Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | SLR HC BDC LLC | ||
Entity Central Index Key | 0001832148 | ||
Entity File Number | 000-56247 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Tax Identification Number | 85-1801692 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 500 Park Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 993-1670 | ||
Entity Common Stock, Shares Outstanding | 1,069,642 | ||
Auditor Name | KPMG LLP | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 185 | ||
Auditor Location | New York, NY | ||
Entity Public Float | $ 0 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Statements of Asse
Consolidated Statements of Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments at fair value: | |||
Cash | $ 1,871 | $ 3,986 | |
Cash equivalents (cost: $9,919 and $29,828, respectively) | 9,919 | 29,828 | |
Interest receivable | 503 | 271 | |
Prepaid expenses | 14 | 15 | |
Total assets | 75,582 | 77,997 | |
Liabilities | |||
Payable for cash equivalents purchased | 9,919 | 29,828 | |
Management fee payable (see note 3) | 524 | 325 | |
Administration fee payable (see note 3) | 12 | 8 | |
Interest payable (see note 5) | 904 | 493 | |
Other liabilities and accrued expenses | 231 | 193 | |
Total liabilities | 52,613 | 58,649 | |
Commitments and contingencies (see note 6) | |||
Unitholders' Capital | |||
Common Unitholders' capital (1,069,642 and 888,565 units, respectively, issued and outstanding, see note 2f) | 23,393 | 19,461 | |
Accumulated distributable net loss (see note 2f) | (424) | (113) | |
Total unitholders' capital | [1],[2] | 22,969 | 19,348 |
Total liabilities and unitholders' capital | $ 75,582 | $ 77,997 | |
Net asset value per unit | [3] | $ 21.47 | $ 21.77 |
Non Controlled Non Affiliated Investments [Member] | |||
Investments at fair value: | |||
Non-controlled/non-affiliated investments (cost: $62,743 and $43,602, respectively) | $ 63,275 | $ 43,897 | |
Revolving Credit Facility Due February Two Thousand and Twenty Seven the SPV Facility [Member] | |||
Liabilities | |||
Long-Term Line of Credit | 23,501 | 14,051 | |
Revolving Credit Facility Due March Two Thousand and Twenty Four the Subscription Facility [Member] | |||
Liabilities | |||
Long-Term Line of Credit | $ 17,522 | $ 13,751 | |
[1]Calculated as the change in net asset value (“NAV”) per Unit during the period plus distributions declared per Unit, divided by the beginning NAV per unit. Total return does not include a sales load.[2]Not annualized for periods less than one year.[3]Calculated using the average Units outstanding method. Weighted average Units outstanding for the years ended December 31, 2023, December 31, 2022 and the period March 8, 2021 (date of first sale of units) through December 31, 2021 were 1,029,458, 720,266 and 276,929, respectively. |
Consolidated Statements of As_2
Consolidated Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment owned, at Cost | $ 72,662 | $ 73,430 |
Cash equivalents, at Cost | $ 9,919 | $ 29,828 |
Common unit, Issued | 1,069,642 | 1,069,642 |
Common unit, Outstanding | 888,565 | 888,565 |
Revolving Credit Facility Due February Two Thousand and Twenty Seven the SPV Facility [Member] | ||
Long term debt, Gross | $ 24,210 | $ 14,675 |
Debt issuance costs, Line of credit arrangements, Gross | 709 | 624 |
Revolving Credit Facility Due March Two Thousand and Twenty Four the Subscription Facility [Member] | ||
Long term debt, Gross | 17,550 | 13,800 |
Debt issuance costs, Line of credit arrangements, Gross | 28 | 49 |
Non Controlled Non Affiliated Investments [Member] | ||
Investment owned, at Cost | $ 62,743 | $ 43,602 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Investment Income: | ||||
Total investment income | $ 6,767 | $ 3,748 | $ 1,019 | |
Expenses: | ||||
Management fees (see note 3) | 565 | 419 | 224 | |
Administration fees (see note 3) | 42 | 27 | 9 | |
Interest and other credit facility expenses (see note 5) | 4,058 | 1,939 | 398 | |
Services fee | 0 | 0 | 250 | |
Organizational expenses | 0 | 0 | 229 | |
Other general and administrative expenses | 737 | 592 | 732 | |
Total expenses | 5,402 | 2,977 | 1,842 | |
Net investment income (loss) | 1,365 | 771 | (823) | |
Realized and unrealized gain (loss) on investments and cash equivalents: | ||||
Net realized loss on non-controlled/non-affiliated investments and cash equivalents | (19) | (16) | (5) | |
Net change in unrealized gain on non-controlled/non-affiliated investments and cash equivalents | 237 | 178 | 117 | |
Net realized and unrealized gain on non-controlled/non-affiliated investments and cash equivalents | 218 | 162 | 112 | |
Net Increase (Decrease) in Unitholders' Capital Resulting From Operations | $ 1,583 | $ 933 | $ (711) | |
Net Income (Loss) Per Unit | $ 1.54 | $ 1.3 | $ (2.57) | |
Investments and cash equivalents [Member] | ||||
Realized and unrealized gain (loss) on investments and cash equivalents: | ||||
Net realized loss on non-controlled/non-affiliated investments and cash equivalents | $ (19) | $ (16) | $ (5) | |
Net change in unrealized gain on non-controlled/non-affiliated investments and cash equivalents | 237 | 178 | 117 | |
Non Controlled Non Affiliated Investments [Member] | ||||
Investment Income: | ||||
Interest income from non-controlled/non-affiliated investments | 6,696 | 3,732 | 1,018 | |
Other income from non-controlled/non-affiliated investments | 71 | 16 | 1 | |
Realized and unrealized gain (loss) on investments and cash equivalents: | ||||
Net realized loss on non-controlled/non-affiliated investments and cash equivalents | $ (19) | $ (16) | $ (5) | |
[1]Commencement of operations |
Consolidated Statements of Chan
Consolidated Statements of Changes in Unitholders' Capital - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Increase (decrease) in unitholders' capital resulting from operations: | |||||
Net investment income (loss) | $ 1,365 | $ 771 | $ (823) | [1] | |
Net realized loss | (19) | (16) | (5) | [1] | |
Net change in unrealized gain | 237 | 178 | 117 | [1] | |
Net Increase (Decrease) in Unitholders' Capital Resulting From Operations | 1,583 | 933 | (711) | [1] | |
Distributions to unitholders (see note 9a): | |||||
From distributable earnings | (1,870) | (697) | 0 | [1] | |
From return of capital | (92) | 0 | 0 | [1] | |
Net distributions to Unitholders | (1,962) | (697) | 0 | ||
Increase (decrease) in unitholders' capital resulting from capital activity (see note 7): | |||||
Contributions | 4,000 | 4,500 | 15,501 | [1] | |
Less offering costs | 0 | 0 | (177) | [1] | |
Cancellation | 0 | 0 | (1) | [1] | |
Net increase in unitholders' capital resulting from capital activity | 4,000 | 4,500 | 15,323 | [1] | |
Total increase in unitholders' capital | 3,621 | 4,736 | 14,612 | [1] | |
Unitholders' capital, beginning of period | 19,348 | 14,612 | [1] | 0 | [1] |
Unitholders' capital, end of period | $ 22,969 | $ 19,348 | $ 14,612 | [1] | |
Capital unit activity (see note 7): | |||||
Units issued | 181,077 | 206,138 | 682,467 | [1] | |
Units canceled | 0 | 0 | (40) | [1] | |
Net increase from capital unit activity | 181,077 | 206,138 | 682,427 | [1] | |
[1]Commencement of operations |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Cash Flows from Operating Activities: | |||||
Net Increase (Decrease) in Unitholders' Capital Resulting From Operations | $ 1,583 | $ 933 | $ (711) | [1] | |
Adjustments to reconcile net increase (decrease) in unitholders' capital resulting from operations to net cash used in operating activities: | |||||
Net realized loss on investments and cash equivalents | 19 | 16 | 5 | [1] | |
Deferred financing costs | 336 | 345 | 133 | [1] | |
(Increase) decrease in operating assets: | |||||
Purchase of investments | (25,482) | (28,404) | (33,983) | [1] | |
Proceeds from disposition of investments | 7,164 | 12,289 | 6,870 | [1] | |
Net accretion of discount on investments | (469) | (234) | (61) | [1] | |
Capitalization of payment-in-kind income | (373) | (100) | 0 | [1] | |
Interest receivable | (232) | (100) | (171) | [1] | |
Prepaid expenses | 1 | (1) | (14) | [1] | |
Increase (decrease) in operating liabilities: | |||||
Payable for cash equivalents purchased | (19,909) | 9,828 | 20,000 | [1] | |
Management fee payable | 199 | 262 | 63 | ||
Administration fee payable | 4 | 4 | 4 | [1] | |
Interest payable | 411 | 454 | 39 | [1] | |
Other liabilities and accrued expenses | 38 | (221) | 414 | [1] | |
Net Cash Used in Operating Activities | (36,947) | (5,107) | (7,529) | [1] | |
Cash Flows from Financing Activities: | |||||
Contributions from unitholders | 4,000 | 4,500 | 15,501 | [1] | |
Cancellation of units | 0 | 0 | (1) | [1] | |
Cash distributions paid | (1,962) | (697) | 0 | [1] | |
Offering costs | 0 | 0 | (177) | [1] | |
Proceeds from borrowings | 30,635 | 42,401 | 24,723 | [1] | |
Repayments of borrowings | (17,750) | (27,750) | (12,050) | [1] | |
Net Cash Provided by Financing Activities | 14,923 | 18,454 | 27,996 | [1] | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (22,024) | 13,347 | 20,467 | [1] | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 33,814 | 20,467 | [1] | 0 | [1] |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 11,790 | 33,814 | 20,467 | [1] | |
Supplemental disclosure of cash flow information: | |||||
Cash paid for interest | 3,647 | 1,485 | 359 | [1] | |
Investments and cash equivalents [Member] | |||||
Adjustments to reconcile net increase (decrease) in unitholders' capital resulting from operations to net cash used in operating activities: | |||||
Net realized loss on investments and cash equivalents | 19 | 16 | 5 | [1] | |
Investments [Member] | |||||
Adjustments to reconcile net increase (decrease) in unitholders' capital resulting from operations to net cash used in operating activities: | |||||
Net change in unrealized gain on investments | $ (237) | $ (178) | $ (117) | [1] | |
[1]Commencement of operations |
Consolidated Schedule of Invest
Consolidated Schedule of Investments - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Schedule of Investments [Line Items] | |||||
Cost | $ 72,662 | $ 73,430 | |||
Investments Cash and Cash Equivalents at Fair Value. | 73,194 | 73,725 | |||
Liabilities in Excess of Other Assets | (50,225) | (54,377) | |||
Net Assets | $ 22,969 | $ 19,348 | |||
Percentage of Total Investments | 100% | 100% | |||
Health Care Providers Services [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 50.90% | 34.90% | |||
Health Care Equipment Supplies [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 16.10% | 19.30% | |||
Biotechnology [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 12.70% | 16.80% | |||
Pharmaceuticals [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 11.30% | 16.50% | |||
Life Sciences Tools Services [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 6.30% | 9.20% | |||
Health Care Technology [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 1.50% | 3.30% | |||
Distributors [Member] | |||||
Schedule of Investments [Line Items] | |||||
Percentage of Total Investments | 1.20% | ||||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | |||||
Schedule of Investments [Line Items] | |||||
Cost | $ 62,704 | $ 43,577 | |||
Fair Value | $ 63,268 | $ 43,886 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Apeel Technology Inc. | Biotechnology | S+625 | 1.00% | 8.75% | 6/29/2022 | 6/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [3] | 8.75% | |||
Maturity Date | [2] | Jun. 01, 2027 | |||
Par Amount | [2] | $ 317 | |||
Cost | [2] | 315 | |||
Fair Value | [2] | $ 317 | |||
Acquisition Date | [2] | Jun. 29, 2022 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Arcutis Biotherapeutics Inc | Pharmaceuticals | S+ 745 | 0.10% | 12.88% | 12/22/2021 | 1/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2],[4] | 745% | 745% | ||
Floor | [2],[4] | 0.10% | 0.10% | ||
Interest Rate | [2],[3],[4] | 12.90% | 11.62% | ||
Maturity Date | [2],[4] | Jan. 01, 2027 | Jan. 01, 2027 | ||
Par Amount | [2],[4] | $ 6,288 | $ 6,288 | ||
Cost | [2],[4] | 6,422 | 6,322 | ||
Fair Value | [2],[4] | $ 6,414 | $ 6,367 | ||
Acquisition Date | [2],[4] | Dec. 22, 2021 | Dec. 22, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Ardelyx Inc. | Health Care Pharmaceuticals | L+795 | 0.10% | 12.12% | 2/23/2022 | 3/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2],[4] | 795% | 795% | ||
Floor | [2],[4] | 1% | 0.10% | ||
Interest Rate | [2],[3],[4] | 13.32% | 12.12% | ||
Maturity Date | [2],[4] | Mar. 01, 2027 | Mar. 01, 2027 | ||
Par Amount | [2],[4] | $ 1,548 | $ 851 | ||
Cost | [2],[4] | 1,559 | 854 | ||
Fair Value | [2],[4] | $ 1,596 | $ 853 | ||
Acquisition Date | [2],[4] | Feb. 23, 2022 | Feb. 23, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | BayMark Health Services Inc. | Health Care Providers & Services | L+500 | 1.00% | 9.73 | 6/29/2021 | 6/11/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 500% | 500% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 10.61% | [2] | 9.73% | |
Maturity Date | [2] | Jun. 11, 2027 | Jun. 11, 2027 | ||
Par Amount | [2] | $ 4,026 | $ 4,068 | ||
Cost | [2] | 4,000 | 4,034 | ||
Fair Value | [2] | $ 4,026 | $ 4,068 | ||
Acquisition Date | [2] | Jun. 29, 2021 | Jun. 29, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | BridgeBio Pharma Inc. | Biotechnology | 9.00% | 11/17/2021 | 11/17/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2],[4] | 0% | |||
Floor | [2],[4] | 0% | |||
Interest Rate | [2],[3],[4],[5] | 9% | 9% | ||
Maturity Date | [2],[4] | Nov. 17, 2026 | Nov. 17, 2026 | ||
Par Amount | [2],[4] | $ 3,767 | $ 3,683 | ||
Cost | [2],[4] | 3,765 | 3,656 | ||
Fair Value | [2],[4] | $ 3,777 | $ 3,683 | ||
Acquisition Date | [2],[4] | Nov. 17, 2021 | Nov. 17, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | CVAUSA Management LLC | Health Care Providers & Services | S+ 550 | 1.00% | 11.74% | 5/22/2023 | 5/22/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 650% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.74% | |||
Maturity Date | [2] | May 22, 2029 | |||
Par Amount | [2] | $ 1,691 | |||
Cost | [2] | 1,643 | |||
Fair Value | [2] | $ 1,691 | |||
Acquisition Date | [2] | May 22, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Cerapedics Inc. | Biotechnology | S+620 | 2.75% | 11.55% | 12/27/2022 | 1/1/2028 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 620% | 620% | ||
Floor | [2] | 2.75% | 2.75% | ||
Interest Rate | [3] | 11.55% | [2] | 10.52% | |
Maturity Date | [2] | Jan. 01, 2028 | Jan. 01, 2028 | ||
Par Amount | [2] | $ 3,348 | $ 2,494 | ||
Cost | [2] | 3,357 | 2,488 | ||
Fair Value | [2] | $ 3,348 | $ 2,488 | ||
Acquisition Date | [2] | Dec. 27, 2022 | Dec. 27, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Exactcare Parent, Inc | Health Care Providers & Services | S+ 650 |1.00% | 11.89% | 11/3/2023 | 11/5/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 650% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.89% | |||
Maturity Date | [2] | Nov. 05, 2029 | |||
Par Amount | [2] | $ 934 | |||
Cost | [2] | 909 | |||
Fair Value | [2] | $ 908 | |||
Acquisition Date | [2] | Nov. 03, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Fertility (ITC) Investment Holdco LLC | Health Care Providers & Services | S+ 650 | 1.00% | 11.63% | 1/4/2023|1/3/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 650% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.97% | |||
Maturity Date | [2] | Jan. 03, 2029 | |||
Par Amount | [2] | $ 2,643 | |||
Cost | [2] | 2,574 | |||
Fair Value | [2] | $ 2,643 | |||
Acquisition Date | [2] | Jan. 04, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Glooko Inc. | Health Care Technology | L+790 | 0.10% | 12.07% | 9/30/2021 | 10/1/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 790% | 790% | ||
Floor | [2] | 0.10% | 0.10% | ||
Interest Rate | [3] | 13.35% | [2] | 12.07% | |
Maturity Date | [2] | Oct. 01, 2026 | Oct. 01, 2026 | ||
Par Amount | [2] | $ 907 | $ 1,452 | ||
Cost | [2] | 919 | 1,456 | ||
Fair Value | [2] | $ 948 | $ 1,455 | ||
Acquisition Date | [2] | Sep. 30, 2021 | Sep. 30, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Ivy Fertility Services LLC | Health Care Providers & Services | L+625 | 1.00% | 10.39% | 12/22/2021 | 2/25/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [3] | 10.39% | |||
Maturity Date | [2] | Feb. 25, 2026 | |||
Par Amount | [2] | $ 2,697 | |||
Cost | [2] | 2,659 | |||
Fair Value | [2] | $ 2,724 | |||
Acquisition Date | [2] | Dec. 22, 2021 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Maxor Acquisition Inc | Health Care Providers & Services | S+ 675 |1.00% | 12.48%| 3/1/2023 | 3/1/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 675% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 12.48% | |||
Maturity Date | [2] | Mar. 01, 2029 | |||
Par Amount | [2] | $ 1,761 | |||
Cost | [2] | 1,714 | |||
Fair Value | [2] | $ 1,761 | |||
Acquisition Date | [2] | Mar. 01, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Meditrina Inc. | Health Care Equipment & Supplies | S+550 | 3.45% | 9.82% | 12/20/202 | 12/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 550% | 550% | ||
Floor | [2] | 3.45% | 3.45% | ||
Interest Rate | [3] | 10.85% | [2] | 9.82% | |
Maturity Date | [2] | Dec. 01, 2027 | Dec. 01, 2027 | ||
Par Amount | [2] | $ 312 | $ 312 | ||
Cost | [2] | 313 | 309 | ||
Fair Value | [2] | $ 315 | $ 311 | ||
Acquisition Date | [2] | Dec. 20, 2022 | Dec. 20, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Medrina, LLC | Health Care Providers & Services | S+ 625 |1.00% | 11.67% | 10/20/2023 | 10/20/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.67% | |||
Maturity Date | [2] | Oct. 20, 2029 | |||
Par Amount | [2] | $ 697 | |||
Cost | [2] | 680 | |||
Fair Value | [2] | $ 680 | |||
Acquisition Date | [2] | Oct. 20, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | OIS Management Services, LLC | Health Care Providers & Services | S+ 575 |1.00% | 11.20% | 12/29/2023 | 11/16/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 575% | |||
Floor | [2] | 0.75% | |||
Interest Rate | [2],[3] | 11.20% | |||
Maturity Date | [2] | Nov. 16, 2028 | |||
Par Amount | [2] | $ 875 | |||
Cost | [2] | 868 | |||
Fair Value | [2] | $ 858 | |||
Acquisition Date | [2] | Dec. 29, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | ONS MSO LLC | Health Care Providers & Services | S+ 625 |1.00% | 11.62%| 2/10/2023 | 7/8/2025 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.62% | |||
Maturity Date | [2] | Jul. 08, 2026 | |||
Par Amount | [2] | $ 2,527 | |||
Cost | [2] | 2,469 | |||
Fair Value | [2] | $ 2,527 | |||
Acquisition Date | [2] | Feb. 10, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Oral Surgery Partners Holdings LLC | Health Care Providers & Services | S+625| 1.00% | 10.92% | 11/29/2022 | 5/10/2024 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1] | 625% | |||
Floor | 1% | ||||
Interest Rate | [3] | 10.92% | |||
Maturity Date | May 10, 2024 | ||||
Par Amount | $ 567 | ||||
Cost | 557 | ||||
Fair Value | $ 556 | ||||
Acquisition Date | Nov. 29, 2022 | ||||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Orthopedic Care Partners Management LLC | Health Care Providers & Services | S+650 | 1.00% | 10.91% | 8/17/2022 | 5/16/2024 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 650% | 650% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 12.11% | [2] | 10.91% | |
Maturity Date | [2] | May 16, 2024 | May 16, 2024 | ||
Par Amount | [2] | $ 1,673 | $ 1,087 | ||
Cost | [2] | 1,669 | 1,080 | ||
Fair Value | [2] | $ 1,673 | $ 1,087 | ||
Acquisition Date | [2] | Aug. 17, 2022 | Aug. 17, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Outset Medical Inc. | Health Care Equipment & Supplies | S+515 | 2.75% | 9.33% | 11/3/2022 | 11/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 515% | 515% | [4] | |
Floor | [2],[4] | 2.75% | 2.75% | ||
Interest Rate | [3] | 10.50% | [2],[4] | 9.33% | |
Maturity Date | [2],[4] | Nov. 01, 2027 | Nov. 01, 2027 | ||
Par Amount | [2],[4] | $ 3,909 | $ 3,052 | ||
Cost | [2],[4] | 3,918 | 3,034 | ||
Fair Value | [2],[4] | $ 3,918 | $ 3,029 | ||
Acquisition Date | [2],[4] | Nov. 03, 2022 | Nov. 03, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Pediatric Home Respiratory Services LLC | Health Care Providers & Services | S+625 | 1.00% | 10.67% | 8/19/2022 |12/4/2024 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [3] | 10.67% | |||
Maturity Date | [2] | Dec. 04, 2024 | |||
Par Amount | [2] | $ 463 | |||
Cost | [2] | 457 | |||
Fair Value | [2] | $ 459 | |||
Acquisition Date | [2] | Aug. 19, 2022 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Plastics Management LLC | Health Care Providers & Services | S+500 | 1.00% | 9.89% | 8/26/2021 | 8/18/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 500% | 500% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 10.45% | [2] | 9.89% | |
Maturity Date | [2] | Aug. 18, 2027 | Aug. 18, 2027 | ||
Par Amount | [2] | $ 3,861 | $ 3,107 | ||
Cost | [2] | 3,824 | 3,069 | ||
Fair Value | [2] | $ 3,861 | $ 3,107 | ||
Acquisition Date | [2] | Aug. 26, 2021 | Aug. 26, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | RQM+ Corp. | Life Sciences Tools & Services | S+575 | 1.00% | 10.59% | 8/20/2021 | 8/12/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 575% | 575% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 11.36% | [2] | 10.59% | |
Maturity Date | [2] | Aug. 12, 2026 | Aug. 12, 2026 | ||
Par Amount | [2] | $ 3,992 | $ 4,033 | ||
Cost | [2] | 3,957 | 3,986 | ||
Fair Value | [2] | $ 3,992 | $ 4,033 | ||
Acquisition Date | [2] | Aug. 20, 2021 | Aug. 20, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Retina Midco, Inc | Health Care Providers & Services | S+ 575 |1.00% | 11.38% | 12/18/2023 | 1/31/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 575% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.38% | |||
Maturity Date | [2] | Jan. 31, 2026 | |||
Par Amount | [2] | $ 2,897 | |||
Cost | [2] | 2,840 | |||
Fair Value | [2] | $ 2,839 | |||
Acquisition Date | [2] | Dec. 18, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | SCP Eye Care LLC | Health Care Providers & Services | S+575 |1.00% | 9.46% | 10/6/2022 | 10/5/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 575% | 575% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 11.19% | [2] | 9.46% | |
Maturity Date | [2] | Oct. 05, 2029 | Oct. 05, 2029 | ||
Par Amount | [2] | $ 3,499 | $ 2,905 | ||
Cost | [2] | 3,399 | 2,813 | ||
Fair Value | [2] | $ 3,499 | $ 2,810 | ||
Acquisition Date | [2] | Oct. 06, 2022 | Oct. 06, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Southern Orthodontic Partners Management LLC | Health Care Providers & Services | S+600 | 1.00% | 10.77% | 6/3/2022 | 1/27/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | 600% | ||
Floor | [2] | 1% | 1% | ||
Interest Rate | [3] | 11.72% | [2] | 10.77% | |
Maturity Date | [2] | Jan. 27, 2026 | Jan. 27, 2026 | ||
Par Amount | [2] | $ 2,075 | $ 489 | ||
Cost | [2] | 2,050 | 485 | ||
Fair Value | [2] | $ 2,075 | $ 489 | ||
Acquisition Date | [2] | Jun. 03, 2022 | Jun. 03, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Spectrum Pharmaceuticals Inc. | Biotechnology | S+570 | 2.30% | 9.88% | 9/21/2022 | 9/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 570% | |||
Floor | [2] | 2.30% | |||
Interest Rate | [3] | 9.88% | |||
Maturity Date | [2] | Sep. 01, 2027 | |||
Par Amount | [2] | $ 915 | |||
Cost | [2] | 905 | |||
Fair Value | [2] | $ 906 | |||
Acquisition Date | [2] | Sep. 21, 2022 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | SunMed Group Holdings LLC | Health Care Equipment & Supplies | L+575 | 0.75% | 10.48% | 6/16/2021 | 6/16/2028 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 550% | 575% | ||
Floor | [2] | 0.75% | 0.75% | ||
Interest Rate | [3] | 10.96% | [2] | 10.48% | |
Maturity Date | [2] | Jun. 16, 2028 | Jun. 16, 2028 | ||
Par Amount | [2] | $ 1,950 | $ 2,033 | ||
Cost | [2] | 1,926 | 2,004 | ||
Fair Value | [2] | $ 1,950 | $ 2,033 | ||
Acquisition Date | [2] | Jun. 16, 2021 | Jun. 16, 2021 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | UVP Management LLC | Health Care Providers & Services | S+ 625 |1.00% | 11.79% | 9/18/2023 | 9/15/2025 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 625% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.75% | |||
Maturity Date | [2] | Sep. 15, 2025 | |||
Par Amount | [2] | $ 1,285 | |||
Cost | [2] | 1,257 | |||
Fair Value | [2] | $ 1,253 | |||
Acquisition Date | [2] | Sep. 18, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | United Digestive MSO Parent LLC | Health Care Providers & Services | S+ 675 |1.00% | 12.29% | 3/30/2023 | 3/30/2029 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 675% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 12.25% | |||
Maturity Date | [2] | Mar. 30, 2029 | |||
Par Amount | [2] | $ 982 | |||
Cost | [2] | 955 | |||
Fair Value | [2] | $ 982 | |||
Acquisition Date | [2] | Mar. 30, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Urology Management Holdings Inc | Health Care Providers & Services | S+ 650 |1.00% | 11.93% | 2/7/2023 | 6/15/2026 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 650% | |||
Floor | [2] | 1% | |||
Interest Rate | [2],[3] | 11.93% | |||
Maturity Date | [2] | Jun. 15, 2026 | |||
Par Amount | [2] | $ 920 | |||
Cost | [2] | 897 | |||
Fair Value | [2] | $ 913 | |||
Acquisition Date | [2] | Feb. 07, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Vapotherm Inc. | Health Care Equipment & Supplies | S+830 | 1.00% | 12.58% | 2/18/2022 | 2/1/2027 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1] | 930% | [2] | 830% | |
Floor | 1% | [2] | 1% | ||
Interest Rate | [3],[6] | 14.75% | [2] | 12.58% | |
Maturity Date | Feb. 01, 2027 | [2] | Feb. 01, 2027 | ||
Par Amount | $ 3,384 | [2] | $ 3,095 | ||
Cost | 3,437 | [2] | 3,094 | ||
Fair Value | $ 3,435 | [2] | $ 3,111 | ||
