Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-222986 | |
Entity Registrant Name | CNL STRATEGIC CAPITAL, LLC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0503849 | |
Entity Address, Address Line One | CNL Center at City Commons | |
Entity Address, Address Line Two | 450 South Orange Avenue | |
Entity Address, City or Town | Orlando, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32801 | |
City Area Code | 407 | |
Local Phone Number | 650-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001684682 | |
Current Fiscal Year End Date | --12-31 | |
Class FA | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,276,859 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,863,759 | |
Class T | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,999,914 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,426,640 | |
Class I | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,136,208 | |
Class S | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,765,257 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | ||
Assets | ||||
Investments at fair value (amortized cost of $473,967 and $387,754, respectively) | $ 559,494 | [1],[2] | $ 455,997 | [3],[4] |
Cash | 47,360 | 58,704 | ||
Prepaid expenses and other assets | 397 | 143 | ||
Total assets | 607,251 | 514,844 | ||
Liabilities | ||||
Net due from related parties (Note 5) | 8,008 | 9,922 | ||
Payable for shares repurchased | 10,813 | 509 | ||
Deferred tax liabilities, net | 2,460 | 1,877 | ||
Distributions payable | 1,801 | 1,566 | ||
Accounts payable and other accrued expenses | 725 | 661 | ||
Total liabilities | 23,807 | 14,535 | ||
Commitments and contingencies (Note 11) | ||||
Members’ Equity (Net Assets) | ||||
Preferred shares, $0.001 par value, 50,000 shares authorized and unissued | 0 | 0 | ||
Capital in excess of par value | 511,940 | 442,752 | ||
Distributable earnings | 71,486 | 57,541 | ||
Total Members’ Equity | 583,444 | 500,309 | ||
Net assets, Total Members’ Equity | 583,444 | [1],[2] | 500,309 | [3],[4] |
Class FA | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 4 | 5 | ||
Net assets, Total Members’ Equity | 143,454 | 148,717 | ||
Class A | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 2 | 1 | ||
Net assets, Total Members’ Equity | 55,433 | 44,958 | ||
Class T | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 2 | 2 | ||
Net assets, Total Members’ Equity | 61,152 | 49,328 | ||
Class D | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 1 | 1 | ||
Net assets, Total Members’ Equity | 42,574 | 30,607 | ||
Class I | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 7 | 5 | ||
Net assets, Total Members’ Equity | 220,797 | 168,704 | ||
Class S | ||||
Members’ Equity (Net Assets) | ||||
Common shares | 2 | 2 | ||
Net assets, Total Members’ Equity | $ 60,034 | $ 57,995 | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Income | ||||
Interest income | $ 6,470 | $ 4,449 | $ 12,307 | $ 7,507 |
Dividend income | 3,638 | 1,878 | 9,543 | 2,779 |
Total investment income | 10,108 | 6,327 | 21,850 | 10,286 |
Operating Expenses | ||||
Total return incentive fees | 1,741 | 2,577 | 4,633 | 4,870 |
Base management fees | 2,129 | 1,156 | 3,992 | 1,990 |
Organization and offering expenses | 716 | 700 | 1,246 | 1,114 |
Professional services | 455 | 388 | 878 | 773 |
Pursuit costs | 179 | 514 | 339 | 514 |
Distribution and shareholder servicing fees | 180 | 79 | 339 | 143 |
Custodian and accounting fees | 85 | 61 | 206 | 115 |
Insurance expense | 57 | 58 | 116 | 113 |
Director fees and expenses | 51 | 51 | 102 | 102 |
General and administrative expenses | 74 | 36 | 100 | 74 |
Total operating expenses | 5,667 | 5,620 | 11,951 | 9,808 |
Expense support | 0 | (1,845) | 0 | (4,495) |
Reimbursement of expense support | 722 | 0 | 2,352 | 0 |
Net operating expenses | 6,389 | 3,775 | 14,303 | 5,313 |
Net investment income before taxes | 3,719 | 2,552 | 7,547 | 4,973 |
Income tax expense | (334) | (140) | (116) | (140) |
Net investment income | 3,385 | 2,412 | 7,431 | 4,833 |
Net unrealized appreciation on investments: | ||||
Net change in unrealized appreciation on investments | 5,515 | 14,875 | 17,284 | 28,787 |
Net change in deferred taxes on investments | 113 | (86) | (583) | (19) |
Net increase in net assets resulting from operations | $ 9,013 | $ 17,201 | $ 24,132 | $ 33,601 |
Common shares information: | ||||
Net investment income (usd per share) | $ 0.20 | $ 0.20 | $ 0.44 | $ 0.43 |
Net increase in net assets resulting from operations (usd per share) | $ 0.52 | $ 1.45 | $ 1.44 | $ 2.98 |
Weighted average number of common shares outstanding (in shares) | 17,318 | 11,828 | 16,766 | 11,282 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Total Net Assets | ||||||
Beginning balance | $ 541,710 | $ 346,477 | $ 500,309 | [1],[2] | $ 308,962 | |
Net investment income | 3,385 | 2,412 | 7,431 | 4,833 | ||
Net change in unrealized appreciation on investments | 5,515 | 14,875 | 17,284 | 28,787 | ||
Net change in deferred taxes on investments | 113 | (86) | (583) | (19) | ||
Distributions to shareholders | (5,259) | (3,618) | (10,187) | (6,908) | ||
Issuance of common shares through the Public Offerings | 47,042 | 43,997 | 81,926 | 68,855 | ||
Issuance of common shares through distribution reinvestment plan | 1,751 | 887 | $ 3,316 | $ 1,645 | ||
Repurchase of common shares pursuant to share repurchase program (in shares) | (493) | (69) | ||||
Repurchase of common shares pursuant to share repurchase program | (10,813) | (877) | $ (16,052) | $ (2,088) | ||
Ending balance | $ 583,444 | [3],[4] | $ 404,067 | $ 583,444 | [3],[4] | $ 404,067 |
Common Stock | ||||||
Total Net Assets | ||||||
Beginning balance (in shares) | 16,822 | 11,287 | 15,814 | 10,458 | ||
Beginning balance | $ 17 | $ 11 | $ 16 | $ 10 | ||
Issuance of common shares through the Offerings (in shares) | 1,493 | 1,442 | 2,611 | 2,286 | ||
Issuance of common shares through the Public Offerings | $ 1 | $ 2 | $ 2 | $ 3 | ||
Issuance of common shares through distribution reinvestment plan (in shares) | 56 | 30 | 106 | 56 | ||
Repurchase of common shares pursuant to share repurchase program (in shares) | (333) | (28) | (493) | (69) | ||
Ending balance (in shares) | 18,038 | 12,731 | 18,038 | 12,731 | ||
Ending balance | $ 18 | $ 13 | $ 18 | $ 13 | ||
Capital in Excess of Par Value | ||||||
Total Net Assets | ||||||
Beginning balance | 473,961 | 303,312 | 442,752 | 278,908 | ||
Issuance of common shares through the Public Offerings | 47,041 | 43,995 | 81,924 | 68,852 | ||
Issuance of common shares through distribution reinvestment plan | 1,751 | 887 | 3,316 | 1,645 | ||
Repurchase of common shares pursuant to share repurchase program | (10,813) | (877) | (16,052) | (2,088) | ||
Ending balance | 511,940 | 347,317 | 511,940 | 347,317 | ||
Distributable Earnings | ||||||
Total Net Assets | ||||||
Beginning balance | 67,732 | 43,154 | 57,541 | 30,044 | ||
Net investment income | 3,385 | 2,412 | 7,431 | 4,833 | ||
Net change in unrealized appreciation on investments | 5,515 | 14,875 | 17,284 | 28,787 | ||
Net change in deferred taxes on investments | 113 | (86) | (583) | (19) | ||
Distributions to shareholders | (5,259) | (3,618) | (10,187) | (6,908) | ||
Ending balance | $ 71,486 | $ 56,737 | $ 71,486 | $ 56,737 | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities: | ||||
Net Income (Loss) Attributable to Parent | $ 9,013 | $ 17,201 | $ 24,132 | $ 33,601 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | ||||
Purchases of investments | (86,450) | (73,000) | ||
Net change in unrealized appreciation on investments | (5,515) | (14,875) | (17,284) | (28,787) |
Proceeds from return of capital on investments | 237 | 0 | ||
Decrease in due to related parties | (1,914) | (468) | ||
Increase in accounts payable and other accrued expenses | 64 | 383 | ||
Increase in deferred tax liability, net | 583 | 19 | ||
Increase in prepaid expenses and other assets | (201) | (144) | ||
Other operating activities | 10 | 94 | ||
Net cash used in operating activities | (80,823) | (68,302) | ||
Financing Activities: | ||||
Proceeds from issuance of common shares | 81,926 | 56,772 | ||
Payment on repurchases of common shares | (5,748) | (3,179) | ||
Distributions paid, net of distributions reinvested | (6,636) | (5,016) | ||
Deferred financing costs | (63) | 0 | ||
Net cash provided by financing activities | 69,479 | 48,577 | ||
Net decrease in cash | (11,344) | (19,725) | ||
Cash, beginning of period | 58,704 | 82,688 | ||
Cash, end of period | 47,360 | 62,963 | 47,360 | 62,963 |
Supplemental disclosure of cash flow information and non-cash financing activities: | ||||
Distributions reinvested | 3,316 | 1,645 | ||
Amounts incurred but not paid (including amounts due to related parties): | ||||
Distributions payable | 1,801 | 1,264 | 1,801 | 1,264 |
Offering costs | 173 | 183 | ||
Payable for shares repurchased | $ 10,813 | $ 878 | $ 10,813 | $ 878 |
CONDENSED CONSOLIDATED SCHEDULE
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||||
Cost | $ 473,967,000 | [1],[2] | $ 387,754,000 | [3],[4] | |
Fair Value | 559,494,000 | [1],[2] | 455,997,000 | [3],[4] | |
Other Assets in Excess of Liabilities | 23,950,000 | [1],[2] | 44,312,000 | [3],[4] | |
NET ASSETS – 100.0% | $ 583,444,000 | [1],[2] | $ 500,309,000 | [3],[4] | |
NET ASSETS (as a percent) | 100% | 100% | |||
First lien | |||||
Cost | $ 101,600,000 | [1],[2] | $ 116,600,000 | [3],[4] | |
Fair Value | $ 101,600,000 | [1],[2] | $ 116,600,000 | [3],[4] | |
First lien | ATA | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
First lien | ATA | Real Estate Services | |||||
Principal Amount / No. Shares (in shares) | $ 37,000,000 | [1],[2] | $ 37,000,000 | [3],[4] | |
Cost | 37,000,000 | [1],[2] | 37,000,000 | [3],[4] | |
Fair Value | $ 37,000,000 | [1],[2] | $ 37,000,000 | [3],[4] | |
First lien | Auriemma U.S. Roundtables | |||||
Interest Rate | 0.080 | [1],[2] | 0.080 | [3],[4] | |
First lien | Auriemma U.S. Roundtables | Information Services and Advisory Solutions | |||||
Principal Amount / No. Shares (in shares) | $ 2,000,000 | [1],[2] | $ 2,000,000 | [3],[4] | |
Cost | 2,000,000 | [1],[2] | 2,000,000 | [3],[4] | |
Fair Value | $ 2,000,000 | [1],[2] | $ 2,000,000 | [3],[4] | |
First lien | Clarion Safety Systems | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
First lien | Clarion Safety Systems | Visual Safety Solutions | |||||
Principal Amount / No. Shares (in shares) | $ 22,500,000 | [1],[2] | $ 22,500,000 | [3],[4] | |
Cost | 22,500,000 | [1],[2] | 22,500,000 | [3],[4] | |
Fair Value | $ 22,500,000 | [1],[2] | $ 22,500,000 | [3],[4] | |
First lien | HSH | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
First lien | HSH | Healthcare Supplies | |||||
Principal Amount / No. Shares (in shares) | $ 24,400,000 | [1],[2] | $ 24,400,000 | [3],[4] | |
Cost | 24,400,000 | [1],[2] | 24,400,000 | [3],[4] | |
Fair Value | $ 24,400,000 | [1],[2] | $ 24,400,000 | [3],[4] | |
First lien | Polyform Products, Co. | |||||
Interest Rate | 0.160 | [1],[2] | 0.160 | [3],[4] | |
First lien | Polyform Products, Co. | Hobby Goods and Supplies | |||||
Principal Amount / No. Shares (in shares) | $ 15,700,000 | [1],[2] | $ 15,700,000 | [3],[4] | |
Cost | 15,700,000 | [1],[2] | 15,700,000 | [3],[4] | |
Fair Value | 15,700,000 | [1],[2] | $ 15,700,000 | [3],[4] | |
First lien | Douglas Machines Corp. | |||||
Interest Rate | [3],[4] | 0.160 | |||
First lien | Douglas Machines Corp. | Sanitation Products | |||||
Principal Amount / No. Shares (in shares) | [3],[4] | $ 15,000,000 | |||
Cost | [3],[4] | 15,000,000 | |||
Fair Value | [3],[4] | 15,000,000 | |||
Second lien | |||||
Cost | 75,342,000 | [1],[2] | 35,942,000 | [3],[4] | |
Fair Value | $ 75,342,000 | [1],[2] | $ 35,942,000 | [3],[4] | |
Second lien | Auriemma U.S. Roundtables | |||||
Interest Rate | 0.160 | [1],[2] | 0.160 | [3],[4] | |
Second lien | Auriemma U.S. Roundtables | Information Services and Advisory Solutions | |||||
Principal Amount / No. Shares (in shares) | $ 12,114,000 | [1],[2] | $ 12,114,000 | [3],[4] | |
Cost | 12,114,000 | [1],[2] | 12,114,000 | [3],[4] | |
Fair Value | $ 12,114,000 | [1],[2] | $ 12,114,000 | [3],[4] | |
Second lien | Blue Ridge | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
Second lien | Blue Ridge | Business Services | |||||
Principal Amount / No. Shares (in shares) | $ 2,641,000 | [1],[2] | $ 2,641,000 | [3],[4] | |
Cost | 2,641,000 | [1],[2] | 2,641,000 | [3],[4] | |
Fair Value | $ 2,641,000 | [1],[2] | $ 2,641,000 | [3],[4] | |
Second lien | Douglas Machines Corp. | |||||
Interest Rate | [1],[2] | 0.160 | |||
Second lien | Douglas Machines Corp. | Sanitation Products | |||||
Principal Amount / No. Shares (in shares) | [1],[2] | $ 15,000,000 | |||
Cost | [1],[2] | 15,000,000 | |||
Fair Value | [1],[2] | $ 15,000,000 | |||
Second lien | Lawn Doctor, Inc. | |||||
Interest Rate | 0.160 | [1],[2] | 0.160 | [3],[4] | |
Second lien | Lawn Doctor, Inc. | Commercial and Professional Services | |||||
Principal Amount / No. Shares (in shares) | $ 15,000,000 | [1],[2] | $ 15,000,000 | [3],[4] | |
Cost | 15,000,000 | [1],[2] | 15,000,000 | [3],[4] | |
Fair Value | $ 15,000,000 | [1],[2] | $ 15,000,000 | [3],[4] | |
Second lien | Milton | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
Second lien | Milton | Engineered Products | |||||
Principal Amount / No. Shares (in shares) | $ 3,353,000 | [1],[2] | $ 3,353,000 | [3],[4] | |
Cost | 3,353,000 | [1],[2] | 3,353,000 | [3],[4] | |
Fair Value | $ 3,353,000 | [1],[2] | $ 3,353,000 | [3],[4] | |
Second lien | Resolution Economics | |||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |
Second lien | Resolution Economics | Business Services | |||||
Principal Amount / No. Shares (in shares) | $ 2,834,000 | [1],[2] | $ 2,834,000 | [3],[4] | |
Cost | 2,834,000 | [1],[2] | 2,834,000 | [3],[4] | |
Fair Value | $ 2,834,000 | [1],[2] | 2,834,000 | [3],[4] | |
Second lien | Vektek | |||||
Interest Rate | [3],[4] | 0.150 | |||
Second lien | Vektek | Engineered Products | |||||
Principal Amount / No. Shares (in shares) | [3],[4] | $ 24,400,000 | |||
Cost | [3],[4] | 24,400,000 | |||
Fair Value | [3],[4] | 24,400,000 | |||
Total Senior Secured Notes | |||||
Cost | 176,942,000 | [1],[2] | 152,542,000 | [3],[4] | |
Fair Value | 176,942,000 | [1],[2] | 152,542,000 | [3],[4] | |
Equity | |||||
Cost | 297,025,000 | [1],[2] | 235,212,000 | [3],[4] | |
Fair Value | 382,552,000 | [1],[2] | 303,455,000 | [3],[4] | |
Equity | ATA | Real Estate Services | |||||
Principal Amount / No. Shares (in shares) | 37,985 | [1],[2],[5] | 36,980 | [3],[4],[6] | |
Cost | 37,125,000 | [1],[2],[5] | 36,000,000 | [3],[4],[6] | |
Fair Value | 42,490,000 | [1],[2],[5] | 41,612,000 | [3],[4],[6] | |
Equity | Auriemma U.S. Roundtables | Information Services and Advisory Solutions | |||||
Principal Amount / No. Shares (in shares) | 32,386 | [1],[2],[5] | 32,386 | [3],[4],[6] | |
Cost | 32,386,000 | [1],[2],[5] | 32,386,000 | [3],[4],[6] | |
Fair Value | 43,056,000 | [1],[2],[5] | 40,902,000 | [3],[4],[6] | |
Equity | Clarion Safety Systems | Visual Safety Solutions | |||||
Principal Amount / No. Shares (in shares) | 50,562 | [1],[2],[5] | 46,759 | [3],[4],[6] | |
Cost | 50,756,000 | [1],[2],[5] | 46,759,000 | [3],[4],[6] | |
Fair Value | 55,283,000 | [1],[2],[5] | 46,760,000 | [3],[4],[6] | |
Equity | HSH | Healthcare Supplies | |||||
Principal Amount / No. Shares (in shares) | 17,320 | [1],[2],[5] | 17,320 | [3],[4],[6] | |
Cost | 17,320,000 | [1],[2],[5] | 17,320,000 | [3],[4],[6] | |
Fair Value | 27,416,000 | [1],[2],[5] | 24,117,000 | [3],[4],[6] | |
Equity | Polyform Products, Co. | Hobby Goods and Supplies | |||||
Principal Amount / No. Shares (in shares) | 10,820 | [1],[2],[5] | 10,820 | [3],[4],[6] | |
Cost | 15,599,000 | [1],[2],[5] | 15,599,000 | [3],[4],[6] | |
Fair Value | 22,679,000 | [1],[2],[5] | 24,116,000 | [3],[4],[6] | |
Equity | Blue Ridge | Business Services | |||||
Principal Amount / No. Shares (in shares) | 9,859 | [1],[2] | 9,859 | [3],[4] | |
Cost | 9,859,000 | [1],[2] | 9,859,000 | [3],[4] | |
Fair Value | 15,059,000 | [1],[2] | 12,731,000 | [3],[4] | |
Equity | Douglas Machines Corp. | Sanitation Products | |||||
Principal Amount / No. Shares (in shares) | 35,500 | [1],[2],[5] | 35,500 | [3],[4],[6] | |
Cost | 35,500,000 | [1],[2],[5] | 35,500,000 | [3],[4],[6] | |
Fair Value | 33,826,000 | [1],[2],[5] | 35,500,000 | [3],[4],[6] | |
Equity | Lawn Doctor, Inc. | Commercial and Professional Services | |||||
Principal Amount / No. Shares (in shares) | 7,746 | [1],[2],[5] | 7,746 | [3],[4],[6] | |
Cost | 27,776,000 | [1],[2],[5] | 28,013,000 | [3],[4],[6] | |
Fair Value | 60,634,000 | [1],[2],[5] | 56,806,000 | [3],[4],[6] | |
Equity | Milton | Engineered Products | |||||
Principal Amount / No. Shares (in shares) | 6,647 | [1],[2] | 6,647 | [3],[4] | |
Cost | 6,647,000 | [1],[2] | 6,647,000 | [3],[4] | |
Fair Value | 12,207,000 | [1],[2] | 9,286,000 | [3],[4] | |
Equity | Resolution Economics | Business Services | |||||
Principal Amount / No. Shares (in shares) | 7,166 | [1],[2] | 7,166 | [3],[4] | |
Cost | 7,129,000 | [1],[2] | 7,129,000 | [3],[4] | |
Fair Value | 12,974,000 | [1],[2] | $ 11,625,000 | [3],[4] | |
Equity | Vektek | Engineered Products | |||||
Principal Amount / No. Shares (in shares) | [3],[4],[6] | 56,928 | |||
Cost | [3],[4],[6] | 56,928,000 | |||
Fair Value | [3],[4],[6] | $ 56,928,000 | |||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company.[5]As of June 30, 2022, the Company owned a controlling interest in this portfolio company.[6]As of December 31, 2021, the Company owned a controlling interest in this portfolio company. |
CONDENSED CONSOLIDATED SCHEDU_2
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) (Parenthetical) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Percentage of Net Assets | 95.90% | 91.20% |
OTHER ASSETS IN EXCESS OF LIABILITIES (as a percent) | 4.10% | 8.80% |
NET ASSETS (as a percent) | 100% | 100% |
First lien | ||
Fair Value Percentage of Net Assets | 17.40% | 23.30% |
Second lien | ||
Fair Value Percentage of Net Assets | 12.90% | 7.20% |
Equity | ||
Fair Value Percentage of Net Assets | 65.60% | 60.70% |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | ||
Cost | $ 473,967 | [1],[2] | $ 387,754 | [3],[4] |
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | ||
Class FA | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 7,400 | 7,400 | ||
Common stock, shares issued (in shares) | 4,844 | 4,844 | ||
Common stock, shares outstanding (in shares) | 4,277 | 4,559 | ||
Class A | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660 | 94,660 | ||
Common stock, shares issued (in shares) | 1,806 | 1,486 | ||
Common stock, shares outstanding (in shares) | 1,762 | 1,461 | ||
Class T | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 558,620 | 558,620 | ||
Common stock, shares issued (in shares) | 2,013 | 1,654 | ||
Common stock, shares outstanding (in shares) | 1,943 | 1,609 | ||
Class D | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660 | 94,660 | ||
Common stock, shares issued (in shares) | 1,391 | 1,020 | ||
Common stock, shares outstanding (in shares) | 1,367 | 1,009 | ||
Class I | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660 | 94,660 | ||
Common stock, shares issued (in shares) | 7,206 | 5,519 | ||
Common stock, shares outstanding (in shares) | 6,924 | 5,410 | ||
Class S | ||||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000 | 100,000 | ||
Common stock, shares issued (in shares) | 1,770 | 1,770 | ||
Common stock, shares outstanding (in shares) | 1,765 | 1,766 | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
Principal Business and Organiza
Principal Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal Business and Organization | Principal Business and Organization CNL Strategic Capital, LLC (the “Company”) is a limited liability company that primarily seeks to acquire and grow durable, middle-market U.S. businesses. The Company is externally managed by CNL Strategic Capital Management, LLC (the “Manager”) and sub-managed by Levine Leichtman Strategic Capital, LLC (the “Sub-Manager”). The Manager is responsible for the overall management of the Company’s activities and the Sub-Manager is responsible for the day-to-day management of the Company’s assets. Each of the Manager and the Sub-Manager are registered as an investment adviser under the Investment Advisers Act of 1940, as amended. The Company conducts and intends to continue its operations so that the Company and each of its subsidiaries do not fall within, or are excluded from, the definition of an “investment company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company intends to target businesses that are highly cash flow generative, with annual revenues primarily between $15 million and $250 million and whose management teams seek an ownership stake in the company. The Company’s business strategy is to acquire controlling equity interests in combination with debt positions and in doing so, provide long-term capital appreciation and current income while protecting invested capital. The Company seeks to structure its investments with limited, if any, third-party senior leverage. The Company intends for a significant majority of its total assets to be comprised of long-term controlling equity interests and debt positions in the businesses it acquires. In addition and to a lesser extent, the Company may acquire other debt and minority equity positions, which may include acquiring debt in the secondary market and minority equity interests in combination with other funds managed by the Sub-Manager from co-investments with other partnerships managed by the Sub-Manager or their affiliates. The Company expects that these positions will comprise a minority of its total assets. The Company commenced its initial public offering of up to $1.1 billion of its limited liability company interests (“shares”) on March 7, 2018 (the “Initial Public Offering”), which included up to $100.0 million of shares being offered through its distribution reinvestment plan, pursuant to a registration statement on Form S-1, as amended (the “Initial Registration Statement”). On November 1, 2021, the Company commenced a follow-on public offering of up to $1.1 billion of shares (the “Follow-On Public Offering” and together with the Initial Public Offering, the “Public Offerings”), which included up to $100.0 million of shares pursuant to a registration statement on Form S-1 (the “Registration Statement”) filed with the Securities and Exchange Commission (the “SEC”). Upon commencement of the Follow-On Public Offering, the Initial Registration Statement was deemed terminated. Through the Follow-On Public Offering, the Company is offering, in any combination, four classes of shares: Class A shares, Class T shares, Class D shares and Class I shares (collectively, the “Non-founder shares”). There are differing selling fees and commissions and dealer manager fees for each share class. The Company also pays distribution and shareholder servicing fees, subject to certain limits, on the Class T and Class D shares sold in the Follow-On Public Offering (excluding sales pursuant to its distributions investment plan). See Note 7. “Capital Transactions” Note 13. “Subsequent Events” |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained in the Financial Accounting Standards Board Accounting Standards Codification (the “Codification” or “ASC”), which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties. In the opinion of management, the condensed consolidated financial statements reflect all adjustments that are of a normal recurring nature and necessary for the fair presentation of financial results as of and for the periods presented. Although the Company is organized and intends to conduct its business in a manner so that it is not required to register as an investment company under the Investment Company Act, its financial statements are prepared using the specialized accounting principles of ASC Topic 946, “Financial Services—Investment Companies” (“ASC Topic 946”) to utilize investment company accounting. The Company obtains funds through the issuance of equity interests to multiple unrelated investors, and provides such investors with investment management services. Further, the Company’s business strategy is to acquire interests in middle-market U.S. businesses to provide current income and long term capital appreciation, while protecting invested capital. Overall, the Company believes that the use of investment company accounting on a fair value basis is consistent with the management of its assets on a fair value basis, and makes the Company’s financial statements more useful to investors and other financial statement users in facilitating the evaluation of an investment in the Company as compared to other investment products in the marketplace. Principles of Consolidation Under ASC Topic 946 the Company is precluded from consolidating any entity other than an investment company or an operating company which provides substantially all of its services to benefit the Company. In accordance therewith, the Company has consolidated the results of its wholly owned subsidiaries which provide services to the Company in its condensed consolidated financial statements. However, the Company has not consolidated the results of its subsidiaries in which the Company holds debt and equity investments. All intercompany account balances and transactions have been eliminated in consolidation. Risks and Uncertainties The novel coronavirus (“COVID-19”) pandemic has continued to adversely impact the U.S. and global economies. The U.S. financial markets have experienced disruption and constrained credit conditions within certain sectors. Although more normalized activities have resumed, at this time the Company cannot predict the full extent of the impacts of the COVID-19 pandemic on the Company and its portfolio companies and the COVID-19 pandemic could have a delayed adverse impact on the Company's financial results. Additionally, during the second quarter of 2022, the U.S. economy experienced rising interest rates and record inflationary pressures due in part to global supply chain issues, a rise in energy prices, the continuing effects of fiscal and monetary policies adopted by governments in response to the COVID-19 pandemic and continued strong consumer demand as economies reopen from restrictions related to the pandemic. The Company will continue to monitor the pandemic's effects on a daily basis and will adjust its operations as necessary. The full impact of COVID-19 on the financial and credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the pandemic and the spread and severity of new COVID-19 variants, (ii) the effectiveness of the United States public health response, including the efficacy of the vaccines or other remedies and the disparities in vaccination rates and vaccination hesitancy, (iii) the pandemic’s impact on the U.S. and global economies, including record inflationary pressures and global supply chain issues, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, and (vi) the negative impact on its portfolio companies. Cash Cash consists of demand deposits at commercial banks. Demand deposits are carried at cost plus accrued interest, which approximates fair value. The Company deposits its cash with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law. Use of Estimates Management makes estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the financial statements in conformity with generally accepted accounting principles. The uncertainty of future events, including the impact of the COVID-19 pandemic, may materially impact the accuracy of the estimates and assumptions used in the financial statements and related footnotes and actual results could differ from those estimates. Valuation of Investments ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) clarifies that the fair value is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. ASC Topic 820 provides a consistent definition of fair value which focuses on exit price and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. In addition, ASC Topic 820 provides a framework for measuring fair value and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels of valuation hierarchy established by ASC Topic 820 are defined as follows: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market is defined as a market in which transactions for the asset or liability occur with sufficient pricing information on an ongoing basis. Publicly listed equity and debt securities and listed derivatives that are traded on major securities exchanges and publicly traded equity options are generally valued using Level 1 inputs. If a price for an asset cannot be determined based upon this established process, it shall then be valued as a Level 2 or Level 3 asset. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: (i) quoted prices for similar assets in active markets; (ii) quoted prices for identical or similar assets in markets that are not active; (iii) inputs that are derived principally from or corroborated by observable market data by correlation or other means; and (iv) inputs other than quoted prices that are observable for the assets. Fixed income and derivative assets, where there is an observable secondary trading market and through which pricing inputs are available through pricing services or broker quotes, are generally valued using Level 2 inputs. If a price for an asset cannot be determined based upon this established process, it shall then be valued as a Level 3 asset. Level 3 – Unobservable inputs for the asset or liability being valued. Unobservable inputs will be used to measure fair value to the extent that observable inputs are not available and such inputs will be based on the best information available in the circumstances, which under certain circumstances might include the Manager’s or the Sub-Manager’s own data. Level 3 inputs may include, but are not limited to, capitalization and discount rates and earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. Certain assets may be valued based upon estimated value of underlying collateral and include adjustments deemed necessary for estimates of costs to obtain control and liquidate available collateral. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence. Debt and equity investments in private companies or assets valued using the market or income approach are generally valued using Level 3 inputs. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls will be determined based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each asset. The Company’s board of directors is responsible for determining in good faith the fair value of the Company’s investments in accordance with the valuation policy and procedures approved by the board of directors, based on, among other factors, the input of the Manager, the Sub-Manager, its audit committee, and the independent third-party valuation firm. The determination of the fair value of the Company’s assets requires judgment, especially with respect to assets for which market prices are not available. For most of the Company’s assets, market prices will not be available. Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, the fair value of the assets may differ significantly from the values that would have been used had a readily available market value existed for such assets, and the differences could be material. Because the calculation of the Company’s net asset value is based, in part, on the fair value of its assets, the Company’s calculation of net asset value is subjective and could be adversely affected if the determinations regarding the fair value of its assets were materially higher than the values that the Company ultimately realizes upon the disposal of such assets. Furthermore, through the valuation process, the Company’s board of directors may determine that the fair value of the Company’s assets differs materially from the values that were provided by the independent valuation firm. The Company may also look to private merger and acquisition statistics, public trading multiples adjusted for illiquidity and other factors, valuations implied by third-party investments in the businesses or industry practices in determining fair value. The Company may also consider the size and scope of a business and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments The Company will measure realized gains or losses as the difference between the net proceeds from the sale, repayment, or disposal of an asset and the adjusted cost basis of the asset, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation on investments will reflect the change in asset values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. Income Recognition Interest Income – Interest income is recorded on an accrual basis to the extent that the Company expects to collect such amounts. The Company does not accrue as a receivable interest on loans and debt securities for accounting purposes if it has reason to doubt its ability to collect such interest. The Company places loans on non-accrual status when principal and interest are past due 90 days or more or when there is a reasonable doubt that the Company will collect principal or interest. Accrued interest is generally reversed when a loan is placed on non-accrual. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are generally restored to accrual status when past due principal and interest amounts are paid and, in management’s judgment, are likely to remain current. Since inception, the Company has not experienced any past due payments on any of its loan investments. Dividend Income – Dividend income is recorded on the record date for privately issued securities, but excludes any portion of distributions that are treated as a return of capital. Each distribution received from an equity investment is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments as dividend income unless there are sufficient current or accumulated earnings prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. Paid in Capital The Company records the proceeds from the sale of its common shares on a net basis to (i) capital stock and (ii) paid in capital in excess of par value, excluding upfront selling commissions and dealer manager fees. Share Repurchases Under the Company’s share repurchase program (the “Share Repurchase Program”), a shareholder’s shares are deemed to have been redeemed as of the repurchase date, which will generally be the last business day of the month of a calendar quarter. Shares redeemed are retired and not available for reissue. See Note 7. “Capital Transactions” Organization and Offering Expenses Organization expenses are expensed on the Company’s condensed consolidated statements of operations as incurred. Offering expenses, which consist of amounts incurred for items such as legal, accounting, regulatory and printing work incurred related to the Public Offerings, are capitalized on the Company’s condensed consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s condensed consolidated statements of operations over the lesser of the offering period or 12 months; however, the end of the deferral period will not exceed 12 months from the date the offering expense is incurred by the Manager and the Sub-Manager. Distribution and Shareholder Servicing Fees The Company pays distribution and shareholder servicing fees with respect to its Class T and Class D shares, as described further below in Note 5. “Related Party Transactions.” Deferred Financing Costs Financing costs, including upfront fees, commitment fees and legal fees related to borrowings (as further described in Note 8. “Borrowings” Allocation of Profit and Loss Class-specific expenses, including base management fees, total return incentive fees, organization and offering expenses, distribution and shareholder servicing fees, expense support (reimbursement) and certain transfer agent fees, are allocated to each share class of common shares in accordance with how such expenses are attributable to the particular share classes, as determined by the Company’s board of directors, the Company’s governing agreements and, in certain cases, expenses which are specifically identifiable to a share class. Income and expenses which are not class-specific are allocated monthly pro rata among the share classes based on shares outstanding as of the end of the month. Earnings per Share and Net Investment Income per Share Earnings per share and net investment income per share are calculated for each share class of common shares based upon the weighted average number of common shares outstanding during the reporting period. Distributions The Company’s board of directors has declared and intends to continue to declare distributions based on monthly record dates and such distributions are expected to be paid on a monthly basis one month in arrears. Distributions are made on all classes of the Company’s shares at the same time. The Company has adopted a distribution reinvestment plan that provides for reinvestment of distributions on behalf of shareholders. Non-founder shareholders participating in the distribution reinvestment plan will have their cash distribution automatically reinvested in additional shares having the same class designation as the class of shares to which such distributions are attributable at a price per share equivalent to the then current public offering price, net of up-front selling commissions and dealer manager fees. Cash distributions paid on Class FA shares participating in the distribution reinvestment plan are reinvested in additional Class A shares. Class S shares do not participate in the distribution reinvestment plan. Reclassifications Certain reclassifications have been made to the condensed consolidated statement of cash flows for the six months ended June 30, 2021 to conform with the current year presentation. There was no impact on the Company’s consolidated net cash used in operations or net cash provided by financing activities as a result of the reclassifications. Income Taxes Under GAAP, the Company is subject to the provisions of ASC 740, “Income Taxes.” The Company follows the authoritative guidance on accounting for uncertainty in income taxes and concluded it has no material uncertain tax positions to be recognized at this time. If applicable, the Company will recognize interest and penalties related to unrecognized tax benefits as income tax expense in the Company’s condensed consolidated statements of operations. The Company has operated and expects to continue to operate so that it will qualify to be treated for U.S. federal income tax purposes as a partnership, and not as an association or a publicly traded partnership taxable as a corporation. Generally, the Company will not be taxable as a corporation if 90% or more of its gross income for each taxable year consists of “qualifying income” (generally, interest (other than interest generated from a financial business), dividends, real property rents, gain from the sale of assets that produce qualifying income and certain other items) and the Company is not required to register under the Investment Company Act (the “qualifying income exception”). As a partnership, the individual shareholders are responsible for their proportionate share of the Company’s taxable income. Note 9. “Income Taxes” |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company made an additional equity investment in ATA of approximately $1.1 million in February 2022 and an additional equity investment of approximately $4.0 million in Clarion in June 2022. In May 2022, the Company, through a wholly-owned subsidiary, acquired an approximate 84% equity ownership interest in Vektek Holdings, LLC (“Vektek”) for consideration of approximately $56.9 million, subject to certain post-closing adjustments (the “Acquisition”). Additionally, on the closing date of the Acquisition, the Company, through a wholly-owned subsidiary, made a debt investment of approximately $24.4 million in the form of a senior secured note issued by Vektek. The Company’s investment portfolio is summarized as follows as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, 2022 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 101,600 $ 101,600 18.2 % 17.4 % Second lien 75,342 75,342 13.4 12.9 Total senior secured debt 176,942 176,942 31.6 30.3 Equity 297,025 382,552 68.4 65.6 Total investments $ 473,967 $ 559,494 100.0 % 95.9 % As of December 31, 2021 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 116,600 $ 116,600 25.6 % 23.3 % Second lien 35,942 35,942 7.9 7.2 Total senior secured debt 152,542 152,542 33.5 30.5 Equity 235,212 303,455 66.5 60.7 Total investments $ 387,754 $ 455,997 100.0 % 91.2 % Collectively, the Company’s debt investments accrue interest at a weighted average per annum rate of 15.2% and have weighted average remaining years to maturity of 5.0 years as of June 30, 2022. The note purchase agreements contain customary covenants and events of default. As of June 30, 2022, all of the Company’s portfolio companies were in compliance with their respective debt covenants. As of June 30, 2022 and December 31, 2021, none of the Company’s debt investments were on non-accrual status. The industry dispersion of the Company’s investment portfolio as a percentage of total fair value of the Company’s investments as of June 30, 2022 and December 31, 2021 were as follows: Industry June 30, 2022 December 31, 2021 Engineered Products 17.3 % 2.8 % Real Estate Services 14.2 17.2 Commercial and Professional Services 13.5 15.8 Visual Safety Solutions 13.9 15.2 Information Services and Advisory Solutions 10.2 12.1 Healthcare Supplies 9.3 10.6 Sanitation Products 8.7 11.1 Hobby Goods and Supplies 6.9 8.7 Business Services 6.0 6.5 Total 100.0 % 100.0 % All investment positions held at June 30, 2022 and December 31, 2021 were denominated in U.S. dollars and located in the United States based on their country of domicile. Summarized Portfolio Company Financial Information The following tables present unaudited summarized operating data for the Company’s portfolio companies in which it owned a controlling equity interest during the quarter and six months ended June 30, 2022 and 2021, and summarized balance sheet data as of June 30, 2022 (unaudited) and December 31, 2021, as applicable (in thousands): Summarized Operating Data Quarter Ended June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek (1) Revenues $ 11,882 $ 7,642 $ 3,895 $ 8,260 $ 17,214 $ 8,047 $ 2,814 $ 5,415 Expenses (10,404) (6,205) (3,359) (8,059) (15,607) (6,883) (3,210) (6,552) Income before taxes 1,478 1,437 536 201 1,607 1,164 (396) (1,137) Income tax expense (352) (410) (35) (128) — (285) 115 (8) Consolidated net income 1,126 1,027 501 73 1,607 879 (281) (1,145) Net loss attributable to non-controlling interests (6) — — — — — — — Net income $ 1,120 $ 1,027 $ 501 $ 73 $ 1,607 $ 879 $ (281) $ (1,145) Quarter Ended June 30, 2021 Lawn Doctor Polyform Roundtables HSH ATA Revenues $ 10,995 $ 4,732 $ 3,368 $ 8,167 $ 20,033 Expenses (9,478) (4,400) (3,104) (7,622) (16,049) Income before taxes 1,517 332 264 545 3,984 Income tax expense (388) (95) (57) (120) — Consolidated net income 1,129 237 207 425 3,984 Net loss attributable to non-controlling interests 13 — — — — Net income $ 1,142 $ 237 $ 207 $ 425 $ 3,984 Six Months Ended June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek (1) Revenues $ 21,546 $ 13,465 $ 7,438 $ 17,866 $ 31,372 $ 13,446 $ 6,433 $ 5,415 Expenses (19,272) (11,596) (7,083) (16,826) (31,181) (12,707) (6,043) (6,552) Income (loss) before taxes 2,274 1,869 355 1,040 191 739 390 (1,137) Income tax (expense) benefit (555) (534) 8 (313) — (181) (113) (8) Consolidated net income (loss) 1,719 1,335 363 727 191 558 277 (1,145) Net loss attributable to non-controlling interests 33 — — — — — — — Net income (loss) $ 1,752 $ 1,335 $ 363 $ 727 $ 191 $ 558 $ 277 $ (1,145) Six Months Ended June 30, 2021 Lawn Doctor Polyform Roundtables HSH ATA (2) Revenues $ 19,789 $ 11,525 $ 6,220 $ 16,130 $ 20,033 Expenses (17,456) (9,712) (6,075) (15,157) (16,049) Income before taxes 2,333 1,813 145 973 3,984 Income tax expense (612) (518) (31) (214) — Consolidated net income 1,721 1,295 114 759 3,984 Net loss attributable to non-controlling interests 88 — — — — Net income $ 1,809 $ 1,295 $ 114 $ 759 $ 3,984 Summarized Balance Sheet Data As of June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek Current assets $ 10,736 $ 11,484 $ 8,166 $ 12,868 $ 7,308 $ 13,412 $ 3,122 $ 13,106 Non-current assets 90,316 28,093 60,799 37,651 90,854 35,829 70,282 104,828 Current liabilities 6,730 2,419 10,326 4,698 6,798 4,954 406 2,386 Non-current liabilities 63,461 21,490 19,777 28,643 44,262 15,393 22,500 49,191 Non-controlling interests (533) — — — — — — — Stockholders’ equity 31,394 15,668 38,862 17,178 47,102 28,894 50,498 66,357 Ownership percentage (3) 61 % 87 % 81 % 75 % 75 % 90 % 98 % 84 % As of December 31, 2021 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Current assets $ 13,926 $ 9,940 $ 2,043 $ 14,260 $ 10,029 $ 13,177 $ 3,084 Non-current assets 92,309 28,948 61,955 39,653 90,510 40,311 66,182 Current liabilities 7,961 2,290 4,738 7,341 9,002 4,159 420 Non-current liabilities 63,576 21,557 19,771 28,536 43,458 15,711 22,500 Non-controlling interests (500) — — — — — — Stockholders’ equity 35,198 15,041 39,489 18,036 48,079 33,618 46,346 Ownership percentage (3) 61 % 87 % 81 % 75 % 75 % 90 % 99 % FOOTNOTES: (1) Results presented for the quarter and six months ended June 30, 2022 are for the period from May 6, 2022 (the date the Company acquired its investments in Vektek) to June 30, 2022. (2) Results presented for the six months ended June 30, 2021 are for the period from April 1, 2021 (the date the Company acquired its investments in ATA) to June 30, 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s investments were categorized in the fair value hierarchy described in Note 2. “Significant Accounting Policies,” As of June 30, 2022 As of December 31, 2021 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Senior Debt $ — $ — $ 176,942 $ 176,942 $ — $ — $ 152,542 $ 152,542 Equity — — 382,552 382,552 — — 303,455 303,455 Total investments $ — $ — $ 559,494 $ 559,494 $ — $ — $ 455,997 $ 455,997 The ranges of unobservable inputs used in the fair value measurement of the Company’s Level 3 investments as of June 30, 2022 and December 31, 2021 were as follows (in thousands): June 30, 2022 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 152,542 Discounted Cash Flow Discount Rate 9.5% – 13.5% (11.4%) 7.0x – 14.6x (9.5x) 6.5x – 12.5x (10.9x) Decrease 24,400 Transaction Precedent Transaction Price