Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 09, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Registrant Name | Kayne DL 2021, Inc. | ||
Trading Symbol | None | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 25,668 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001850787 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Securities Act File Number | 814-01393 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 86-2440860 | ||
Entity Address, Address Line One | 811 Main Street | ||
Entity Address, Address Line Two | 14th Floor | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 493-2020 | ||
Title of 12(b) Security | None | ||
Security Exchange Name | NONE | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Los Angeles, California |
Consolidated Statement of Asset
Consolidated Statement of Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, at fair value: | ||
Long-term investments (amortized cost of $105,083 and $11,499) | $ 107,312 | $ 11,761 |
Short-term investments (amortized cost of $31,239) | 31,239 | |
Cash and cash equivalents | 715 | 266 |
Deferred offering costs | 137 | |
Receivable for principal payments on investments | 22 | |
Interest receivable | 972 | 12 |
Prepaid expenses and other assets | 101 | 112 |
Total Assets | 109,122 | 43,527 |
Liabilities: | ||
Subscription Credit Facility (Note 6) | 750 | |
Unamortized Subscription Credit Facility issuance costs | (35) | |
Payable for investments purchased | 137 | |
Distributions payable | 1,768 | |
Payable to affiliate | 471 | |
Management fee payable | 156 | 2 |
Accrued expenses and other liabilities | 438 | 175 |
Total Liabilities | 3,214 | 648 |
Commitments and contingencies (Note 8) | ||
Net Assets: | ||
Common Shares, $0.001 par value; 100,000 shares authorized; 20,554 and 8,600 as of December 31, 2022 and 2021, respectively, issued and outstanding | ||
Additional paid-in capital | 103,811 | 42,824 |
Total distributable earnings (deficit) | 2,097 | 55 |
Total Net Assets | 105,908 | 42,879 |
Total Liabilities and Net Assets | $ 109,122 | $ 43,527 |
Net Asset Value Per Common Share (in Dollars per share) | $ 5,153 | $ 4,986 |
Consolidated Statement of Ass_2
Consolidated Statement of Assets and Liabilities (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Long-term investments (amortized cost) (in Dollars) | $ 105,083 | $ 11,499 |
Short-term investments (amortized cost) (in Dollars) | $ 31,239 | |
Common Shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common Shares, shares authorized | 100,000 | 100,000 |
Common Shares, shares issued | 20,554 | 8,600 |
Common Shares, shares outstanding | 20,554 | 8,600 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Investment income from investments: | |||
Interest income | $ 4,338 | $ 17 | |
Total investment income from investments | 4,338 | 17 | |
Total Investment Income | 4,338 | 17 | |
Expenses: | |||
Interest expense | 215 | ||
Management fees | 337 | 2 | |
Professional fees | 389 | 153 | |
Directors fees | 115 | 8 | |
Offering costs | 137 | 6 | |
Initial organization costs | 208 | ||
Other general and administrative expenses | 307 | 23 | |
Total Expenses | 1,500 | 400 | |
Net Investment Income (Loss) | 2,838 | (383) | |
Net realized gains (losses): | |||
Investments | 1 | ||
Total net realized gains (losses) | 1 | ||
Net change in unrealized gains (losses): | |||
Investments | 1,968 | 262 | |
Total net change in unrealized gains (losses) | 1,968 | 262 | |
Total realized and unrealized gains (losses) | 1,969 | 262 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 4,807 | $ (121) | |
Per Common Share Data: | |||
Basic and diluted net investment income per common share (in Dollars per share) | [1] | $ 257 | $ (58) |
Basic and diluted net increase in net assets resulting from operations (in Dollars per share) | $ 435 | $ (18) | |
Weighted Average Common Shares Outstanding - Basic and Diluted (in Shares) | 11,046 | 6,600 | |
[1]The per common share data was derived by using weighted average shares outstanding. |
Consolidated Statement of Ope_2
Consolidated Statement of Operations (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Basic and diluted net increase in net assets resulting from operations (in Dollars per share) | $ 435 | $ (18.33) |
Weighted Average Common Shares Outstanding - Basic and Diluted (in Shares) | 11,046 | 6,600 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Net Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Net Assets Resulting from Operations: | ||
Net investment income (loss) | $ 2,838 | $ (383) |
Net realized gains (losses) on investments | 1 | |
Net change in unrealized gains (losses) on investments | 1,968 | 262 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 4,807 | (121) |
Decrease in Net Assets Resulting from Stockholder Distributions | ||
Dividends and distributions to stockholders | (2,901) | |
Net Decrease in Net Assets Resulting from Stockholder Distributions | (2,901) | |
Increase in Net Assets Resulting from Capital Share Transactions | ||
Issuance of common shares | 60,000 | 43,000 |
Reinvestment of distributions | 1,123 | |
Net Increase in Net Assets Resulting from Capital Share Transactions | 61,123 | 43,000 |
Total Increase (Decrease) in Net Assets | 63,029 | 42,879 |
Net Assets, Beginning of Period | 42,879 | |
Net Assets, End of Period | $ 105,908 | $ 42,879 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net increase (decrease) in net assets resulting from operations | $ 4,807 | $ (121) |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities: | ||