Acquisition Date | Feb. 18, 2022 | [2] | Feb. 18, 2022 | ||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | Vertos Medical Inc | Health Care Equipment & Supplies | S+515 | 4.75% | 10.48% | 6/14/2023 | 7/1/2028 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1],[2] | 515% | |||
Floor | [2] | 4.75% | |||
Interest Rate | [2],[3] | 10.50% | |||
Maturity Date | [2] | Jul. 01, 2028 | |||
Par Amount | [2] | $ 567 | |||
Cost | [2] | 563 | |||
Fair Value | [2] | $ 567 | |||
Acquisition Date | [2] | Jun. 14, 2023 | |||
Investment, Identifier [Axis]: Bank Debt/Senior Secured Loans | WCI-BXC Purchaser, LLC | Distributors | S+ 625 |1.00% | 11.64% | 11/6/2023 | 11/6/2030 | |||||
Schedule of Investments [Line Items] | |||||
Spread above Index | [1] | 625% | |||
Floor | 1% | ||||
Interest Rate | [3] | 11.64% | |||
Maturity Date | Nov. 06, 2030 | ||||
Par Amount | $ 840 | ||||
Cost | 820 | ||||
Fair Value | $ 819 | ||||
Acquisition Date | Nov. 06, 2023 | ||||
Investment, Identifier [Axis]: Cash Equivalents | US Treasury Bill | Government | 12/29/2023 | 2/27/2024 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | Feb. 27, 2024 | ||||
Par Amount | $ 10,000 | ||||
Cost | 9,919 | ||||
Fair Value | $ 9,919 | ||||
Acquisition Date | Dec. 29, 2023 | ||||
Investment, Identifier [Axis]: Cash Equivalents | US Treasury Bill | Government | 12/30/2022 | 2/23/2023 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | Feb. 23, 2023 | ||||
Par Amount | $ 30,000 | ||||
Cost | 29,828 | ||||
Fair Value | $ 29,828 | ||||
Acquisition Date | Dec. 30, 2022 | ||||
Investment, Identifier [Axis]: Common Equity/Warrants | Assertio Holdings Inc Common Stock | Pharmaceuticals | 7/31/2023 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [7],[8] | Jul. 31, 2023 | |||
Par Amount | [7],[8] | $ 1,088 | |||
Cost | [7],[8] | 4 | |||
Fair Value | [7],[8] | 1 | |||
Investment, Identifier [Axis]: Total Investments | |||||
Schedule of Investments [Line Items] | |||||
Cost | 62,743 | [9] | $ 43,602 | [10] | |
Fair Value | 63,275 | [9] | 43,897 | [10] | |
Investment, Identifier [Axis]: Total Warrant | |||||
Schedule of Investments [Line Items] | |||||
Cost | 39 | 25 | |||
Fair Value | $ 7 | $ 11 | |||
Investment, Identifier [Axis]: Warrants | Meditrina Inc. | Health Care Equipment & Supplies | 12/20/2022 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [8] | Dec. 20, 2022 | Dec. 20, 2022 | ||
Par Amount | [8] | $ 2,719 | $ 2,719 | ||
Cost | [8] | 2 | 2 | ||
Fair Value | [8] | $ 2 | $ 2 | ||
Investment, Identifier [Axis]: Warrants | Spectrum Pharmaceuticals Inc. | Biotechnology | 9/21/2022 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [8] | Sep. 21, 2022 | |||
Par Amount | [8] | $ 13,871 | |||
Cost | [8] | 4 | |||
Fair Value | [8] | $ 1 | |||
Investment, Identifier [Axis]: Warrants | Vapotherm Inc. | Health Care Equipment & Supplies | 2/18/2022 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [8] | Feb. 18, 2022 | Feb. 18, 2022 | ||
Par Amount | [8] | $ 7,029 | $ 3,324 | ||
Cost | [8] | $ 29 | 19 | ||
Fair Value | [8] | $ 8 | |||
Investment, Identifier [Axis]: Warrants | Vertos Medical, Inc. | Health Care Equipment & Supplies | 6/14/2023 | |||||
Schedule of Investments [Line Items] | |||||
Maturity Date | [8] | Jun. 14, 2023 | |||
Par Amount | [8] | $ 13,779 | |||
Cost | [8] | 4 | |||
Fair Value | [8] | $ 4 | |||
[1]Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor.[2]Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SLR HC BDC SPV LLC (the “SPV”). Such investments are pledged as collateral under the SPV Facility (see Note 5 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.[3]Floating rate debt investments typically bear interest at a rate determined by reference to either the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment SLR HC BDC LLC (the “Company”, “we”, “us” or “our”) has provided the current interest rate in effect as of December 31, 2023.[4]Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2023, on a fair value basis, non-qualifying assets in the portfolio represented 20.8% of the total assets of the Company.[5]BridgeBio Pharma, Inc. may elect to defer up to 3.00% of the coupon as PIK.[6]Vapotherm, Inc. may elect to defer up to 9.00% of the coupon as PIK.[7]Denotes a Level 1 investment.[8]Non-income producing security.[9]Aggregate net unrealized depreciation for U.S. federal income tax purposes is $241; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $600 and $841, respectively, based on a tax cost of $63,516. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.[10]Aggregate net unrealized depreciation for U.S. federal income tax purposes is $71; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $318 and $389, respectively, based on a tax cost of $43,968. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated. |
Consolidated Schedule of Inve_2
Consolidated Schedule of Investments (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Schedule of Investments [Line Items] | ||||
Percentage of Non Qualifying Assets in the Portfolio of Total Assets | 20.80% | 17.90% | ||
Tax Basis of Investments, Unrealized Appreciation (Depreciation), Net | [1] | $ (241) | $ (71) | |
Tax Basis of Investments, Gross, Unrealized Appreciation | 600 | 318 | ||
Tax Basis of Investments, Gross, Unrealized Depreciation | 841 | 389 | ||
Tax Basis of Investments, Cost for Income Tax Purposes | $ 63,516 | $ 43,968 | ||
Investment Owned, Net Assets, Percentage | 100% | 100% | ||
Percentage Representing Bank Debt Or Senior Secured Loans Owned | 275.40% | 226.80% | ||
Percentage Representing Shares/Warrants Owned | 0.10% | |||
Percentage Representing Warrants Owned | 0.10% | |||
Percentage Representing Total Investments In Investments Owned | 275.50% | [2] | 226.90% | |
Percentage Representing Cash Equivalents In Investments Owned | 43.20% | 154.10% | ||
Percentage Representing Total Investments And Cash Equivalents In Investments Owned | 318.70% | 381% | ||
Percentage Representing Liabilities In Excess Of Other Assets In Investments Owned | 218.70% | 281% | ||
BridgeBio Pharma Inc [Member] | ||||
Schedule of Investments [Line Items] | ||||
Rate of coupon as PIK | 3% | 3% | ||
Vapotherm, Inc. [Member] | ||||
Schedule of Investments [Line Items] | ||||
Rate of coupon as PIK | 9% | 8% | ||
[1]Tax information for the fiscal years ended December 31, 2023 and December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 are/were estimates and are not final until the Company files its tax returns, typically in October each year.[2]Aggregate net unrealized depreciation for U.S. federal income tax purposes is $241; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $600 and $841, respectively, based on a tax cost of $63,516. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,583 | $ 933 | $ (711) | [1] |
[1]Commencement of operations |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
N-2
N-2 - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [2] | Jan. 04, 2021 | [2] | ||
Cover [Abstract] | |||||||
Entity Central Index Key | 0001832148 | ||||||
Amendment Flag | false | ||||||
Securities Act File Number | 000-56247 | ||||||
Document Type | 10-K | ||||||
Entity Registrant Name | SLR HC BDC LLC | ||||||
Entity Address, Address Line One | 500 Park Avenue | ||||||
Entity Address, City or Town | New York | ||||||
Entity Address, State or Province | NY | ||||||
Entity Address, Postal Zip Code | 10022 | ||||||
City Area Code | 212 | ||||||
Local Phone Number | 993-1670 | ||||||
Entity Well-known Seasoned Issuer | No | ||||||
Entity Emerging Growth Company | true | ||||||
Entity Ex Transition Period | false | ||||||
General Description of Registrant [Abstract] | |||||||
Risk Factors [Table Text Block] | Summary Risk Factors General Risks Related to Investment Strategy • The Company intends to make investments in the healthcare and life science industries, which involve substantial risks. • The success of the Company’s investments will depend on the successful implementation of its investment strategy and the healthcare industry generally. • Various segments of the life sciences industry are (or may become) (i) highly regulated, (ii) subject to frequent regulatory change and (iii) dependent upon various government or private insurance reimbursement programs. • The Company could be subject to the risks associated with investments in senior secured loans, subordinated loans, Mezzanine Securities (as defined below) and unsecured loans. • The Company’s loans may permit borrowers to prepay, which could affect the yield of the Company’s investments. • Terms and conditions of the Company’s loan agreements may be amended, modified or waived only by the agreement of the lenders. • The Company may make investments in loans, or securities backed by loans, that are or may be non-performing loans. • The Company’s success will depend, in part, on originating loans on advantageous terms. • Bank loans and corporate loans may not be readily marketable and may be subject to restrictions on resale. • The value of the Company’s investments could be affected by factors affecting the economy and securities markets generally. • Periods of market volatility have occurred and could continue to occur in response to pandemics or other events. • The Adviser will rely on information provided by internal sources and third parties when conducting due diligence. • Fixed and floating rate debt instruments are subject to the risks associated with change in interest rates. • The Company could be subject to the risks associated with investments in smaller and middle market companies. • Most of the Company’s Portfolio Investments at any given time are expected to be illiquid. • The Company is subject to risks related to inflation and deflation. • Economic sanction laws may prohibit investments in certain countries and with certain individuals and companies. • The Company may choose to waive or defer enforcement of covenants in the debt securities held in its portfolio, which may cause the Company to lose all or part of its investment in these companies. General Risks Related to the Company • There can be no guarantee of returns and Unitholders may lose all of their money by investing in the Company. • Pursuant to the LLC Agreement, Units are not generally transferable and voluntary withdrawal of Units is not allowed. • The Company is subject to management risk because the Adviser actively manages its investment portfolio. • If the professional staff of the Adviser fail to maintain their existing relationships or develop new relationships with other sponsors or sources of investment opportunities, the Company will not be able to grow its investment portfolio. • The Company’s assets are available to satisfy all liabilities and other obligations of the Company. • There is no assurance that the Adviser’s analysis of potential investments will take into consideration all appropriate factors. • The Company could be substantially adversely affected by the unfavorable performance of any single investment. • The Company will include in its income certain amounts that the Company has not yet received in cash. • It is expected that the majority of the Company’s investments will not have market quotations available. • Securities that the Adviser believes are not valued correctly may not ultimately be valued as projected. • The Adviser may employ financial/analytical models that may not reflect actual results. • The Company and the Adviser may be subject to the risks and costs of regulatory investigations or becoming involved in litigation with third parties. • A Unitholder in default with respect to its unfunded Commitment may experience material adverse effects on its investment. • The Company and/or the Adviser may enter into various indemnification agreements or arrangements with third parties. • The Company could be subject to the risks related to the Russian invasion of Ukraine. • Unitholders could be subject to cybersecurity risks associated with electronic databases and communications. • Adverse developments affecting the financial services industry could have a material adverse effect on the Company, the Adviser and the Portfolio Investments. • The Company is subject to technological risks, including those associated with artificial intelligence and machine learning technology. • The Company is subject to risks associated with ESG (as defined below) initiatives and climate change. • The Company is subject to risks associated with U.S. government shutdowns, uncertainty over the U.S. debt ceiling and any related downgrades in the U.S.’s credit ratings. Risks Related to RICs and BDCs • The Company intends to distribute to Unitholders substantially all of its ordinary income and capital gain. • No assurance can be given that the Company will be able to maintain qualification as a RIC. • Unitholders will experience the increased risks pertaining to the Company’s use of leverage to partially finance its investments. • A BDC must carry investments at market value or at fair value, as determined in good faith by the Board. • At least 70% of a BDC’s assets must consist of “qualifying assets”. Regulatory Risks Relating to the Company • The Company and its affiliates are substantially limited in their ability to co-invest in • The Company could be precluded from conducting Rule 506 Offerings (as defined below) due to “Bad Actor” restrictions. • The Company could be subject to the risks associated with complying with the Sarbanes-Oxley Act (as defined below). Other Risks Related to Portfolio Investments • The Company could be subject to the risks associated with investments in high yield securities, corporate debt securities, convertible securities, preferred stock, reverse repurchase agreements, and distressed companies. • The Company could be subject to the risks associated with the use of warrants and rights. • The Company could be subject to the risks associated with the elimination of LIBOR and use of SOFR. • The Company could be subject to the risks associated with the effect of an economic slowdown on Portfolio Investments. • The Company’s Portfolio Investments will require active monitoring and may, at times, involve participation in business strategy or reorganization proceedings. • The Company could be subject to the risks associated with investments in zero-coupon bonds, deferred • The Company may dispose of its investments through whatever manner it deems to be advisable, including through asset sales, repackaging transactions, securitizations, initial public offerings, strategic transactions and other mergers and acquisitions activity, and/or any combination thereof. Therefore, the disposition of Company investments will be subject to the risks associated with the particular exit strategy utilized. Item 1A. Risk Factors. The purchase of Units involves a number of significant risks and other important factors relating to investments in BDCs generally, and relating to the strategy and investment objective of the Company in particular. An investment in the Company is a potentially suitable investment only for a sophisticated investor for whom such an investment does not represent a complete investment program and who, in consultation with its investment and tax advisors, fully understands and is capable of assuming the risks of an investment in the Company. The Company holds certain investments and conducts certain activities through investing in wholly-owned SPVs. All references to investments by the Company in this annual report on Form 10-K refer, There can be no assurance that the Company will achieve its investment objective, that the Company will not lose capital, that the Adviser’s judgment will result in profitable investments by the Company or that the Adviser will successfully be able to implement the Company’s investment strategy. An investment in the Company involves investment considerations and risk factors that prospective investors should consider before subscribing. No guarantee or representation is made that the Company’s investments will succeed. Certain of the characteristics and risks of the portfolio instruments and investment, hedging, financing and disposition techniques that the Adviser may utilize in managing the Company are set forth below. This is not intended to be a complete description or enumeration of portfolio instruments, investment, hedging, financing or disposition techniques or risks. The Company’s ability to achieve its investment objective may be affected by, among other things, the factors described below. The Company may also invest in instruments or engage in investment, hedging, financing or disposition techniques other than those described below, including instruments or investment, hedging, financing or disposition techniques that are not in existence as of the date of this annual report on Form 10-K. Consistent The discussion below, to the extent it relates to bankruptcy law or proceedings or to debtors’ and creditors’ rights, is based upon principles of U.S. federal and state laws. Insofar as the Portfolio Investments, include obligations of non-U.S. issuers, or General Risks Related to Investment Strategy Healthcare and Life Science Industries’ Related Risks Also, obtaining government approval for new products from governmental agencies can be lengthy, expensive and uncertain, and withdrawal or curtailment of government support could have an adverse impact on the profitability or market price of healthcare and life sciences companies. Furthermore, delays in generating products (as well as more general ongoing capital requirements) may result in the need for companies to seek additional capital, potentially diluting the interest of existing investors, such as the Company (and indirectly, the Unitholders). Investments in Healthcare Companies Sector Risk. Concentration Risk. While investment in multiple opportunities may provide some diversification of investment risk, no assurance can be given that such diversification will occur, or if it does, that it will not reduce, rather than increase, potential net profits. Risks Inherent in Healthcare-Related Assets. Companies in the healthcare sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of healthcare through outpatient services. Companies in the healthcare sector are heavily dependent on obtaining and defending patents, which may be time consuming and costly, and the expiration of patents may also adversely affect the profitability of these companies. Healthcare companies are also subject to extensive litigation based on product liability and similar claims. In addition, their products can become obsolete due to industry innovation, changes in technologies or other market developments. Many new products in the healthcare sector require significant research and development and may be subject to regulatory approvals, all of which may be time consuming and costly with no guarantee that any product will come to market. The Company’s assets will compete in a relatively uncertain political, economic, and regulatory environment, and instability or an overall decline within the healthcare sector will not be balanced by investments in industries not so affected. In addition, many healthcare companies may have substantial and ongoing capital needs for research and development, clinical trials and marketing and may have difficulty obtaining such funding under various market conditions or such capital may be obtained on terms that are not favorable to existing investors. Regulations of Healthcare Industry. Federal and state governments have intensified enforcement policies, resulting in a significant increase in the number of inspections, citations of regulatory deficiencies and other regulatory sanctions, including terminations from the Medicare and Medicaid programs, bans on Medicare and Medicaid payments for new admissions, civil monetary penalties and even criminal penalties. The Company’s investments could be forced to expend considerable resources on responding to an investigation or other enforcement action under applicable laws or regulations, The Company is unable to predict the future course of federal, state and local regulation or legislation, including the Medicare and Medicaid statutes and regulations. Changes in regulatory framework could have a material adverse effect on the Company’s Portfolio Investments and the Company. Senior Secured Loans e.g. Subordinated Loans —Senior Secured Loans Mezzanine Securities their relatively high debt-to-equity ratios create Unsecured Loans or Debt Prepayment Risk either Investment Modification Risk Collateral Risk Defaults after acquisition, non-performing loans. In the event of any default under a loan directly held by the Company or a loan underlying a security held by the Company, the Company will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the loan, which could have a material adverse effect on the Company’s cash flow from operations. Other non-performing loans may bankruptcy trustee or debtor-in-possession to the Litigation and Related Risks Associated with Origination and Servicing Ability to Originate Loans on Advantageous Terms; Competition and Supply process, and to co-investors and/or third syndication is not successful, the Company may elect to sell all or a portion of an originated investment at a loss in order to rebalance the Company’s portfolio. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies, particularly companies experiencing significant business and financial difficulties is unusually high. There is no assurance that the Adviser will correctly evaluate the value of the assets collateralizing the Company loans, the prospects for successful repayment or a successful reorganization or similar action. Risks Relating to Bank Loans and Corporate Loans Investments in Smaller and Middle Market Companies Holders of bank loans, corporate loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate or other borrower for payment of principal and interest. If the Company does not receive scheduled interest or principal payments on such indebtedness, the value of the Company’s investments could be adversely affected. The Company may invest in secured and unsecured bank loans and corporate loans. Bank loans and corporate loans that are fully secured may offer the Company more protection than an unsecured loan in the event of non-payment of scheduled Bank loans usually require, in addition to scheduled payments of interest and principal, the prepayment of the bank loan from free cash flow. The degree to which borrowers prepay bank loans, whether as a contractual requirement or at their election, may be affected by general business conditions, the financial condition of the borrower and competitive conditions among lenders, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which the Company derives interest income will be reduced. The effect of prepayments on the Company’s performance may or may not be mitigated by the receipt of prepayment fees and/or the Company’s reinvestment of prepayments in other bank loans that have similar or identical yields. The Company may purchase “assignments” of bank loans from lenders. The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. The Company may also invest in “participations” in bank loans. Participations by the Company in a lender’s portion of a bank loan typically will result in the Company having a contractual relationship only with such lender, not with the borrower. As a result, the Company may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of such payments from the borrower. In connection with purchasing participations, the Company generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights with respect to any funds acquired by other lenders through set-off against the In many cases bank loans and loan participations would not be deemed to be securities for purposes of U.S. federal and/or state securities laws. As a result, an investment in bank loans would not be afforded the same protections as an investment in securities, such as the extensive disclosure requirements under U.S. federal and/or state securities laws, which may adversely impact the Company’s ability to seek recourse in respect of such investments. Similarly, the documentation evidencing bank loans and loan participations will not necessarily be maintained with the Company’s custodian. General Economic and Market Risk Various social and political circumstances in the U.S. and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics) may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Such events, including rising trade tensions between the United States and China, other uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic and other policies with other countries, the large-scale invasion of Ukraine by Russia that began in February 2022 and resulting sanctions or other restrictive actions that the United States and other countries have imposed against Russia, the COVID-19 pandemic, Additionally, the Federal Reserve raised the Federal Funds Rate in 2022 and in 2023. Although the Federal Reserve left its benchmark rates steady in the fourth quarter of 2023, it has indicated that additional rate increases in the future may be necessary to mitigate inflationary pressures and there can be no assurance that the Federal Reserve will not make upward adjustments to the federal funds rate in 2024. However, there are reports that the Federal Reserve may begin to cut the benchmark rates. These developments, along with the United States government’s credit and deficit concerns, global economic uncertainties and market volatility and the impacts of COVID-19, could Continuing market uncertainty may have a significant impact on the business of the Company. Among other things, the level of investment opportunities may decline from the Adviser’s current expectations. One possible consequence is that the Company may take a longer than anticipated period to invest capital and/or the Company may be relatively concentrated in a limited number of investments. Consequently, during