N/A N/A Equity 325,624 Discounted Cash Flow Discount Rate 9.5% – 13.5% (11.4%) 7.0x – 14.6x (9.5x) 6.5x – 12.5x (10.9x) Decrease 56,928 Transaction Precedent Transaction Price N/A N/A Total $ 559,494 December 31, 2021 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 130,042 Discounted Cash Flow Discount Rate 8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x) Decrease 22,500 Transaction Precedent Transaction Price N/A N/A Equity 256,695 Discounted Cash Flow Discount Rate 8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x) Decrease 46,760 Transaction Precedent Transaction Price N/A N/A Total $ 455,997 FOOTNOTES: (1) Discount rates are relative to the enterprise value of the portfolio companies and are not the market yields on the associated debt investments. Unobservable inputs were weighted by the relative fair value of the investments. (2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. The preceding tables include the significant unobservable inputs as they relate to the Company’s determination of fair values for its investments categorized within Level 3 as of June 30, 2022 and December 31, 2021. In addition to the techniques and inputs noted in the tables above, according to the Company’s valuation policy, the Company may also use other valuation techniques and methodologies when determining the fair value estimates for the Company’s investments. Any significant increases or decreases in the unobservable inputs would result in significant increases or decreases in the fair value of the Company’s investments. Investments that do not have a readily available market value are valued utilizing a market approach, an income approach (i.e. discounted cash flow approach), a transaction approach, or a combination of such approaches, as appropriate. The market approach uses prices, including third party indicative broker quotes, and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The transaction approach uses pricing indications derived from recent precedent merger and acquisition transactions involving comparable target companies. The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) that are discounted based on a required or expected discount rate to derive a present value amount range. The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors the Company may take into account to determine the fair value of its investments include, as relevant: available current market data, including an assessment of the credit quality of the security’s issuer, relevant and applicable market trading and transaction comparables, applicable market yields and multiples, illiquidity discounts, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, data derived from merger and acquisition activities for comparable companies, and enterprise values, among other factors. The following tables provide a reconciliation of investments for which Level 3 inputs were used in determining fair value for the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 Senior Debt Equity Total Fair value balance as of January 1, 2022 $ 152,542 $ 303,455 $ 455,997 Additions 24,400 62,050 86,450 Return of capital (1) — (237) (237) Net change in unrealized appreciation (2) — 17,284 17,284 Fair value balance as of June 30, 2022 $ 176,942 $ 382,552 $ 559,494 Change in net unrealized appreciation on investments held as of June 30, 2022 (2) $ — $ 17,284 $ 17,284 Six Months Ended June 30, 2021 Senior Debt Equity Total Fair value balance as of January 1, 2021 $ 78,042 $ 153,155 $ 231,197 Additions 37,000 36,000 73,000 Net change in unrealized appreciation (2) — 28,787 28,787 Fair value balance as of June 30, 2021 $ 115,042 $ 217,942 $ 332,984 Change in net unrealized appreciation on investments held as of June 30, 2021 (2) $ — $ 28,787 $ 28,787 FOOTNOTES: (1) Represents portion of distributions received which were accounted for as a return of capital. See Note 2. “Significant Accounting Policies” for information on the accounting treatment of distributions from portfolio companies. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Manager and Sub-Manager, along with certain affiliates of the Manager or Sub-Manager, receive fees and compensation in connection with the Public Offerings, as well as the acquisition, management and sale of the assets of the Company, as follows: Managing Dealer Commissions — The Company pays CNL Securities Corp. (the “Managing Dealer”), an affiliate of the Manager, a selling commission up to 6.00% of the sale price for each Class A share and 3.00% of the sale price for each Class T share sold in the Follow-On Public Offering (excluding sales pursuant to the Company’s distribution reinvestment plan). The Managing Dealer may reallow all or a portion of the selling commissions to participating broker-dealers. Dealer Manager Fee — The Company pays the Managing Dealer a dealer manager fee of up to 2.50% of the price of each Class A share and 1.75% of the price of each Class T share sold in the Follow-On Public Offering (excluding sales pursuant to the Company’s distribution reinvestment plan). The Managing Dealer may reallow all or a portion of such dealer manager fees to participating broker-dealers. Distribution and Shareholder Servicing Fee — The Company pays the Managing Dealer a distribution and shareholder servicing fee, subject to certain limits, with respect to its Class T and Class D shares sold in the Public Offerings (excluding Class T shares and Class D shares sold through the distribution reinvestment plan and those received as share distributions) in an annual amount equal to 1.00% and 0.50%, respectively, of its current net asset value per share, as disclosed in its periodic or current reports, payable on a monthly basis. The distribution and shareholder servicing fee accrues daily and is paid monthly in arrears. The Managing Dealer may reallow all or a portion of the distribution and shareholder servicing fee to the broker-dealer who sold the Class T or Class D shares or, if applicable, to a servicing broker-dealer of the Class T or Class D shares or a fund supermarket platform featuring Class D shares, so long as the broker-dealer or financial intermediary has entered into a contractual agreement with the Managing Dealer that provides for such reallowance. The distribution and shareholder servicing fee is an ongoing fee that is allocated among all Class T and Class D shares, respectively, and is not paid at the time of purchase. Manager and/or Sub-Manager Organization and Offering Costs — The Company reimburses the Manager and the Sub-Manager, along with their respective affiliates, for the organization and offering costs (other than selling commissions and dealer manager fees) they have incurred on the Company’s behalf only to the extent that such expenses do not exceed 1.5% of the cumulative gross proceeds from the Public Offerings. The Company incurred an obligation to reimburse the Manager and Sub-Manager for organization and offering costs based on actual amounts raised through the Public Offerings of approximately $0.7 million during each of the quarters ended June 30, 2022 and 2021, and approximately $1.2 million and $1.1 million during the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the Manager and the Sub-Manager had incurred approximately $3.3 million of organization and offering costs on behalf of the Company in connection with the Public Offerings in excess of the reimbursement limitation. These costs will be recognized by the Company in future periods as the Company receives future offering proceeds from the Follow-On Public Offering to the extent such costs are within the 1.5% limitation. Base Management Fee to Manager and Sub-Manager — The Company pays each of the Manager and the Sub-Manager 50% of the total base management fee for their services under the Management Agreement and the Sub-Management Agreement, subject to any reduction or deferral of any such fees pursuant to the terms of the Expense Support and Conditional Reimbursement Agreement described below. The Company incurred base management fees of approximately $2.1 million and $1.2 million during the quarters ended June 30, 2022 and 2021, respectively, and approximately $4.0 million and $2.0 million during the six months ended June 30, 2022 and 2021, respectively. The base management fee is calculated for each share class at an annual rate of (i) for the Non-founder shares of a particular class, 2% of the product of (x) the Company’s average gross assets and (y) the ratio of Non-founder share Average Adjusted Capital (as defined below), for a particular class to total Average Adjusted Capital and (ii) for the Founder shares of a particular class, 1% of the product of (x) the Company’s average gross assets and (y) the ratio of outstanding Founder share Average Adjusted Capital for a particular class to total Average Adjusted Capital, in each case excluding cash, and is payable monthly in arrears. The management fee for a certain month is calculated based on the average value of the Company’s gross assets at the end of that month and the immediately preceding calendar month. The determination of gross assets reflects changes in the fair market value of the Company’s assets, which does not necessarily equal their notional value, reflecting both realized and unrealized capital appreciation or depreciation. The base management fee may be reduced or deferred by the Manager and the Sub-Manager under the Management Agreement and the Expense Support and Conditional Reimbursement Agreement described below. For purposes of this calculation, “Average Adjusted Capital” for an applicable class is computed on the daily Adjusted Capital for such class for the actual number of days in such applicable month. “Adjusted Capital” is defined as cumulative proceeds generated from sales of the Company’s shares of a particular share class (including proceeds from the sale of shares pursuant to the distribution reinvestment plan, if any), net of upfront selling commissions and dealer manager fees (“sales load”), if any, reduced for the full amounts paid for share repurchases pursuant to any share repurchase program, if any, for such class. Total Return Incentive Fee on Income to the Manager and Sub-Manager — The Company also pays each of the Manager and the Sub-Manager 50% of the total return incentive fee for their services under the Management Agreement and the Sub-Management Agreement. The Company recorded total return incentive fees of approximately $1.7 million and $2.6 million during the quarters ended June 30, 2022 and 2021, respectively, and approximately $4.6 million and $4.9 million during the six months ended June 30, 2022 and 2021, respectively. The total return incentive fee is based on the Total Return to Shareholders (as defined below) for each share class in any calendar year, payable annually in arrears. The Company accrues (but does not pay) the total return incentive fee on a quarterly basis, to the extent that it is earned, and performs a final reconciliation and makes required payments at completion of each calendar year. The total return incentive fee may be reduced or deferred by the Manager and the Sub-Manager under the Management Agreement and the Expense Support and Conditional Reimbursement Agreement described below. For purposes of this calculation, “Total Return to Shareholders” for any calendar quarter is calculated for each share class as the change in the net asset value for such share class plus total distributions for such share class calculated based on the Average Adjusted Capital for such class as of such calendar quarter end. The terms “Total Return to Non-founder Shareholders” and “Total Return to Founder Shareholders” means the Total Return to Shareholders specifically attributable to each particular share class of Non-founder shares or Founder shares, as applicable. The total return incentive fee for each share class is calculated as follows: • No total return incentive fee will be payable in any calendar year in which the annual Total Return to Shareholders of a particular share class does not exceed 7% (the “Annual Preferred Return”). • As it relates to the Non-founder shares, all of the Total Return to Shareholders with respect to each particular share class of Non-founder shares, if any, that exceeds the annual preferred return, but is less than or equal to 8.75%, or the “Non-founder breakpoint,” in any calendar year, will be payable to the Manager (“Non-founder Catch Up”). The Non-Founder Catch Up is intended to provide an incentive fee of 20% of the Total Return to Non-founder Shareholders of a particular share class once the Total Return to Non-founder Shareholders of a particular class exceeds 8.75% in any calendar year. • As it relates to Founder shares, all of the Total Return to Founder Shareholders with respect to each particular share class of Founder shares, if any, that exceeds the annual preferred return, but is less than or equal to 7.777%, or the “founder breakpoint,” in any calendar year, will be payable to the Manager (“Founder Catch Up”). The Founder Catch Up is intended to provide an incentive fee of 10% of the Total Return to Founder Shareholders of a particular share class once the Total Return to Founder Shareholders of a particular class exceeds 7.777% in any calendar year. • For any quarter in which the Total Return to Shareholders of a particular share class exceeds the relevant breakpoint, the total return incentive fee of a particular share class shall equal, for Non-founder shares, 20% of the Total Return to Non-founder Shareholders of a particular class, and for Founder shares, 10% of the Total Return to Founder Shareholders of a particular class, in each case because the annual preferred and relevant catch ups will have been achieved. • For purposes of calculating the Total Return to Shareholders, the change in the Company’s net asset value is subject to a High Water Mark. The “High Water Mark” is equal to the highest year-end net asset value, for each share class of the Company since inception, adjusted for any special distributions resulting from the sale of the Company’s assets, provided such adjustment is approved by the Company’s board of directors. If, as of each calendar year end, the Company’s net asset value for the applicable share class is (A) above the High Water Mark, then, for such calendar year, the Total Return to Shareholders calculation will include the increase in the Company’s net asset value for such share class in excess of the High Water Mark, and (B) if the Company’s net asset value for the applicable share class is below the High Water Mark, for such calendar year, (i) any increase in the Company’s per share net asset value will be disregarded in the calculation of Total Return to Shareholders for such share class while (ii) any decrease in the Company’s per share net asset value will be included the calculation of Total Return to Shareholders for such share class. For the years ended December 31, 2022 and 2021, the High Water Marks were as follows: For the year ended: Class FA Class A Class T Class D Class I Class S December 31, 2022 $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 December 31, 2021 29.97 28.76 28.67 28.24 29.06 30.08 For purposes of this calculation, “Average Adjusted Capital” for an applicable class is computed on the daily Adjusted Capital for such class for the actual number of days in such applicable quarter. The annual preferred return of 7% and the relevant breakpoints of 8.75% and 7.777%, respectively, are also adjusted for the actual number of days in each calendar year, measured as of each calendar quarter end. Reimbursement to Manager and Sub-Manager for Operating Expenses and Pursuit Costs — The Company reimburses the Manager and the Sub-Manager and their respective affiliates for certain third party operating expenses and pursuit costs incurred in connection with their provision of services to the Company, including fees, costs, expenses, liabilities and obligations relating to the Company’s activities, acquisitions, dispositions, financings and business, subject to the terms of the Company’s limited liability company agreement, the Management Agreement, the Sub-Management Agreement and the Expense Support and Conditional Reimbursement Agreement (as defined below). The Company does not reimburse the Manager and Sub-Manager for administrative services performed by the Manager or Sub-Manager for the benefit of the Company. Expense Support and Conditional Reimbursement Agreement — The Company entered into an expense support and conditional reimbursement agreement with the Manager and the Sub-Manager (the “Expense Support and Conditional Reimbursement Agreement”), which became effective on February 7, 2018, pursuant to which each of the Manager and the Sub-Manager agrees to reduce the payment of base management fees, total return incentive fees and the reimbursements of reimbursable expenses due to the Manager and the Sub-Manager under the Management Agreement and the Sub-Management Agreement, as applicable, to the extent that the Company’s annual regular cash distributions exceed its annual net income (with certain adjustments). The amount of such expense support is equal to the annual (calendar year) excess, if any, of (a) the distributions (as defined in the Expense Support and Conditional Reimbursement Agreement) declared and paid (net of the Company’s distribution reinvestment plan) to shareholders minus (b) the available operating funds, as defined in the Expense Support and Conditional Reimbursement Agreement (the “Expense Support”). The Expense Support amount is borne equally by the Manager and the Sub-Manager and is calculated as of the last business day of the calendar year. Until the Expense Support and Conditional Reimbursement Agreement is terminated, the Manager and Sub-Manager shall equally conditionally reduce the payment of fees and reimbursements of reimbursable expenses in an amount equal to the conditional waiver amount (as defined in and subject to limitations described in the Expense Support and Conditional Reimbursement Agreement). The term of the Expense Support and Conditional Reimbursement Agreement has the same initial term and renewal terms as the Management Agreement or the Sub-Management Agreement, as applicable, to the Manager or the Sub-Manager. Expense support is paid by the Manager and Sub-Manager annually in arrears. If, on the last business day of the calendar year, the annual (calendar year) year-to-date available operating funds exceeds the sum of the annual (calendar year) year-to-date distributions paid per share class (the “Excess Operating Funds”), the Company uses such Excess Operating Funds to pay the Manager and the Sub-Manager all or a portion of the outstanding unreimbursed Expense Support amounts for each share class, as applicable, subject to certain conditions (the “Conditional Reimbursements”) as described further in the Expense Support and Conditional Reimbursement Agreement. The Company’s obligation to make Conditional Reimbursements shall automatically terminate and be of no further effect three years following the date which the Expense Support amount was provided and to which such Conditional Reimbursement relates, as described further in the Expense Support and Conditional Reimbursement Agreement. Since inception, the Company has received cumulative Expense Support of approximately $5.1 million. The Company recorded Expense Support due from the Manager and Sub-Manager of approximately $1.8 million and $4.5 million during the quarter and six months ended June 30, 2021, respectively, which was ultimately reversed as the Company reimbursed approximately $1.8 million of Expense Support to the Manager and Sub-Manager for the year ended December 31, 2021. As of June 30, 2022, the remaining amount of Expense Support collected from the Manager and Sub-Manager subject to reimbursement was approximately $3.2 million. The Company recorded reimbursement of Expense Support in the condensed consolidated statements of operations of approximately $0.7 million and $2.4 million during the quarter and six months ended June 30, 2022, respectively. The following table summarizes Expense Support received (excluding years for which reimbursement eligibility has expired), Expense Support reimbursed and the remaining Expense Support that may become reimbursable, subject to the conditions of reimbursement defined in the Expense Support and Conditional Reimbursement Agreement, as of June 30, 2022 (in thousands): For the Year Ended Amount of Expense Support Received Expense Support Reimbursed (1) Expense Support Subject to Reimbursement (2) Reimbursement Eligibility Expiration December 31, 2019 $ 1,372 $ (970) $ 402 March 31, 2023 December 31, 2020 3,301 (509) 2,792 March 31, 2024 $ 4,673 $ (1,479) $ 3,194 FOOTNOTES: (1) Represents Expense Support reimbursed to the Manager and Sub-Manager accrued as of December 31, 2021 and paid during the six months ended June 30, 2022, related to Expense Support received for the years ended December 31, 2020 and 2019. The Company also reimbursed $(353) related to Expense Support received for the year ended December 31, 2018. (2) Represents remaining Expense Support that is subject to reimbursement, which is calculated by share class and subject to limitations as defined in the Expense Support and Conditional Reimbursement Agreement. During the six months ended June 30, 2022, management accrued reimbursement of expense support of $2,352. Management believes that Expense Support reimbursement payments by the Company to the Manager and Sub-Manager for unreimbursed Expense Support in excess of this accrual amount are not probable under the terms of the Expense Support and Conditional Reimbursement Agreement as of June 30, 2022. Distributions Individuals and entities affiliated with the Manager and Sub-Manager owned approximately 0.4 million and 0.6 million shares as of June 30, 2022 and 2021, respectively. These individuals and entities received distributions from the Company of approximately $0.1 million and $0.2 million during the quarters ended June 30, 2022 and 2021, respectively, and $0.2 million and $0.4 million during the six months ended June 30, 2022 and 2021, respectively. Related party fees and expenses incurred for the quarter and six months ended June 30, 2022 and 2021 are summarized below (in thousands): Quarter Ended June 30, Six Months Ended June 30, Related Party Source Agreement & Description 2022 2021 2022 2021 Managing Dealer Managing Dealer Agreement: Commissions $ 483 $ 288 $ 770 $ 542 Dealer manager fees 253 153 401 284 Distribution and shareholder servicing fees 180 79 339 143 Manager and Sub-Manager Management Agreement and Sub-Management Agreement: Organization and offering reimbursement (1)(2) 716 667 1,246 1,053 Base management fees (1) 2,129 1,156 3,992 1,990 Total return incentive fees (1) 1,741 2,577 4,633 4,870 Manager and Sub-Manager Expense Support and Conditional Reimbursement Agreement: Expense Support — (1,845) — (4,495) Reimbursement of Expense Support 722 — 2,352 — Manager Administrative Services Agreement: Reimbursement of third-party operating expenses (1) 35 28 57 56 Sub-Manager Sub-Management Agreement: Reimbursement of third-party pursuit costs (1)(3) 179 514 339 514 FOOTNOTES: (1) Expenses subject to Expense Support. (2) Organization reimbursements are expensed on the Company’s condensed consolidated statements of operations as incurred. Offering reimbursements are capitalized on the Company’s condensed consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s condensed consolidated statements of operations over the lesser of the offering period or 12 months. (3) Includes reimbursement of third-party fees incurred for investments that did not close, including fees and expenses associated with performing due diligence reviews. The following table presents amounts due to related parties as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Total return incentive fee $ 4,633 $ 7,283 Reimbursement of Expense Support 2,352 1,831 Base management fees 767 578 Organization and offering expenses 173 176 Distribution and shareholder servicing fees 62 53 Reimbursement of third-party operating expenses and pursuit costs 21 1 Total due to related parties $ 8,008 $ 9,922 |
