit,” and the UK ceased to be a member of the EU. Following a transition period during which the EU and the UK Government engaged in a series of negotiations regarding the terms of the UK’s future relationship with the EU, the EU and the UK Government signed an agreement on December 30, 2020 regarding the economic relationship between the UK and the EU. This agreement became effective on a provisional basis on January 1, 2021 and formally entered into force on May 1, 2021. While the full impact of Brexit is unknown, Brexit has already resulted in volatility in European and global markets. There remains significant market uncertainty regarding Brexit’s ramifications, and the range of potential outcomes of possible political, regulatory, economic, and market outcomes are difficult to predict. This uncertainty may affect other countries in the EU and elsewhere, and may cause volatility within the EU, triggering prolonged economic downturns in certain countries within the EU. Despite the influence of the lockdowns, and the economic bounce back, Brexit has had a material impact on the UK’s economy. Additionally, trade between the UK and the EU did not benefit from the global rebound in trade in 2021, and remained at the very low levels experienced at the start of the novel coronavirus (COVID-19) UK-based (COVID-19) Political and military events, including in Russia, North Korea, Venezuela, Iran, Ukraine, Syria, and other areas of the Middle East, and nationalist unrest in Europe and South America, also may cause market disruptions. As a result of continued political tensions and armed conflicts, including the Russian invasion of Ukraine commencing in February of 2022, the extent and ultimate result of which are unknown at this time, the United States and the EU, along with the regulatory bodies of a number of countries, have imposed economic sanctions on certain Russian corporate entities and individuals, and certain sectors of Russia’s economy, which may result in, among other things, the continued devaluation of Russian currency, a downgrade in the country’s credit rating, and/or a decline in the value and liquidity of Russian securities, property or interests. These sanctions could also result in the immediate freeze of Russian securities and/or funds invested in prohibited assets, impairing the ability of the Company to buy, sell, receive or deliver those securities and/or assets. These sanctions or the threat of additional sanctions could also result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. The United States and other nations or international organizations may also impose additional economic sanctions or take other actions that may adversely affect Russia-exposed issuers and companies in various sectors of the Russian economy. Any or all of these potential results could lead Russia’s economy into a recession. Economic sanctions and other actions against Russian institutions, companies, and individuals resulting from the ongoing conflict may also have a substantial negative impact on other economies and securities markets both regionally and globally, as well as on companies with operations in the conflict region, the extent to which is unknown at this time. The United States and the EU have also imposed similar sanctions on Belarus for its support of Russia’s invasion of Ukraine. Additional sanctions may be imposed on Belarus and other countries that support Russia. Any such sanctions could present substantially similar risks as those resulting from the sanctions imposed on Russia, including substantial negative impacts on the regional and global economies and securities markets. Any return of the U.S. or global economic downturn or a recession period in the United States could adversely impact our investments. In addition, social and political tensions and conflict around the world, and particularly in the Middle East, may continue to contribute to increased market volatility, may have long-term effects on the U.S. and worldwide financial markets and may cause further economic uncertainty or deterioration in the United States and worldwide. We do not know how long the financial markets will continue to be affected by these events and cannot predict the effects of these or similar events in the future on the U.S. economy and securities markets, the global economy and securities markets or on our investments. We monitor developments and seek to manage our investments in a manner consistent with achieving our investment objective, but there can be no assurance that we will be successful in doing so, and we may not timely anticipate or manage existing, new or additional risks, contingencies or developments, including regulatory developments in the current or future market environment. While these conditions persist, we and other companies in the financial services sector may be required to, or may choose to, seek access to alternative markets for debt and equity capital. Equity capital may be difficult to raise because, subject to certain limited exceptions, as a BDC, we are not generally able to issue and sell our common stock at a price below net asset value per share without first obtaining approval for such issuance from our stockholders and independent directors. In addition, the debt capital that will be available to us, if at all, may be at a higher cost and on terms and conditions that may be less favorable than we expect, which, if incurred, could negatively affect our financial performance and results in the future. In addition, the portfolio companies in which we invest may not be able to service or refinance their debt, which could materially and adversely affect our financial condition, as we could experience reduced income or even losses. The inability to raise capital and the risk of portfolio company defaults may have a negative effect on our business, financial condition and results of operations. Another prolonged period of market illiquidity may also cause us to reduce the volume of loans we originate and/or fund below historical levels and adversely affect the value of our portfolio investments, which could have a material and adverse effect on our business, financial condition and results of operations. Moreover, recent market conditions have made, and may in the future make, it difficult to extend the maturity of or refinance our existing indebtedness and any failure to do so could have a material adverse effect on our business, financial condition and results of operations. The illiquidity of our investments may make it difficult for us to sell such investments if required. As a result, we may realize significantly less than the value at which we have recorded our investments. Capital markets volatility also affects our investment valuations. While most of our investments will not be publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). As a result, volatility in the capital markets can adversely affect our valuations. We have elected to be treated as a RIC and intend each year to qualify and to be eligible to be treated as such. If we fail to qualify for treatment as a RIC, we will, among other things, be subject to corporate-level income tax. We have elected to be treated as a RIC under Subchapter M of the Code and intend each year to qualify and be eligible to be treated as such. In order to qualify for the special tax treatment accorded RICs and their shareholders, we must meet certain gross income, diversification and distribution requirements. A RIC generally is not subject to tax at the corporate level on income and gains from investments that are timely distributed to shareholders. Our ability to pursue our investment strategy, including a strategy focused on investments in CLOs, certain debt instruments and the generation of fee income, may be limited or adversely affected by our intention to qualify as a RIC and our strategy may bear adversely on our ability to so qualify. Our failure to qualify as a RIC would result in, among other things, corporate-level taxation, and consequently, a reduction in the value of an investment in our shares. If we failed to qualify for treatment as a RIC, we would be subject to tax on all our taxable income at regular corporate rates and all of our distributions from earnings and profits (including from net long-term capital gains) would be taxable to stockholders as ordinary income. We would not be able to deduct distributions to stockholders, nor would we be required to make such distributions. Distributions, including distributions of net long-term capital gain, would generally be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate stockholders would be eligible to claim a dividends-received deduction with respect to such dividends, and non-corporate built-in Our distributions may exceed our net investment income. As a result, portions of the distributions that we make may represent a return of capital to you for tax purposes, which will lower your tax basis in your shares and reduce the amount of funds we have available for investment in targeted assets. A return of capital is a return of your investment rather than a return of earnings or gains derived from our investment activities and will be made after the offering, including any fees payable to our Adviser. Although a return of capital is not currently taxable, it will lower your tax basis in your shares, which may increase your gain or decrease your loss in connection with a sale of our shares. We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income. For U.S. federal income tax purposes, we will include in income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the making of a loan or possibly in other circumstances, or PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such original issue discount, which could be significant relative to our overall investment assets and increases in loan balances as a result of PIK interest will be included in income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash. Accordingly, in order to qualify for the special tax treatment accorded RICs and their shareholders, we may be required to distribute income accrued prior to the receipt of cash and thus we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. We may retain a portion of our earnings and be subject to excise tax on such earnings. If we fail to distribute in a calendar year at least an amount equal to the sum of 98% of our ordinary income for such year and 98.2% of our capital gain net income (adjusted for certain ordinary losses) for the one-year Potential tax consequences if we were not a “publicly offered” RIC If for any taxable year we were not a “publicly offered” RIC within the meaning of Code Section 67(c)(2)(B), certain of our direct and indirect expenses, including the management fee, the incentive fee and certain other advisory expenses, would be subject to special “pass-through” rules. Such rules would treat these expenses as additional dividends to certain of our direct or indirect shareholders (generally including other RICs that are not “publicly offered,” individuals and entities that compute their taxable income in the same manner as an individual) and, under current law, are not deductible by those shareholders that are individuals (or entities that compute their taxable income in the same manner as an individual). To qualify for the special tax treatment accorded to RICs and their shareholders, we must, among other things, distribute to our shareholders with respect to each taxable year at least 90% of the sum of our “investment company taxable income” (as that term is defined in the Code, without regard to the deduction for dividends paid—generally taxable ordinary income and the excess, if any, of net short-term capital gains over net long-term capital losses) and any net tax-exempt tax-exempt non-deductible If we make loans to borrowers that include PIK interest or accretion of original issue discount provisions, this could increase the risk of default by our borrowers. Some of the loans we make or acquire may provide for the payment by borrowers of PIK interest or accreted original issue discount at maturity. Such loans have the effect of deferring a borrower’s payment obligation until the end of the term of the loan, which may make it difficult for us to identify and address developing problems with borrowers in terms of their ability to repay us. Particularly in a rising interest rate environment, loans containing PIK and original issue discount provisions can give rise to negative amortization on a loan, resulting in a borrower owing more at the end of the term of a loan than what it owed when the loan was originated. Any such developments may increase the risk of default on our loans by borrowers. Any PIK interest payments we receive will increase our assets under management and, as a result, will increase the amount of base management fees payable by us to our Adviser. Certain of our debt investments may contain provisions providing for the payment of PIK interest. Because PIK interest results in an increase in the size of the loan balance of the underlying loan, the receipt by us of PIK interest will have the effect of increasing our assets under management. As a result, because the base management fee that we pay to our Adviser is based on the value of our consolidated gross assets, the receipt by us of PIK interest will result in an increase in the amount of the base management fee payable by us regardless of whether the PIK interest income is ever realized. In addition, any such increase in a loan balance due to the receipt of PIK interest will cause such loan to accrue interest on the higher loan balance, which will result in an increase in our pre-incentive Regulations governing our operation as a BDC will affect our ability to raise, and the way in which we raise, additional debt or equity capital. We expect that we will require a substantial amount of capital. We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we will be permitted as a BDC to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments at a time when such sales may be disadvantageous and, depending on the nature of our leverage, repay a portion of our indebtedness. Senior Securities. Additional Common Stock. If we enter into securitization transactions, we may be subject to additional risks. In addition to issuing securities to raise capital as described above, we may securitize our loans to generate cash for funding new investments. To securitize loans, we may create a wholly-owned subsidiary, contribute a pool of loans to the subsidiary and have the subsidiary issue primarily investment grade debt securities to purchasers who we would expect to be willing to accept a substantially lower interest rate than the loans earn. Even though we expect the pool of loans that we contribute to any such securitization vehicle to be rated below investment grade, because the securitization vehicle’s portfolio of loans would secure all of the debt issued by such vehicle, a portion of such debt may be rated investment grade, subject in each case to market conditions that may require such portion of the debt to be over collateralized and various other restrictions. If applicable accounting pronouncements or SEC staff guidance require us to consolidate the securitization vehicle’s financial statements with our financial statements, any debt issued by it would be generally treated as if it were issued by us for purposes of the asset coverage ratio applicable to us. In such case, we would expect to retain all or a portion of the equity and/or subordinated notes in the securitization vehicle. Our retained equity would be exposed to any losses on the portfolio of loans before any of the debt securities would be exposed to such losses. Accordingly, if the pool of loans experienced a low level of losses due to defaults, we would earn an incremental amount of income on our retained equity, but we would be exposed, up to the amount of equity we retained, to that proportion of any losses we would have experienced if we had continued to hold the loans in our portfolio. We would have no direct ability to enforce the payment obligations on the loans contributed to the securitization vehicle. We may hold subordinated debentures in any such securitization vehicle and, if so, we would not consider such securities to be senior securities. An inability to successfully securitize our loan portfolio could limit our ability to grow our business and fully execute our business strategy and adversely affect our earnings, if any. Moreover, the successful securitization of a portion of our loan portfolio might expose us to losses as the residual loans in which we do not sell interests will tend to be those that are riskier and less liquid. Any fee payable under any servicing or collateral management agreement in respect of the securitization would be offset in an amount equal to the base management fee payable under the Investment Advisory Agreement. As part of the securitization transaction, we would likely enter into an agreement under which we would be required to repurchase any loan (or participation interest therein) which was sold to the securitization vehicle in breach of any representation or warranty made by us with respect to such loan on the date such loan was sold. The structure of a securitization transaction is intended to prevent, in the event of our bankruptcy, the consolidation of the securitization vehicle with our operations. If the true sale of these assets were not respected in the event of our insolvency, a trustee or debtor-in-possession Recourse to us by the securitization vehicle would be limited and generally consistent with the terms of other similarly structured finance transactions. In a securitization transaction, we would sell and/or contribute to the securitization vehicle all of our ownership interest in certain of our portfolio loans and participations for the purchase price and other consideration set forth in the securitization agreement. This transfer would be structured by its terms to provide limited recourse to us by the securitization vehicle relating to certain representations and warranties with respect to certain characteristics including title and quality of the portfolio loans that were transferred to the securitization vehicle. If we breached these representations and warranties and such breach materially and adversely affected the value of the portfolio loans or the interests of holders of notes issued by the securitization vehicle, then we could be required to (a) cure such breach in all material respects, (b) repurchase the portfolio loan or loans subject to such breach or (c) remove the portfolio loan or loans subject to such breach from the pool of loans and other assets held by the securitization vehicle and substitute a portfolio loan or loans that meet the requirements of the securitization documents. This repurchase and substitution obligation of us would constitute the sole remedy available against us for any breach of a representation or warranty related to the portfolio loans transferred to the securitization vehicle. We intend to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. The use of leverage magnifies the potential for gain or loss on amounts invested. We expect to incur leverage through a credit facility and, from time to time, intend to incur additional leverage to the extent permitted under the 1940 Act. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities. In the future, we may borrow from, and issue senior securities, to banks, insurance companies and other lenders. Holders of these senior securities will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such holders to seek recovery against our assets in the event of a default. We may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instruments into which we may enter. In addition, under the terms of any credit facility or other debt instrument we enter into, we are likely to be required by its terms to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged, thereby magnifying losses or eliminating our equity stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have had we not borrowed. Such a decline would also negatively affect our ability to make dividend payments on our common stock or preferred stock. Our ability to service our debt will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses and any increase in the management fee payable to our Adviser. As a BDC, we generally are required to meet a coverage ratio of total assets to total borrowings and other senior securities, which includes all of our borrowings and any preferred stock that we may issue in the future, of at least 150%. If this ratio declines below 150%, we cannot incur additional debt and could be required to sell a portion of our investments to repay some debt at a time when it is disadvantageous to do so. This could have a material adverse effect on our operations, and we may not be able to make distributions. The amount of leverage that we employ will depend on the Adviser’s and the Board’s assessment of market conditions and other factors at the time of any proposed borrowing. We cannot assure you that we will be able to obtain credit on terms acceptable to us or at all. In addition, the terms of indebtedness that we incur in the future could impose financial and operating covenants that restrict our business activities, including limitations that may hinder our ability to finance additional loans and investments or make the distributions required to qualify for the special tax treatment accorded RICs and their shareholders under the Code. Furthermore, the terms of any credit facility and other indebtedness that we incur in the future may contain various covenants which, if not complied with, could accelerate repayment, thereby materially and adversely affecting our liquidity, financial condition, results of operations and our ability to pay distributions to our stockholders. As of December 31, 2023, the Company did not utilize any leverage. We may enter into reverse repurchase agreements, which are another form of leverage. We may enter into reverse repurchase agreements. A repurchase agreement is an agreement by a bank or other financial institution to buy securities or another asset with a corresponding agreement that it will resell these same securities or assets to the same seller for an agreed-upo | |||||||||||
Risks Related to our Investments [Member] | ||||||||||||
General Description of Registrant [Abstract] | ||||||||||||