this period, the returns (if any) realized by Unitholders may be substantially adversely affected by the unfavorable performance of a small number of these investments. Furthermore, market conditions may unfavorably impact the Company’s ability to secure leverage on terms as favorable as more established borrowers in the market, or to obtain any leverage on commercially favorable terms. To the extent the Company is able to secure financing for investments, increases in interest rates or in the risk spread demanded by financing sources would make the use of leverage more expensive and could limit the Company’s ability to structure and consummate its investments. Although the Adviser believes that recent market dislocations will result in attractive investment opportunities, the Company may not be able to time the acquisition or disposition of its investments correctly, which could result in further depreciation in values. Public Health Crises Risk example, the COVID-19 pandemic COVID-19 the re-introduction the COVID-19 including COVID-19 Despite actions of the U.S. federal government and foreign governments, the uncertainty surrounding the COVID-19 General Credit Risk i.e. e.g. subordination, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. The degree of credit risk associated with any particular Portfolio Investment or any collateral relating thereto may be difficult or impossible for the Adviser to determine within reasonable standards of predictability. The Adviser utilizes various third parties that hold Company assets (such as the Custodian and prime brokers) in implementing the Company’s investment strategy, and the Company will therefore also be subject to credit risk with respect to such entities. Although most of the Company’s investments will not be rated by any credit rating agency, in some cases, the credit risk of some of the Company’s Portfolio Investments may be broadly gauged by the credit ratings of such Portfolio Investments. However, ratings are only the opinions of the agencies issuing them, may change less quickly than relevant circumstances, are not absolute guarantees of the quality of the rated securities and are subject to downgrade. Credit ratings and ratings agencies have recently been criticized for ratings which did not fully reflect the risks of certain securities or which did not reflect such risks in a timely manner. For most investments, however, the Adviser will rely on its own independent analysis of the credit quality and risks associated with individual securities considered for the Company, rather than relying on ratings agencies or third-party research. Therefore, the Adviser’s capabilities in analyzing credit quality and associated risks will be particularly important (especially since it is currently anticipated that most of the Company’s assets will not be rated by a ratings agency or will be rated below investment grade), and there can be no assurance that the Adviser will be successful in this regard. See also “— High Yield Debt and Unrated Securities General Leverage Risks a recourse or non-recourse basis (including Leveraged Companies The use of leverage has the potential to magnify the gains or the losses on investments and to make the Company’s returns more volatile. Moreover, if the Company is required to de-lever as In connection with any leverage utilized by the Company, the Company may secure its obligations with respect thereto with any and all of its assets, including its right to receive capital contributions from the Unitholders, pursuant to a pledge or other security agreement on terms that the Company determines are fair and reasonable to the Company. If the Company were to default on its obligations under such transactions, the counterparty could foreclose on the collateral and take possession of the Company’s assets and/or call capital from the Unitholders for purposes of repaying debt. The terms of any leverage utilized by the Company are likely to impose significant restrictions on the Company’s operations and investment program, including as to the Company’s ability to pay distributions, incur additional leverage and engage in certain transactions. Investments in Smaller and Middle Market Companies Hedging Transactions and Related Risks Due Diligence Risk Interest Rate Risk The prices of long-term debt obligations generally fluctuate more than prices of short-term debt obligations as interest rates change. To the extent the Company invests in longer-term Portfolio Investments, it will be impacted to a greater degree by changes in market interest rates than if the Company invested primarily in short-term debt securities. To the extent the Company borrows money or issues preferred Units to make investments, its net investment income will depend, in part, upon the difference between the rate at which it borrows funds or pays distributions on preferred Units and the rate at which the Company invests those funds. As a result, the Company can offer no assurance that a significant change in market interest rates will not have a material adverse effect on its net investment income in the event the Company uses debt to finance investments. In periods of rising interest rates, such as the recent economic period, the Company’s cost of funds will increase because the interest rates on the amounts borrowed under the Company’s credit facilities or certain other financing arrangements will typically be floating, which could reduce the Company’s net investment income to the extent any Portfolio Investments have fixed interest rates, and the interest rate on Portfolio Investments with an interest rate floor (such as a SOFR (as defined below) floor) above then-current levels will not increase until interest rates exceed the applicable minimum interest rate floor. Rising interest rates may also increase the cost of debt for the Portfolio Investments, which could adversely impact the Portfolio Investment’s financial performance and ability to meet ongoing obligations to the Company. The Company expects that its long-term fixed-rate investments will be financed primarily with equity and long-term debt. The Company may use interest rate risk management techniques in an effort to limit its exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. These activities could limit the Company’s ability to participate in the benefits of lower interest rates with respect to the hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on the Company’s business, financial condition and results of operations. Also, an increase in interest rates available to investors could make an investment in the Company’s Units less attractive if the Company is not able to increase its distribution rate, which could reduce the value of the Company’s Units. Liquidity Risk time possess material, non-public information about Inflation/Deflation Risk Any disruptions in the capital markets, as a result of inflation and a rising interest environment or otherwise, may increase the spread between the yields realized on risk-free and higher risk securities and can result in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of Financial Fraud OFAC, FCPA and Related Considerations In some countries, there is a greater acceptance than in the U.S. of government involvement in commercial activities, and of corruption. The Company may be adversely affected because of its unwillingness to participate in transactions that violate such laws or regulations. Such laws and regulations may make it difficult in certain circumstances for the Company to act successfully on investment opportunities and for Portfolio Investments to obtain or retain business. In recent years, the U.S. Department of Justice and the SEC have devoted greater resources to enforcement of the U.S. Foreign Corrupt Practices Act (the “FCPA”). In addition, the United Kingdom has recently significantly expanded the reach of its anti-bribery laws. Violations of the FCPA or other applicable anti-corruption laws or anti-bribery laws could result in, among other things, civil and criminal penalties, material fines, profit disgorgement, injunctions on future conduct, securities litigation and a general loss of investor confidence, any one of which could adversely affect the Company’s ability to achieve its investment objective and/or conduct its operations. Risks Relating to Waivers or Deferrals of Covenants and Covenant-Lite Loans In addition, some of the loans in which the Company may invest may be “covenant-lite” loans. The Company uses the term “covenant-lite” loans to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. Accordingly, to the extent the Company invests in “covenant-lite” loans, the Company may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance covenants. General Risks Related to the Company Risk of Loss No Market for Units persons Management Risk and Reliance on Management The success of the Company is highly dependent upon the financial and managerial experience of the Adviser and any consultants or other Service Providers retained by the Company. The success of the Adviser is highly dependent on the financial and managerial experience of the investment professionals, who may not continue to be employed by or associated with the Adviser during the entire term of the Company. In addition investors in other investment vehicles advised by SLR and are actively involved in managing the investment decisions of these investment vehicles, as well as investment decisions of other clients of SLR. Accordingly, the members of the professional staff of the Adviser have demands on their time for the investment, monitoring and other functions of other funds and other clients advised by SLR. In addition, competition in the financial services, private equity and alternative asset management industries for qualified investment professionals is intense. The Adviser’s continued ability to effectively manage the Company’s investments depends on its ability to attract new investment professionals and to retain and motivate its existing investment professionals. Notwithstanding the foregoing, at any time during the Company’s term, the Adviser may assign the full and exclusive authority and responsibility granted to it under the Investment Management Agreement to an investment adviser under common control with the Adviser, subject to applicable law. The Adviser may take any actions that are necessary or incidental to any such assignment, including assigning the Investment Management Agreement or causing the Company to enter into a new Investment Management Agreement. Although it is expected that (x) any new investment adviser would be a registered investment adviser under the Advisers Act, (y) the management fee and incentive fee payable by the Company to such entities would be identical to that payable to the Adviser and (z) certain investment professionals would continue to be responsible for managing the Company’s assets, there is no guarantee that any or all of such characteristics will apply to any such new investment adviser. The Investment Committee may delegate non-investment decisions (including and similar non-material transactions transactions involving material non-public information and Referral Relationships with Financial Sponsors Recourse to the Company’s Assets bona fides Unspecified Use of Proceeds Identification of Potential Investment Opportunities Regulatory Risks Relating to the Company Competition; Potential for Insufficient Investment Opportunities Insufficient Capital for Follow-On Investments Company will make follow-on investments or not to make follow-on investments or the Concentration of Portfolio Investments investment types. Such non-diversification would make the Third-Party Involvement Leveraged Companies Portfolio Turnover depending No Assurance of Cash Distributions cash distributions or year-to-year increases in cash factors described in this annual report on Form 10-K. In certain cases, the Company may recognize income before or without receiving the accompanying cash. Depending on the amount of noncash income, this could re | ||||||
Effects of Leverage [Text Block] | Leverage The Company is required to comply with the asset coverage requirements of the 1940 Act. The Company expects to employ leverage and otherwise incur indebtedness with respect to the portfolio both on a recourse and non-recourse | ||||||
NAV Per Share | [1] | $ 21.47 | $ 21.77 | $ 21.41 | $ 0 | ||
Healthcare and Life Science Industries Related Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Healthcare and Life Science Industries’ Related Risks Also, obtaining government approval for new products from governmental agencies can be lengthy, expensive and uncertain, and withdrawal or curtailment of government support could have an adverse impact on the profitability or market price of healthcare and life sciences companies. Furthermore, delays in generating products (as well as more general ongoing capital requirements) may result in the need for companies to seek additional capital, potentially diluting the interest of existing investors, such as the Company (and indirectly, the Unitholders). | ||||||
Investments in Healthcare Companies [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Investments in Healthcare Companies | ||||||
Sector Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Sector Risk. | ||||||
Concentration Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Concentration Risk. While investment in multiple opportunities may provide some diversification of investment risk, no assurance can be given that such diversification will occur, or if it does, that it will not reduce, rather than increase, potential net profits. | ||||||
Risks Inherent in HealthcareRelated Assets [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Inherent in Healthcare-Related Assets. Companies in the healthcare sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of healthcare through outpatient services. Companies in the healthcare sector are heavily dependent on obtaining and defending patents, which may be time consuming and costly, and the expiration of patents may also adversely affect the profitability of these companies. Healthcare companies are also subject to extensive litigation based on product liability and similar claims. In addition, their products can become obsolete due to industry innovation, changes in technologies or other market developments. Many new products in the healthcare sector require significant research and development and may be subject to regulatory approvals, all of which may be time consuming and costly with no guarantee that any product will come to market. The Company’s assets will compete in a relatively uncertain political, economic, and regulatory environment, and instability or an overall decline within the healthcare sector will not be balanced by investments in industries not so affected. In addition, many healthcare companies may have substantial and ongoing capital needs for research and development, clinical trials and marketing and may have difficulty obtaining such funding under various market conditions or such capital may be obtained on terms that are not favorable to existing investors. | ||||||
Regulations of Healthcare Industry [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Regulations of Healthcare Industry. Federal and state governments have intensified enforcement policies, resulting in a significant increase in the number of inspections, citations of regulatory deficiencies and other regulatory sanctions, including terminations from the Medicare and Medicaid programs, bans on Medicare and Medicaid payments for new admissions, civil monetary penalties and even criminal penalties. The Company’s investments could be forced to expend considerable resources on responding to an investigation or other enforcement action under applicable laws or regulations, The Company is unable to predict the future course of federal, state and local regulation or legislation, including the Medicare and Medicaid statutes and regulations. Changes in regulatory framework could have a material adverse effect on the Company’s Portfolio Investments and the Company. | ||||||
Prepayment Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Prepayment Risk either | ||||||
Investment Modification Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Investment Modification Risk | ||||||
Collateral Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Collateral Risk | ||||||
General Economic and Market Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | General Economic and Market Risk Various social and political circumstances in the U.S. and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics) may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Such events, including rising trade tensions between the United States and China, other uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic and other policies with other countries, the large-scale invasion of Ukraine by Russia that began in February 2022 and resulting sanctions or other restrictive actions that the United States and other countries have imposed against Russia, the COVID-19 pandemic, Additionally, the Federal Reserve raised the Federal Funds Rate in 2022 and in 2023. Although the Federal Reserve left its benchmark rates steady in the fourth quarter of 2023, it has indicated that additional rate increases in the future may be necessary to mitigate inflationary pressures and there can be no assurance that the Federal Reserve will not make upward adjustments to the federal funds rate in 2024. However, there are reports that the Federal Reserve may begin to cut the benchmark rates. These developments, along with the United States government’s credit and deficit concerns, global economic uncertainties and market volatility and the impacts of COVID-19, could Continuing market uncertainty may have a significant impact on the business of the Company. Among other things, the level of investment opportunities may decline from the Adviser’s current expectations. One possible consequence is that the Company may take a longer than anticipated period to invest capital and/or the Company may be relatively concentrated in a limited number of investments. Consequently, during this period, the returns (if any) realized by Unitholders may be substantially adversely affected by the unfavorable performance of a small number of these investments. Furthermore, market conditions may unfavorably impact the Company’s ability to secure leverage on terms as favorable as more established borrowers in the market, or to obtain any leverage on commercially favorable terms. To the extent the Company is able to secure financing for investments, increases in interest rates or in the risk spread demanded by financing sources would make the use of leverage more expensive and could limit the Company’s ability to structure and consummate its investments. Although the Adviser believes that recent market dislocations will result in attractive investment opportunities, the Company may not be able to time the acquisition or disposition of its investments correctly, which could result in further depreciation in values. | ||||||
Public Health Crises Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Public Health Crises Risk example, the COVID-19 pandemic COVID-19 the re-introduction the COVID-19 including COVID-19 Despite actions of the U.S. federal government and foreign governments, the uncertainty surrounding the COVID-19 | ||||||
General Credit Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | General Credit Risk i.e. e.g. subordination, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. The degree of credit risk associated with any particular Portfolio Investment or any collateral relating thereto may be difficult or impossible for the Adviser to determine within reasonable standards of predictability. The Adviser utilizes various third parties that hold Company assets (such as the Custodian and prime brokers) in implementing the Company’s investment strategy, and the Company will therefore also be subject to credit risk with respect to such entities. Although most of the Company’s investments will not be rated by any credit rating agency, in some cases, the credit risk of some of the Company’s Portfolio Investments may be broadly gauged by the credit ratings of such Portfolio Investments. However, ratings are only the opinions of the agencies issuing them, may change less quickly than relevant circumstances, are not absolute guarantees of the quality of the rated securities and are subject to downgrade. Credit ratings and ratings agencies have recently been criticized for ratings which did not fully reflect the risks of certain securities or which did not reflect such risks in a timely manner. For most investments, however, the Adviser will rely on its own independent analysis of the credit quality and risks associated with individual securities considered for the Company, rather than relying on ratings agencies or third-party research. Therefore, the Adviser’s capabilities in analyzing credit quality and associated risks will be particularly important (especially since it is currently anticipated that most of the Company’s assets will not be rated by a ratings agency or will be rated below investment grade), and there can be no assurance that the Adviser will be successful in this regard. See also “— High Yield Debt and Unrated Securities | ||||||
General Leverage Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | General Leverage Risks a recourse or non-recourse basis (including Leveraged Companies The use of leverage has the potential to magnify the gains or the losses on investments and to make the Company’s returns more volatile. Moreover, if the Company is required to de-lever as In connection with any leverage utilized by the Company, the Company may secure its obligations with respect thereto with any and all of its assets, including its right to receive capital contributions from the Unitholders, pursuant to a pledge or other security agreement on terms that the Company determines are fair and reasonable to the Company. If the Company were to default on its obligations under such transactions, the counterparty could foreclose on the collateral and take possession of the Company’s assets and/or call capital from the Unitholders for purposes of repaying debt. The terms of any leverage utilized by the Company are likely to impose significant restrictions on the Company’s operations and investment program, including as to the Company’s ability to pay distributions, incur additional leverage and engage in certain transactions. | ||||||
Hedging Transactions and Related Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Hedging Transactions and Related Risks | ||||||
Due Diligence Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Due Diligence Risk | ||||||
Interest Rate Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Interest Rate Risk The prices of long-term debt obligations generally fluctuate more than prices of short-term debt obligations as interest rates change. To the extent the Company invests in longer-term Portfolio Investments, it will be impacted to a greater degree by changes in market interest rates than if the Company invested primarily in short-term debt securities. To the extent the Company borrows money or issues preferred Units to make investments, its net investment income will depend, in part, upon the difference between the rate at which it borrows funds or pays distributions on preferred Units and the rate at which the Company invests those funds. As a result, the Company can offer no assurance that a significant change in market interest rates will not have a material adverse effect on its net investment income in the event the Company uses debt to finance investments. In periods of rising interest rates, such as the recent economic period, the Company’s cost of funds will increase because the interest rates on the amounts borrowed under the Company’s credit facilities or certain other financing arrangements will typically be floating, which could reduce the Company’s net investment income to the extent any Portfolio Investments have fixed interest rates, and the interest rate on Portfolio Investments with an interest rate floor (such as a SOFR (as defined below) floor) above then-current levels will not increase until interest rates exceed the applicable minimum interest rate floor. Rising interest rates may also increase the cost of debt for the Portfolio Investments, which could adversely impact the Portfolio Investment’s financial performance and ability to meet ongoing obligations to the Company. The Company expects that its long-term fixed-rate investments will be financed primarily with equity and long-term debt. The Company may use interest rate risk management techniques in an effort to limit its exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. These activities could limit the Company’s ability to participate in the benefits of lower interest rates with respect to the hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on the Company’s business, financial condition and results of operations. Also, an increase in interest rates available to investors could make an investment in the Company’s Units less attractive if the Company is not able to increase its distribution rate, which could reduce the value of the Company’s Units. | ||||||
Liquidity Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Liquidity Risk time possess material, non-public information about | ||||||
InflationDeflation Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Inflation/Deflation Risk Any disruptions in the capital markets, as a result of inflation and a rising interest environment or otherwise, may increase the spread between the yields realized on risk-free and higher risk securities and can result in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of | ||||||
