Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-56162 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Registrant incorporates by reference portions of the CNL Strategic Capital, LLC definitive proxy statement for the 2024 Annual Meeting of Shareholders (Items 10, 11, 12, 13 and 14 of Part III) to be filed within 120 days after December 31, 2023. Certain exhibits previously filed with the Securities and Exchange Commission are incorporated by reference into Part IV of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001684682 | ||
Entity Public Float | $ 0 | ||
Class FA | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class FA Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 4,179,328 | ||
Class A | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class A Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 5,608,795 | ||
Class T | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class T Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 2,669,078 | ||
Class D | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class D Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 2,710,429 | ||
Class I | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class I Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 12,629,075 | ||
Class S | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class S Shares of Limited Liability Company Interests, $0.001 par value per share | ||
Entity Common Stock, Shares Outstanding | 1,748,133 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Orlando, Florida |
CONSOLIDATED STATEMENTS OF ASSE
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Assets | ||||
Total investments at fair value | $ 876,843 | [1],[2] | $ 695,079 | [3],[4] |
Cash and cash equivalents | 134,453 | 36,837 | ||
Receivable for shares sold | 1,411 | 0 | ||
Prepaid expenses and other assets | 440 | 627 | ||
Total assets | 1,013,147 | 732,543 | ||
Liabilities | ||||
Due to related parties (Note 5) | 15,787 | 15,609 | ||
Payable for shares repurchased | 8,224 | 2,368 | ||
Deferred tax liabilities, net | 7,462 | 4,247 | ||
Accounts payable and other accrued expenses | 2,325 | 1,220 | ||
Total liabilities | 33,798 | 23,444 | ||
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 | 851,529 | 615,383 | ||
Distributable earnings | 127,791 | 93,695 | ||
Total Members’ Equity | 979,349 | 709,099 | ||
Class FA | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 4 | $ 4 | ||
Net asset value per share at end of period ( in dollars per share) | $ 36.67 | $ 34.90 | ||
Class A | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 5 | $ 2 | ||
Net asset value per share at end of period ( in dollars per share) | $ 33.57 | $ 32.45 | ||
Class T | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 3 | $ 2 | ||
Net asset value per share at end of period ( in dollars per share) | $ 33.64 | $ 32.46 | ||
Class D | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 3 | $ 2 | ||
Net asset value per share at end of period ( in dollars per share) | $ 33.31 | $ 32.11 | ||
Class I | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 12 | $ 9 | ||
Net asset value per share at end of period ( in dollars per share) | $ 34.06 | $ 32.88 | ||
Class S | ||||
Members’ Equity (Net Assets) | ||||
Common shares | $ 2 | $ 2 | ||
Net asset value per share at end of period ( in dollars per share) | $ 37.25 | $ 35.39 | ||
Portfolio company investments | ||||
Assets | ||||
Total investments at fair value | $ 876,843 | $ 588,837 | [3],[4] | |
U.S. Treasury Bills | ||||
Assets | ||||
Total investments at fair value | $ 0 | $ 106,242 | ||
[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. |
CONSOLIDATED STATEMENTS OF AS_2
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Investment at amortized cost | $ 719,976 | [1],[2] | $ 583,117 | [3],[4] |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||
Class FA | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 7,400,000 | 7,400,000 | ||
Common stock, shares issued (in shares) | 4,844,000 | 4,844,000 | ||
Common stock, shares outstanding (in shares) | 4,179,000 | 4,244,000 | ||
Class A | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660,000 | 94,660,000 | ||
Common stock, shares issued (in shares) | 5,328,000 | 2,245,000 | ||
Common stock, shares outstanding (in shares) | 5,152,000 | 2,195,000 | ||
Class T | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 558,620,000 | 558,620,000 | ||
Common stock, shares issued (in shares) | 3,179,000 | 2,458,000 | ||
Common stock, shares outstanding (in shares) | 2,629,000 | 2,343,000 | ||
Class D | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660,000 | 94,660,000 | ||
Common stock, shares issued (in shares) | 2,714,000 | 1,999,000 | ||
Common stock, shares outstanding (in shares) | 2,632,000 | 1,957,000 | ||
Class I | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 94,660,000 | 94,660,000 | ||
Common stock, shares issued (in shares) | 12,846,000 | 9,131,000 | ||
Common stock, shares outstanding (in shares) | 12,095,000 | 8,772,000 | ||
Class S | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock, shares issued (in shares) | 1,770,000 | 1,770,000 | ||
Common stock, shares outstanding (in shares) | 1,748,000 | 1,765,000 | ||
Portfolio company investments | ||||
Investment at amortized cost | $ 719,976 | $ 476,901 | [3],[4] | |
U.S. Treasury Bills | ||||
Investment at amortized cost | $ 0 | $ 106,216 | ||
[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. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Income | ||
Interest income | $ 34,172 | $ 26,083 |
Dividend income | 20,190 | 19,983 |
Interest income | 5,149 | 890 |
Total investment income | 59,511 | 46,956 |
Operating Expenses | ||
Total return incentive fees | 13,506 | 11,456 |
Base management fees | 13,208 | 8,941 |
Offering expenses | 3,419 | 2,814 |
Professional services | 1,875 | 1,881 |
Pursuit costs | 1,875 | 764 |
Distribution and shareholder servicing fees | 1,184 | 789 |
Custodian and accounting fees | 452 | 335 |
General and administrative expenses | 480 | 298 |
Insurance expense | 207 | 227 |
Director fees and expenses | 195 | 205 |
Total operating expenses | 36,401 | 27,710 |
Reimbursement of expense support | 644 | 2,449 |
Net operating expenses | 37,045 | 30,159 |
Net investment income before taxes | 22,466 | 16,797 |
Income tax expense | 0 | (81) |
Net investment income | 22,466 | 16,716 |
U.S. Treasury bills | 4 | 0 |
Net change in unrealized appreciation on investments: | ||
Portfolio company investments | 41,689 | 41,349 |
Provision for deferred taxes on investments | (3,215) | (2,370) |
Net increase in net assets resulting from operations | 64,159 | 58,065 |
Class FA | ||
Operating Expenses | ||
Total return incentive fees | 1,403 | 1,719 |
Base management fees | $ 1,062 | $ 1,144 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 3.02 | $ 3.53 |
Weighted average shares (in shares) | 4,223 | 4,378 |
Class A | ||
Operating Expenses | ||
Total return incentive fees | $ 2,177 | $ 1,350 |
Base management fees | $ 2,104 | $ 1,050 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 2.37 | $ 2.92 |
Weighted average shares (in shares) | 3,426 | 1,787 |
Class T | ||
Operating Expenses | ||
Total return incentive fees | $ 1,421 | $ 1,377 |
Base management fees | $ 1,579 | $ 1,156 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 2.18 | $ 2.80 |
Weighted average shares (in shares) | 2,606 | 1,906 |
Class D | ||
Operating Expenses | ||
Total return incentive fees | $ 1,360 | $ 1,046 |
Base management fees | $ 1,388 | $ 823 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 2.33 | $ 2.89 |
Weighted average shares (in shares) | 2,282 | 1,371 |
Class I | ||
Operating Expenses | ||
Total return incentive fees | $ 6,537 | $ 5,218 |
Base management fees | $ 6,568 | $ 4,245 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 2.43 | $ 2.95 |
Weighted average shares (in shares) | 10,547 | 6,864 |
Class S | ||
Operating Expenses | ||
Total return incentive fees | $ 608 | $ 746 |
Base management fees | $ 507 | $ 522 |
Net increases in net assets resulting from operations per share | ||
Net increase in net assets resulting from operations per share (in usd per share) | $ 3.11 | $ 3.80 |
Weighted average shares (in shares) | 1,761 | 1,766 |
Portfolio company investments | ||
Net change in unrealized appreciation on investments: | ||
Portfolio company investments | $ 44,930 | $ 43,693 |
U.S. Treasury Bills | ||
Net change in unrealized appreciation on investments: | ||
Portfolio company investments | $ (26) | $ 26 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Investment Company, Net Assets [Roll Forward] | ||||
Beginning balance | $ 709,099,000 | [1],[2] | $ 500,309,000 | |
Net investment income | 22,466,000 | 16,716,000 | ||
Net realized gain on investments | 4,000 | 0 | ||
Net change in unrealized appreciation on investments | 41,689,000 | 41,349,000 | ||
Distributions to shareholders | (30,063,000) | (21,911,000) | ||
Issuance of common shares through the Public Offerings | 247,201,000 | 184,890,000 | ||
Issuance of common shares through distribution reinvestment plan | $ 12,759,000 | $ 8,293,000 | ||
Repurchase of common shares pursuant to share repurchase program (in shares) | (709,000) | (631,000) | ||
Repurchase of common shares pursuant to share repurchase program | $ (23,806,000) | $ (20,547,000) | ||
Ending balance | $ 979,349,000 | [3],[4] | $ 709,099,000 | [1],[2] |
Common Shares | ||||
Investment Company, Net Assets [Roll Forward] | ||||
Beginning balance (in shares) | 21,276,000 | 15,814,000 | ||
Beginning balance | $ 21,000 | $ 16,000 | ||
Issuance of common shares through the Public Offerings (in shares) | 7,483,000 | 5,833,000 | ||
Issuance of common shares through the Public Offerings | $ 8,000 | $ 6,000 | ||
Issuance of common shares through distribution reinvestment plan (in shares) | 385,000 | 260,000 | ||
Repurchase of common shares pursuant to share repurchase program (in shares) | (709,000) | (631,000) | ||
Repurchase of common shares pursuant to share repurchase program | $ (1,000) | |||
Ending balance (in shares) | 28,435,000 | 21,276,000 | ||
Ending balance | $ 29,000 | $ 21,000 | ||
Capital in Excess of Par Value | ||||
Investment Company, Net Assets [Roll Forward] | ||||
Beginning balance | 615,383,000 | 442,752,000 | ||
Issuance of common shares through the Public Offerings | 247,193,000 | 184,884,000 | ||
Issuance of common shares through distribution reinvestment plan | 12,759,000 | 8,293,000 | ||
Repurchase of common shares pursuant to share repurchase program | (23,806,000) | (20,546,000) | ||
Ending balance | 851,529,000 | 615,383,000 | ||
Distributable Earnings | ||||
Investment Company, Net Assets [Roll Forward] | ||||
Beginning balance | 93,695,000 | 57,541,000 | ||
Net investment income | 22,466,000 | 16,716,000 | ||
Net realized gain on investments | 4,000 | |||
Net change in unrealized appreciation on investments | 41,689,000 | 41,349,000 | ||
Distributions to shareholders | (30,063,000) | (21,911,000) | ||
Ending balance | $ 127,791,000 | $ 93,695,000 | ||
[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. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities: | ||
Net increase in net assets resulting from operations | $ 64,159 | $ 58,065 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | ||
Proceeds from return of capital on portfolio company investments | 165 | 237 |
Proceeds from redemptions/sales of U.S. Treasury bills | 986,312 | 294,606 |
Net realized gain on investments | (4) | 0 |
Net change in unrealized appreciation on investments, excluding deferred taxes | (44,904) | (43,719) |
Accretion of discounts | (3,115) | (834) |
Increase in net due to related parties | 178 | 5,687 |
Increase in accounts payable and other accrued expenses | 1,105 | 559 |
Increase in deferred tax liabilities, net | 3,215 | 2,370 |
Increase in prepaid expenses and other assets | 312 | (416) |
Other operating activities | 0 | 133 |
Net cash used in operating activities | (112,795) | (172,684) |
Financing Activities: | ||
Proceeds from issuance of common shares | 245,790 | 184,890 |
Payment on repurchases of common shares | (17,950) | (18,688) |
Distributions paid, net of distributions reinvested | (17,304) | (15,184) |
Deferred financing costs | (125) | (201) |
Net cash provided by financing activities | 210,411 | 150,817 |
Net increase (decrease) in cash | 97,616 | (21,867) |
Cash and cash equivalents, beginning of period | 36,837 | 58,704 |
Cash and cash equivalents, end of period | 134,453 | 36,837 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 11 | 606 |
Supplemental disclosure of non-cash financing activities: | ||
Distributions reinvested | 12,759 | 8,293 |
Amounts incurred but not paid (including amounts due to related parties): | ||
Offering costs | 92 | 331 |
Payable for shares repurchased | 8,224 | 2,368 |
Portfolio company investments | ||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | ||
Purchase investments | (243,241) | (89,384) |
U.S. Treasury Bills | ||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | ||
Purchase investments | $ (876,977) | $ (399,988) |
CONSOLIDATED SCHEDULE OF INVEST
CONSOLIDATED SCHEDULE OF INVESTMENTS | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | [3],[4] | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||||
Amortized Cost | $ 719,976,000 | [1],[2] | $ 583,117,000 | [3],[4] | |||
Fair Value | 876,843,000 | [1],[2] | 695,079,000 | [3],[4] | |||
OTHER ASSETS IN EXCESS OF LIABILITIES – 10.5% | 102,506,000 | [1],[2] | 14,020,000 | [3],[4] | |||
NET ASSETS – 100.0% | 979,349,000 | [1],[2] | 709,099,000 | [3],[4] | |||
First lien | |||||||
Amortized Cost | 200,816,000 | [1],[2] | 101,600,000 | [3],[4] | |||
Fair Value | $ 200,816,000 | [1],[2] | $ 101,600,000 | [3],[4] | |||
First lien | ATA Holding Company, LLC | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
First lien | ATA Holding Company, LLC | Real Estate Services | |||||||
Principal Amount / No. Shares | $ 37,000,000 | [1],[2] | $ 37,000,000 | [3],[4] | |||
Amortized 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 | $ 2,000,000 | [1],[2] | $ 2,000,000 | [3],[4] | |||
Amortized 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, LLC | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
First lien | Clarion Safety Systems, LLC | Visual Safety Solutions | |||||||
Principal Amount / No. Shares | $ 22,500,000 | [1],[2] | $ 22,500,000 | [3],[4] | |||
Amortized 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 | Healthcare Safety Holdings, LLC | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
First lien | Healthcare Safety Holdings, LLC | Healthcare Supplies | |||||||
Principal Amount / No. Shares | $ 24,400,000 | [1],[2] | $ 24,400,000 | [3],[4] | |||
Amortized 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 | Lawn Doctor, Inc. | Commercial and Professional Services | |||||||
Principal Amount / No. Shares | [1],[2],[5] | 29,490,000 | |||||
Amortized Cost | [1],[2],[5] | 29,490,000 | |||||
Fair Value | [1],[2],[5] | $ 29,490,000 | |||||
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 | $ 15,700,000 | [1],[2] | $ 15,700,000 | [3],[4] | |||
Amortized 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 | Sill Holdings, LLC | |||||||
Interest Rate | 0.140 | ||||||
First lien | Sill Holdings, LLC | Business Services | |||||||
Principal Amount / No. Shares | $ 15,851,000 | ||||||
Amortized Cost | 15,851,000 | ||||||
Fair Value | $ 15,851,000 | ||||||
First lien | Tacmed Holdings, LLC | |||||||
Interest Rate | [1],[2] | 0.160 | |||||
First lien | Tacmed Holdings, LLC | Healthcare Supplies | |||||||
Principal Amount / No. Shares | [1],[2] | $ 29,000,000 | |||||
Amortized Cost | [1],[2] | 29,000,000 | |||||
Fair Value | [1],[2] | 29,000,000 | |||||
First lien | Vektek Holdings, LLC | Engineered Products | |||||||
Principal Amount / No. Shares | [1],[2],[5] | 24,875,000 | |||||
Amortized Cost | [1],[2],[5] | 24,875,000 | |||||
Fair Value | [1],[2],[5] | 24,875,000 | |||||
First lien | Douglas Machines Corp. | |||||||
Interest Rate | [3],[4] | 0.160 | |||||
First lien | Douglas Machines Corp. | Sanitation Products | |||||||
Principal Amount / No. Shares | [3],[4] | $ 15,000,000 | |||||
Amortized Cost | [3],[4] | 15,000,000 | |||||
Fair Value | [3],[4] | 15,000,000 | |||||
Second lien | |||||||
Amortized Cost | 75,342,000 | [1],[2] | 75,342,000 | [3],[4] | |||
Fair Value | $ 75,342,000 | [1],[2] | $ 75,342,000 | [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 | $ 12,114,000 | [1],[2] | $ 12,114,000 | [3],[4] | |||
Amortized 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 | 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 | $ 15,000,000 | [1],[2] | $ 15,000,000 | [3],[4] | |||
Amortized 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 | Vektek Holdings, LLC | |||||||
Interest Rate | 0.150 | 0.150 | [1],[2] | ||||
Second lien | Vektek Holdings, LLC | Engineered Products | |||||||
Principal Amount / No. Shares | $ 24,400,000 | [1],[2] | 24,400,000 | [3],[4] | |||
Amortized Cost | 24,400,000 | [1],[2] | 24,400,000 | [3],[4] | |||
Fair Value | $ 24,400,000 | [1],[2] | $ 24,400,000 | [3],[4] | |||
Second lien | Blue Ridge ESOP Associates | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
Second lien | Blue Ridge ESOP Associates | Business Services | |||||||
Principal Amount / No. Shares | $ 2,641,000 | [1],[2] | $ 2,641,000 | [3],[4] | |||
Amortized 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 | [1],[2] | $ 15,000,000 | |||||
Amortized Cost | [1],[2] | 15,000,000 | |||||
Fair Value | [1],[2] | $ 15,000,000 | |||||
Second lien | Milton Industries Inc. | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
Second lien | Milton Industries Inc. | Engineered Products | |||||||
Principal Amount / No. Shares | $ 3,353,000 | [1],[2] | $ 3,353,000 | [3],[4] | |||
Amortized 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, LLC | |||||||
Interest Rate | 0.150 | [1],[2] | 0.150 | [3],[4] | |||
Second lien | Resolution Economics, LLC | Business Services | |||||||
Principal Amount / No. Shares | $ 2,834,000 | [1],[2] | $ 2,834,000 | [3],[4] | |||
Amortized Cost | 2,834,000 | [1],[2] | 2,834,000 | [3],[4] | |||
Fair Value | 2,834,000 | [1],[2] | 2,834,000 | [3],[4] | |||
Total Senior Secured Notes | |||||||
Amortized Cost | 276,158,000 | [1],[2] | 176,942,000 | [3],[4] | |||
Fair Value | 276,158,000 | [1],[2] | 176,942,000 | [3],[4] | |||
Equity | |||||||
Amortized Cost | 443,818,000 | [1],[2] | 299,959,000 | [3],[4] | |||
Fair Value | 600,685,000 | [1],[2] | 411,895,000 | [3],[4] | |||
Equity | ATA Holding Company, LLC | Real Estate Services | |||||||
Principal Amount / No. Shares | 37,985 | [1],[2],[6] | 37,985,000 | [3],[4],[7] | |||