Net realized (gains)/losses on investments | (1) | |
Net change in unrealized (gains)/losses on investments | (1,968) | (262) |
Net accretion of discount on investments | (216) | (1) |
(Purchases)/sales of short-term investments, net | 31,239 | (31,239) |
Purchases of portfolio investments | (95,709) | (11,504) |
Proceeds from sales of investments and principal repayments | 2,343 | 6 |
Amortization of deferred financing cost | 90 | |
Increase/(decrease) in operating assets and liabilities: | ||
(Increase)/decrease in interest and dividends receivable | (960) | (12) |
(Increase)/decrease in deferred offering costs | 137 | (137) |
(Increase)/decrease in receivable for principal payments on investments | (22) | |
(Increase)/decrease in prepaid expenses and other assets | 11 | (112) |
Increase/(decrease) in payable for investments purchased | 137 | |
Increase/(decrease) in management fees payable | 154 | 2 |
Increase/(decrease) in accrued organizational and offering costs, net | (471) | 471 |
Increase/(decrease) in accrued other general and administrative expenses | 263 | 175 |
Net cash used in operating activities | (60,166) | (42,734) |
Cash Flows from Financing Activities: | ||
Borrowings on subscription credit facility, net | 750 | |
Payments of debt issuance costs | (125) | |
Distributions paid in cash | (10) | |
Proceeds from issuance of common shares | 60,000 | 43,000 |
Net cash provided by financing activities | 60,615 | 43,000 |
Net increase in cash and cash equivalents | 449 | 266 |
Cash and cash equivalents, beginning of period | 266 | |
Cash and cash equivalents, end of period | 715 | 266 |
Supplemental and Non-Cash Information: | ||
Interest paid during the period | 111 | |
Non-cash financing activities not included herein consisted of reinvestment of dividends | $ 1,123 |
Consolidated Schedule of Invest
Consolidated Schedule of Investments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |||
Food products [Member] | BR PJK Produce, LLC (Keany) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 4,772 | |||
Amortized Cost | [1] | $ 4,649 | |||
Percentage of Net Assets | [1] | 4.50% | |||
Investment Interest Rate | 6.25% | ||||
Principal / Par | [1] | $ 4,772 | |||
Maturity Date | [1] | Nov. 14, 2027 | |||
Cost | [1] | $ 4,649 | |||
Food products [Member] | BR PJK Produce, LLC (Keany) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.47% | ||||
Private Credit Investments [Member] | Software & services [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 421 | |||
Amortized Cost | [3],[4],[5],[6] | $ 413 | |||
Percentage of Net Assets | [4],[5] | 1% | |||
Principal / Par | [4],[5] | $ 421 | |||
Cost | [3],[4],[5],[6] | 413 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 4,881 | |||
Amortized Cost | [1],[2],[3],[7] | $ 4,755 | |||
Percentage of Net Assets | [1],[7] | 4.60% | |||
Principal / Par | [1],[7] | $ 4,885 | |||
Cost | [1],[2],[3],[7] | 4,755 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured revolving loan [Member] | Basel U.S. Acquisition Co., Inc. (IAC) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7],[8] | ||||
Amortized Cost | [1],[2],[3],[7],[8] | ||||
Percentage of Net Assets | [1],[7],[8] | 0% | |||
Interest Rate | 6.50% | ||||
Principal / Par | [1],[7],[8] | ||||
Maturity Date | [1],[7],[8] | Dec. 05, 2028 | |||
Cost | [1],[2],[3],[7],[8] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured revolving loan [Member] | Basel U.S. Acquisition Co., Inc. (IAC) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 11.10% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured loan [Member] | Basel U.S. Acquisition Co., Inc. (IAC) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 4,601 | |||
Amortized Cost | [1],[2],[3],[7] | $ 4,477 | |||
Percentage of Net Assets | [1],[7] | 4.30% | |||
Interest Rate | 6.50% | ||||
Principal / Par | [1],[7] | $ 4,601 | |||
Maturity Date | [1],[7] | Dec. 05, 2028 | |||
Cost | [1],[2],[3],[7] | $ 4,477 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured loan [Member] | Basel U.S. Acquisition Co., Inc. (IAC) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 11.10% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured loan One [Member] | Precinmac (US) Holdings, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 280 | |||
Amortized Cost | [1],[2],[3],[7] | $ 278 | |||
Percentage of Net Assets | [1],[7] | 0.30% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | $ 284 | |||
Maturity Date | [1],[7] | Aug. 31, 2027 | |||
Cost | [1],[2],[3],[7] | $ 278 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Aerospace & defense [Member] | First lien senior secured loan One [Member] | Precinmac (US) Holdings, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Asset management & custody banks [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 212 | |||
Amortized Cost | [1],[2],[3],[7] | $ 187 | |||
Percentage of Net Assets | [1],[7] | 0.20% | |||
Principal / Par | [1],[7] | $ 216 | |||
Cost | [1],[2],[3],[7] | 187 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Asset management & custody banks [Member] | First lien senior secured delayed draw loan [Member] | Atria Wealth Solutions, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | 212 | |||
Amortized Cost | [1],[2],[3],[7] | $ 187 | |||
Percentage of Net Assets | [1],[7] | 0.20% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | $ 216 | |||
Maturity Date | [1],[7] | Feb. 29, 2024 | |||
