Management Fee
The gross management fee expenses for the three months ended September 30, 2023 and September 30, 2022 were $4,276,488 and $3,644,259, respectively. The increase in the management fee for the three months ended September 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 nine months ended September 30, 2023 and September 30, 2022 were $12,419,430 and $10,438,278, respectively. The increase in the management fee for the nine months ended September 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 nine months ended September 30, 2023 and September 30, 2022, the Adviser waived management fees of $0 and $283,566, respectively.
Fund Expenses
For the three months ended September 30, 2023, the Fund incurred $25,949,703 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 $96,092 of tax expense.
For the three months ended September 30, 2022, the Fund incurred $14,582,793 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. The Fund incurred $382,072 of tax expense.
For the nine months ended September 30, 2023, the Fund incurred $73,406,445 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 $374,118 of tax expense.
For the nine months ended September 30, 2022, the Fund incurred $38,631,800 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 $949,155 of tax expense.
Net Realized Gain (Loss) on Investments
During the three months ended September 30, 2023, the Fund had restructuring which resulted in $14,243 of net realized gain. During the nine months ended September 30, 2023, the Fund had principal repayments and sales which resulted in $284,155 of net realized loss.
During the three months ended September 30, 2022, the Fund had principal repayments and sales which resulted in $842,514 of net realized gain. During the nine months ended September 30, 2022, the Fund had principal repayments and sales which resulted in $1,659,467 of net realized gain.
Net Change in Unrealized Appreciation (Depreciation) on Investments
During the three months ended September 30, 2023, the Fund had $6,706,238 in net change in unrealized appreciation on $1,269,400,998 of investments in 190 portfolio companies. Net change in unrealized appreciation for the three months ended September 30, 2023, resulted from an increase in fair value, primarily due to positive valuation adjustments on level 3 securities.
During the three months ended September 30, 2022, the Fund had $9,970,897 in net change in unrealized depreciation on $1,079,344,029 of investments in 180 portfolio companies. Net change in unrealized depreciation for the three months ended September 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 nine months ended September 30, 2023, the Fund had $4,031,454 in net change in unrealized appreciation on $1,269,400,998 of investments in 190 portfolio companies. Net change in unrealized appreciation for the nine months ended September 30, 2023, resulted from an increase in fair value, primarily due to positive valuation adjustments on level 3 securities.
During the nine months ended September 30, 2022, the Fund had $14,708,033 in net change in unrealized depreciation on $1,079,344,029 of investments in 180 portfolio companies. Net change in unrealized depreciation for the nine months ended September 30, 2022, resulted from a broad portfolio decline due to a decline in loan market secondary prices and widening primary issue credit spreads as well as a reclass of prior unrealized gain to investment income from a large prepayment fee on one investment. 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.
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