Net Increase (Decrease) in Net Assets Resulting from Operations
Net increase in net assets resulting from operations during the three months ended September 30, 2021, was approximately $27.2 million. Net increase in net assets resulting from operations before formation costs during the three months ended September 30, 2020, was approximately $12.3 million. Net increase in net assets resulting from operations during the nine months ended September 30, 2021, was approximately $77.2 million. Net decrease in net assets resulting from operations before formation costs during the nine months ended September 30, 2020, was approximately $15.8 million.
Net Increase (Decrease) in Net Assets Resulting from Operations and Earnings Per Share
For the three months ended September 30, 2021 and 2020, basic net increase in net assets per common share were $1.02 and $0.68, respectively. The increase in 2021 is result of overall increased net operating results. For the nine months ended September 30, 2021, basic net increase in net assets per common share were $3.02 . For the nine months ended September 30, 2020, basic net decrease in net assets per common share were $0.88. Costs related to the acquisition of Trinity Capital Holdings was approximately $13.5 million, and the cost related to the acquisition of the Legacy Funds was approximately $2.1 million. The total cost of $15.6 million, when added to the net decrease in net assets resulting from operations before formation costs, resulted in a net decrease in net assets resulting from operations during the nine months ended September 30, 2020, of approximately $(15.8) million.
Financial Condition, Liquidity and Capital Resources
Our liquidity and capital resources are generated primarily from the net proceeds of offerings of our securities, including our initial public offering, the Private Offerings, the Convertible Notes offering and the 2026 Notes offering, borrowings under the Credit Facility and cash flows from our operations, including investment sales and repayments, as well as income earned on investments and cash equivalents. Our primary use of our funds includes investments in portfolio companies, payments of interest on our outstanding debt, and payments of fees and other operating expenses we incur. We also expect to use our funds to pay distributions to our stockholders. We have used, and expect to continue to use, our borrowings, including under the Credit Facility or any future credit facility, and proceeds from the turnover of our portfolio to finance our investment objectives and activities.
We may, from time to time, enter into additional credit facilities, increase the size of our existing Credit Facility, or issue additional securities in private or public offerings. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions, and other factors.
For the nine months ended September 30, 2021, we experienced a net decrease in cash and cash equivalents in the amount of $20.8 million, which is the net result of $104.3 million of cash used in operating activities and $1.2 million of cash used in investing activities partially offset by $84.7 million of cash provided by financing activities. During the nine months ended September 30, 2020, we experienced a net increase in cash and cash equivalents in the amount of $52.7 million, which is the net result of $148.2 million of cash provided by financing activities partially offset by $91.8 million of cash used in investing activities and $3.9 million of cash from operating activities.
As of September 30, 2021 and December 31, 2020, we had cash, cash equivalents and restricted cash of $40.3 million and $61.1 million, respectively, of which $39.7 and $60.3 million, respectively, is held in the Goldman Sachs Financial Square Government Institutional Fund. Cash held in demand deposit accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and therefore is subject to credit risk. All of the Company’s cash deposits are held at large established high credit quality financial institutions, and management believes that the risk of loss associated with any uninsured balances is remote. As of September 30, 2021 and December 31, 2020, restricted cash consisted of approximately $15.0 million and $15.7 million, respectively, related to the Credit Facility covenants (See “Note 5 – Borrowings”), and an additional amount of approximately $0.7 million at December 31, 2020 was held in escrow related to the payout of a severance related liability assumed as part of the Formation Transactions with respect to a former member of certain general partners of certain Legacy Funds. As of September 30, 2021 and December 31, 2020, we had approximately $181.5 million and $42.0 million, respectively, of available borrowings under the Credit Facility, subject to its terms and regulatory requirements. Cash, cash equivalents and restricted cash,