Amortized Cost | 37,125,000 | [1],[2],[6] | 37,125,000 | [3],[4],[7] | |||
Fair Value | 32,376,000 | [1],[2],[6] | 38,406,000 | [3],[4],[7] | |||
Equity | Auriemma U.S. Roundtables | Information Services and Advisory Solutions | |||||||
Principal Amount / No. Shares | 33,094 | [1],[2],[6] | 32,386,000 | [3],[4],[7] | |||
Amortized Cost | 33,476,000 | [1],[2],[6] | 32,386,000 | [3],[4],[7] | |||
Fair Value | 58,964,000 | [1],[2],[6] | 46,187,000 | [3],[4],[7] | |||
Equity | Clarion Safety Systems, LLC | Visual Safety Solutions | |||||||
Principal Amount / No. Shares | 57,368 | [1],[2],[6] | 50,562,000 | [3],[4],[7] | |||
Amortized Cost | 57,189,000 | [1],[2],[6] | 50,756,000 | [3],[4],[7] | |||
Fair Value | 60,451,000 | [1],[2],[6] | 51,609,000 | [3],[4],[7] | |||
Equity | Healthcare Safety Holdings, LLC | Healthcare Supplies | |||||||
Principal Amount / No. Shares | 17,320 | [1],[2],[6] | 17,320,000 | [3],[4],[7] | |||
Amortized Cost | 17,320,000 | [1],[2],[6] | 17,320,000 | [3],[4],[7] | |||
Fair Value | 44,988,000 | [1],[2],[6] | 33,865,000 | [3],[4],[7] | |||
Equity | Lawn Doctor, Inc. | Commercial and Professional Services | |||||||
Principal Amount / No. Shares | 7,746 | [1],[2],[6] | 7,746,000 | [3],[4],[7] | |||
Amortized Cost | 27,611,000 | [1],[2],[6] | 27,776,000 | [3],[4],[7] | |||
Fair Value | 75,165,000 | [1],[2],[6] | 66,028,000 | [3],[4],[7] | |||
Equity | Polyform Products, Co. | Hobby Goods and Supplies | |||||||
Principal Amount / No. Shares | 10,820 | [1],[2],[6] | 10,820,000 | [3],[4],[7] | |||
Amortized Cost | 15,599,000 | [1],[2],[6] | 15,599,000 | [3],[4],[7] | |||
Fair Value | 15,964,000 | [1],[2],[6] | 25,105,000 | [3],[4],[7] | |||
Equity | Sill Holdings, LLC | Business Services | |||||||
Principal Amount / No. Shares | [6] | 58,549 | |||||
Amortized Cost | [6] | 58,549,000 | |||||
Fair Value | [6] | 58,549,000 | |||||
Equity | Tacmed Holdings, LLC | Healthcare Supplies | |||||||
Principal Amount / No. Shares | [1],[2],[6] | 77,000 | |||||
Amortized Cost | [1],[2],[6] | 77,000,000 | |||||
Fair Value | [1],[2],[6] | 77,000,000 | |||||
Equity | Vektek Holdings, LLC | Engineered Products | |||||||
Principal Amount / No. Shares | [1],[2],[6] | 56,928 | |||||
Amortized Cost | [1],[2],[6] | 56,928,000 | |||||
Fair Value | [1],[2],[6] | 74,752,000 | |||||
Equity | Blue Ridge ESOP Associates | Business Services | |||||||
Principal Amount / No. Shares | 11,489 | [1],[2] | 11,489,000 | [3],[4] | |||
Amortized Cost | 12,793,000 | [1],[2] | 12,793,000 | [3],[4] | |||
Fair Value | 22,926,000 | [1],[2] | 20,334,000 | [3],[4] | |||
Equity | Douglas Machines Corp. | Sanitation Products | |||||||
Principal Amount / No. Shares | 35,500 | [1],[2],[6] | 35,500,000 | [3],[4],[7] | |||
Amortized Cost | 35,500,000 | [1],[2],[6] | 35,500,000 | [3],[4],[7] | |||
Fair Value | 43,379,000 | [1],[2],[6] | 37,338,000 | [3],[4],[7] | |||
Equity | Milton Industries Inc. | Engineered Products | |||||||
Principal Amount / No. Shares | 6,647 | [1],[2] | 6,647,000 | [3],[4] | |||
Amortized Cost | 6,647,000 | [1],[2] | 6,647,000 | [3],[4] | |||
Fair Value | 20,982,000 | [1],[2] | 15,203,000 | [3],[4] | |||
Equity | Resolution Economics, LLC | Engineered Products | |||||||
Principal Amount / No. Shares | [3],[4],[7] | 56,928,000 | |||||
Amortized Cost | [3],[4],[7] | 56,928,000 | |||||
Fair Value | [3],[4],[7] | 64,027,000 | |||||
Equity | Resolution Economics, LLC | Business Services | |||||||
Principal Amount / No. Shares | 7,666 | [1],[2] | 7,166,000 | [3],[4] | |||
Amortized Cost | 8,081,000 | [1],[2] | 7,129,000 | [3],[4] | |||
Fair Value | 15,189,000 | [1],[2] | 13,793,000 | [3],[4] | |||
Portfolio company investments | |||||||
Amortized Cost | 719,976,000 | 476,901,000 | [3],[4] | ||||
Fair Value | $ 876,843,000 | 588,837,000 | [3],[4] | ||||
Other Investments | |||||||
Amortized Cost | [3],[4] | 106,216,000 | |||||
Fair Value | [3],[4] | 106,242,000 | |||||
Other Investments | US Treasury Bills Maturing January 03rd 2023 | |||||||
Principal Amount / No. Shares | [3],[4] | 88,235,000 | |||||
Amortized Cost | [3],[4] | 88,210,000 | |||||
Fair Value | [3],[4] | 88,235,000 | |||||
Other Investments | US Treasury Bills Maturing January 24th 2023 | |||||||
Principal Amount / No. Shares | [3],[4] | 18,047,000 | |||||
Amortized Cost | [3],[4] | 18,006,000 | |||||
Fair Value | [3],[4] | $ 18,007,000 | |||||
[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 December 31, 2023, the senior debt investments in Lawn Doctor and Vektek accrue interest at a per annum rate of SOFR + 4.60% and SOFR + 4.35%, respectively. SOFR at December 31, 2023 was 5.34%.[6]As of December 31, 2023, the Company owned a controlling interest in this portfolio company.[7]As of December 31, 2022, the Company owned a controlling interest in this portfolio company. |
CONSOLIDATED SCHEDULE OF INVE_2
CONSOLIDATED SCHEDULE OF INVESTMENTS (Parenthetical) | Dec. 31, 2023 | Dec. 31, 2022 | ||
Fair value percentage of net assets | 89.50% | [1],[2] | 98% | |
Other assets in excess of liabilities, percent | 10.50% | [1],[2] | 2% | |
Net assets, percent | 100% | [1],[2] | 100% | |
First lien | ||||
Fair value percentage of net assets | 20.50% | [1],[2] | 14.30% | [3],[4] |
First lien | Lawn Doctor, Inc. | Commercial and Professional Services | Secured Overnight Financing Rate (SOFR) | ||||
Variable rate | 4.60% | |||
First lien | Vektek Holdings, LLC | Engineered Products | Secured Overnight Financing Rate (SOFR) | ||||
Variable rate | 4.35% | |||
Second lien | ||||
Fair value percentage of net assets | 7.70% | [1],[2] | 10.60% | [3],[4] |
Equity | ||||
Fair value percentage of net assets | 61.30% | [1],[2] | 58.10% | [3],[4] |
Portfolio company investments | ||||
Fair value percentage of net assets | 83% | |||
Other Investments | ||||
Fair value percentage of net assets | 15% | |||
[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 | 12 Months Ended |
Dec. 31, 2023 | |
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. The Manager and the Sub-Manager are each 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 being offered through its distribution reinvestment plan, 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 distribution reinvestment plan). See Note 7. “Capital Transactions” Note 13. “Subsequent Events” |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 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 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 Company's portfolio companies and the success of its investment activities are affected by global and national economic, political and market conditions generally and also by the local economic conditions where the portfolio companies are located and operate. Certain external events such as public health crises, including the novel coronavirus (“COVID-19”) and its variants, natural disasters and geopolitical events, including the ongoing conflict between Israel and Hamas and Russia, Belarus and Ukraine, have recently led to increased financial and credit market volatility and disruptions, leading to record inflationary pressure, rising interest rates, supply chain issues, labor shortages and recessionary concerns. In response to recent inflationary pressure, the U.S. Federal Reserve and other global central banks have raised interest rates in 2022 and 2023 and have indicated likely further interest rate increases. The full impact of such external events on the financial and credit markets and consequently on the Company’s financial conditions and results of operations is uncertain and cannot be fully predicted. The Company will continue to monitor these events and will adjust its operations as necessary. Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and money market funds 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. As of December 31, 2023, the Company held cash equivalents in the form of money market fund shares held in Fidelity Government Money Market with a fair value of approximately $73.1 million which represents 7.2% of total assets. The Company did not hold cash equivalents as of December 31, 2022. Cash equivalents in the form of money market fund shares are valued at their reported net asset value on the measurement date, and are categorized within Level 1 of the fair value hierarchy under ASC Topic 820, as the net asset values are readily available and represent the prices of active trading in the market. 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 GAAP. The uncertainty of future events 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 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. U.S. Treasury bills are classified as Level 1 assets and are recorded at fair value based on the average of the bid and ask quotes for identical instruments. The Company’s board of directors is responsible for determining in good faith the fair value of the Company’s Level 3 investments in accordance with the Company’s 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 Level 3 assets requires judgment, which include 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 Level 3 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 amortized 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 from loans and debt securities 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. Original issue discounts (“OID”) on U.S. Treasury bills are reflected in the initial cost basis and the Company accretes such amounts as interest income over the term of the respective security using the effective interest method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts. 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 shares at par value 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”), shares are 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” Offering Expenses 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 consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s 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, offering expenses, expense support (reimbursement), distribution and shareholder servicing fees 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. The following table reflects class-specific expenses by share class during the year ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 Class FA Class A Class T Class D Class I Class S Base management fees $ 1,062 $ 2,104 $ 1,579 $ 1,388 $ 6,568 $ 507 Total return incentive fees 1,403 2,177 1,421 1,360 6,537 608 Offering expenses — 1,208 315 297 1,599 — Expense support (reimbursement) 610 — — — 34 — Other class-specific expenses (1) 34 91 880 400 187 24 Year Ended December 31, 2022 Class FA Class A Class T Class D Class I Class S Base management fees $ 1,144 $ 1,050 $ 1,156 $ 823 $ 4,245 $ 522 Total return incentive fees 1,719 1,350 1,377 1,046 5,218 746 Offering expenses — 326 378 444 1,667 — Expense support (reimbursement) 1,393 278 — — 778 — Other class-specific expenses (1) 32 73 617 229 102 59 (1) Other class-specific expenses consist of distribution and shareholder servicing fees and certain transfer agent fees. 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. Net Investment Income per Share and Net Increase in Net Assets Resulting from Operations per Share Net investment income per share and net increase in net assets resulting from operations 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. The Company’s distributions declared prior to December 2022 were paid on a monthly basis one month in arrears. The Company’s distributions declared beginning in December 2022 are paid in the same month as the declared record date. 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. 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 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. The Company holds certain equity investments in taxable subsidiaries (the “Taxable Subsidiaries”). The Taxable Subsidiaries permit the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes. The Taxable Subsidiaries are not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of the Taxable Subsidiaries’ ownership of certain portfolio investments. The income tax expense, or benefit, and related tax assets and liabilities are reflected in the Company’s condensed consolidated financial statements. See Note 9. “Income Taxes” During the years ended December 31, 2023 and 2022, the Company did not incur any material interest or penalties. Tax years 2020 and forward remain subject to examination by taxing authorities. Recently Issued Accounting Standards Updates In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. We are currently assessing the impact this guidance will have on our consolidated financial statements, however, we do not expect a material impact to our consolidated financials statements as ASU 2023-07 results in additional disclosure only. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our consolidated financial statements. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments During the year ended December 31, 2023, the Company invested approximately $180.4 million in two new portfolio companies, TacMed and Sill, through a combination of debt and equity investments, in additional equity investments in Roundtables, Resolution Economics and Clarion totaling approximately $8.5 million in the aggregate and in additional senior debt investments in Lawn Doctor and Vektek totaling approximately $54.3 million in the aggregate. As of December 31, 2023, the Company held no short-term U.S. Treasury bills. During the year ended December 31, 2022, the Company invested approximately $81.3 million in one new portfolio company, Vektek Holdings, LLC (“Vektek”), through a combination of debt and equity investments, and additional equity investments in ATA National Title Group, LLC (“ATA”), Clarion Safety Systems, LLC (“Clarion”) and Blue Ridge ESOP Associates (“Blue Ridge”) totaling approximately $8.1 million. Additionally, during the year ended December 31, 2022, the Company began investing in short-term U.S. Treasury bills. The Company’s investment portfolio is summarized as follows as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 200,816 $ 200,816 22.9 % 20.5 % Second lien 75,342 75,342 8.6 7.7 Total senior secured debt 276,158 276,158 31.5 28.2 Equity 443,818 600,685 68.5 61.3 Total investments $ 719,976 $ 876,843 100.0 % 89.5 % As of December 31, 2022 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 101,600 $ 101,600 14.6 % 14.3 % Second lien 75,342 75,342 10.8 10.6 Total senior secured debt 176,942 176,942 25.4 24.9 Equity 299,959 411,895 59.3 58.1 U.S. Treasury bills 106,216 106,242 15.3 15.0 Total investments $ 583,117 $ 695,079 100.0 % 98.0 % Collectively, the Company’s debt investments accrue interest at a weighted average per annum rate of 14.2% and have weighted average remaining years to maturity of 4.0 years as of December 31, 2023. The note purchase agreements contain customary covenants and events of default. As of December 31, 2023, all of the Company’s portfolio companies were in compliance with their respective debt covenants. As of December 31, 2023 and 2022, none of the Company’s debt investments were on non-accrual status. The Company’s investments in U.S. Treasury bills do not accrue interest. The Company purchases U.S. Treasury bills at a discount and accretes such amounts as interest income over the term of the respective security using the effective interest method. The effective yield on the Company’s investments in U.S. Treasury bills during the year ended December 31, 2023 ranged from 3.4% to 5.0%. The effective yield on the Company’s investments in U.S. Treasury bills during the year ended December 31, 2022 ranged from 2.1% to 3.9%. The industry dispersion of the Company’s portfolio company investments, based on fair value, as of December 31, 2023 and 2022 were as follows: As of December 31, Industry 2023 2022 Healthcare Supplies 20.0 % 9.9 % Engineered Products 16.9 18.2 Commercial and Professional Services 13.6 13.8 Business Services 13.5 6.7 Visual Safety Solutions 9.5 12.6 Information Services and Advisory Solutions 8.3 10.2 Real Estate Services 7.9 12.8 Sanitation Products 6.7 8.9 Hobby Goods and Supplies 3.6 6.9 Total 100.0 % 100.0 % All investment positions held as of December 31, 2023 and 2022 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 audited summarized operating data for the years ended December 31, 2023 and 2022, and summarized balance sheet data as of December 31, 2023 and December 31, 2022 for the Company’s portfolio companies (in thousands): Summarized Operating Data Year Ended December 31, 2023 Lawn Doctor Polyform Round-tables HSH ATA Clarion Vektek Tac-Med (1) Milton Other (2) Revenues $ 40,996 $ 16,073 $ 17,507 $ 35,575 $ 48,448 $ 13,094 $ 38,608 $ 32,332 $ 83,063 $ 156,676 Expenses (37,462) (17,585) (15,673) (31,176) (51,930) (13,342) (37,577) (39,586) (79,864) (161,338) Income (loss) before taxes 3,534 (1,512) 1,834 4,399 (3,482) (248) 1,031 (7,254) 3,199 (4,662) Income tax (expense) benefit (1,059) 440 (602) (1,319) — 70 — 1,714 (2,177) 297 Consolidated net income (loss) 2,475 (1,072) 1,232 3,080 (3,482) (178) 1,031 (5,540) 1,022 (4,365) Net loss attributable to non-controlling interests 266 — — — — — — — — — Net income (loss) $ 2,741 $ (1,072) $ 1,232 $ 3,080 $ (3,482) $ (178) $ 1,031 $ (5,540) $ 1,022 $ (4,365) Year Ended December 31, 2022 Lawn Doctor Polyform Round-tables HSH ATA Douglas Clarion Vektek (3) Milton Other (4) Revenues $ 38,613 $ 23,106 $ 15,403 $ 36,413 $ 60,573 $ 27,402 $ 13,132 $ 26,190 $ 69,588 $ 93,492 Expenses (34,818) (21,141) (14,458) (32,905) (60,178) (26,781) (12,171) (26,513) (76,035) (88,961) Income (loss) before taxes 3,795 1,965 945 3,508 395 621 961 (323) (6,447) 4,531 Income tax (expense) benefit (1,407) (536) (109) (982) — (74) (278) (90) 1,046 290 Consolidated net income (loss) 2,388 1,429 836 2,526 395 547 683 (413) (5,401) 4,821 Net loss attributable to non-controlling interests 213 — — — — — — — — — Net income (loss) $ 2,601 $ 1,429 $ 836 $ 2,526 $ 395 $ 547 $ 683 $ (413) $ (5,401) $ 4,821 Summarized Balance Sheet Data As of December 31, 2023 Lawn Doctor Polyform Round-tables HSH ATA Clarion Vektek TacMed Milton Other (2) Current assets $ 10,359 $ 7,601 $ 2,376 $ 11,476 $ 7,381 $ 5,049 $ 14,846 $ 22,128 $ 32,440 $ 64,297 Non-current assets 89,666 25,515 59,192 33,509 81,860 75,368 99,254 92,209 107,726 465,476 Current liabilities 7,484 1,111 5,071 4,955 5,668 1,405 2,182 4,206 8,230 52,203 Non-current liabilities 62,530 20,830 19,399 27,158 42,267 22,675 49,625 35,345 80,585 222,708 Non-controlling interest 246 — — — — — — — — — Stockholders’ equity 29,765 11,175 37,098 12,872 41,306 56,337 62,293 74,786 51,351 254,862 Ownership percentage (5) 61% 87% 81% 75% 75% 96% 84% 95% 13% (6) As of December 31, 2022 Lawn Doctor Polyform Round-tables HSH ATA Douglas Clarion Vektek Milton Other (4) Current assets $ 12,412 $ 9,532 $ 2,455 $ 11,780 $ 7,219 $ 11,650 $ 3,399 $ 14,832 $ 28,894 $ 60,887 Non-current assets 91,900 27,263 59,865 36,414 88,340 47,614 69,685 101,917 81,520 300,986 Current liabilities 8,476 1,463 2,461 4,160 6,834 5,431 457 2,536 6,614 36,853 Non-current liabilities 63,013 21,484 21,714 27,783 43,915 15,939 22,500 48,654 74,434 164,579 Non-controlling interest 512 — — — — — — — — — Stockholders’ equity 32,311 13,848 38,145 16,251 44,810 37,894 50,127 65,559 29,366 160,441 Ownership percentage (5) 61% 87% 81% 75% 75% 90% 98% 84% 13% (6) FOOTNOTES: (1) Summarized operating data presented for TacMed is for the period from March 24, 2023 (the date the Company acquired its investments in TacMed) to December 31, 2023. (2) Includes aggregate summarized financial information for the Company’s co-investments (Resolution Economics and Blue Ridge) in which the Company owns a minority equity interest and Douglas and Sill, which is presented for the period from October 20, 2023 (the date the Company acquired its investments in Sill) to December 31, 2023, each of which was individually less than 10% significance for the periods presented. (3) Summarized operating data presented for Vektek is for the period from May 6, 2022 (the date the Company acquired its investments in Vektek) to December 31, 2022. (4) Includes aggregate summarized financial information for the Company’s co-investments (Resolution Economics and Blue Ridge) in which the Company owns a minority equity interest, each of which was individually less than 10% significance for the periods presented. Summarized financial information for Resolution Economics is reported on a one-month lag. (5) Represents the Company’s undiluted ownership percentage as of the end of the period presented, rounded to the nearest percent. (6) As of December 31, 2023 and 2022, the Company owned approximately 8% of Resolution Economics, 16% of Blue Ridge and 90% of Douglas. As of December 31, 2023, the Company owned approximately 99% of Sill. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 As of December 31, 2022 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Senior Debt $ — $ — $ 276,158 $ 276,158 $ — $ — $ 176,942 $ 176,942 Equity — — 600,685 600,685 — — 411,895 411,895 U.S. Treasury bills — — — — 106,242 — — 106,242 Total investments $ — $ — $ 876,843 $ 876,843 $ 106,242 $ — $ 588,837 $ 695,079 The ranges of unobservable inputs used in the fair value measurement of the Company’s Level 3 investments as of December 31, 2023 and 2022 were as follows (in thousands): As of December 31, 2023 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 276,158 Discounted Cash Flow Discount Rate 10.5% – 14.5% (12.5%) 6.9x – 15.1x (10.8x) 6.3x – 16.0x (11.9x) Decrease Equity 600,685 Discounted Cash Flow Discount Rate 10.5% – 14.5% (12.5%) 6.9x – 15.1x (10.8x) 6.3x – 16.0x (11.9x) Decrease Total $ 876,843 As of December 31, 2022 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 176,942 Discounted Cash Flow Discount Rate 9.8% – 13.8% (11.6%) 6.5x – 13.2x (9.8x) 6.5x – 13x (10.8x) Decrease Equity 411,895 Discounted Cash Flow Discount Rate 9.8% – 13.8% (11.6%) 6.5x – 13.2x (9.8x) 6.5x – 13x (10.8x) Decrease Total $ 588,837 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 December 31, 2023 and 2022. 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 years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 Senior Debt Equity Total Fair value balance as of January 1, 2023 $ 176,942 $ 411,895 $ 588,837 Additions 99,341 144,025 243,366 Principal repayments (125) — (125) Return of capital (1) — (165) (165) Net change in unrealized appreciation (2) — 44,930 44,930 Fair value balance as of December 31, 2023 $ 276,158 $ 600,685 $ 876,843 Change in net unrealized appreciation on investments held as of December 31, 2023 (2) $ — $ 44,930 $ 44,930 Year Ended December 31, 2022 Senior Debt Equity Total Fair value balance as of January 1, 2022 $ 152,542 $ 303,455 $ 455,997 Additions 24,400 64,984 89,384 Return of capital (1) — (237) (237) Net change in unrealized appreciation (2) — 43,693 43,693 Fair value balance as of December 31, 2022 $ 176,942 $ 411,895 $ 588,837 Change in net unrealized appreciation on investments held as of December 31, 2022 (2) $ — $ 43,693 $ 43,693 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. (2) Included in net change in unrealized appreciation |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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 Folow-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, subject to certain limits, 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 Offering Costs — The Company reimburses the Manager and the Sub-Manager, along with their respective affiliates, for the 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 approximately $3.4 million and $2.8 million in organization and offering costs based on actual amounts raised through the Public Offerings during the years ended December 31, 2023 and 2022, respectively. 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 $13.2 million and $8.9 million during the years ended December 31, 2023 and 2022, 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 shares 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 shares 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, and adjusted for share conversions, 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 $13.5 million and $11.5 million during the years ended December 31, 2023 and 2022, 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 in the calculation of Total Return to Shareholders for such share class. With respect to the calculation of Total Returns to Shareholders, the following table provides the applicable High Water Marks for the years ended December 31, 2023 and 2022: For the year ended: Class FA Class A Class T Class D Class I Class S December 31, 2023 $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 December 31, 2022 32.62 30.78 30.66 30.35 31.18 32.84 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, as amended, (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 from the Manager and Sub-Manager of approximately $5.1 million. During the years ended December 31, 2023 and 2022, the Company accrued reimbursement of Expense Support due to the Manager and Sub-Manager of approximately $0.6 million and $2.4 million, respectively. Expense support (reimbursement) is paid by (to) the Manager and Sub-Manager annually in arrears. The following table summarizes annual Expense Support received, 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 December 31, 2023 (in thousands): For the Year Ended Amount of Expense Support Received Expense Support Reimbursed (1) Unreimbursed Expense Support Subject to Reimbursement (2) Reimbursement Eligibility Expiration December 31, 2018 $ 390 $ (353) $ — (3) December 31, 2019 1,372 (1,339) — (3) December 31, 2020 3,301 (3,232) 69 March 31, 2024 $ 5,063 $ (4,924) $ 69 FOOTNOTES: (1) Includes approximately $644 and $2,449 accrued as of December 31, 2023 and 2022, respectively, which were paid to the Manager and Sub-Manager in January 2024 and 2023, respectively. Expense support reimbursement is calculated by share class and subject to limitations as defined in the Expense Support and Conditional Reimbursement Agreement described above. (2) Management believes that additional reimbursement by the Company to the Manager and Sub-Manager related to the year ended December 31, 2020 is not probable under the terms of the Expense Support and Conditional Reimbursement Agreement as of December 31, 2023. (3) Unreimbursed amounts of $37 and $33 related to the years ended December 31, 2018 and 2019, respectively, will not be reimbursed in future periods. Distributions Individuals and entities affiliated with the Manager and Sub-Manager owned approximately 0.4 million shares as of December 31, 2023 and 2022. These individuals and entities received distributions from the Company of approximately $0.5 million during the years ended December 31, 2023 and 2022. Summary of Related Party Fees and Expenses Related party fees and expenses incurred for the years ended December 31, 2023 and 2022 are summarized below (in thousands): Years Ended December 31, Related Party Source Agreement & Description 2023 2022 Managing Dealer Managing Dealer Agreement: Commissions $ 2,712 $ 1,799 Dealer manager fees 782 933 Distribution and shareholder servicing fees 1,184 789 Manager and Sub-Manager Management Agreement and Sub-Management Agreement: Offering expense reimbursement (1)(2) 3,383 2,814 Base management fees (1) 13,208 8,941 Total return incentive fees (1) 13,506 11,456 Manager and Sub-Manager Expense Support and Conditional Reimbursement Agreement: Reimbursement of Expense Support 644 2,449 Manager Administrative Services Agreement: Reimbursement of third-party operating expenses (1) 91 84 Sub-Manager Sub-Management Agreement: Reimbursement of third-party pursuit costs (1)(3) 1,875 764 FOOTNOTES: (1) Expenses subject to Expense Support, if applicable. There was no Expense Support recorded for the years ended December 31, 2023 and 2022. (2) Offering expense reimbursements are capitalized on the Company’s consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s 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 December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Total return incentive fees $ 13,506 $ 11,456 Reimbursement of expense support 644 2,449 Base management fees 1,338 864 Offering expenses 92 331 Distribution and shareholder servicing fees 106 84 Reimbursement of third-party operating expenses and pursuit costs 101 425 Total due to related parties $ 15,787 $ 15,609 |
Distributions
Distributions | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023 and 2022. The Company’s distributions declared prior to December 2022 were paid on a monthly basis one month in arrears. The Company’s distributions declared beginning in December 2022 are paid in the same month as the declared record date. The following table reflects the total distributions declared during the years ended December 31, 2023 and 2022 (in thousands except per share data): Distribution Period Distributions Declared (1) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested Year ended December 31, 2023 $ 30,063 $ 12,759 $ 17,304 Year ended December 31, 2022 21,911 7,794 14,117 FOOTNOTES: (1) The Company’s board of directors declared distributions per share on a monthly basis. See Note 12. “ ” Record Date Period Class FA Class A Class T Class D Class I Class S January 1, 2023 - December 31, 2023 $ 0.104167 $ 0.104167 $ 0.083333 $ 0.093750 $ 0.104167 $ 0.104167 January 1, 2022 - December 31, 2022 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): Years Ended December 31, 2023 2022 Amount % of Distributions Declared Amount % of Distributions Declared Net investment income (1) $ 22,466 74.7 % $ 16,716 76.3 % Distributions in excess of net investment income (2) 7,597 25.3 5,195 23.7 Total distributions declared $ 30,063 100.0 % $ 21,911 100.0 % FOOTNOTES: (1) Net investment income includes reimbursement of Expense Support of $644 and $2,449 for the years ended December 31, 2023 and 2022, respectively. See Note 5. “Related Party Transactions” (2) Consists of distributions made from offering proceeds for the periods presented. In December 2023, the Company’s board of directors declared a monthly cash distribution on the outstanding shares of all classes of common shares of record on January 26, 2024 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 | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Capital Transactions | Capital Transactions Public Offerings Under the Follow-On Public Offering, 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 Follow-On Public Offering, 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 December 31, 2023, the public offering price was $36.31 per Class A share, $35.14 per Class T share, $32.99 per Class D share and $33.70 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 years ended December 31, 2023 and 2022 (in thousands except per share data): Year Ended December 31, 2023 Proceeds from Public Offerings Distributions Reinvested Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Issued Proceeds to Company Shares Issued Net Proceeds to Company Average Net Proceeds per Share Class A 2,628 $ 88,844 $ (2,433) $ 86,411 89 $ 2,937 2,717 $ 89,348 $ 32.89 Class T 669 22,975 (1,061) 21,914 53 1,755 722 23,669 32.82 Class D 669 21,758 — 21,758 46 1,510 715 23,268 32.55 Class I 3,517 117,118 — 117,118 197 6,557 3,714 123,675 33.29 7,483 $ 250,695 $ (3,494) $ 247,201 385 $ 12,759 7,868 $ 259,960 $ 33.05 Year Ended December 31, 2022 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Issued Proceeds to Company Shares Issued Net Proceeds to Company Average Net Proceeds per Share Class A 641 $ 21,727 $ (1,572) $ 20,155 58 $ 1,842 699 $ 21,997 $ 31.46 Class T 763 25,194 (1,160) 24,034 41 1,281 804 25,315 31.49 Class D 949 29,600 — 29,600 29 940 978 30,540 31.19 Class I 3,480 111,101 — 111,101 132 4,230 3,612 115,331 31.92 5,833 $ 187,622 $ (2,732) $ 184,890 260 $ 8,293 6,093 $ 193,183 $ 31.70 FOOTNOTES: (1) Amounts are based on distribution reinvestment date. Distributions declared prior to distributions declared in December 2022 were paid or reinvested one month in arrears. Distributions are reinvested in the month they are declared beginning with distributions declared in December 2022. (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” 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). At the sole discretion of the Company’s board of directors, the Company may use sources, including, but not limited to, offering proceeds and borrowings to repurchase shares. During the year ended December 31, 2023, the Company received requests for the repurchase of approximately $23.8 million of the Company’s common shares. The Company’s board of directors approved the repurchase requests received for the year ended December 31, 2023. During the year ended December 31, 2022, the Company received requests for the repurchase of approximately $20.5 million of the Company’s common shares, which did not exceed amounts available for repurchase under the Share Repurchase Program . The following table summarizes the shares repurchased during the years ended December 31, 2023 and 2022 (in thousands except per share data): Years Ended December 31, 2023 2022 Share Class Number of Shares Total Consideration Average Price Paid per Share Number of Shares Total Consideration Average Price Paid per Share Class FA 65 $ 2,309 $ 35.75 315 $ 10,493 $ 33.31 Class A 127 4,187 33.03 24 738 31.36 Class T 69 2,270 33.13 11 338 31.28 Class D 40 1,318 32.73 30 952 31.35 Class I 391 13,098 33.44 250 7,998 31.95 Class S 17 624 36.45 1 28 33.74 Total 709 $ 23,806 $ 33.58 631 $ 20,547 $ 32.57 As of December 31, 2023 and 2022, the Company had a payable for shares repurchased of approximately $8.2 million and $2.4 million, 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 year ended December 31, 2023, approximately 367,000 Class T shares were converted to approximately 367,000 Class A shares at an average conversion rate of 1.00. During the year ended December 31, 2022, approximately 59,000 Class T shares were converted to approximately 59,000 Class A shares at an average conversion rate of 1.00. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In September 2021, the Company entered into a second amended and restated loan agreement (the “2021 Loan Agreement”) and related promissory note with United Community Bank (d/b/a Seaside Bank and Trust) for a $25.0 million line of credit. The Company did not borrow any amounts under the 2021 Line of Credit and the Company’s ability to request draws under the 2021 Loan Agreement expired in August 2022. In August 2022, the Company entered into a loan agreement (the “2022 Loan Agreement”) and related promissory note with First Horizon Bank for a $50.0 million revolving line of credit (the “2022 Line of Credit”). In connection with the 2022 Loan Agreement, the Company was required to pay a total commitment fee to First Horizon Bank of $0.25 million, which was paid in 2022. The Company was required to pay a fee to First Horizon with each advance under the 2022 Line of Credit in the amount equal to 0.05% of the amount of each borrowing. The Company was also required to pay interest on the borrowed amount at a rate per year equal to the 30-day Secured Overnight Financing Rate (“SOFR”) plus 2.75%. Interest payments were due monthly in arrears. Furthermore, the Company was required to pay a quarterly unused line fee when the average outstanding balance of the 2022 Line of Credit was less than $25.0 million. Unused line fees were due quarterly in arrears. The Company could prepay, without penalty, all or any part of the borrowings under the 2022 Loan Agreement at any time and such borrowings were required to be repaid within 180 days of the borrowing date. Under the 2022 Loan Agreement, the Company was 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 had a covenant related to its fair market value of investments as a multiple of borrowings outstanding. In connection with the 2022 Loan Agreement, the Company entered into a pledge and security agreement (“2022 Pledge Agreement”) in favor of the lender under the 2022 Line of Credit. Under the 2022 Pledge Agreement, the Company was required to contribute proceeds from the Follow-On Public Offering to pay down the outstanding debt to the extent there were any borrowings outstanding under the 2022 Loan Agreement. The 2022 Line of Credit was available for advances through August 2023 and the Company extended the 2022 Line of Credit through December 2023. The 2022 Line of Credit was expired as of December 31, 2023. In February 2024, CNL Strategic Capital B, Inc. (“Borrower”), a wholly-owned subsidiary of the Company and Valley National Bank, entered into a Revolving Loan Agreement (the “2024 Loan Agreement”) for a $50.0 million revolving line of credit (the “2024 Line of Credit”). Unless extended, the Line of Credit has a maturity date of February 15, 2025. In connection with the 2024 Line of Credit, the Borrower paid a total commitment fee and Valley National Bank expenses of $0.16 million. The Borrower is required to pay interest on any borrowed amounts under the 2024 Line of Credit at a rate per year equal to the 1-Month Term secured overnight financing rate (“SOFR”) plus 2.75%. Interest payments are due on the first calendar day of the month in arrears. Furthermore, the Borrower is required to pay a quarterly unused borrowing fee at an annual rate of 0.15% on the difference between (i) total 2024 Line of Credit amount and (ii) the aggregate average daily balance of outstanding borrowings under the 2024 Line of Credit during such quarter. The Borrower may prepay, without penalty, all or any part of the borrowings under the 2024 Loan Agreement at any time and such borrowings are required to be repaid within 180 days of the borrowing date. Under the 2024 Loan Agreement, the Company is required to comply with certain covenants including the requirement to provide certain financial and compliance reports to Valley National Bank and restrictions on incurring certain levels of additional debt by the Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Current: Federal $ — $ 63 State — 18 Total current tax expense — 81 Deferred: Federal 3,010 2,174 State 205 196 Total deferred tax expense 3,215 2,370 Income tax expense $ 3,215 $ 2,451 Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Carryforwards for net operating loss $ 1,249 $ 770 Unrealized depreciation on investments 913 — Other — 27 Valuation allowance (1,324) (60) Total deferred tax assets 838 737 Deferred tax liabilities: Unrealized appreciation on investments (8,300) (4,984) Total deferred tax liabilities (8,300) (4,984) Deferred tax liabilities, net $ (7,462) $ (4,247) The table below presents a reconciliation of tax expense the Company would be subject to if it were taxed as a corporation to the Company’s actual income tax expense incurred by its Taxable Subsidiaries for the years ended December 31, 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Tax expense computed at the federal statutory rate $ 14,148 21.0 % $ 12,708 21.0 % State income tax expense net of federal benefit 205 0.3 214 0.4 Benefit of partnership structure (11,138) (16.5) (10,471) (17.3) Income tax expense $ 3,215 4.8 % $ 2,451 4.1 % The Company’s taxable subsidiary entities had net operating loss carryforwards for federal purposes of approximately $4.6 million and $2.8 million as of December 31, 2023 and 2022, respectively, to offset future taxable income. The federal net operating loss carryforwards do not expire. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk The Company had nine portfolio companies which met at least one of the significance tests under Rule 4-08(g) of Regulation S-X (the “Significance Tests”) for at least one of the periods presented in the consolidated financial statements. |