Management Risk and Reliance on Management [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Management Risk and Reliance on Management The success of the Company is highly dependent upon the financial and managerial experience of the Adviser and any consultants or other Service Providers retained by the Company. The success of the Adviser is highly dependent on the financial and managerial experience of the investment professionals, who may not continue to be employed by or associated with the Adviser during the entire term of the Company. In addition investors in other investment vehicles advised by SLR and are actively involved in managing the investment decisions of these investment vehicles, as well as investment decisions of other clients of SLR. Accordingly, the members of the professional staff of the Adviser have demands on their time for the investment, monitoring and other functions of other funds and other clients advised by SLR. In addition, competition in the financial services, private equity and alternative asset management industries for qualified investment professionals is intense. The Adviser’s continued ability to effectively manage the Company’s investments depends on its ability to attract new investment professionals and to retain and motivate its existing investment professionals. Notwithstanding the foregoing, at any time during the Company’s term, the Adviser may assign the full and exclusive authority and responsibility granted to it under the Investment Management Agreement to an investment adviser under common control with the Adviser, subject to applicable law. The Adviser may take any actions that are necessary or incidental to any such assignment, including assigning the Investment Management Agreement or causing the Company to enter into a new Investment Management Agreement. Although it is expected that (x) any new investment adviser would be a registered investment adviser under the Advisers Act, (y) the management fee and incentive fee payable by the Company to such entities would be identical to that payable to the Adviser and (z) certain investment professionals would continue to be responsible for managing the Company’s assets, there is no guarantee that any or all of such characteristics will apply to any such new investment adviser. The Investment Committee may delegate non-investment decisions (including and similar non-material transactions transactions involving material non-public information and | ||||||
Model Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Model Risks | ||||||
Risks Related to Electronic CommunicationsCybersecurity Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to Electronic Communications/Cybersecurity Risk as e-mail or The Company relies on the Adviser’s enterprise-wide cybersecurity program, to protect its information, including due oversight of the cybersecurity programs of the Company’s key Service Providers and processes for the assessment, identification, and management of material risks from cybersecurity threats, including those associated with the use of third-party Service Providers. While the Adviser employs various measures to address cybersecurity-related issues, the Adviser, the Administrative Coordinator, the Company and their respective Service Providers may nevertheless be subject to operational and information security risks resulting from cybersecurity incidents. A cybersecurity incident refers to both intentional and unintentional events that may cause the Adviser, the Company or their respective Service Providers to lose or compromise confidential information, suffer data corruption or lose operational capacity. Cybersecurity incidents include stealing or corrupting data maintained online or digitally, denial of service attacks on websites, the unauthorized release of confidential information or various other operational disruptions. If unauthorized parties gain access to such information and technology systems, they may be able to steal, publish, delete or modify private and sensitive information, including nonpublic personal information related to Unitholders (and their beneficial owners) and material nonpublic information. The systems the Adviser has implemented to manage risks relating to these types of events could prove to be inadequate and, if compromised, could become inoperable for extended periods of time, cease to function properly or fail to adequately secure private information. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or other espionage may not be identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing them from being addressed appropriately. The failure of these systems or of disaster recovery plans for any reason could cause significant interruptions in the Company’s and the Adviser’s operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to Unitholders, material nonpublic information and other sensitive information in the Adviser’s possession. A disaster or a disruption in the infrastructure that supports the Adviser’s business, including a disruption involving Electronic Communications or other services used by the Adviser or third parties with whom the Adviser conducts business, or directly affecting the Adviser’s headquarters, could have a material adverse impact on the Adviser’s ability to continue to operate its business without interruption and to protect the Company, insofar as is practicable, from the hazards of cybersecurity threats and vulnerabilities in accordance with applicable legal requirements and guidance. The Adviser’s disaster recovery programs may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse the Adviser for its losses, if at all. Although the Company is not currently aware of any cyber-attacks or other incidents that, individually or in the aggregate, have materially affected, or would reasonably be expected to materially affect, its operations or financial condition, there has been an increase in the frequency and sophistication of the cyber and security threats faced in the marketplace. Cyber-attacks and other security threats could originate from a wide variety of sources, including cyber criminals, nation state hackers, hacktivists and other outside or inside parties. The Company may be a target for attacks because, as a specialty finance company, it holds confidential and other sensitive information, including price information, about existing and potential investments. Further, the Company is dependent on third-party vendors for hosting hardware, software and data processing systems that it does not control. The Company also relies on third-party Service Providers for certain aspects of its business, including for certain information systems, technology and administration of its Portfolio Investments and compliance matters. While the Company relies on the cybersecurity strategy and policies implemented by the Adviser, its reliance on the Adviser and third-party Service Providers removes certain cybersecurity functions from outside of the Company’s immediate control, and cyber-attacks on the Adviser, on the Company or on third-party Service Providers could adversely affect the Company, its business, and its reputation. The costs related to cyber-attacks or other security threats or disruptions may not be fully insured or indemnified by others, including by the Company’s As the Company’s reliance on computer hardware and software systems, data processing systems, and other technology has increased, so have the risks posed to such systems, both those the Adviser controls and those provided by third-party vendors. Cyber-attacks may originate from a wide variety of sources, and while the Adviser has implemented processes, procedures, and internal controls designed to mitigate cybersecurity risks and cyber-attacks, these measures do not guarantee that a cyber-attack will not occur or that the Company’s financial results, operations, or confidential information, personal, or other sensitive information will not be negatively impacted by such an incident, especially because the techniques of threat actors change frequently and are often not recognized until launched. The Adviser relies on industry accepted security measures and technology to securely maintain confidential and proprietary information maintained on its information systems, as well as on policies and procedures to protect against the unauthorized or unlawful disclosure of confidential, personal, or other sensitive information. Although the Adviser takes protective measures and endeavors to strengthen its computer systems, software, technology assets, and networks to prevent and address potential cyber-attacks, there can be no assurance that any of these measures prove effective. The Adviser expects to be required to devote increasing levels of funding and resources, which may in part be allocated to the Company, to comply with evolving cybersecurity and privacy laws and regulations and to continually monitor and enhance its cybersecurity procedures and controls. In addition, the Company, the Adviser, the Administrative Coordinator, or their employees, if any, may also be the target of fraudulent emails or other targeted attempts to gain unauthorized access to confidential, personal, or other sensitive information. The result of any cyber-attack or other security incidents may include disrupted operations, misstated or unreliable financial data, fraudulent transfers or requests for transfers of money, liability for stolen information (including personal information), investigations, misappropriation of assets, increased cybersecurity protection and insurance costs, litigation and damage to the Company’s business relationships, regulatory fines or penalties, or other adverse effects on its business, financial condition or results of operations. The Adviser may be required to expend significant additional resources to modify its protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks related to cyber-attacks. The rapid evolution and increasing prevalence of artificial intelligence technologies may also increase cybersecurity risks. In addition, cybersecurity has become a top priority for global lawmakers and regulators around the world, and some jurisdictions have proposed or enacted laws requiring companies to notify regulators and individuals of data security breaches involving certain types of personal data. In particular, state and federal laws and regulations related to cybersecurity compliance continue to evolve and change, which may require substantial investments in new technology, software and personnel, which could affect the Company’s profitability. These changes may also result in enhanced and unforeseen consequences for cyber- related breaches and incidents, which may further adversely affect the Company’s profitability. If the Adviser fails to comply with the relevant and increasing laws and regulations, the Adviser could suffer financial losses, a disruption of its businesses, liability to investors, regulatory intervention or reputational damage. Policies of remote working, whether by the Adviser, the Administrative Coordinator, the Company or by their respective Service Providers, could strain technology resources, introduce operational risks and otherwise heighten the risks described above. Remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts. Cybersecurity risks are exacerbated by the rapidly increasing volume of highly sensitive data, including the Company’s proprietary business information, personal information of the Adviser’s employees, the Company’s investors and others, and other sensitive information that the Adviser collects, processes, and stores in its data centers and on its networks or those of third-party Service Providers. The secure processing, maintenance, and transmission of this information are critical to the Company’s operations. There is a risk that encryption and other protective measures against cyber-attacks may be circumvented, particularly to the extent that new computing technologies increase the speed and computing power available. Even the most well-protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected. A significant actual or potential theft, loss, corruption, exposure, fraudulent use or misuse of investor or other personal information, proprietary business data or other sensitive information, whether by third parties or as a result of malfeasance by the Adviser’s employees or otherwise, non-compliance Cybersecurity incidents may adversely impact the Company and its Unitholders. There is no guarantee that the Company, the Adviser, and/or their respective Service Providers will be successful in protecting against cybersecurity incidents. | ||||||
Technological Innovation Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Technological Innovation Risks | ||||||
Corporate Social Responsibility Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Corporate Social Responsibility Risks The Company risks damage to its brand and reputation if it fails to act responsibly in a number of areas, including, but not limited to, diversity, equity and inclusion, human rights, climate change, environmental stewardship, support for local communities, corporate governance, transparency and consideration of ESG factors in the Company’s investment processes. Adverse incidents with respect to ESG activities could impact the value of the Company’s brand, its relationship with existing and future Portfolio Investments, the cost of the Company’s operations and relationships with investors, all of which could adversely affect its business and results of operations. However, regional and investor specific sentiment may differ in what constitutes a material positive or negative ESG corporate practice. There is no guarantee that the Company’s ESG and sustainability practices will uniformly fit every investor’s definition of best practices for all environmental, social and governance considerations across geographies and investor types. If we do not successfully manage expectations across varied stakeholder interests, it could erode stakeholder trust, impact our reputation and constrain our investment opportunities. There is also a growing regulatory interest across jurisdictions in improving transparency regarding the definition, measurement and disclosure of ESG factors in order to allow investors to validate and better understand sustainability claims. For example, the SEC has proposed, or has announced that it is working on proposals for, rules that, among other matters, would establish a framework for reporting of climate-related risks, corporate and fund carbon emissions, broad diversity and capital management. At this time, there is uncertainty regarding the scope of such proposals or when they would become effective (if at all). In 2021, the SEC established an enforcement task force to look into ESG practices and disclosures by public companies and investment managers and has started to bring enforcement actions based on ESG disclosures not matching actual investment processes. Further, in 2022 the SEC issued a proposed rule regarding the enhancement and standardization of mandatory climate-related disclosures for investors that would mandate extensive disclosure of climate-related data, risks and opportunities for certain public companies. The Company and its Portfolio Investments are subject to the risk that similar measures might be introduced in other jurisdictions in the future. Additionally, compliance with any new laws or regulations increases the Company’s regulatory burden and could make compliance more difficult and expensive, affect the manner in which the Company or its Portfolio Investments conduct its businesses and adversely affect the Company’s profitability. | ||||||
Climate Change Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Climate Change Risks any changes. Increases in the cost of energy could adversely affect the cost of operations of the Company’s Portfolio Investments if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of the Company’s Portfolio Investments’ financial condition, through decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions. Energy companies could also be affected by the potential for lawsuits against or taxes or other regulatory costs imposed on greenhouse gas emitters, based on links drawn between greenhouse gas emissions and climate change. In December 2015 the United Nations, of which the U.S. is a member, adopted a climate accord with the long-term goal of limiting global warming and the short-term goal of significantly reducing greenhouse gas emissions. As a result, some of the Company’s Portfolio Investments may become subject to new or strengthened regulations or legislation, which could increase their operating costs and/or decrease their revenues. | ||||||
Senior Secured Loans [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Senior Secured Loans e.g. | ||||||
Subordinated Loans [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Subordinated Loans —Senior Secured Loans | ||||||
Mezzanine Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Mezzanine Securities their relatively high debt-to-equity ratios create | ||||||
Unsecured Loans or Debt [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Unsecured Loans or Debt | ||||||
Defaults [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Defaults after acquisition, non-performing loans. In the event of any default under a loan directly held by the Company or a loan underlying a security held by the Company, the Company will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the loan, which could have a material adverse effect on the Company’s cash flow from operations. Other non-performing loans may bankruptcy trustee or debtor-in-possession to the | ||||||
Litigation and Related Risks Associated with Origination and Servicing [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Litigation and Related Risks Associated with Origination and Servicing | ||||||
Ability to Originate Loans on Advantageous Terms Competition and Supply [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Ability to Originate Loans on Advantageous Terms; Competition and Supply process, and to co-investors and/or third syndication is not successful, the Company may elect to sell all or a portion of an originated investment at a loss in order to rebalance the Company’s portfolio. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies, particularly companies experiencing significant business and financial difficulties is unusually high. There is no assurance that the Adviser will correctly evaluate the value of the assets collateralizing the Company loans, the prospects for successful repayment or a successful reorganization or similar action. | ||||||
Risks Relating to Bank Loans and Corporate Loans [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Relating to Bank Loans and Corporate Loans Investments in Smaller and Middle Market Companies Holders of bank loans, corporate loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate or other borrower for payment of principal and interest. If the Company does not receive scheduled interest or principal payments on such indebtedness, the value of the Company’s investments could be adversely affected. The Company may invest in secured and unsecured bank loans and corporate loans. Bank loans and corporate loans that are fully secured may offer the Company more protection than an unsecured loan in the event of non-payment of scheduled Bank loans usually require, in addition to scheduled payments of interest and principal, the prepayment of the bank loan from free cash flow. The degree to which borrowers prepay bank loans, whether as a contractual requirement or at their election, may be affected by general business conditions, the financial condition of the borrower and competitive conditions among lenders, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which the Company derives interest income will be reduced. The effect of prepayments on the Company’s performance may or may not be mitigated by the receipt of prepayment fees and/or the Company’s reinvestment of prepayments in other bank loans that have similar or identical yields. The Company may purchase “assignments” of bank loans from lenders. The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. The Company may also invest in “participations” in bank loans. Participations by the Company in a lender’s portion of a bank loan typically will result in the Company having a contractual relationship only with such lender, not with the borrower. As a result, the Company may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of such payments from the borrower. In connection with purchasing participations, the Company generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights with respect to any funds acquired by other lenders through set-off against the In many cases bank loans and loan participations would not be deemed to be securities for purposes of U.S. federal and/or state securities laws. As a result, an investment in bank loans would not be afforded the same protections as an investment in securities, such as the extensive disclosure requirements under U.S. federal and/or state securities laws, which may adversely impact the Company’s ability to seek recourse in respect of such investments. Similarly, the documentation evidencing bank loans and loan participations will not necessarily be maintained with the Company’s custodian. | ||||||
Investments in Smaller and Middle Market Companies [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Investments in Smaller and Middle Market Companies | ||||||
Financial Fraud [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Financial Fraud | ||||||
OFAC, FCPA and Related Considerations [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | OFAC, FCPA and Related Considerations In some countries, there is a greater acceptance than in the U.S. of government involvement in commercial activities, and of corruption. The Company may be adversely affected because of its unwillingness to participate in transactions that violate such laws or regulations. Such laws and regulations may make it difficult in certain circumstances for the Company to act successfully on investment opportunities and for Portfolio Investments to obtain or retain business. In recent years, the U.S. Department of Justice and the SEC have devoted greater resources to enforcement of the U.S. Foreign Corrupt Practices Act (the “FCPA”). In addition, the United Kingdom has recently significantly expanded the reach of its anti-bribery laws. Violations of the FCPA or other applicable anti-corruption laws or anti-bribery laws could result in, among other things, civil and criminal penalties, material fines, profit disgorgement, injunctions on future conduct, securities litigation and a general loss of investor confidence, any one of which could adversely affect the Company’s ability to achieve its investment objective and/or conduct its operations. | ||||||
Risks Relating to Waivers or Deferrals of Covenants and CovenantLite Loans [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Relating to Waivers or Deferrals of Covenants and Covenant-Lite Loans In addition, some of the loans in which the Company may invest may be “covenant-lite” loans. The Company uses the term “covenant-lite” loans to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. Accordingly, to the extent the Company invests in “covenant-lite” loans, the Company may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance covenants. | ||||||
Risk of Loss [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risk of Loss | ||||||
Referral Relationships with Financial Sponsors [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Referral Relationships with Financial Sponsors | ||||||
Recourse to the Companys Assets [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Recourse to the Company’s Assets bona fides | ||||||
Unspecified Use of Proceeds [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Unspecified Use of Proceeds | ||||||
Identification of Potential Investment Opportunities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Identification of Potential Investment Opportunities Regulatory Risks Relating to the Company | ||||||
Competition Potential for Insufficient Investment Opportunities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Competition; Potential for Insufficient Investment Opportunities | ||||||
Insufficient Capital for FollowOn Investments [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Insufficient Capital for Follow-On Investments Company will make follow-on investments or not to make follow-on investments or the | ||||||
Concentration of Portfolio Investments [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Concentration of Portfolio Investments investment types. Such non-diversification would make the | ||||||
ThirdParty Involvement [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Third-Party Involvement | ||||||
Leveraged Companies [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Leveraged Companies | ||||||
Portfolio Turnover [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Portfolio Turnover depending | ||||||
U.S. Dollar Denomination of Units [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | U.S. Dollar Denomination of Units to investments in non-U.S. currencies in certain | ||||||
Projections [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Projections | ||||||
Valuation of Illiquid Assets [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Valuation of Illiquid Assets Rule 2a-5 under Rule 2a-5. There can be no assurance that such valuations will be reliable, accurate or reflective of the prices at which such investments are ultimately realized. In addition, certain of the securities or other assets that the Company seeks to sell or acquire via cross trade may be illiquid and difficult to value, therefore there can be no assurance that such valuation will be accurate. | ||||||