Risk [Text Block] | Risks Related to our Investments Our investments may be risky, and you could lose all or part of your investment. We invest primarily in debt investments and to a lesser extent, selected equity investments in middle-market healthcare companies. The portfolio companies in which we invest may have, or may be permitted to incur, other debt ranking equally with, or senior to, the debt securities in which we invest. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in respect of the debt securities in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying senior creditors, the portfolio company may not have sufficient assets to repay its obligation to us in full, or at all. In the case of debt ranking equally with debt securities in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company. Secured Loans. The rights we may have with respect to the collateral securing loans we make to our portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of such senior debt. Under a typical intercreditor agreement, at any time that obligations benefiting from first-priority liens are outstanding, any of the following actions that may be taken in respect of the collateral will be at the direction of the holders of the obligations secured by the first-priority liens: • the ability to commence enforcement proceedings against the collateral; • the ability to control the conduct of such proceedings; • the approval of amendments to collateral documents; • releases of liens on the collateral; and • waivers of past defaults under collateral documents. We may not have the ability to control or direct such actions, even if our rights are adversely affected. Mezzanine Loans non-cash We expect in the future to invest in securities that are rated below investment grade by rating agencies or that may be rated below investment grade if they were so rated. Below investment grade securities, which are often referred to as ‘junk bonds,’ are viewed as speculative investments because of concerns with respect to the issuer’s capacity to pay interest and repay principal. Derivative Transactions significantly more market exposure than the money paid or deposited when the transaction is entered into, a relatively small adverse market movement may not only result in the loss of the entire investment, but may also expose the Company to the possibility of a loss exceeding the original amount invested. Thus, the use of Derivative Transactions may result in losses greater than if they had not been used, may require the Company to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the Company can realize on an investment or may cause the Company to hold a security that it might otherwise sell. The use of foreign currency transactions can result in the Company incurring losses as a result of the imposition of exchange controls, the suspension of settlements or the inability of the Company to deliver or receive a specified currency. Additionally, amounts paid by the Company as premiums and cash or other assets held in margin accounts with respect to Derivative Transactions are not otherwise available to the Company for investment purposes. If a put or call option purchased by the Company is not sold when it has remaining value, and if the market price of the underlying security remains equal to or greater than the exercise price (in the case of a put), or remains less than or equal to the exercise price (in the case of a call), the Company will lose its entire investment in the option. Also, where a put or call option on a particular security is purchased to hedge against price movements in a related security, the price of the put or call option may move more or less than the price of the related security. If restrictions on exercise were imposed, the Company might be unable to exercise an option it had purchased. If the Company were unable to close out an option that it had purchased on a security, it would have to exercise the option in order to realize any profit or the option may expire worthless. In addition, as noted above, the SEC adopted the Derivatives Rule in October 2020, which introduces a new framework for the use by registered investment companies of derivatives and many related instruments. The Company’s Derivative Transactions are generally subject to numerous special and complex tax rules. Because the tax rules applicable to such transactions may be uncertain under current law, an adverse determination or future IRS guidance with respect to these rules (which determination or guidance could be retroactive) may affect whether the Company has made sufficient distributions, and otherwise satisfied the relevant requirements, to maintain its qualification as a RIC and avoid Company-level U.S. federal income or excise taxes. The Company’s investments in derivative instruments may be limited by the Company’s intention to qualify for treatment as a RIC and could adversely affect the Company’s ability to so qualify. Equity Investments. We are subject to risks associated with middle-market companies. Investing in middle-market companies involves a number of significant risks, including: • these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment; • they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and changing market conditions, as well as general economic downturns; • they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us; • generally, little public information exists about these companies, and we are required to rely on our Adviser to obtain adequate information to evaluate the potential returns from investing in these companies; • they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. In addition, our executive officers, directors and our Adviser may, in the ordinary course of business, be named as defendants in litigation arising from our investments in these portfolio companies; and • they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity. We are a non-diversified We are classified as a non-diversified Our portfolio may be concentrated in a limited number of portfolio companies, industries and/or sectors which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry or sector. Our portfolio may be concentrated in a limited number of portfolio companies, industries and/or sectors. Beyond the asset diversification requirements associated with our qualification as a RIC under the Code and certain contractual diversification requirements of a credit facility or other agreements, we do not have fixed guidelines for diversification. As a result, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, our investments may be concentrated in relatively few industries or sectors. As a result, a downturn in any particular industry or sector in which we are invested could also significantly impact the aggregate returns we realize. The lack of liquidity in our investments may adversely affect our business . We will generally make investments in private companies. Private companies have reduced access to the capital markets, resulting in diminished capital resources and ability to withstand financial distress. Furthermore, substantially all of our investments in private companies will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments. In addition, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation. As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by the Adviser under our valuation policy and process. As part of the valuation process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments: • a comparison of the portfolio company’s securities to publicly traded securities; • the enterprise value of a portfolio company; • the nature and realizable value of any collateral; • the portfolio company’s ability to make payments and its earnings; • the markets in which the portfolio company does business; and • changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we use the pricing indicated by the external event to corroborate our valuation. We record decreases in the market values or fair values of our investments as unrealized depreciation. Declines in prices and liquidity in the corporate debt markets may result in significant net unrealized depreciation in our portfolio. The effect of all of these factors on our portfolio may reduce our net asset value by increasing net unrealized depreciation in our portfolio. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. The Adviser may effectuate short sales that subject us to unlimited loss potential. The Adviser may enter into transactions in which it sells a security it does not own, which we refer to as a short sale, in anticipation of a decline in the market value of the security. Short sales for our account theoretically will involve unlimited loss potential since the market price of securities sold short may continuously increase. Under adverse market conditions, the Adviser might have difficulty purchasing securities to meet short sale delivery obligations and may have to cover short sales at suboptimal prices. Further, if other short positions of the same security are closed out at the same time, a “short squeeze” can occur where demand exceeds the supply for the security sold short. A short squeeze makes it more likely that the Adviser will need to replace the borrowed security at an unfavorable price. Our investments in the healthcare industry are subject to numerous risks, including competition, extensive government regulation and commercial difficulties. Our investments in portfolio companies in the healthcare industry, particularly the pharmaceuticals, devices, life sciences and facilities sub-sectors Further, the development of products by pharmaceuticals, devices, life sciences and facilities companies in the healthcare industry requires significant research and development, clinical trials and regulatory approvals. The results of product development efforts may be affected by a number of factors, including the ability to innovate, develop and manufacture new products, complete clinical trials, obtain regulatory approvals and reimbursement in the United States and abroad, or gain and maintain market approval of products. In addition, regulatory review processes by U.S. and foreign agencies may extend longer than anticipated as a result of decreased funding and tighter fiscal budgets. Further, patents attained by others can preclude or delay the commercialization of a product. There can be no assurance that any products now in development will achieve technological feasibility, obtain regulatory approval, or gain market acceptance. Failure can occur at any point in the development process, including after significant funds have been invested. Products may fail to reach the market or may have only limited commercial success because of efficacy or safety concerns, failure to achieve positive clinical outcomes, inability to obtain necessary regulatory approvals, failure to achieve market adoption, limited scope of approved uses, excessive costs to manufacture, the failure to establish or maintain intellectual property rights, or the infringement of intellectual property rights of others. Changes in healthcare laws and other regulations applicable to some of our portfolio companies’ businesses may constrain their ability to offer their products and services. There has also been an increased political and regulatory focus on healthcare laws in recent years, and new legislation could have a material effect on the business and operations of some of our portfolio companies by increasing their compliance and other costs of doing business, requiring significant systems enhancements, or rendering their products or services less profitable or obsolete. In particular, the Food and Drug Administration (“FDA”), has established regulations, guidelines and policies to govern the development and approval of pharmaceuticals and medical devices, as have foreign regulatory authorities, which affect some of our portfolio companies. Any change in regulatory requirements due to the adoption by the FDA and/or foreign regulatory authorities of new legislation, regulations, or policies may require some of our portfolio companies to amend existing clinical trial protocols or add new clinical trials to comply with these changes. Such amendments to existing protocols and/or clinical trial applications or the need for new ones, may significantly impact the cost, timing and completion of the clinical trials. Also, may have adverse effects on certain healthcare sub-sectors payer-mix, We may hold the debt securities of leveraged companies that may, due to the significant volatility of such companies, enter into bankruptcy proceedings. Leveraged companies may experience bankruptcy or similar financial distress. The bankruptcy process has a number of significant inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of the creditors. A bankruptcy filing by an issuer may adversely and permanently affect the issuer. If the proceeding is converted to a liquidation, the value of the issuer may not equal the liquidation value that was believed to exist at the time of our investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until a plan of reorganization or liquidation ultimately becomes effective. The administrative costs in connection with a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, any contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial, eroding the value of any recovery by holders of other securities of the bankrupt entity. Depending on the facts and circumstances of our investments and the extent of our involvement in the management of a portfolio company, upon the bankruptcy of a portfolio company, a bankruptcy court may recharacterize our debt investments as equity interests and subordinate all or a portion of our claim to that of other creditors. This could occur even though we may have structured our investment as senior debt. Economic recessions or downturns could impair the ability of our portfolio companies to repay loans and increase our costs, which, in turn, could increase our non-performing Many of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our loans during these periods. Therefore, our non-performing We may be subject to risks associated with syndicated loans. From time to time, we may acquire interests in syndicated loans. Under the documentation for such loans, a financial institution or other entity typically is designated as the administrative agent and/or collateral agent. This agent is granted a lien on any collateral on behalf of the other lenders and distributes payments on the indebtedness as they are received. The agent is the party responsible for administering and enforcing the loan and generally may take actions only in accordance with the instructions of a majority or two-thirds If an investment is a syndicated revolving loan or delayed drawdown loan, other lenders may fail to satisfy their full contractual funding commitments for such loan, which could create a breach of contract, result in a lawsuit by the obligor against the lenders and adversely affect the fair market value of our investment. There is a risk that a loan agent may become bankrupt or insolvent. Such an event would delay, and possibly impair, any enforcement actions undertaken by holders of the associated indebtedness, including attempts to realize upon the collateral securing the associated indebtedness and/or direct the agent to take actions against the related obligor or the collateral securing the associated indebtedness and actions to realize on proceeds of payments made by obligors that are in the possession or control of any other financial institution. In addition, we may be unable to remove the agent in circumstances in which removal would be in our best interests. Moreover, agented loans typically allow for the agent to resign with certain advance notice. Our investments in CLOs may be riskier and less transparent to us and our stockholders than direct investments in the underlying companies. We intend to invest in CLOs. Generally, there may be less information available to us regarding the underlying debt investments held by CLOs than if we had invested directly in the debt of the underlying companies. As a result, our stockholders will not know the details of the underlying securities of the CLOs in which we will invest. Our CLO investments will also be subject to the risk of leverage associated with the debt issued by such CLOs and the repayment priority of senior debt holders in such CLOs. Our investments in prospective portfolio companies may be risky, and we could lose all or part of our investment. Our financial results may be affected adversely if one or more of our equity or mezzanine debt investments in a CLO vehicle defaults on its payment obligations or fails to perform as we expect. We intend to invest in the equity and mezzanine trances in CLOs, which involve a number of significant risks. CLOs are typically highly levered, and therefore the equity and mezzanine tranches that we will invest in are subject to a higher risk of total loss. In particular, investors in CLOs indirectly bear risks of the underlying debt investments held by such CLOs. We will generally have the right to receive payments only from the CLOs, and will generally not have direct rights against the underlying borrowers or the entity that sponsored the CLOs. Although it is difficult to predict whether the prices of indices and securities underlying CLOs will rise or fall, these prices (and, therefore, the prices of the CLOs) will be influenced by the same types of political and economic events that affect issuers of securities and capital markets generally. The investments we intend to make in CLOs will likely be thinly traded or have only a limited trading market. CLO investments are typically privately offered and sold in the primary and secondary markets. As a result, investments in CLOs may be characterized as illiquid securities. In addition to the general risks associated with investing in debt securities, CLOs carry additional risks, including, but not limited to: (i) the possibility that distributions from the underlying loans will not be adequate to make interest or other payments; (ii) the quality of the underlying loans may decline in value or default; and (iii) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the CLO or unexpected investment results. Further, our investments in equity and mezzanine tranches of CLOs will be subordinate to the senior debt tranches thereof. Investments in structured vehicles, including equity and mezzanine debt instruments issued by CLOs, involve risks, including credit risk and market risk. Changes in interest rates and credit quality may cause significant price fluctuations. Additionally, changes in the underlying loans held by a CLO may cause payments on the instruments we hold to be reduced, either temporarily or permanently. Structured investments, particularly the subordinated interests in which we invest, are less liquid than many other types of securities and may be more volatile than the loans underlying the CLOs in which we invest. Certain tax consequences of our investments There are various tax risks with respect to some of our investments, including but not limited to, the risks discussed below. Some of our investments outside the United States, including our CLO investments, may be treated as investments in passive foreign investment companies (“PFICs”), as defined below, and could subject us to U.S. federal income tax (including interest charges) on distributions received from a PFIC or on proceeds received from the disposition of shares in a PFIC, which tax cannot be eliminated by making distributions to our shareholders. However, we may elect to avoid the imposition of that tax. For example, we may elect to treat a PFIC as a “qualified electing fund” (“QEF”) (i.e., make a “QEF election”), in which case we will be required to include our share of the PFIC’s income and net capital gain annually, regardless of whether it receives any distribution from the PFIC. Alternatively, we may elect to mark the gains (and to a limited extent the losses) in such holdings “to the market” as though we had sold (and, solely for purposes of this mark-to-market mark-to-market If we own (directly or indirectly) 10% or more of the total combined voting power of all classes of stock of a foreign corporation or 10% or more of the total value of shares of all classes of stock of a foreign corporation that is treated as a controlled foreign corporation (“CFC”) (including equity tranche investments and certain debt tranche investments in a CLO treated as CFC), we are a “U.S. Shareholder” for purposes of the CFC provisions of the Code. A CFC is a foreign corporation that, on any day of its taxable year, is owned (directly, indirectly, or constructively) more than 50% (measured by voting power or value) by U.S. Shareholders. A U.S. Shareholder is required to include in gross income for U.S. federal income tax purposes for each taxable year of the U.S. Shareholder its pro rata share of its CFC’s “subpart F income” for the CFC’s taxable year ending within the U.S. Shareholder’s taxable year whether or not such income is actually distributed by the CFC. Subpart F income is treated as ordinary income, regardless of the character of the CFC’s underlying income. To the extent we invest in CFCs, if any, and recognize subpart F income in excess of actual cash distributions from such CFCs, if any, we may be required to sell assets (including when it is not advantageous to do so) to generate the cash necessary to distribute as dividends to our shareholders all of our income and gains and therefore to eliminate any corporate-level tax liability. Investments in distressed debt obligations that are at risk of or in default present special tax issues. Tax rules are not entirely clear about issues such as whether and to what extent we should recognize market discount on these debt obligations, when we may cease to accrue interest, OID or market discount, when and to what extent we may take deductions for bad debts or worthless securities and how we should allocate payments received on obligations in default between principal and income. We will address these and other related issues when, as and if we invest in such obligations, in order to seek to ensure that we distribute sufficient income to preserve our eligibility for treatment as a RIC and do not become subject to U.S. federal income or excise tax. Our derivative transactions, as well as any of our other hedging, short sale or similar transactions, may be subject to one or more special tax rules (including, for instance, notional principal contract, mark-to-market, Because the tax rules applicable to derivative financial instruments are in some cases uncertain under current law, an adverse determination or future guidance by the IRS with respect to these rules (which determination or guidance could be retroactive) may affect whether we have made sufficient distributions, and otherwise satisfied the relevant requirements, to maintain our qualification as a RIC and avoid a corporate-level tax. To qualify for the special tax treatment accorded RICs and their shareholders, we must meet certain source-of-income, We may not realize gains from our equity investments. When we invest in mezzanine loans or senior secured loans, we may also invest in the equity securities of the borrower or acquire warrants or other equity securities as well. In addition, we may invest directly in the equity securities of portfolio companies. Our goal is ultimately to dispose of such equity interests and realize gains upon our disposition of such interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not realize gains from our equity interests, and any gains that we do realize on the disposition of such equity interests may not be sufficient to offset any other losses we experience. Our failure to make follow-on follow-on Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” • increase or maintain in whole or in part our equity ownership percentage; • exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or • attempt to preserve or enhance the value of our investment. We will have the discretion to make any follow-on follow-on follow-on continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on follow-on Because we may not hold controlling equity interests in our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments. Although we intend to take controlling equity positions in some of our portfolio companies, we do not intend to take a controlling equity interest in all of our portfolio companies. In addition, we may not be in a position to control any portfolio company by investing in its debt securities. As a result, we will be subject to the risk that a portfolio company may make business decisions with which we disagree, and the stockholders and management of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity for the debt and equity investments that we will typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company, and we may therefore suffer a decrease in the value of our investments. Defaults by issuers of our holdings will harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets. This could trigger cross-defaults under other agreements and jeopardize such portfolio company’s ability to meet its obligations under the debt or equity securities that we hold. Our investments in loans of such issuers may be placed on non-accrual non-accrual Our Adviser’s liability will be limited under the Investment Advisory Agreement, and we have agreed to indemnify our Adviser against certain liabilities, which may lead our Adviser to act in a riskier manner on our behalf than it would when acting for its own account. Under the Investment Advisory Agreement, our Adviser will not assume any responsibility to us other than to render the services called for under that agreement, and it will not be responsible for any action of the Board in following or declining to follow our Adviser’s advice or recommendations. Our Adviser maintains a contractual, as opposed to a fiduciary, relationship with us. Under the terms of the Investment Advisory Agreement, our Adviser, its officers, members, personnel, and any person controlling or controlled by our Adviser will not be liable to us, any subsidiary of ours, our directors, our stockholders or any subsidiary’s stockholders or partners for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting negligence or misconduct. In addition, we have agreed to indemnify our Adviser and each of its officers, directors, members, managers and employees from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement, except where attributable to negligence or misconduct. These protections may lead our Adviser to act in a riskier manner when acting on our behalf than it would when acting for its own account. We may be obligated to pay our Adviser incentive compensation even if we incur a net loss due to a decline in the value of our portfolio. Our Investment Advisory Agreement entitles our Adviser to receive incentive compensation on income regardless of any capital losses. In such case, we may be requ | |||||||||||
Common Share [Member] | ||||||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | ||||||||||||
Outstanding Security, Title [Text Block] | Common Stock | |||||||||||
Outstanding Security, Authorized [Shares] | 200,000,000 | |||||||||||
Outstanding Security, Held [Shares] | 0 | |||||||||||
Outstanding Security, Not Held [Shares] | 9,309,405 | |||||||||||
Preferred Share [Member] | ||||||||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | ||||||||||||
Outstanding Security, Title [Text Block] | Preferred Stock | |||||||||||
Outstanding Security, Authorized [Shares] | 25,000,000 | |||||||||||
Outstanding Security, Held [Shares] | 0 | |||||||||||