Cost | [1],[2],[3],[7] | $ 187 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Asset management & custody banks [Member] | First lien senior secured delayed draw loan [Member] | Atria Wealth Solutions, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.84% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Auto components [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 1,701 | |||
Amortized Cost | [1],[2],[3],[7] | $ 1,689 | |||
Percentage of Net Assets | [1],[7] | 1.60% | |||
Principal / Par | [1],[7] | $ 1,714 | |||
Cost | [1],[2],[3],[7] | 1,689 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Auto components [Member] | First lien senior secured loan [Member] | Vehicle Accessories, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | 1,701 | |||
Amortized Cost | [1],[2],[3],[7] | $ 1,689 | |||
Percentage of Net Assets | [1],[7] | 1.60% | |||
Interest Rate | 5.50% | ||||
Principal / Par | [1],[7] | $ 1,714 | |||
Maturity Date | [1],[7] | Nov. 30, 2026 | |||
Cost | [1],[2],[3],[7] | $ 1,689 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Auto components [Member] | First lien senior secured loan [Member] | Vehicle Accessories, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.34% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 4,069 | |||
Amortized Cost | [1],[2],[3],[7] | $ 3,935 | |||
Percentage of Net Assets | [1],[7] | 3.80% | |||
Principal / Par | [1],[7] | $ 4,110 | |||
Cost | [1],[2],[3],[7] | 3,935 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured revolving loan [Member] | Alcami Corporation (Alcami) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | ||||
Amortized Cost | [1],[2],[3],[7] | ||||
Percentage of Net Assets | [1],[7] | 0% | |||
Interest Rate | 7% | ||||
Principal / Par | [1],[7] | ||||
Maturity Date | [1],[7] | Dec. 21, 2028 | |||
Cost | [1],[2],[3],[7] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured revolving loan [Member] | Alcami Corporation (Alcami) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 11.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured loan [Member] | Alcami Corporation (Alcami) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 4,069 | |||
Amortized Cost | [1],[2],[3],[7] | $ 3,935 | |||
Percentage of Net Assets | [1],[7] | 3.80% | |||
Interest Rate | 7% | ||||
Principal / Par | [1],[7] | $ 4,110 | |||
Maturity Date | [1],[7] | Dec. 21, 2028 | |||
Cost | [1],[2],[3],[7] | $ 3,935 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured loan [Member] | Alcami Corporation (Alcami) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 11.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured delayed draw loan [Member] | Alcami Corporation (Alcami) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | ||||
Amortized Cost | [1],[2],[3],[7] | ||||
Percentage of Net Assets | [1],[7] | 0% | |||
Interest Rate | 7% | ||||
Principal / Par | [1],[7] | ||||
Maturity Date | [1],[7] | Jun. 30, 2024 | |||
Cost | [1],[2],[3],[7] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Biotechnology [Member] | First lien senior secured delayed draw loan [Member] | Alcami Corporation (Alcami) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 11.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,282 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,237 | |||
Percentage of Net Assets | [1],[7] | 2.20% | |||
Principal / Par | [1],[7] | $ 2,271 | |||
Cost | [1],[2],[3],[7] | 2,237 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured revolving loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | ||||
Amortized Cost | [1],[2],[3],[7] | ||||
Percentage of Net Assets | [1],[7] | 0% | |||
Interest Rate | 5.50% | ||||
Principal / Par | [1],[7] | ||||
Maturity Date | [1],[7] | Jun. 14, 2027 | |||
Cost | [1],[2],[3],[7] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured revolving loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 9.70% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,197 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,155 | |||
Percentage of Net Assets | [1],[7] | 2.10% | |||
Interest Rate | 5.50% | ||||
Principal / Par | [1],[7] | $ 2,186 | |||
Maturity Date | [1],[7] | Dec. 14, 2027 | |||
Cost | [1],[2],[3],[7] | $ 2,155 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.23% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 85 | |||
Amortized Cost | [1],[2],[3],[7] | $ 82 | |||
Percentage of Net Assets | [1],[7] | 0.10% | |||
Interest Rate | 5.50% | ||||
Principal / Par | [1],[7] | $ 85 | |||
Maturity Date | [1],[7] | Dec. 14, 2027 | |||
Cost | [1],[2],[3],[7] | $ 82 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Building products [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 9.70% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Chemicals [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 256 | |||
Amortized Cost | [1],[2],[3],[7] | $ 251 | |||
Percentage of Net Assets | [1],[7] | 0.20% | |||
Principal / Par | [1],[7] | $ 256 | |||
Cost | [1],[2],[3],[7] | 251 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Chemicals [Member] | First lien senior secured loan [Member] | Schrieve Chemical Company, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | 256 | |||
Amortized Cost | [1],[2],[3],[7] | $ 251 | |||
Percentage of Net Assets | [1],[7] | 0.20% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | $ 256 | |||
Maturity Date | [1],[7] | Dec. 02, 2024 | |||
Cost | [1],[2],[3],[7] | $ 251 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Chemicals [Member] | First lien senior secured loan [Member] | Schrieve Chemical Company, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.33% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured revolving loan [Member] | Allentown, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 103 | |||