Distributions
Distributions | 6 Months Ended |
Jun. 30, 2022 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Distributions | Distributions The Company’s board of directors declared distributions on a monthly basis in each of the six months ended June 30, 2022 and 2021 (six record dates). Declared distributions are paid and reinvested monthly in arrears. The following table reflects the total distributions declared during the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 2021 Distribution Period Distributions Declared (1) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested (2) Distributions Declared (1)(2) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested (2) First Quarter $ 4,928 $ 1,630 $ 3,298 $ 3,290 $ 789 $ 2,501 Second Quarter 5,259 1,819 3,440 3,618 972 2,646 $ 10,187 $ 3,449 $ 6,738 $ 6,908 $ 1,761 $ 5,147 FOOTNOTES: (1) The Company’s board of directors declared distributions per share on a monthly basis. See Note 12. “Financial Highlights” Record Date Period Class FA Class A Class T Class D Class I Class S January 1, 2022 - June 30, 2022 $ 0.104167 $ 0.104167 $ 0.083333 $ 0.093750 $ 0.104167 $ 0.104167 January 1, 2021 - June 30, 2021 0.104167 0.104167 0.083333 0.093750 0.104167 0.104167 (2) Amounts based on distribution record date. The sources of declared distributions on a GAAP basis were as follows (in thousands): Six Months Ended June 30, 2022 2021 Amount % of Distributions Declared Amount % of Distributions Declared Net investment income (1) $ 7,431 72.9 % $ 4,833 70.0 % Distributions in excess of net investment income (2) 2,756 27.1 2,075 30.0 Total distributions declared $ 10,187 100.0 % $ 6,908 100.0 % FOOTNOTES: (1) Net investment income includes Expense Support (reimbursement) of $(2,352) and $4,495 for the six months ended June 30, 2022 and 2021, respectively. See Note 5. “Related Party Transactions” (2) Consists of distributions made from offering proceeds for the periods presented. In June 2022, the Company’s board of directors declared a monthly cash distribution on the outstanding shares of all classes of common shares of record on July 28, 2022 of $0.104167 per share for Class FA shares, $0.104167 per share for Class A shares, $0.083333 per share for Class T shares, $0.093750 per share for Class D shares, $0.104167 per share for Class I shares and $0.104167 per share for Class S shares. |
Capital Transactions
Capital Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Capital Transactions | Capital Transactions Public Offerings Under the Public Offerings, the Company has offered and continues to offer up to $1.0 billion of shares, on a best efforts basis, which means that CNL Securities Corp., as the Managing Dealer of the Public Offerings, uses its best effort but is not required to sell any specific amount of shares. The Company is offering, in any combination, four classes of shares in the Follow-On Public Offering: Class A shares, Class T shares, Class D shares and Class I shares. The initial minimum permitted purchase amount is $5,000 in shares. There are differing selling fees and commissions for each share class. The Company also pays distribution and shareholder servicing fees, subject to certain limits, on the Class T and Class D shares sold in the Public Offerings (excluding sales pursuant to the Company’s distribution reinvestment plan). The public offering price, selling commissions and dealer manager fees per share class are determined monthly as approved by the Company’s board of directors. As of June 30, 2022, the public offering price was $34.26 per Class A share, $32.82 per Class T share, $30.95 per Class D share and $31.79 per Class I share. The Company is also offering, in any combination, up to $100.0 million of Class A shares, Class T shares, Class D shares and Class I shares to be issued pursuant to its distribution reinvestment plan. See Note 13. “Subsequent Events” The following tables summarize the total shares issued and proceeds received by share class in connection with the Public Offerings, excluding shares repurchased through the Share Repurchase Program described further below, for the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Proceeds to Company Shares Net Proceeds to Company Average Net Proceeds per Share Class A 276 $ 9,250 $ (659) $ 8,591 25 $ 780 301 $ 9,371 $ 31.15 Class T 342 11,154 (512) 10,642 17 522 359 11,164 31.14 Class D 360 11,093 — 11,093 11 352 371 11,445 30.78 Class I 1,633 51,600 — 51,600 53 1,662 1,686 53,262 31.57 2,611 $ 83,097 $ (1,171) $ 81,926 106 $ 3,316 2,717 $ 85,242 $ 31.36 Six Months Ended June 30, 2021 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Proceeds to Company Shares Net Proceeds to Company (3) Average Net Proceeds per Share Class A 189 $ 6,053 $ (446) $ 5,607 21 $ 623 210 $ 6,230 $ 29.73 Class T 266 8,304 (380) 7,924 7 215 273 8,139 29.77 Class D 169 4,996 — 4,996 6 159 175 5,155 29.52 Class I 1,662 50,328 — 50,328 22 648 1,684 50,976 30.27 2,286 $ 69,681 $ (826) $ 68,855 56 $ 1,645 2,342 $ 70,500 $ 30.11 FOOTNOTES: (1) Amounts are based on distribution reinvestment date. Distributions are declared monthly and paid or reinvested one month in arrears. (2) The Company incurs selling commissions and dealer manager fees on the sale of Class A and Class T shares sold through the Public Offerings. See Note 5. “Related Party Transactions” (3) Approximately $12.1 million of net proceeds for shares sold and issued on June 30, 2021 was received in cash in July 2021. Share Repurchase Program In accordance with the Share Repurchase Program, the total amount of aggregate repurchases of Class FA, Class A, Class T, Class D, Class I and Class S shares is limited to up to 2.5% of the aggregate net asset value per calendar quarter (based on the aggregate net asset value as of the last date of the month immediately prior to the repurchase date) and up to 10% of the aggregate net asset value per year (based on the average aggregate net asset value as of the end of each of the Company’s trailing four quarters). Unless the Company’s board of directors determines otherwise, the Company limits the number of shares to be repurchased during any calendar quarter to the number of shares the Company can repurchase with the proceeds received from the sale of shares under its distribution reinvestment plan in the previous quarter. Notwithstanding the foregoing, at the sole discretion of the Company’s board of directors, the Company may also use other sources, including, but not limited to, offering proceeds and borrowings to repurchase shares. During the six months ended June 30, 2022 and 2021, the Company received requests for the repurchase of approximately $16.1 million and $2.1 million, respectively, of the Company’s common shares which exceeded proceeds from its distribution reinvestment plan in the applicable periods by approximately $13.0 million and $0.6 million, respectively. The Company’s board of directors approved the use of other sources to satisfy repurchase requests received in excess of proceeds received from the distribution reinvestment plan. The following table summarizes the shares repurchased during the six months ended June 30, 2022 and 2021 (in thousands except per share data): Shares Repurchased Total Consideration Average Price Paid per Share Class FA 282 $ 9,366 $ 33.21 Class A 19 592 31.28 Class T 5 157 30.90 Class D 14 423 30.94 Class I 172 5,486 31.77 Class S 1 28 33.74 Six Months Ended June 30, 2022 493 $ 16,052 $ 32.55 Shares Repurchased Total Consideration Average Price Paid per Share Class FA 10 $ 319 $ 31.89 Class A 17 510 29.85 Class T 16 473 29.84 Class D 5 142 29.29 Class I 21 644 30.55 Six Months Ended June 30, 2021 69 $ 2,088 $ 30.32 As of June 30, 2022 and December 31, 2021, the Company had a payable for shares repurchased of approximately $10.8 million and $0.5 million, respectively, which were paid in July and January 2022, respectively. Share Conversions Class T and Class D shares are converted into Class A shares once the maximum amount of distribution and shareholder servicing fees for those particular shares has been met. The shares to be converted are multiplied by the applicable conversion rate, the numerator of which is the net asset value per share of the share class being converted and the denominator of which is the net asset value per Class A share. During the six months ended June 30, 2022, 19,400 Class T shares were converted to 19,343 Class A shares at an average conversion rate of 1.00. There were no share conversions during the six months ended June 30, 2021. |
Borrowings (Notes)
Borrowings (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In September 2021, the Company entered into a second amended and restated loan agreement (the “Loan Agreement”) and related promissory note with United Community Bank (d/b/a Seaside Bank and Trust, referred to as “Seaside”) for a $25.0 million line of credit (the “Line of Credit”). The Loan Agreement amended and replaced the previous loan agreements between the Company and Seaside dated June 2019, as amended. The Company is required to pay a fee to Seaside with each advance under the Loan Agreement in an amount equal to 0.05% of the amount of each borrowing with a maximum fee of $20,000 over a 364-day period. Under the Loan Agreement, the Company is required to pay interest on the borrowed amount at a rate per year equal to the greater of (a) the 30-day LIBOR plus 2.75% and (b) 3.00%. Interest payments are due monthly in arrears. The Company may prepay, without penalty, all or any part of the borrowings under the Loan Agreement at any time and such borrowings are required to be repaid within 180 days or 60 days (depending on the facility drawn upon) of the borrowing date. Under the Loan Agreement, the Company is required to comply with certain covenants including the provision of financial statements on a quarterly basis, a restriction from incurring any debt, and restrictions on the transfer and sale of assets held by certain subsidiaries. Additionally, the Company has a covenant related to its fair market value of investments as a multiple of borrowings outstanding. In connection with the Loan Agreement, in September 2021, the Company entered into an amended assignment and pledge of deposit account agreement (“Deposit Agreement”) in favor of the lender under the Line of Credit. Under the Deposit Agreement, the Company is required to contribute proceeds from the Public Offerings to pay down the outstanding debt to the extent there are any borrowings outstanding under the Loan Agreement above the minimum cash balance of $2.5 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company incurs income tax expense (benefit) related to its Taxable Subsidiaries. The components of income tax expense (benefit) were as follows during the quarter and six months ended June 30, 2022 and 2021 (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Current tax expense $ 334 $ 140 $ 116 $ 140 Deferred tax (benefit) expense (113) 86 583 19 Total income tax expense $ 221 $ 226 $ 699 $ 159 The effective tax rate for the six months ended June 30, 2022 and 2021 was 2.8% and 0.4%, respectively. The primary items giving rise to the difference between the 21.0% federal statutory rate applicable to corporations and the effective tax rates are due to state taxes and the benefits of the partnership structure. Significant components of the Company’s deferred tax assets and liabilities as of June 30, 2022 and December 31, 2021 were as follows (in thousands): June 30, 2022 December 31, 2021 Deferred tax assets: Carryforwards for net operating loss $ 708 $ 533 Other 21 18 Valuation Allowance (25) (22) Total deferred tax assets 704 529 Deferred tax liabilities: Unrealized appreciation on investments (3,164) (2,406) Total deferred tax liabilities (3,164) (2,406) Deferred tax liabilities, net $ (2,460) $ (1,877) |
Concentrations of Risk
Concentrations of Risk | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of RiskThe Company had one portfolio company (Lawn Doctor) which met at least one of the significance tests under Rule 10-01(b) of Regulation S-X (the “Significance Tests”) for at least one of the periods presented in the condensed consolidated financial statements. The portfolio companies are required to make monthly interest payments on their debt, with the debt principal due upon maturity. Failure of any of these portfolio companies to pay contractual interest payments could have a material adverse effect on the Company’s results of operations and cash flows from operations, which would impact its ability to make distributions to shareholders. |
Commitment & Contingences
Commitment & Contingences | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment & Contingences | Commitments & Contingencies See Note 5. “Related Party Transactions” From time to time, the Company and officers or directors of the Company may be party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts with its businesses. As of June 30, 2022, the Company was not involved in any legal proceedings. In addition, in the normal course of business, the Company enters into contracts with its vendors and others that provide for general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company. However, based on experience, the Company expects that risk of loss to be remote. |
Financial Highlights
Financial Highlights | 6 Months Ended |
Jun. 30, 2022 | |
Investment Company [Abstract] | |
Financial Highlights | Financial Highlights The following are schedules of financial highlights of the Company attributed to each class of shares for the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Period $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 Net investment income, before reimbursement of Expense Support (1) 0.85 0.49 0.33 0.38 0.46 0.81 Reimbursement of Expense Support (1)(2) (0.29) (0.18) — — (0.13) — Net investment income (1) 0.56 0.31 0.33 0.38 0.33 0.81 Net realized and unrealized gains, net of taxes (1)(3) 0.99 1.00 0.98 0.98 1.01 0.99 Net increase resulting from investment operations 1.55 1.31 1.31 1.36 1.34 1.80 Distributions to shareholders (4) (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net decrease resulting from distributions to shareholders (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net Asset Value, End of Period $ 33.54 $ 31.46 $ 31.47 $ 31.15 $ 31.89 $ 34.01 Net assets, end of period $ 143,454 $ 55,433 $ 61,152 $ 42,574 $ 220,797 $ 60,034 Average net assets (5) $ 148,510 $ 49,761 $ 52,814 $ 35,100 $ 191,764 $ 58,971 Shares outstanding, end of period 4,277 1,762 1,943 1,367 6,924 1,765 Distributions declared $ 2,806 $ 997 $ 849 $ 641 $ 3,790 $ 1,104 Total investment return based on net asset value before total return incentive fee (6) 5.31 % 5.25 % 5.27 % 5.50 % 5.27 % 6.13 % Total investment return based on net asset value after total return incentive fee (6) 4.68 % 4.27 % 4.30 % 4.53 % 4.32 % 5.51 % RATIOS/SUPPLEMENTAL DATA (not annualized): Ratios to average net assets: (5)(7) Total operating expenses before total return incentive fee 0.68 % 1.59 % 2.10 % 2.02 % 1.70 % 0.77 % Total operating expenses before reimbursement of Expense Support 1.19 % 2.64 % 3.17 % 3.15 % 2.75 % 1.37 % Total operating expenses after reimbursement of Expense Support 2.06 % 3.20 % 3.17 % 3.15 % 3.16 % 1.37 % Net investment income before total return incentive fee (8) 2.20 % 2.05 % 2.14 % 2.38 % 2.10 % 3.02 % Net investment income 1.69 % 1.00 % 1.06 % 1.25 % 1.04 % 2.42 % Six Months Ended June 30, 2021 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Period $ 29.97 $ 28.76 $ 28.67 $ 28.24 $ 29.06 $ 30.08 Net investment income (loss) before Expense Support (1) 0.30 (0.18) (0.35) (0.27) (0.32) 0.23 Expense Support (1)(2) 0.25 0.46 0.38 0.42 0.64 0.38 Net investment income (1) 0.55 0.28 0.03 0.15 0.32 0.61 Net realized and unrealized gains, net of taxes (1)(3) 2.51 2.51 2.53 2.52 2.53 2.50 Net increase resulting from investment operations 3.06 2.79 2.56 2.67 2.85 3.11 Distributions to shareholders (4) (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net decrease resulting from distributions to shareholders (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net Asset Value, End of Period $ 32.40 $ 30.92 $ 30.73 $ 30.35 $ 31.28 $ 32.56 Net assets, end of period $ 148,004 $ 37,938 $ 28,029 $ 18,921 $ 113,537 $ 57,639 Average net assets (5) $ 142,413 $ 33,429 $ 22,268 $ 14,736 $ 77,410 $ 55,304 Shares outstanding, end of period 4,569 1,227 912 624 3,629 1,770 Distributions declared $ 2,861 $ 699 $ 373 $ 282 $ 1,586 $ 1,107 Total investment return based on net asset value before total return incentive fee (6)(8) 10.40 % 10.22 % 9.50 % 10.03 % 9.90 % 10.43 % Total investment return based on net asset value after total return incentive fee (6) 10.20 % 9.79 % 9.01 % 9.56 % 9.90 % 10.43 % RATIOS/SUPPLEMENTAL DATA (not annualized): Ratios to average net assets: (5)(7) Total operating expenses before total return incentive fee and Expense Support 0.81 % 1.61 % 2.43 % 2.13 % 2.37 % 1.01 % Total operating expenses before Expense Support 1.81 % 3.60 % 4.31 % 4.11 % 4.34 % 2.00 % Total operating expenses after Expense Support 0.98 % 2.04 % 3.03 % 2.68 % 2.23 % 0.79 % Net investment income before total return incentive fee (8) 1.95 % 1.37 % 0.70 % 1.05 % 1.05 % 1.96 % Net investment income 1.77 % 0.95 % 0.10 % 0.50 % 1.05 % 1.96 % FOOTNOTES: (1) The per share amounts presented are based on weighted average shares outstanding. (2) Expense support (reimbursement) is accrued throughout the year and is subject to a final calculation as of the last business day of the calendar year. (3) The amount shown at this caption is the balancing figure derived from the other figures in the schedule. The amount shown at this caption for a share outstanding throughout the period may not agree with the change in the aggregate gains and losses in portfolio investments for the period because of the timing of sales and repurchases of the Company’s shares in relation to fluctuating fair values for the portfolio investments. (4) The per share data for distributions is the actual amount of distributions paid or payable per common share outstanding during the entire period; distributions per share are rounded to the nearest $0.01. (5) The computation of average net assets during the period is based on net assets measured at each month end, adjusted for capital contributions or withdrawals during the month. (6) Total investment return is calculated for each share class as the change in the net asset value for such share class during the period and assuming all distributions are reinvested. Class FA assumes distributions are reinvested in Class A shares and all other share classes assume distributions are reinvested in the same share class, including Class S shares which do not participate in the distribution reinvestment plan. Amounts are not annualized and are not representative of total return as calculated for purposes of the total return incentive fee described in Note 5. “Related Party Transactions.” (7) Actual results may not be indicative of future results. Additionally, an individual investor’s ratios may vary from the ratios presented for a share class as a whole. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment Activity In August 2022, the Company made an additional equity investment in Blue Ridge of approximately $2.9 million. Distributions In July 2022, the Company’s board of directors declared a monthly cash distribution on the outstanding shares of all classes of common shares of record on August 30, 2022 of $0.104167 per share for Class FA shares, $0.104167 per share for Class A shares, $0.083333 per share for Class T shares, $0.093750 per share for Class D shares, $0.104167 per share for Class I shares and $0.104167 per share for Class S shares. Offerings In July 2022, the Company’s board of directors approved new per share offering prices for each share class in the Follow-On Public Offering. The new offering prices are effective as of July 28, 2022. The following table provides the new offering prices and applicable upfront selling commissions and dealer manager fees for each share class available in the Follow-On Public Offering: Class A Class T Class D Class I Effective July 28, 2022: Offering Price, Per Share $ 34.38 $ 33.04 $ 31.15 $ 31.89 Selling Commissions, Per Share 2.06 0.99 — — Dealer Manager Fees, Per Share 0.86 0.58 — — Capital Transactions During the period July 1, 2022 through August 11, 2022, the Company received additional net proceeds from the Follow-On Public Offering and distribution reinvestment plan of the following (in thousands except per share data): Proceeds from Follow-On Public Offering Distribution Reinvestment Plan Total Share Class Shares Gross Proceeds Sales Load Net Proceeds to Company Shares Gross Proceeds Shares Net Proceeds to Company Average Net Proceeds per Share Class A 86 $ 2,923 $ (212) $ 2,711 8 $ 244 94 $ 2,955 $ 31.46 Class T 59 1,933 (91) 1,842 6 197 65 2,039 31.46 Class D 55 1,719 — 1,719 5 146 60 1,865 31.14 Class I 191 6,104 — 6,104 21 655 212 6,759 31.89 391 $ 12,679 $ (303) $ 12,376 40 $ 1,242 431 $ 13,618 $ 31.62 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained in the Financial Accounting Standards Board Accounting Standards Codification (the “Codification” or “ASC”), which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties. In the opinion of management, the condensed consolidated financial statements reflect all adjustments that are of a normal recurring nature and necessary for the fair presentation of financial results as of and for the periods presented. |
Principles of Consolidation | Principles of Consolidation Under ASC Topic 946 the Company is precluded from consolidating any entity other than an investment company or an operating company which provides substantially all of its services to benefit the Company. In accordance therewith, the Company has consolidated the results of its wholly owned subsidiaries which provide services to the Company in its condensed consolidated financial statements. However, the Company has not consolidated the results of its subsidiaries in which the Company holds debt and equity investments. All intercompany account balances and transactions have been eliminated in consolidation. |