Outstanding Security, Not Held [Shares] | 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 — Organization NexPoint Capital, Inc. (the “Company”) is an externally managed, non-diversified, closed-end Financial Services—Investment Companies. non-healthcare The Company was formed in Delaware on September 30, 2013 and formally commenced operations on September 2, 2014 upon satisfying the minimum offering requirement by raising gross proceeds of $10.0 million in connection with a private placement with NexPoint Advisors, L.P. (the “Adviser”), our external advisor. Prior to July 21, 2023, the Adviser controlled 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $13.4 million, as of July 21, 2023. On July 21, 2023, pursuant to the terms of a Stock Purchase Agreement, Liberty CLO Holdco Ltd. (“Liberty”) purchased a total of 2,549,002 shares of the Company, representing 27.05% of the Company’s issued and outstanding common stock, as of July 21, 2023. In aggregate, as of December 31, 2023, Liberty controls 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $13.6 million. The Company has retained the Adviser to manage certain aspects of its affairs on a day-to-day Consolidation of Subsidiary The Company may make investments through wholly-owned subsidiaries (each a “Subsidiary” and together, the “Subsidiaries”). Such Subsidiaries will not be registered under the 1940 Act. However, the Company will wholly own and control any Subsidiaries. In addition, the Fund does not intend to create or acquire primary control of any entity which primarily engages in investment activities in securities or other assets, other than entities wholly-owned or majority-owned by the Company. As of December 31, 2023, there is one consolidated |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Article 6 of Regulation S-X. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Statements of Cash Flows Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Consolidated Statements of Cash Flows. The cash amount shown in the Consolidated Statements of Cash Flows is the amount included within the Company’s Consolidated Statements of Assets and Liabilities and includes cash on hand and cash equivalents at its custodian bank. Cash and Cash Equivalents The Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign currencies, if any, is determined by converting to U.S. dollars on the date of the Consolidated Statements of Assets and Liabilities. As of December 31, 2023 and 2022, the Company had cash and cash equivalents of $1,401,744 and $1,629,846, respectively. As of December 31, 2023 and 2022, $1,160,707 and $1,420,428 was held in the State Street U.S. Government Money Market Fund, and $241,037 and $209,418 was held in a custodial account with State Street Bank and Trust Company, respectively. Securities Sold Short and Restricted Cash The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the Consolidated Statements of Assets and Liabilities, when applicable. Securities held as collateral for securities sold short are shown on the Schedules of Investments for the Company, as applicable. As of December 31, 2023 and 2022, the Company did not have any securities sold short. When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for non-hedging Other Fee Income Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction break-up non-recurring Fair Value of Financial Instruments It is the Company’s policy to hold the investments at fair value. ASC Topic 820, Fair Value Measurements and Disclosure Pursuant to Rule 2a-5 2a-5 With respect to investments for which market quotations are not readily available, the Adviser undertakes a multi-step valuation process each quarter, as described below: • The valuation process begins with each portfolio company or investment being initially valued by investment professionals of the Adviser responsible for credit monitoring or independent third party valuation firms. • Preliminary valuation conclusions are then documented and discussed with a committee comprised of certain senior management employees of the Adviser (the “Valuation Committee”) established by the Adviser to assist the Adviser in discharging its responsibilities as valuation designee. • At least once each quarter, the valuations for approximately one quarter of the portfolio investments that have been fair valued are reviewed by an independent valuation firm such that, over the course of a year, each material portfolio investment that has been fair valued shall have been reviewed by an independent valuation firm at least once. • Based on this information, the Adviser discusses valuations and determines the fair value of each investment in the portfolio in good faith pursuant to board-approved policies and procedures. As of December 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 84 American Banknote Corp. Common Stocks 3,536,250 IQHQ, Inc. Common Stocks 2,533,000 MPM Holdings, Inc. Common Stocks 42,500 MidWave Wireless, Inc. (fka Terrestar Corp.) Common Stocks 4,732,181 NexPoint Capital REIT, LLC LLC Interests 7,014,774 SFR WLIF III, LLC LLC Interests 338,973 US Gaming, LLC LLC Interests 3,016,752 Apnimed, Inc. Preferred Stocks 1,644,435 Apnimed, Inc. Preferred Stocks 928,197 Sapience Therapeutics, Inc. Preferred Stocks 4,452,382 Sapience Therapeutics, Inc. Preferred Stocks 3,611,111 CCS Medical, Inc Senior Secured Loans 3,000,000 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 912,118 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 215,938 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 38,579 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 35,994 NexPoint Capital REIT, LLC Senior Secured Loans 463,314 PlantSwitch, Inc. Senior Secured Loans 2,000,000 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 Terrestar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 Terrestar Corp. Senior Secured Loans 810,953 Terrestar Corp. Senior Secured Loans 191,988 Terrestar Corp. Senior Secured Loans 34,300 Terrestar Corp. Senior Secured Loans 32,002 Determination of fair value involves subjective judgments and estimates. Accordingly, the consolidated notes to the Company’s consolidated financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, in the Company’s consolidated financial statements. Below is a description of factors that the Adviser and the Valuation Committee may consider when valuing the Company’s debt and equity investments. Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Adviser and the Valuation Committee may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The Company’s equity investments in portfolio companies for which there is no liquid public market will be valued at fair value. The Adviser and the Valuation Committee, in its analysis of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items. The Adviser and the Valuation Committee may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Adviser and the Valuation Committee may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price. If the Company receives warrants or other equity-linked securities at nominal or no additional cost in connection with an investment in a debt security, the Company will allocate the cost basis in the investment between the debt securities and any such warrants or other equity-linked securities received at the time of origination. The Adviser and the Valuation Committee will subsequently value these warrants or other equity-linked securities received at fair value. As applicable, the Company values its Level 2 assets by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which is provided by an independent third-party pricing service and screened for validity by such service. For investments for which the third-party pricing service is unable to obtain quoted prices, the Company obtains bid and ask prices directly from dealers who make a market in such investments. To the extent that the Company holds investments for which no active secondary market exists and, therefore, no bid and ask prices can be readily obtained, the Adviser and the Valuation Committee utilize an independent third-party valuation service to value such investments in a manner consistent with the Company’s multistep valuation process previously described. The Company periodically benchmarks the bid and ask prices received from the third-party pricing service and/or dealers, as applicable, and valuations received from the third-party valuation service against the actual prices at which it purchases and sells its investments. The Company believes that these prices are reliable indicators of fair value. The Adviser and the Valuation Committee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation procedures. As of December 31, 2023, the Company’s investments consisted of senior secured loans, asset-backed securities, common stocks, LLC interests, preferred stocks, corporate bonds, and warrants, which may be purchased for a fraction of the price of the underlying securities. The fair value of the Company’s loans, bonds and asset-backed securities are generally based on quotes received from brokers or independent pricing services. Loans, bonds and asset-backed securities with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Loans, bonds and asset-backed securities that are priced using quotes derived from implied values, indicative bids or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. The fair value of the Company’s common stocks and options that are not actively traded on national exchanges are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. Exchange traded options are valued based on the last trade price on the primary exchange on which they trade. If an option does not trade, the mid-price At the end of each calendar quarter, the Adviser evaluates the Level 2 and 3 investments for changes in liquidity, including: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market price, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Company may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of December 31, 2023 and December 31, 2022: December 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 3,592,574 $ 3,000,000 $ 6,592,574 Telecommunication Services — — 1,202,629 1,202,629 Bioplastics 2,000,000 2,000,000 Real Estate 463,314 463,314 Asset-Backed Securities Financials — — 84 84 Corporate Bonds Consumer Discretionary — 488,665 — 488,665 Media/Telecommunications — 238,858 — 238,858 Common Stocks Chemicals — — 42,500 42,500 Energy — 2,237,604 — 2,237,604 Financials — — 3,536,250 3,536,250 Real Estate 2,073,797 — 2,533,000 4,606,797 Real Estate Investment Trust (REITs) 805,987 — — 805,987 Telecommunication Services — — 4,732,181 4,732,181 LLC Interests Consumer Products — — 3,016,752 3,016,752 Real Estate — — 7,353,747 7,353,747 Preferred Stocks Financials — 1,186,250 — 1,186,250 Healthcare — — 10,636,125 10,636,125 Warrants Energy — 266,500 — 266,500 Media/Telecommunications — 6,469 — 6,469 Total Assets $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 Total Investments $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trust (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2023. Investments: Balance as of Transfers Transfers Net Distribution Net Net change Purchases/ (Sales (1) Balance as of Change in Assets Senior Secured Loans Bioplastics $ — $ — $ — $ — $ — $ — $ — $ 2,000,000 $ — $ 2,000,000 $ — Healthcare 3,000,000 — — 19,034 — — (19,034 ) — — 3,000,000 (19,034 ) Real Estate — — — — — — — 463,314 — 463,314 — Telecommunication Services 1,069,243 — — — — — 2,014 131,372 — 1,202,629 2,014 Asset-Backed Securities Financials 7,036 — — — — (158,867 ) 162,924 8,136 (19,145 ) 84 (6,939 ) Common Stocks Chemicals — 42,500 — — — — — — — 42,500 — Financials 1,732,500 — — — — — 1,803,750 — — 3,536,250 1,803,750 Real Estate 2,359,000 — — — — — 174,000 — — 2,533,000 174,000 Service 2,269 — — — — (244,451 ) 251,135 — (8,953 ) — — Telecommunication Services 5,114,214 — — — — — (382,033 ) — — 4,732,181 (382,033 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 228,002 — (463,314 ) 3,016,752 228,002 Real Estate 1,600,492 — — — (244,193 ) — (1,370,637 ) 7,448,085 (80,000 ) 7,353,747 (1,370,637 ) Preferred Stocks Healthcare 10,527,285 — — — — 1 108,839 6,012,000 (6,012,000 ) 10,636,125 108,839 Total $ 28,500,789 $ 42,500 $ — $ 19,034 $ (244,193 ) $ (240,003 ) $ 958,960 $ 16,062,907 $ (6,583,412 ) $ 38,516,582 $ 537,962 (1) Includes sales to subreit at cost which generate no realized gain. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ (6,238 ) $ 113,003 $ — $ 1,069,243 $ (6,238 ) Healthcare 4,000,000 — — 16,520 — — 73,480 2,990,000 (4,080,000 ) 3,000,000 73,480 Asset-Backed Securities Financials 405,040 — — — — 24,930 (364,273 ) — (58,661 ) 7,036 (364,273 ) Common Stocks Financials 2,208,750 — — — — — (476,250 ) — — 1,732,500 (476,250 ) Real Estate 1,823,000 — — — — (1,440 ) 536,000 1,501,440 (1,500,000 ) 2,359,000 536,000 Service 5,172 — — — — — (2,903 ) — — 2,269 (2,903 ) Telecommunication Services 4,706,357 — — — — — 407,857 — — 5,114,214 407,857 LLC Interests Consumer Products 2,812,212 — — — — — 276,538 — — 3,088,750 276,538 Real Estate 4,760,162 — — — — (74,604 ) 174,219 1,215,000 (4,474,285 ) 1,600,492 174,219 Preferred Stocks Healthcare — — — — — — 447,299 10,079,986 — 10,527,285 447,299 Total $ 21,683,171 $ — $ — $ 16,520 $ — $ (51,114 ) $ 1,065,729 $ 15,899,429 $ (10,112,946 ) $ 28,500,789 $ 1,065,729 Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Investment Adviser continues to search for observable data points and evaluate broker quotes and indications received for portfolio investments. Determination of fair values is uncertain because it involves subjective judgements and estimates that are unobservable. Transfers from Level 2 to Level 3 are due to a decrease in market activity (e.g. frequency of trades), which resulted in a decrease of available market inputs to determine price. For the year ended December 31, 2023, there were 0 transfers from Level 2 to Level 3. For the year ended December 31, 2022, there were no transfers into Level 3. The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of December 31, 2023 and 2022: Investment Fair value at December 31, 2023 Valuation Technique Unobservable Inputs Range of Input Value(s) (arithmetic average) LLC Interests $ 10,370,499 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 5.48% - 9.68% (7.58%) 5.75x - 10.40x (8.07x) Preferred Stocks 10,636,125 Option Pricing Model Transaction Indication of Value Volatility Enterprise Value ($mm) 40% - 90% (65%) $281.4 - $598.6 ($452.75) Common Stocks 10,843,931 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) 13% - 15% (14.0%) 1.00x - 4.00x (2.31x) $0.10 - $0.90 ($0.50) $797 - $1,044 ($920.5) Liquidation Analysis N/A $5.00 Senior Secured Loans 6,665,943 Discounted Cash Flow Transaction Indication of Value Discount Rate Cost Price ($mm) 11.00% - 14.31% (12.64%) $2.46 Asset-Backed Securities 84 NAV Approach Discount Rate N/A Total $ 38,516,582 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stocks 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stocks 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Net Asset Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 The significant unobservable inputs used in the fair value measurement of the Company’s LLC interests are: discount rate and multiples of EBITDA. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s common equity securities are: multiple of EBITDA, unadjusted price/MHz-PoP isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s asset-backed securities is the discount rate. Significant increases (decreases) in this input in isolation could result in a significantly lower (higher) fair value measurement. Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Investment Adviser continues to search for observable data points and evaluate broker quotes and indications received for port f For the quarter ended December 31, 2023, there was one Common Stock position that transferred into Level 3. Derivative Transactions The Company is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Company may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Company can make. The Company may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Company, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes. Options The Company purchases options, subject to certain limitations. The Company may invest in options contracts to manage its exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase the Company’s exposure to the underlying instrument while buying puts and writing calls tend to decrease the Company’s exposure to the underlying instrument, or economically hedge other Company investments. The Company’s risks in using these contracts include changes in the value of the underlying instruments, nonperformance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price. As of and during the year ended December 31, 2023 and 2022, the Company did not hold options. Investment Transactions Investment transactions are accounted for on trade date. Realized gains (losses) on investments sold are recorded on the basis of specific identification method for both consolidated financial statement and U.S. federal income tax purposes. Payable for investments purchased and receivable for investments sold on the Consolidated Statements of Assets and Liabilities, if any, represents the cost of purchases and proceeds from sales of investment securities, respectively, for trades that have been executed but not yet settled. Income Recognition Corporate actions (including cash dividends from common stock and equity tranches of asset-backed securities) are recorded on the ex-dividend ex-dividend (payment-in-kind) Accretion of discounts and amortization of premiums on taxable bonds, loans and asset-backed securities are computed to the call or maturity date, whichever is shorter, using the effective yield method. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates. Organization and Offering Costs Organization costs are paid by the Adviser and include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock and are also paid by the Adviser. Prior to the termination of the offering, as we raised proceeds, these organization and offering costs were expensed and became payable to the Adviser. Organization and offering costs are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. Please refer to Note 4 for additional information on Organization and Offering Costs. Paid-in The proceeds from the issuance of common stock as presented on the Company’s Consolidated Statements of Changes in Net Assets is presented net of selling commissions and fees for the years ended December 31, 2023, 2022 and 2021. Selling commissions and fees of $0, $0, and $0 were paid for the years ended December 31, 2023, 2022 and 2021, respectively. Earnings Per Share In accordance with the provisions of ASC Topic 260— Earnings per Share The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the year ended 2023 2022 2021 Net increase (decrease) in net assets resulting from operations $ 1,453,947 $ (4,065,174 ) $ 5,706,143 Weighted average common shares outstanding 9,533,072 9,893,732 10,254,666 Earnings (loss) per common share-basic and diluted $ 0.15 $ (0.41 ) $ 0.56 Distributions Distributions to the Company’s stockholders will be recorded as of the record date. Subject to the discretion of the Board and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a weekly basis and pay such distributions on a quarterly basis. Net realized capital gains, if any, will generally be distributed or deemed distributed at least every 12-month On June 24, 2020, the Board approved a change in its dividend and capital gains distribution schedule from monthly distributions to quarterly distributions, effective immediately. The first quarterly distribution was paid on October 12, 2020 to shareholders of record as of September 30, 2020. The dividends are expected to be declared in the amount of $0.09 per share of the Company’s common stock to the stockholders of record at each quarter end. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, No. 2020-04 In December 2022, the FASB issued ASU 2022-06, 2022-06”) 2022-06 2022-06 In November 2023, the FASB issued ASU 2023-07, 2023-07”), 2023-07. 2023-07 |
Investment Portfolio
Investment Portfolio | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Investments [Abstract] | |
Investment Portfolio | Note 3 — Investment Portfolio The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2023: Fair value Percentage Assets Healthcare $ 17,228,699 34.9 % Real Estate 12,423,858 25.1 % Telecommunication Services 5,934,810 12.0 % Financials 4,722,584 9.6 % Consumer Products 3,016,752 6.1 % Energy 2,504,104 5.1 % Bioplastics 2,000,000 4.0 % Real Estate Investment Trusts (REITs) 805,987 1.6 % Consumer Discretionary 488,665 1.0 % Media/Telecommunications 245,327 0.5 % Chemicals 42,500 0.1 % Total Assets $ 49,413,286 100.0 % The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2022: Fair value Percentage Assets Healthcare $ 26,101,074 49.0 % Real Estate 11,613,222 21.7 % Telecommunication Services 6,183,457 11.6 % Consumer Products 3,088,750 5.8 % Financials 3,180,161 6.0 % Energy 1,752,941 3.3 % Real Estate Investment Trusts (REITs) 1,018,779 1.9 % Media/Telecommunications 310,562 0.6 % Chemicals 42,500 0.1 % Service 2,269 0.0 % Total Assets $ 53,293,715 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2023: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 10,580,813 $ 10,130,961 20.5 % Senior Secured Loans - Second Lien 1,500,056 127,556 0.3 % Asset-Backed Securities 218,666 84 0.0 % Corporate Bonds 1,380,892 727,523 1.5 % Common Stocks 9,924,122 15,961,319 32.3 % LLC Interests 10,490,003 10,370,499 21.0 % Preferred Stocks 11,829,987 11,822,375 23.9 % Warrants 74,284 272,969 0.6 % Total Assets $ 45,998,823 $ 49,413,286 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2022: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 14,645,106 $ 11,575,821 21.7 % Senior Secured Loans - Second Lien 2,976,056 2,652,372 5.0 % Asset-Backed Securities 388,541 7,036 0.0 % Corporate Bonds 3,358,783 2,704,917 5.1 % Common Stocks 17,073,102 19,514,684 36.6 % LLC Interests 3,666,112 4,689,242 8.8 % Preferred Stocks 11,829,987 11,967,910 22.5 % Warrants 74,284 181,733 0.3 % Total Assets $ 54,011,971 $ 53,293,715 100.0 % The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2023: Geography Fair value Percentage Assets Cayman Islands (1) $ 84 0.0 % Luxembourg (1) 1,438,750 2.9 % United States 47,974,452 97.1 % Total Assets $ 49,413,286 100.0 % The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2022: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,036 0.0 % Luxembourg (1) 1,318,346 2.5 % United States 51,968,333 97.5 % Total Assets $ 53,293,715 100.0 % (1) Investment denominated in USD. |
Related Party Transactions and