Regulatory Investigations or ThirdParty Litigation [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Regulatory Investigations or Third-Party Litigation The Company’s investment activities may subject it to the risks and costs of becoming involved in litigation with third parties due to, among other reasons, the fact that different investor groups may have qualitatively different, and frequently conflicting, interests with respect to certain Portfolio Investments. The risk of litigation with third parties will be elevated in situations where an issuer is stressed or distressed. See “— Litigation and Related Risks Associated with Origination and Servicing paying Risks Associated with Bankruptcy and Insolvency Cases | ||||||
Broad Indemnification [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Broad Indemnification The Company is required to indemnify the Adviser and its respective affiliates, each of the former, current and future shareholders, partners, members, other equity holders, officers, directors, employees, managers, trustees, agents and other representatives of the Adviser and its respective affiliates, and other persons set forth in the LLC Agreement as an “Indemnitee” for Claims (as defined in the LLC Agreement) that may accrue to or be incurred by an Indemnitee, in connection with any claim, demand, investigation, suit, proceeding or action in which an Indemnitee may become involved, as a party or otherwise, or with which an Indemnitee may be threatened, relating to or arising out of the investments or other activities of the Company, activities undertaken in connection with the Company, or otherwise relating to or arising out of the LLC Agreement or the Subscription Agreement, and otherwise as provided in the LLC Agreement or the Subscription Agreement. Such Claims may be material and have an adverse effect on the returns to the Unitholders. The Company may also provide broad indemnities, representations, warranties and covenants in connection with the acquisition, management and disposition of Portfolio Investments or otherwise in connection with the Company’s investment program. Any indemnification obligations of the Company would be payable from the assets of the Company, including the unfunded Commitments of the Unitholders, and would adversely affect the Company’s returns. | ||||||
Distributions in Kind [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Distributions in Kind assurance | ||||||
Failure to Qualify as a RIC [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Failure to Qualify as a RIC source-of-income, asset The income source requirement will be satisfied if the Company obtains at least 90% of gross income for each year from dividends, interest, foreign currency, payments with respect to loans of certain securities, gains from the sale of Units or other securities, net income from certain “qualifiedpublicly traded partnerships,” or similar sources. The asset diversification requirement will be satisfied if the Company meets certain asset diversification requirements at the end of each quarter of the taxable year. Failure to meet those requirements may result in the Company having to dispose of certain investments quickly in order to prevent the loss of qualification as a RIC. Because most of the Company’s investments will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. The annual distribution requirement will be satisfied if the Company distributes to its Unitholders on an annual basis at least 90% of net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Because the Company may use debt financing, it is subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict the Company from making distributions necessary to satisfy the distribution requirement. If the Company is unable to obtain cash from other sources, it could fail to qualify as a RIC. If the Company fails to qualify as a RIC for any reason and therefore becomes subject to corporate income tax, the resulting corporate taxes could substantially reduce net assets, the amount of income available for distribution and the amount of distributions. | ||||||
Recognizing Income Before or Without Receiving Cash [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Recognizing Income Before or Without Receiving Cash through contracted payment-in-kind (“PIK”) interest, Since in certain cases the Company may recognize income before or without receiving cash representing such income, the Company may have difficulty meeting the requirement to timely distribute at least 90% of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to maintain its qualification as a RIC. In such a case, the Company may have to sell some of its Portfolio Investments at times the Company would not consider advantageous or raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If the Company is not able to obtain cash from other sources and is otherwise unable to satisfy such distribution requirement, the Company may fail to maintain its qualification as a RIC and become subject to corporate-level U.S. federal income tax. | ||||||
Tax Considerations Regarding Dividends for Private BDCs [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Tax Considerations Regarding Dividends for Private BDCs a non-corporate Unitholder’s A non-corporate Unitholder’s | ||||||
Potential Dividend Deferrals [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Potential Dividend Deferrals the one-year period Under the Code, the Company may pay certain RIC dividends after the end of the current year. In particular, if the Company pays a distribution in January of the following year that was declared in October, November, or December of the current year and is payable to Unitholders of record in the current year, the dividend will be treated for all U.S. federal income tax purposes as if it were paid on December 31 of the current year. In addition, under the Code, the Company may pay dividends, referred to as “spillover dividends,” that are paid during the following taxable year that will allow the Company to maintain its qualification for taxation as a RIC and eliminate its liability for corporate-level U.S. federal income tax. Under these spillover dividend procedures, the Company may defer distributions of income earned during the current year until December of the following year. For example, the Company may defer distributions of income earned during 2024 until as late as December 31, 2025. If the Company chooses to pay a spillover dividend, it will incur the 4% U.S. federal excise tax on some or all of the distribution. Due to events such as the COVID-19 pandemic, In-Kind Dividend Considerations | ||||||
InKind Dividend Considerations [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | In-Kind Dividend Considerations to non-U.S. Unitholders. | ||||||
Changes in Tax Law [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Changes in Tax Law | ||||||
Permissible Incurred Leverage [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Permissible Incurred Leverage | ||||||
Distribution and Asset Coverage Ratio Requirements [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Distribution and Asset Coverage Ratio Requirements amounts To the extent the Company is constrained in its ability to issue debt or other senior securities, it will depend on issuances of capital interests to finance operations. As a BDC, the Company is generally not able to issue Units at a price below NAV without first obtaining required approvals of Unitholders and independent directors in accordance with the conditions set forth in Section 63(2) of the 1940 Act. If the Company raises additional funds by issuing more common Units or senior securities convertible into, or exchangeable for, common Units, the percentage ownership of Unitholders at that time would decrease and Unitholders may experience dilution. In addition to issuing securities to raise capital as described above, the Company could, in the future, securitize loans to generate cash for funding new investments. An inability to successfully securitize its loan portfolio could limit the Company’s ability to grow its business, fully execute its business strategy and improve profitability. | ||||||
Unrealized Depreciation [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Unrealized Depreciation | ||||||
Qualifying Asset Requirements [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Qualifying Asset Requirements sell non-qualifying investments | ||||||
Exemptive Relief [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Exemptive Relief ability to co-invest in privately in negotiated co-investment transactions with | ||||||
Risks Related to Changes in Regulatory Policy [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to Changes in Regulatory Policy difficult-to-quantify far-reaching | ||||||
Financial Services and Government Intervention [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Financial Services and Government Intervention | ||||||
U.S. DoddFrank Wall Street Reform and Consumer Protection Act [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act financial services industry, non-U.S. financial entities | ||||||
Changes to Derivatives Regulation [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Changes to Derivatives Regulation e.g. (“MIFID II”)), certain over-the-counter derivatives transactions pre-and requirements and mandatory bi-lateral exchange of initial margin for non-cleared swaps. The Dodd-Frank Act also created new categories of regulated market participants, such as “swap dealers,” “security-based swap dealers,” “major swap participants,” and “major security-based swap participants” who are subject to significant new capital, registration, recordkeeping, reporting, disclosure, business conduct and other regulatory requirements. The EU and some other jurisdictions are implementing similar requirements. Because these requirements are new and evolving (and some of the rules are not yet final), their ultimate impact remains unclear. However, even if the Company itself is not located in a particular jurisdiction or directly subject to the jurisdiction’s derivatives regulations, the Company may still be impacted to the extent the Company enters into a derivatives transaction with a regulated market participant or counterparty that is organized in that jurisdiction or otherwise subject to that jurisdiction’s derivatives regulations. Based on information available as of the date of this annual report on Form 10-K, the In November 2020, the SEC adopted new rules regarding the ability of a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or delivery obligations. BDCs that use derivatives will be subject to a value-at-risk | ||||||
Uncertainty of the U.S. Political Climate [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Uncertainty of the U.S. Political Climate and difficult-to-quantify potentially far-reaching “ Bad Actor” Restrictions for Private Placements Conducted Under Rule 506 of Regulation D persons, (d) SEC cease-and-desist orders relating A disqualification will occur only in the case of a disqualifying event of a covered person that occurs on or after September 23, 2013, although issuers must disclose to potential investors in a Rule 506 Offering disqualifying events of covered persons that occurred before September 23, 2013. The rule provides an exception from disqualification if the issuer can show that it did not know and, in the exercise of reasonable care could not have known, that the issuer or any other covered person had a disqualifying event, although an issuer will not be able to establish that it has exercised reasonable care unless it has made, in light of the circumstances, factual inquiry into whether any disqualifications exist. The Adviser has made, and on a periodic basis will continue to make, inquiries into whether any persons that the Adviser has determined to be affiliated issuers have been subject to any disqualifying events; however, in some circumstances the Adviser’s ability to determine whether the Company would be disqualified from relying on Rule 506 may depend on cooperation of third parties over whom the Company may have limited control and influence. If any of the Adviser’s covered persons, including any affiliated issuer of the Company, is subject to a disqualifying event, the Company could lose the ability to raise capital in a future Rule 506 offering for a significant period of time and the Company’s business, financial condition and results of operations could be materially and adversely affected. | ||||||
Changes to Accounting Standards [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Changes to Accounting Standards | ||||||
Licensing Requirements [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Licensing Requirements | ||||||
Reporting Company Filing Requirements [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Reporting Company Filing Requirements The systems and resources necessary to comply with public company reporting requirements will increase further once the Company ceases to be an “emerging growth company” under the JOBS Act. As long as the Company remains an emerging growth company, it intends to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. The Company will remain an emerging growth company for up to five years following any future IPO (however, the Company does not anticipate engaging in an IPO of its Units), although if the market value of the Units that are held by non-affiliates Additionally, because the Units are registered under the 1934 Act, ownership information for any person who beneficially owns 5% or more of the Units will have to be disclosed in a Schedule 13G or other filings with the SEC. Beneficial ownership for these purposes is determined in accordance with the rules of the SEC, and includes having voting or investment power over the securities. In some circumstances, Unitholders who choose to reinvest their dividends may see their percentage stake in the Company increased to more than 5%, thus triggering this filing requirement. Each Unitholder is responsible for determining their filing obligations and preparing the filings. In addition, Unitholders who hold more than 10% of a class of Units may be subject to Section 16(b) of the 1934 Act, which recaptures for the benefit of the Company profits from the purchase and sale of registered Units within a six-month period. | ||||||
Documentation of Internal Controls [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Documentation of Internal Controls reporting do not currently meet all of the standards contemplated by Section 404 that they will eventually be required to meet. Specifically, the Company is required to conduct annual management assessments of the effectiveness of its internal controls over financial reporting. However, the Company’s independent registered public accounting firm is not required to formally attest to the effectiveness of its internal control over financial reporting until the date it is no longer an emerging growth company under the JOBS Act. The Company’s internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud. Even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If the Company fails to maintain the adequacy of its internal controls, including any failure to implement required new or improved controls, or if the Company experiences difficulties in their implementation, the Company’s business and operating results could be harmed and it could fail to meet its financial reporting obligations. | ||||||
High Yield Debt and Unrated Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | High Yield Debt and Unrated Securities As with other Portfolio Investments, there may not be a liquid market for certain high yield debt which is held by the Company, which could result in the Company being unable to sell such securities for an extended period of time, if at all. In addition, as with other types of Portfolio Investments, the market for high yield debt has historically been subject to disruptions that have caused substantial volatility in the prices of such securities. Consolidation in the financial services industry has resulted in there being fewer market makers for high yield debt, which may result in further risk of illiquidity and volatility with respect to high yield debt held by the Company, and this trend may continue in the future. Furthermore, high yield debt which is held by the Company may not be registered under the Securities Act, and, unless so registered, the Company is not able to sell such high yield debt except pursuant to an exemption from registration under the Securities Act. Unrated securities may be less liquid than comparable rated securities and may also involve the risk that the Adviser may not accurately evaluate the security’s comparative credit rating. Analysis of creditworthiness of issuers of high yield and unrated securities may be more complex than for issuers of higher-quality fixed income securities. Since it is expected that most of the Company’s assets will not be rated by any rating agency or will be rated below investment grade, the Company is more dependent on the Adviser’s creditworthiness analysis than if the Company invested exclusively in higher-quality and rated securities. Securities rated below investment grade are often referred to as “leveraged loans,” “high yield” or “junk” securities, and may be considered “high risk” compared to debt instruments that are rated investment grade. See “— General Credit Risk | ||||||
EquityRelated Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Equity-Related Securities often | ||||||
Convertible Securities Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Convertible Securities Risk non-convertible convertible securities would be paid before the company’s common stockholders but after holders of any senior debt obligations of the company. Consequently, the issuer’s convertible securities generally entail less risk than its common stock but more risk than its debt obligations. There is also a risk that, under certain circumstances, a bankruptcy court may order that convertible securities are treated as equity. The Company may invest in synthetic convertible securities, which are created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, i.e. non-convertible, | ||||||
Preferred Securities Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Preferred Securities Risk | ||||||
Forwards and Derivatives Transactions [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Forwards and Derivatives Transactions derivative agreements or other over-the-counter contracts. The market conditions All derivatives transactions involve risks different from, and potentially greater than, the risks associated with investing directly in securities and other more traditional assets, including: | ||||||
Market Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Market Risk | ||||||
Management Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Management Risk | ||||||
Documentation Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Documentation Risk over-the-counter e.g. e.g. e.g. | ||||||
Regulatory Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Regulatory Risk Changes to Derivatives Regulation | ||||||
Other Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Other Risks | ||||||
Warrants and Rights [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Warrants and Rights | ||||||
Risks Relating to Reference Rates [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Relating to Reference Rates The ICE Benchmark Administration (“IBA”) (the entity that is responsible for calculating LIBOR) ceased providing overnight, one, three, six and twelve months USD LIBOR tenors on June 30, 2023. In addition, the United Kingdom’s Financial Conduct Authority (“FCA”), which oversees the IBA, now prohibits entities supervised by the FCA from using LIBORs, including USD LIBOR, except in very limited circumstances. In the United States, SOFR is the preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. SOFR is published by the Federal Reserve Bank of New York each U.S. Government Securities Business Day, for transactions made on the immediately preceding U.S. Government Securities Business Day. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions. As of the filing date of this annual report on Form 10-K, one-month over-the-counter There can be no guarantee that SOFR will not be discontinued or fundamentally altered in a manner that is materially adverse to the interests of investors in loans referencing SOFR. If the manner in which SOFR or CME Term SOFR is calculated is changed, that change may result in a reduction of the amount of interest payable on such loans and the trading prices of the SOFR Loans. In addition, there can be no guarantee that loans referencing SOFR or CME Term SOFR will continue to reference those rates until maturity or that, in the future, the Company’s loans will reference benchmark rates other than CME Term SOFR. Should any of these events occur, the Company’s loans, and the yield generated thereby, could be affected. Specifically, the anticipated yield on the Company’s loans may not be fully realized and the Company’s loans may be subject to increased pricing volatility and market risk. | ||||||
Risks Related to Economic Recessions [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to Economic Recessions Many of the Company’s Portfolio Investments may be susceptible to economic slowdowns or recessions and may be unable to repay its loans during these periods. The global outbreak of COVID-19 Company’s non-performing A Portfolio Investment’s failure to satisfy financial or operating covenants imposed by the Company or other lenders could lead to defaults and, potentially, acceleration of the time when the loans are due and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize the Portfolio Investment’s ability to meet its obligations under the debt that the Company holds. The Company may incur additional expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting Portfolio Investment. In addition, if one of the Company’s Portfolio Investments were to go bankrupt, depending on the facts and circumstances, including the extent to which the Company actually provided significant managerial assistance to that Portfolio Investment, a bankruptcy court might re-characterize These Portfolio Investments may face intense competition, including competition from companies with greater financial resources, more extensive research and development, manufacturing, marketing and service capabilities and greater number of qualified and experienced managerial and technical personnel. They may need additional financing that they are unable to secure and that the Company is unable or unwilling to provide, or they may be subject to adverse developments unrelated to the technologies they acquire. The Company’s business is directly influenced by the economic cycle and could be negatively impacted by a downturn in economic activity in the U.S. as well as globally. Fiscal and monetary actions taken by U.S. and non-U.S. the COVID-19 | ||||||
Risks Related to Portfolio Investment Monitoring and Involvement [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to Portfolio Investment Monitoring and Involvement Control Positions | ||||||