Amortized Cost | [1],[2],[3],[7] | $ 102 | |||
Percentage of Net Assets | [1],[7] | 0.10% | |||
Interest Rate | 5% | ||||
Principal / Par | [1],[7] | $ 106 | |||
Maturity Date | [1],[7] | Apr. 22, 2027 | |||
Cost | [1],[2],[3],[7] | $ 102 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured revolving loan [Member] | Allentown, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 12.50% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured revolving loan [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 90 | |||
Amortized Cost | [1],[2],[3],[7] | $ 87 | |||
Percentage of Net Assets | [1],[7] | 0.10% | |||
Interest Rate | 6.25% | ||||
Principal / Par | [1],[7] | $ 91 | |||
Maturity Date | [1],[7] | Feb. 01, 2027 | |||
Cost | [1],[2],[3],[7] | $ 87 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured revolving loan [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.67% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan [Member] | Allentown, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,214 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,256 | |||
Percentage of Net Assets | [1],[7] | 2.10% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | $ 2,276 | |||
Maturity Date | [1],[7] | Apr. 22, 2027 | |||
Cost | [1],[2],[3],[7] | $ 2,256 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan [Member] | Allentown, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 1,975 | |||
Amortized Cost | [1],[2],[3],[7] | $ 1,952 | |||
Percentage of Net Assets | [1],[7] | 1.90% | |||
Interest Rate | 6.50% | ||||
Principal / Par | [1],[7] | $ 2,000 | |||
Maturity Date | [1],[7] | Feb. 01, 2027 | |||
Cost | [1],[2],[3],[7] | $ 1,952 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.21% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan One [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,695 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,683 | |||
Percentage of Net Assets | [1],[7] | 2.50% | |||
Interest Rate | 6.25% | ||||
Principal / Par | [1],[7] | $ 2,729 | |||
Maturity Date | [1],[7] | Feb. 01, 2027 | |||
Cost | [1],[2],[3],[7] | $ 2,683 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured loan One [Member] | BLP Buyer, Inc. (Bishop Lifting Products) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.49% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured delayed draw loan [Member] | Allentown, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | ||||
Amortized Cost | [1],[2],[3],[7] | ||||
Percentage of Net Assets | [1],[7] | 0% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | ||||
Maturity Date | [1],[7] | Oct. 22, 2023 | |||
Cost | [1],[2],[3],[7] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured delayed draw loan [Member] | Allentown, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured delayed draw loan [Member] | American Equipment Holdings LLC [Member] | |||||
Aerospace & defense | |||||
Amortized Cost | $ (61) | ||||
Percentage of Net Assets | 0% | ||||
Interest Rate | 6% | ||||
Maturity Date | Nov. 05, 2026 | ||||
Cost | $ (61) | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Commercial services & supplies [Member] | First lien senior secured delayed draw loan [Member] | American Equipment Holdings LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.88% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Bishop Lifting Products [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 7,077 | ||||
Amortized Cost | [2],[3] | $ 7,019 | |||
Percentage of Net Assets | 6.70% | ||||
Principal / Par | $ 7,202 | ||||
Cost | [2],[3] | 7,019 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | 5,538 | |||
Amortized Cost | [1],[2],[3],[7] | $ 5,428 | |||
Percentage of Net Assets | [1],[7] | 5.20% | |||
Principal / Par | [1],[7] | $ 5,513 | |||
Cost | [1],[2],[3],[7] | 5,428 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured revolving loan [Member] | FCA, LLC (FCA Packaging) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | ||||
Amortized Cost | [1],[2],[3],[7] | ||||
Percentage of Net Assets | [1],[7] | 0% | |||
Interest Rate | 6.50% | ||||
Principal / Par | [1],[7] | ||||
Maturity Date | [1],[7] | Jul. 18, 2028 | |||
Cost | [1],[2],[3],[7] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured revolving loan [Member] | FCA, LLC (FCA Packaging) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 9.46% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured loan [Member] | Drew Foam Companies, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,993 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,949 | |||
Percentage of Net Assets | [1],[7] | 2.80% | |||
Interest Rate | 6.75% | ||||
Principal / Par | [1],[7] | $ 2,993 | |||
Maturity Date | [1],[7] | Nov. 05, 2025 | |||
Cost | [1],[2],[3],[7] | $ 2,949 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured loan [Member] | Drew Foam Companies, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.89% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured loan [Member] | FCA, LLC (FCA Packaging) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 2,545 | |||
Amortized Cost | [1],[2],[3],[7] | $ 2,479 | |||
Percentage of Net Assets | [1],[7] | 2.40% | |||
Interest Rate | 6.50% | ||||
Principal / Par | [1],[7] | $ 2,520 | |||
Maturity Date | [1],[7] | Jul. 18, 2028 | |||