Commitment & Contingences
Commitment & Contingences | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023, 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 | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023 and 2022 (in thousands except per share data): Year Ended December 31, 2023 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Year $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 Net investment income, before reimbursement of Expense Support (1) 1.55 0.70 0.56 0.70 0.80 1.50 Expense Support (reimbursement) (1) (0.14) — — — — — Net investment income (1) 1.41 0.70 0.56 0.70 0.80 1.50 Net realized and unrealized gains, net of taxes (1)(2) 1.61 1.67 1.62 1.63 1.63 1.61 Net increase resulting from investment operations 3.02 2.37 2.18 2.33 2.43 3.11 Distributions to shareholders (3) (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net decrease resulting from distributions to shareholders (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net Asset Value, End of Year $ 36.67 $ 33.57 $ 33.64 $ 33.31 $ 34.06 $ 37.25 Net assets, end of period $ 153,256 $ 172,969 $ 88,416 $ 87,674 $ 411,918 $ 65,116 Average net assets (4) $ 150,234 $ 112,834 $ 85,790 $ 74,361 $ 351,798 $ 63,606 Shares outstanding, end of period 4,179 5,152 2,629 2,632 12,095 1,748 Distributions declared $ 5,281 $ 4,260 $ 2,604 $ 2,562 $ 13,156 $ 2,200 Total investment return based on net asset value before total return incentive fee (5) 9.60 % 8.80 % 8.54 % 9.04 % 9.24 % 9.97 % Total investment return based on net asset value after total return incentive fee (5) 8.53 % 7.45 % 6.83 % 7.38 % 7.54 % 8.96 % RATIOS/SUPPLEMENTAL DATA: Ratios to average net assets: (4)(6) Total operating expenses before total return incentive fee 1.24 % 3.61 % 3.79 % 3.38 % 2.94 % 1.34 % Total operating expenses before Expense Support (reimbursement) 2.18 % 5.54 % 5.45 % 5.21 % 4.80 % 2.30 % Total operating expenses after Expense Support (reimbursement) 2.58 % 5.54 % 5.45 % 5.21 % 4.81 % 2.30 % Net investment income before total return incentive fee 4.89 % 4.06 % 3.36 % 3.98 % 4.25 % 5.10 % Net investment income 3.95 % 2.13 % 1.70 % 2.15 % 2.40 % 4.15 % Year Ended December 31, 2022 Class FA Class A Class T Class D Shares Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Year $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 Net investment income before reimbursement of Expense Support (1) 1.65 0.86 0.57 0.66 0.82 1.59 Expense Support (reimbursement) (1) (0.32) (0.15) — — (0.12) — Net investment income (1) 1.33 0.71 0.57 0.66 0.70 1.59 Net realized and unrealized gains, net of taxes (1)(2) 2.20 2.21 2.23 2.23 2.25 2.21 Net increase resulting from investment operations 3.53 2.92 2.80 2.89 2.95 3.80 Distributions to shareholders (3) (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net decrease resulting from distributions to shareholders (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net Asset Value, End of Year $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 Net assets, end of period $ 148,111 $ 71,242 $ 76,048 $ 62,844 $ 288,387 $ 62,467 Average net assets (4) $ 146,773 $ 56,292 $ 59,959 $ 42,716 $ 219,256 $ 59,895 Shares outstanding, end of period 4,244 2,195 2,343 1,957 8,772 1,765 Distributions declared $ 5,475 $ 2,230 $ 1,901 $ 1,536 $ 8,562 $ 2,207 Total investment return based on net asset value before total return incentive fee (5) 12.21 % 11.76 % 11.26 % 11.51 % 11.63 % 13.13 % Total investment return based on net asset value after total return incentive fee (5) 10.79 % 9.69 % 9.29 % 9.69 % 9.66 % 11.80 % RATIOS/SUPPLEMENTAL DATA: Ratios to average net assets: (4)(6) Total operating expenses before total return incentive fee 1.34 % 3.17 % 4.19 % 4.13 % 3.34 % 1.51 % Total operating expenses before Expense Support (reimbursement) 2.51 % 5.57 % 6.49 % 6.58 % 5.72 % 2.75 % Total operating expenses after Expense Support (reimbursement) 3.46 % 6.07 % 6.49 % 6.58 % 6.07 % 2.75 % Net investment income before total return incentive fee 5.15 % 4.64 % 4.12 % 4.56 % 4.58 % 5.92 % Net investment income 3.97 % 2.24 % 1.83 % 2.11 % 2.20 % 4.67 % FOOTNOTES: (1) The per share amounts presented are based on weighted average shares outstanding during the period. (2) 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. (3) 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. (4) 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. (5) 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.” (6) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions In January, February and March 2024, the Company’s board of directors declared a monthly cash distribution on the outstanding shares of all classes of common shares of record on February 26, 2024, March 26, 2024 and April 26, 2024, respectively, 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 January, February and March 2024, 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 January 26, 2024, February 27, 2024 and March 28, 2024, respectively. 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 January 26, 2024: Offering Price, Per Share $ 36.69 $ 35.32 $ 33.31 $ 34.06 Selling Commissions, Per Share 2.20 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — Effective February 27, 2024: Offering Price, Per Share $ 36.66 $ 35.28 $ 33.28 $ 34.02 Selling Commissions, Per Share 2.20 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — Effective March 28, 2024: Offering Price, Per Share $ 36.78 $ 35.38 $ 33.38 $ 34.13 Selling Commissions, Per Share 2.21 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — Capital Transactions During the period January 1, 2024 through March 22, 2024, 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 Net Proceeds to Company Shares Net Proceeds to Company Average Net Proceeds per Share Class A 386 $ 13,279 $ (308) $ 12,971 22 $ 737 408 $ 13,708 $ 33.60 Class T 80 2,810 (133) 2,677 9 303 89 2,980 33.48 Class D 69 2,316 — 2,316 9 297 78 2,613 33.50 Class I 495 16,836 — 16,836 39 1,336 534 18,172 34.03 1,030 $ 35,241 $ (441) $ 34,800 79 $ 2,673 1,109 $ 37,473 $ 33.79 Investments In February 2024, the Company, through its wholly-owned subsidiaries, USAW Strategic Capital EquityCo, LLC and USAW Strategic Capital DebtCo, LLC, made a co-investment in USAW of approximately $10.0 million. The Company’s co-investment is comprised of a minority common equity position of approximately $8.6 million and $1.4 million of senior secured subordinated notes. Borrowings In February 2024, the Company entered into the 2024 Loan Agreement and related promissory note with Valley National Bank for the 2024 Line of Credit. See Note 8. “Borrowings.” |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 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 | 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 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 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and money market funds 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. As of December 31, 2023, the Company held cash equivalents in the form of money market fund shares held in Fidelity Government Money Market with a fair value of approximately $73.1 million which represents 7.2% of total assets. The Company did not hold cash equivalents as of December 31, 2022. Cash equivalents in the form of money market fund shares are valued at their reported net asset value on the measurement date, and are categorized within Level 1 of the fair value hierarchy under ASC Topic 820, as the net asset values are readily available and represent the prices of active trading in the market. |
Use of Estimates | 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 GAAP. The uncertainty of future events 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 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. U.S. Treasury bills are classified as Level 1 assets and are recorded at fair value based on the average of the bid and ask quotes for identical instruments. The Company’s board of directors is responsible for determining in good faith the fair value of the Company’s Level 3 investments in accordance with the Company’s 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 Level 3 assets requires judgment, which include 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 Level 3 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 | 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 amortized 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 from loans and debt securities 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. Original issue discounts (“OID”) on U.S. Treasury bills are reflected in the initial cost basis and the Company accretes such amounts as interest income over the term of the respective security using the effective interest method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts. 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 shares at par value and (ii) paid in capital in excess of par value, excluding upfront selling commissions and dealer manager fees. |
Share Repurchases | Share Repurchases Note 7. “Capital Transactions” |
Offering Expenses | Offering Expenses 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 consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s 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 Fees 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, offering expenses, expense support (reimbursement), distribution and shareholder servicing fees 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. |
Net Investment Income per Share and Net Increase in Net Assets Resulting From Operations per Share | Net Investment Income per Share and Net Increase in Net Assets Resulting from Operations per Share Net investment income per share and net increase in net assets resulting from operations 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. The Company’s distributions declared prior to December 2022 were paid on a monthly basis one month in arrears. The Company’s distributions declared beginning in December 2022 are paid in the same month as the declared record date. Distributions are made on all classes of the Company’s shares at the same time. |
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 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” |
Recently Issued Accounting Standards Updates | Recently Issued Accounting Standards Updates In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. We are currently assessing the impact this guidance will have on our consolidated financial statements, however, we do not expect a material impact to our consolidated financials statements as ASU 2023-07 results in additional disclosure only. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our consolidated financial statements. |
Comprehensive Text Block List (
Comprehensive Text Block List (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Text Block [Abstract] | |
Class-specific Fee Expense by Share Class | The following table reflects class-specific expenses by share class during the year ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 Class FA Class A Class T Class D Class I Class S Base management fees $ 1,062 $ 2,104 $ 1,579 $ 1,388 $ 6,568 $ 507 Total return incentive fees 1,403 2,177 1,421 1,360 6,537 608 Offering expenses — 1,208 315 297 1,599 — Expense support (reimbursement) 610 — — — 34 — Other class-specific expenses (1) 34 91 880 400 187 24 Year Ended December 31, 2022 Class FA Class A Class T Class D Class I Class S Base management fees $ 1,144 $ 1,050 $ 1,156 $ 823 $ 4,245 $ 522 Total return incentive fees 1,719 1,350 1,377 1,046 5,218 746 Offering expenses — 326 378 444 1,667 — Expense support (reimbursement) 1,393 278 — — 778 — Other class-specific expenses (1) 32 73 617 229 102 59 (1) Other class-specific expenses consist of distribution and shareholder servicing fees and certain transfer agent fees. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Portfolio | The Company’s investment portfolio is summarized as follows as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 200,816 $ 200,816 22.9 % 20.5 % Second lien 75,342 75,342 8.6 7.7 Total senior secured debt 276,158 276,158 31.5 28.2 Equity 443,818 600,685 68.5 61.3 Total investments $ 719,976 $ 876,843 100.0 % 89.5 % As of December 31, 2022 Asset Category Cost Fair Value Fair Value Fair Value Senior secured debt First lien $ 101,600 $ 101,600 14.6 % 14.3 % Second lien 75,342 75,342 10.8 10.6 Total senior secured debt 176,942 176,942 25.4 24.9 Equity 299,959 411,895 59.3 58.1 U.S. Treasury bills 106,216 106,242 15.3 15.0 Total investments $ 583,117 $ 695,079 100.0 % 98.0 % |
Industry Dispersion of Investment Portfolio as Percentage of Total Fair Value of Investments | The industry dispersion of the Company’s portfolio company investments, based on fair value, as of December 31, 2023 and 2022 were as follows: As of December 31, Industry 2023 2022 Healthcare Supplies 20.0 % 9.9 % Engineered Products 16.9 18.2 Commercial and Professional Services 13.6 13.8 Business Services 13.5 6.7 Visual Safety Solutions 9.5 12.6 Information Services and Advisory Solutions 8.3 10.2 Real Estate Services 7.9 12.8 Sanitation Products 6.7 8.9 Hobby Goods and Supplies 3.6 6.9 Total 100.0 % 100.0 % |
Summary of Operating and Balance Sheet Data | The following tables present audited summarized operating data for the years ended December 31, 2023 and 2022, and summarized balance sheet data as of December 31, 2023 and December 31, 2022 for the Company’s portfolio companies (in thousands): Summarized Operating Data Year Ended December 31, 2023 Lawn Doctor Polyform Round-tables HSH ATA Clarion Vektek Tac-Med (1) Milton Other (2) Revenues $ 40,996 $ 16,073 $ 17,507 $ 35,575 $ 48,448 $ 13,094 $ 38,608 $ 32,332 $ 83,063 $ 156,676 Expenses (37,462) (17,585) (15,673) (31,176) (51,930) (13,342) (37,577) (39,586) (79,864) (161,338) Income (loss) before taxes 3,534 (1,512) 1,834 4,399 (3,482) (248) 1,031 (7,254) 3,199 (4,662) Income tax (expense) benefit (1,059) 440 (602) (1,319) — 70 — 1,714 (2,177) 297 Consolidated net income (loss) 2,475 (1,072) 1,232 3,080 (3,482) (178) 1,031 (5,540) 1,022 (4,365) Net loss attributable to non-controlling interests 266 — — — — — — — — — Net income (loss) $ 2,741 $ (1,072) $ 1,232 $ 3,080 $ (3,482) $ (178) $ 1,031 $ (5,540) $ 1,022 $ (4,365) Year Ended December 31, 2022 Lawn Doctor Polyform Round-tables HSH ATA Douglas Clarion Vektek (3) Milton Other (4) Revenues $ 38,613 $ 23,106 $ 15,403 $ 36,413 $ 60,573 $ 27,402 $ 13,132 $ 26,190 $ 69,588 $ 93,492 Expenses (34,818) (21,141) (14,458) (32,905) (60,178) (26,781) (12,171) (26,513) (76,035) (88,961) Income (loss) before taxes 3,795 1,965 945 3,508 395 621 961 (323) (6,447) 4,531 Income tax (expense) benefit (1,407) (536) (109) (982) — (74) (278) (90) 1,046 290 Consolidated net income (loss) 2,388 1,429 836 2,526 395 547 683 (413) (5,401) 4,821 Net loss attributable to non-controlling interests 213 — — — — — — — — — Net income (loss) $ 2,601 $ 1,429 $ 836 $ 2,526 $ 395 $ 547 $ 683 $ (413) $ (5,401) $ 4,821 Summarized Balance Sheet Data As of December 31, 2023 Lawn Doctor Polyform Round-tables HSH ATA Clarion Vektek TacMed Milton Other (2) Current assets $ 10,359 $ 7,601 $ 2,376 $ 11,476 $ 7,381 $ 5,049 $ 14,846 $ 22,128 $ 32,440 $ 64,297 Non-current assets 89,666 25,515 59,192 33,509 81,860 75,368 99,254 92,209 107,726 465,476 Current liabilities 7,484 1,111 5,071 4,955 5,668 1,405 2,182 4,206 8,230 52,203 Non-current liabilities 62,530 20,830 19,399 27,158 42,267 22,675 49,625 35,345 80,585 222,708 Non-controlling interest 246 — — — — — — — — — Stockholders’ equity 29,765 11,175 37,098 12,872 41,306 56,337 62,293 74,786 51,351 254,862 Ownership percentage (5) 61% 87% 81% 75% 75% 96% 84% 95% 13% (6) As of December 31, 2022 Lawn Doctor Polyform Round-tables HSH ATA Douglas Clarion Vektek Milton Other (4) Current assets $ 12,412 $ 9,532 $ 2,455 $ 11,780 $ 7,219 $ 11,650 $ 3,399 $ 14,832 $ 28,894 $ 60,887 Non-current assets 91,900 27,263 59,865 36,414 88,340 47,614 69,685 101,917 81,520 300,986 Current liabilities 8,476 1,463 2,461 4,160 6,834 5,431 457 2,536 6,614 36,853 Non-current liabilities 63,013 21,484 21,714 27,783 43,915 15,939 22,500 48,654 74,434 164,579 Non-controlling interest 512 — — — — — — — — — Stockholders’ equity 32,311 13,848 38,145 16,251 44,810 37,894 50,127 65,559 29,366 160,441 Ownership percentage (5) 61% 87% 81% 75% 75% 90% 98% 84% 13% (6) FOOTNOTES: (1) Summarized operating data presented for TacMed is for the period from March 24, 2023 (the date the Company acquired its investments in TacMed) to December 31, 2023. (2) Includes aggregate summarized financial information for the Company’s co-investments (Resolution Economics and Blue Ridge) in which the Company owns a minority equity interest and Douglas and Sill, which is presented for the period from October 20, 2023 (the date the Company acquired its investments in Sill) to December 31, 2023, each of which was individually less than 10% significance for the periods presented. (3) Summarized operating data presented for Vektek is for the period from May 6, 2022 (the date the Company acquired its investments in Vektek) to December 31, 2022. (4) Includes aggregate summarized financial information for the Company’s co-investments (Resolution Economics and Blue Ridge) in which the Company owns a minority equity interest, each of which was individually less than 10% significance for the periods presented. Summarized financial information for Resolution Economics is reported on a one-month lag. (5) Represents the Company’s undiluted ownership percentage as of the end of the period presented, rounded to the nearest percent. (6) As of December 31, 2023 and 2022, the Company owned approximately 8% of Resolution Economics, 16% of Blue Ridge and 90% of Douglas. As of December 31, 2023, the Company owned approximately 99% of Sill. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 As of December 31, 2022 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Senior Debt $ — $ — $ 276,158 $ 276,158 $ — $ — $ 176,942 $ 176,942 Equity — — 600,685 600,685 — — 411,895 411,895 U.S. Treasury bills — — — — 106,242 — — 106,242 Total investments $ — $ — $ 876,843 $ 876,843 $ 106,242 $ — $ 588,837 $ 695,079 |