Related Party Transactions and Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Note 4 — Related Party Transactions and Arrangements Investment Advisory Fee Payments for investment advisory services under the Company’s investment advisory agreement (the “Investment Advisory Agreement”) and administrative services agreement (the “Administration Agreement”) are equal to (a) a base management fee calculated at an annual rate of 2.0% of the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters and (b) an incentive fee based on the Company’s performance. Effective June 5, 2017, the Investment Advisory Agreement and the Administration Agreement were amended to exclude cash and cash equivalents from the calculation of gross assets for the purpose of calculating investment advisory and administration fees. For the years ended December 31, 2023, 2022 and 2021, the Company incurred investment advisory fees payable to the Adviser of $942,612, $1,096,487 and $1,220,044, respectively. Amounts waived for investment advisory fees or administrative fees pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for investment advisory fees or administrative fees pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s investment advisory fees, administration fees, Other Expenses (as defined under “Expense Limits and Reimbursements” below), and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of advisory fees. Incentive Fee The incentive fee consists of two parts. The first part, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears, and equals 20.0% of “pre-incentive pre-incentive pre-incentive “catch-up” pre-incentive pre-incentive “catch-up” pre-incentive The second part of the incentive fee, which is referred to as the incentive fee on capital gains, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20.0% of the Company’s incentive fee capital gains, which will equal the Company’s realized capital gains on a cumulative basis from formation, calculated as of the end of the applicable period, computed net of all realized capital losses (proceeds less amortized cost) and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. The Company will accrue for the capital gains incentive fee, which, if earned, will be paid annually. The Company will accrue for the capital gains incentive fee based on net realized and unrealized gains; however, under the terms of the Investment Advisory Agreement, the fee payable to the Adviser will be based on realized gains and no such fee will be payable with respect to unrealized gains unless and until such gains are actually realized. For the years ended December 31, 2023, 2022 and 2021, the Company incurred $0, $0 and $0 of incentive fees on capital gains, respectively. Since inception, the Company has accrued $0 of incentive fees on capital gains in aggregate. Effective December 20, 2017, the Adviser ended its voluntary waiver of incentive fees. No such fees have been paid with respect to realized gains to the Adviser as of December 31, 2023. Administration Fee Pursuant to the Administration Agreement with the Adviser, the Company also reimburses the Adviser for expenses necessary for its performance of services related to the Company’s administration and operations. The amount of the reimbursement will be the lesser of (1) the Company’s allocable portion of overhead and other expenses incurred by the Adviser in performing its obligations under the Administration Agreement and (2) 0.40% of the Company’s average gross assets, (excluding cash and cash equivalents). The Adviser is required to allocate the cost of such services to the Company based on objective factors such as assets, revenues, time allocations and/or other reasonable metrics. The Board assesses the reasonableness of such reimbursements based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party service providers known to be available. In addition, the Board will consider whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Board will compare the total amount paid to the Adviser for such services as a percentage of the Company’s net assets to the same ratio as reported by other comparable BDCs. For the years ended December 31, 2023, 2022 and 2021, the Company incurred administration fees payable to the Adviser of $194,764, $226,948 and $244,754, respectively. Amounts waived for management fees or administrative services expenses pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for management fees or administrative services, expenses pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s advisory fees, administration fees, Other Expenses, and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of administration fees. Organization and Offering Costs Organization costs include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization, and are paid by the Adviser. For the years ended December 31, 2023, 2022 and 2021, the Adviser did not incur or pay organization costs on our behalf. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock, and are capitalized and amortized to expense over one year. The Company’s continuous public offering ended on February 14, 2018. Organization costs and offering costs are limited to 1% of total gross proceeds raised in the offering and are not due and payable to the Adviser to the extent they exceed that amount. As of December 31, 2023, the cumulative aggregate amount of $5,327,574 of organization and offering costs exceeds 1% of total proceeds raised. Subsequent to the termination of the offering, the Adviser forfeited the right to reimbursement of the remaining $4,305,091 of these costs. Fees Paid to Officers and Directors Each director who oversees all of the portfolios in the Fund Complex receives an annual retainer of $150,000 payable in quarterly installments and allocated among each portfolio in the Fund Complex based on relative net assets. The annual retainer for a director who does not oversee all of the portfolios in the Fund Complex is prorated based on the portion of the $150,000 annual retainer allocable to the portfolios overseen by such director. Directors are reimbursed for actual out-of-pocket For the years ended December 31, 2023, 2022 and 2021, the Company recorded an expense relating to director fees of $15,194, $18,170 and $17,781, respectively, which represents the allocation of the director fees to the Company. As of December 31, 2023, there were no expenses payable relating to director fees. Expense Limits and Reimbursements Pursuant to an expense limitation agreement, the Adviser is contractually obligated to waive fees and, if necessary, pay or reimburse certain other expenses to limit the ordinary “Other Expenses” to 1.0% of the quarter-end one-year Any expenses waived or reimbursed by the Adviser pursuant to the Expense Limitation Agreement are subject to possible recoupment by the Adviser within three years from the date of the waiver or reimbursement. The recoupment by the Adviser will be limited to the amount of previously waived or reimbursed expenses and cannot cause the Company’s expenses to exceed any expense limitation in place at the time of recoupment or waiver. Reimbursable Expenses Table The cumulative total of fees waived by the Adviser under the Expense Limitation Agreement, which are recoupable as of December 31, 2023 is $1,093,631. This balance, and the balances in the tables below, only include amounts pertaining to the Expense Limitation Agreement, and do not include waived advisory and administration fees subject to recoupment discussed earlier in Note 4. The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2023 $ 902,219 $ 481,443 $ 420,776 $ 140,233 December 31, 2026 September 30, 2023 630,924 350,382 280,543 96,669 September 30, 2026 June 30, 2023 420,066 236,192 183,874 102,016 June 30, 2026 March 31, 2023 208,486 126,628 81,858 81,858 March 31, 2026 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2022 $ 913,273 $ 535,679 $ 377,594 $ 92,216 December 31, 2025 September 30, 2022 678,333 392,955 285,378 124,667 September 30, 2025 June 30, 2022 434,019 273,308 160,711 98,950 June 30, 2025 March 31, 2022 211,896 150,135 61,761 61,761 March 31, 2025 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2021 $ 892,640 $ 597,379 $ 295,261 $ 94,762 December 31, 2024 September 30, 2021 664,052 463,553 200,499 68,134 September 30, 2024 June 30, 2021 436,866 304,501 132,365 68,919 June 30, 2024 March 31, 2021 220,126 156,680 63,446 63,446 March 31, 2024 During the year ended December 31, 2023, $349,488 of expense reimbursements that were eligible for recoupment by the Adviser expired. There can be no assurance that the Expense Limitation Agreement will remain in effect or that the Adviser will reimburse any portion of the Company’s expenses in future quarters not covered by the Expense Limitation Agreement. Amounts shown do not include the amounts committed by the Adviser to voluntarily reimburse the Company for unrealized losses, all of which are not recoupable. Net Increase from Amounts Committed by Affiliates For the years ended December 31, 2023 and December 31, 2022, the Adviser did not voluntarily reimburse the Company for unrealized losses sustained. Cumulatively since inception, the Adviser has committed $2,275,000 to voluntarily reimburse the Company for such losses. Had these commitments not been made, since inception, the NAV as of December 31, 2023 would have been lower by approximately this amount. Amounts committed and paid by the Adviser to reimburse for unrealized losses are nonrecurring, and investors should not expect the Adviser to make similar commitments or payments in the future. Receivable from Adviser / Payable to Adviser As of December 31, 2023 and December 31, 2022, $137,648 and $92,216 were owed from the Adviser to the Company, respectively, largely related to the expense limitation agreement. As of December 31, 2023 and December 31, 2022, the Company owed $284,896 and $314,993, respectively, to the Adviser, largely related to advisory fees, and administration fees. Indemnification Under the Company’s organizational documents, the officers and Directors have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Company. Additionally, in the normal course of business, the Company may enter into contracts with service providers that contain a variety of indemnification clauses. The Company’s maximum exposure under these arrangements is dependent on future claims that may be made against the Company and, therefore, cannot be estimated. |
U.S. Federal Income Tax Informa
U.S. Federal Income Tax Information | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
U.S. Federal Income Tax Information | Note 5 — U.S. Federal Income Tax Information The Company has elected to be treated for federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code. To maintain its qualification as a RIC, the Company must, among other things, meet certain source-of-income The character of income and capital gains to be distributed is determined in accordance with the Code, U.S. Treasury regulations, and other applicable authority, which may differ from GAAP. These differences include (but are not limited to) investments organized as partnerships for tax purposes, total return swaps, loan investments, and losses deferred due to wash sale transactions. Reclassifications are made to the Company’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under the Code, U.S. Treasury regulations, and other applicable authority. These reclassifications have no impact on net investment income, realized gains or losses, or net asset value of the Company. The calculation of net investment income per share in the Financial Highlights table excludes these adjustments. As of December 31, 2023, 2022 and 2021, the Company made the following permanent book tax differences and reclasses: 2023 2022 2021 Paid in capital excess of par value $ (19,894 ) $ (533,512 ) $ 2,104,942 Distributions in excess of net investment income (1) (2,103 ) (308,998 ) 1,143,870 Accumulated realized gains (1) 21,997 842,510 (3,248,812 ) (1) Amounts are included in distributable earnings (accumulated loss) on the Consolidated Statements of Assets and Liabilities. During the year ended December 31, 2023, the differences between book and tax accounting were due primarily to a non-deductible tax expense and a prior year true-up. For the years ended December 31, 2023, 2022 and 2021, the Company’s tax year end, components of distributable earnings on a tax basis are as follows: 2023 2022 2021 Undistributed ordinary income $ — $ — $ 72,812 Net tax appreciation/(depreciation) 3,674,703 (1,567,035 ) 2,708,891 Undistributed capital gains — — — Other temporary differences (848,575 ) (883,602 ) (910,576 ) For the years ended December 31, 2023, 2022 and 2021, the Company had $(36,246,978), $(30,814,250) and $(30,077,894) of capital loss carryovers, respectively. The tax character of shareholder distributions attributable to the fiscal years ended December 31, 2023, 2022 and 2021, were as follows: Paid Distributions attributable to: 2023 2022 2021 Ordinary income $ 1,629,804 $ 1,526,458 $ 3,633,179 Return of capital 1,757,477 1,999,373 — Long term gain — — — Unrealized appreciation and depreciation at December 31, 2023, 2022 and 2021, based on cost of investments for U.S. federal income tax purposes were as follows: Gross appreciation Gross (depreciation) Net Cost December 31, 2023 $ 9,837,724 $ (6,163,021 ) $ 3,674,703 $ 45,438,583 December 31, 2022 7,373,938 (8,940,973 ) (1,567,035 ) 54,860,750 December 31, 2021 4,599,564 (1,890,673 ) 2,708,891 57,527,420 The tax adjustments that impact cost are wash sales, partnerships and basis adjustments on loan investments. Uncertainty in Income Taxes The Company will evaluate its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company’s tax returns are subject to examination by the Internal Revenue Service for a period of three fiscal years after they are filed. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the Consolidated Statements of Operations. During the years ended December 31, 2023, 2022 and 2021, the Company did not incur any interest or penalties. Furthermore, management of the Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. Income Taxes The Company has elected to be treated as a RIC under the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, the Company must, among other requirements, meet certain source-of-income Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Company accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned. The Company may hold certain portfolio company investments through consolidated taxable subsidiaries. The Company does not expect for the investments of its consolidated taxable subsidiaries to be subject to state income taxes. Accordingly, the Company’s provision for income taxes consists solely of a federal deferred tax asset and is reflective of only the U.S. federal statutory corporate tax rate of 21.0%. These consolidated subsidiaries recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in which any such temporary differences are expected to reverse. As of December 31, 2023 and 2022, the Company recorded deferred tax assets of $ and $ , r espectively, included within “Deferred tax asset” in the accompanying consolidated balance sheet, for certain of the Company’s taxable consolidated subsidiaries. The only component of the deferred tax asset is net unrealized depreciation on portfolio investments held within the taxable subsidiaries. Management believes that the realization of the deferred tax assets is more likely than not based on expectations as to future taxable income and scheduled reversals of temporary differences. Accordingly, the Company did not record a valuation allowance related to its deferred tax assets as of December 31, 2023. The Company’s effective tax rates for the year ended December 31, 2023 and 2022 were (0.89)% and 0%, respectively. Our effective tax rate differs from the U.S. federal statutory corporate tax rate of 21.0% primarily due to our RIC operations generally not being subject to federal income taxes. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Share Repurchase Program | Note 6 — Share Repurchase Program On a quarterly basis, the Company intends to offer to repurchase shares of common stock on such terms as may be determined by the Board in its complete and absolute discretion unless, in the judgment of directors who are not “interested persons” of the Company (as defined in the 1940 Act), such repurchases would not be in the best interests of the Company’s stockholders or would violate applicable law. The Company will conduct such repurchase offers in accordance with the requirements of Rule 13e-4 The Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number of shares of common stock it can repurchase with the proceeds it receives from the sale of shares of common stock under its distribution reinvestment plan. At the discretion of the Board, the Company may also use cash on hand, cash available from borrowings and cash from liquidation of securities investments as of the end of the applicable period to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased in any calendar year to 10.0% of the weighted average number of shares of common stock outstanding in the prior calendar year, or 2.5% in each quarter, though the actual number of shares of common stock that the Company offers to repurchase may be less in light of the limitations noted above. The Company intends to offer to repurchase such shares of common stock at a price (i) not less than the net asset value per share (the “NAV Per Share”) of the Company’s common stock next calculated following the Expiration Date, and (ii) not more than 2.5% greater than the NAV Per Share as of such date. The Board may amend, suspend or terminate the share repurchase program at any time, upon 30 days The Company conducted its quarterly tender offer for the first quarter of 2023 from February 23, 2023, until expiration of March 24, 2023, The Company conducted its quarterly tender offer for the second quarter of 2023 from May 19, 2023, until expiration of June 20, 2023 The Company conducted its quarterly tender offer for the third quarter of 2023 from August 23, 2023, until expiration of September 25, 2023 The Company conducted its quarterly tender offer for the fourth quarter of 2023 from November 17, 2023, until expiration of December 18, 2023 , For the year ended December 31, 2023, the Company repurchased 0 shares as part of its death and disability repurchase program. |
Economic Dependency and Commitm
Economic Dependency and Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Economic Dependency and Commitments and Contingencies | Note 7 — Economic Dependency and Commitments and Contingencies The Adviser has entered into a Services Agreement with Skyview, effective February 25, 2021, pursuant to which the Adviser will receive administrative and operational support services to enable it to provide the required advisory services to the Company. The Adviser, and not the Company, will compensate all Adviser and Skyview personnel who provide services to the Company. From time to time, the Company may be involved in legal proceedings in the normal course of its business. Although the outcome of such litigation cannot be predicted with any clarity, management is of the opinion, based on the advice of legal counsel, that final dispositions of any litigation should not have a material adverse effect on the financial position of the Company as of December 31, 2023. Unfunded commitments to provide funds to portfolio companies are not recorded in the Company’s Consolidated Statements of Assets and Liabilities. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company has sufficient liquidity to fund these commitments. As of December 31, 2023, the Company had no unfunded debt commitments. In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these agreements is unknown, as this would involve future claims that may be made against the Company that have not occurred. The Company believes the risk of material obligations under these indemnities to be low. |
Market and Other Risk Factors
Market and Other Risk Factors | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Market and Other Risk Factors | Note 8 — Market and Other Risk Factors The primary risks of investing in the Company are described below in alphabetical order: Conflict of Interest Risk The Adviser or its affiliates may have other clients with similar, different or competing investment objectives. In serving in these multiple capacities, they may have obligations to other clients or investors in those other entities, the fulfillment of which may not be in the best interests of us or our stockholders. For example, our Adviser and its affiliates manage or sponsor other investment funds, accounts or other investment vehicles. Our investment objective may overlap with the investment objectives of such affiliated investment funds, accounts or other investment vehicles. As a result, our Adviser may face conflicts of interest in the allocation of investment opportunities among us and other investment funds, accounts or other investment vehicles advised by or affiliated with our Adviser. Our Adviser will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time. Where we are able to co- pre-transaction Concentration Risk The Company is classified as a non-diversified under the Code and certain contractual diversification requirements under a credit facility or other agreements, the Company does not have fixed guidelines for diversification, and its investments could be concentrated in relatively few portfolio companies. As a result, the aggregate returns the Company realizes may be significantly adversely affected if a small number of investments perform poorly or if the Company needs to write down the value of any one investment. Additionally, the Company’s investments may be concentrated in relatively few industries. As a result, a downturn in any particular industry in which the Company is invested could also significantly impact the aggregate returns realized. Covenant-Lite Loans Risk Loans in which the Company invests include covenant-lite loans, which carry more risk to the lender than traditional loans as they may contain fewer or less restrictive covenants on the borrower than traditionally included in loan documentation or may contain other borrower friendly characteristics. The Company may experience relatively greater difficulty or delays in enforcing its rights on its holdings of certain covenant-lite loans and debt securities than its holdings of loans or securities with the usual covenants. Counterparty Credit Risk Counterparty credit risk is the potential loss the Company may incur as a result of the failure of a counterparty or an issuer to make payments according to the terms of a contract. Counterparty credit risk is measured as the loss the Company would record if its counterparties failed to perform pursuant to the terms of their obligations to the Company. Because the Company may enter into over-the-counter Credit Risk Debt securities are subject to the risk of non-payment Non-payment non-payment Investments rated below investment grade are commonly referred to as high-yield, high risk or “junk debt.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and/or interest payments. Investments in high yield debt and high yield senior loans may result in greater net asset value fluctuation than if the Company did not make such investments. Corporate debt obligations, including senior loans, are subject to the risk of non-payment Non-payment non-payment Payment-In-Kind Because loans are not ordinarily registered with the SEC or any state securities commission or listed on any securities exchange, there is usually less publicly available information about such instruments. In addition, loans may not be considered “securities” for purposes of the anti-fraud protections of the federal securities laws and, as a result, as a purchaser of these instruments, the Company may not be entitled to the anti-fraud protections of the federal securities laws. In the course of investing in such instruments, the Company may come into possession of material nonpublic information and, because of prohibitions on trading in securities of issuers while in possession of such information, the Company may be unable to enter into a transaction in a publicly- traded security of that issuer when it would otherwise be advantageous for us to do so. Alternatively, the Company may choose not to receive material nonpublic information about an issuer of such loans, with the result that the Company may have less information about such issuers than other investors who transact in such assets. Foreign Securities Risk Investments in foreign securities involve certain factors not typically associated with investing in U.S. securities, such as risks relating to (i) currency exchange matters, including fluctuations in the rate of exchange between the U.S. dollar (the currency in which the books of the Company are maintained) and the various foreign currencies in which the Company’s portfolio securities will be denominated and costs associated with conversion of investment principal and income from one currency into another; (ii) differences between the U.S. and foreign securities markets, including the absence of uniform accounting, auditing and financial reporting standards and practices and disclosure requirements, and less government supervision and regulation; (iii) political, social or economic instability; and (iv) the extension of credit, especially in the case of sovereign debt. Illiquid Securities Risk The Company will generally make investments in private companies. Substantially all of these investments will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of the Company’s investments may make it difficult for the Company to sell such investments if the need arises. In addition, if it is required to liquidate all or a portion of its portfolio quickly, the Company may realize significantly less than the value at which it has previously recorded its investments. In addition, it may face other restrictions on its ability to liquidate an investment in a portfolio company to the extent that it has material non-public The Company may seek to address its short-term liquidity needs by carefully managing the settlements of its portfolio transactions, including transactions in loans, by maintaining short-term liquid assets sufficient to meet reasonably anticipated obligations, and by maintaining a credit facility. Interest Rate Risk Interest Rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. When interest rates decline, the value of fixed rate securities already held by the Company can be expected to rise. Conversely, when interest rates rise, the value of existing fixed rate portfolio securities can be expected to decline. A company with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration Recent and potential future changes in government monetary policy may affect the level of interest rates. Investments in Foreign Markets Risk Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, tariffs and taxes, subject to delays in settlements, and their prices may be more volatile. The Company may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned. Leverage Risk The Company may use leverage in its investment program, including the use of borrowed funds and investments in certain types of options, such as puts, calls and warrants, which may be purchased for a fraction of the price of the underlying securities. While such strategies and techniques increase the opportunity to achieve higher returns on the amounts invested, they also increase the risk of loss. To the extent the Company purchases securities with borrowed funds, its net assets will tend to increase or decrease at a greater rate than if borrowed funds are not used. If the interest expense on borrowings were to exceed the net return on the portfolio