Risks Associated with Bankruptcy and Insolvency Cases [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Associated with Bankruptcy and Insolvency Cases Generally, the duration of a bankruptcy or insolvency case can only be roughly estimated. The reorganization of a company usually involves the design of a business plan, the development and negotiation of a plan of reorganization, plan approval by creditors and confirmation by the court. This process can involve substantial legal, professional and administrative costs to the company and to the Company; is subject to unpredictable and lengthy delays; and during the process the company’s competitive position may erode, key management may depart and the company may not be able to invest adequately. In some cases, the company may not be able to reorganize and may be required to liquidate assets. In addition, the debt of companies in financial reorganization may, in some cases, not pay current interest and other charges, may not even accrue interest and other charges during reorganization, may be relieved of paying pre-payment premiums and During the pendency of a bankruptcy case, an automatic stay will prevent all creditors from taking action against the debtor to foreclose on collateral or otherwise to collect on amounts owed to such creditors. Unless a creditor’s claim in such case is secured by assets having a value in excess of such claim, or the bankruptcy estate is determined to be solvent, no interest will be permitted to accrue and, therefore, a creditor’s return on investment can be adversely affected by the passage of time during which the plan of reorganization of the debtor is being negotiated, approved by the creditors and confirmed by the bankruptcy court. The priority of perfected liens held by secured creditors as of the commencement of the bankruptcy case is typically recognized in a bankruptcy case, unless avoided. Occasionally, however, a court will allow a debtor-in-possession financing to liens that prime pre-existing, valid liens. The administrative costs in connection with a bankruptcy case are frequently high and will generally be paid out of the debtor’s estate prior to any return to creditors (other than out of assets or proceeds thereof which are subject to valid and enforceable liens and other security interests) and equity holders. In addition, certain unsecured claims that have priority by law over the claims of certain creditors (for example, claims arising post-petition and certain claims for taxes) may be quite high. U.S. bankruptcy law permits the classification of “substantially similar” claims in determining the classification of claims in a reorganization for the purpose of voting on a plan of reorganization. Because the standard for classification is vague, there exists a significant risk that the Company’s influence with respect to a class of securities can be lost by the inflation of the number and the amount of claims in, or other gerrymandering of, the class. Although a creditor is not typically compelled to release direct claims it may have against non-debtor Claims in bankruptcy cases are often paid at less than par and, depending on the debtor’s assets and liabilities, there may be no recovery at all for some classes of creditors. The claims of even over-secured secured creditors are often paid out over time, and may receive debt securities that will trade below par. Initially, only the debtor may file a proposed plan of reorganization. While the U.S. Bankruptcy Code permits other parties-in-interest to file Even if a class of claims is entitled to a recovery in a reorganization or liquidation proceeding, such recovery could be in the form of instruments or interests different from the form of instrument or interest which formed the basis for the claim, including debt securities, equity securities, convertible securities, warrants, options, cash, interests in litigation claims or trusts formed to pursue such litigation claims, interests in liquidation trusts, or other property or interests, any of which could be illiquid and/or difficult to value. Furthermore, the terms of instruments or interests distributed in a bankruptcy or insolvency proceeding may differ from prevailing market terms for similar instruments or interests, and may have a market value of less than par. The Company may be presented with the opportunity to make new investments in connection with the reorganization or liquidation of an issuer of Portfolio Investments, including, without limitation, through a rights offering, litigation financing, bridge financing or other exit financing. The Company may make such investments as part of an in-court or out-of-court restructuring of Contractual subordination provisions are enforceable when a borrower is in bankruptcy, as are most inter-creditor agreement terms. Furthermore, there are instances where creditors and equity holders may lose their ranking and priority when they take over management and functional operating control of a debtor. In those cases where the Company, by virtue of such action, is found to exercise “domination and control” of a debtor, the Company may lose its priority if the debtor or other creditors can demonstrate that the debtor’s business was adversely impacted or other creditors and/or equity holders were harmed by improper or unfair actions of the Company, whether or not the Company is found to be a controlling party of the debtor. In addition, loans extended to a financially distressed borrower by an entity that owns an equity interest in the borrower may be reclassified as having been an equity capital contribution, rather than a debt obligation. Notwithstanding the corporate structure of various debtor entities, such as special purpose entities created to hold assets and to structure for bankruptcy remoteness, such entities may, in certain cases, be consolidated in bankruptcy proceedings, which can affect the outcome of such proceedings and the amounts ultimately received by creditors. In addition, if a claim can be asserted against only a parent holding entity, such claim may be structurally subordinated to claims against a subsidiary entity that owns assets. The U.S. Bankruptcy Code and other laws and regulations affecting debtors’ and creditors’ rights are subject to change, including by way of legislative action or judicial interpretation. In addition, governmental actors have recently shown a willingness to intervene in bankruptcy-related matters (for example, the U.S. government’s bailouts of General Motors and Chrysler), which may increase uncertainty regarding the enforcement of creditors’ rights and the bankruptcy process generally. Any such actions could alter the expected outcome or introduce greater uncertainty regarding the expected outcome of an investment situation of the Company, which may adversely affect such investment or the Company’s investment program. | ||||||
Lack of Control over Investments [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Lack of Control over Investments may hold a non-controlling interest in non-controlling | ||||||
Control Positions [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Control Positions e.g., To the extent that the Company owns a controlling stake in or is deemed an affiliate of a particular company, it may also be subject to certain additional bankruptcy or securities laws restrictions that could affect both the liquidity of the Company’s interest and the Company’s ability to liquidate its interest without adversely impacting the price thereof, including insider trading restrictions, the affiliate sale restrictions of Rule 144 of the Securities Act and the disclosure requirements of Sections 13 and 16 of the 1934 Act. Further, to the extent that affiliates of the Company or the Adviser are subject to such restrictions, the Company, by virtue of its affiliation with such entities, may be similarly restricted, regardless of whether the Company stands to benefit from such affiliate’s ownership. If the Company, alone or as part of a group acting together for certain purposes, becomes the beneficial owner of more than 10% of certain classes of securities of a U.S. public company or places a director on the board of directors of such a company, the Company may be subject to certain additional reporting requirements and to liability for short-swing profits under Section 16 of the 1934 Act. Furthermore, the Company may also be subject to similar reporting requirements and other limitations in non-U.S. jurisdictions where The exercise of control over a company, depending upon the amount and type of securities owned by the Company, contractual arrangements between the company and the Company, and other relevant factual circumstances, could result in an extension to one year of the 90-day bankruptcy preference Fraudulent Conveyance and Preference Considerations Lender Liability Considerations and Equitable Subordination | ||||||
Lender Liability Considerations and Equitable Subordination [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Lender Liability Considerations and Equitable Subordination equitably | ||||||
Fraudulent Conveyance and Preference Considerations [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Fraudulent Conveyance and Preference Considerations unpaid creditor, a debtor-in-possession, a trustee The measure of insolvency for purposes of the foregoing will vary. Generally, an issuer or obligor would be considered insolvent at a particular time if the sum of its debts were then greater than all of its property at a fair valuation, or if the present fair saleable value of its assets were less than the amount that would be required to pay its probable liabilities on its existing debts as they became absolute and matured. There can be no assurance as to what standard a court would apply in order to determine whether the issuer or obligor was “insolvent” after giving effect to the incurrence of the indebtedness and/or the granting of any security interest or other lien or that, regardless of the method of valuation, a court would not determine that the issuer was “insolvent” upon giving effect to such incurrence of indebtedness and/or grant of security interests or other lien. The Company may invest in bank debt or other indebtedness issued by a borrower which is guaranteed by other entities within the borrower’s corporate family. In such circumstances, the borrower often has little or no assets other than the stock of its subsidiaries and, as a result, any recovery is often available only, if at all, from the entities that guaranteed the indebtedness. There is a risk, however, that the obligations of such guarantors and any security interests or other liens issued by the guarantors to secure such obligations may be avoided as fraudulent conveyances in the event that a court were to determine that such guarantors did not receive reasonably equivalent value in exchange for the issuance of the guarantees and for the security interests or other liens. A court could determine that the guarantors did not receive reasonably equivalent value or fair consideration in incurring the obligations and granting the security interests or other liens despite the existence of “indirect” benefits to the guarantors, such as the strengthening of the corporate enterprise in the transaction. Additionally, provisions in guarantees and other similar documents governing similar obligations by which fraudulent conveyance exposure is sought to be reduced or eliminated, such as so-called “savings clauses,” If a transaction is found to have been a fraudulent conveyance, the transferee may be compelled to return the value of the assets transferred as of the time of the transfer, even if the then current value is substantially less. In addition, unless the transferee is deemed to be a “good faith” transferee, the return of the asset may not even provide for the compensation back to the transferee of the value paid to the transferor. In addition, in the event of the insolvency (as determined by a court based on the law of the jurisdiction which is being applied) of an issuer of a Portfolio Investment, payments made on the Company’s Portfolio Investment, or new liens granted, could be subject to avoidance as a “preference” if made within a certain period of time (which may be as long as one year) before insolvency, depending on a number of factors. In general, if payments on a Company’s Portfolio Investment are avoidable, whether as a fraudulent conveyance or preference, such payments can be recaptured either from the initial recipient (such as the Company) or from subsequent transferees of such payments, including Unitholders. Additionally, if the grant of a security interest or other lien is avoidable, whether as a fraudulent conveyance or preference, the value of the security interest or other lien can be recovered from the initial transferee or the entity for whose benefit such transfer was made (such as the Company), and such recovery could include the diminution in value of the property which was subject to the security interest or other lien from the date of transfer. There can be no assurance that a successful cause of action for fraudulent conveyance or preference will not occur, or as to whether any fund, lending institution or other party from which the Company may directly or indirectly acquire a Portfolio Investment engaged in any conduct to give rise to such causes of action, and if it did, as to whether such causes of action could be asserted against the Company and/or the Unitholders. | ||||||
Portfolio Investment Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Portfolio Investment Risk numerous U.S. and non-U.S. statutory and There can be no assurance that a Portfolio Investment’s management team will be able to operate such Portfolio Investment successfully. In addition, instances of fraud or other illegal practices committed by the management team of a Portfolio Investment may undermine the Company’s investment in such Portfolio Investment and the Company may suffer losses. Additionally, Portfolio Investments need to attract, retain and develop executives and members of their management teams. There can be no assurance that a Portfolio Investment will be able to attract and develop suitable members | ||||||
ZeroCoupon Bonds, Deferred Interest Rate Bonds and PaymentInKind Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Zero-Coupon Bonds, Deferred Interest Rate Bonds and Payment-In-Kind Securities To the extent the Company invests in OID instruments, including PIK, zero coupon bonds, and debt securities with attached warrants, investors will be exposed to the risks associated with the inclusion of such non-cash income • The interest payments deferred on a PIK loan are subject to the risk that the borrower may default when the deferred payments are due in cash at the maturity of the loan; • The interest rates on PIK loans are higher to reflect the time-value of money on deferred interest payments and the higher credit risk of borrowers who may need to defer interest payments; • PIK instruments may have unreliable valuations because the accruals require judgments about ultimate collectability of the deferred payments and the value of the associated collateral; • An election to defer PIK income payments by adding them to principal increases the Company’s gross assets and, thus, increases future base fees to the Adviser and, because income payments will then be payable on a larger principal amount, the PIK election also increases the Adviser’s future income incentive fees at a compounding rate; • Market prices of OID instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that pay interest periodically in cash; • The deferral of interest on a PIK loan increases its loan-to-value ratio, • OID creates the risk of non-refundable cash based on non-cash accruals | ||||||
Money Market and Other Liquid Instruments [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Money Market and Other Liquid Instruments Among other liquid investments, the Company may invest cash, pending investment, reinvestment or distribution thereof or in connection with the maintenance of reserves, in money fund products offered from time to time by its Custodian, including the use of bank “sweep” short-term offerings. | ||||||
Pooled Investment Vehicles and Passthrough Entities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Pooled Investment Vehicles and Pass-through Entities exchange-traded funds and closed-end companies) and | ||||||
U.S. Government and Agency Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | U.S. Government and Agency Securities | ||||||
Restricted Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Restricted Securities b In addition, a debtor in a reorganization case may be granted a trading restriction order by a bankruptcy court in order to protect such debtor’s net operating losses (a “NOL Order”). Such an order may prohibit or severely restrict the ability of some creditors to sell their claims and interests in the debtor. The Company’s ability to transfer its interests in such a debtor may be impaired, delayed or prohibited as a consequence of a NOL Order. The Company may also incur added expenses if it attempts to challenge or limit the scope of a NOL Order, and such an attempt may not be successful. Similarly, issuers with net operating losses sometimes adopt Unitholder rights plans or similar arrangements in order to preserve the ability to utilize such net operating losses in the future; any such actions could also limit or otherwise adversely impact the Company’s ability to transfer or dispose of its interests in any such issuer. | ||||||
Risks Related to the Russian Invasion of Ukraine [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to the Russian Invasion of Ukraine Russia’s pre-positioned forces | ||||||
No Market for Units [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | No Market for Units persons | ||||||
No Assurance of Cash Distributions [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | No Assurance of Cash Distributions cash distributions or year-to-year increases in cash factors described in this annual report on Form 10-K. In certain cases, the Company may recognize income before or without receiving the accompanying cash. Depending on the amount of noncash income, this could result in difficulty satisfying the annual distribution requirement applicable to RICs. Accordingly, the Company may have to sell some Portfolio Investments at times it would not consider advantageous, raise additional debt or equity capital or reduce new investments to meet these distribution requirements | ||||||
Assets Believed to Be Undervalued or Incorrectly Valued [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Assets Believed to Be Undervalued or Incorrectly Valued | ||||||
Forward Looking Statements [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Forward-Looking Statements annual 10-K on Form 10-K. Those forward-looking on Form 10-K. | ||||||
Risks Related to the U.S. Debt Ceiling [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to the U.S.’ Debt Ceiling increased | ||||||
Adverse Consequences of Default [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Adverse Consequences of Default Upon the default of a Unitholder, the Company may deliver an amended funding notice to the non-defaulting The Board may require a defaulting Unitholder to contribute the entirety of its remaining Commitment to the Company. For any such Unitholder, the return on its Company investment may be materially lower than returns to Unitholders who do not pre-fund their Commitments. | ||||||
Machine Learning Technology Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Machine Learning Technology Risks Machine Learning Technology is generally highly reliant on the collection and analysis of large amounts of data, and it is not possible or practicable to incorporate all relevant data into the model that Machine Learning Technology utilizes to operate. Certain data in such models will inevitably contain a degree of inaccuracy and error and could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of Machine Learning Technology. To the extent the Company or its Portfolio Investments are exposed to the risks of Machine Learning Technology use, any such inaccuracies or errors could adversely impact the Company or its Portfolio Investments. | ||||||
Financial Services Industry Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Financial Services Industry Risks non-interest-bearing non-performance Although the Company and the Adviser assess its and the Portfolio Investments’ banking and financing relationships as the Company believes necessary or appropriate, the Company and the Portfolio Investments’ access to funding sources and other credit arrangements in amounts adequate to finance or capitalize current and projected future business operations could be significantly impaired by factors that affect the financial institutions with which the Company, the Adviser or the Portfolio Investments have arrangements directly or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which the Company, the Adviser or the Portfolio Investments have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally. In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for the Company, the Adviser, or the Portfolio Investments to acquire financing on acceptable terms or at all. | ||||||
Risks Related to Disposition of Investments [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risks Related to Disposition of Investments Risks Relating to Bank Loans and Corporate Loans | ||||||
Regulatory Risks Relating to the Company [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Regulatory Risks Relating to the Company non-U.S. non-bank The financial services industry is subject to extensive regulation. Banking regulators have broad and largely discretionary powers, which include prohibiting “unsafe or unsound” practices; requiring affirmative actions to correct any violation or practice; issuing administrative orders that can be judicially enforced; directing increases in capital; directing the sale of subsidiaries or other assets; limiting dividends and distributions; restricting growth; assessing civil monetary penalties; removing officers and directors; and terminating deposit insurance. These actions and other regulatory requirements could have a material adverse effect on an investment in the Company. The financial institutions in which the Company will invest and with which the Company will transact are subject to laws, regulations, administrative actions and policies in each location in which they operate. The regulatory environment for private investment funds is evolving, and changes in the regulation or taxation of private investment funds may adversely affect the value of the investments held by the Company and the ability of the Company to execute its investment strategy. In addition, the securities and futures markets are subject to comprehensive statutes, regulations and margin requirements. The SEC and other U.S. and non-U.S. regulators, self-regulatory organizations | ||||||
[1]Calculated using the average Units outstanding method. Weighted average Units outstanding for the years ended December 31, 2023, December 31, 2022 and the period March 8, 2021 (date of first sale of units) through December 31, 2021 were 1,029,458, 720,266 and 276,929, respectively.[2]Commencement of operations |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1. Organization SLR HC BDC LLC (the “Company”, “we”, “us” or “our”) is a Delaware limited liability company formed on July 7, 2020 as a closed-end, In connection with the Company’s formation, the Company issued and sold 40 units to the Adviser (the “Initial Unitholder”), which were acquired for an initial capital contribution of $1 on January 5, 2021 in reliance upon the available exemptions from registration requirements of Section 4(a)(2) of the Securities Act. The Company’s capital commitments total $83,850. The Company’s initial drawdown occurred on March 8, 2021 with the sale and issuance of units at an aggregate purchase price of $3,500 or $29.30 per unit. Prior to the issuance of units on March 8, 2021, the Initial Unitholder’s initial seed capital was withdrawn from the Company and its Units were canceled. As of December 31, 2023, $24,000 of capital commitments were drawn and $59,850 were unfunded. The Company pursues a corporate lending strategy focused on direct sourcing, underwriting and managing a diverse portfolio of private loans to U.S. healthcare companies. The Company’s investments in portfolio companies are referred to herein as “Portfolio Investments”. The Company’s principal focus is to invest in two differentiated strategies: first lien healthcare cash flow loans and first lien life science loans. First lien healthcare cash flow loans are expected to be made to private equity-owned upper middle market healthcare companies with EBITDA between approximately $25,000 and $100,000. These aggregate loan tranches are expected to range in size from $100,000 to $300,000. Healthcare cash flow loans are generally expected to have a five pre-commercialization four two non-investment The Company is organized for investors who may invest through one or more investment funds created by one or more financial institutions unaffiliated with the Company (collectively, the “Access Fund”). The Company was permitted to hold closings at any time during the offering period (the “Offering Period”), which ended on December 31, 2022. The term of the Company is expected to be seven years from the Company’s final closing with the Access Fund, which was held on February 11, 2021, unless the Company is terminated earlier or causes the units (or securities into which the units are converted or exchanged) to be listed for trading on a national securities exchange (an “Exchange Listing”) as set forth in the Limited Liability Company Agreement of the Company (as amended, restated or otherwise modified from time to time, the “LLC Agreement”), but may be extended by the board of directors for up to two consecutive one year periods upon approval of the Company’s independent directors and the approval of unitholders of the Company (“Unitholders”), which approval will be obtained through a non-1940 At any time prior to the end of the term, subject to the requirements of the 1940 Act and applicable law, the board of directors may, without the approval of Unitholders, cause the units (or securities into which the units are converted or exchanged) to be listed for trading on a national securities exchange. In connection with any such Exchange Listing, subject to the requirements of the 1940 Act and applicable law, the board of directors may, without the approval of Unitholders, cause the Company to complete (i) an initial public offering, (ii) a merger with another entity, including an affiliated company, subject to any limitations under the 1940 Act, (iii) the sale, exchange or disposition of all or a portion of the assets of the Company, or (iv) a conversion of the Company into a corporation incorporated in a state determined by the board of directors, either through a conversion in accordance with applicable law, a merger with or into an existing corporation, or otherwise, in which all units will be converted into or exchanged for shares of common stock of the resulting corporation. If the Company is unable to effectuate an Exchange Listing prior to the end of the term, the Company will use commercially reasonable efforts to wind down or liquidate pursuant to the procedures set forth in the LLC Agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and certain wholly-owned subsidiaries, if any. The consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition for the periods presented. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts may have been reclassified to conform to current period presentation. The preparation of consolidated financial statements in conformity with GAAP and pursuant to the requirements for reporting on Form 10-K S-X, In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for the fair presentation of financial statements, have been included. The significant accounting policies consistently followed by the Company are: (a) Investment transactions are accounted for on the trade date. (b) In accordance with GAAP and the 1940 Act, the Company’s assets will generally be valued as follows: (i) securities or other instruments (other than as referred to in clauses (ii) and (iii) below) for which market quotes are readily available and deemed to represent fair value under GAAP will be valued based on quotes obtained from a quotation reporting system, market makers or pricing services (when deemed to represent fair value under GAAP). A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation; (ii) exchange-traded options, futures and options on futures will be valued at the settlement price determined by the exchange or through the use of a model such as Black-Scholes; (iii) short-term investments with maturities of sixty (60) days or less generally will be valued at amortized cost; and (iv) securities, loans or other instruments for which market quotes are not readily available or reliable under GAAP will be valued as described below: a. the quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of SLR responsible for the Portfolio Investment; b. preliminary valuation conclusions are then documented and discussed with senior management of the Adviser; c. the audit committee of the Board of Directors (the “Board”) reviews the preliminary valuations of the Adviser and third-party valuation specialist, if any, and responds to the valuation recommendations to reflect any comments; and d. the Board discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of the Adviser, the audit committee, and third-party valuation specialist, if any, which may from time to time be engaged by the Board. The valuation principles set forth above may be modified from time to time without notice to Unitholders, in whole or in part, as determined by the Board in its sole discretion. The Board will also (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 2a-5. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Company will consider the pricing indicated by the external event to corroborate the valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Investments are valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC 820-10, ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1 Level 2 Level 3 In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience. (c) Gains or losses on investments are calculated by using the specific identification method. (d) The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market discounts are capitalized and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring (e) The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. The Company will accrue excise tax on such estimated excess taxable income as appropriate. (f) Book and tax basis differences relating to Unitholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts annually. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP; accordingly at December 31, 2023, $23 was reclassified on our balance sheet between accumulated distributable net loss and common Unitholders’ capital. Total earnings and net asset value are not affected. (g) Distributions to Unitholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. (h) In accordance with Regulation S-X Consolidation (i) The accounting records of the Company are maintained in U.S. dollars. Any assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against the U.S. dollar on the date of valuation. The Company will not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations would be included with the net unrealized gain or loss from investments. The Company’s investments in foreign securities, if any, may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments in terms of U.S. dollars and therefore the earnings of the Company. (j) In accordance with ASC 835-30, (k) The Company records expenses related to applicable equity offering costs as a charge to capital upon the sale of units, in accordance with ASC 946-20-25. (l) Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual non-accrual (m) The Company records expenses directly related to its organization as incurred. (n) The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less would qualify, with limited exceptions. The Company believes that certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents. |
Agreements and Related Party Tr
Agreements and Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Agreements And Related Party Transactions [Abstract] | |
Agreements and Related Party Transactions | Note 3. Agreements and Related Party Transactions Pursuant to the Investment Management Agreement we have entered into with the Adviser, we will pay the Adviser certain management and incentive fees prior to and following an Exchange Listing. Prior to an Exchange Listing, the Adviser has been appointed to provide administrative and coordination services to the Company (in such capacity, the “Administrative Coordinator”). The Company will pay an administration fee to the Administrative Coordinator for such administrative and coordination services, each as defined and described further below. Following an Exchange Listing, we intend to enter into a separate administration agreement with an affiliate pursuant to which administrative services would be provided to the Company, as described further below. The cost of the base management fee, the incentive fee and the administration fee will ultimately be borne by our Unitholders. Management Fees The Company pays the Adviser a management fee prior to an Exchange Listing (as the same may be adjusted pursuant to the LLC Agreement and the Investment Management Agreement, the “Pre-Exchange Pre-Exchange follows: • Pre-Exchange Pre-Exchange per annum • Post-Exchange Listing The Management Fee will be appropriately adjusted for any stub period. The Adviser may arrange for the Company to direct to a placement agent any portion of the Management Fee which the Adviser is owed for purposes of paying any placement fee that the Adviser owes to such placement agent. The Adviser will have the right, in its sole discretion, to waive or reduce, as well as recoup in a subsequent period, the Management Fee to which the Adviser is entitled in respect of all Unitholders’ Units in any particular calendar quarter. Any such Management Fee may be recouped by the Adviser in a future calendar quarter within three years of the date of the applicable waiver of the Management Fee. No Management Fees have been waived as of December 31, 2023. Incentive Fee Distributions Pre-Exchange “Pre-Exchange (i) Disposition Proceeds apportioned to Unitholders shall be divided between and distributed to Unitholders, on the one hand, and paid to the Adviser as a Pre-Exchange (A) First, Return of Capital Contributions: 100% to such Unitholder until such Unitholders has received cumulative distributions of Investment Proceeds pursuant to this clause (A) equal to such Unitholder’s total capital contributions to the Company (including amounts contributed to pay Pre-Exchange Pre-Exchange expenses); (B) Second, Unitholder Preferred Return: 100% of all remaining Disposition Proceeds to Unitholders until they have each received cumulative distributions of Investment Proceeds, without duplication, pursuant to this clause (B) and clause (D) below and clause (ii)(A) and (ii)(C) below equal to 6% per annum, compounded annually, on Unitholders’ capital contributions to the Company (including amounts contributed to pay Pre-Exchange Pre-Exchange “—Pre-Exchange (C) Third, Adviser Catch Up: 100% of all remaining Disposition Proceeds to the Adviser as a Pre-Exchange (D) Fourth, 90%/10%: 90% of all remaining Disposition Proceeds to Unitholders and 10% of all remaining Disposition Proceeds to the Adviser as a Pre-Exchange In no event will the Adviser receive amounts of Pre-Exchange In no event will the Adviser receive amounts attributable to Disposition Proceeds that, as of any distribution or payment date, exceeds 20% of cumulative realized capital gains net of all cumulative realized capital losses and unrealized capital depreciation. (ii) Current Proceeds apportioned to Unitholders shall be divided between and distributed to Unitholders, on the one hand, and paid to the Adviser as a Pre-Exchange (A) First, Unitholder Preferred Return: 100% of all Current Proceeds to Unitholders until Unitholders have received cumulative distributions of Investment Proceeds, without duplication, pursuant to this clause (A) and clause (C) below and pursuant to clause (i)(B) and clause (i)(D) above equal to the Preferred Return; (B) Second, Adviser Catch Up: Second, 100% of all remaining Current Proceeds to the Adviser as a Pre-Exchange (C) Third, 90%/10%: Thereafter, 90% of all remaining Current Proceeds to Unitholders and 10% of all remaining Current Proceeds to the Adviser as a Pre-Exchange In no event will the Adviser receive amounts of Pre-Exchange Post-Exchange Listing Incentive Fee (i) Pre-Incentive a. For this purpose, Pre-Incentive b. Pre-Incentive Pre-Incentive Pre-Incentive c. The Company will pay the Adviser a Post-Exchange Listing Incentive Fee with respect to the Company’s Pre-Incentive i. no Post-Exchange Listing Incentive Fee in any calendar quarter in which the Company’s Pre-Incentive ii. 100% of the Company’s Pre-Incentive Pre-Incentive Pre-Incentive “catch-up.” “catch-up” Pre-Incentive Pre-Incentive iii. 20% of the amount of the Company’s Pre-Incentive catch-up Pre-Incentive These calculations will be appropriately pro-rated for Capital Gains Fee The Adviser will have the right, in its sole discretion, to waive or reduce, as well as recoup in a subsequent period, all or any portion of the Pre-Exchange Pre-Exchange Pre-Exchange The Adviser may arrange for the Company to direct to a placement agent any portion of the Pre-Exchange Administration Fees and Expenses Pre-Exchange “Pre-Exchange Pre-Exchange on-going, non-investment-related The Pre-Exchange The Administrative Coordinator will have the right, in its sole discretion, to waive, as well as recoup in a subsequent period, the Pre-Exchange Pre-Exchange Pre-Exchange Post-Exchange Listing Administration Expenses Pre-Exchange For the years ended December 31, 2023, December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021, the Company incurred $565, $419 and $224, respectively, in Management Fees, $42, $27 and $9, respectively, in Administration Fees and $0, $0 and $0, respectively in Incentive Fees. In addition, prior to an Exchange Listing, the aggregate amount of the operating expenses relating to Unitholders investing directly in the Company will not exceed the following limits in any fiscal year: (A) if the Company has less than or equal to $400,000 in Commitments, an amount equal to the sum of (x) the product of the Commitments and 0.0025 and (y) $1,250, or (B) if the Company has greater than $400,000 in Commitments, $2,250 (such figure, the “Operating Expense Cap”). Any amount in excess of the Operating Expense Cap for any fiscal year will be paid by the Adviser. For the avoidance of doubt, (i) the Operating Expense Cap will not apply to any fees, costs, expenses and liabilities allocable to persons investing indirectly in the Company through any Unitholder, (ii) the Company will not bear the costs of any third-party valuation agent engaged solely for purposes of valuing the Company’s portfolio investments at each quarter end and (iii) the Operating Expense Cap will no longer apply upon the effectuation of an Exchange Listing. The Adviser or Administrative Coordinator and/or their affiliates has advanced organizational and offering expenses to the Company, which include organizational fees, costs, expenses and liabilities of the Company, including legal expenses, incurred in connection with the initial offering of Units and the formation and establishment of the Company (the “Organizational Expenses”). The Adviser or Administrative Coordinator (or such affiliate) will be reimbursed by the Company for such advanced costs and expenses in an amount not to exceed $500. The Company will be responsible for and pay (or reimburse) the Organizational Expenses subject to the cap described in the preceding sentence. Accordingly, in 2021, $177 of offering expenses were charged to capital and $229 of organizational costs were expensed. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 4. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1. Level 2. a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3. When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Gains and losses for assets and liabilities categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but could be classified as Level 1. The following tables present the balances of assets measured at fair value on a recurring basis, as of December 31, 2023 and December 31, 2022: Fair Value Measurements As of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Bank Debt/Senior Secured Loans $ — $ — $ 63,268 $ 63,268 Warrants 1 — 6 7 Total Investments $ 1 $ — $ 63,274 $ 63,275 While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2023, the fair value of the SPV Facility and the Subscription Facility would be $24,210 and $17,550, respectively. Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Bank Debt/Senior Secured Loans $ — $ — $ 43,886 $ 43,886 Warrants — — 11 11 Total Investments $ — $ — $ 43,897 $ 43,897 While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2022, the fair value of the SPV Facility and the Subscription Facility would be $14,675 and $13,800, respectively. The following tables provides a summary of the changes in fair value of Level 3 assets for the years ended December 31, 2023 and 2022, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2023 and 2022: Bank Debt/Senior Warrants Total Fair value, December 31, 2022 $ 43,886 $ 11 $ 43,897 Total gains or losses included in earnings: Net realized gain — — — Net change in unrealized gain (loss) 254 (15 ) 239 Purchase of investment securities* 26,306 15 26,321 Proceeds from dispositions of investment securities (7,178 ) (5 ) (7,183 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Fair value, December 31, 2023 $ 63,268 $ 6 $ 63,274 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 259 $ (18 ) $ 241 Bank Debt/Senior Warrants Total Fair value, December 31, 2021 $ 27,286 $ — $ 27,286 Total gains or losses included in earnings: Net realized gain — — — Net change in unrealized gain (loss) 192 (14 ) 178 Purchase of investment securities* 28,713 25 28,738 Proceeds from dispositions of investment securities (12,305 ) — (12,305 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Fair value, December 31, 2022 $ 43,886 $ 11 $ 43,897 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 243 $ (14 ) $ 229 * Includes PIK capitalization and accretion of discount Quantitative Information about Level 3 Fair Value Measurements The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company. Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (“EBITDA”) multiples of similar companies, and comparable market transactions for equity securities. Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2023 is summarized in the table below: Asset or Fair Value at Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Bank Debt / Senior Secured Loans Asset $ 63,268 Income Approach Market Yield 10.6% – 17.6% Warrants Asset $ 6 Market Approach Volatility 18.9% – 18.9% Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2022 is summarized in the table below: Asset or Fair Value at Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Bank Debt / Senior Secured Loans Asset $ 43,886 Income Approach Market Yield 9.8% – 18.2% Warrants Asset $ 11 Market Approach Volatility 26.0% – 26.0% Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5. Debt SPV Facility Subscription Facility 2.75-3.00% The average annualized interest cost for borrowings for the years ended December 31, 2023 and 2022 was 8.11% and 4.88%, respectively. These costs are exclusive of other credit facility expenses such as unused fees. The maximum amount borrowed on the credit facilities during the years ended December 31, 2023 and 2022 was $44,010 and $32,775, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies The Company had unfunded debt commitments to various revolving and delayed-draw term loans. The total amount of these unfunded commitments as of December 31, 2023 and December 31, 2022 is $11,545 and $15,513, respectively, comprised of the following: December 31, December 31, AAH Topco, LLC $ 2,262 $ — OIS Management Services, LLC 1,710 — Southern Orthodontic Partners Management, LLC 1,347 670 Ardelyx, Inc. 1,345 696 CVAUSA Management, LLC 1,059 — Retina Midco, Inc. 966 — Orthopedic Care Partners Management, LLC 901 566 United Digestive MSO Parent, LLC 391 — SCP Eye Care, LLC 343 968 Vertos Medical, Inc. 283 — Medrina, LLC 239 — UVP Management, LLC 218 — Urology Management Holdings, Inc. 151 — SunMed Group Holdings, LLC 132 69 Exactcare Parent, Inc. 102 — WCI-BXC 96 — Outset Medical, Inc. — 3,052 Apeel Technology, Inc. — 2,852 Glooko, Inc. — 1,633 Arcutis Biotherapeutics, Inc. — 786 Oral Surgery Partners Holdings, LLC — 843 Plastics Management, LLC — 794 Spectrum Pharmaceuticals, Inc. — 763 Cerapedics, Inc. — 623 Pediatric Home Respiratory Services, LLC — 630 Meditrina, Inc. — 312 Ivy Fertility Services, LLC — 128 BayMark Health Services, Inc. — 128 Total Commitments $ 11,545 $ 15,513 The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of December 31, 2023, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment. In the normal course of our business, we invest or trade in various financial instruments and may enter into various investment activities with off-balance off-balance |
Unitholders' Capital
Unitholders' Capital | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Unitholders' Capital | Note 7. Unitholders’ Capital Transactions in Unitholders’ capital were as follows: Year ended Year ended Units at beginning of period 888,565 682,427 Units issued 181,077 206,138 Units issued and outstanding at end of period 1,069,642 888,565 |
Financial Highlights
Financial Highlights | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 8. Financial Highlights The following is a schedule of financial highlights for the years ended December 31, 2023, December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021: Year ended Year ended For the period Per Unit Data: (a) Net asset value per unit, beginning of period $ 21.77 $ 21.41 $ — Net investment income (loss) 1.33 1.07 (2.97 ) Net realized and unrealized gain 0.28 ** 0.26 0.40 Net increase (decrease) in Unitholders’ capital resulting from operations 1.61 1.33 (2.57 ) Issuance of initial units — — 24.62 ** Offering costs — — (0.64 ) Distributions to Unitholders: From distributable earnings (1.85 ) (0.97 ) — From return of capital (0.06 ) — — Net asset value per unit, end of period $ 21.47 $ 21.77 $ 21.41 Total Return(b)(c) 7.40 % 6.21 % (26.93 )% Unitholders’ capital, end of period $ 22,969 $ 19,348 $ 14,612 Units outstanding, end of period 1,069,642 888,565 682,427 Ratios to average net assets of Unitholders’ Capital (c): Net investment income (loss) 6.08 % 4.91 % (16.59 )% Operating expenses 5.99 % 6.61 % 29.12 % Interest and other credit facility expenses 18.08 % 12.33 % 8.02 % Total expenses 24.07 % 18.94 % 37.14 % Average debt outstanding $ 31,744 $ 20,453 $ 7,352 Portfolio turnover ratio 13.9 % 36.5 % 59.7 % (a) Calculated using the average Units outstanding method. Weighted average Units outstanding for the years ended December 31, 2023, December 31, 2022 and the period March 8, 2021 (date of first sale of units) through December 31, 2021 were 1,029,458, 720,266 and 276,929, respectively. (b) Calculated as the change in net asset value (“NAV”) per Unit during the period plus distributions declared per Unit, divided by the beginning NAV per unit. Total return does not include a sales load. (c) Not annualized for periods less than one year. * Commencement of operations ** Includes the impact of the different unit amounts used in calculating per Unit data as a result of calculating certain per Unit data based upon the weighted average Units outstanding during the period and certain per Unit data based on the Units outstanding as of a period end. |
Income Tax Information and Dist
Income Tax Information and Distributions to Unitholders | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Information and Distributions to Unitholders | Note 9(a). Income Tax Information and Distributions to Unitholders The tax character of distributions for the years ended December 31, 2023, December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 were as follows(1): 2023 2022 2021 Ordinary income $ 1,817 92.6 % $ 603 86.5 % $ — 0.0 % Capital gains 53 2.7 % 94 13.5 % — 0.0 % Return of capital 92 4.7 % — 0.0 % — 0.0 % Total distributions $ 1,962 100.0 % $ 697 100.0 % $ — 0.0 % As of December 31, 2023, 2022 and 2021 the total accumulated earnings (loss) on a tax basis were as follows(1): 2023 2022 2021 Undistributed ordinary income $ — $ 155 $ — Undistributed long-term net capital gains — — — Total undistributed net earnings — 155 — Post-October capital losses — — — Capital loss carryforward — — — Other book/tax temporary differences (183 ) (197 ) (213 ) Net unrealized depreciation (241 ) (71 ) (136 ) Total tax accumulated loss $ (424 ) $ (113 ) $ (349 ) (1) Tax information for the fiscal years ended December 31, 2023 and December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 are/were estimates and are not final until the Company files its tax returns, typically in October each year. The Company recognizes in its consolidated financial statements the tax effect of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. To the best of our knowledge, we did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25 Note 9(b). Other Tax Information (unaudited) For the fiscal years ended December 31, 2023 and December 31, 2022, none of the ordinary distributions paid during the year were eligible for qualified dividend income treatment or the dividends received deduction for corporate stockholders. For the fiscal years ended December 31, 2023 and December 31, 2022, 98.16% and 99.58%, respectively, of each of the ordinary distributions paid during the year represent interest-related dividends. For the fiscal years ended December 31, 2023 and December 31, 2022, 0.90% and 0%, respectively, of the distributions represent short-term capital gains dividends. There were no distributions during the period January 5, 2021 (commencement of operations) to December 31, 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. On January 23, 2024, the Company, through the SPV, reduced the size of its $75,000 SPV Facility to $35,000. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis, as of December 31, 2023 and December 31, 2022: Fair Value Measurements As of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Bank Debt/Senior Secured Loans $ — $ — $ 63,268 $ 63,268 Warrants 1 — 6 7 Total Investments $ 1 $ — $ 63,274 $ 63,275 Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Bank Debt/Senior Secured Loans $ — $ — $ 43,886 $ 43,886 Warrants — — 11 11 Total Investments $ — $ — $ 43,897 $ 43,897 |
Summary of Changes in Fair Value of Level 3 Assets | The following tables provides a summary of the changes in fair value of Level 3 assets for the years ended December 31, 2023 and 2022, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2023 and 2022: Bank Debt/Senior Warrants Total Fair value, December 31, 2022 $ 43,886 $ 11 $ 43,897 Total gains or losses included in earnings: Net realized gain — — — Net change in unrealized gain (loss) 254 (15 ) 239 Purchase of investment securities* 26,306 15 26,321 Proceeds from dispositions of investment securities (7,178 ) (5 ) (7,183 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Fair value, December 31, 2023 $ 63,268 $ 6 $ 63,274 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 259 $ (18 ) $ 241 Bank Debt/Senior Warrants Total Fair value, December 31, 2021 $ 27,286 $ — $ 27,286 Total gains or losses included in earnings: Net realized gain — — — Net change in unrealized gain (loss) 192 (14 ) 178 Purchase of investment securities* 28,713 25 28,738 Proceeds from dispositions of investment securities (12,305 ) — (12,305 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Fair value, December 31, 2022 $ 43,886 $ 11 $ 43,897 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 243 $ (14 ) $ 229 * Includes PIK capitalization and accretion of discount |
Summary of Company's Level 3 | Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2023 is summarized in the table below: Asset or Fair Value at Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Bank Debt / Senior Secured Loans Asset $ 63,268 Income Approach Market Yield 10.6% – 17.6% Warrants Asset $ 6 Market Approach Volatility 18.9% – 18.9% Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2022 is summarized in the table below: Asset or Fair Value at Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Bank Debt / Senior Secured Loans Asset $ 43,886 Income Approach Market Yield 9.8% – 18.2% Warrants Asset $ 11 Market Approach Volatility 26.0% – 26.0% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | December 31, December 31, AAH Topco, LLC $ 2,262 $ — OIS Management Services, LLC 1,710 — Southern Orthodontic Partners Management, LLC 1,347 670 Ardelyx, Inc. 1,345 696 CVAUSA Management, LLC 1,059 — Retina Midco, Inc. 966 — Orthopedic Care Partners Management, LLC 901 566 United Digestive MSO Parent, LLC 391 — SCP Eye Care, LLC 343 968 Vertos Medical, Inc. 283 — Medrina, LLC 239 — UVP Management, LLC 218 — Urology Management Holdings, Inc. 151 — SunMed Group Holdings, LLC 132 69 Exactcare Parent, Inc. 102 — WCI-BXC 96 — Outset Medical, Inc. — 3,052 Apeel Technology, Inc. — 2,852 Glooko, Inc. — 1,633 Arcutis Biotherapeutics, Inc. — 786 Oral Surgery Partners Holdings, LLC — 843 Plastics Management, LLC — 794 Spectrum Pharmaceuticals, Inc. — 763 Cerapedics, Inc. — 623 Pediatric Home Respiratory Services, LLC — 630 Meditrina, Inc. — 312 Ivy Fertility Services, LLC — 128 BayMark Health Services, Inc. — 128 Total Commitments $ 11,545 $ 15,513 |