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 December 31, 2023 and 2022 were as follows (in thousands): As of December 31, 2023 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 276,158 Discounted Cash Flow Discount Rate 10.5% – 14.5% (12.5%) 6.9x – 15.1x (10.8x) 6.3x – 16.0x (11.9x) Decrease Equity 600,685 Discounted Cash Flow Discount Rate 10.5% – 14.5% (12.5%) 6.9x – 15.1x (10.8x) 6.3x – 16.0x (11.9x) Decrease Total $ 876,843 As of December 31, 2022 Asset Group Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Impact to Valuation from an Increase in Input (2) Senior Debt $ 176,942 Discounted Cash Flow Discount Rate 9.8% – 13.8% (11.6%) 6.5x – 13.2x (9.8x) 6.5x – 13x (10.8x) Decrease Equity 411,895 Discounted Cash Flow Discount Rate 9.8% – 13.8% (11.6%) 6.5x – 13.2x (9.8x) 6.5x – 13x (10.8x) Decrease Total $ 588,837 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 years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 Senior Debt Equity Total Fair value balance as of January 1, 2023 $ 176,942 $ 411,895 $ 588,837 Additions 99,341 144,025 243,366 Principal repayments (125) — (125) Return of capital (1) — (165) (165) Net change in unrealized appreciation (2) — 44,930 44,930 Fair value balance as of December 31, 2023 $ 276,158 $ 600,685 $ 876,843 Change in net unrealized appreciation on investments held as of December 31, 2023 (2) $ — $ 44,930 $ 44,930 Year Ended December 31, 2022 Senior Debt Equity Total Fair value balance as of January 1, 2022 $ 152,542 $ 303,455 $ 455,997 Additions 24,400 64,984 89,384 Return of capital (1) — (237) (237) Net change in unrealized appreciation (2) — 43,693 43,693 Fair value balance as of December 31, 2022 $ 176,942 $ 411,895 $ 588,837 Change in net unrealized appreciation on investments held as of December 31, 2022 (2) $ — $ 43,693 $ 43,693 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. (2) Included in net change in unrealized appreciation |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
High Water Marks | or the years ended December 31, 2023 and 2022: For the year ended: Class FA Class A Class T Class D Class I Class S December 31, 2023 $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 December 31, 2022 32.62 30.78 30.66 30.35 31.18 32.84 Related party fees and expenses incurred for the years ended December 31, 2023 and 2022 are summarized below (in thousands): Years Ended December 31, Related Party Source Agreement & Description 2023 2022 Managing Dealer Managing Dealer Agreement: Commissions $ 2,712 $ 1,799 Dealer manager fees 782 933 Distribution and shareholder servicing fees 1,184 789 Manager and Sub-Manager Management Agreement and Sub-Management Agreement: Offering expense reimbursement (1)(2) 3,383 2,814 Base management fees (1) 13,208 8,941 Total return incentive fees (1) 13,506 11,456 Manager and Sub-Manager Expense Support and Conditional Reimbursement Agreement: Reimbursement of Expense Support 644 2,449 Manager Administrative Services Agreement: Reimbursement of third-party operating expenses (1) 91 84 Sub-Manager Sub-Management Agreement: Reimbursement of third-party pursuit costs (1)(3) 1,875 764 FOOTNOTES: (1) Expenses subject to Expense Support, if applicable. There was no Expense Support recorded for the years ended December 31, 2023 and 2022. (2) Offering expense reimbursements are capitalized on the Company’s consolidated statements of assets and liabilities as deferred offering expenses and expensed to the Company’s 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 December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Total return incentive fees $ 13,506 $ 11,456 Reimbursement of expense support 644 2,449 Base management fees 1,338 864 Offering expenses 92 331 Distribution and shareholder servicing fees 106 84 Reimbursement of third-party operating expenses and pursuit costs 101 425 Total due to related parties $ 15,787 $ 15,609 |
Schedule of Expense Support | The following table summarizes annual Expense Support received, 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 December 31, 2023 (in thousands): For the Year Ended Amount of Expense Support Received Expense Support Reimbursed (1) Unreimbursed Expense Support Subject to Reimbursement (2) Reimbursement Eligibility Expiration December 31, 2018 $ 390 $ (353) $ — (3) December 31, 2019 1,372 (1,339) — (3) December 31, 2020 3,301 (3,232) 69 March 31, 2024 $ 5,063 $ (4,924) $ 69 FOOTNOTES: (1) Includes approximately $644 and $2,449 accrued as of December 31, 2023 and 2022, respectively, which were paid to the Manager and Sub-Manager in January 2024 and 2023, respectively. Expense support reimbursement is calculated by share class and subject to limitations as defined in the Expense Support and Conditional Reimbursement Agreement described above. (2) Management believes that additional reimbursement by the Company to the Manager and Sub-Manager related to the year ended December 31, 2020 is not probable under the terms of the Expense Support and Conditional Reimbursement Agreement as of December 31, 2023. |
Distributions (Tables)
Distributions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Distributions Declared | The following table reflects the total distributions declared during the years ended December 31, 2023 and 2022 (in thousands except per share data): Distribution Period Distributions Declared (1) Distributions Reinvested (2) Cash Distributions Net of Distributions Reinvested Year ended December 31, 2023 $ 30,063 $ 12,759 $ 17,304 Year ended December 31, 2022 21,911 7,794 14,117 FOOTNOTES: (1) The Company’s board of directors declared distributions per share on a monthly basis. See Note 12. “ ” Record Date Period Class FA Class A Class T Class D Class I Class S January 1, 2023 - December 31, 2023 $ 0.104167 $ 0.104167 $ 0.083333 $ 0.093750 $ 0.104167 $ 0.104167 January 1, 2022 - December 31, 2022 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): Years Ended December 31, 2023 2022 Amount % of Distributions Declared Amount % of Distributions Declared Net investment income (1) $ 22,466 74.7 % $ 16,716 76.3 % Distributions in excess of net investment income (2) 7,597 25.3 5,195 23.7 Total distributions declared $ 30,063 100.0 % $ 21,911 100.0 % FOOTNOTES: (1) Net investment income includes reimbursement of Expense Support of $644 and $2,449 for the years ended December 31, 2023 and 2022, respectively. See Note 5. “Related Party Transactions” |
Capital Transactions (Tables)
Capital Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023 and 2022 (in thousands except per share data): Year Ended December 31, 2023 Proceeds from Public Offerings Distributions Reinvested Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Issued Proceeds to Company Shares Issued Net Proceeds to Company Average Net Proceeds per Share Class A 2,628 $ 88,844 $ (2,433) $ 86,411 89 $ 2,937 2,717 $ 89,348 $ 32.89 Class T 669 22,975 (1,061) 21,914 53 1,755 722 23,669 32.82 Class D 669 21,758 — 21,758 46 1,510 715 23,268 32.55 Class I 3,517 117,118 — 117,118 197 6,557 3,714 123,675 33.29 7,483 $ 250,695 $ (3,494) $ 247,201 385 $ 12,759 7,868 $ 259,960 $ 33.05 Year Ended December 31, 2022 Proceeds from Public Offerings Distributions Reinvested (1) Total Share Class Shares Issued Gross Proceeds Sales Load (2) Net Proceeds to Company Shares Issued Proceeds to Company Shares Issued Net Proceeds to Company Average Net Proceeds per Share Class A 641 $ 21,727 $ (1,572) $ 20,155 58 $ 1,842 699 $ 21,997 $ 31.46 Class T 763 25,194 (1,160) 24,034 41 1,281 804 25,315 31.49 Class D 949 29,600 — 29,600 29 940 978 30,540 31.19 Class I 3,480 111,101 — 111,101 132 4,230 3,612 115,331 31.92 5,833 $ 187,622 $ (2,732) $ 184,890 260 $ 8,293 6,093 $ 193,183 $ 31.70 FOOTNOTES: (1) Amounts are based on distribution reinvestment date. Distributions declared prior to distributions declared in December 2022 were paid or reinvested one month in arrears. Distributions are reinvested in the month they are declared beginning with distributions declared in December 2022. (2) Note 5. “Related Party Transactions” |
Summary of Shares Repurchased | The following table summarizes the shares repurchased during the years ended December 31, 2023 and 2022 (in thousands except per share data): Years Ended December 31, 2023 2022 Share Class Number of Shares Total Consideration Average Price Paid per Share Number of Shares Total Consideration Average Price Paid per Share Class FA 65 $ 2,309 $ 35.75 315 $ 10,493 $ 33.31 Class A 127 4,187 33.03 24 738 31.36 Class T 69 2,270 33.13 11 338 31.28 Class D 40 1,318 32.73 30 952 31.35 Class I 391 13,098 33.44 250 7,998 31.95 Class S 17 624 36.45 1 28 33.74 Total 709 $ 23,806 $ 33.58 631 $ 20,547 $ 32.57 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense and Deferred Taxes | The components of income tax expense (benefit) were as follows during the years ended December 31, 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Current: Federal $ — $ 63 State — 18 Total current tax expense — 81 Deferred: Federal 3,010 2,174 State 205 196 Total deferred tax expense 3,215 2,370 Income tax expense $ 3,215 $ 2,451 |
Significant Components of Deferred Tax Assets | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Carryforwards for net operating loss $ 1,249 $ 770 Unrealized depreciation on investments 913 — Other — 27 Valuation allowance (1,324) (60) Total deferred tax assets 838 737 Deferred tax liabilities: Unrealized appreciation on investments (8,300) (4,984) Total deferred tax liabilities (8,300) (4,984) Deferred tax liabilities, net $ (7,462) $ (4,247) |
Reconciliation of Income Tax Expense to Statutory Rate | The table below presents a reconciliation of tax expense the Company would be subject to if it were taxed as a corporation to the Company’s actual income tax expense incurred by its Taxable Subsidiaries for the years ended December 31, 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Tax expense computed at the federal statutory rate $ 14,148 21.0 % $ 12,708 21.0 % State income tax expense net of federal benefit 205 0.3 214 0.4 Benefit of partnership structure (11,138) (16.5) (10,471) (17.3) Income tax expense $ 3,215 4.8 % $ 2,451 4.1 % |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023 and 2022 (in thousands except per share data): Year Ended December 31, 2023 Class FA Class A Class T Class D Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Year $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 Net investment income, before reimbursement of Expense Support (1) 1.55 0.70 0.56 0.70 0.80 1.50 Expense Support (reimbursement) (1) (0.14) — — — — — Net investment income (1) 1.41 0.70 0.56 0.70 0.80 1.50 Net realized and unrealized gains, net of taxes (1)(2) 1.61 1.67 1.62 1.63 1.63 1.61 Net increase resulting from investment operations 3.02 2.37 2.18 2.33 2.43 3.11 Distributions to shareholders (3) (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net decrease resulting from distributions to shareholders (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net Asset Value, End of Year $ 36.67 $ 33.57 $ 33.64 $ 33.31 $ 34.06 $ 37.25 Net assets, end of period $ 153,256 $ 172,969 $ 88,416 $ 87,674 $ 411,918 $ 65,116 Average net assets (4) $ 150,234 $ 112,834 $ 85,790 $ 74,361 $ 351,798 $ 63,606 Shares outstanding, end of period 4,179 5,152 2,629 2,632 12,095 1,748 Distributions declared $ 5,281 $ 4,260 $ 2,604 $ 2,562 $ 13,156 $ 2,200 Total investment return based on net asset value before total return incentive fee (5) 9.60 % 8.80 % 8.54 % 9.04 % 9.24 % 9.97 % Total investment return based on net asset value after total return incentive fee (5) 8.53 % 7.45 % 6.83 % 7.38 % 7.54 % 8.96 % RATIOS/SUPPLEMENTAL DATA: Ratios to average net assets: (4)(6) Total operating expenses before total return incentive fee 1.24 % 3.61 % 3.79 % 3.38 % 2.94 % 1.34 % Total operating expenses before Expense Support (reimbursement) 2.18 % 5.54 % 5.45 % 5.21 % 4.80 % 2.30 % Total operating expenses after Expense Support (reimbursement) 2.58 % 5.54 % 5.45 % 5.21 % 4.81 % 2.30 % Net investment income before total return incentive fee 4.89 % 4.06 % 3.36 % 3.98 % 4.25 % 5.10 % Net investment income 3.95 % 2.13 % 1.70 % 2.15 % 2.40 % 4.15 % Year Ended December 31, 2022 Class FA Class A Class T Class D Shares Class I Class S OPERATING PERFORMANCE PER SHARE Net Asset Value, Beginning of Year $ 32.62 $ 30.78 $ 30.66 $ 30.35 $ 31.18 $ 32.84 Net investment income before reimbursement of Expense Support (1) 1.65 0.86 0.57 0.66 0.82 1.59 Expense Support (reimbursement) (1) (0.32) (0.15) — — (0.12) — Net investment income (1) 1.33 0.71 0.57 0.66 0.70 1.59 Net realized and unrealized gains, net of taxes (1)(2) 2.20 2.21 2.23 2.23 2.25 2.21 Net increase resulting from investment operations 3.53 2.92 2.80 2.89 2.95 3.80 Distributions to shareholders (3) (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net decrease resulting from distributions to shareholders (1.25) (1.25) (1.00) (1.13) (1.25) (1.25) Net Asset Value, End of Year $ 34.90 $ 32.45 $ 32.46 $ 32.11 $ 32.88 $ 35.39 Net assets, end of period $ 148,111 $ 71,242 $ 76,048 $ 62,844 $ 288,387 $ 62,467 Average net assets (4) $ 146,773 $ 56,292 $ 59,959 $ 42,716 $ 219,256 $ 59,895 Shares outstanding, end of period 4,244 2,195 2,343 1,957 8,772 1,765 Distributions declared $ 5,475 $ 2,230 $ 1,901 $ 1,536 $ 8,562 $ 2,207 Total investment return based on net asset value before total return incentive fee (5) 12.21 % 11.76 % 11.26 % 11.51 % 11.63 % 13.13 % Total investment return based on net asset value after total return incentive fee (5) 10.79 % 9.69 % 9.29 % 9.69 % 9.66 % 11.80 % RATIOS/SUPPLEMENTAL DATA: Ratios to average net assets: (4)(6) Total operating expenses before total return incentive fee 1.34 % 3.17 % 4.19 % 4.13 % 3.34 % 1.51 % Total operating expenses before Expense Support (reimbursement) 2.51 % 5.57 % 6.49 % 6.58 % 5.72 % 2.75 % Total operating expenses after Expense Support (reimbursement) 3.46 % 6.07 % 6.49 % 6.58 % 6.07 % 2.75 % Net investment income before total return incentive fee 5.15 % 4.64 % 4.12 % 4.56 % 4.58 % 5.92 % Net investment income 3.97 % 2.24 % 1.83 % 2.11 % 2.20 % 4.67 % FOOTNOTES: (1) The per share amounts presented are based on weighted average shares outstanding during the period. (2) 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. (3) 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. (4) 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. (5) 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.” (6) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 January 26, 2024: Offering Price, Per Share $ 36.69 $ 35.32 $ 33.31 $ 34.06 Selling Commissions, Per Share 2.20 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — Effective February 27, 2024: Offering Price, Per Share $ 36.66 $ 35.28 $ 33.28 $ 34.02 Selling Commissions, Per Share 2.20 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — Effective March 28, 2024: Offering Price, Per Share $ 36.78 $ 35.38 $ 33.38 $ 34.13 Selling Commissions, Per Share 2.21 1.06 — — Dealer Manager Fees, Per Share 0.92 0.62 — — |
Schedule of Gross Proceeds | During the period January 1, 2024 through March 22, 2024, 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 Net Proceeds to Company Shares Net Proceeds to Company Average Net Proceeds per Share Class A 386 $ 13,279 $ (308) $ 12,971 22 $ 737 408 $ 13,708 $ 33.60 Class T 80 2,810 (133) 2,677 9 303 89 2,980 33.48 Class D 69 2,316 — 2,316 9 297 78 2,613 33.50 Class I 495 16,836 — 16,836 39 1,336 534 18,172 34.03 1,030 $ 35,241 $ (441) $ 34,800 79 $ 2,673 1,109 $ 37,473 $ 33.79 |
Principal Business and Organi_2
Principal Business and Organization - Additional Information (Detail) | 12 Months Ended | ||
Nov. 01, 2021 USD ($) | Mar. 07, 2018 USD ($) | Dec. 31, 2023 USD ($) portfolioCompany | |
Organization And Business Activities [Line Items] | |||
Number classes of shares | portfolioCompany | 4 | ||
Initial Public Offering, Including Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares authorized for sale | $ 1,100,000,000 | ||
Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares authorized for sale | $ 100,000,000 | $ 100,000,000 | |
Follow On Public Offering, Including Distribution Reinvestment Plan | |||
Organization And Business Activities [Line Items] | |||
Shares authorized for sale | $ 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 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 134,453 | $ 36,837 |
Percent of net of assets | 7.20% | |
Money Market Funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 73,100 |