securities purchased with borrowed funds, the Company’s use of leverage would result in a lower rate of return than if the Company were not leveraged. Operational and Technology Risk The risk that cyber-attacks, disruptions, or failures that affect the Funds’ service providers, counterparties, market participants, or issuers of securities held by the Funds may adversely affect the Funds and its shareholders, including by causing losses for the Funds or impairing Fund operations. Options Risk There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A transaction in options or securities may be unsuccessful to some degree because of market behavior or unexpected events. When the Company writes a covered call option, the Company forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retains the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation and once an option writer has received an exercise notice, it must deliver the underlying security in exchange for the strike price. When the Company writes a covered put option, the Company bears the risk of loss if the value of the underlying stock declines below the exercise price minus the put premium. If the option is exercised, the Company could incur a loss if it is required to purchase the stock underlying the put option at a price greater than the market price of the stock at the time of exercise plus the put premium the Company received when it wrote the option. While the Company’s potential gain in writing a covered put option is limited to distributions earned on the liquid assets securing the put option plus the premium received from the purchaser of the put option, the Company risks a loss equal to the entire exercise price of the option minus the put premium. Pandemics and Associated Economic Disruption Risk An outbreak of respiratory disease caused by a novel coronavirus (“COVID-19”) pre-existing Senior Loans Risk The risk that the issuer of a senior loan may fail to pay interest or principal when due, and changes in market interest rates may reduce the value of the senior loan or reduce the Company’s returns. The risks associated with senior loans are similar to the risks of high yield debt securities. Senior loans and other debt securities are also subject to the risk of price declines and to increases in interest rates, particularly long-term rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may increase the risk of default. In addition, the interest rates of floating rate loans typically only adjust to changes in short-term interest rates; long-term interest rates can vary dramatically from short-term interest rates. Therefore, senior loans may not mitigate price declines in a long-term interest rate environment. The Company’s investments in senior loans are typically below investment grade and are considered speculative because of the credit risk of their issuers. Structured Finance Securities Risk A portion of the Company’s investments may consist of equipment trust certificates, collateralized mortgage obligations, collateralized bond obligations, collateralized loan obligations (“CLO”) or similar instruments. Such structured finance securities are generally backed by an asset or a pool of assets, which serve as collateral. Depending on the type of security, the collateral may take the form of a portfolio of mortgage loans or bonds or other assets. The Company and other investors in structured finance securities ultimately bear the credit risk of the underlying collateral. In some instances, the structured finance securities are issued in multiple tranches, offering investors various maturity and credit risk characteristics, often categorized as senior, mezzanine and subordinated/equity according to their degree of risk. The riskiest securities are the equity tranche, which bears the bulk of defaults from the bonds or loans serving as collateral, and thus may protect the other, more senior tranches from default. If there are defaults or the relevant collateral otherwise underperforms, scheduled payments to senior tranches of such securities take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches. A senior tranche typically has higher ratings and lower yields than the underlying securities, and may be rated investment grade. Despite the protection from the equity tranche, other tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to previous defaults and the disappearance of protecting tranches, market anticipation of defaults and aversion to certain structured finance securities as a class. Short-Selling Risk Short sales by the Company that are not made where there is an offsetting long position in the asset that it is being sold short theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. Short selling allows the Company to profit from declines in market prices to the extent such decline exceeds the transaction costs and costs of borrowing the securities. However, since the borrowed securities must be replaced by purchases at market prices in order to close out the short position, any appreciation in the price of the borrowed securities would result in a loss. Purchasing securities to close out the short position can itself cause the price of securities to rise further, thereby exacerbating the loss. The Company may mitigate such losses by replacing the securities sold short before the market price has increased significantly. Under adverse market conditions, the Company might have difficulty purchasing securities to meet margin calls on its short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary to meet its short sale obligations at a time when fundamental investment considerations would not favor such sales. Further, if other short positions of the same security are closed out at the same time, a “short squeeze” can occur where demand exceeds the supply for the security sold short. A short squeeze makes it more likely that the Adviser will need to replace the borrowed security at an unfavorable price. |
Affiliated Investments
Affiliated Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Affiliated Investments | Note 9 — Affiliated Investments Under Section 2(a)(3) of the 1940 Act, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its outstanding voting securities or if the portfolio company is under common control. The table below shows affiliated issuers of the Company as of December 31, 2023: Affiliated Shares at December 31, 2022 Fair value as of December 31, 2022 Purchases Sales (1) Realized Change in Fair value as of December 31, 2023 Shares at December 31, 2023 Affiliated NexPoint Residential Trust, Inc. 23,409 $ 1,018,779 $ — $ 3,048 $ 52,401 $ (215,840 ) $ 805,987 23,409 $ (9,033 ) NexPoint Capital REIT, LLC 100 1,176,024 7,448,085 (244,193 ) — (1,365,142 ) 7,014,774 737 572,121 NexPoint Capital REIT, LLC — — 463,314 — — — 463,314 463,314 — NexPoint Real Estate Finance, Inc. 481,670 7,653,730 — (7,481,124 ) 16,308 1,901,191 2,073,797 131,670 231,424 SFR WLIF III, LLC 451,112 424,468 (1 ) (80,000 ) — (5,494 ) 338,973 371,112 43,327 Total affiliated investments 956,291 $ 10,273,001 $ 7,911,398 $ (7,802,269 ) $ 68,709 $ 314,715 $ 10,696,845 1,453,556 $ 837,839 (1) The sales figures reported above include dividends from the return of capital. Additionally, some of the sales transactions were made to the subreit at cost, thereby not generating any realized gain or loss. |
Financial Highlights
Financial Highlights | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 10 — Financial Highlights Selected data for a share outstanding throughout the year ended December 31, 2023, 2022, 2021, 2020 and 2019 is as follows: For the Year For the Year Ended For the Year Ended For the Year For the Year Common shares per share operating performance: Net asset value, beginning of period $ 5.55 $ 6.32 $ 6.13 $ 8.53 $ 8.36 Income from investment operations: Net investment income (1) 0.17 0.18 0.19 0.24 0.30 Net realized and unrealized gain (loss) (0.02 ) (0.59 ) 0.37 (2.22 ) 0.59 Total from investment operations 0.15 (0.41 ) 0.56 (1.98 ) 0.89 Less distribution declared to common shareholders: From net investment income (0.18 ) (0.16 ) (0.37 ) (0.42 ) (0.60 ) From net realized gains — — — — (0.12 ) From return of capital (0.18 ) (0.20 ) — — — Total distributions declared to common shareholders (0.36 ) (0.36 ) (0.37 ) (0.42 ) (0.72 ) Capital share transaction Issuance of common stock (2) — — — — — Shares tendered (1) — (3) — — (3) — (3) — (3) Net asset value, end of period $ 5.35 $ 5.55 $ 6.32 $ 6.13 $ 8.53 Net asset value total return (4) 3.20 % (6.65 )% 9.12 % (23.17 )% 10.86 % Ratio and supplemental data: Net assets, end of period (in 000’s) $ 49,810 $ 53,694 $ 62,939 $ 64,190 $ 88,936 Shares outstanding, end of period 9,309,405 9,677,593 9,956,228 10,475,168 10,425,431 Common share information at end of period: Ratios based on weighted average net assets of common shares: Gross operating expenses 4.12 % 3.82 % 3.78 % 3.99 % 5.36 % Fees and expenses waived or reimbursed (0.83 )% (0.63 )% (0.45 )% (0.54 )% (0.16 )% Net operating expenses 3.20 % 3.19 % 3.33 % 3.45 % 5.20 % Net investment income (loss) before fees waived or reimbursed 2.40 % 2.43 % 2.50 % 3.41 % 3.33 % Net investment income (loss) after fees waived or reimbursed 3.22 % 3.06 % 2.95 % 3.95 % 3.50 % Ratio of interest and credit facility expenses to average net assets — % — % — % 0.27 % 1.37 % Portfolio turnover rate 9 % 16 % 13 % 83 % 42 % Asset coverage ratio — % — % — % — % 241 % Weighted average commission rate paid (5) $ — $ — $ — $ 0.0328 $ 0.0331 (1) Per share data was calculated using weighted average shares outstanding during the period. (2) The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date times (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding at the end of the period. The Company’s continuous public offering ended on February 14, 2018. (3) Amount rounds to less than $0.005 per share. (4) Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions, and assume no sales charge. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s Dividend Reinvestment Plan. Had the Adviser not absorbed a portion of expenses, total returns would have been lower. (5) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of portfolio shares purchased and sold for which commissions were charged. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2023 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 11 — Selected Quarterly Financial Data (Unaudited) Quarter ended December 31, September 30, June 30, March 31, Total investment income $ 540,182 $ 1,058,773 $ 918,436 $ 814,832 Total investment income per common share 0.06 0.11 0.10 0.08 Net investment income 109,719 681,628 512,066 363,521 Net investment income per common share 0.01 0.07 0.05 0.04 Net realized and unrealized gain (loss) 1,732,521 22,833 (627,003 ) (1,341,338 ) Net realized and unrealized gain (loss) per common share 0.19 0.00 (0.07 ) (0.14 ) Net increase (decrease) in net assets resulting from operations 1,842,240 704,461 (114,937 ) (977,817 ) Basic and diluted earnings (loss) per common share 0.19 0.07 (0.01 ) (0.10 ) Net asset value per common share at end of quarter 5.35 5.24 5.26 5.36 Quarter ended December 31, September 30, June 30, March 31, Total investment income $ 584,515 $ 993,592 $ 1,099,896 $ 1,014,610 Total investment income per common share 0.06 0.10 0.11 0.10 Net investment income 113,631 555,608 629,257 491,122 Net investment income per common share 0.01 0.06 0.06 0.05 Net realized and unrealized gain (loss) 257,082 (3,208,231 ) (3,557,538 ) 653,895 Net realized and unrealized gain (loss) per common share 0.03 (0.32 ) (0.36 ) 0.07 Net increase (decrease) in net assets resulting from operations 370,713 (2,652,623 ) (2,928,281 ) 1,145,017 Basic and diluted earnings (loss) per common share 0.04 (0.27 ) (0.29 ) 0.11 Net asset value per common share at end of quarter 5.55 5.60 5.96 6.35 The sum of quarterly per share amounts may not equal per share amounts reported for the years ended December 31, 2023 and 2022. This is due to changes in the number of weighted average shares outstanding and the effects of rounding for each period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subseqent Events | Note 12 — Subsequent Events The Company has evaluated subsequent events through the date on which these consolidated financial statements were issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Article 6 of Regulation S-X. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
Statements of Cash Flows | Statements of Cash Flows Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Consolidated Statements of Cash Flows. The cash amount shown in the Consolidated Statements of Cash Flows is the amount included within the Company’s Consolidated Statements of Assets and Liabilities and includes cash on hand and cash equivalents at its custodian bank. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign currencies, if any, is determined by converting to U.S. dollars on the date of the Consolidated Statements of Assets and Liabilities. As of December 31, 2023 and 2022, the Company had cash and cash equivalents of $1,401,744 and $1,629,846, respectively. As of December 31, 2023 and 2022, $1,160,707 and $1,420,428 was held in the State Street U.S. Government Money Market Fund, and $241,037 and $209,418 was held in a custodial account with State Street Bank and Trust Company, respectively. |
Securities Sold Short and Restricted Cash | Securities Sold Short and Restricted Cash The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the Consolidated Statements of Assets and Liabilities, when applicable. Securities held as collateral for securities sold short are shown on the Schedules of Investments for the Company, as applicable. As of December 31, 2023 and 2022, the Company did not have any securities sold short. When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for non-hedging |
Other Fee Income | Other Fee Income Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction break-up non-recurring |
Fair Value of Financial Instruments | Fair Value of Financial Instruments It is the Company’s policy to hold the investments at fair value. ASC Topic 820, Fair Value Measurements and Disclosure Pursuant to Rule 2a-5 2a-5 With respect to investments for which market quotations are not readily available, the Adviser undertakes a multi-step valuation process each quarter, as described below: • The valuation process begins with each portfolio company or investment being initially valued by investment professionals of the Adviser responsible for credit monitoring or independent third party valuation firms. • Preliminary valuation conclusions are then documented and discussed with a committee comprised of certain senior management employees of the Adviser (the “Valuation Committee”) established by the Adviser to assist the Adviser in discharging its responsibilities as valuation designee. • At least once each quarter, the valuations for approximately one quarter of the portfolio investments that have been fair valued are reviewed by an independent valuation firm such that, over the course of a year, each material portfolio investment that has been fair valued shall have been reviewed by an independent valuation firm at least once. • Based on this information, the Adviser discusses valuations and determines the fair value of each investment in the portfolio in good faith pursuant to board-approved policies and procedures. As of December 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 84 American Banknote Corp. Common Stocks 3,536,250 IQHQ, Inc. Common Stocks 2,533,000 MPM Holdings, Inc. Common Stocks 42,500 MidWave Wireless, Inc. (fka Terrestar Corp.) Common Stocks 4,732,181 NexPoint Capital REIT, LLC LLC Interests 7,014,774 SFR WLIF III, LLC LLC Interests 338,973 US Gaming, LLC LLC Interests 3,016,752 Apnimed, Inc. Preferred Stocks 1,644,435 Apnimed, Inc. Preferred Stocks 928,197 Sapience Therapeutics, Inc. Preferred Stocks 4,452,382 Sapience Therapeutics, Inc. Preferred Stocks 3,611,111 CCS Medical, Inc Senior Secured Loans 3,000,000 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 912,118 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 215,938 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 38,579 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 35,994 NexPoint Capital REIT, LLC Senior Secured Loans 463,314 PlantSwitch, Inc. Senior Secured Loans 2,000,000 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 Terrestar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 Terrestar Corp. Senior Secured Loans 810,953 Terrestar Corp. Senior Secured Loans 191,988 Terrestar Corp. Senior Secured Loans 34,300 Terrestar Corp. Senior Secured Loans 32,002 Determination of fair value involves subjective judgments and estimates. Accordingly, the consolidated notes to the Company’s consolidated financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, in the Company’s consolidated financial statements. Below is a description of factors that the Adviser and the Valuation Committee may consider when valuing the Company’s debt and equity investments. Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Adviser and the Valuation Committee may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The Company’s equity investments in portfolio companies for which there is no liquid public market will be valued at fair value. The Adviser and the Valuation Committee, in its analysis of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items. The Adviser and the Valuation Committee may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Adviser and the Valuation Committee may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price. If the Company receives warrants or other equity-linked securities at nominal or no additional cost in connection with an investment in a debt security, the Company will allocate the cost basis in the investment between the debt securities and any such warrants or other equity-linked securities received at the time of origination. The Adviser and the Valuation Committee will subsequently value these warrants or other equity-linked securities received at fair value. As applicable, the Company values its Level 2 assets by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which is provided by an independent third-party pricing service and screened for validity by such service. For investments for which the third-party pricing service is unable to obtain quoted prices, the Company obtains bid and ask prices directly from dealers who make a market in such investments. To the extent that the Company holds investments for which no active secondary market exists and, therefore, no bid and ask prices can be readily obtained, the Adviser and the Valuation Committee utilize an independent third-party valuation service to value such investments in a manner consistent with the Company’s multistep valuation process previously described. The Company periodically benchmarks the bid and ask prices received from the third-party pricing service and/or dealers, as applicable, and valuations received from the third-party valuation service against the actual prices at which it purchases and sells its investments. The Company believes that these prices are reliable indicators of fair value. The Adviser and the Valuation Committee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation procedures. As of December 31, 2023, the Company’s investments consisted of senior secured loans, asset-backed securities, common stocks, LLC interests, preferred stocks, corporate bonds, and warrants, which may be purchased for a fraction of the price of the underlying securities. The fair value of the Company’s loans, bonds and asset-backed securities are generally based on quotes received from brokers or independent pricing services. Loans, bonds and asset-backed securities with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Loans, bonds and asset-backed securities that are priced using quotes derived from implied values, indicative bids or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. The fair value of the Company’s common stocks and options that are not actively traded on national exchanges are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. Exchange traded options are valued based on the last trade price on the primary exchange on which they trade. If an option does not trade, the mid-price At the end of each calendar quarter, the Adviser evaluates the Level 2 and 3 investments for changes in liquidity, including: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market price, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Company may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of December 31, 2023 and December 31, 2022: December 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 3,592,574 $ 3,000,000 $ 6,592,574 Telecommunication Services — — 1,202,629 1,202,629 Bioplastics 2,000,000 2,000,000 Real Estate 463,314 463,314 Asset-Backed Securities Financials — — 84 84 Corporate Bonds Consumer Discretionary — 488,665 — 488,665 Media/Telecommunications — 238,858 — 238,858 Common Stocks Chemicals — — 42,500 42,500 Energy — 2,237,604 — 2,237,604 Financials — — 3,536,250 3,536,250 Real Estate 2,073,797 — 2,533,000 4,606,797 Real Estate Investment Trust (REITs) 805,987 — — 805,987 Telecommunication Services — — 4,732,181 4,732,181 LLC Interests Consumer Products — — 3,016,752 3,016,752 Real Estate — — 7,353,747 7,353,747 Preferred Stocks Financials — 1,186,250 — 1,186,250 Healthcare — — 10,636,125 10,636,125 Warrants Energy — 266,500 — 266,500 Media/Telecommunications — 6,469 — 6,469 Total Assets $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 Total Investments $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trust (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2023. Investments: Balance as of Transfers Transfers Net Distribution Net Net change Purchases/ (Sales (1) Balance as of Change in Assets Senior Secured Loans Bioplastics $ — $ — $ — $ — $ — $ — $ — $ 2,000,000 $ — $ 2,000,000 $ — Healthcare 3,000,000 — — 19,034 — — (19,034 ) — — 3,000,000 (19,034 ) Real Estate — — — — — — — 463,314 — 463,314 — Telecommunication Services 1,069,243 — — — — — 2,014 131,372 — 1,202,629 2,014 Asset-Backed Securities Financials 7,036 — — — — (158,867 ) 162,924 8,136 (19,145 ) 84 (6,939 ) Common Stocks Chemicals — 42,500 — — — — — — — 42,500 — Financials 1,732,500 — — — — — 1,803,750 — — 3,536,250 1,803,750 Real Estate 2,359,000 — — — — — 174,000 — — 2,533,000 174,000 Service 2,269 — — — — (244,451 ) 251,135 — (8,953 ) — — Telecommunication Services 5,114,214 — — — — — (382,033 ) — — 4,732,181 (382,033 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 228,002 — (463,314 ) 3,016,752 228,002 Real Estate 1,600,492 — — — (244,193 ) — (1,370,637 ) 7,448,085 (80,000 ) 7,353,747 (1,370,637 ) Preferred Stocks Healthcare 10,527,285 — — — — 1 108,839 6,012,000 (6,012,000 ) 10,636,125 108,839 Total $ 28,500,789 $ 42,500 $ — $ 19,034 $ (244,193 ) $ (240,003 ) $ 958,960 $ 16,062,907 $ (6,583,412 ) $ 38,516,582 $ 537,962 (1) Includes sales to subreit at cost which generate no realized gain. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ (6,238 ) $ 113,003 $ — $ 1,069,243 $ (6,238 ) Healthcare 4,000,000 — — 16,520 — — 73,480 2,990,000 (4,080,000 ) 3,000,000 73,480 Asset-Backed Securities Financials 405,040 — — — — 24,930 (364,273 ) — (58,661 ) 7,036 (364,273 ) Common Stocks Financials 2,208,750 — — — — — (476,250 ) — — 1,732,500 (476,250 ) Real Estate 1,823,000 — — — — (1,440 ) 536,000 1,501,440 (1,500,000 ) 2,359,000 536,000 Service 5,172 — — — — — (2,903 ) — — 2,269 (2,903 ) Telecommunication Services 4,706,357 — — — — — 407,857 — — 5,114,214 407,857 LLC Interests Consumer Products 2,812,212 — — — — — 276,538 — — 3,088,750 276,538 Real Estate 4,760,162 — — — — (74,604 ) 174,219 1,215,000 (4,474,285 ) 1,600,492 174,219 Preferred Stocks Healthcare — — — — — — 447,299 10,079,986 — 10,527,285 447,299 Total $ 21,683,171 $ — $ — $ 16,520 $ — $ (51,114 ) $ 1,065,729 $ 15,899,429 $ (10,112,946 ) $ 28,500,789 $ 1,065,729 Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Investment Adviser continues to search for observable data points and evaluate broker quotes and indications received for portfolio investments. Determination of fair values is uncertain because it involves subjective judgements and estimates that are unobservable. Transfers from Level 2 to Level 3 are due to a decrease in market activity (e.g. frequency of trades), which resulted in a decrease of available market inputs to determine price. For the year ended December 31, 2023, there were 0 transfers from Level 2 to Level 3. For the year ended December 31, 2022, there were no transfers into Level 3. The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of December 31, 2023 and 2022: Investment Fair value at December 31, 2023 Valuation Technique Unobservable Inputs Range of Input Value(s) (arithmetic average) LLC Interests $ 10,370,499 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 5.48% - 9.68% (7.58%) 5.75x - 10.40x (8.07x) Preferred Stocks 10,636,125 Option Pricing Model Transaction Indication of Value Volatility Enterprise Value ($mm) 40% - 90% (65%) $281.4 - $598.6 ($452.75) Common Stocks 10,843,931 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) 13% - 15% (14.0%) 1.00x - 4.00x (2.31x) $0.10 - $0.90 ($0.50) $797 - $1,044 ($920.5) Liquidation Analysis N/A $5.00 Senior Secured Loans 6,665,943 Discounted Cash Flow Transaction Indication of Value Discount Rate Cost Price ($mm) 11.00% - 14.31% (12.64%) $2.46 Asset-Backed Securities 84 NAV Approach Discount Rate N/A Total $ 38,516,582 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stocks 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stocks 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Net Asset Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 The significant unobservable inputs used in the fair value measurement of the Company’s LLC interests are: discount rate and multiples of EBITDA. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s common equity securities are: multiple of EBITDA, unadjusted price/MHz-PoP isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s asset-backed securities is the discount rate. Significant increases (decreases) in this input in isolation could result in a significantly lower (higher) fair value measurement. Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Investment Adviser continues to search for observable data points and evaluate broker quotes and indications received for port f For the quarter ended December 31, 2023, there was one Common Stock position that transferred into Level 3. |