Cost | [1],[2],[3],[7] | $ 2,479 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Containers & packaging [Member] | First lien senior secured loan [Member] | FCA, LLC (FCA Packaging) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 9.46% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Diversified telecommunication services [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 1,745 | |||
Amortized Cost | [1],[2],[3],[7] | $ 1,742 | |||
Percentage of Net Assets | [1],[7] | 1.60% | |||
Principal / Par | [1],[7] | $ 1,771 | |||
Cost | [1],[2],[3],[7] | 1,742 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Diversified telecommunication services [Member] | First lien senior secured loan One [Member] | Pavion Corp., f/k/a Corbett Technology Solutions, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | 827 | |||
Amortized Cost | [1],[2],[3],[7] | $ 825 | |||
Percentage of Net Assets | [1],[7] | 0.80% | |||
Interest Rate | 5% | ||||
Principal / Par | [1],[7] | $ 839 | |||
Maturity Date | [1],[7] | Oct. 29, 2027 | |||
Cost | [1],[2],[3],[7] | $ 825 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Diversified telecommunication services [Member] | First lien senior secured loan One [Member] | Pavion Corp., f/k/a Corbett Technology Solutions, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 9.58% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Diversified telecommunication services [Member] | First lien senior secured loan [Member] | Pavion Corp., f/k/a Corbett Technology Solutions, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 918 | |||
Amortized Cost | [1],[2],[3],[7] | $ 917 | |||
Percentage of Net Assets | [1],[7] | 0.80% | |||
Interest Rate | 5% | ||||
Principal / Par | [1],[7] | $ 932 | |||
Maturity Date | [1],[7] | Oct. 29, 2027 | |||
Cost | [1],[2],[3],[7] | $ 917 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Diversified telecommunication services [Member] | First lien senior secured loan [Member] | Pavion Corp., f/k/a Corbett Technology Solutions, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 8.70% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Electronic equipment, instruments & components [Member] | First lien senior secured loan [Member] | Process Insights, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[7] | $ 1,461 | |||
Amortized Cost | [1],[2],[3],[7] | $ 1,448 | |||
Percentage of Net Assets | [1],[7] | 1.40% | |||
Interest Rate | 6% | ||||
Principal / Par | [1],[7] | $ 1,472 | |||
Maturity Date | [1],[7] | Oct. 30, 2025 | |||
Cost | [1],[2],[3],[7] | $ 1,448 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Electronic equipment, instruments & components [Member] | First lien senior secured loan [Member] | Process Insights, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Interest Rate | 10.49% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured revolving loan [Member] | Gulf Pacific Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 128 | |||
Amortized Cost | [1] | $ 119 | |||
Percentage of Net Assets | [1] | 0.10% | |||
Investment Interest Rate | 6% | ||||
Principal / Par | [1] | $ 128 | |||
Maturity Date | [1] | Sep. 30, 2028 | |||
Cost | [1] | $ 119 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured revolving loan [Member] | Gulf Pacific Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.42% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured revolving loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 195 | |||
Amortized Cost | [1] | $ 184 | |||
Percentage of Net Assets | [1] | 0.20% | |||
Investment Interest Rate | 5.25% | ||||
Principal / Par | [1] | $ 195 | |||
Maturity Date | [1] | Oct. 03, 2028 | |||
Cost | [1] | $ 184 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured revolving loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 8.91% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured loan [Member] | Gulf Pacific Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 1,747 | |||
Amortized Cost | [1] | $ 1,706 | |||
Percentage of Net Assets | [1] | 1.70% | |||
Investment Interest Rate | 6% | ||||
Principal / Par | [1] | $ 1,747 | |||
Maturity Date | [1] | Sep. 30, 2028 | |||
Cost | [1] | $ 1,706 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured loan [Member] | Gulf Pacific Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.73% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 3,931 | |||
Amortized Cost | [1] | $ 3,822 | |||
Percentage of Net Assets | [1] | 3.70% | |||
Investment Interest Rate | 5.25% | ||||
Principal / Par | [1] | $ 3,931 | |||
Maturity Date | [1] | Oct. 03, 2028 | |||
Cost | [1] | $ 3,822 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 8.91% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured delayed draw loan [Member] | Gulf Pacific Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1] | ||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6% | ||||
Principal / Par | [1] | ||||
Maturity Date | [1],[2],[3] | Sep. 30, 2024 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured delayed draw loan [Member] | Gulf Pacific Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.73% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured delayed draw loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[9] | ||||
Amortized Cost | [1],[9] | ||||
Percentage of Net Assets | [9] | 0% | |||
Investment Interest Rate | [9] | 5.25% | |||
Principal / Par | [1],[9] | ||||
Maturity Date | [1],[2],[3],[9] | Oct. 03, 2024 | |||
Cost | [1],[9] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured delayed draw loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | [9] | 8.91% | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food products [Member] | First lien senior secured delayed draw loan [Member] | IF&P Foods, LLC (FreshEdge) [Member] | Minimum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | [9] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | 2,346 | |||