Significant Accounting Polici_4
Significant Accounting Policies - Class-specific Fee Expense by Share Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | $ 13,208 | $ 8,941 |
Total return incentive fees | 13,506 | 11,456 |
Class FA | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 1,062 | 1,144 |
Total return incentive fees | 1,403 | 1,719 |
Offering expenses | 0 | 0 |
Expense support (reimbursement) | 610 | 1,393 |
Other class-specific expenses | 34 | 32 |
Class A | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 2,104 | 1,050 |
Total return incentive fees | 2,177 | 1,350 |
Offering expenses | 1,208 | 326 |
Expense support (reimbursement) | 0 | 278 |
Other class-specific expenses | 91 | 73 |
Class T | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 1,579 | 1,156 |
Total return incentive fees | 1,421 | 1,377 |
Offering expenses | 315 | 378 |
Expense support (reimbursement) | 0 | 0 |
Other class-specific expenses | 880 | 617 |
Class D | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 1,388 | 823 |
Total return incentive fees | 1,360 | 1,046 |
Offering expenses | 297 | 444 |
Expense support (reimbursement) | 0 | 0 |
Other class-specific expenses | 400 | 229 |
Class I | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 6,568 | 4,245 |
Total return incentive fees | 6,537 | 5,218 |
Offering expenses | 1,599 | 1,667 |
Expense support (reimbursement) | 34 | 778 |
Other class-specific expenses | 187 | 102 |
Class S | ||
Class-specific Fee Expense by Share Class [Line Items] | ||
Base management fees | 507 | 522 |
Total return incentive fees | 608 | 746 |
Offering expenses | 0 | 0 |
Expense support (reimbursement) | 0 | 0 |
Other class-specific expenses | $ 24 | $ 59 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Investment portfolioCompany | Dec. 31, 2022 USD ($) Investment portfolioCompany | ||
Schedule of Investments [Line Items] | |||
Number of portfolio companies invested in during the year | portfolioCompany | 2 | 1 | |
Number of debt investments on non accrual status | Investment | 0 | 0 | |
Vektek Holdings, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | $ 81,300 | ||
ATA Holding Company, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | 8,100 | ||
Clarion Safety Systems, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | $ 8,500 | 8,100 | |
Blue Ridge ESOP Associates | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | $ 8,100 | ||
Sill Holdings, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | 180,400 | ||
Round-tables | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | 8,500 | ||
Resolution Economics, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | 8,500 | ||
Tacmed Holdings, LLC | |||
Schedule of Investments [Line Items] | |||
Payments to acquire investment | $ 180,400 | ||
Total Senior Secured Notes | |||
Schedule of Investments [Line Items] | |||
Weighted average yield on debt investments (in percent) | 14.20% | ||
Weighted average years to maturity | 4 | ||
U.S. Treasury Bills | Minimum | |||
Schedule of Investments [Line Items] | |||
Short-term investment, other, average yield | 3.40% | 2.10% | |
U.S. Treasury Bills | Maximum | |||
Schedule of Investments [Line Items] | |||
Short-term investment, other, average yield | 5% | 3.90% | |
First lien | Lawn Doctor, Inc. | Commercial and Professional Services | |||
Schedule of Investments [Line Items] | |||
Investment | [1],[2],[3] | $ 29,490 | |
First lien | Vektek Holdings, LLC | Engineered Products | |||
Schedule of Investments [Line Items] | |||
Investment | [1],[2],[3] | 24,875 | |
First lien | Vektek Holdings, LLC | |||
Schedule of Investments [Line Items] | |||
Investment | 54,300 | ||
First lien | Lawn Doctor, Inc. | |||
Schedule of Investments [Line Items] | |||
Investment | $ 54,300 | ||
[1]As of December 31, 2023, the senior debt investments in Lawn Doctor and Vektek accrue interest at a per annum rate of SOFR + 4.60% and SOFR + 4.35%, respectively. SOFR at December 31, 2023 was 5.34%.[2]Percentages represent fair value as a percentage of net assets for each investment category.[3]Security may be an obligation of one or more entities affiliated with the named company. |
Investments - Summary of Invest
Investments - Summary of Investment Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 719,976 | [1],[2] | $ 583,117 | [3],[4] |
Fair Value | $ 876,843 | [1],[2] | $ 695,079 | [3],[4] |
Fair Value Percentage of Investment Portfolio | 100% | 100% | ||
Fair Value Percentage of Net Assets | 89.50% | [1],[2] | 98% | |
First lien | ||||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 200,816 | $ 101,600 | ||
Fair Value | $ 200,816 | $ 101,600 | ||
Fair Value Percentage of Investment Portfolio | 22.90% | 14.60% | ||
Fair Value Percentage of Net Assets | 20.50% | 14.30% | ||
Second lien | ||||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 75,342 | $ 75,342 | ||
Fair Value | $ 75,342 | $ 75,342 | ||
Fair Value Percentage of Investment Portfolio | 8.60% | 10.80% | ||
Fair Value Percentage of Net Assets | 7.70% | 10.60% | ||
Total Senior Secured Notes | ||||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 276,158 | $ 176,942 | ||
Fair Value | $ 276,158 | $ 176,942 | ||
Fair Value Percentage of Investment Portfolio | 31.50% | 25.40% | ||
Fair Value Percentage of Net Assets | 28.20% | 24.90% | ||
Equity | ||||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 443,818 | $ 299,959 | ||
Fair Value | $ 600,685 | $ 411,895 | ||
Fair Value Percentage of Investment Portfolio | 68.50% | 59.30% | ||
Fair Value Percentage of Net Assets | 61.30% | 58.10% | ||
U.S. Treasury Bills | ||||
Summary of Investment Holdings [Line Items] | ||||
Amortized Cost | $ 106,216 | |||
Fair Value | $ 0 | $ 106,242 | ||
Fair Value Percentage of Investment Portfolio | 15.30% | |||
Fair Value Percentage of Net Assets | 15% | |||
[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) | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 100% | 100% |
Healthcare Supplies | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 20% | 9.90% |
Engineered Products | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 16.90% | 18.20% |
Commercial and Professional Services | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 13.60% | 13.80% |
Business Services | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 13.50% | 6.70% |
Visual Safety Solutions | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 9.50% | 12.60% |
Information Services and Advisory Solutions | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 8.30% | 10.20% |
Real Estate Services | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 7.90% | 12.80% |
Sanitation Products | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 6.70% | 8.90% |
Hobby Goods and Supplies | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of total fair value of investment | 3.60% | 6.90% |
Investments - Summary of Operat
Investments - Summary of Operating and Balance Sheet Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Company, Financial Highlights [Line Items] | ||
Expenses | $ (36,401) | $ (27,710) |
Income tax expense | (3,215) | (2,451) |
Net increase in net assets resulting from operations | 64,159 | 58,065 |
Lawn Doctor, Inc. | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 40,996 | 38,613 |
Expenses | (37,462) | (34,818) |
Income (loss) before taxes | 3,534 | 3,795 |
Income tax expense | (1,059) | (1,407) |
Consolidated net income (loss) | 2,475 | 2,388 |
Net loss attributable to non-controlling interests | 266 | 213 |
Net increase in net assets resulting from operations | 2,741 | 2,601 |
Current assets | 10,359 | 12,412 |
Non-current assets | 89,666 | 91,900 |
Current liabilities | 7,484 | 8,476 |
Non-current liabilities | 62,530 | 63,013 |
Non-controlling interest | 246 | 512 |
Stockholders’ equity | 29,765 | 32,311 |
Polyform Products, Co. | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 16,073 | 23,106 |
Expenses | (17,585) | (21,141) |
Income (loss) before taxes | (1,512) | 1,965 |
Income tax expense | 440 | (536) |
Consolidated net income (loss) | (1,072) | 1,429 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | (1,072) | 1,429 |
Current assets | 7,601 | 9,532 |
Non-current assets | 25,515 | 27,263 |
Current liabilities | 1,111 | 1,463 |
Non-current liabilities | 20,830 | 21,484 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 11,175 | 13,848 |
Round-tables | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 17,507 | 15,403 |
Expenses | (15,673) | (14,458) |
Income (loss) before taxes | 1,834 | 945 |
Income tax expense | (602) | (109) |
Consolidated net income (loss) | 1,232 | 836 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | 1,232 | 836 |
Current assets | 2,376 | 2,455 |
Non-current assets | 59,192 | 59,865 |
Current liabilities | 5,071 | 2,461 |
Non-current liabilities | 19,399 | 21,714 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 37,098 | 38,145 |
Healthcare Safety Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 35,575 | 36,413 |
Expenses | (31,176) | (32,905) |
Income (loss) before taxes | 4,399 | 3,508 |
Income tax expense | (1,319) | (982) |
Consolidated net income (loss) | 3,080 | 2,526 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | 3,080 | 2,526 |
Current assets | 11,476 | 11,780 |
Non-current assets | 33,509 | 36,414 |
Current liabilities | 4,955 | 4,160 |
Non-current liabilities | 27,158 | 27,783 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 12,872 | 16,251 |
ATA Holding Company, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 48,448 | 60,573 |
Expenses | (51,930) | (60,178) |
Income (loss) before taxes | (3,482) | 395 |
Income tax expense | 0 | 0 |
Consolidated net income (loss) | (3,482) | 395 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | (3,482) | 395 |
Current assets | 7,381 | 7,219 |
Non-current assets | 81,860 | 88,340 |
Current liabilities | 5,668 | 6,834 |
Non-current liabilities | 42,267 | 43,915 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 41,306 | 44,810 |
Douglas Machines Corp. | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 27,402 | |
Expenses | (26,781) | |
Income (loss) before taxes | 621 | |
Income tax expense | (74) | |
Consolidated net income (loss) | 547 | |
Net loss attributable to non-controlling interests | 0 | |
Net increase in net assets resulting from operations | 547 | |
Current assets | 11,650 | |
Non-current assets | 47,614 | |
Current liabilities | 5,431 | |
Non-current liabilities | 15,939 | |
Non-controlling interest | 0 | |
Stockholders’ equity | 37,894 | |
Clarion Safety Systems, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 13,094 | 13,132 |
Expenses | (13,342) | (12,171) |
Income (loss) before taxes | (248) | 961 |
Income tax expense | 70 | (278) |
Consolidated net income (loss) | (178) | 683 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | (178) | 683 |
Current assets | 5,049 | 3,399 |
Non-current assets | 75,368 | 69,685 |
Current liabilities | 1,405 | 457 |
Non-current liabilities | 22,675 | 22,500 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 56,337 | 50,127 |
Vektek Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 38,608 | 26,190 |
Expenses | (37,577) | (26,513) |
Income (loss) before taxes | 1,031 | (323) |
Income tax expense | 0 | (90) |
Consolidated net income (loss) | 1,031 | (413) |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | 1,031 | (413) |
Current assets | 14,846 | 14,832 |
Non-current assets | 99,254 | 101,917 |
Current liabilities | 2,182 | 2,536 |
Non-current liabilities | 49,625 | 48,654 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 62,293 | 65,559 |
Tacmed Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 32,332 | |
Expenses | (39,586) | |
Income (loss) before taxes | (7,254) | |
Income tax expense | 1,714 | |
Consolidated net income (loss) | (5,540) | |
Net loss attributable to non-controlling interests | 0 | |
Net increase in net assets resulting from operations | (5,540) | |
Current assets | 22,128 | |
Non-current assets | 92,209 | |
Current liabilities | 4,206 | |
Non-current liabilities | 35,345 | |
Non-controlling interest | 0 | |
Stockholders’ equity | 74,786 | |
Milton Industries Inc. | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 83,063 | 69,588 |
Expenses | (79,864) | (76,035) |
Income (loss) before taxes | 3,199 | (6,447) |
Income tax expense | (2,177) | 1,046 |
Consolidated net income (loss) | 1,022 | (5,401) |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | 1,022 | (5,401) |
Current assets | 32,440 | 28,894 |
Non-current assets | 107,726 | 81,520 |
Current liabilities | 8,230 | 6,614 |
Non-current liabilities | 80,585 | 74,434 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | 51,351 | 29,366 |
Other | ||
Investment Company, Financial Highlights [Line Items] | ||
Revenues | 156,676 | 93,492 |
Expenses | (161,338) | (88,961) |
Income (loss) before taxes | (4,662) | 4,531 |
Income tax expense | 297 | 290 |
Consolidated net income (loss) | (4,365) | 4,821 |
Net loss attributable to non-controlling interests | 0 | 0 |
Net increase in net assets resulting from operations | (4,365) | 4,821 |
Current assets | 64,297 | 60,887 |
Non-current assets | 465,476 | 300,986 |
Current liabilities | 52,203 | 36,853 |
Non-current liabilities | 222,708 | 164,579 |
Non-controlling interest | 0 | 0 |
Stockholders’ equity | $ 254,862 | $ 160,441 |
Lawn Doctor, Inc. | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 61% | 61% |
Polyform Products, Co. | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 87% | 87% |
Round-tables | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 81% | 81% |
Healthcare Safety Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 75% | 75% |
ATA Holding Company, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 75% | 75% |
Douglas Machines Corp. | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 90% | |
Clarion Safety Systems, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 96% | 98% |
Vektek Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 84% | 84% |
Tacmed Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 95% | |
Milton Industries Inc. | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 13% | 13% |
Resolution Economics, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 8% | 8% |
Blue Ridge ESOP Associates | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 16% | |
Sill Holdings, LLC | ||
Investment Company, Financial Highlights [Line Items] | ||
Ownership Percentage | 99% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Investments Categorization in Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | $ 876,843 | [1],[2] | $ 695,079 | [3],[4] |
Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 0 | 106,242 | ||
Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 876,843 | 588,837 | ||
Total Senior Secured Notes | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior Debt | 276,158 | 176,942 | ||
Fair Value | 276,158 | 176,942 | ||
Total Senior Secured Notes | Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior Debt | 0 | 0 | ||
Total Senior Secured Notes | Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior Debt | 0 | 0 | ||
Total Senior Secured Notes | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior Debt | 276,158 | 176,942 | ||
Equity | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity | 600,685 | 411,895 | ||
Fair Value | 600,685 | 411,895 | ||
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 | 600,685 | 411,895 | ||
U.S. Treasury Bills | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 0 | 106,242 | ||
U.S. Treasury Bills | Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 0 | 106,242 | ||
U.S. Treasury Bills | Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 0 | 0 | ||
U.S. Treasury Bills | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | $ 0 | $ 0 | ||
[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 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investments, at fair value | $ 876,843 | [1],[2] | $ 695,079 | [3],[4] |
Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investments, at fair value | 876,843 | 588,837 | ||
Discounted Cash Flow | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Senior Debt | 276,158 | 176,942 | ||
Equity | $ 600,685 | $ 411,895 | ||
Minimum | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 0.105 | 0.098 | ||
Measurement input, equity securities | 0.105 | 0.098 | ||
Minimum | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 6.9 | 6.5 | ||
Measurement input, equity securities | 6.9 | 6.5 | ||
Minimum | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 6.3 | 6.5 | ||
Measurement input, equity securities | 6.3 | 6.5 | ||
Maximum | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 0.145 | 0.138 | ||
Measurement input, equity securities | 0.145 | 0.138 | ||
Maximum | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 15.1 | 13.2 | ||
Measurement input, equity securities | 15.1 | 13.2 | ||
Maximum | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 16 | 13 | ||
Measurement input, equity securities | 16 | 13 | ||
Weighted Average | Discounted Cash Flow | Discount Rate | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 0.125 | 0.116 | ||
Measurement input, equity securities | 0.125 | 0.116 | ||
Weighted Average | Market Comparables | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 10.8 | 9.8 | ||
Measurement input, equity securities | 10.8 | 9.8 | ||
Weighted Average | Transaction Method | EBITDA Multiple | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input, debt securities | 11.9 | 10.8 | ||
Measurement input, equity securities | 11.9 | 10.8 | ||
[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) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Portfolio company investments | |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | $ 588,837 | $ 455,997 |
Additions | 243,366 | 89,384 |
Principal repayments | (125) | |
Return of capital | (165) | (237) |
Net change in unrealized appreciation | 44,930 | 43,693 |
Fair value balance, ending | 876,843 | 588,837 |
Change in net unrealized appreciation on investments held | 44,930 | 43,693 |
Level 3 | Total Senior Secured Notes | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | 176,942 | 152,542 |
Additions | 99,341 | 24,400 |
Principal repayments | (125) | |
Return of capital | 0 | 0 |
Net change in unrealized appreciation | 0 | 0 |
Fair value balance, ending | 276,158 | 176,942 |
Change in net unrealized appreciation on investments held | 0 | 0 |
Level 3 | Equity | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value balance, beginning | 411,895 | 303,455 |
Additions | 144,025 | 64,984 |
Principal repayments | 0 | |
Return of capital | (165) | (237) |