Unitholders' Capital (Tables)
Unitholders' Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Summary of Limited Liability Company Unit Holders Capital | Transactions in Unitholders’ capital were as follows: Year ended Year ended Units at beginning of period 888,565 682,427 Units issued 181,077 206,138 Units issued and outstanding at end of period 1,069,642 888,565 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of Financial Highlights | The following is a schedule of financial highlights for the years ended December 31, 2023, December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021: Year ended Year ended For the period Per Unit Data: (a) Net asset value per unit, beginning of period $ 21.77 $ 21.41 $ — Net investment income (loss) 1.33 1.07 (2.97 ) Net realized and unrealized gain 0.28 ** 0.26 0.40 Net increase (decrease) in Unitholders’ capital resulting from operations 1.61 1.33 (2.57 ) Issuance of initial units — — 24.62 ** Offering costs — — (0.64 ) Distributions to Unitholders: From distributable earnings (1.85 ) (0.97 ) — From return of capital (0.06 ) — — Net asset value per unit, end of period $ 21.47 $ 21.77 $ 21.41 Total Return(b)(c) 7.40 % 6.21 % (26.93 )% Unitholders’ capital, end of period $ 22,969 $ 19,348 $ 14,612 Units outstanding, end of period 1,069,642 888,565 682,427 Ratios to average net assets of Unitholders’ Capital (c): Net investment income (loss) 6.08 % 4.91 % (16.59 )% Operating expenses 5.99 % 6.61 % 29.12 % Interest and other credit facility expenses 18.08 % 12.33 % 8.02 % Total expenses 24.07 % 18.94 % 37.14 % Average debt outstanding $ 31,744 $ 20,453 $ 7,352 Portfolio turnover ratio 13.9 % 36.5 % 59.7 % (a) Calculated using the average Units outstanding method. Weighted average Units outstanding for the years ended December 31, 2023, December 31, 2022 and the period March 8, 2021 (date of first sale of units) through December 31, 2021 were 1,029,458, 720,266 and 276,929, respectively. (b) Calculated as the change in net asset value (“NAV”) per Unit during the period plus distributions declared per Unit, divided by the beginning NAV per unit. Total return does not include a sales load. (c) Not annualized for periods less than one year. * Commencement of operations ** Includes the impact of the different unit amounts used in calculating per Unit data as a result of calculating certain per Unit data based upon the weighted average Units outstanding during the period and certain per Unit data based on the Units outstanding as of a period end. |
Income Tax Information and Di_2
Income Tax Information and Distributions to Unitholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Investment Company, Distribution To Shareholders | The tax character of distributions for the years ended December 31, 2023, December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 were as follows(1): 2023 2022 2021 Ordinary income $ 1,817 92.6 % $ 603 86.5 % $ — 0.0 % Capital gains 53 2.7 % 94 13.5 % — 0.0 % Return of capital 92 4.7 % — 0.0 % — 0.0 % Total distributions $ 1,962 100.0 % $ 697 100.0 % $ — 0.0 % |
Schedule Of Total Accumulated Earnings (Loss) | As of December 31, 2023, 2022 and 2021 the total accumulated earnings (loss) on a tax basis were as follows(1): 2023 2022 2021 Undistributed ordinary income $ — $ 155 $ — Undistributed long-term net capital gains — — — Total undistributed net earnings — 155 — Post-October capital losses — — — Capital loss carryforward — — — Other book/tax temporary differences (183 ) (197 ) (213 ) Net unrealized depreciation (241 ) (71 ) (136 ) Total tax accumulated loss $ (424 ) $ (113 ) $ (349 ) (1) Tax information for the fiscal years ended December 31, 2023 and December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 are/were estimates and are not final until the Company files its tax returns, typically in October each year. |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 08, 2021 | Jan. 05, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Unfunded commitments | $ 11,545 | $ 15,513 | ||
Initial Unitholder [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Issuance of common shares shares | 40 | |||
Share price | $ 29.3 | $ 1 | ||
Capital commitments | 83,850 | |||
Issuance of common shares value | $ 3,500 | |||
Withdrawal of capital commitments | 24,000 | |||
Unfunded commitments | $ 59,850 | |||
First Lien Health Care Cash Flow Loans [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument maturity date | five to six year | |||
Debt Instrument, Frequency of Periodic Payment | three years | |||
Debt Instrument, Payment Terms | often repaid within three years | |||
First Lien Health Care Cash Flow Loans [Member] | Maximum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument carrying amount | $ 300,000 | |||
Debt Instrument, Term | 6 years | |||
First Lien Health Care Cash Flow Loans [Member] | Maximum [Member] | EBITDA Concentration Risk [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Earnings Before Interest Tax Depreciation And Amortization | $ 100,000 | |||
First Lien Health Care Cash Flow Loans [Member] | Minimum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument carrying amount | $ 100,000 | |||
Debt Instrument, Term | 5 years | |||
First Lien Health Care Cash Flow Loans [Member] | Minimum [Member] | EBITDA Concentration Risk [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Earnings Before Interest Tax Depreciation And Amortization | $ 25,000 | |||
First Lien Life Science Loans [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument maturity date | four to five year | |||
Debt Instrument, Payment Terms | often repaid within two to three years | |||
First Lien Life Science Loans [Member] | Maximum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument carrying amount | $ 150,000 | |||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Frequency of Periodic Payment | three years | |||
First Lien Life Science Loans [Member] | Minimum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Debt instrument carrying amount | $ 25,000 | |||
Debt Instrument, Term | 4 years | |||
Debt Instrument, Frequency of Periodic Payment | two years |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |
Excise tax rate | 4% |
Amount of Reclassification | $ 23 |
Agreements and Related Party _2
Agreements and Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of pre exchange management fee on invested capital | 1.50% | ||||
Percentage of Post-Exchange Listing Management Fee on Entity Average Assets | 1.50% | ||||
Percentage of Entity Average Assets Threshold | 1% | ||||
Precentage of product payment | 200% | ||||
Percentage of cummulative capital realized gains | 20% | ||||
Percentage of Post-Exchange Listing Management Fee on Entity Gross Assets | 1.50% | ||||
Percentage pre incentive fee net investment income | 100% | ||||
Percentage of realized capital gains | 20% | ||||
Percentage of average cost basis | 0.08% | ||||
Management fee expense | $ 565 | $ 419 | $ 224 | [1] | |
Administrative fees expense | 42 | 27 | 9 | [1] | |
Incentive fee expense | $ 0 | $ 0 | $ 0 | ||
Product of capital commitment | 0.0025 | ||||
Affiliate Costs | $ 500 | ||||
Offering expenses | $ 177 | ||||
Organizational costs | $ 229 | ||||
Type of agreement, First [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Precentage of return of capital contributions | 100% | ||||
Percentage of current proceeds to unitholders | 100% | ||||
Type of agreement, Second [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to unitholders | 100% | ||||
Percentage of current proceeds to advisers | 100% | ||||
Type of agreement, Third [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to adviser | 100% | ||||
Quarterly [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of hurdle rate | 1.50% | ||||
Percentage pre incentive fee net investment income | 1.875% | ||||
Annually [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of hurdle rate | 6% | ||||
Percentage pre incentive fee net investment income | 7.50% | ||||
Pre Exchange Listing Incentive Fee [Member] | Type of agreement, Third [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of current proceeds to unitholders | 90% | ||||
Percentage of current proceeds to advisers | 10% | ||||
Pre Exchange Listing Incentive Fee [Member] | Type of agreement, Fourth [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to unitholders | 90% | ||||
Percentage of remaining disposition proceeds to adviser | 10% | ||||
Adviser [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage pre incentive fee net investment income | 20% | ||||
Minimum [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Commitments | $ 400,000 | ||||
Capital commitments | $ 1,250 | ||||
Minimum [Member] | Type of agreement, Second [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to unitholders | 6% | ||||
Minimum [Member] | Type of agreement, Third [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Pecentage of amount due to unitholders | 10% | ||||
Percentage of current proceeds to unitholders | 10% | ||||
Minimum [Member] | Type of agreement, Fourth [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to unitholders | 10% | ||||
Maximum [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Commitments | $ 400,000 | ||||
Capital commitments | $ 2,250 | ||||
Maximum [Member] | Type of agreement, Second [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Pecentage of amount due to unitholders | 10% | ||||
Maximum [Member] | Type of agreement, Third [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of current proceeds to unitholders | 90% | ||||
Maximum [Member] | Type of agreement, Fourth [Member] | |||||
Agreements And Related Party Transactions [Line Items] | |||||
Percentage of remaining disposition proceeds to unitholders | 90% | ||||
[1]Commencement of operations |
Fair Value - Summary of Assets
Fair Value - Summary of Assets Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | $ 63,275 | $ 43,897 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 1 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 63,274 | 43,897 |
Bank Debt Senior Secured Loans [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 63,268 | 43,886 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 63,268 | 43,886 |
Warrant [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 7 | 11 |
Warrant [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 1 | 0 |
Warrant [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, Fair Value Disclosure | $ 6 | $ 11 |
Fair Value - Summary of Changes
Fair Value - Summary of Changes in Fair Value of Level 3 Assets (Detail) - Investments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $ 43,897 | $ 27,286 | |
Total gains or losses included in earnings: | |||
Purchase of investment securities | [1] | 26,321 | 28,738 |
Proceeds from dispositions of investment securities | (7,183) | (12,305) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Closing balance | 63,274 | 43,897 | |
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: | |||
Net change in unrealized gain (loss) | 241 | 229 | |
Realized Investment Gains Losses [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | 0 | 0 | |
Unrealized Gain Loss On Investments [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | 239 | 178 | |
Bank Debt Senior Secured Loans [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 43,886 | 27,286 | |
Total gains or losses included in earnings: | |||
Purchase of investment securities | [1] | 26,306 | 28,713 |
Proceeds from dispositions of investment securities | (7,178) | (12,305) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Closing balance | 63,268 | 43,886 | |
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: | |||
Net change in unrealized gain (loss) | 259 | 243 | |
Bank Debt Senior Secured Loans [Member] | Realized Investment Gains Losses [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | 0 | 0 | |
Bank Debt Senior Secured Loans [Member] | Unrealized Gain Loss On Investments [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | 254 | 192 | |
Warrant [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 11 | 0 | |
Total gains or losses included in earnings: | |||
Purchase of investment securities | [1] | 15 | 25 |
Proceeds from dispositions of investment securities | (5) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Closing balance | 6 | 11 | |
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: | |||
Net change in unrealized gain (loss) | (18) | (14) | |
Warrant [Member] | Realized Investment Gains Losses [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | 0 | 0 | |
Warrant [Member] | Unrealized Gain Loss On Investments [Member] | |||
Total gains or losses included in earnings: | |||
Unrealized gain (loss) | $ (15) | $ (14) | |
[1]Includes PIK capitalization and accretion of discount |
Fair Value - Summary of Company
Fair Value - Summary of Company's Level 3 (Detail) - Fair Value, Recurring [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | $ 63,275 | $ 43,897 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | 63,274 | 43,897 |
Bank Debt Senior Secured Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | 63,268 | 43,886 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | $ 63,268 | $ 43,886 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Market Yield [Member] | Valuation, Income Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset or Liability | Asset | Asset |
Investments, Fair Value Disclosure | $ 63,268 | $ 43,886 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Market Yield [Member] | Valuation, Income Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Trading, Measurement Input | 10.6 | 9.8 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Market Yield [Member] | Valuation, Income Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Trading, Measurement Input | 17.6 | 18.2 |
Bank Debt Senior Secured Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Market Yield [Member] | Valuation, Income Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Trading, Measurement Input | 13 | 12.5 |
Warrant [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | $ 7 | $ 11 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, Fair Value Disclosure | $ 6 | $ 11 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Price Volatility [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset or Liability | Asset | Asset |
Investments, Fair Value Disclosure | $ 6 | $ 11 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Price Volatility [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset, Measurement Input | 18.9 | 26 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Price Volatility [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset, Measurement Input | 18.9 | 26 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Price Volatility [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset, Measurement Input | 18.9 | 26 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
SPV Facility [Member] | ||
Fair Value [Line Items] | ||
Debt instrument carrying amount | $ 24,210 | $ 14,675 |
Subscription Facility [Member] | ||
Fair Value [Line Items] | ||
Debt instrument carrying amount | $ 17,550 | $ 13,800 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 18, 2022 | Mar. 19, 2021 | |
Line of Credit Facility [Line Items] | ||||
Long-Term Debt, Weighted Average Interest Rate, over Time | 8.11% | 4.88% | ||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 44,010 | $ 32,775 | ||
SPV Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-Term Debt, Gross | 24,210 | 14,675 | ||
Subscription Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-Term Debt, Gross | $ 17,550 | $ 13,800 | ||
JPMorgan Chase Bank, N.A. [Member] | SPV Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Expiration Date | Feb. 18, 2027 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.875% | |||
Line of Credit Facility, Collateral | The SPV Facility is secured by all of the assets held by the SPV | |||
Long-Term Debt, Gross | $ 24,210 | |||
JPMorgan Chase Bank, N.A. [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | SPV Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.07% | |||
Debt Instrument, Description of Variable Rate Basis | Term SOFR | |||
Debt Instrument, Description Of Floor Requirement | no SOFR | |||
JPMorgan Chase Bank, N.A. [Member] | Maximum [Member] | SPV Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | |||
JPMorgan Chase Bank, N.A. [Member] | Minimum [Member] | SPV Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
ING Capital LLC [Member] | Subscription Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | |||
Line of Credit Facility, Expiration Date | Mar. 15, 2024 | |||
ING Capital LLC [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Subscription Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | SOFR | |||
ING Capital LLC [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Subscription Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3% | |||
ING Capital LLC [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Subscription Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Unfunded Commitments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | $ 11,545 | $ 15,513 |
Outset Medical, Inc [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 3,052 |
Apeel Technology, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 2,852 |
Glooko, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 1,633 |
SCP Eye Care, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 343 | 968 |
Oral Surgery Partners Holdings, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 843 |
Plastics Management, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 794 |
Arcutis Biotherapetics, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 786 |
Spectrum Pharmaceuticals, Inc [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 763 |
Ardelyx, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 1,345 | 696 |
Southern Orthodonic Partners Management, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 1,347 | 670 |
Pediatric Home Respiratory Services, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 630 |
Cerapedics Inc [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 623 |
Orthopedic Care Partners Management, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 901 | 566 |
Meditrina, Inc [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 312 |
Ivy Fertility Services, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 128 |
BayMark Health Services, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 0 | 128 |
SunMed Group Holdings, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 132 | 69 |
OIS Management Services, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 1,710 | 0 |
WCIBXC Purchaser, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 96 | 0 |
Exactcare Parent, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 102 | 0 |
Urology Management Holdings, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 151 | 0 |
UVP Management, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 218 | 0 |
Medrina, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 239 | 0 |
Vertos Medical, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 283 | 0 |
United Digestive MSO Parent, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 391 | 0 |
Retina Midco, Inc. [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 966 | 0 |
CVAUSA Management, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | 1,059 | 0 |
AAH Topco, LLC [Member] | ||
Summary Of Unfunded Commitments [Line Items] | ||
Unfunded Commitments | $ 2,262 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded Commitments | $ 11,545 | $ 15,513 |
Unitholders' Capital - Summary
Unitholders' Capital - Summary of Limited Liability Company Unit Holders Capital (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Equity [Abstract] | ||||
Units at beginning of period | [1],[2] | 888,565 | 682,427 | [3] |
Units issued | 181,077 | 206,138 | ||
Units issued at end of period | 1,069,642 | 888,565 | ||
Units outstanding at end of period | [1],[2] | 1,069,642 | 888,565 | |
[1]Calculated as the change in net asset value (“NAV”) per Unit during the period plus distributions declared per Unit, divided by the beginning NAV per unit. Total return does not include a sales load.[2]Not annualized for periods less than one year.[3]Commencement of operations |
Financial Highlights - Summary
Financial Highlights - Summary of Financial Highlights (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [2] | ||||
Investment Company, Financial Highlights [Line Items] | |||||||
Net asset value per unit, beginning of period | [1] | $ 21.77 | $ 21.41 | [2] | $ 0 | ||
Net investment income (loss) | [1] | 1.33 | 1.07 | (2.97) | |||
Net realized and unrealized gain | [1] | 0.28 | [3] | 0.26 | 0.4 | ||
Net increase (decrease) in Unitholders' capital resulting from operations | [1] | 1.61 | 1.33 | (2.57) | |||
Issuance of initial units | [1] | 0 | 0 | 24.62 | [3] | ||
Offering costs | [1] | 0 | 0 | (0.64) | |||
From distributable earnings | [1] | (1.85) | (0.97) | 0 | |||
From return of capital | [1] | (0.06) | 0 | 0 | |||
Net asset value per unit, end of period | [1] | $ 21.47 | $ 21.77 | $ 21.41 | |||
Total Return | [4],[5] | 7.40% | 6.21% | (26.93%) | |||
Unitholders' capital, end of period | [4],[5] | $ 22,969 | $ 19,348 | $ 14,612 | |||
Units outstanding, end of period | [4],[5] | 1,069,642 | 888,565 | 682,427 | |||
Ratios to average net assets of Unitholders' Capital : | |||||||
Net investment income (loss) | [5] | 6.08% | 4.91% | (16.59%) | |||
Operating expenses | [5] | 5.99% | 6.61% | 29.12% | |||
Interest and other credit facility expenses | [5] | 18.08% | 12.33% | 8.02% | |||
Total expenses | [5] | 24.07% | 18.94% | 37.14% | |||
Portfolio turnover ratio | [5] | 13.90% | 36.50% | 59.70% | |||
Average debt outstanding | [5] | $ 31,744 | $ 20,453 | $ 7,352 | |||
[1]Calculated using the average Units outstanding method. Weighted average Units outstanding for the years ended December 31, 2023, December 31, 2022 and the period March 8, 2021 (date of first sale of units) through December 31, 2021 were 1,029,458, 720,266 and 276,929, respectively.[2]Commencement of operations[3]Includes the impact of the different unit amounts used in calculating per Unit data as a result of calculating certain per Unit data based upon the weighted average Units outstanding during the period and certain per Unit data based on the Units outstanding as of a period end.[4]Calculated as the change in net asset value (“NAV”) per Unit during the period plus distributions declared per Unit, divided by the beginning NAV per unit. Total return does not include a sales load.[5]Not annualized for periods less than one year. |
Financial Highlights - Summar_2
Financial Highlights - Summary of Financial Highlights (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Company, Financial Highlights [Line Items] | |||
Weighted average number of units outstanding | 1,029,458 | 720,266 | 276,929 |
Income Tax Information and Di_3
Income Tax Information and Distributions to Unitholders - Schedule of Investment Company, Distribution To Shareholders (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | ||
Schedule of Investments [Line Items] | |||||
Ordinary income | $ 1,817 | $ 603 | $ 0 | ||
Capital gains | 53 | 94 | 0 | ||
Return of capital | 92 | 0 | 0 | $ 0 | [1] |
Total distributions | $ 1,962 | $ 697 | $ 0 | $ 0 | |
Ordinary income Percent | 92.60% | 86.50% | 0% | ||
Capital gains Percent | 2.70% | 13.50% | 0% | ||
Return of capital Percent | 4.70% | 0% | 0% | ||
Total distributions Percent | 100% | 100% | 0% | ||
[1]Commencement of operations |
Income Tax Information and Di_4
Income Tax Information and Distributions to Unitholders - Schedule Of Total Accumulated Earnings (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Undistributed ordinary income | [1] | $ 0 | $ 155 | $ 0 |
Undistributed long-term net capital gains | [1] | 0 | 0 | 0 |
Total undistributed net earnings | [1] | 0 | 155 | 0 |
Post-October capital losses | [1] | 0 | 0 | 0 |
Capital loss carryforward | [1] | 0 | 0 | 0 |
Other book/tax temporary differences | [1] | (183) | (197) | (213) |
Net unrealized depreciation | [1] | (241) | (71) | (136) |
Total tax accumulated loss | [1] | $ (424) | $ (113) | $ (349) |
[1]Tax information for the fiscal years ended December 31, 2023 and December 31, 2022 and the period January 5, 2021 (commencement of operations) to December 31, 2021 are/were estimates and are not final until the Company files its tax returns, typically in October each year. |
Income Tax Information and Di_5
Income Tax Information and Distributions to Unitholders - Additional information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Investment Company,Dividend Distribution, eligible for qualified dividend income treatment or the dividends received deduction for corporate stockholders Percent | 0 | 0 | ||
Investment Company, Dividend Distribution, interestrelated dividends Percent | 98.16 | 99.58 | ||
Investment Company, Dividend Distribution, shortterm capital gains, Percent | 0.9 | 0 | ||
Investment Company, Dividend Distribution | $ 1,962 | $ 697 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional information (Detail) - SPV Facility [Member] - Subsequent Event [Member] $ in Thousands | Jan. 23, 2024 USD ($) |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Line of credit facility maximum borrowing capacity | $ 75,000 |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Line of credit facility maximum borrowing capacity | $ 35,000 |