Management Fee
The gross management fee expenses for the three months ended June 30, 2023 and June 30, 2022 were $4,204,038 and $3,391,227, respectively. The increase in the management fee for the three months ended June 30, 2023 was a result of the increase in average gross assets during this period, which are the basis used to calculate management fees.
The gross management fee expenses for the six months ended June 30, 2023 and June 30, 2022 were $8,142,942 and $6,794,019, respectively. The increase in the management fee for the six months ended June 30, 2023 was a result of the increase in average gross assets during this period, which are the basis used to calculate management fees. For the six months ended June 30, 2023 and June 30, 2022, the Adviser waived management fees of $0 and $283,566, respectively.
Fund Expenses
For the three months ended June 30, 2023, the Fund incurred $25,651,098 of expenses in relation to interest and borrowing expenses, management fees, incentive fees, professional fees, administration and custodian fees, insurance expenses, directors’ fees, and other expenses. The Fund incurred $260,725 of tax expense.
For the three months ended June 30, 2022, the Fund incurred $12,434,969 of expenses in relation to interest and borrowing expenses, management fees, incentive fees, professional fees, administration and custodian fees, insurance expenses, directors’ fees, collateral management fees, transfer agent fees, and other expenses. Further, $131,978 of collateral management fees were waived by the Adviser. The Fund incurred $258,256 of tax expense.
For the six months ended June 30, 2023, the Fund incurred $47,456,742 of expenses in relation to interest and borrowing expenses, management fees, incentive fees, professional fees, administration and custodian fees, insurance expenses, directors’ fees, transfer agent fees, and other expenses. The Fund incurred $278,026 of tax expense.
For the six months ended June 30, 2022, the Fund incurred $24,049,007 of expenses in relation to interest and borrowing expenses, management fees, incentive fees, professional fees, administration and custodian fees, insurance expenses, directors’ fees, collateral management fees, transfer agent fees, and other expenses. Additionally, $259,263 was reimbursed by the Fund to the Adviser and its affiliates. Further, $283,566 of management fees and $588,476 of collateral management fees were waived by the Adviser. The Fund incurred $567,083 of tax expense.
Net Realized Gain (Loss) on Investments
During the three months ended June 30, 2023, the Fund had principal repayments and sales which resulted in $303,851 of net realized loss. During the six months ended June 30, 2023, the Fund had principal repayments and sales which resulted in $298,398 of net realized loss.
During the three months ended June 30, 2022, the Fund had principal repayments and sales which resulted in $644,621 of net realized gain. During the six months ended June 30, 2022, the Fund had principal repayments and sales which resulted in $816,953 of net realized gain.
Net Change in Unrealized Appreciation (Depreciation) on Investments
During the three months ended June 30, 2023, the Fund had $7,197,196 in net change in unrealized depreciation on $1,253,961,805 of investments in 195 portfolio companies. Unrealized depreciation for the three months ended June 30, 2023, resulted from an decrease in fair value, primarily due to negative valuation adjustments on level 3 securities.
During the three months ended June 30, 2022, the Fund had $1,831,141 in net change in unrealized depreciation on $1,027,727,319 of investments in 178 portfolio companies. Net change in unrealized depreciation for the three months ended June 30, 2022, resulted from a broad portfolio decline due to a decline in loan market secondary prices and widening primary issue credit spreads. This depreciation was partially offset by gains on debt and equity positions marked up due to company performance or expectation of near-term repayment at par.
During the six months ended June 30, 2023, the Fund had $2,674,784 in net change in unrealized depreciation on $1,253,961,805 of investments in 195 portfolio companies. Net change in unrealized depreciation for the six months ended June 30, 2023, resulted from a decrease in fair value, primarily due to negative valuation adjustments on debt securities, which were slightly offset by positive valuation adjustments on equity securities.
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