Derivative Transactions | Derivative Transactions The Company is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Company may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Company can make. The Company may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Company, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes. |
Options | Options The Company purchases options, subject to certain limitations. The Company may invest in options contracts to manage its exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase the Company’s exposure to the underlying instrument while buying puts and writing calls tend to decrease the Company’s exposure to the underlying instrument, or economically hedge other Company investments. The Company’s risks in using these contracts include changes in the value of the underlying instruments, nonperformance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price. As of and during the year ended December 31, 2023 and 2022, the Company did not hold options. |
Investment Transactions | Investment Transactions Investment transactions are accounted for on trade date. Realized gains (losses) on investments sold are recorded on the basis of specific identification method for both consolidated financial statement and U.S. federal income tax purposes. Payable for investments purchased and receivable for investments sold on the Consolidated Statements of Assets and Liabilities, if any, represents the cost of purchases and proceeds from sales of investment securities, respectively, for trades that have been executed but not yet settled. |
Income Recognition | Income Recognition Corporate actions (including cash dividends from common stock and equity tranches of asset-backed securities) are recorded on the ex-dividend ex-dividend (payment-in-kind) Accretion of discounts and amortization of premiums on taxable bonds, loans and asset-backed securities are computed to the call or maturity date, whichever is shorter, using the effective yield method. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates. |
Organization and Offering Costs | Organization and Offering Costs Organization costs are paid by the Adviser and include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock and are also paid by the Adviser. Prior to the termination of the offering, as we raised proceeds, these organization and offering costs were expensed and became payable to the Adviser. Organization and offering costs are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. Please refer to Note 4 for additional information on Organization and Offering Costs. |
Paid-in Capital | Paid-in The proceeds from the issuance of common stock as presented on the Company’s Consolidated Statements of Changes in Net Assets is presented net of selling commissions and fees for the years ended December 31, 2023, 2022 and 2021. Selling commissions and fees of $0, $0, and $0 were paid for the years ended December 31, 2023, 2022 and 2021, respectively. |
Earnings Per Share | Earnings Per Share In accordance with the provisions of ASC Topic 260— Earnings per Share The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the year ended 2023 2022 2021 Net increase (decrease) in net assets resulting from operations $ 1,453,947 $ (4,065,174 ) $ 5,706,143 Weighted average common shares outstanding 9,533,072 9,893,732 10,254,666 Earnings (loss) per common share-basic and diluted $ 0.15 $ (0.41 ) $ 0.56 |
Distributions | Distributions Distributions to the Company’s stockholders will be recorded as of the record date. Subject to the discretion of the Board and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a weekly basis and pay such distributions on a quarterly basis. Net realized capital gains, if any, will generally be distributed or deemed distributed at least every 12-month On June 24, 2020, the Board approved a change in its dividend and capital gains distribution schedule from monthly distributions to quarterly distributions, effective immediately. The first quarterly distribution was paid on October 12, 2020 to shareholders of record as of September 30, 2020. The dividends are expected to be declared in the amount of $0.09 per share of the Company’s common stock to the stockholders of record at each quarter end. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, No. 2020-04 In December 2022, the FASB issued ASU 2022-06, 2022-06”) 2022-06 2022-06 In November 2023, the FASB issued ASU 2023-07, 2023-07”), 2023-07. 2023-07 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Investments Using Significant Unobservable Input | As of December 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 84 American Banknote Corp. Common Stocks 3,536,250 IQHQ, Inc. Common Stocks 2,533,000 MPM Holdings, Inc. Common Stocks 42,500 MidWave Wireless, Inc. (fka Terrestar Corp.) Common Stocks 4,732,181 NexPoint Capital REIT, LLC LLC Interests 7,014,774 SFR WLIF III, LLC LLC Interests 338,973 US Gaming, LLC LLC Interests 3,016,752 Apnimed, Inc. Preferred Stocks 1,644,435 Apnimed, Inc. Preferred Stocks 928,197 Sapience Therapeutics, Inc. Preferred Stocks 4,452,382 Sapience Therapeutics, Inc. Preferred Stocks 3,611,111 CCS Medical, Inc Senior Secured Loans 3,000,000 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 912,118 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 215,938 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 38,579 MidWave Wireless, Inc. (fka Terrestar Corp.) Senior Secured Loans 35,994 NexPoint Capital REIT, LLC Senior Secured Loans 463,314 PlantSwitch, Inc. Senior Secured Loans 2,000,000 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 Terrestar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 Terrestar Corp. Senior Secured Loans 810,953 Terrestar Corp. Senior Secured Loans 191,988 Terrestar Corp. Senior Secured Loans 34,300 Terrestar Corp. Senior Secured Loans 32,002 |
Summary of Investments Categorize into Fair Value Hierarchy | The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of December 31, 2023 and December 31, 2022: December 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 3,592,574 $ 3,000,000 $ 6,592,574 Telecommunication Services — — 1,202,629 1,202,629 Bioplastics 2,000,000 2,000,000 Real Estate 463,314 463,314 Asset-Backed Securities Financials — — 84 84 Corporate Bonds Consumer Discretionary — 488,665 — 488,665 Media/Telecommunications — 238,858 — 238,858 Common Stocks Chemicals — — 42,500 42,500 Energy — 2,237,604 — 2,237,604 Financials — — 3,536,250 3,536,250 Real Estate 2,073,797 — 2,533,000 4,606,797 Real Estate Investment Trust (REITs) 805,987 — — 805,987 Telecommunication Services — — 4,732,181 4,732,181 LLC Interests Consumer Products — — 3,016,752 3,016,752 Real Estate — — 7,353,747 7,353,747 Preferred Stocks Financials — 1,186,250 — 1,186,250 Healthcare — — 10,636,125 10,636,125 Warrants Energy — 266,500 — 266,500 Media/Telecommunications — 6,469 — 6,469 Total Assets $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 Total Investments $ 2,879,784 $ 8,016,920 $ 38,516,582 $ 49,413,286 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trust (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 |
Summary of Fair Value Assets Measured on Recurring Basis Unobservable input Reconciliation | The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2023. Investments: Balance as of Transfers Transfers Net Distribution Net Net change Purchases/ (Sales (1) Balance as of Change in Assets Senior Secured Loans Bioplastics $ — $ — $ — $ — $ — $ — $ — $ 2,000,000 $ — $ 2,000,000 $ — Healthcare 3,000,000 — — 19,034 — — (19,034 ) — — 3,000,000 (19,034 ) Real Estate — — — — — — — 463,314 — 463,314 — Telecommunication Services 1,069,243 — — — — — 2,014 131,372 — 1,202,629 2,014 Asset-Backed Securities Financials 7,036 — — — — (158,867 ) 162,924 8,136 (19,145 ) 84 (6,939 ) Common Stocks Chemicals — 42,500 — — — — — — — 42,500 — Financials 1,732,500 — — — — — 1,803,750 — — 3,536,250 1,803,750 Real Estate 2,359,000 — — — — — 174,000 — — 2,533,000 174,000 Service 2,269 — — — — (244,451 ) 251,135 — (8,953 ) — — Telecommunication Services 5,114,214 — — — — — (382,033 ) — — 4,732,181 (382,033 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 228,002 — (463,314 ) 3,016,752 228,002 Real Estate 1,600,492 — — — (244,193 ) — (1,370,637 ) 7,448,085 (80,000 ) 7,353,747 (1,370,637 ) Preferred Stocks Healthcare 10,527,285 — — — — 1 108,839 6,012,000 (6,012,000 ) 10,636,125 108,839 Total $ 28,500,789 $ 42,500 $ — $ 19,034 $ (244,193 ) $ (240,003 ) $ 958,960 $ 16,062,907 $ (6,583,412 ) $ 38,516,582 $ 537,962 (1) Includes sales to subreit at cost which generate no realized gain. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the year ended December 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ (6,238 ) $ 113,003 $ — $ 1,069,243 $ (6,238 ) Healthcare 4,000,000 — — 16,520 — — 73,480 2,990,000 (4,080,000 ) 3,000,000 73,480 Asset-Backed Securities Financials 405,040 — — — — 24,930 (364,273 ) — (58,661 ) 7,036 (364,273 ) Common Stocks Financials 2,208,750 — — — — — (476,250 ) — — 1,732,500 (476,250 ) Real Estate 1,823,000 — — — — (1,440 ) 536,000 1,501,440 (1,500,000 ) 2,359,000 536,000 Service 5,172 — — — — — (2,903 ) — — 2,269 (2,903 ) Telecommunication Services 4,706,357 — — — — — 407,857 — — 5,114,214 407,857 LLC Interests Consumer Products 2,812,212 — — — — — 276,538 — — 3,088,750 276,538 Real Estate 4,760,162 — — — — (74,604 ) 174,219 1,215,000 (4,474,285 ) 1,600,492 174,219 Preferred Stocks Healthcare — — — — — — 447,299 10,079,986 — 10,527,285 447,299 Total $ 21,683,171 $ — $ — $ 16,520 $ — $ (51,114 ) $ 1,065,729 $ 15,899,429 $ (10,112,946 ) $ 28,500,789 $ 1,065,729 |
Summary of Quantitative Information about the Company's Level 3 Asset and Liability | The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of December 31, 2023 and 2022: Investment Fair value at December 31, 2023 Valuation Technique Unobservable Inputs Range of Input Value(s) (arithmetic average) LLC Interests $ 10,370,499 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 5.48% - 9.68% (7.58%) 5.75x - 10.40x (8.07x) Preferred Stocks 10,636,125 Option Pricing Model Transaction Indication of Value Volatility Enterprise Value ($mm) 40% - 90% (65%) $281.4 - $598.6 ($452.75) Common Stocks 10,843,931 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) 13% - 15% (14.0%) 1.00x - 4.00x (2.31x) $0.10 - $0.90 ($0.50) $797 - $1,044 ($920.5) Liquidation Analysis N/A $5.00 Senior Secured Loans 6,665,943 Discounted Cash Flow Transaction Indication of Value Discount Rate Cost Price ($mm) 11.00% - 14.31% (12.64%) $2.46 Asset-Backed Securities 84 NAV Approach Discount Rate N/A Total $ 38,516,582 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stocks 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stocks 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Net Asset Value Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 |
Summary of Computation of Basic and Diluted Net | The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the year ended 2023 2022 2021 Net increase (decrease) in net assets resulting from operations $ 1,453,947 $ (4,065,174 ) $ 5,706,143 Weighted average common shares outstanding 9,533,072 9,893,732 10,254,666 Earnings (loss) per common share-basic and diluted $ 0.15 $ (0.41 ) $ 0.56 |
Investment Portfolio (Tables)
Investment Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments By Industry [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2023: Fair value Percentage Assets Healthcare $ 17,228,699 34.9 % Real Estate 12,423,858 25.1 % Telecommunication Services 5,934,810 12.0 % Financials 4,722,584 9.6 % Consumer Products 3,016,752 6.1 % Energy 2,504,104 5.1 % Bioplastics 2,000,000 4.0 % Real Estate Investment Trusts (REITs) 805,987 1.6 % Consumer Discretionary 488,665 1.0 % Media/Telecommunications 245,327 0.5 % Chemicals 42,500 0.1 % Total Assets $ 49,413,286 100.0 % The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2022: Fair value Percentage Assets Healthcare $ 26,101,074 49.0 % Real Estate 11,613,222 21.7 % Telecommunication Services 6,183,457 11.6 % Consumer Products 3,088,750 5.8 % Financials 3,180,161 6.0 % Energy 1,752,941 3.3 % Real Estate Investment Trusts (REITs) 1,018,779 1.9 % Media/Telecommunications 310,562 0.6 % Chemicals 42,500 0.1 % Service 2,269 0.0 % Total Assets $ 53,293,715 100.0 % |
Type of Investment Debt or Equity [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2023: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 10,580,813 $ 10,130,961 20.5 % Senior Secured Loans - Second Lien 1,500,056 127,556 0.3 % Asset-Backed Securities 218,666 84 0.0 % Corporate Bonds 1,380,892 727,523 1.5 % Common Stocks 9,924,122 15,961,319 32.3 % LLC Interests 10,490,003 10,370,499 21.0 % Preferred Stocks 11,829,987 11,822,375 23.9 % Warrants 74,284 272,969 0.6 % Total Assets $ 45,998,823 $ 49,413,286 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2022: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 14,645,106 $ 11,575,821 21.7 % Senior Secured Loans - Second Lien 2,976,056 2,652,372 5.0 % Asset-Backed Securities 388,541 7,036 0.0 % Corporate Bonds 3,358,783 2,704,917 5.1 % Common Stocks 17,073,102 19,514,684 36.6 % LLC Interests 3,666,112 4,689,242 8.8 % Preferred Stocks 11,829,987 11,967,910 22.5 % Warrants 74,284 181,733 0.3 % Total Assets $ 54,011,971 $ 53,293,715 100.0 % |
Investments By Geography [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2023: Geography Fair value Percentage Assets Cayman Islands (1) $ 84 0.0 % Luxembourg (1) 1,438,750 2.9 % United States 47,974,452 97.1 % Total Assets $ 49,413,286 100.0 % The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2022: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,036 0.0 % Luxembourg (1) 1,318,346 2.5 % United States 51,968,333 97.5 % Total Assets $ 53,293,715 100.0 % (1) Investment denominated in USD. |
Related Party Transactions an_2
Related Party Transactions and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of fee waivers and expense reimbursements due from the adviser which may become subject to recoupment | The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2023 $ 902,219 $ 481,443 $ 420,776 $ 140,233 December 31, 2026 September 30, 2023 630,924 350,382 280,543 96,669 September 30, 2026 June 30, 2023 420,066 236,192 183,874 102,016 June 30, 2026 March 31, 2023 208,486 126,628 81,858 81,858 March 31, 2026 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2022 $ 913,273 $ 535,679 $ 377,594 $ 92,216 December 31, 2025 September 30, 2022 678,333 392,955 285,378 124,667 September 30, 2025 June 30, 2022 434,019 273,308 160,711 98,950 June 30, 2025 March 31, 2022 211,896 150,135 61,761 61,761 March 31, 2025 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2021 $ 892,640 $ 597,379 $ 295,261 $ 94,762 December 31, 2024 September 30, 2021 664,052 463,553 200,499 68,134 September 30, 2024 June 30, 2021 436,866 304,501 132,365 68,919 June 30, 2024 March 31, 2021 220,126 156,680 63,446 63,446 March 31, 2024 |
U.S. Federal Income Tax Infor_2
U.S. Federal Income Tax Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Permanent Book Tax Differences and Reclasses | As of December 31, 2023, 2022 and 2021, the Company made the following permanent book tax differences and reclasses: 2023 2022 2021 Paid in capital excess of par value $ (19,894 ) $ (533,512 ) $ 2,104,942 Distributions in excess of net investment income (1) (2,103 ) (308,998 ) 1,143,870 Accumulated realized gains (1) 21,997 842,510 (3,248,812 ) (1) Amounts are included in distributable earnings (accumulated loss) on the Consolidated Statements of Assets and Liabilities. |
Summary of Components of Distributable Earnings on a Tax Basis | For the years ended December 31, 2023, 2022 and 2021, the Company’s tax year end, components of distributable earnings on a tax basis are as follows: 2023 2022 2021 Undistributed ordinary income $ — $ — $ 72,812 Net tax appreciation/(depreciation) 3,674,703 (1,567,035 ) 2,708,891 Undistributed capital gains — — — Other temporary differences (848,575 ) (883,602 ) (910,576 ) |
Summary of Tax Character of Shareholder Distributions | The tax character of shareholder distributions attributable to the fiscal years ended December 31, 2023, 2022 and 2021, were as follows: Paid Distributions attributable to: 2023 2022 2021 Ordinary income $ 1,629,804 $ 1,526,458 $ 3,633,179 Return of capital 1,757,477 1,999,373 — Long term gain — — — |
Summary of Cost of Investments for U.S Federal Income Tax Purposes | Unrealized appreciation and depreciation at December 31, 2023, 2022 and 2021, based on cost of investments for U.S. federal income tax purposes were as follows: Gross appreciation Gross (depreciation) Net Cost December 31, 2023 $ 9,837,724 $ (6,163,021 ) $ 3,674,703 $ 45,438,583 December 31, 2022 7,373,938 (8,940,973 ) (1,567,035 ) 54,860,750 December 31, 2021 4,599,564 (1,890,673 ) 2,708,891 57,527,420 |
Affiliated Investments (Tables)
Affiliated Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Summary of affiliated issuers of the company | Under Section 2(a)(3) of the 1940 Act, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its outstanding voting securities or if the portfolio company is under common control. The table below shows affiliated issuers of the Company as of December 31, 2023: Affiliated Shares at December 31, 2022 Fair value as of December 31, 2022 Purchases Sales (1) Realized Change in Fair value as of December 31, 2023 Shares at December 31, 2023 Affiliated NexPoint Residential Trust, Inc. 23,409 $ 1,018,779 $ — $ 3,048 $ 52,401 $ (215,840 ) $ 805,987 23,409 $ (9,033 ) NexPoint Capital REIT, LLC 100 1,176,024 7,448,085 (244,193 ) — (1,365,142 ) 7,014,774 737 572,121 NexPoint Capital REIT, LLC — — 463,314 — — — 463,314 463,314 — NexPoint Real Estate Finance, Inc. 481,670 7,653,730 — (7,481,124 ) 16,308 1,901,191 2,073,797 131,670 231,424 SFR WLIF III, LLC 451,112 424,468 (1 ) (80,000 ) — (5,494 ) 338,973 371,112 43,327 Total affiliated investments 956,291 $ 10,273,001 $ 7,911,398 $ (7,802,269 ) $ 68,709 $ 314,715 $ 10,696,845 1,453,556 $ 837,839 (1) The sales figures reported above include dividends from the return of capital. Additionally, some of the sales transactions were made to the subreit at cost, thereby not generating any realized gain or loss. |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of share outstanding | Selected data for a share outstanding throughout the year ended December 31, 2023, 2022, 2021, 2020 and 2019 is as follows: For the Year For the Year Ended For the Year Ended For the Year For the Year Common shares per share operating performance: Net asset value, beginning of period $ 5.55 $ 6.32 $ 6.13 $ 8.53 $ 8.36 Income from investment operations: Net investment income (1) 0.17 0.18 0.19 0.24 0.30 Net realized and unrealized gain (loss) (0.02 ) (0.59 ) 0.37 (2.22 ) 0.59 Total from investment operations 0.15 (0.41 ) 0.56 (1.98 ) 0.89 Less distribution declared to common shareholders: From net investment income (0.18 ) (0.16 ) (0.37 ) (0.42 ) (0.60 ) From net realized gains — — — — (0.12 ) From return of capital (0.18 ) (0.20 ) — — — Total distributions declared to common shareholders (0.36 ) (0.36 ) (0.37 ) (0.42 ) (0.72 ) Capital share transaction Issuance of common stock (2) — — — — — Shares tendered (1) — (3) — — (3) — (3) — (3) Net asset value, end of period $ 5.35 $ 5.55 $ 6.32 $ 6.13 $ 8.53 Net asset value total return (4) 3.20 % (6.65 )% 9.12 % (23.17 )% 10.86 % Ratio and supplemental data: Net assets, end of period (in 000’s) $ 49,810 $ 53,694 $ 62,939 $ 64,190 $ 88,936 Shares outstanding, end of period 9,309,405 9,677,593 9,956,228 10,475,168 10,425,431 Common share information at end of period: Ratios based on weighted average net assets of common shares: Gross operating expenses 4.12 % 3.82 % 3.78 % 3.99 % 5.36 % Fees and expenses waived or reimbursed (0.83 )% (0.63 )% (0.45 )% (0.54 )% (0.16 )% Net operating expenses 3.20 % 3.19 % 3.33 % 3.45 % 5.20 % Net investment income (loss) before fees waived or reimbursed 2.40 % 2.43 % 2.50 % 3.41 % 3.33 % Net investment income (loss) after fees waived or reimbursed 3.22 % 3.06 % 2.95 % 3.95 % 3.50 % Ratio of interest and credit facility expenses to average net assets — % — % — % 0.27 % 1.37 % Portfolio turnover rate 9 % 16 % 13 % 83 % 42 % Asset coverage ratio — % — % — % — % 241 % Weighted average commission rate paid (5) $ — $ — $ — $ 0.0328 $ 0.0331 (1) Per share data was calculated using weighted average shares outstanding during the period. (2) The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date times (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding at the end of the period. The Company’s continuous public offering ended on February 14, 2018. (3) Amount rounds to less than $0.005 per share. (4) Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions, and assume no sales charge. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s Dividend Reinvestment Plan. Had the Adviser not absorbed a portion of expenses, total returns would have been lower. (5) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of portfolio shares purchased and sold for which commissions were charged. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information | Quarter ended December 31, September 30, June 30, March 31, Total investment income $ 540,182 $ 1,058,773 $ 918,436 $ 814,832 Total investment income per common share 0.06 0.11 0.10 0.08 Net investment income 109,719 681,628 512,066 363,521 Net investment income per common share 0.01 0.07 0.05 0.04 Net realized and unrealized gain (loss) 1,732,521 22,833 (627,003 ) (1,341,338 ) Net realized and unrealized gain (loss) per common share 0.19 0.00 (0.07 ) (0.14 ) Net increase (decrease) in net assets resulting from operations 1,842,240 704,461 (114,937 ) (977,817 ) Basic and diluted earnings (loss) per common share 0.19 0.07 (0.01 ) (0.10 ) Net asset value per common share at end of quarter 5.35 5.24 5.26 5.36 Quarter ended December 31, September 30, June 30, March 31, Total investment income $ 584,515 $ 993,592 $ 1,099,896 $ 1,014,610 Total investment income per common share 0.06 0.10 0.11 0.10 Net investment income 113,631 555,608 629,257 491,122 Net investment income per common share 0.01 0.06 0.06 0.05 Net realized and unrealized gain (loss) 257,082 (3,208,231 ) (3,557,538 ) 653,895 Net realized and unrealized gain (loss) per common share 0.03 (0.32 ) (0.36 ) 0.07 Net increase (decrease) in net assets resulting from operations 370,713 (2,652,623 ) (2,928,281 ) 1,145,017 Basic and diluted earnings (loss) per common share 0.04 (0.27 ) (0.29 ) 0.11 Net asset value per common share at end of quarter 5.55 5.60 5.96 6.35 |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jul. 21, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization [Line Items] | ||||
Stock issued during period value, reinvestment of dividends | $ 1,127,725 | $ 1,209,200 | $ 1,319,241 | |
Total assets | $ 51,279,034 | $ 55,251,876 | ||
BDC Sapience Holdco, LLC [Member] | ||||
Organization [Line Items] | ||||
Entity Incorporation, Date | Jun. 21, 2023 | |||
Total assets | $ 5,950,000 | |||
Percentage of asset held in subsidiary | 11.60% | |||
Next Point Advisors L.P [Member] | ||||
Organization [Line Items] | ||||
Proceeds from private placement issue | $ 10,000,000 | |||
Stock issued during period new shares issued in private placement | 2,549,002 | |||
Stock issued during period value, reinvestment of dividends | $ 13,400,000 | |||
Liberty CLO Holdco Ltd [Member] | ||||
Organization [Line Items] | ||||
Stock issued during period new shares issued in private placement | 2,549,002 | 2,549,002 | ||
Equity method investments ownership percentage | 27.05% | |||
Stock issued during period value, reinvestment of dividends | $ 13,600,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and cash equivalents | $ 1,401,744 | $ 1,629,846 | |
Restricted cash and cash equivalents | 241,037 | 209,418 | |
Securities sold short value | $ 0 | $ 0 | |
Investments sold not yet purchased percentage of net assets | 25% | 25% | |