Risks and Uncertainties | Risks and Uncertainties The novel coronavirus (“COVID-19”) pandemic has continued to adversely impact the U.S. and global economies. The U.S. financial markets have experienced disruption and constrained credit conditions within certain sectors. Although more normalized activities have resumed, at this time the Company cannot predict the full extent of the impacts of the COVID-19 pandemic on the Company and its portfolio companies and the COVID-19 pandemic could have a delayed adverse impact on the Company's financial results. Additionally, during the second quarter of 2022, the U.S. economy experienced rising interest rates and record inflationary pressures due in part to global supply chain issues, a rise in energy prices, the continuing effects of fiscal and monetary policies adopted by governments in response to the COVID-19 pandemic and continued strong consumer demand as economies reopen from restrictions related to the pandemic. The Company will continue to monitor the pandemic's effects on a daily basis and will adjust its operations as necessary. The full impact of COVID-19 on the financial and credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the pandemic and the spread and severity of new COVID-19 variants, (ii) the effectiveness of the United States public health response, including the efficacy of the vaccines or other remedies and the disparities in vaccination rates and vaccination hesitancy, (iii) the pandemic’s impact on the U.S. and global economies, including record inflationary pressures and global supply chain issues, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, and (vi) the negative impact on its portfolio companies. |
Cash | Cash Cash consists of demand deposits at commercial banks. Demand deposits are carried at cost plus accrued interest, which approximates fair value. The Company deposits its cash with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law. |
Use of Estimates | Use of EstimatesManagement makes estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the financial statements in conformity with generally accepted accounting principles. The uncertainty of future events, including the impact of the COVID-19 pandemic, may materially impact the accuracy of the estimates and assumptions used in the financial statements and related footnotes and actual results could differ from those estimates. |
Valuation of Investments | Valuation of Investments ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) clarifies that the fair value is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. ASC Topic 820 provides a consistent definition of fair value which focuses on exit price and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. In addition, ASC Topic 820 provides a framework for measuring fair value and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels of valuation hierarchy established by ASC Topic 820 are defined as follows: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market is defined as a market in which transactions for the asset or liability occur with sufficient pricing information on an ongoing basis. Publicly listed equity and debt securities and listed derivatives that are traded on major securities exchanges and publicly traded equity options are generally valued using Level 1 inputs. If a price for an asset cannot be determined based upon this established process, it shall then be valued as a Level 2 or Level 3 asset. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: (i) quoted prices for similar assets in active markets; (ii) quoted prices for identical or similar assets in markets that are not active; (iii) inputs that are derived principally from or corroborated by observable market data by correlation or other means; and (iv) inputs other than quoted prices that are observable for the assets. Fixed income and derivative assets, where there is an observable secondary trading market and through which pricing inputs are available through pricing services or broker quotes, are generally valued using Level 2 inputs. If a price for an asset cannot be determined based upon this established process, it shall then be valued as a Level 3 asset. Level 3 – Unobservable inputs for the asset or liability being valued. Unobservable inputs will be used to measure fair value to the extent that observable inputs are not available and such inputs will be based on the best information available in the circumstances, which under certain circumstances might include the Manager’s or the Sub-Manager’s own data. Level 3 inputs may include, but are not limited to, capitalization and discount rates and earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. Certain assets may be valued based upon estimated value of underlying collateral and include adjustments deemed necessary for estimates of costs to obtain control and liquidate available collateral. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence. Debt and equity investments in private companies or assets valued using the market or income approach are generally valued using Level 3 inputs. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls will be determined based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each asset. The Company’s board of directors is responsible for determining in good faith the fair value of the Company’s investments in accordance with the valuation policy and procedures approved by the board of directors, based on, among other factors, the input of the Manager, the Sub-Manager, its audit committee, and the independent third-party valuation firm. The determination of the fair value of the Company’s assets requires judgment, especially with respect to assets for which market prices are not available. For most of the Company’s assets, market prices will not be available. Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, the fair value of the assets may differ significantly from the values that would have been used had a readily available market value existed for such assets, and the differences could be material. Because the calculation of the Company’s net asset value is based, in part, on the fair value of its assets, the Company’s calculation of net asset value is subjective and could be adversely affected if the determinations regarding the fair value of its assets were materially higher than the values that the Company ultimately realizes upon the disposal of such assets. Furthermore, through the valuation process, the Company’s board of directors may determine that the fair value of the Company’s assets differs materially from the values that were provided by the independent valuation firm. |
Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments | Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments The Company will measure realized gains or losses as the difference between the net proceeds from the sale, repayment, or disposal of an asset and the adjusted cost basis of the asset, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation on investments will reflect the change in asset values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. |
Income Recognition | Income Recognition Interest Income – Interest income is recorded on an accrual basis to the extent that the Company expects to collect such amounts. The Company does not accrue as a receivable interest on loans and debt securities for accounting purposes if it has reason to doubt its ability to collect such interest. The Company places loans on non-accrual status when principal and interest are past due 90 days or more or when there is a reasonable doubt that the Company will collect principal or interest. Accrued interest is generally reversed when a loan is placed on non-accrual. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are generally restored to accrual status when past due principal and interest amounts are paid and, in management’s judgment, are likely to remain current. Since inception, the Company has not experienced any past due payments on any of its loan investments. Dividend Income – |
Paid in Capital | Paid in Capital The Company records the proceeds from the sale of its common shares on a net basis to (i) capital stock and (ii) paid in capital in excess of par value, excluding upfront selling commissions and dealer manager fees. |
Share Repurchases | Share RepurchasesUnder the Company’s share repurchase program (the “Share Repurchase Program”), a shareholder’s shares are deemed to have been redeemed as of the repurchase date, which will generally be the last business day of the month of a calendar quarter. Shares redeemed are retired and not available for reissue. |
Organization and Offering Expenses | Organization and Offering Expenses Organization expenses are expensed on the Company’s condensed consolidated statements of operations as incurred. Offering expenses, which consist of amounts incurred for items such as legal, accounting, regulatory and printing work incurred related to the Public Offerings, are capitalized on the Company’s condensed consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s condensed consolidated statements of operations over the lesser of the offering period or 12 months; however, the end of the deferral period will not exceed 12 months from the date the offering expense is incurred by the Manager and the Sub-Manager. |
Distribution and Shareholder Servicing Fees | Distribution and Shareholder Servicing FeesThe Company pays distribution and shareholder servicing fees with respect to its Class T and Class D shares, as described further below in Note 5. “Related Party Transactions.” |
Deferred Financing Costs | Deferred Financing Costs Financing costs, including upfront fees, commitment fees and legal fees related to borrowings (as further described in Note 8. “Borrowings” |
Allocation of Profit and Loss | Allocation of Profit and Loss Class-specific expenses, including base management fees, total return incentive fees, organization and offering expenses, distribution and shareholder servicing fees, expense support (reimbursement) and certain transfer agent fees, are allocated to each share class of common shares in accordance with how such expenses are attributable to the particular share classes, as determined by the Company’s board of directors, the Company’s governing agreements and, in certain cases, expenses which are specifically identifiable to a share class. |
Earnings per Share and Net Investment Income per Share | Earnings per Share and Net Investment Income per Share Earnings per share and net investment income per share are calculated for each share class of common shares based upon the weighted average number of common shares outstanding during the reporting period. |
Distributions | Distributions The Company’s board of directors has declared and intends to continue to declare distributions based on monthly record dates and such distributions are expected to be paid on a monthly basis one month in arrears. Distributions are made on all classes of the Company’s shares at the same time. The Company has adopted a distribution reinvestment plan that provides for reinvestment of distributions on behalf of shareholders. Non-founder shareholders participating in the distribution reinvestment plan will have their cash distribution automatically reinvested in additional shares having the same class designation as the class of shares to which such distributions are attributable at a price per share equivalent to the then current public offering price, net of up-front selling commissions and dealer manager fees. Cash distributions paid on Class FA shares participating in the distribution reinvestment plan are reinvested in additional Class A shares. Class S shares do not participate in the distribution reinvestment plan. |
Reclassifications | Reclassifications Certain reclassifications have been made to the condensed consolidated statement of cash flows for the six months ended June 30, 2021 to conform with the current year presentation. There was no impact on the Company’s consolidated net cash used in operations or net cash provided by financing activities as a result of the reclassifications. |
Income Taxes | Income Taxes Under GAAP, the Company is subject to the provisions of ASC 740, “Income Taxes.” The Company follows the authoritative guidance on accounting for uncertainty in income taxes and concluded it has no material uncertain tax positions to be recognized at this time. If applicable, the Company will recognize interest and penalties related to unrecognized tax benefits as income tax expense in the Company’s condensed consolidated statements of operations. The Company has operated and expects to continue to operate so that it will qualify to be treated for U.S. federal income tax purposes as a partnership, and not as an association or a publicly traded partnership taxable as a corporation. Generally, the Company will not be taxable as a corporation if 90% or more of its gross income for each taxable year consists of “qualifying income” (generally, interest (other than interest generated from a financial business), dividends, real property rents, gain from the sale of assets that produce qualifying income and certain other items) and the Company is not required to register under the Investment Company Act (the “qualifying income exception”). As a partnership, the individual shareholders are responsible for their proportionate share of the Company’s taxable income. Note 9. “Income Taxes” |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Portfolio | The Company’s investment portfolio is summarized as follows as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, 2022 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 101,600 $ 101,600 18.2 % 17.4 % Second lien 75,342 75,342 13.4 12.9 Total senior secured debt 176,942 176,942 31.6 30.3 Equity 297,025 382,552 68.4 65.6 Total investments $ 473,967 $ 559,494 100.0 % 95.9 % As of December 31, 2021 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 116,600 $ 116,600 25.6 % 23.3 % Second lien 35,942 35,942 7.9 7.2 Total senior secured debt 152,542 152,542 33.5 30.5 Equity 235,212 303,455 66.5 60.7 Total investments $ 387,754 $ 455,997 100.0 % 91.2 % |
Industry and Geographic Dispersion of Investment Portfolio as Percentage of Total Fair Value of Investments | The industry dispersion of the Company’s investment portfolio as a percentage of total fair value of the Company’s investments as of June 30, 2022 and December 31, 2021 were as follows: Industry June 30, 2022 December 31, 2021 Engineered Products 17.3 % 2.8 % Real Estate Services 14.2 17.2 Commercial and Professional Services 13.5 15.8 Visual Safety Solutions 13.9 15.2 Information Services and Advisory Solutions 10.2 12.1 Healthcare Supplies 9.3 10.6 Sanitation Products 8.7 11.1 Hobby Goods and Supplies 6.9 8.7 Business Services 6.0 6.5 Total 100.0 % 100.0 % |
Summary of Operating and Balance Sheet Data | The following tables present unaudited summarized operating data for the Company’s portfolio companies in which it owned a controlling equity interest during the quarter and six months ended June 30, 2022 and 2021, and summarized balance sheet data as of June 30, 2022 (unaudited) and December 31, 2021, as applicable (in thousands): Summarized Operating Data Quarter Ended June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek (1) Revenues $ 11,882 $ 7,642 $ 3,895 $ 8,260 $ 17,214 $ 8,047 $ 2,814 $ 5,415 Expenses (10,404) (6,205) (3,359) (8,059) (15,607) (6,883) (3,210) (6,552) Income before taxes 1,478 1,437 536 201 1,607 1,164 (396) (1,137) Income tax expense (352) (410) (35) (128) — (285) 115 (8) Consolidated net income 1,126 1,027 501 73 1,607 879 (281) (1,145) Net loss attributable to non-controlling interests (6) — — — — — — — Net income $ 1,120 $ 1,027 $ 501 $ 73 $ 1,607 $ 879 $ (281) $ (1,145) Quarter Ended June 30, 2021 Lawn Doctor Polyform Roundtables HSH ATA Revenues $ 10,995 $ 4,732 $ 3,368 $ 8,167 $ 20,033 Expenses (9,478) (4,400) (3,104) (7,622) (16,049) Income before taxes 1,517 332 264 545 3,984 Income tax expense (388) (95) (57) (120) — Consolidated net income 1,129 237 207 425 3,984 Net loss attributable to non-controlling interests 13 — — — — Net income $ 1,142 $ 237 $ 207 $ 425 $ 3,984 Six Months Ended June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek (1) Revenues $ 21,546 $ 13,465 $ 7,438 $ 17,866 $ 31,372 $ 13,446 $ 6,433 $ 5,415 Expenses (19,272) (11,596) (7,083) (16,826) (31,181) (12,707) (6,043) (6,552) Income (loss) before taxes 2,274 1,869 355 1,040 191 739 390 (1,137) Income tax (expense) benefit (555) (534) 8 (313) — (181) (113) (8) Consolidated net income (loss) 1,719 1,335 363 727 191 558 277 (1,145) Net loss attributable to non-controlling interests 33 — — — — — — — Net income (loss) $ 1,752 $ 1,335 $ 363 $ 727 $ 191 $ 558 $ 277 $ (1,145) Six Months Ended June 30, 2021 Lawn Doctor Polyform Roundtables HSH ATA (2) Revenues $ 19,789 $ 11,525 $ 6,220 $ 16,130 $ 20,033 Expenses (17,456) (9,712) (6,075) (15,157) (16,049) Income before taxes 2,333 1,813 145 973 3,984 Income tax expense (612) (518) (31) (214) — Consolidated net income 1,721 1,295 114 759 3,984 Net loss attributable to non-controlling interests 88 — — — — Net income $ 1,809 $ 1,295 $ 114 $ 759 $ 3,984 Summarized Balance Sheet Data As of June 30, 2022 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Vektek Current assets $ 10,736 $ 11,484 $ 8,166 $ 12,868 $ 7,308 $ 13,412 $ 3,122 $ 13,106 Non-current assets 90,316 28,093 60,799 37,651 90,854 35,829 70,282 104,828 Current liabilities 6,730 2,419 10,326 4,698 6,798 4,954 406 2,386 Non-current liabilities 63,461 21,490 19,777 28,643 44,262 15,393 22,500 49,191 Non-controlling interests (533) — — — — — — — Stockholders’ equity 31,394 15,668 38,862 17,178 47,102 28,894 50,498 66,357 Ownership percentage (3) 61 % 87 % 81 % 75 % 75 % 90 % 98 % 84 % As of December 31, 2021 Lawn Doctor Polyform Roundtables HSH ATA Douglas Clarion Current assets $ 13,926 $ 9,940 $ 2,043 $ 14,260 $ 10,029 $ 13,177 $ 3,084 Non-current assets 92,309 28,948 61,955 39,653 90,510 40,311 66,182 Current liabilities 7,961 2,290 4,738 7,341 9,002 4,159 420 Non-current liabilities 63,576 21,557 19,771 28,536 43,458 15,711 22,500 Non-controlling interests (500) — — — — — — Stockholders’ equity 35,198 15,041 39,489 18,036 48,079 33,618 46,346 Ownership percentage (3) 61 % 87 % 81 % 75 % 75 % 90 % 99 % FOOTNOTES: (1) Results presented for the quarter and six months ended June 30, 2022 are for the period from May 6, 2022 (the date the Company acquired its investments in Vektek) to June 30, 2022. (2) Results presented for the six months ended June 30, 2021 are for the period from April 1, 2021 (the date the Company acquired its investments in ATA) to June 30, 2021. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Investments Categorization in Fair Value Hierarchy | The Company’s investments were categorized in the fair value hierarchy described in Note 2. “Significant Accounting Policies,” As of June 30, 2022 As of December 31, 2021 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Senior Debt $ — $ — $ 176,942 $ 176,942 $ — $ — $ 152,542 $ 152,542 Equity — — 382,552 382,552 — — 303,455 303,455 Total investments $ — $ — $ 559,494 $ 559,494 $ — $ — $ 455,997 $ 455,997 |
Unobservable Inputs Used in Fair Value Measurement of Investments | The ranges of unobservable inputs used in the fair value measurement of the Company’s Level 3 investments as of June 30, 2022 and December 31, 2021 were as follows (in thousands): June 30, 2022 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 152,542 Discounted Cash Flow Discount Rate 9.5% – 13.5% (11.4%) 7.0x – 14.6x (9.5x) 6.5x – 12.5x (10.9x) Decrease 24,400 Transaction Precedent Transaction Price N/A N/A Equity 325,624 Discounted Cash Flow Discount Rate 9.5% – 13.5% (11.4%) 7.0x – 14.6x (9.5x) 6.5x – 12.5x (10.9x) Decrease 56,928 Transaction Precedent Transaction Price N/A N/A Total $ 559,494 December 31, 2021 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 130,042 Discounted Cash Flow Discount Rate 8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x) Decrease 22,500 Transaction Precedent Transaction Price N/A N/A Equity 256,695 Discounted Cash Flow Discount Rate 8.5% – 13.0% (11.4%) 4.1x – 15.2x (8.9x) 6.0x – 12.5x (9.6x) Decrease 46,760 Transaction Precedent Transaction Price N/A N/A Total $ 455,997 FOOTNOTES: (1) Discount rates are relative to the enterprise value of the portfolio companies and are not the market yields on the associated debt investments. Unobservable inputs were weighted by the relative fair value of the investments. (2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. |
Reconciliations of Investments of Level 3 Inputs | The following tables provide a reconciliation of investments for which Level 3 inputs were used in determining fair value for the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 Senior Debt Equity Total Fair value balance as of January 1, 2022 $ 152,542 $ 303,455 $ 455,997 Additions 24,400 62,050 86,450 Return of capital (1) — (237) (237) Net change in unrealized appreciation (2) — 17,284 17,284 Fair value balance as of June 30, 2022 $ 176,942 $ 382,552 $ 559,494 Change in net unrealized appreciation on investments held as of June 30, 2022 (2) $ — $ 17,284 $ 17,284 Six Months Ended June 30, 2021 Senior Debt Equity Total Fair value balance as of January 1, 2021 $ 78,042 $ 153,155 $ 231,197 Additions 37,000 36,000 73,000 Net change in unrealized appreciation (2) — 28,787 28,787 Fair value balance as of June 30, 2021 $ 115,042 $ 217,942 $ 332,984 Change in net unrealized appreciation on investments held as of June 30, 2021 (2) $ — $ 28,787 $ 28,787 FOOTNOTES: (1) Represents portion of distributions received which were accounted for as a return of capital. See Note 2. “Significant Accounting Policies” for information on the accounting treatment of distributions from portfolio companies. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the years ended December 31, 2022 and 2021, the High Water Marks were as follows: For the year ended: Class FA Class A Class T Class D Class I Class S December 31, 2022 $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 December 31, 2021 29.97 28.76 28.67 28.24 29.06 30.08 Related party fees and expenses incurred for the quarter and six months ended June 30, 2022 and 2021 are summarized below (in thousands): Quarter Ended June 30, Six Months Ended June 30, Related Party Source Agreement & Description 2022 2021 2022 2021 Managing Dealer Managing Dealer Agreement: Commissions $ 483 $ 288 $ 770 $ 542 Dealer manager fees 253 153 401 284 Distribution and shareholder servicing fees 180 79 339 143 Manager and Sub-Manager Management Agreement and Sub-Management Agreement: Organization and offering reimbursement (1)(2) 716 667 1,246 1,053 Base management fees (1) 2,129 1,156 3,992 1,990 Total return incentive fees (1) 1,741 2,577 4,633 4,870 Manager and Sub-Manager Expense Support and Conditional Reimbursement Agreement: Expense Support — (1,845) — (4,495) Reimbursement of Expense Support 722 — 2,352 — Manager Administrative Services Agreement: Reimbursement of third-party operating expenses (1) 35 28 57 56 Sub-Manager Sub-Management Agreement: Reimbursement of third-party pursuit costs (1)(3) 179 514 339 514 FOOTNOTES: (1) Expenses subject to Expense Support. (2) Organization reimbursements are expensed on the Company’s condensed consolidated statements of operations as incurred. Offering reimbursements are capitalized on the Company’s condensed consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s condensed consolidated statements of operations over the lesser of the offering period or 12 months. (3) Includes reimbursement of third-party fees incurred for investments that did not close, including fees and expenses associated with performing due diligence reviews. The following table presents amounts due to related parties as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Total return incentive fee $ 4,633 $ 7,283 Reimbursement of Expense Support 2,352 1,831 Base management fees 767 578 Organization and offering expenses 173 176 Distribution and shareholder servicing fees 62 53 Reimbursement of third-party operating expenses and pursuit costs 21 1 Total due to related parties $ 8,008 $ 9,922 |