Net change in unrealized appreciation | 44,930 | 43,693 |
Fair value balance, ending | 600,685 | 411,895 |
Change in net unrealized appreciation on investments held | $ 44,930 | $ 43,693 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 44 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Expiration period | 3 years | ||
Reimbursement of expense support | $ 644 | $ 2,449 | |
Distributions paid | $ 17,304 | $ 15,184 | |
Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Shares outstanding end of period (in shares) | 400 | 400 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Distributions paid | $ 500 | $ 500 | |
Related Party | Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Annual preference return relates to non-founder shares | 8.75% | ||
Annual preference return relates to founder shares | 7.777% | ||
Reimbursement of expense support | $ 600 | 2,400 | |
Offering reimbursement | Related Party | Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Related party fees and expenses | $ 3,383 | 2,814 | |
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% | ||
Expense support received | $ 5,063 | $ 5,100 | |
Manager Sub Manager | Related Party | |||
Related Party Transaction [Line Items] | |||
Percentage of return incentive fees payable | 50% | ||
Base management fees | Related Party | Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Related party fees and expenses | $ 13,208 | 8,941 | |
Return incentive fees | Related Party | Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Related party fees and expenses | $ 13,506 | $ 11,456 | |
Minimum | Related Party | Manager and Sub-Manager | |||
Related Party Transaction [Line Items] | |||
Annual preference return | 7% | ||
Proceeds from Follow-On Public Offering | Related Party | 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) | 5,152 | 2,195 | |
Class A | Managing Dealer | |||
Related Party Transaction [Line Items] | |||
Selling commission on share sold percentage | 6% | ||
Class A | Proceeds from Follow-On Public Offering | |||
Related Party Transaction [Line Items] | |||
Dealer manager fee | 2.50% | ||
Class T | |||
Related Party Transaction [Line Items] | |||
Shares outstanding end of period (in shares) | 2,629 | 2,343 | |
Class T | Managing Dealer | |||
Related Party Transaction [Line Items] | |||
Selling commission on share sold percentage | 3% | ||
Class T | Proceeds from Follow-On Public Offering | |||
Related Party Transaction [Line Items] | |||
Dealer manager fee | 1.75% | ||
Annual distribution and fee, percentage | 1% | ||
Class D | |||
Related Party Transaction [Line Items] | |||
Shares outstanding end of period (in shares) | 2,632 | 1,957 | |
Class D | Proceeds from Follow-On Public Offering | |||
Related Party Transaction [Line Items] | |||
Annual distribution and fee, percentage | 0.50% | ||
Annual Preference Return Less than or Equal to 8.75% or the Non-founder breakpoint | Manager Sub Manager | |||
Related Party Transaction [Line Items] | |||
Percentage of return incentive fees payable | 20% | ||
Annual Preference Return Less Than 7.777% or Founder breakpoint | Manager Sub Manager | |||
Related Party Transaction [Line Items] | |||
Percentage of return incentive fees payable | 10% |
Related Party Transactions - Hi
Related Party Transactions - High Water Marks (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Class FA | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | $ 34.90 | $ 32.62 |
Class A | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | 32.45 | 30.78 |
Class T | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | 32.46 | 30.66 |
Class D | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | 32.11 | 30.35 |
Class I | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | 32.88 | 31.18 |
Class S | ||
Related Party Transaction [Line Items] | ||
High water mark (in dollars per share) | $ 35.39 | $ 32.84 |
Related Party Transactions - Ex
Related Party Transactions - Expense Support (Details) - USD ($) | 12 Months Ended | 44 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | |
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Expense support reimbursed | $ (4,924,000) | |||||
Unreimbursed expense support subject reimbursement | 69,000 | $ 33,000 | $ 37,000 | |||
Net Investment Income | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Amount of Expense Support Received | (644,000) | $ (2,449,000) | ||||
Investment company, expense support accrued | 644,000 | $ (2,449,000) | ||||
2018 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Expense support reimbursed | (353,000) | |||||
Unreimbursed expense support subject reimbursement | 0 | |||||
2019 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Expense support reimbursed | (1,339,000) | |||||
Unreimbursed expense support subject reimbursement | 0 | |||||
2020 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Expense support reimbursed | $ (3,232,000) | |||||
Unreimbursed expense support subject reimbursement | 69,000 | |||||
Manager Sub Manager | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Amount of Expense Support Received | $ 5,063,000 | $ 5,100,000 | ||||
Manager Sub Manager | 2018 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Amount of Expense Support Received | $ 390,000 | |||||
Manager Sub Manager | 2019 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Amount of Expense Support Received | $ 1,372,000 | |||||
Manager Sub Manager | 2020 | ||||||
Schedule of Expense Support (Reimbursement) [Line Items] | ||||||
Amount of Expense Support Received | $ 3,301,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - Related Party - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commissions | Managing Dealer | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | $ 2,712 | $ 1,799 |
Dealer manager fees | Managing Dealer | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 782 | 933 |
Distribution and shareholder servicing fees | Managing Dealer | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 1,184 | 789 |
Offering reimbursement | Manager and Sub-Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 3,383 | 2,814 |
Base management fees | Manager and Sub-Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 13,208 | 8,941 |
Return incentive fees | Manager and Sub-Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 13,506 | 11,456 |
Reimbursement of expense support | Manager and Sub-Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 644 | 2,449 |
Reimbursement of third party operating expenses | Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | 91 | 84 |
Reimbursement of third party pursuit costs | Sub-Manager | ||
Related Party Transaction [Line Items] | ||
Related party fees and expenses | $ 1,875 | $ 764 |
Related Party Transactions - Am
Related Party Transactions - Amounts Due from (to) Related Parties (Detail) - Related Party - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Total due to related parties | $ 15,787,000 | $ 15,609,000 |
Total return incentive fees | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 13,506,000 | 11,456,000 |
Reimbursement of expense support | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 644,000 | 2,449,000 |
Base management fees | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 1,338,000 | 864,000 |
Offering expenses | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 92,000 | 331,000 |
Distribution and shareholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 106,000 | 84,000 |
Reimbursement of third-party operating expenses and pursuit costs | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | $ 101,000 | $ 425,000 |
Distributions - Declared (Detai
Distributions - Declared (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Distributions Made to Members or Limited Partners [Abstract] | ||
Distributions Declared | $ 30,063 | $ 21,911 |
Distributions Reinvested | 12,759 | 7,794 |
Cash Distributions Net of Distributions Reinvested | $ 17,304 | $ 14,117 |
Distributions - Distribution Pe
Distributions - Distribution Per Class (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Amount | $ 30,063 | $ 21,911 |
% of Distributions Declared | 100% | 100% |
Net Investment Income | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Amount | $ 22,466 | $ 16,716 |
% of Distributions Declared | 74.70% | 76.30% |
Expense support received | $ (644) | $ (2,449) |
Distributions in excess of net investment income | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Amount | $ 7,597 | $ 5,195 |
% of Distributions Declared | 25.30% | 23.70% |
Distributions - Additional Info
Distributions - Additional Information (Detail) - $ / shares | 12 Months Ended | |||||
Apr. 26, 2024 | Mar. 26, 2024 | Feb. 26, 2024 | Jan. 26, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class FA | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | ||||
Class FA | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | $ 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 A | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | 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 T | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | 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 D | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | 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 I | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | 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 | ||||
Class S | Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | $ 0.104167 | $ 0.104167 |
Capital Transactions -Additiona
Capital Transactions -Additional Information (Detail) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Mar. 07, 2018 USD ($) | Dec. 31, 2023 USD ($) class portfolioCompany $ / shares shares | Dec. 31, 2022 USD ($) shares | |
Investment Company, Capital Share Transactions [Line Items] | |||
Number classes of shares | portfolioCompany | 4 | ||
Authorized amount per quarter (in percent) | 2.50% | ||
Authorized amount per year (in percent) | 10% | ||
Repurchase of common shares pursuant to share repurchase program | $ 23,806,000 | $ 20,547,000 | |
Payable for shares repurchased | 8,224,000 | 2,368,000 | |
Class A | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Repurchase of common shares pursuant to share repurchase program | $ 4,187,000 | $ 738,000 | |
Conversion of stock (in shares) | shares | 367 | 59 | |
Conversion of stock | 100% | 100% | |
Class T | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Repurchase of common shares pursuant to share repurchase program | $ 2,270,000 | $ 338,000 | |
Conversion of stock (in shares) | shares | 367 | 59 | |
Class D | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Repurchase of common shares pursuant to share repurchase program | $ 1,318,000 | $ 952,000 | |
Class I | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Repurchase of common shares pursuant to share repurchase program | $ 13,098,000 | $ 7,998,000 | |
Public Offering | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Shares offered | $ 1,000,000,000 | ||
Number classes of shares | class | 4 | ||
Sale of stock offering, minimum requirement | $ 5,000 | ||
Public Offering | Class A | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Share price ( in dollars per share) | $ / shares | $ 36.31 | ||
Public Offering | Class T | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Share price ( in dollars per share) | $ / shares | 35.14 | ||
Public Offering | Class D | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Share price ( in dollars per share) | $ / shares | 32.99 | ||
Public Offering | Class I | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Share price ( in dollars per share) | $ / shares | $ 33.70 | ||
Distribution Reinvestment Plan | |||
Investment Company, Capital Share Transactions [Line Items] | |||
Shares offered | $ 100,000,000 |
Capital Transactions - Summary
Capital Transactions - Summary of Shares Issued and Proceeds Received in Connection with Private Placement (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Company, Capital Share Transactions [Line Items] | ||
Proceeds to Company | $ 12,759,000 | $ 8,293,000 |
Shares (in shares) | 7,868,000 | 6,093,000 |
Net Proceeds to Company | $ 259,960,000 | $ 193,183,000 |
Average Net Proceeds per Share (in dollars per share) | $ 33.05 | $ 31.70 |
Proceeds from Follow-On Public Offering | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares Issued (in shares) | 7,483,000 | 5,833,000 |
Gross Proceeds | $ 250,695,000 | $ 187,622,000 |
Sales Load | (3,494,000) | (2,732,000) |
Net Proceeds to Company | $ 247,201,000 | $ 184,890,000 |
Distribution Reinvestment Plan | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 385,000 | 260,000 |
Proceeds to Company | $ 12,759,000 | $ 8,293,000 |
Class A | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares (in shares) | 2,717,000 | 699,000 |
Net Proceeds to Company | $ 89,348,000 | $ 21,997,000 |
Average Net Proceeds per Share (in dollars per share) | $ 32.89 | $ 31.46 |
Class A | Proceeds from Follow-On Public Offering | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares Issued (in shares) | 2,628,000 | 641,000 |
Gross Proceeds | $ 88,844,000 | $ 21,727,000 |
Sales Load | (2,433,000) | (1,572,000) |
Net Proceeds to Company | $ 86,411,000 | $ 20,155,000 |
Class A | Distribution Reinvestment Plan | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 89,000 | 58,000 |
Proceeds to Company | $ 2,937,000 | $ 1,842,000 |
Class T | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares (in shares) | 722,000 | 804,000 |
Net Proceeds to Company | $ 23,669,000 | $ 25,315,000 |
Average Net Proceeds per Share (in dollars per share) | $ 32.82 | $ 31.49 |
Class T | Proceeds from Follow-On Public Offering | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares Issued (in shares) | 669,000 | 763,000 |
Gross Proceeds | $ 22,975,000 | $ 25,194,000 |
Sales Load | (1,061,000) | (1,160,000) |
Net Proceeds to Company | $ 21,914,000 | $ 24,034,000 |
Class T | Distribution Reinvestment Plan | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 53,000 | 41,000 |
Proceeds to Company | $ 1,755,000 | $ 1,281,000 |
Class D | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares (in shares) | 715,000 | 978,000 |
Net Proceeds to Company | $ 23,268,000 | $ 30,540,000 |
Average Net Proceeds per Share (in dollars per share) | $ 32.55 | $ 31.19 |
Class D | Proceeds from Follow-On Public Offering | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares Issued (in shares) | 669,000 | 949,000 |
Gross Proceeds | $ 21,758,000 | $ 29,600,000 |
Sales Load | 0 | 0 |
Net Proceeds to Company | $ 21,758,000 | $ 29,600,000 |
Class D | Distribution Reinvestment Plan | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 46,000 | 29,000 |
Proceeds to Company | $ 1,510,000 | $ 940,000 |
Class I | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares (in shares) | 3,714,000 | 3,612,000 |
Net Proceeds to Company | $ 123,675,000 | $ 115,331,000 |
Average Net Proceeds per Share (in dollars per share) | $ 33.29 | $ 31.92 |
Class I | Proceeds from Follow-On Public Offering | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Shares Issued (in shares) | 3,517,000 | 3,480,000 |
Gross Proceeds | $ 117,118,000 | $ 111,101,000 |
Sales Load | 0 | 0 |
Net Proceeds to Company | $ 117,118,000 | $ 111,101,000 |
Class I | Distribution Reinvestment Plan | ||
Investment Company, Capital Share Transactions [Line Items] | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 197,000 | 132,000 |
Proceeds to Company | $ 6,557,000 | $ 4,230,000 |
Capital Transactions Capital Tr
Capital Transactions Capital Transactions - Summary of Shares Repurchased (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 709,000 | 631,000 |
Total Consideration | $ 23,806,000 | $ 20,547,000 |
Average Price Paid per Share (in dollars per share) | $ 33.58 | $ 32.57 |
Class FA | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 65,000 | 315,000 |
Total Consideration | $ 2,309,000 | $ 10,493,000 |
Average Price Paid per Share (in dollars per share) | $ 35.75 | $ 33.31 |
Class A | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 127,000 | 24,000 |
Total Consideration | $ 4,187,000 | $ 738,000 |
Average Price Paid per Share (in dollars per share) | $ 33.03 | $ 31.36 |
Class T | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 69,000 | 11,000 |
Total Consideration | $ 2,270,000 | $ 338,000 |
Average Price Paid per Share (in dollars per share) | $ 33.13 | $ 31.28 |
Class D | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 40,000 | 30,000 |
Total Consideration | $ 1,318,000 | $ 952,000 |
Average Price Paid per Share (in dollars per share) | $ 32.73 | $ 31.35 |
Class I | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 391,000 | 250,000 |
Total Consideration | $ 13,098,000 | $ 7,998,000 |
Average Price Paid per Share (in dollars per share) | $ 33.44 | $ 31.95 |
Class S | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of Shares (in shares) | 17,000 | 1,000 |
Total Consideration | $ 624,000 | $ 28,000 |
Average Price Paid per Share (in dollars per share) | $ 36.45 | $ 33.74 |
Borrowings (Details)
Borrowings (Details) - Revolving Credit Facility - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Sep. 30, 2021 | |
United Community Bank | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit amount | $ 25,000 | |||
First Horizon Bank | Line of Credit | 2022 Loan Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit amount | $ 50,000 | |||
Commitment fee | $ 250 | |||
Fee required on each borrowing | 0.05% | |||
Unused line fee | $ 25,000 | |||
Valley National Bank | Line of Credit | 2024 Loan Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit amount | $ 50,000 | |||
Commitment fee | $ 160 | |||
Commitment fee percentage | 0.15% | |||
Maximum | First Horizon Bank | Line of Credit | 2022 Loan Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 180 days | |||
Secured Overnight Financing Rate (SOFR) | Valley National Bank | Line of Credit | 2024 Loan Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | First Horizon Bank | Line of Credit | 2022 Loan Agreement | ||||
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current: | ||
Federal | $ 0 | $ 63 |
State | 0 | 18 |
Total current tax expense | 0 | 81 |
Deferred: | ||
Federal | 3,010 | 2,174 |
State | 205 | 196 |
Total deferred tax expense | 3,215 | 2,370 |
Income tax expense | $ 3,215 | $ 2,451 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Carryforwards for net operating loss | $ 1,249 | $ 770 |
Unrealized depreciation on investments | 913 | 0 |
Other | 0 | 27 |
Valuation allowance | (1,324) | (60) |
Total deferred tax assets | 838 | 737 |
Deferred tax liabilities: | ||