Amortized Cost | [3],[4],[5],[6] | $ 2,301 | |||
Percentage of Net Assets | [4],[5] | 5.50% | |||
Principal / Par | [4],[5] | $ 2,346 | |||
Cost | [3],[4],[5],[6] | 2,301 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1] | ||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6.25% | ||||
Principal / Par | [1] | ||||
Maturity Date | [1],[2],[3] | May 14, 2024 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.47% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Dec. 14, 2023 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured delayed draw loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 2,294 | |||
Amortized Cost | [3],[4],[5],[6] | $ 2,253 | |||
Percentage of Net Assets | [4],[5] | 5.40% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [4],[5] | $ 2,294 | |||
Maturity Date | [4],[5] | Dec. 14, 2027 | |||
Cost | [3],[4],[5],[6] | $ 2,253 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured revolving loan [Member] | BCI Burke Holding Corp. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 52 | |||
Amortized Cost | [3],[4],[5],[6] | $ 48 | |||
Percentage of Net Assets | [4],[5] | 0.10% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [4],[5] | $ 52 | |||
Maturity Date | [4],[5] | Jun. 14, 2027 | |||
Cost | [3],[4],[5],[6] | $ 48 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Consumer durables & apparel [Member] | First lien senior secured revolving loan [Member] | BCI Burke Holding Corp. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 13,548 | [1] | $ 2,666 | [4],[5] | |
Amortized Cost | [3] | $ 13,223 | [1],[2] | $ 2,609 | [4],[5],[6] |
Percentage of Net Assets | 12.80% | [1] | 6.20% | ||
Principal / Par | $ 13,563 | [1] | $ 2,666 | [4],[5] | |
Cost | [3] | 13,223 | [1],[2] | 2,609 | [4],[5],[6] |
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured loan [Member] | Siegel Egg Co., LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | 2,471 | [1],[2],[3] | 2,502 | [4],[5] | |
Amortized Cost | $ 2,445 | [1] | $ 2,456 | [3],[4],[5],[6] | |
Percentage of Net Assets | 2.30% | [1] | 5.80% | [4],[5] | |
Investment Interest Rate | 5.50% | 6% | |||
Principal / Par | $ 2,484 | [1] | $ 2,502 | [4],[5] | |
Maturity Date | Dec. 29, 2026 | [1] | Dec. 29, 2026 | [4],[5] | |
Cost | $ 2,445 | [1] | $ 2,456 | [3],[4],[5],[6] | |
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured loan [Member] | Siegel Egg Co., LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.25% | 7% | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured revolving loan [Member] | Siegel Egg Co., LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 304 | |||
Amortized Cost | [1] | $ 298 | |||
Percentage of Net Assets | [1] | 0.30% | |||
Investment Interest Rate | 5.50% | ||||
Principal / Par | [1] | $ 306 | |||
Maturity Date | [1] | Dec. 29, 2026 | |||
Cost | [1] | $ 298 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured revolving loan [Member] | Siegel Egg Co., LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.25% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured revolving loan [Member] | Siegel Egg Co., LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 164 | |||
Amortized Cost | [3],[4],[5],[6] | $ 153 | |||
Percentage of Net Assets | [4],[5] | 0.40% | |||
Investment Interest Rate | 6% | ||||
Principal / Par | [4],[5] | $ 164 | |||
Maturity Date | [4],[5] | Dec. 29, 2026 | |||
Cost | [3],[4],[5],[6] | $ 153 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Food & beverage [Member] | First lien senior secured revolving loan [Member] | Siegel Egg Co., LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 7% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 13,494 | ||||
Amortized Cost | [2],[3] | $ 13,328 | |||
Percentage of Net Assets | 12.70% | ||||
Principal / Par | $ 13,518 | ||||
Cost | [2],[3] | 13,328 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | Light Wave Dental Management LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | 56 | |||
Amortized Cost | [1] | $ 55 | |||
Percentage of Net Assets | [1] | 0% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | $ 56 | |||
Maturity Date | [1] | Dec. 31, 2023 | |||
Cost | [1] | $ 55 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | Light Wave Dental Management LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.32% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 2,168 | |||
Amortized Cost | [1] | $ 2,176 | |||
Percentage of Net Assets | [1] | 2% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [1] | $ 2,190 | |||
Maturity Date | [1] | Dec. 14, 2026 | |||
Cost | [1] | $ 2,176 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.13% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | Light Wave Dental Management LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 1,294 | |||
Amortized Cost | [1] | $ 1,285 | |||
Percentage of Net Assets | [1] | 1.20% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | $ 1,294 | |||
Maturity Date | [1] | Dec. 31, 2023 | |||
Cost | [1] | $ 1,285 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | Light Wave Dental Management LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.32% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | OMH-HealthEdge Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 2,978 | |||
Amortized Cost | [1] | $ 2,924 | |||
Percentage of Net Assets | [1] | 2.80% | |||