Schedule of Related Party Transactions, Expense Support | The following table summarizes Expense Support received (excluding years for which reimbursement eligibility has expired), Expense Support reimbursed and the remaining Expense Support that may become reimbursable, subject to the conditions of reimbursement defined in the Expense Support and Conditional Reimbursement Agreement, as of June 30, 2022 (in thousands): For the Year Ended Amount of Expense Support Received Expense Support Reimbursed (1) Expense Support Subject to Reimbursement (2) Reimbursement Eligibility Expiration December 31, 2019 $ 1,372 $ (970) $ 402 March 31, 2023 December 31, 2020 3,301 (509) 2,792 March 31, 2024 $ 4,673 $ (1,479) $ 3,194 FOOTNOTES: (1) Represents Expense Support reimbursed to the Manager and Sub-Manager accrued as of December 31, 2021 and paid during the six months ended June 30, 2022, related to Expense Support received for the years ended December 31, 2020 and 2019. The Company also reimbursed $(353) related to Expense Support received for the year ended December 31, 2018. |
Distributions (Tables)
Distributions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Distributions Declared | The following table reflects the total distributions declared during the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 2021 Distribution Period Distributions Declared (1) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested (2) Distributions Declared (1)(2) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested (2) First Quarter $ 4,928 $ 1,630 $ 3,298 $ 3,290 $ 789 $ 2,501 Second Quarter 5,259 1,819 3,440 3,618 972 2,646 $ 10,187 $ 3,449 $ 6,738 $ 6,908 $ 1,761 $ 5,147 FOOTNOTES: (1) The Company’s board of directors declared distributions per share on a monthly basis. See Note 12. “Financial Highlights” Record Date Period Class FA Class A Class T Class D Class I Class S January 1, 2022 - June 30, 2022 $ 0.104167 $ 0.104167 $ 0.083333 $ 0.093750 $ 0.104167 $ 0.104167 January 1, 2021 - June 30, 2021 0.104167 0.104167 0.083333 0.093750 0.104167 0.104167 (2) Amounts based on distribution record date. The sources of declared distributions on a GAAP basis were as follows (in thousands): Six Months Ended June 30, 2022 2021 Amount % of Distributions Declared Amount % of Distributions Declared Net investment income (1) $ 7,431 72.9 % $ 4,833 70.0 % Distributions in excess of net investment income (2) 2,756 27.1 2,075 30.0 Total distributions declared $ 10,187 100.0 % $ 6,908 100.0 % FOOTNOTES: (1) Net investment income includes Expense Support (reimbursement) of $(2,352) and $4,495 for the six months ended June 30, 2022 and 2021, respectively. See Note 5. “Related Party Transactions” |
Capital Transactions (Tables)
Capital Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Shares Issued and Proceeds Received in Connection with Private Placement | The following tables summarize the total shares issued and proceeds received by share class in connection with the Public Offerings, excluding shares repurchased through the Share Repurchase Program described further below, for the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Proceeds to Company Shares Net Proceeds to Company Average Net Proceeds per Share Class A 276 $ 9,250 $ (659) $ 8,591 25 $ 780 301 $ 9,371 $ 31.15 Class T 342 11,154 (512) 10,642 17 522 359 11,164 31.14 Class D 360 11,093 — 11,093 11 352 371 11,445 30.78 Class I 1,633 51,600 — 51,600 53 1,662 1,686 53,262 31.57 2,611 $ 83,097 $ (1,171) $ 81,926 106 $ 3,316 2,717 $ 85,242 $ 31.36 Six Months Ended June 30, 2021 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Proceeds to Company Shares Net Proceeds to Company (3) Average Net Proceeds per Share Class A 189 $ 6,053 $ (446) $ 5,607 21 $ 623 210 $ 6,230 $ 29.73 Class T 266 8,304 (380) 7,924 7 215 273 8,139 29.77 Class D 169 4,996 — 4,996 6 159 175 5,155 29.52 Class I 1,662 50,328 — 50,328 22 648 1,684 50,976 30.27 2,286 $ 69,681 $ (826) $ 68,855 56 $ 1,645 2,342 $ 70,500 $ 30.11 FOOTNOTES: (1) Amounts are based on distribution reinvestment date. Distributions are declared monthly and paid or reinvested one month in arrears. (2) The Company incurs selling commissions and dealer manager fees on the sale of Class A and Class T shares sold through the Public Offerings. See Note 5. “Related Party Transactions” |
Summary of Shares Repurchased | The following table summarizes the shares repurchased during the six months ended June 30, 2022 and 2021 (in thousands except per share data): Shares Repurchased Total Consideration Average Price Paid per Share Class FA 282 $ 9,366 $ 33.21 Class A 19 592 31.28 Class T 5 157 30.90 Class D 14 423 30.94 Class I 172 5,486 31.77 Class S 1 28 33.74 Six Months Ended June 30, 2022 493 $ 16,052 $ 32.55 Shares Repurchased Total Consideration Average Price Paid per Share Class FA 10 $ 319 $ 31.89 Class A 17 510 29.85 Class T 16 473 29.84 Class D 5 142 29.29 Class I 21 644 30.55 Six Months Ended June 30, 2021 69 $ 2,088 $ 30.32 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows during the quarter and six months ended June 30, 2022 and 2021 (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Current tax expense $ 334 $ 140 $ 116 $ 140 Deferred tax (benefit) expense (113) 86 583 19 Total income tax expense $ 221 $ 226 $ 699 $ 159 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of June 30, 2022 and December 31, 2021 were as follows (in thousands): June 30, 2022 December 31, 2021 Deferred tax assets: Carryforwards for net operating loss $ 708 $ 533 Other 21 18 Valuation Allowance (25) (22) Total deferred tax assets 704 529 Deferred tax liabilities: Unrealized appreciation on investments (3,164) (2,406) Total deferred tax liabilities (3,164) (2,406) Deferred tax liabilities, net $ (2,460) $ (1,877) |
Financial Highlights (Tables)
Financial Highlights (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investment Company [Abstract] | |
Schedule of Financial Highlights | The following are schedules of financial highlights of the Company attributed to each class of shares for the six months ended June 30, 2022 and 2021 (in thousands except per share data): Six Months Ended June 30, 2022 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Period $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 Net investment income, before reimbursement of Expense Support (1) 0.85 0.49 0.33 0.38 0.46 0.81 Reimbursement of Expense Support (1)(2) (0.29) (0.18) — — (0.13) — Net investment income (1) 0.56 0.31 0.33 0.38 0.33 0.81 Net realized and unrealized gains, net of taxes (1)(3) 0.99 1.00 0.98 0.98 1.01 0.99 Net increase resulting from investment operations 1.55 1.31 1.31 1.36 1.34 1.80 Distributions to shareholders (4) (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net decrease resulting from distributions to shareholders (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net Asset Value, End of Period $ 33.54 $ 31.46 $ 31.47 $ 31.15 $ 31.89 $ 34.01 Net assets, end of period $ 143,454 $ 55,433 $ 61,152 $ 42,574 $ 220,797 $ 60,034 Average net assets (5) $ 148,510 $ 49,761 $ 52,814 $ 35,100 $ 191,764 $ 58,971 Shares outstanding, end of period 4,277 1,762 1,943 1,367 6,924 1,765 Distributions declared $ 2,806 $ 997 $ 849 $ 641 $ 3,790 $ 1,104 Total investment return based on net asset value before total return incentive fee (6) 5.31 % 5.25 % 5.27 % 5.50 % 5.27 % 6.13 % Total investment return based on net asset value after total return incentive fee (6) 4.68 % 4.27 % 4.30 % 4.53 % 4.32 % 5.51 % RATIOS/SUPPLEMENTAL DATA (not annualized): Ratios to average net assets: (5)(7) Total operating expenses before total return incentive fee 0.68 % 1.59 % 2.10 % 2.02 % 1.70 % 0.77 % Total operating expenses before reimbursement of Expense Support 1.19 % 2.64 % 3.17 % 3.15 % 2.75 % 1.37 % Total operating expenses after reimbursement of Expense Support 2.06 % 3.20 % 3.17 % 3.15 % 3.16 % 1.37 % Net investment income before total return incentive fee (8) 2.20 % 2.05 % 2.14 % 2.38 % 2.10 % 3.02 % Net investment income 1.69 % 1.00 % 1.06 % 1.25 % 1.04 % 2.42 % Six Months Ended June 30, 2021 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Period $ 29.97 $ 28.76 $ 28.67 $ 28.24 $ 29.06 $ 30.08 Net investment income (loss) before Expense Support (1) 0.30 (0.18) (0.35) (0.27) (0.32) 0.23 Expense Support (1)(2) 0.25 0.46 0.38 0.42 0.64 0.38 Net investment income (1) 0.55 0.28 0.03 0.15 0.32 0.61 Net realized and unrealized gains, net of taxes (1)(3) 2.51 2.51 2.53 2.52 2.53 2.50 Net increase resulting from investment operations 3.06 2.79 2.56 2.67 2.85 3.11 Distributions to shareholders (4) (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net decrease resulting from distributions to shareholders (0.63) (0.63) (0.50) (0.56) (0.63) (0.63) Net Asset Value, End of Period $ 32.40 $ 30.92 $ 30.73 $ 30.35 $ 31.28 $ 32.56 Net assets, end of period $ 148,004 $ 37,938 $ 28,029 $ 18,921 $ 113,537 $ 57,639 Average net assets (5) $ 142,413 $ 33,429 $ 22,268 $ 14,736 $ 77,410 $ 55,304 Shares outstanding, end of period 4,569 1,227 912 624 3,629 1,770 Distributions declared $ 2,861 $ 699 $ 373 $ 282 $ 1,586 $ 1,107 Total investment return based on net asset value before total return incentive fee (6)(8) 10.40 % 10.22 % 9.50 % 10.03 % 9.90 % 10.43 % Total investment return based on net asset value after total return incentive fee (6) 10.20 % 9.79 % 9.01 % 9.56 % 9.90 % 10.43 % RATIOS/SUPPLEMENTAL DATA (not annualized): Ratios to average net assets: (5)(7) Total operating expenses before total return incentive fee and Expense Support 0.81 % 1.61 % 2.43 % 2.13 % 2.37 % 1.01 % Total operating expenses before Expense Support 1.81 % 3.60 % 4.31 % 4.11 % 4.34 % 2.00 % Total operating expenses after Expense Support 0.98 % 2.04 % 3.03 % 2.68 % 2.23 % 0.79 % Net investment income before total return incentive fee (8) 1.95 % 1.37 % 0.70 % 1.05 % 1.05 % 1.96 % Net investment income 1.77 % 0.95 % 0.10 % 0.50 % 1.05 % 1.96 % FOOTNOTES: (1) The per share amounts presented are based on weighted average shares outstanding. (2) Expense support (reimbursement) is accrued throughout the year and is subject to a final calculation as of the last business day of the calendar year. (3) The amount shown at this caption is the balancing figure derived from the other figures in the schedule. The amount shown at this caption for a share outstanding throughout the period may not agree with the change in the aggregate gains and losses in portfolio investments for the period because of the timing of sales and repurchases of the Company’s shares in relation to fluctuating fair values for the portfolio investments. (4) The per share data for distributions is the actual amount of distributions paid or payable per common share outstanding during the entire period; distributions per share are rounded to the nearest $0.01. (5) The computation of average net assets during the period is based on net assets measured at each month end, adjusted for capital contributions or withdrawals during the month. (6) Total investment return is calculated for each share class as the change in the net asset value for such share class during the period and assuming all distributions are reinvested. Class FA assumes distributions are reinvested in Class A shares and all other share classes assume distributions are reinvested in the same share class, including Class S shares which do not participate in the distribution reinvestment plan. Amounts are not annualized and are not representative of total return as calculated for purposes of the total return incentive fee described in Note 5. “Related Party Transactions.” (7) Actual results may not be indicative of future results. Additionally, an individual investor’s ratios may vary from the ratios presented for a share class as a whole. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Summary of New Public Offering Prices and Applicable Upfront Selling Commissions and Dealer Manager Fees | The following table provides the new offering prices and applicable upfront selling commissions and dealer manager fees for each share class available in the Follow-On Public Offering: Class A Class T Class D Class I Effective July 28, 2022: Offering Price, Per Share $ 34.38 $ 33.04 $ 31.15 $ 31.89 Selling Commissions, Per Share 2.06 0.99 — — Dealer Manager Fees, Per Share 0.86 0.58 — — |
Schedule of Capital Transactions | During the period July 1, 2022 through August 11, 2022, the Company received additional net proceeds from the Follow-On Public Offering and distribution reinvestment plan of the following (in thousands except per share data): Proceeds from Follow-On Public Offering Distribution Reinvestment Plan Total Share Class Shares Gross Proceeds Sales Load Net Proceeds to Company Shares Gross Proceeds Shares Net Proceeds to Company Average Net Proceeds per Share Class A 86 $ 2,923 $ (212) $ 2,711 8 $ 244 94 $ 2,955 $ 31.46 Class T 59 1,933 (91) 1,842 6 197 65 2,039 31.46 Class D 55 1,719 — 1,719 5 146 60 1,865 31.14 Class I 191 6,104 — 6,104 21 655 212 6,759 31.89 391 $ 12,679 $ (303) $ 12,376 40 $ 1,242 431 $ 13,618 $ 31.62 |
Principal Business and Organi_2
Principal Business and Organization - Additional Information (Detail) | 6 Months Ended | ||
Nov. 01, 2021 USD ($) | Mar. 07, 2018 USD ($) | Jun. 30, 2022 USD ($) classOfStock | |
Organization And Business Activities [Line Items] | |||
Number of classes of stock | classOfStock | 4 | ||
Initial Public Offering, Including Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares offered (in shares) | $ 1,100,000,000 | ||
Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares offered (in shares) | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 |
Follow On Public Offering, Including Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares offered (in shares) | $ 1,100,000,000 | ||
Minimum | |||
Organization And Business Activities [Line Items] | |||
Targeted business annual revenues for acquisition | 15,000,000 | ||
Maximum | |||
Organization And Business Activities [Line Items] | |||
Targeted business annual revenues for acquisition | $ 250,000,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 1 Months Ended | |||
Jun. 30, 2022 USD ($) year Investment | May 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2021 Investment | |
Schedule of Investments [Line Items] | ||||
Number of debt investments on non accrual status | Investment | 0 | 0 | ||
Vektek | ||||
Schedule of Investments [Line Items] | ||||
Voting interest acquired (as a percent) | 84% | |||
Total Senior Secured Notes | ||||
Schedule of Investments [Line Items] | ||||
Weighted average yield on debt investments (in percent) | 15.20% | |||
Weighted average years to maturity (in years) | year | 5 | |||
Total Senior Secured Notes | Vektek | ||||
Schedule of Investments [Line Items] | ||||
Debt investment made through subsidiary | $ 24.4 | |||
Equity | Vektek | ||||
Schedule of Investments [Line Items] | ||||
Purchase of equity investments | $ 56.9 | |||
ATA | Equity | ||||
Schedule of Investments [Line Items] | ||||
Purchase of equity investments | $ 1.1 | |||
Clarion Safety Systems | Equity | ||||
Schedule of Investments [Line Items] | ||||
Additional equity investment | $ 4 |
Investments - Summary of Invest
Investments - Summary of Investment Portfolio (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | ||
Cost | ||||
Total investments | $ 473,967 | [1],[2] | $ 387,754 | [3],[4] |
Fair Value | ||||
Total investments | $ 559,494 | [1],[2] | $ 455,997 | [3],[4] |
Fair Value Percentage of Investment Portfolio | 100% | 100% | ||
Fair Value Percentage of Net Assets | 95.90% | 91.20% | ||
Total Senior Secured Notes | ||||
Cost | ||||
Senior secured debt | $ 176,942 | $ 152,542 | ||
Fair Value | ||||
Senior secured debt | $ 176,942 | $ 152,542 | ||
Fair Value Percentage of Investment Portfolio | 31.60% | 33.50% | ||
Fair Value Percentage of Net Assets | 30.30% | 30.50% | ||
First lien | ||||
Cost | ||||
Senior secured debt | $ 101,600 | $ 116,600 | ||
Fair Value | ||||
Senior secured debt | $ 101,600 | $ 116,600 | ||
Fair Value Percentage of Investment Portfolio | 18.20% | 25.60% | ||
Fair Value Percentage of Net Assets | 17.40% | 23.30% | ||
Second lien | ||||
Cost | ||||
Senior secured debt | $ 75,342 | $ 35,942 | ||
Fair Value | ||||
Senior secured debt | $ 75,342 | $ 35,942 | ||
Fair Value Percentage of Investment Portfolio | 13.40% | 7.90% | ||
Fair Value Percentage of Net Assets | 12.90% | 7.20% | ||
Equity | ||||
Cost | ||||
Equity | $ 297,025 | $ 235,212 | ||
Fair Value | ||||
Equity | $ 382,552 | $ 303,455 | ||
Fair Value Percentage of Investment Portfolio | 68.40% | 66.50% | ||
Fair Value Percentage of Net Assets | 65.60% | 60.70% | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
Investments - Industry and Geog
Investments - Industry and Geographic Dispersion of Investment Portfolio as Percentage of Total Fair Value of Investments (Detail) | Jun. 30, 2022 | Dec. 31, 2021 |
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 100% | 100% |
Engineered Products | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 17.30% | 2.80% |
Real Estate Services | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 14.20% | 17.20% |
Commercial and Professional Services | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 13.50% | 15.80% |
Visual Safety Solutions | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 13.90% | 15.20% |
Information Services and Advisory Solutions | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 10.20% | 12.10% |
Healthcare Supplies | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 9.30% | 10.60% |
Sanitation Products | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 8.70% | 11.10% |
Hobby Goods and Supplies | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 6.90% | 8.70% |
Business Services | ||
Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 6% | 6.50% |
Investments - Summary of Operat
Investments - Summary of Operating and Balance Sheet Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||||
Expenses | $ (5,667) | $ (5,620) | $ (11,951) | $ (9,808) | |
Income tax (expense) benefit | (221) | (226) | (699) | (159) | |
Net increase in net assets resulting from operations | 9,013 | 17,201 | 24,132 | 33,601 | |
Lawn Doctor, Inc. | |||||
Income Statement [Abstract] | |||||
Revenues | 11,882 | 10,995 | 21,546 | 19,789 | |
Expenses | (10,404) | (9,478) | (19,272) | (17,456) | |
Income (loss) before taxes | 1,478 | 1,517 | 2,274 | 2,333 | |
Income tax (expense) benefit | (352) | (388) | (555) | (612) | |
Consolidated net income (loss) | 1,126 | 1,129 | 1,719 | 1,721 | |
Net loss attributable to non-controlling interests | (6) | 13 | 33 | 88 | |
Net increase in net assets resulting from operations | 1,120 | 1,142 | 1,752 | 1,809 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 10,736 | 10,736 | $ 13,926 | ||
Non-current assets | 90,316 | 90,316 | 92,309 | ||
Current liabilities | 6,730 | 6,730 | 7,961 | ||
Non-current liabilities | 63,461 | 63,461 | 63,576 | ||
Non-controlling interests | (533) | (533) | (500) | ||
Stockholders’ equity | $ 31,394 | $ 31,394 | $ 35,198 | ||
Ownership percentage | 61% | 61% | 61% | ||
Polyform Products, Co. | |||||
Income Statement [Abstract] | |||||
Revenues | $ 7,642 | 4,732 | $ 13,465 | 11,525 | |
Expenses | (6,205) | (4,400) | (11,596) | (9,712) | |
Income (loss) before taxes | 1,437 | 332 | 1,869 | 1,813 | |
Income tax (expense) benefit | (410) | (95) | (534) | (518) | |
Consolidated net income (loss) | 1,027 | 237 | 1,335 | 1,295 | |
Net loss attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net increase in net assets resulting from operations | 1,027 | 237 | 1,335 | 1,295 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 11,484 | 11,484 | $ 9,940 | ||
Non-current assets | 28,093 | 28,093 | 28,948 | ||
Current liabilities | 2,419 | 2,419 | 2,290 | ||
Non-current liabilities | 21,490 | 21,490 | 21,557 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 15,668 | $ 15,668 | $ 15,041 | ||
Ownership percentage | 87% | 87% | 87% | ||
Roundtables | |||||
Income Statement [Abstract] | |||||
Revenues | $ 3,895 | 3,368 | $ 7,438 | 6,220 | |
Expenses | (3,359) | (3,104) | (7,083) | (6,075) | |
Income (loss) before taxes | 536 | 264 | 355 | 145 | |
Income tax (expense) benefit | (35) | (57) | 8 | (31) | |
Consolidated net income (loss) | 501 | 207 | 363 | 114 | |
Net loss attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net increase in net assets resulting from operations | 501 | 207 | 363 | 114 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 8,166 | 8,166 | $ 2,043 | ||
Non-current assets | 60,799 | 60,799 | 61,955 | ||
Current liabilities | 10,326 | 10,326 | 4,738 | ||
Non-current liabilities | 19,777 | 19,777 | 19,771 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 38,862 | $ 38,862 | $ 39,489 | ||
Ownership percentage | 81% | 81% | 81% | ||
HSH | |||||
Income Statement [Abstract] | |||||
Revenues | $ 8,260 | 8,167 | $ 17,866 | 16,130 | |
Expenses | (8,059) | (7,622) | (16,826) | (15,157) | |
Income (loss) before taxes | 201 | 545 | 1,040 | 973 | |
Income tax (expense) benefit | (128) | (120) | (313) | (214) | |
Consolidated net income (loss) | 73 | 425 | 727 | 759 | |
Net loss attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net increase in net assets resulting from operations | 73 | 425 | 727 | 759 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 12,868 | 12,868 | $ 14,260 | ||
Non-current assets | 37,651 | 37,651 | 39,653 | ||
Current liabilities | 4,698 | 4,698 | 7,341 | ||
Non-current liabilities | 28,643 | 28,643 | 28,536 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 17,178 | $ 17,178 | $ 18,036 | ||
Ownership percentage | 75% | 75% | 75% | ||
ATA | |||||
Income Statement [Abstract] | |||||
Revenues | $ 17,214 | 20,033 | $ 31,372 | 20,033 | |
Expenses | (15,607) | (16,049) | (31,181) | (16,049) | |
Income (loss) before taxes | 1,607 | 3,984 | 191 | 3,984 | |
Income tax (expense) benefit | 0 | 0 | 0 | ||
Consolidated net income (loss) | 1,607 | 3,984 | 191 | 3,984 | |
Net loss attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net increase in net assets resulting from operations | 1,607 | $ 3,984 | 191 | $ 3,984 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 7,308 | 7,308 | $ 10,029 | ||
Non-current assets | 90,854 | 90,854 | 90,510 | ||
Current liabilities | 6,798 | 6,798 | 9,002 | ||
Non-current liabilities | 44,262 | 44,262 | 43,458 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 47,102 | $ 47,102 | $ 48,079 | ||
Ownership percentage | 75% | 75% | 75% | ||
Douglas | |||||
Income Statement [Abstract] | |||||
Revenues | $ 8,047 | $ 13,446 | |||