Fair value of options held | $ 0 | $ 0 | |
Other fee income | $ 0 | $ 0 | $ 4,651 |
Offering costs as a percentage of total proceeds raised | 1% | 1% | |
Stock issuance costs | $ 0 | $ 0 | $ 0 |
Dividend per share declared | $ 0.09 | $ 0.09 | |
Transfers into level 3 | $ 0 | $ 0 | |
Money Market Funds [Member] | |||
Cash and cash equivalents | $ 1,160,707 | $ 1,420,428 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Investments Using Significant Unobservable Input (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Fair value | $ 49,413,286 | $ 53,293,715 |
Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Fair value | $ 38,516,582 | $ 28,500,789 |
Asset-Backed Securities [Member] | Asset Backed Securities One [Member] | Grayson Investor Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Asset-Backed Securities | Asset-Backed Securities |
Fair value | $ 84 | $ 7,023 |
Asset-Backed Securities [Member] | Asset Backed Securities One [Member] | PAMCO CLO 1997-1A B [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Asset-Backed Securities | |
Fair value | $ 13 | |
Common Stocks [Member] | Common Stock One [Member] | American Banknote Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 3,536,250 | $ 1,732,500 |
Common Stocks [Member] | Common Stock One [Member] | IQHQ, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 2,533,000 | $ 2,359,000 |
Common Stocks [Member] | Common Stock One [Member] | MPM Holdings, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | |
Fair value | $ 42,500 | |
Common Stocks [Member] | Common Stock One [Member] | MidWave Wireless, Inc. (fka Terrestar Corp.) [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | |
Fair value | $ 4,732,181 | |
Common Stocks [Member] | Common Stock One [Member] | TerreStar Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | |
Fair value | $ 5,114,214 | |
Common Stocks [Member] | Common Stock One [Member] | Wayne Services Legacy, Inc [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | |
Fair value | $ 2,269 | |
LLC Interests [Member] | LLC Interests One [Member] | NexPoint Capital REIT, LLC [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 7,014,774 | $ 1,176,024 |
LLC Interests [Member] | LLC Interests One [Member] | SFR WLIF III, LLC [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 338,973 | $ 424,468 |
LLC Interests [Member] | LLC Interests One [Member] | US Gaming, LLC [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 3,016,752 | $ 3,088,750 |
Preferred Stocks [Member] | Preferred Stocks One [Member] | Apnimed, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 1,644,435 | $ 1,499,989 |
Preferred Stocks [Member] | Series B Preferred Stock [Member] | Sapience Therapeutics, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 4,452,382 | $ 4,549,525 |
Preferred Stocks [Member] | Series B One Preferred Stock [Member] | Sapience Therapeutics, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 3,611,111 | $ 3,677,777 |
Preferred Stocks [Member] | Series C Two Preferred Stock [Member] | Apnimed, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 928,197 | $ 799,994 |
Senior Secured Loans [Member] | NexPoint Capital REIT, LLC [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 463,314 | |
Senior Secured Loans [Member] | PlantSwitch, Inc. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 2,000,000 | |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | MidWave Wireless, Inc. (fka Terrestar Corp.) [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 912,118 | |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | CCS Medical, Inc [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 3,000,000 | $ 3,000,000 |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | TerreStar Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 810,953 | |
Senior Secured Loans [Member] | Senior Secured Loans Two [Member] | MidWave Wireless, Inc. (fka Terrestar Corp.) [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 215,938 | |
Senior Secured Loans [Member] | Senior Secured Loans Two [Member] | TerreStar Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 191,988 | |
Senior Secured Loans [Member] | Senior Secured Loans Three [Member] | MidWave Wireless, Inc. (fka Terrestar Corp.) [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 38,579 | |
Senior Secured Loans [Member] | Senior Secured Loans Three [Member] | TerreStar Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 34,300 | |
Senior Secured Loans [Member] | Senior Secured Loans Four [Member] | MidWave Wireless, Inc. (fka Terrestar Corp.) [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 35,994 | |
Senior Secured Loans [Member] | Senior Secured Loans Four [Member] | TerreStar Corp. [Member] | Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 32,002 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Investments Categorize into Fair Value Hierarchy (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | $ 49,413,286 | $ 53,293,715 |
Senior Secured Loans [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 6,592,574 | 13,158,950 |
Senior Secured Loans [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,202,629 | 1,069,243 |
Senior Secured Loans [Member] | Bioplastics [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,000,000 | |
Senior Secured Loans [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 463,314 | |
Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 84 | 7,036 |
Corporate Bonds [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,414,839 | |
Corporate Bonds [Member] | Consumer Discretionary [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 488,665 | |
Corporate Bonds [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 238,858 | 290,078 |
Common Stocks [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 4,732,181 | 5,114,214 |
Common Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,536,250 | 1,732,500 |
Common Stocks [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 42,500 | 42,500 |
Common Stocks [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,237,604 | 1,591,692 |
Common Stocks [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 4,606,797 | 10,012,730 |
Common Stocks [Member] | Real Estate Investment Trust (REITs) [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 805,987 | 1,018,779 |
Common Stocks [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,269 | |
LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,353,747 | 1,600,492 |
LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,016,752 | 3,088,750 |
Preferred Stocks [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,636,125 | 10,527,285 |
Preferred Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,186,250 | 1,440,625 |
Warrants [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 6,469 | 20,484 |
Warrants [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 266,500 | 161,249 |
Level 1 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,879,784 | 8,672,509 |
Level 1 [Member] | Senior Secured Loans [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Senior Secured Loans [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Corporate Bonds [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 1 [Member] | Corporate Bonds [Member] | Consumer Discretionary [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 1 [Member] | Corporate Bonds [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,073,797 | 7,653,730 |
Level 1 [Member] | Common Stocks [Member] | Real Estate Investment Trust (REITs) [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 805,987 | 1,018,779 |
Level 1 [Member] | Common Stocks [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 1 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Preferred Stocks [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Preferred Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Warrants [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 1 [Member] | Warrants [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 8,016,920 | 16,120,417 |
Level 2 [Member] | Senior Secured Loans [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,592,574 | 10,158,950 |
Level 2 [Member] | Senior Secured Loans [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Corporate Bonds [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,414,839 | |
Level 2 [Member] | Corporate Bonds [Member] | Consumer Discretionary [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 488,665 | |
Level 2 [Member] | Corporate Bonds [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 238,858 | 290,078 |
Level 2 [Member] | Common Stocks [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Common Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Common Stocks [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 42,500 |
Level 2 [Member] | Common Stocks [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,237,604 | 1,591,692 |
Level 2 [Member] | Common Stocks [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Common Stocks [Member] | Real Estate Investment Trust (REITs) [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Common Stocks [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 2 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Preferred Stocks [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 2 [Member] | Preferred Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,186,250 | 1,440,625 |
Level 2 [Member] | Warrants [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 6,469 | 20,484 |
Level 2 [Member] | Warrants [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 266,500 | 161,249 |
Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 38,516,582 | 28,500,789 |
Level 3 [Member] | Senior Secured Loans [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,000,000 | 3,000,000 |
Level 3 [Member] | Senior Secured Loans [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,202,629 | 1,069,243 |
Level 3 [Member] | Senior Secured Loans [Member] | Bioplastics [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,000,000 | |
Level 3 [Member] | Senior Secured Loans [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 463,314 | |
Level 3 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 84 | 7,036 |
Level 3 [Member] | Corporate Bonds [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 3 [Member] | Corporate Bonds [Member] | Consumer Discretionary [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | |
Level 3 [Member] | Corporate Bonds [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 3 [Member] | Common Stocks [Member] | Telecommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 4,732,181 | 5,114,214 |
Level 3 [Member] | Common Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,536,250 | 1,732,500 |
Level 3 [Member] | Common Stocks [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 42,500 | 0 |
Level 3 [Member] | Common Stocks [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 3 [Member] | Common Stocks [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,533,000 | 2,359,000 |
Level 3 [Member] | Common Stocks [Member] | Real Estate Investment Trust (REITs) [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 3 [Member] | Common Stocks [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,269 | |
Level 3 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,353,747 | 1,600,492 |
Level 3 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,016,752 | 3,088,750 |
Level 3 [Member] | Preferred Stocks [Member] | Healthcare [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,636,125 | 10,527,285 |
Level 3 [Member] | Preferred Stocks [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 3 [Member] | Warrants [Member] | Media/Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Level 3 [Member] | Warrants [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Changes in the Company's Level 3 investments (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers into Level 3 | $ 0 | $ 0 | ||
Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 28,500,789 | 21,683,171 | ||
Transfers into Level 3 | 42,500 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 19,034 | 16,520 | ||
Distribution to Return Capital | (244,193) | 0 | ||
Net realized gains/ (losses) | (240,003) | (51,114) | ||
Net change in unrealized gains/ (losses) | 958,960 | 1,065,729 | ||
Purchases/ PIK | 16,062,907 | 15,899,429 | ||
Sales and redemptions | (6,583,412) | [1] | (10,112,946) | |
Balance as of Ending | 38,516,582 | 28,500,789 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 537,962 | 1,065,729 | ||
Investments [Member] | Senior Secured Loans [Member] | Bioplastics [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Net amortization (accretion) of premium/ (discount) | 0 | |||
Distribution to Return Capital | 0 | |||
Net realized gains/ (losses) | 0 | |||
Net change in unrealized gains/ (losses) | 0 | |||
Purchases/ PIK | 2,000,000 | |||
Sales and redemptions | [1] | 0 | ||
Balance as of Ending | 2,000,000 | 0 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | |||
Investments [Member] | Senior Secured Loans [Member] | Healthcare [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 3,000,000 | 4,000,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 19,034 | 16,520 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | (19,034) | 73,480 | ||
Purchases/ PIK | 0 | 2,990,000 | ||
Sales and redemptions | 0 | [1] | (4,080,000) | |
Balance as of Ending | 3,000,000 | 3,000,000 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (19,034) | 73,480 | ||
Investments [Member] | Senior Secured Loans [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Net amortization (accretion) of premium/ (discount) | 0 | |||
Distribution to Return Capital | 0 | |||
Net realized gains/ (losses) | 0 | |||
Net change in unrealized gains/ (losses) | 0 | |||
Purchases/ PIK | 463,314 | |||
Sales and redemptions | [1] | 0 | ||
Balance as of Ending | 463,314 | 0 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | |||
Investments [Member] | Senior Secured Loans [Member] | Telecommunication Services [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,069,243 | 962,478 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 2,014 | (6,238) | ||
Purchases/ PIK | 131,372 | 113,003 | ||
Sales and redemptions | 0 | [1] | 0 | |
Balance as of Ending | 1,202,629 | 1,069,243 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 2,014 | (6,238) | ||
Investments [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 7,036 | 405,040 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | (158,867) | 24,930 | ||
Net change in unrealized gains/ (losses) | 162,924 | (364,273) | ||
Purchases/ PIK | 8,136 | 0 | ||
Sales and redemptions | (19,145) | [1] | (58,661) | |
Balance as of Ending | 84 | 7,036 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (6,939) | (364,273) | ||
Investments [Member] | Common Stocks [Member] | Chemicals [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 0 | |||
Transfers into Level 3 | 42,500 | |||
Transfers out of Level 3 | 0 | |||
Net amortization (accretion) of premium/ (discount) | 0 | |||
Distribution to Return Capital | 0 | |||
Net realized gains/ (losses) | 0 | |||
Net change in unrealized gains/ (losses) | 0 | |||
Purchases/ PIK | 0 | |||
Sales and redemptions | [1] | 0 | ||
Balance as of Ending | 42,500 | 0 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | |||
Investments [Member] | Common Stocks [Member] | Financials [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,732,500 | 2,208,750 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 1,803,750 | (476,250) | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | [1] | 0 | |
Balance as of Ending | 3,536,250 | 1,732,500 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 1,803,750 | (476,250) | ||
Investments [Member] | Common Stocks [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 2,359,000 | 1,823,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | (1,440) | ||
Net change in unrealized gains/ (losses) | 174,000 | 536,000 | ||
Purchases/ PIK | 0 | 1,501,440 | ||
Sales and redemptions | 0 | [1] | (1,500,000) | |
Balance as of Ending | 2,533,000 | 2,359,000 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 174,000 | 536,000 | ||
Investments [Member] | Common Stocks [Member] | Telecommunication Services [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 5,114,214 | 4,706,357 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | (382,033) | 407,857 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | [1] | 0 | |
Balance as of Ending | 4,732,181 | 5,114,214 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (382,033) | 407,857 | ||
Investments [Member] | Common Stocks [Member] | Service [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 2,269 | 5,172 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | (244,451) | 0 | ||
Net change in unrealized gains/ (losses) | 251,135 | (2,903) | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | (8,953) | [1] | 0 | |
Balance as of Ending | 0 | 2,269 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | (2,903) | ||
Investments [Member] | LLC Interests [Member] | Consumer Products [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 3,088,750 | 2,812,212 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 163,314 | 0 | ||
Net change in unrealized gains/ (losses) | 228,002 | 276,538 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | (463,314) | [1] | 0 | |
Balance as of Ending | 3,016,752 | 3,088,750 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 228,002 | 276,538 | ||
Investments [Member] | LLC Interests [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,600,492 | 4,760,162 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | (244,193) | 0 | ||
Net realized gains/ (losses) | 0 | (74,604) | ||
Net change in unrealized gains/ (losses) | (1,370,637) | 174,219 | ||
Purchases/ PIK | 7,448,085 | 1,215,000 | ||
Sales and redemptions | (80,000) | [1] | (4,474,285) | |
Balance as of Ending | 7,353,747 | 1,600,492 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (1,370,637) | 174,219 | ||
Investments [Member] | Preferred Stocks [Member] | Healthcare [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 10,527,285 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 1 | 0 | ||
Net change in unrealized gains/ (losses) | 108,839 | 447,299 | ||
Purchases/ PIK | 6,012,000 | 10,079,986 | ||
Sales and redemptions | (6,012,000) | [1] | 0 | |
Balance as of Ending | 10,636,125 | 10,527,285 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | $ 108,839 | $ 447,299 | ||
[1]Includes sales to subreit at cost which generate no realized gain. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Quantitative Information about the Company's Level 3 Asset and Liability (Detail) | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 49,413,286 | $ 53,293,715 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 38,516,582 | 28,500,789 |
Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Liquidation Analysis | |
Range of input values (weighted average) | 5 | |
Common Stocks [Member] | Valuation Technique Net Asset Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 9,207,983 | |
Valuation technique | Net Asset Value | |
Range of input values (weighted average) | 28 | |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Discount Rate | Discount Rate |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 9.68 | 8.93 |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 5.48 | 4.73 |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 7.58 | 6.83 |
Measurement Input, Discount Rate [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | Discount Rate | Discount Rate |
Measurement Input, Discount Rate [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 15 | 15.5 |
Measurement Input, Discount Rate [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 13 | 13.5 |
Measurement Input, Discount Rate [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 14 | 14.5 |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 4,069,243 | |
Valuation technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Discount Rate | Discount Rate |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 14.31 | 13.08 |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 11 | 10.25 |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 12.64 | 11.67 |
Measurement Input, Discount Rate [Member] | Asset-Backed Securities [Member] | Valuation Technique Net Asset Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 84 | $ 7,036 |
Valuation technique | NAV Approach | NAV Approach |
Unobservable inputs | Discount Rate | Discount Rate |
Range of input values (weighted average) | 70 | |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,370,499 | $ 4,689,242 |
Valuation technique | Multiples Analysis | Multiples Analysis |
Unobservable inputs | Multiple of EBITDA | Multiple of EBITDA |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 10.4 | 9.85 |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 5.75 | 5.55 |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 8.07 | 7.7 |
Measurement Input, EBITDA Multiple [Member] | Common Stocks [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Multiple of EBITDA | Multiple of EBITDA |
Measurement Input, EBITDA Multiple [Member] | Common Stocks [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 4 | 4.25 |
Measurement Input, EBITDA Multiple [Member] | Common Stocks [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 1 | 3.25 |
Measurement Input, EBITDA Multiple [Member] | Common Stocks [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 2.31 | 3.75 |
Measurement Input Cost Price [Member] | Senior Secured Loans [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 6,665,943 | |
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Cost Price ($mm) | |
Range of input values (weighted average) | 2.46 | |
Measurement Input Unadjusted Price [Member] | Common Stocks [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Multiples Analysis | Multiples Analysis |
Unobservable inputs | Unadjusted Price/MHz-PoP | Unadjusted Price/MHz-PoP |
Measurement Input Unadjusted Price [Member] | Common Stocks [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.9 | 0.95 |
Measurement Input Unadjusted Price [Member] | Common Stocks [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.1 | 0.09 |
Measurement Input Unadjusted Price [Member] | Common Stocks [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.5 | 0.52 |
Measurement Input Enterprise Value [Member] | Preferred Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,636,125 | |
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Enterprise Value ($mm) | |
Measurement Input Enterprise Value [Member] | Preferred Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 598.6 | |
Measurement Input Enterprise Value [Member] | Preferred Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 281.4 | |
Measurement Input Enterprise Value [Member] | Preferred Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 452.75 | |
Measurement Input Enterprise Value [Member] | Common Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,843,931 | |
Valuation technique | Transaction Indication of Value | Transaction Indication of Value |
Unobservable inputs | Enterprise Value ($mm) | Enterprise Value ($mm) |
Measurement Input Enterprise Value [Member] | Common Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 1,044 | 969 |
Measurement Input Enterprise Value [Member] | Common Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 797 | 872 |
Measurement Input Enterprise Value [Member] | Common Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 920.5 | 920.5 |
Measurement Input Recovery Rate [Member] | Common Stocks [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Liquidation Analysis | |
Unobservable inputs | Recovery Rate | |
Measurement Input Recovery Rate [Member] | Common Stocks [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 100 | |
Measurement Input Recovery Rate [Member] | Common Stocks [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | |
Measurement Input Recovery Rate [Member] | Common Stocks [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 70 | |
Measurement Input, Option Volatility [Member] | Preferred Stocks [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Option Pricing Model | Option Pricing Model |
Unobservable inputs | Volatility | Volatility |
Measurement Input, Option Volatility [Member] | Preferred Stocks [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 90 | 60 |
Measurement Input, Option Volatility [Member] | Preferred Stocks [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | 40 |
Measurement Input, Option Volatility [Member] | Preferred Stocks [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 65 | 50 |
Measurement Input Recap Price [Member] | Preferred Stocks [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,527,285 | |
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Recap Price | |
Range of input values (weighted average) | 11.1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Net (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net increase (decrease) in net assets resulting from operations | $ 1,842,240 | $ 704,461 | $ (114,937) | $ (977,817) | $ 370,713 | $ (2,652,623) | $ (2,928,281) | $ 1,145,017 | $ 1,453,947 | $ (4,065,174) | $ 5,706,143 |