Investment Interest Rate | 5.25% | ||||
Principal / Par | [1] | $ 2,978 | |||
Maturity Date | [1] | Oct. 24, 2025 | |||
Cost | [1] | $ 2,924 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | OMH-HealthEdge Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.03% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 1,434 | |||
Amortized Cost | $ 1,407 | ||||
Percentage of Net Assets | 1.40% | ||||
Investment Interest Rate | 6% | ||||
Principal / Par | $ 1,434 | ||||
Maturity Date | Dec. 30, 2026 | ||||
Cost | $ 1,407 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.93% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 290 | |||
Amortized Cost | [1] | $ 289 | |||
Percentage of Net Assets | [1] | 0.30% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [1] | $ 292 | |||
Maturity Date | [1] | Dec. 14, 2026 | |||
Cost | [1] | $ 289 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.14% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Guardian Dentistry Partners [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 1,970 | |||
Amortized Cost | [1] | $ 1,942 | |||
Percentage of Net Assets | [1] | 1.90% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | $ 1,970 | |||
Maturity Date | [1] | Aug. 20, 2026 | |||
Cost | [1] | $ 1,942 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Guardian Dentistry Partners [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.94% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Light Wave Dental Management LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 956 | |||
Amortized Cost | [1] | $ 944 | |||
Percentage of Net Assets | [1] | 0.90% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | $ 956 | |||
Maturity Date | [1] | Dec. 31, 2023 | |||
Cost | [1] | $ 944 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | Light Wave Dental Management LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.32% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | $ 1,336 | |||
Amortized Cost | [1] | $ 1,314 | |||
Percentage of Net Assets | [1] | 1.30% | |||
Investment Interest Rate | 6% | ||||
Principal / Par | [1] | $ 1,336 | |||
Maturity Date | [1] | Dec. 30, 2026 | |||
Cost | [1] | $ 1,314 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured delayed draw loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.93% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1] | ||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [1] | ||||
Maturity Date | [1],[2],[3] | Dec. 14, 2026 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.13% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6% | ||||
Principal / Par | |||||
Maturity Date | [2],[3] | Dec. 30, 2026 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care providers & services [Member] | First lien senior secured revolving loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.93% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 1,691 | [1] | $ 4,683 | [4],[5] | |
Amortized Cost | [3] | $ 1,629 | [1],[2] | $ 4,562 | [4],[5],[6] |
Percentage of Net Assets | 1.60% | [1] | 10.90% | [4],[5] | |
Principal / Par | $ 1,691 | [1] | $ 4,683 | [4],[5] | |
Cost | [3] | 1,629 | [1],[2] | 4,562 | [4],[5],[6] |
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Guardian Dentistry Partners [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1],[2],[3] | 1,012 | |||
Amortized Cost | [1] | $ 992 | |||
Percentage of Net Assets | [1] | 0.90% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | $ 1,012 | |||
Maturity Date | [1] | Aug. 20, 2026 | |||
Cost | [1] | $ 992 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Guardian Dentistry Partners [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.94% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured delayed draw loan [Member] | Guardian Dentistry Partners [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Aug. 20, 2026 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured delayed draw loan [Member] | Guardian Dentistry Partners [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured delayed draw loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.50% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Dec. 30, 2026 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured delayed draw loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.50% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [3],[4],[5],[6] | $ 2,212 | |||
Amortized Cost | [3],[4],[5],[6] | $ 2,182 | |||
Percentage of Net Assets | [4],[5] | 5.10% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [4],[5] | $ 2,212 | |||
Maturity Date | [4],[5] | Apr. 12, 2024 | |||
Cost | [3],[4],[5],[6] | $ 2,182 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Guardian Dentistry Partners [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 1,023 | |||
Amortized Cost | [3],[4],[5],[6] | $ 978 | |||
Percentage of Net Assets | [4],[5] | 2.40% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | [4],[5] | $ 1,023 | |||
Maturity Date | [4],[5] | Aug. 20, 2026 | |||
Cost | [3],[4],[5],[6] | $ 978 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | Guardian Dentistry Partners [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 1,448 | |||
Amortized Cost | [3],[4],[5],[6] | $ 1,402 | |||
Percentage of Net Assets | [4],[5] | 3.40% | |||
Investment Interest Rate | 5.50% | ||||
Principal / Par | [4],[5] | $ 1,448 | |||
Maturity Date | [4],[5] | Dec. 30, 2026 | |||