Expenses | (6,883) | (12,707) | |||
Income (loss) before taxes | 1,164 | 739 | |||
Income tax (expense) benefit | (285) | (181) | |||
Consolidated net income (loss) | 879 | 558 | |||
Net loss attributable to non-controlling interests | 0 | 0 | |||
Net increase in net assets resulting from operations | 879 | 558 | |||
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 13,412 | 13,412 | $ 13,177 | ||
Non-current assets | 35,829 | 35,829 | 40,311 | ||
Current liabilities | 4,954 | 4,954 | 4,159 | ||
Non-current liabilities | 15,393 | 15,393 | 15,711 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 28,894 | $ 28,894 | $ 33,618 | ||
Ownership percentage | 90% | 90% | 90% | ||
Clarion | |||||
Income Statement [Abstract] | |||||
Revenues | $ 2,814 | $ 6,433 | |||
Expenses | (3,210) | (6,043) | |||
Income (loss) before taxes | (396) | 390 | |||
Income tax (expense) benefit | 115 | (113) | |||
Consolidated net income (loss) | (281) | 277 | |||
Net loss attributable to non-controlling interests | 0 | 0 | |||
Net increase in net assets resulting from operations | (281) | 277 | |||
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 3,122 | 3,122 | $ 3,084 | ||
Non-current assets | 70,282 | 70,282 | 66,182 | ||
Current liabilities | 406 | 406 | 420 | ||
Non-current liabilities | 22,500 | 22,500 | 22,500 | ||
Non-controlling interests | 0 | 0 | 0 | ||
Stockholders’ equity | $ 50,498 | $ 50,498 | $ 46,346 | ||
Ownership percentage | 98% | 98% | 99% | ||
Vektek | |||||
Income Statement [Abstract] | |||||
Revenues | $ 5,415 | $ 5,415 | |||
Expenses | (6,552) | (6,552) | |||
Income (loss) before taxes | (1,137) | (1,137) | |||
Income tax (expense) benefit | (8) | (8) | |||
Consolidated net income (loss) | (1,145) | (1,145) | |||
Net loss attributable to non-controlling interests | 0 | 0 | |||
Net increase in net assets resulting from operations | (1,145) | (1,145) | |||
Balance Sheet Related Disclosures [Abstract] | |||||
Current assets | 13,106 | 13,106 | |||
Non-current assets | 104,828 | 104,828 | |||
Current liabilities | 2,386 | 2,386 | |||
Non-current liabilities | 49,191 | 49,191 | |||
Non-controlling interests | 0 | 0 | |||
Stockholders’ equity | $ 66,357 | $ 66,357 | |||
Ownership percentage | 84% | 84% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Investments Categorization in Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | $ 559,494 | [1],[2] | $ 455,997 | [3],[4] |
Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | 0 | 0 | ||
Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | 0 | 0 | ||
Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | 559,494 | 455,997 | ||
Total Senior Secured Notes | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 176,942 | 152,542 | ||
Total investments | 176,942 | [1],[2] | 152,542 | [3],[4] |
Total Senior Secured Notes | Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 0 | 0 | ||
Total Senior Secured Notes | Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 0 | 0 | ||
Total Senior Secured Notes | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 176,942 | 152,542 | ||
Equity | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity | 382,552 | 303,455 | ||
Total investments | 382,552 | [1],[2] | 303,455 | [3],[4] |
Equity | Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity | 0 | 0 | ||
Equity | Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity | 0 | 0 | ||
Equity | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity | $ 382,552 | $ 303,455 | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Unobservable Inputs Used in Fair Value Measurement of Investments (Detail) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | $ 559,494 | [1],[2] | $ 455,997 | [3],[4] |
Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Total investments | 559,494 | 455,997 | ||
Discounted Cash Flow | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 152,542 | 130,042 | ||
Equity | 325,624 | 256,695 | ||
Transaction Precedent | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior secured debt | 24,400 | 22,500 | ||
Equity | $ 56,928 | $ 46,760 | ||
Minimum | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 0.095 | 0.085 | ||
Measurement input, Equity Securities | 0.095 | 0.085 | ||
Minimum | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 7 | 4.1 | ||
Measurement input, Equity Securities | 7 | 4.1 | ||
Minimum | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 6.5 | 6 | ||
Measurement input, Equity Securities | 6.5 | 6 | ||
Maximum | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 0.135 | 0.130 | ||
Measurement input, Equity Securities | 0.135 | 0.130 | ||
Maximum | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 14.6 | 15.2 | ||
Measurement input, Equity Securities | 14.6 | 15.2 | ||
Maximum | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 12.5 | 12.5 | ||
Measurement input, Equity Securities | 12.5 | 12.5 | ||
Weighted Average | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 0.114 | 0.114 | ||
Measurement input, Equity Securities | 0.114 | 0.114 | ||
Weighted Average | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 9.5 | 8.9 | ||
Measurement input, Equity Securities | 9.5 | 8.9 | ||
Weighted Average | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, Debt securities | 10.9 | 9.6 | ||
Measurement input, Equity Securities | 10.9 | 9.6 | ||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliations of Investments of Level 3 Inputs (Detail) - Level 3 - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | $ 455,997 | $ 231,197 |
Additions | 86,450 | 73,000 |
Return of Capital | (237) | |
Net change in unrealized appreciation | 17,284 | 28,787 |
Fair value balance, ending | 559,494 | 332,984 |
Change in net unrealized appreciation on investments held | 17,284 | 28,787 |
Total Senior Secured Notes | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | 152,542 | 78,042 |
Additions | 24,400 | 37,000 |
Return of Capital | 0 | |
Net change in unrealized appreciation | 0 | 0 |
Fair value balance, ending | 176,942 | 115,042 |
Change in net unrealized appreciation on investments held | 0 | 0 |
Equity | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | 303,455 | 153,155 |
Additions | 62,050 | 36,000 |
Return of Capital | (237) | |
Net change in unrealized appreciation | 17,284 | 28,787 |
Fair value balance, ending | 382,552 | 217,942 |
Change in net unrealized appreciation on investments held | $ 17,284 | $ 28,787 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Expiration period (in years) | 3 years | ||||
Reimbursable expense support | $ (1,800) | ||||
Distributions paid | $ 6,636 | $ 5,016 | |||
Amount of expense support received | $ 0 | $ 1,845 | 0 | 4,495 | |
Expense Support Subject to Reimbursement | 3,194 | ||||
Reimbursement of expense support | 722 | 0 | $ 2,352 | $ 0 | |
Manager Sub Manager | |||||
Related Party Transaction [Line Items] | |||||
Percentage of return incentive fees payable | 50% | ||||
Base management fees multiplier for non founder shares | 2% | ||||
Base management fees multiplier for founder shares | 1% | ||||
Annual preference return | 7% | ||||
Annual preference return relates to non-founder shares | 8.75% | ||||
Annual preference return relates to founder shares | 7.777% | ||||
Amount of expense support received | $ 5,100 | $ 4,673 | |||
Manager Sub Manager | Annual Preference Return Less than or Equal to 8.75% or the Non-founder breakpoint | |||||
Related Party Transaction [Line Items] | |||||
Percentage of return incentive fees payable | 20% | ||||
Manager Sub Manager | Annual Preference Return Less Than 7.777% or Founder breakpoint | |||||
Related Party Transaction [Line Items] | |||||
Percentage of return incentive fees payable | 10% | ||||
Expense Support Provided Expense Support and Conditional Reimbursement Agreement | |||||
Related Party Transaction [Line Items] | |||||
Reimbursement of expense support | $ 700 | $ 2,400 | |||
Manager and Sub-Manager | |||||
Related Party Transaction [Line Items] | |||||
Organization and offering costs incurred | $ 3,300 | ||||
Annual preference return relates to non-founder shares | 8.75% | ||||
Annual preference return relates to founder shares | 7.777% | ||||
Shares outstanding end of period (in shares) | 400 | 600 | 400 | 600 | |
Distributions paid | $ 100 | $ 200 | $ 200 | $ 400 | |
Manager and Sub-Manager | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Annual preference return | 7% | ||||
Manager and Sub-Manager | Organization and offering expenses | |||||
Related Party Transaction [Line Items] | |||||
Related party fees and expenses | 716 | 667 | $ 1,246 | 1,053 | |
Manager and Sub-Manager | Base management fees | |||||
Related Party Transaction [Line Items] | |||||
Related party fees and expenses | 2,129 | 1,156 | 3,992 | 1,990 | |
Manager and Sub-Manager | Return incentive fees | |||||
Related Party Transaction [Line Items] | |||||
Related party fees and expenses | 1,741 | 2,577 | 4,633 | 4,870 | |
Manager and Sub-Manager | Expense Support Provided Expense Support and Conditional Reimbursement Agreement | |||||
Related Party Transaction [Line Items] | |||||
Related party fees and expenses | $ 0 | $ 1,845 | $ 0 | $ 4,495 | |
Proceeds from Follow-On Public Offering | Manager and Sub-Manager | |||||
Related Party Transaction [Line Items] | |||||
Maximum percentage of reimbursement from private placement | 1.50% | ||||
Class A | |||||
Related Party Transaction [Line Items] | |||||
Shares outstanding end of period (in shares) | 1,762 | 1,227 | 1,762 | 1,227 | |
Class A | Managing Dealer | |||||
Related Party Transaction [Line Items] | |||||
Commission of shares sold (as a percent) | 6% | 6% | |||
Class A | Proceeds from Follow-On Public Offering | |||||
Related Party Transaction [Line Items] | |||||
Dealer manager fee | 2.50% | 2.50% | |||
Class T | |||||
Related Party Transaction [Line Items] | |||||
Shares outstanding end of period (in shares) | 1,943 | 912 | 1,943 | 912 | |
Class T | Managing Dealer | |||||
Related Party Transaction [Line Items] | |||||
Commission of shares sold (as a percent) | 3% | 3% | |||
Class T | Proceeds from Follow-On Public Offering | |||||
Related Party Transaction [Line Items] | |||||
Dealer manager fee | 1.75% | 1.75% | |||
Annual distribution and fee (as percent) | 1% | 1% | |||
Class D | |||||
Related Party Transaction [Line Items] | |||||
Shares outstanding end of period (in shares) | 1,367 | 624 | 1,367 | 624 | |
Class D | Proceeds from Follow-On Public Offering | |||||
Related Party Transaction [Line Items] | |||||
Annual distribution and fee (as percent) | 0.50% | 0.50% |
Related Party Transactions - Hi
Related Party Transactions - High Water Marks (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class FA | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | $ 29.97 | |
Class FA | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | $ 32.62 | |
Class A | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 28.76 | |
Class A | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 30.78 | |
Class T | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 28.67 | |
Class T | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 30.66 | |
Class D | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 28.24 | |
Class D | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 30.35 | |
Class I | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 29.06 | |
Class I | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | 31.18 | |
Class S | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | $ 30.08 | |
Class S | Forecast | ||
Related Party Transaction [Line Items] | ||
High water mark (in USD per share) | $ 32.84 |
Related Party Transactions, Exp
Related Party Transactions, Expense Support (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Amount of Expense Support Received | $ 0 | $ 1,845 | $ 0 | $ 4,495 |
Expense Support Reimbursed | (1,479) | |||
Expense Support Subject to Reimbursement | 3,194 | |||
Net Investment Income | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Amount of Expense Support Received | (2,352) | $ 4,495 | ||
2019 | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Expense Support Reimbursed | (970) | |||
Expense Support Subject to Reimbursement | 402 | |||
2020 | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Expense Support Reimbursed | (509) | |||
Expense Support Subject to Reimbursement | 2,792 | |||
2018 | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Expense Support Reimbursed | (353) | |||
Manager Sub Manager | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Amount of Expense Support Received | $ 5,100 | 4,673 | ||
Manager Sub Manager | 2019 | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Amount of Expense Support Received | 1,372 | |||
Manager Sub Manager | 2020 | ||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||
Amount of Expense Support Received | $ 3,301 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Managing Dealer | Commissions | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | $ 483 | $ 288 | $ 770 | $ 542 |
Managing Dealer | Dealer manager fees | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 253 | 153 | 401 | 284 |
Managing Dealer | Distribution and shareholder servicing fees | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 180 | 79 | 339 | 143 |
Manager and Sub-Manager | Organization and offering expenses | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 716 | 667 | 1,246 | 1,053 |
Manager and Sub-Manager | Base management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 2,129 | 1,156 | 3,992 | 1,990 |
Manager and Sub-Manager | Return incentive fees | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 1,741 | 2,577 | 4,633 | 4,870 |
Manager and Sub-Manager | Expense Support Provided Expense Support and Conditional Reimbursement Agreement | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 0 | 1,845 | 0 | 4,495 |
Manager and Sub-Manager | Reimbursement of Expense Support | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 722 | 0 | 2,352 | 0 |
Manager | Reimbursement of Third Party Operating Expenses | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | 35 | 28 | 57 | 56 |
Sub-Manager | Reimbursement of Third Party Pursuit Costs | ||||
Related Party Transaction [Line Items] | ||||
Related party fees and expenses | $ 179 | $ 514 | $ 339 | $ 514 |
Related Party Transactions - Am
Related Party Transactions - Amounts Due from (to) Related Parties (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 8,008 | $ 9,922 |
Total return incentive fee | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 4,633 | 7,283 |
Reimbursement of Expense Support | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,352 | 1,831 |
Base management fees | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 767 | 578 |
Organization and offering expenses | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 173 | 176 |
Distribution and shareholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 62 | 53 |
Reimbursement of third-party operating expenses and pursuit costs | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 21 | $ 1 |
Distributions - Declared (Detai
Distributions - Declared (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Distributions Made to Members or Limited Partners [Abstract] | ||||||
Distributions Declared | $ 5,259 | $ 4,928 | $ 3,618 | $ 3,290 | $ 10,187 | $ 6,908 |
Distributions Reinvested | 1,819 | 1,630 | 972 | 789 | 3,449 | 1,761 |
Cash Distributions Net of Distributions Reinvested | $ 3,440 | $ 3,298 | $ 2,646 | $ 2,501 | $ 6,738 | $ 5,147 |
Distributions - Distribution Pe
Distributions - Distribution Per Class (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Class FA | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 |
Class A | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 |
Class T | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 |
Class D | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 |
Class I | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 |
Class S | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 |
Distributions - Declared on GAA
Distributions - Declared on GAAP Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Amount | $ 5,259 | $ 3,618 | $ 10,187 | $ 6,908 |
% of Distributions Declared | 100% | 100% | ||
Amount of expense support received | $ 0 | $ 1,845 | $ 0 | $ 4,495 |
Net Investment Income | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Amount | $ 7,431 | $ 4,833 | ||
% of Distributions Declared | 72.90% | 70% | ||
Amount of expense support received | $ (2,352) | $ 4,495 | ||
Distributions in excess of net investment income | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Amount | $ 2,756 | $ 2,075 | ||
% of Distributions Declared | 27.10% | 30% |
Distributions - Additional Info
Distributions - Additional Information (Detail) - $ / shares | 1 Months Ended | 6 Months Ended | ||
Jul. 28, 2022 | Jul. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class FA | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | ||
Class A | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | ||
Class T | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | ||
Class D | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | ||
Class I | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | ||
Class S | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | ||
Subsequent Event | Class FA | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | ||
Subsequent Event | Class A | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | ||
Subsequent Event | Class T | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | ||
Subsequent Event | Class D | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | ||
Subsequent Event | Class I | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | ||
Subsequent Event | Class S | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 |
Capital Transactions -Additiona
Capital Transactions -Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||
Nov. 01, 2021 USD ($) | Mar. 07, 2018 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2022 USD ($) classOfStock $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Investment Company, Capital Share Transactions [Line Items] | |||||||
Authorized amount per quarter (in percent) | 2.50% | ||||||
Authorized amount per year (in percent) | 10% | ||||||
Repurchase of common shares pursuant to share repurchase program | $ 10,813,000 | $ 877,000 | $ 16,052,000 | $ 2,088,000 | |||
Amount of share requested to be repurchased in excess of proceeds received from its distribution reinvestment plan | 13,000,000 | 600,000 | |||||
Payable for shares repurchased | $ 10,813,000 | $ 878,000 | $ 10,813,000 | $ 878,000 | $ 509,000 | ||
Stock converted (in shares) | shares | 0 | ||||||
Average Net Proceeds per Share | $ / shares | $ 31.36 | $ 30.11 | $ 31.36 | $ 30.11 | |||
Number of classes of stock | classOfStock | 4 | ||||||
Class A | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Repurchase of common shares pursuant to share repurchase program | $ 592,000 | $ 510,000 | |||||
Conversion of stock (in shares) | shares | 19,343 | 0 | |||||
Conversion rate (as a percent) | 100% | ||||||
Average Net Proceeds per Share | $ / shares | 31.15 | 29.73 | $ 31.15 | $ 29.73 | |||
Class T | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Repurchase of common shares pursuant to share repurchase program | $ 157,000 | $ 473,000 | |||||
Stock converted (in shares) | shares | (19,400) | ||||||
Average Net Proceeds per Share | $ / shares | 31.14 | 29.77 | $ 31.14 | $ 29.77 | |||
Class D | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Repurchase of common shares pursuant to share repurchase program | $ 423,000 | $ 142,000 | |||||
Average Net Proceeds per Share | $ / shares | 30.78 | 29.52 | $ 30.78 | $ 29.52 | |||
Class I | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Repurchase of common shares pursuant to share repurchase program | $ 5,486,000 | $ 644,000 | |||||
Average Net Proceeds per Share | $ / shares | 31.57 | $ 30.27 | $ 31.57 | $ 30.27 | |||
Public Offering | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Shares offered (in shares) | $ 1,000,000,000 | ||||||
Sale of stock offering, minimum requirement (in shares) | 5,000 | ||||||
Number of classes of stock | classOfStock | 4 | ||||||
Public Offering | Class A | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Share price (usd per share) | $ / shares | 34.26 | $ 34.26 | |||||
Public Offering | Class T | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Share price (usd per share) | $ / shares | 32.82 | 32.82 | |||||
Public Offering | Class D | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Share price (usd per share) | $ / shares | 30.95 | 30.95 | |||||
Public Offering | Class I | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Share price (usd per share) | $ / shares | $ 31.79 | $ 31.79 | |||||
Distribution Reinvestment Plan | |||||||
Investment Company, Capital Share Transactions [Line Items] | |||||||
Shares offered (in shares) | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 |
Capital Transactions - Summary
Capital Transactions - Summary of Shares Issued and Proceeds Received in Connection with Offerings (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Company, Capital Share Transactions [Line Items] | ||||
Proceeds to Company | $ 1,751 | $ 887 | $ 3,316 | $ 1,645 |
Shares (in shares) | 2,717 | 2,342 | ||
Net Proceeds to Company | $ 85,242 | $ 70,500 | ||
Average Net Proceeds per Share | $ 31.36 | $ 30.11 | $ 31.36 | $ 30.11 |
Receivable for shares sold | $ 12,100 | $ 12,100 | ||
Proceeds from Public Offering | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares issued (in shares) | 2,611 | 2,286 | ||
Gross Proceeds | $ 83,097 | $ 69,681 | ||
Sales Load | (1,171) | (826) | ||
Net Proceeds to Company | $ 81,926 | $ 68,855 | ||
Distribution Reinvestment Plan | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Issuance of common shares through distribution reinvestment plan (in shares) | 106 | 56 | ||
Proceeds to Company | $ 3,316 | $ 1,645 | ||
Class A | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares (in shares) | 301 | 210 | ||
Net Proceeds to Company | $ 9,371 | $ 6,230 | ||
Average Net Proceeds per Share | 31.15 | $ 29.73 | $ 31.15 | $ 29.73 |
Class A | Proceeds from Public Offering | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares issued (in shares) | 276 | 189 | ||
Gross Proceeds | $ 9,250 | $ 6,053 | ||
Sales Load | (659) | (446) | ||
Net Proceeds to Company | $ 8,591 | $ 5,607 | ||
Class A | Distribution Reinvestment Plan | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Issuance of common shares through distribution reinvestment plan (in shares) | 25 | 21 | ||
Proceeds to Company | $ 780 | $ 623 | ||
Class T | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares (in shares) | 359 | 273 | ||
Net Proceeds to Company | $ 11,164 | $ 8,139 | ||
Average Net Proceeds per Share | 31.14 | 29.77 | $ 31.14 | $ 29.77 |
Class T | Proceeds from Public Offering | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares issued (in shares) | 342 | 266 | ||
Gross Proceeds | $ 11,154 | $ 8,304 | ||
Sales Load | (512) | (380) | ||
Net Proceeds to Company | $ 10,642 | $ 7,924 | ||
Class T | Distribution Reinvestment Plan | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Issuance of common shares through distribution reinvestment plan (in shares) | 17 | 7 | ||