Weighted average shares outstanding: Basic | 9,533,072 | 9,893,732 | 10,254,666 | ||||||||
Weighted average shares outstanding: Diluted | 9,533,072 | 9,893,732 | 10,254,666 | ||||||||
Earnings (loss) per share: Basic | $ 0.19 | $ 0.07 | $ (0.01) | $ (0.1) | $ 0.04 | $ (0.27) | $ (0.29) | $ 0.11 | $ 0.15 | $ (0.41) | $ 0.56 |
Earnings (loss) per share: Diluted | $ 0.19 | $ 0.07 | $ (0.01) | $ (0.1) | $ 0.04 | $ (0.27) | $ (0.29) | $ 0.11 | $ 0.15 | $ (0.41) | $ 0.56 |
Investment Portfolio - Summary
Investment Portfolio - Summary Of Investment Holdings, Schedule of Investments (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value | $ 49,413,286 | $ 53,293,715 |
Percentage | 100% | 100% |
Healthcare [Member] | ||
Fair value | $ 17,228,699 | $ 26,101,074 |
Percentage | 34.90% | 49% |
Real Estate [Member] | ||
Fair value | $ 12,423,858 | $ 11,613,222 |
Percentage | 25.10% | 21.70% |
Telecommunication Services [Member] | ||
Fair value | $ 5,934,810 | $ 6,183,457 |
Percentage | 12% | 11.60% |
Financials [Member] | ||
Fair value | $ 4,722,584 | $ 3,180,161 |
Percentage | 9.60% | 6% |
Consumer Products [Member] | ||
Fair value | $ 3,016,752 | $ 3,088,750 |
Percentage | 6.10% | 5.80% |
Energy [Member] | ||
Fair value | $ 2,504,104 | $ 1,752,941 |
Percentage | 5.10% | 3.30% |
Bioplastics [Member] | ||
Fair value | $ 2,000,000 | |
Percentage | 4% | |
Real Estate Investment Trusts (REITs) [Member] | ||
Fair value | $ 805,987 | $ 1,018,779 |
Percentage | 1.60% | 1.90% |
Consumer Discretionary [Member] | ||
Fair value | $ 488,665 | |
Percentage | 1% | |
Media/Telecommunications [Member] | ||
Fair value | $ 245,327 | $ 310,562 |
Percentage | 0.50% | 0.60% |
Chemicals [Member] | ||
Fair value | $ 42,500 | $ 42,500 |
Percentage | 0.10% | 0.10% |
Service [Member] | ||
Fair value | $ 2,269 | |
Percentage | 0% |
Investment Portfolio - Summar_2
Investment Portfolio - Summary Of Investment Company Assets By Industry Classification At Fair Value (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | $ 45,998,823 | $ 54,011,971 |
Fair Value | $ 49,413,286 | $ 53,293,715 |
Percentage of Portfolio (at Fair Value) | 100% | 100% |
Senior Secured Loans - First Lien [Member] | ||
Amortized Cost | $ 10,580,813 | $ 14,645,106 |
Fair Value | $ 10,130,961 | $ 11,575,821 |
Percentage of Portfolio (at Fair Value) | 20.50% | 21.70% |
Senior Secured Loans - Second Lien [Member] | ||
Amortized Cost | $ 1,500,056 | $ 2,976,056 |
Fair Value | $ 127,556 | $ 2,652,372 |
Percentage of Portfolio (at Fair Value) | 0.30% | 5% |
Asset-Backed Securities [Member] | ||
Amortized Cost | $ 218,666 | $ 388,541 |
Fair Value | $ 84 | $ 7,036 |
Percentage of Portfolio (at Fair Value) | 0% | 0% |
Corporate Bonds [Member] | ||
Amortized Cost | $ 1,380,892 | $ 3,358,783 |
Fair Value | $ 727,523 | $ 2,704,917 |
Percentage of Portfolio (at Fair Value) | 1.50% | 5.10% |
Common Stocks [Member] | ||
Amortized Cost | $ 9,924,122 | $ 17,073,102 |
Fair Value | $ 15,961,319 | $ 19,514,684 |
Percentage of Portfolio (at Fair Value) | 32.30% | 36.60% |
LLC Interests [Member] | ||
Amortized Cost | $ 10,490,003 | $ 3,666,112 |
Fair Value | $ 10,370,499 | $ 4,689,242 |
Percentage of Portfolio (at Fair Value) | 21% | 8.80% |
Preferred Stocks [Member] | ||
Amortized Cost | $ 11,829,987 | $ 11,829,987 |
Fair Value | $ 11,822,375 | $ 11,967,910 |
Percentage of Portfolio (at Fair Value) | 23.90% | 22.50% |
Warrants [Member] | ||
Amortized Cost | $ 74,284 | $ 74,284 |
Fair Value | $ 272,969 | $ 181,733 |
Percentage of Portfolio (at Fair Value) | 0.60% | 0.30% |
Investment Portfolio - Summar_3
Investment Portfolio - Summary Of the Company's invested assets by geographic classification (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value | $ 49,413,286 | $ 53,293,715 | |
Percentage | 100% | 100% | |
Cayman Islands | |||
Fair Value | [1] | $ 84 | $ 7,036 |
Percentage | [1] | 0% | 0% |
Luxembourg | |||
Fair Value | [1] | $ 1,438,750 | $ 1,318,346 |
Percentage | [1] | 2.90% | 2.50% |
United States | |||
Fair Value | $ 47,974,452 | $ 51,968,333 | |
Percentage | 97.10% | 97.50% | |
[1]Investment denominated in USD. |
Related Party Transactions an_3
Related Party Transactions and Arrangements - Schedule Of Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment (Detail) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
December 31, 2026 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 902,219 | |||||||||||
Yearly expense limitation | 481,443 | |||||||||||
Yearly cumulative expense reimbursement | 420,776 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 140,233 | |||||||||||
Recoupment eligibility expiration | Dec. 31, 2026 | |||||||||||
September 30, 2026 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 630,924 | |||||||||||
Yearly expense limitation | 350,382 | |||||||||||
Yearly cumulative expense reimbursement | 280,543 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 96,669 | |||||||||||
Recoupment eligibility expiration | Sep. 30, 2026 | |||||||||||
June 30, 2026 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 420,066 | |||||||||||
Yearly expense limitation | 236,192 | |||||||||||
Yearly cumulative expense reimbursement | 183,874 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 102,016 | |||||||||||
Recoupment eligibility expiration | Jun. 30, 2026 | |||||||||||
March 31, 2026 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 208,486 | |||||||||||
Yearly expense limitation | 126,628 | |||||||||||
Yearly cumulative expense reimbursement | 81,858 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 81,858 | |||||||||||
Recoupment eligibility expiration | Mar. 31, 2026 | |||||||||||
December 31, 2025 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 913,273 | |||||||||||
Yearly expense limitation | 535,679 | |||||||||||
Yearly cumulative expense reimbursement | 377,594 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 92,216 | |||||||||||
Recoupment eligibility expiration | Dec. 31, 2025 | |||||||||||
September 30, 2025 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 678,333 | |||||||||||
Yearly expense limitation | 392,955 | |||||||||||
Yearly cumulative expense reimbursement | 285,378 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 124,667 | |||||||||||
Recoupment eligibility expiration | Sep. 30, 2025 | |||||||||||
June 30, 2025 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 434,019 | |||||||||||
Yearly expense limitation | 273,308 | |||||||||||
Yearly cumulative expense reimbursement | 160,711 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 98,950 | |||||||||||
Recoupment eligibility expiration | Jun. 30, 2025 | |||||||||||
March 31, 2025 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 211,896 | |||||||||||
Yearly expense limitation | 150,135 | |||||||||||
Yearly cumulative expense reimbursement | 61,761 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 61,761 | |||||||||||
Recoupment eligibility expiration | Mar. 31, 2025 | |||||||||||
December 31, 2024 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 892,640 | |||||||||||
Yearly expense limitation | 597,379 | |||||||||||
Yearly cumulative expense reimbursement | 295,261 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 94,762 | |||||||||||
Recoupment eligibility expiration | Dec. 31, 2024 | |||||||||||
September 30, 2024 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 664,052 | |||||||||||
Yearly expense limitation | 463,553 | |||||||||||
Yearly cumulative expense reimbursement | 200,499 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 68,134 | |||||||||||
Recoupment eligibility expiration | Sep. 30, 2024 | |||||||||||
June 30, 2024 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 436,866 | |||||||||||
Yearly expense limitation | 304,501 | |||||||||||
Yearly cumulative expense reimbursement | 132,365 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 68,919 | |||||||||||
Recoupment eligibility expiration | Jun. 30, 2024 | |||||||||||
March 31, 2024 [Member] | ||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | ||||||||||||
Yearly cumulative other expense | $ 220,126 | |||||||||||
Yearly expense limitation | 156,680 | |||||||||||
Yearly cumulative expense reimbursement | 63,446 | |||||||||||
Quarterly recoupable/ (recouped) amount | $ 63,446 | |||||||||||
Recoupment eligibility expiration | Mar. 31, 2024 |
Related Party Transactions an_4
Related Party Transactions and Arrangements - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Base Management Fee Calculated Annual Rate Of Percentage Of Average Value Of Gross Assets | 2% | |||
Investment Advisory Fee payable incurred during period | $ 942,612 | $ 1,096,487 | $ 1,220,044 | |
Maximum Recoupment Of Other Expenses Exceeds TheAnnual Rate Percentage Of Average Gross Assets | 3.40% | |||
Expense reimbursements amount that are eligible for recoupment by the adviser expired | $ 349,488 | |||
Subordinated Incentive Fee On Income Is Determined And Payable Quarterly In Arrears Equals Percentage Of Pre Incentive Fee Net Investment Income | 20% | |||
Hurdle Rate Expressed As Rate of Return ON Net Assets Equal To Percentage Per Quarter | 1.875% | |||
Hurdle Rate | 1.875% | |||
Pre Incentive Fee Net Investment Income For Quarter Equals Percentage Of Net Assets At The End Of Quarter | 2.34375% | |||
Catch UP Fee Receive By The Adviser Percentage Of The Pre Incentive Fee Net Investment Income From The Quarter | 20% | |||
Percentage Of Incentive Fee Capital Gains Is Determined And Payable In Arrears As At End Of Each Calender Year | 20% | |||
Incentive fee incurred on capital gains | $ 0 | 0 | 0 | |
Aggregate Accrued Incentive Fees On Capital Gains | 0 | |||
Payment Of Incentive fees With Respect TO Realized Gains To The Adviser | $ 0 | |||
Minimum Reimbursement Amount As A Percentage Of Average Gross Assets | 0.40% | |||
Administration fees payable to related party incurred during period | [1] | $ 194,764 | 226,948 | 244,754 |
Annual Rate Percentage Of Average Gross Assets | 3.40% | |||
Organization costs and offering costs are limited to percentage of total gross proceeds raised in the offering | 1% | |||
Cumulative Aggregate Amount Of Organization And Offering Costs | $ 5,327,574 | |||
Adviser Forfeited The Right To Reimbursement of The Remaining Amount Of Costs Subsequent To Termination Of The Offering | 4,305,091 | |||
Annual Retainer Amount Payable IN Quarterly Installments To Related Party Oversees All Of The Portfolios In The Fund Complex | 150,000 | |||
Annual Retainer Amount Payable In Quarterly Installments To Related Party Who Does Not Oversees All Portfolios On Prorated Basis Of Who Oversees All Portfolios | 150,000 | |||
Additional Payment Amount Eligible To Receive By Related Party Payable In Quarterly Installments | 10,000 | |||
Directors Fee Expense | [1] | 15,194 | 18,170 | 17,781 |
Director Fee Expense Payable Amount | $ 0 | |||
Expense Limitation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
As Per Agreement Contractually Obligated To Waive Fees And If Necessary Pay Or Reimburse Certain Other Expenses To Percentage Of Quarter End Value Of The Gross Assets | 1% | |||
As Per Agreement Obligation Renewal period | one-year | |||
As Per Agreement Written Notice Period For Termination | 60 days | |||
Cumulative Total Of Fees Waived By Adviser Under Agreement Which Are Recoupable | $ 1,093,631 | |||
Adviser [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administration fees payable to related party incurred during period | 194,764 | 226,948 | $ 244,754 | |
Voluntarily reimburse amount for unrealized losses | 0 | 0 | ||
Cumulative committed amount to voluntarily reimburse the unrealized losses | 2,275,000 | |||
Related Party [Member] | Expense Limitation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Receivable from advisor | 137,648 | 92,216 | ||
Related Party [Member] | Advisory Fees And Administration Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payable to Adviser | $ 284,896 | $ 314,993 | ||
[1]See Note 4 for a discussion of related party transactions and arrangements. |
U.S. Federal Income Tax Infor_3
U.S. Federal Income Tax Information - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Tax Disclosure [Abstract] | ||||
Percentage of Distribution to Shareholders,investment company taxable income | 90% | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 98% | |||
Effective Income Tax Rate Reconciliation, Disposition of Asset, Percent | 98.20% | |||
Investment Company, Distributable Earnings (Loss), Accumulated Capital Loss Carryforward | $ 36,246,978 | $ 30,814,250 | $ 30,077,894 | |
Percentage of income to be distributed to shareholders minimum | 90% | |||
Excise tax as a percentage of income in excess of dividend distirubtions per annum | 4% | |||
Deferred tax assets gross | [1] | $ 13,020 | $ 0 | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21% | |||
Effective income tax rate reconciliation, percent, total | (0.89%) | 0% | ||
[1]See Note 9 for a discussion of affiliated investments. |
U.S. Federal Income Tax Infor_4
U.S. Federal Income Tax Information - Summary of Permanent Book Tax Differences and Reclasses (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Investment Income Permanent Book Tax Differences [Abstract] | ||||
Paid in capital excess of par value | $ (19,894) | $ (533,512) | $ 2,104,942 | |
Distributions in excess of net investment income | [1] | (2,103) | (308,998) | 1,143,870 |
Accumulated realized gains | [1] | $ 21,997 | $ 842,510 | $ (3,248,812) |
[1]Amounts are included in distributable earnings (accumulated loss) on the Consolidated Statements of Assets and Liabilities. |
U.S. Federal Income Tax Infor_5
U.S. Federal Income Tax Information - Summary of Components of Distributable Earnings on a Tax Basis (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Retained Earnings (Accumulated Deficit) [Abstract] | |||
Undistributed ordinary income | $ 0 | $ 0 | $ 72,812 |
Net tax appreciation/(depreciation) | 3,674,703 | (1,567,035) | 2,708,891 |
Undistributed capital gains | 0 | 0 | 0 |
Other temporary differences | $ (848,575) | $ (883,602) | $ (910,576) |
U.S. Federal Income Tax Infor_6
U.S. Federal Income Tax Information - Summary of Tax Character of Shareholder Distributions (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Company, Distribution to Shareholders [Abstract] | |||
Ordinary income | $ 1,629,804 | $ 1,526,458 | $ 3,633,179 |
Return of capital | 1,757,477 | 1,999,373 | 0 |
Long term gain | $ 0 | $ 0 | $ 0 |
U.S. Federal Income Tax Infor_7
U.S. Federal Income Tax Information - Summary of Cost of Investments for U.S Federal Income Tax Purposes (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Gross appreciation | $ 9,837,724 | $ 7,373,938 | $ 4,599,564 |
Gross (depreciation) | (6,163,021) | (8,940,973) | (1,890,673) |
Net appreciation/(depreciation) | 3,674,703 | (1,567,035) | 2,708,891 |
Cost | $ 45,438,583 | $ 54,860,750 | $ 57,527,420 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Minimum limit of shares to be repurchased, percent | 10% | 10% | 2.50% | |||
Percentage of shares tobe issued under ceiling limit of net asset value per share | 2.50% | 2.50% | ||||
Minimum notice period of shares to be suspend or terminate | 30% | 30% | ||||
Stock Repurchased During Period, Shares | 0 | |||||
First Quarter Tender Offer [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Minimum limit of shares to be repurchased, percent | 1.86% | |||||
Percentage of share offered to purchase for cash | 2.50% | |||||
Stock Repurchase Program Expiration Date | Mar. 24, 2023 | |||||
Stock Repurchased During Period, Shares | 181,298 | |||||
Second Quarter Tender Offer [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Minimum limit of shares to be repurchased, percent | 1.90% | |||||
Percentage of share offered to purchase for cash | 2.50% | |||||
Stock Repurchase Program Expiration Date | Jun. 20, 2023 | |||||
Stock Repurchased During Period, Shares | 179,159 | |||||
Third Quarter Tender Offer [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Minimum limit of shares to be repurchased, percent | 1.20% | |||||
Percentage of share offered to purchase for cash | 2.50% | |||||
Stock Repurchase Program Expiration Date | Sep. 25, 2023 | |||||
Stock Repurchased During Period, Shares | 118,580 | |||||
Fourth Quarter Tender Offer [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Minimum limit of shares to be repurchased, percent | 1.05% | 1.05% | ||||
Percentage of share offered to purchase for cash | 2.50% | 2.50% | ||||
Stock Repurchase Program Expiration Date | Dec. 18, 2023 | |||||
Stock Repurchased During Period, Shares | 99,756 |
Economic Dependency and Commi_2
Economic Dependency and Commitments and Contingencies - Additional Information (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Other Commitments [Line Items] | |||
Commitments and contingencies | [1] | ||
Unfunded Loan Commitment [Member] | |||
Other Commitments [Line Items] | |||
Commitments and contingencies | $ 0 | ||
[1]See Note 4 and Note 7 for a discussion of the commitments and contingencies of the Company (as defined in Note 1). |
Affiliated Investments - Summar
Affiliated Investments - Summary of Affiliated Issuers of the Company (Detail) | 12 Months Ended | |
Dec. 31, 2023 USD ($) shares | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 956,291 | |
Fair value at the beginning period | $ 10,273,001 | |
Purchases | 7,911,398 | |
Sales | (7,802,269) | [1] |
Realized gains (losses) | 68,709 | |
Change in unrealized appreciation (depreciation) | 314,715 | |
Fair value at the ending period | $ 10,696,845 | |
Shares at the ending period | shares | 1,453,556 | |
Affiliated Dividend income | $ 837,839 | |
NexPoint Residential Trust, Inc. [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 23,409 | |
Fair value at the beginning period | $ 1,018,779 | |
Purchases | 0 | |
Sales | 3,048 | [1] |
Realized gains (losses) | 52,401 | |
Change in unrealized appreciation (depreciation) | (215,840) | |
Fair value at the ending period | $ 805,987 | |
Shares at the ending period | shares | 23,409 | |
Affiliated Dividend income | $ (9,033) | |
NexPoint Capital REIT, LLC (Common Stocks) [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 100 | |
Fair value at the beginning period | $ 1,176,024 | |
Purchases | 7,448,085 | |
Sales | (244,193) | [1] |
Realized gains (losses) | 0 | |
Change in unrealized appreciation (depreciation) | (1,365,142) | |
Fair value at the ending period | $ 7,014,774 | |
Shares at the ending period | shares | 737 | |
Affiliated Dividend income | $ 572,121 | |
NexPoint Capital REIT, LLC (Senior Loans) [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 0 | |
Fair value at the beginning period | $ 0 | |
Purchases | 463,314 | |
Sales | 0 | [1] |
Realized gains (losses) | 0 | |
Change in unrealized appreciation (depreciation) | 0 | |
Fair value at the ending period | $ 463,314 | |
Shares at the ending period | shares | 463,314 | |
Affiliated Dividend income | $ 0 | |
NexPoint Real Estate Finance, Inc. [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 481,670 | |
Fair value at the beginning period | $ 7,653,730 | |
Purchases | 0 | |
Sales | (7,481,124) | [1] |
Realized gains (losses) | 16,308 | |
Change in unrealized appreciation (depreciation) | 1,901,191 | |
Fair value at the ending period | $ 2,073,797 | |
Shares at the ending period | shares | 131,670 | |
Affiliated Dividend income | $ 231,424 | |
SFR WLIF III, LLC [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Shares at the beginning period | shares | 451,112 | |
Fair value at the beginning period | $ 424,468 | |
Purchases | (1) | |
Sales | (80,000) | [1] |
Realized gains (losses) | 0 | |
Change in unrealized appreciation (depreciation) | (5,494) | |
Fair value at the ending period | $ 338,973 | |
Shares at the ending period | shares | 371,112 | |
Affiliated Dividend income | $ 43,327 | |
[1]The sales figures reported above include dividends from the return of capital. Additionally, some of the sales transactions were made to the subreit at cost, thereby not generating any realized gain or loss. |
Financial Highlights - Summary
Financial Highlights - Summary of Share Outstanding (Detail) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 USD ($) $ / shares shares | Sep. 30, 2023 $ / shares | Jun. 30, 2023 $ / shares | Mar. 31, 2023 $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2022 $ / shares | Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Dec. 31, 2023 USD ($) shares $ / shares | Dec. 31, 2022 USD ($) shares $ / shares | Dec. 31, 2021 USD ($) shares $ / shares | Dec. 31, 2020 USD ($) shares $ / shares | Dec. 31, 2019 USD ($) shares $ / shares | |
Investment Company, Financial Highlights [Line Items] | |||||||||||||
Net asset value, beginning of period | $ 5.24 | $ 5.26 | $ 5.36 | $ 5.55 | $ 5.6 | $ 5.96 | $ 6.35 | $ 6.32 | $ 5.55 | $ 6.32 | $ 6.13 | $ 8.53 | $ 8.36 |
Investment Company, Investment Income (Loss) from Operations, Per Share [Abstract] | |||||||||||||
Net investment income(1) | 0.01 | 0.07 | 0.05 | 0.04 | 0.01 | 0.06 | 0.06 | 0.05 | 0.17 | 0.18 | 0.19 | 0.24 | 0.3 |
Net realized and unrealized gain (loss) | 0.19 | 0 | (0.07) | (0.14) | 0.03 | (0.32) | (0.36) | 0.07 | (0.02) | (0.59) | 0.37 | (2.22) | 0.59 |
Total from investment operations | $ 0.15 | $ (0.41) | $ 0.56 | $ (1.98) | $ 0.89 | ||||||||
Less distribution declared to common shareholders: | |||||||||||||
From net investment income (per share) | shares | (0.18) | (0.16) | (0.37) | (0.42) | (0.6) | ||||||||
From net realized gains | shares | 0 | 0 | 0 | 0 | (0.12) | ||||||||
From return of capital | shares | (0.18) | (0.2) | 0 | 0 | 0 | ||||||||
Total distributions declared to common shareholders | $ (0.36) | $ (0.36) | $ (0.37) | $ (0.42) | $ (0.72) | ||||||||
Investment Company, Capital Share Transactions [Abstract] | |||||||||||||
Issuance of common stock(2) (per share) | 0 | 0 | 0 | 0 | 0 | ||||||||
Shares tendered(1) (per share) | 0 | 0 | 0 | 0 | 0 | ||||||||
Net asset value, end of period | $ 5.35 | $ 5.24 | $ 5.26 | $ 5.36 | $ 5.55 | $ 5.6 | $ 5.96 | $ 6.35 | $ 5.35 | $ 5.55 | $ 6.32 | $ 6.13 | $ 8.53 |
Net asset value total return(3)(4) | 3.20% | (6.65%) | 9.12% | (23.17%) | 10.86% | ||||||||
Investment Company, Financial Ratios [Abstract] | |||||||||||||
Net assets, end of period (in 000's) | $ | $ 49,809,526 | $ 53,694,167 | $ 49,809,526 | $ 53,694,167 | $ 62,938,908 | $ 64,190,472 | $ 88,936,000 | ||||||
Shares outstanding, end of period | shares | 9,309,405 | 9,677,593 | 9,309,405 | 9,677,593 | 9,956,228 | 10,475,168 | 10,425,431 | ||||||
Ratios based on weighted average net assets of common shares: | |||||||||||||
Gross operating expenses(5) | 4.12% | 3.82% | 3.78% | 3.99% | 5.36% | ||||||||
Fees and expenses waived or reimbursed(5) | (0.83%) | (0.63%) | (0.45%) | (0.54%) | (0.16%) | ||||||||
Net operating expenses(5) | 3.20% | 3.19% | 3.33% | 3.45% | 5.20% | ||||||||
Net investment income (loss) before fees waived or reimbursed(5) | 2.40% | 2.43% | 2.50% | 3.41% | 3.33% | ||||||||
Net investment income (loss) after fees waived or reimbursed(5) | 3.22% | 3.06% | 2.95% | 3.95% | 3.50% | ||||||||
Ratio of interest and credit facility expenses to average net assets | 0% | 0% | 0% | 0.27% | 1.37% | ||||||||
Portfolio turnover rate(4) | 9% | 16% | 13% | 83% | 42% | ||||||||
Asset coverage ratio | 0% | 0% | 0% | 0% | 241% | ||||||||
Weighted average commission rate paid(6) | 0% | 0% | 0% | 0.0328% | 0.0331% |
Financial Highlights - Summar_2
Financial Highlights - Summary of Share Outstanding (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2023 shares | |
Investment Company, Financial Highlights [Abstract] | |
Shares tendered(1) (per share) | 0.005 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Schedule Of Quarterly Financial Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||||
Total investment income | $ 540,182 | $ 1,058,773 | $ 918,436 | $ 814,832 | $ 584,515 | $ 993,592 | $ 1,099,896 | $ 1,014,610 | ||||||
Total investment income per common share | $ 0.06 | $ 0.11 | $ 0.1 | $ 0.08 | $ 0.06 | $ 0.1 | $ 0.11 | $ 0.1 | ||||||
Net investment income | $ 109,719 | $ 681,628 | $ 512,066 | $ 363,521 | $ 113,631 | $ 555,608 | $ 629,257 | $ 491,122 | $ 1,653,914 | $ 1,789,618 | $ 1,923,427 | |||
Net investment income per common share | $ 0.01 | $ 0.07 | $ 0.05 | $ 0.04 | $ 0.01 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.17 | $ 0.18 | $ 0.19 | $ 0.24 | $ 0.3 | |
Net realized and unrealized gain (loss) | $ 1,732,521 | $ 22,833 | $ (627,003) | $ (1,341,338) | $ 257,082 | $ (3,208,231) | $ (3,557,538) | $ 653,895 | ||||||
Net realized and unrealized gain (loss) per common share | $ 0.19 | $ 0 | $ (0.07) | $ (0.14) | $ 0.03 | $ (0.32) | $ (0.36) | $ 0.07 | $ (0.02) | $ (0.59) | $ 0.37 | (2.22) | 0.59 | |
Net increase (decrease) in net assets resulting from operations | $ 1,842,240 | $ 704,461 | $ (114,937) | $ (977,817) | $ 370,713 | $ (2,652,623) | $ (2,928,281) | $ 1,145,017 | $ 1,453,947 | $ (4,065,174) | $ 5,706,143 | |||
Earnings Per Share, Basic | $ 0.19 | $ 0.07 | $ (0.01) | $ (0.1) | $ 0.04 | $ (0.27) | $ (0.29) | $ 0.11 | $ 0.15 | $ (0.41) | $ 0.56 | |||
Earnings Per Share, Diluted | 0.19 | 0.07 | (0.01) | (0.1) | 0.04 | (0.27) | (0.29) | 0.11 | 0.15 | (0.41) | 0.56 | |||
Net asset value per common share at end of quarter | $ 5.35 | $ 5.24 | $ 5.26 | $ 5.36 | $ 5.55 | $ 5.6 | $ 5.96 | $ 6.35 | $ 5.35 | $ 5.55 | $ 6.32 | $ 6.13 | $ 8.53 | $ 8.36 |