Unrealized appreciation on investments | (8,300) | (4,984) |
Total deferred tax liabilities | (8,300) | (4,984) |
Deferred tax liabilities, net | $ (7,462) | $ (4,247) |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax expense computed at the federal statutory rate | $ 14,148 | $ 12,708 |
Tax expense computed at federal statutory rate (in percent) | 21% | 21% |
State income tax expense net of federal benefit | $ 205 | $ 214 |
State income tax expense net of federal benefit (in percent) | 0.30% | 0.40% |
Benefit of partnership structure | $ (11,138) | $ (10,471) |
Benefit of partnership structure (in percent) | (16.50%) | (17.30%) |
Income tax expense | $ 3,215 | $ 2,451 |
Income tax expense (in percent) | 4.80% | 4.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 4.6 | $ 2.8 |
Concentrations of Risk (Details
Concentrations of Risk (Details) | Dec. 31, 2023 portfolioCompany |
Risks and Uncertainties [Abstract] | |
Number of portfolio companies which met at least one of the significant tests under rule 10-01(b) of regulation S-X | 9 |
Financial Highlights - Schedule
Financial Highlights - Schedule of Financial Highlights (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net assets at end of period | $ 979,349 | [1],[2] | $ 709,099 | [3],[4] | $ 500,309 |
Distributions declared | $ 30,063 | $ 21,911 | |||
Class FA | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 34.90 | $ 32.62 | |||
Net investment income, before expense support ( in dollars per share) | 1.55 | 1.65 | |||
Expense Support (reimbursement) ( in dollars per share) | (0.14) | (0.32) | |||
Net investment income ( in dollars per share) | 1.41 | 1.33 | |||
Net realized and unrealized gains ( in dollars per share) | 1.61 | 2.20 | |||
Net increase resulting from investment operations ( in dollars per share) | 3.02 | 3.53 | |||
Distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 36.67 | $ 34.90 | |||
Net assets at end of period | $ 153,256 | $ 148,111 | |||
Average net assets | $ 150,234 | $ 146,773 | |||
Shares outstanding end of period (in shares) | 4,179 | 4,244 | |||
Distributions declared | $ 5,281 | $ 5,475 | |||
Total investment return based on net asset value before total return incentive fee | 9.60% | 12.21% | |||
Total investment return based on net asset value after total return incentive fee | 8.53% | 10.79% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 1.24% | 1.34% | |||
Total operating expenses before Expense Support (reimbursement) | 2.18% | 2.51% | |||
Total operating expenses after Expense Support (reimbursement) | 2.58% | 3.46% | |||
Net investment income before total return incentive fee | 4.89% | 5.15% | |||
Net investment income | 3.95% | 3.97% | |||
Class A | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 32.45 | $ 30.78 | |||
Net investment income, before expense support ( in dollars per share) | 0.70 | 0.86 | |||
Expense Support (reimbursement) ( in dollars per share) | 0 | (0.15) | |||
Net investment income ( in dollars per share) | 0.70 | 0.71 | |||
Net realized and unrealized gains ( in dollars per share) | 1.67 | 2.21 | |||
Net increase resulting from investment operations ( in dollars per share) | 2.37 | 2.92 | |||
Distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 33.57 | $ 32.45 | |||
Net assets at end of period | $ 172,969 | $ 71,242 | |||
Average net assets | $ 112,834 | $ 56,292 | |||
Shares outstanding end of period (in shares) | 5,152 | 2,195 | |||
Distributions declared | $ 4,260 | $ 2,230 | |||
Total investment return based on net asset value before total return incentive fee | 8.80% | 11.76% | |||
Total investment return based on net asset value after total return incentive fee | 7.45% | 9.69% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 3.61% | 3.17% | |||
Total operating expenses before Expense Support (reimbursement) | 5.54% | 5.57% | |||
Total operating expenses after Expense Support (reimbursement) | 5.54% | 6.07% | |||
Net investment income before total return incentive fee | 4.06% | 4.64% | |||
Net investment income | 2.13% | 2.24% | |||
Class T | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 32.46 | $ 30.66 | |||
Net investment income, before expense support ( in dollars per share) | 0.56 | 0.57 | |||
Expense Support (reimbursement) ( in dollars per share) | 0 | 0 | |||
Net investment income ( in dollars per share) | 0.56 | 0.57 | |||
Net realized and unrealized gains ( in dollars per share) | 1.62 | 2.23 | |||
Net increase resulting from investment operations ( in dollars per share) | 2.18 | 2.80 | |||
Distributions to shareholders ( in dollars per share) | (1) | (1) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1) | (1) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 33.64 | $ 32.46 | |||
Net assets at end of period | $ 88,416 | $ 76,048 | |||
Average net assets | $ 85,790 | $ 59,959 | |||
Shares outstanding end of period (in shares) | 2,629 | 2,343 | |||
Distributions declared | $ 2,604 | $ 1,901 | |||
Total investment return based on net asset value before total return incentive fee | 8.54% | 11.26% | |||
Total investment return based on net asset value after total return incentive fee | 6.83% | 9.29% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 3.79% | 4.19% | |||
Total operating expenses before Expense Support (reimbursement) | 5.45% | 6.49% | |||
Total operating expenses after Expense Support (reimbursement) | 5.45% | 6.49% | |||
Net investment income before total return incentive fee | 3.36% | 4.12% | |||
Net investment income | 1.70% | 1.83% | |||
Class D | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 32.11 | $ 30.35 | |||
Net investment income, before expense support ( in dollars per share) | 0.70 | 0.66 | |||
Expense Support (reimbursement) ( in dollars per share) | 0 | 0 | |||
Net investment income ( in dollars per share) | 0.70 | 0.66 | |||
Net realized and unrealized gains ( in dollars per share) | 1.63 | 2.23 | |||
Net increase resulting from investment operations ( in dollars per share) | 2.33 | 2.89 | |||
Distributions to shareholders ( in dollars per share) | (1.13) | (1.13) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1.13) | (1.13) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 33.31 | $ 32.11 | |||
Net assets at end of period | $ 87,674 | $ 62,844 | |||
Average net assets | $ 74,361 | $ 42,716 | |||
Shares outstanding end of period (in shares) | 2,632 | 1,957 | |||
Distributions declared | $ 2,562 | $ 1,536 | |||
Total investment return based on net asset value before total return incentive fee | 9.04% | 11.51% | |||
Total investment return based on net asset value after total return incentive fee | 7.38% | 9.69% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 3.38% | 4.13% | |||
Total operating expenses before Expense Support (reimbursement) | 5.21% | 6.58% | |||
Total operating expenses after Expense Support (reimbursement) | 5.21% | 6.58% | |||
Net investment income before total return incentive fee | 3.98% | 4.56% | |||
Net investment income | 2.15% | 2.11% | |||
Class I | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 32.88 | $ 31.18 | |||
Net investment income, before expense support ( in dollars per share) | 0.80 | 0.82 | |||
Expense Support (reimbursement) ( in dollars per share) | 0 | (0.12) | |||
Net investment income ( in dollars per share) | 0.80 | 0.70 | |||
Net realized and unrealized gains ( in dollars per share) | 1.63 | 2.25 | |||
Net increase resulting from investment operations ( in dollars per share) | 2.43 | 2.95 | |||
Distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 34.06 | $ 32.88 | |||
Net assets at end of period | $ 411,918 | $ 288,387 | |||
Average net assets | $ 351,798 | $ 219,256 | |||
Shares outstanding end of period (in shares) | 12,095 | 8,772 | |||
Distributions declared | $ 13,156 | $ 8,562 | |||
Total investment return based on net asset value before total return incentive fee | 9.24% | 11.63% | |||
Total investment return based on net asset value after total return incentive fee | 7.54% | 9.66% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 2.94% | 3.34% | |||
Total operating expenses before Expense Support (reimbursement) | 4.80% | 5.72% | |||
Total operating expenses after Expense Support (reimbursement) | 4.81% | 6.07% | |||
Net investment income before total return incentive fee | 4.25% | 4.58% | |||
Net investment income | 2.40% | 2.20% | |||
Class S | |||||
Investment Company, Financial Highlights [Roll Forward] | |||||
Net Asset Value, Beginning of Period ( in dollars per share) | $ 35.39 | $ 32.84 | |||
Net investment income, before expense support ( in dollars per share) | 1.50 | 1.59 | |||
Expense Support (reimbursement) ( in dollars per share) | 0 | 0 | |||
Net investment income ( in dollars per share) | 1.50 | 1.59 | |||
Net realized and unrealized gains ( in dollars per share) | 1.61 | 2.21 | |||
Net increase resulting from investment operations ( in dollars per share) | 3.11 | 3.80 | |||
Distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net decrease resulting from distributions to shareholders ( in dollars per share) | (1.25) | (1.25) | |||
Net Asset Value, End of Period ( in dollars per share) | $ 37.25 | $ 35.39 | |||
Net assets at end of period | $ 65,116 | $ 62,467 | |||
Average net assets | $ 63,606 | $ 59,895 | |||
Shares outstanding end of period (in shares) | 1,748 | 1,765 | |||
Distributions declared | $ 2,200 | $ 2,207 | |||
Total investment return based on net asset value before total return incentive fee | 9.97% | 13.13% | |||
Total investment return based on net asset value after total return incentive fee | 8.96% | 11.80% | |||
Ratios to average net assets: | |||||
Total operating expenses before total return incentive fee | 1.34% | 1.51% | |||
Total operating expenses before Expense Support (reimbursement) | 2.30% | 2.75% | |||
Total operating expenses after Expense Support (reimbursement) | 2.30% | 2.75% | |||
Net investment income before total return incentive fee | 5.10% | 5.92% | |||
Net investment income | 4.15% | 4.67% | |||
[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 Thousands | 12 Months Ended | ||||||||
Apr. 26, 2024 | Mar. 26, 2024 | Feb. 26, 2024 | Jan. 26, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 29, 2024 | |||
Subsequent Event [Line Items] | |||||||||
Investment at amortized cost | $ 719,976 | [1],[2] | $ 583,117 | [3],[4] | |||||
Subsequent Event | USAW | |||||||||
Subsequent Event [Line Items] | |||||||||
Investment at amortized cost | $ 10,000 | ||||||||
Subsequent Event | USAW | Equity Securities | |||||||||
Subsequent Event [Line Items] | |||||||||
Investment at amortized cost | 8,600 | ||||||||
Subsequent Event | USAW | Senior Subordinated Notes | |||||||||
Subsequent Event [Line Items] | |||||||||
Investment at amortized cost | $ 1,400 | ||||||||
2024 Loan Agreement | Valley National Bank | Revolving Credit Facility | Line of Credit | |||||||||
Subsequent Event [Line Items] | |||||||||
Line of credit amount | $ 50,000 | ||||||||
Class FA | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | |||||||
Class FA | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | $ 0.104167 | $ 0.104167 | |||||
Class A | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||||||
Class A | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | 0.104167 | 0.104167 | |||||
Class T | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | |||||||
Class T | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.083333 | 0.083333 | 0.083333 | 0.083333 | |||||
Class D | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | |||||||
Class D | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.093750 | 0.093750 | 0.093750 | 0.093750 | |||||
Class I | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | |||||||
Class I | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | 0.104167 | 0.104167 | 0.104167 | 0.104167 | |||||
Class S | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | |||||||
Class S | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared distribution (in dollars per share) | $ 0.104167 | $ 0.104167 | $ 0.104167 | $ 0.104167 | |||||
[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 - Summary of
Subsequent Events - Summary of New Public Offering Prices and Applicable Upfront Selling Commissions and Dealer Manager Fees (Detail) - $ / shares | Mar. 28, 2024 | Feb. 24, 2024 | Jan. 28, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | $ 33.05 | $ 31.70 | |||
Class A | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 32.89 | 31.46 | |||
Class A | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | $ 36.78 | $ 36.66 | $ 36.69 | ||
Selling Commissions, Per Share (in dollars per share) | 2.21 | 2.20 | 2.20 | ||
Dealer Manager Fees, Per Share (in dollars per share) | 0.92 | 0.92 | 0.92 | ||
Class T | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 32.82 | 31.49 | |||
Class T | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 35.38 | 35.28 | 35.32 | ||
Selling Commissions, Per Share (in dollars per share) | 1.06 | 1.06 | 1.06 | ||
Dealer Manager Fees, Per Share (in dollars per share) | 0.62 | 0.62 | 0.62 | ||
Class D | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 32.55 | 31.19 | |||
Class D | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 33.38 | 33.28 | 33.31 | ||
Selling Commissions, Per Share (in dollars per share) | 0 | 0 | 0 | ||
Dealer Manager Fees, Per Share (in dollars per share) | 0 | 0 | 0 | ||
Class I | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | $ 33.29 | $ 31.92 | |||
Class I | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Public Offering Price, Per Share (in dollars per share) | 34.13 | 34.02 | 34.06 | ||
Selling Commissions, Per Share (in dollars per share) | 0 | 0 | 0 | ||
Dealer Manager Fees, Per Share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Subsequent Events - Gross Proce
Subsequent Events - Gross Proceeds (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 21, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 22, 2024 | |
Subsequent Event [Line Items] | ||||
Shares (in shares) | 7,868,000 | 6,093,000 | ||
Net Proceeds to Company | $ 259,960,000 | $ 193,183,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 1,109,000 | |||
Net Proceeds to Company | $ 37,473,000 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 33.79 | |||
Proceeds from Follow-On Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 7,483,000 | 5,833,000 | ||
Gross Proceeds | $ 250,695,000 | $ 187,622,000 | ||
Sales Load | (3,494,000) | (2,732,000) | ||
Net Proceeds to Company | $ 247,201,000 | $ 184,890,000 | ||
Proceeds from Follow-On Public Offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 1,030,000 | |||
Gross Proceeds | $ 35,241,000 | |||
Sales Load | (441,000) | |||
Net Proceeds to Company | $ 34,800,000 | |||
Distribution Reinvestment Plan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 79,000 | |||
Gross Proceeds | $ 2,673,000 | |||
Class A | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 2,717,000 | 699,000 | ||
Net Proceeds to Company | $ 89,348,000 | $ 21,997,000 | ||
Class A | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 408,000 | |||
Net Proceeds to Company | $ 13,708,000 | |||
Average Net Proceeds Per Share (in dollars per share) | 33.60 | |||
Class A | Proceeds from Follow-On Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 2,628,000 | 641,000 | ||
Gross Proceeds | $ 88,844,000 | $ 21,727,000 | ||
Sales Load | (2,433,000) | (1,572,000) | ||
Net Proceeds to Company | $ 86,411,000 | $ 20,155,000 | ||
Class A | Proceeds from Follow-On Public Offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 386,000 | |||
Gross Proceeds | $ 13,279,000 | |||
Sales Load | (308,000) | |||
Net Proceeds to Company | $ 12,971,000 | |||
Class A | Distribution Reinvestment Plan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 22,000 | |||
Gross Proceeds | $ 737,000 | |||
Class T | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 722,000 | 804,000 | ||
Net Proceeds to Company | $ 23,669,000 | $ 25,315,000 | ||
Class T | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 89,000 | |||
Net Proceeds to Company | $ 2,980,000 | |||
Average Net Proceeds Per Share (in dollars per share) | 33.48 | |||
Class T | Proceeds from Follow-On Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 669,000 | 763,000 | ||
Gross Proceeds | $ 22,975,000 | $ 25,194,000 | ||
Sales Load | (1,061,000) | (1,160,000) | ||
Net Proceeds to Company | $ 21,914,000 | $ 24,034,000 | ||
Class T | Proceeds from Follow-On Public Offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 80,000 | |||
Gross Proceeds | $ 2,810,000 | |||
Sales Load | (133,000) | |||
Net Proceeds to Company | $ 2,677,000 | |||
Class T | Distribution Reinvestment Plan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 9,000 | |||
Gross Proceeds | $ 303,000 | |||
Class D | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 715,000 | 978,000 | ||
Net Proceeds to Company | $ 23,268,000 | $ 30,540,000 | ||
Class D | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 78,000 | |||
Net Proceeds to Company | $ 2,613,000 | |||
Average Net Proceeds Per Share (in dollars per share) | 33.50 | |||
Class D | Proceeds from Follow-On Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 669,000 | 949,000 | ||
Gross Proceeds | $ 21,758,000 | $ 29,600,000 | ||
Sales Load | 0 | 0 | ||
Net Proceeds to Company | $ 21,758,000 | $ 29,600,000 | ||
Class D | Proceeds from Follow-On Public Offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 69,000 | |||
Gross Proceeds | $ 2,316,000 | |||
Sales Load | 0 | |||
Net Proceeds to Company | $ 2,316,000 | |||
Class D | Distribution Reinvestment Plan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 9,000 | |||
Gross Proceeds | $ 297,000 | |||
Class I | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 3,714,000 | 3,612,000 | ||
Net Proceeds to Company | $ 123,675,000 | $ 115,331,000 | ||
Class I | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 534,000 | |||
Net Proceeds to Company | $ 18,172,000 | |||
Average Net Proceeds Per Share (in dollars per share) | $ 34.03 | |||
Class I | Proceeds from Follow-On Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 3,517,000 | 3,480,000 | ||
Gross Proceeds | $ 117,118,000 | $ 111,101,000 | ||
Sales Load | 0 | 0 | ||
Net Proceeds to Company | $ 117,118,000 | $ 111,101,000 | ||
Class I | Proceeds from Follow-On Public Offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 495,000 | |||
Gross Proceeds | $ 16,836,000 | |||
Sales Load | 0 | |||
Net Proceeds to Company | $ 16,836,000 | |||
Class I | Distribution Reinvestment Plan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares (in shares) | 39,000 | |||
Gross Proceeds | $ 1,336,000 |