Proceeds to Company | $ 522 | $ 215 | ||
Class D | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares (in shares) | 371 | 175 | ||
Net Proceeds to Company | $ 11,445 | $ 5,155 | ||
Average Net Proceeds per Share | 30.78 | 29.52 | $ 30.78 | $ 29.52 |
Class D | Proceeds from Public Offering | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares issued (in shares) | 360 | 169 | ||
Gross Proceeds | $ 11,093 | $ 4,996 | ||
Sales Load | 0 | 0 | ||
Net Proceeds to Company | $ 11,093 | $ 4,996 | ||
Class D | Distribution Reinvestment Plan | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Issuance of common shares through distribution reinvestment plan (in shares) | 11 | 6 | ||
Proceeds to Company | $ 352 | $ 159 | ||
Class I | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares (in shares) | 1,686 | 1,684 | ||
Net Proceeds to Company | $ 53,262 | $ 50,976 | ||
Average Net Proceeds per Share | $ 31.57 | $ 30.27 | $ 31.57 | $ 30.27 |
Class I | Proceeds from Public Offering | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Shares issued (in shares) | 1,633 | 1,662 | ||
Gross Proceeds | $ 51,600 | $ 50,328 | ||
Sales Load | 0 | 0 | ||
Net Proceeds to Company | $ 51,600 | $ 50,328 | ||
Class I | Distribution Reinvestment Plan | ||||
Investment Company, Capital Share Transactions [Line Items] | ||||
Issuance of common shares through distribution reinvestment plan (in shares) | 53 | 22 | ||
Proceeds to Company | $ 1,662 | $ 648 |
Capital Transactions Capital Tr
Capital Transactions Capital Transactions - Summary of Shares Repurchased (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 493 | 69 | ||
Total Consideration | $ 10,813 | $ 877 | $ 16,052 | $ 2,088 |
Average price paid per share (in dollars per share) | $ 32.55 | $ 30.32 | $ 32.55 | $ 30.32 |
Class FA | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 282 | 10 | ||
Total Consideration | $ 9,366 | $ 319 | ||
Average price paid per share (in dollars per share) | 33.21 | 31.89 | $ 33.21 | $ 31.89 |
Class A | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 19 | 17 | ||
Total Consideration | $ 592 | $ 510 | ||
Average price paid per share (in dollars per share) | 31.28 | 29.85 | $ 31.28 | $ 29.85 |
Class T | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 5 | 16 | ||
Total Consideration | $ 157 | $ 473 | ||
Average price paid per share (in dollars per share) | 30.90 | 29.84 | $ 30.90 | $ 29.84 |
Class D | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 14 | 5 | ||
Total Consideration | $ 423 | $ 142 | ||
Average price paid per share (in dollars per share) | 30.94 | 29.29 | $ 30.94 | $ 29.29 |
Class I | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 172 | 21 | ||
Total Consideration | $ 5,486 | $ 644 | ||
Average price paid per share (in dollars per share) | 31.77 | $ 30.55 | $ 31.77 | $ 30.55 |
Class S | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 1 | |||
Total Consideration | $ 28 | |||
Average price paid per share (in dollars per share) | $ 33.74 | $ 33.74 |
Borrowings (Details)
Borrowings (Details) | 1 Months Ended | |
Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||
Fee required on each borrowing | 0.0005 | |
Minimum cash balance | $ 2,500,000 | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 25,000,000 | |
Maximum fee | $ 20,000 | |
Maximum fee term limitation | 364 days | |
Line of credit minimum interest rate | 3% | |
Amount borrowed | $ 0 | |
Line of Credit | Maximum | ||
Line of Credit Facility [Line Items] | ||
Term (in days) | 180 days | |
Line of Credit | Minimum | ||
Line of Credit Facility [Line Items] | ||
Term (in days) | 60 days | |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.75% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 334 | $ 140 | $ 116 | $ 140 |
Deferred tax (benefit) expense | (113) | 86 | 583 | 19 |
Total income tax expense | $ 221 | $ 226 | $ 699 | $ 159 |
Effective income tax rate (in percent) | 2.80% | 0.40% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Carryforwards for net operating loss | $ 708 | $ 533 |
Other | 21 | 18 |
Valuation Allowance | (25) | (22) |
Total deferred tax assets | 704 | 529 |
Deferred tax liabilities: | ||
Unrealized appreciation on investments | (3,164) | (2,406) |
Total deferred tax liabilities | (3,164) | (2,406) |
Deferred tax liabilities, net | $ (2,460) | $ (1,877) |
Concentrations of Risk (Details
Concentrations of Risk (Details) | Jun. 30, 2022 portfolioCompany |
Risks and Uncertainties [Abstract] | |
Number of portfolio companies which met at least one of the significant tests under Rule 8-03(b) of Regulation S-X | 1 |
Financial Highlights - Schedule
Financial Highlights - Schedule of Financial Highlights (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net investment income (usd per share) | $ 0.20 | $ 0.20 | $ 0.44 | $ 0.43 | |||||||
Net assets, end of period | $ 583,444 | [1],[2] | $ 404,067 | $ 583,444 | [1],[2] | $ 404,067 | $ 541,710 | $ 500,309 | [3],[4] | $ 346,477 | $ 308,962 |
Distributions declared | $ 5,259 | $ 3,618 | $ 10,187 | $ 6,908 | |||||||
Ratios to average net assets: | |||||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 0% | ||||||||||
Class FA | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 32.62 | $ 29.97 | |||||||||
Net investment income, before expense support (usd per shares) | 0.85 | 0.30 | |||||||||
Reimbursement of Expense Support (usd per share) | (0.29) | ||||||||||
Expense support (usd per share) | 0.25 | ||||||||||
Net investment income (usd per share) | 0.56 | 0.55 | |||||||||
Net realized and unrealized gains (usd per share) | 0.99 | 2.51 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.55 | 3.06 | |||||||||
Distributions from net investment income (usd per share) | (0.63) | (0.63) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.63) | (0.63) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 33.54 | $ 32.40 | $ 33.54 | $ 32.40 | |||||||
Net assets, end of period | $ 143,454 | $ 148,004 | $ 143,454 | $ 148,004 | 148,717 | ||||||
Average net assets | $ 148,510 | $ 142,413 | |||||||||
Shares outstanding end of period (in shares) | 4,277 | 4,569 | 4,277 | 4,569 | |||||||
Distributions declared | $ 2,806 | $ 2,861 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 5.31% | 10.40% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 4.68% | 10.20% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 0.68% | 0.81% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 1.19% | 1.81% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 2.06% | 0.98% | |||||||||
Net investment income before total return incentive fee (in percent) | 2.20% | 1.95% | |||||||||
Net investment income (in percent) | 1.69% | 1.77% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 83% | ||||||||||
Class A | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 30.78 | $ 28.76 | |||||||||
Net investment income, before expense support (usd per shares) | 0.49 | (0.18) | |||||||||
Reimbursement of Expense Support (usd per share) | (0.18) | ||||||||||
Expense support (usd per share) | 0.46 | ||||||||||
Net investment income (usd per share) | 0.31 | 0.28 | |||||||||
Net realized and unrealized gains (usd per share) | 1 | 2.51 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.31 | 2.79 | |||||||||
Distributions from net investment income (usd per share) | (0.63) | (0.63) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.63) | (0.63) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 31.46 | $ 30.92 | $ 31.46 | $ 30.92 | |||||||
Net assets, end of period | $ 55,433 | $ 37,938 | $ 55,433 | $ 37,938 | 44,958 | ||||||
Average net assets | $ 49,761 | $ 33,429 | |||||||||
Shares outstanding end of period (in shares) | 1,762 | 1,227 | 1,762 | 1,227 | |||||||
Distributions declared | $ 997 | $ 699 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 5.25% | 10.22% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 4.27% | 9.79% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 1.59% | 1.61% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 2.64% | 3.60% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 3.20% | 2.04% | |||||||||
Net investment income before total return incentive fee (in percent) | 2.05% | 1.37% | |||||||||
Net investment income (in percent) | 1% | 0.95% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 79% | ||||||||||
Class T | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 30.66 | $ 28.67 | |||||||||
Net investment income, before expense support (usd per shares) | 0.33 | (0.35) | |||||||||
Reimbursement of Expense Support (usd per share) | 0 | ||||||||||
Expense support (usd per share) | 0.38 | ||||||||||
Net investment income (usd per share) | 0.33 | 0.03 | |||||||||
Net realized and unrealized gains (usd per share) | 0.98 | 2.53 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.31 | 2.56 | |||||||||
Distributions from net investment income (usd per share) | (0.50) | (0.50) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.50) | (0.50) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 31.47 | $ 30.73 | $ 31.47 | $ 30.73 | |||||||
Net assets, end of period | $ 61,152 | $ 28,029 | $ 61,152 | $ 28,029 | 49,328 | ||||||
Average net assets | $ 52,814 | $ 22,268 | |||||||||
Shares outstanding end of period (in shares) | 1,943 | 912 | 1,943 | 912 | |||||||
Distributions declared | $ 849 | $ 373 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 5.27% | 9.50% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 4.30% | 9.01% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 2.10% | 2.43% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 3.17% | 4.31% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 3.17% | 3.03% | |||||||||
Net investment income before total return incentive fee (in percent) | 2.14% | 0.70% | |||||||||
Net investment income (in percent) | 1.06% | 0.10% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 68% | ||||||||||
Class D | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 30.35 | $ 28.24 | |||||||||
Net investment income, before expense support (usd per shares) | 0.38 | (0.27) | |||||||||
Reimbursement of Expense Support (usd per share) | 0 | ||||||||||
Expense support (usd per share) | 0.42 | ||||||||||
Net investment income (usd per share) | 0.38 | 0.15 | |||||||||
Net realized and unrealized gains (usd per share) | 0.98 | 2.52 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.36 | 2.67 | |||||||||
Distributions from net investment income (usd per share) | (0.56) | (0.56) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.56) | (0.56) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 31.15 | $ 30.35 | $ 31.15 | $ 30.35 | |||||||
Net assets, end of period | $ 42,574 | $ 18,921 | $ 42,574 | $ 18,921 | 30,607 | ||||||
Average net assets | $ 35,100 | $ 14,736 | |||||||||
Shares outstanding end of period (in shares) | 1,367 | 624 | 1,367 | 624 | |||||||
Distributions declared | $ 641 | $ 282 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 5.50% | 10.03% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 4.53% | 9.56% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 2.02% | 2.13% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 3.15% | 4.11% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 3.15% | 2.68% | |||||||||
Net investment income before total return incentive fee (in percent) | 2.38% | 1.05% | |||||||||
Net investment income (in percent) | 1.25% | 0.50% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 72% | ||||||||||
Class I | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 31.18 | $ 29.06 | |||||||||
Net investment income, before expense support (usd per shares) | 0.46 | (0.32) | |||||||||
Reimbursement of Expense Support (usd per share) | (0.13) | ||||||||||
Expense support (usd per share) | 0.64 | ||||||||||
Net investment income (usd per share) | 0.33 | 0.32 | |||||||||
Net realized and unrealized gains (usd per share) | 1.01 | 2.53 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.34 | 2.85 | |||||||||
Distributions from net investment income (usd per share) | (0.63) | (0.63) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.63) | (0.63) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 31.89 | $ 31.28 | $ 31.89 | $ 31.28 | |||||||
Net assets, end of period | $ 220,797 | $ 113,537 | $ 220,797 | $ 113,537 | 168,704 | ||||||
Average net assets | $ 191,764 | $ 77,410 | |||||||||
Shares outstanding end of period (in shares) | 6,924 | 3,629 | 6,924 | 3,629 | |||||||
Distributions declared | $ 3,790 | $ 1,586 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 5.27% | 9.90% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 4.32% | 9.90% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 1.70% | 2.37% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 2.75% | 4.34% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 3.16% | 2.23% | |||||||||
Net investment income before total return incentive fee (in percent) | 2.10% | 1.05% | |||||||||
Net investment income (in percent) | 1.04% | 1.05% | |||||||||
Class S | |||||||||||
OPERATING PERFORMANCE PER SHARE | |||||||||||
Net Asset Value, Beginning of Period (usd per share) | $ 32.84 | $ 30.08 | |||||||||
Net investment income, before expense support (usd per shares) | 0.81 | 0.23 | |||||||||
Reimbursement of Expense Support (usd per share) | 0 | ||||||||||
Expense support (usd per share) | 0.38 | ||||||||||
Net investment income (usd per share) | 0.81 | 0.61 | |||||||||
Net realized and unrealized gains (usd per share) | 0.99 | 2.50 | |||||||||
Net increase resulting from investment operations (usd per share) | 1.80 | 3.11 | |||||||||
Distributions from net investment income (usd per share) | (0.63) | (0.63) | |||||||||
Net Decrease Resulting From Distributions to Shareholders (usd per share) | (0.63) | (0.63) | |||||||||
Net Asset Value, End of Period (usd per shares) | $ 34.01 | $ 32.56 | $ 34.01 | $ 32.56 | |||||||
Net assets, end of period | $ 60,034 | $ 57,639 | $ 60,034 | $ 57,639 | $ 57,995 | ||||||
Average net assets | $ 58,971 | $ 55,304 | |||||||||
Shares outstanding end of period (in shares) | 1,765 | 1,770 | 1,765 | 1,770 | |||||||
Distributions declared | $ 1,104 | $ 1,107 | |||||||||
Total investment return based on net asset value before total return incentive fee (in percent) | 6.13% | 10.43% | |||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 5.51% | 10.43% | |||||||||
Ratios to average net assets: | |||||||||||
Total operating expenses before total return incentive fee (in percent) | 0.77% | 1.01% | |||||||||
Total operating expenses before reimbursement of Expense Support (in percent) | 1.37% | 2% | |||||||||
Total operating expenses after reimbursement of Expense Support (in percent) | 1.37% | 0.79% | |||||||||
Net investment income before total return incentive fee (in percent) | 3.02% | 1.96% | |||||||||
Net investment income (in percent) | 2.42% | 1.96% | |||||||||
Common Class I and Class S | |||||||||||
Ratios to average net assets: | |||||||||||
Total investment return based on net asset value after total return incentive fee (in percent) | 100% | ||||||||||
[1]Percentages represent fair value as a percentage of net assets for each investment category.[2]Security may be an obligation of one or more entities affiliated with the named company.[3]Percentages represent fair value as a percentage of net assets for each investment category.[4]Security may be an obligation of one or more entities affiliated with the named company. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |||
Aug. 12, 2022 | Jul. 28, 2022 | Jul. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class FA | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | |||
Class A | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||
Class T | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | |||
Class D | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | |||
Class I | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||
Class S | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | |||
Subsequent Event | Blue Ridge | Equity | |||||
Subsequent Event [Line Items] | |||||
Additional equity investment | $ 2.9 | ||||
Subsequent Event | Class FA | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | |||
Subsequent Event | Class A | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||
Subsequent Event | Class T | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | |||
Subsequent Event | Class D | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | |||
Subsequent Event | Class I | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||
Subsequent Event | Class S | |||||
Subsequent Event [Line Items] | |||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 |
Subsequent Events - Summary of
Subsequent Events - Summary of New Public Offering Prices and Applicable Upfront Selling Commissions and Dealer Manager Fees (Detail) - $ / shares | Jul. 28, 2022 | Aug. 10, 2022 | Jun. 30, 2022 | Jun. 30, 2021 |
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | $ 31.36 | $ 30.11 | ||
Class A | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 31.15 | 29.73 | ||
Class T | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 31.14 | 29.77 | ||
Class D | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 30.78 | 29.52 | ||
Class I | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | $ 31.57 | $ 30.27 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | $ 31.62 | |||
Subsequent Event | Class A | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | $ 34.38 | 31.46 | ||
Selling Commissions, Per Share (in dollars per share) | 2.06 | |||
Dealer Manager Fees, Per Share (in dollars per share) | 0.86 | |||
Subsequent Event | Class T | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 33.04 | 31.46 | ||
Selling Commissions, Per Share (in dollars per share) | 0.99 | |||
Dealer Manager Fees, Per Share (in dollars per share) | 0.58 | |||
Subsequent Event | Class D | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 31.15 | 31.14 | ||
Selling Commissions, Per Share (in dollars per share) | 0 | |||
Dealer Manager Fees, Per Share (in dollars per share) | 0 | |||
Subsequent Event | Class I | ||||
Subsequent Event [Line Items] | ||||
Public Offering Price, Per Share (in dollars per share) | 31.89 | $ 31.89 | ||
Selling Commissions, Per Share (in dollars per share) | 0 | |||
Dealer Manager Fees, Per Share (in dollars per share) | $ 0 |
Subsequent Events - Gross Proce
Subsequent Events - Gross Proceeds (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Aug. 11, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 10, 2022 | Jul. 28, 2022 | |
Subsequent Event [Line Items] | |||||
Shares (in shares) | 2,717,000 | 2,342,000 | |||
Net Proceeds to Company | $ 85,242 | $ 70,500 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 31.36 | $ 30.11 | |||
Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 2,611,000 | 2,286,000 | |||
Gross Proceeds | $ 83,097 | $ 69,681 | |||
Sales Load | (1,171) | (826) | |||
Net Proceeds to Company | $ 81,926 | $ 68,855 | |||
Class A | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 301,000 | 210,000 | |||
Net Proceeds to Company | $ 9,371 | $ 6,230 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 31.15 | $ 29.73 | |||
Class A | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 276,000 | 189,000 | |||
Gross Proceeds | $ 9,250 | $ 6,053 | |||
Sales Load | (659) | (446) | |||
Net Proceeds to Company | $ 8,591 | $ 5,607 | |||
Class T | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 359,000 | 273,000 | |||
Net Proceeds to Company | $ 11,164 | $ 8,139 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 31.14 | $ 29.77 | |||
Class T | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 342,000 | 266,000 | |||
Gross Proceeds | $ 11,154 | $ 8,304 | |||
Sales Load | (512) | (380) | |||
Net Proceeds to Company | $ 10,642 | $ 7,924 | |||
Class D | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 371,000 | 175,000 | |||
Net Proceeds to Company | $ 11,445 | $ 5,155 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 30.78 | $ 29.52 | |||
Class D | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 360,000 | 169,000 | |||
Gross Proceeds | $ 11,093 | $ 4,996 | |||
Sales Load | 0 | 0 | |||
Net Proceeds to Company | $ 11,093 | $ 4,996 | |||
Class I | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 1,686,000 | 1,684,000 | |||
Net Proceeds to Company | $ 53,262 | $ 50,976 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 31.57 | $ 30.27 | |||
Class I | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 1,633,000 | 1,662,000 | |||
Gross Proceeds | $ 51,600 | $ 50,328 | |||
Sales Load | 0 | 0 | |||
Net Proceeds to Company | $ 51,600 | $ 50,328 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 431,000 | ||||
Net Proceeds to Company | $ 13,618 | ||||
Average Net Proceeds Per Share (in dollars per share) | $ 31.62 | ||||
Subsequent Event | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 391,000 | ||||
Gross Proceeds | $ 12,679 | ||||
Sales Load | (303) | ||||
Net Proceeds to Company | $ 12,376 | ||||
Subsequent Event | Distribution Reinvestment Plan | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 40,000 | ||||
Gross Proceeds | $ 1,242 | ||||
Subsequent Event | Class A | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 94,000 | ||||
Net Proceeds to Company | $ 2,955 | ||||
Average Net Proceeds Per Share (in dollars per share) | 31.46 | $ 34.38 | |||
Subsequent Event | Class A | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 86,000 | ||||
Gross Proceeds | $ 2,923 | ||||
Sales Load | (212) | ||||
Net Proceeds to Company | $ 2,711 | ||||
Subsequent Event | Class A | Distribution Reinvestment Plan | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 8,000 | ||||
Gross Proceeds | $ 244 | ||||
Subsequent Event | Class T | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 65,000 | ||||
Net Proceeds to Company | $ 2,039 | ||||
Average Net Proceeds Per Share (in dollars per share) | 31.46 | 33.04 | |||
Subsequent Event | Class T | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 59,000 | ||||
Gross Proceeds | $ 1,933 | ||||
Sales Load | (91) | ||||
Net Proceeds to Company | $ 1,842 | ||||
Subsequent Event | Class T | Distribution Reinvestment Plan | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 6,000 | ||||
Gross Proceeds | $ 197 | ||||
Subsequent Event | Class D | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 60,000 | ||||
Net Proceeds to Company | $ 1,865 | ||||
Average Net Proceeds Per Share (in dollars per share) | 31.14 | 31.15 | |||
Subsequent Event | Class D | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 55,000 | ||||
Gross Proceeds | $ 1,719 | ||||
Sales Load | 0 | ||||
Net Proceeds to Company | $ 1,719 | ||||
Subsequent Event | Class D | Distribution Reinvestment Plan | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 5,000 | ||||
Gross Proceeds | $ 146 | ||||
Subsequent Event | Class I | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 212,000 | ||||
Net Proceeds to Company | $ 6,759 | ||||
Average Net Proceeds Per Share (in dollars per share) | $ 31.89 | $ 31.89 | |||
Subsequent Event | Class I | Proceeds from Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 191,000 | ||||
Gross Proceeds | $ 6,104 | ||||
Sales Load | 0 | ||||
Net Proceeds to Company | $ 6,104 | ||||
Subsequent Event | Class I | Distribution Reinvestment Plan | |||||
Subsequent Event [Line Items] | |||||
Shares (in shares) | 21,000 | ||||
Gross Proceeds | $ 655 |