Cost | [3],[4],[5],[6] | $ 1,402 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.50% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured revolving loan [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Apr. 12, 2024 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured revolving loan [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured revolving loan [Member] | SGA Dental Partners Holdings, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.50% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Dec. 30, 2026 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | First lien senior secured revolving loan [Member] | SGA Dental Partners Holdings, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.50% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured revolving loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1] | ||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | ||||
Maturity Date | [1],[2],[3] | Nov. 03, 2027 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured revolving loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.90% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 1,691 | |||
Amortized Cost | $ 1,629 | ||||
Percentage of Net Assets | 1.60% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | $ 1,691 | ||||
Maturity Date | Nov. 03, 2027 | ||||
Cost | $ 1,629 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.90% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured delayed draw loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [1] | ||||
Amortized Cost | [1] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [1] | ||||
Maturity Date | [1],[2],[3] | Nov. 03, 2024 | |||
Cost | [1] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Healthcare equipment & supplies [Member] | First lien senior secured delayed draw loan [Member] | LSL Industries, LLC (LSL Healthcare) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.90% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 8,205 | ||||
Amortized Cost | [2],[3] | $ 7,966 | |||
Percentage of Net Assets | 7.70% | ||||
Principal / Par | $ 8,224 | ||||
Cost | [2],[3] | 7,966 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured revolving loan [Member] | DISA Holdings Corp. (DISA) [Member] | |||||
Aerospace & defense | |||||
Fair Value | 9 | ||||
Amortized Cost | [2],[3] | ||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 5.50% | ||||
Principal / Par | $ 9 | ||||
Maturity Date | Sep. 09, 2028 | ||||
Cost | [2],[3] | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured revolving loan [Member] | DISA Holdings Corp. (DISA) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.82% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured revolving loan [Member] | Universal Marine Medical Supply International, LLC (Unimed) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 147 | |||
Amortized Cost | $ 129 | ||||
Percentage of Net Assets | 0.10% | ||||
Investment Interest Rate | 7.50% | ||||
Principal / Par | $ 147 | ||||
Maturity Date | Dec. 05, 2027 | ||||
Cost | $ 129 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured revolving loan [Member] | Universal Marine Medical Supply International, LLC (Unimed) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 12.14% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured loan [Member] | DISA Holdings Corp. (DISA) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 3,412 | |||
Amortized Cost | $ 3,328 | ||||
Percentage of Net Assets | 3.20% | ||||
Investment Interest Rate | 5.50% | ||||
Principal / Par | $ 3,429 | ||||
Maturity Date | Sep. 09, 2028 | ||||
Cost | $ 3,328 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured loan [Member] | DISA Holdings Corp. (DISA) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.72% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured loan [Member] | Universal Marine Medical Supply International, LLC (Unimed) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 4,265 | |||
Amortized Cost | $ 4,160 | ||||
Percentage of Net Assets | 4% | ||||
Investment Interest Rate | 7.50% | ||||
Principal / Par | $ 4,265 | ||||
Maturity Date | Dec. 05, 2027 | ||||
Cost | $ 4,160 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured loan [Member] | Universal Marine Medical Supply International, LLC (Unimed) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 12.10% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured delayed draw loan [Member] | DISA Holdings Corp. (DISA) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 372 | |||
Amortized Cost | $ 349 | ||||
Percentage of Net Assets | 0.40% | ||||
Investment Interest Rate | 5.50% | ||||
Principal / Par | $ 374 | ||||
Maturity Date | Sep. 09, 2028 | ||||
Cost | $ 349 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Professional services [Member] | First lien senior secured delayed draw loan [Member] | DISA Holdings Corp. (DISA) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.73% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Software [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 2,997 | ||||
Amortized Cost | [2],[3] | $ 2,878 | |||
Percentage of Net Assets | 2.80% | ||||
Principal / Par | $ 2,997 | ||||
Cost | [2],[3] | 2,878 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Software [Member] | First lien senior secured loan [Member] | AIDC Intermediate Co 2, LLC (Peak Technologies) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | 2,997 | |||
Amortized Cost | $ 2,878 | ||||
Percentage of Net Assets | 2.80% | ||||
Investment Interest Rate | 6.25% | ||||
Principal / Par | $ 2,997 | ||||
Maturity Date | Jul. 22, 2027 | ||||
Cost | $ 2,878 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Software [Member] | First lien senior secured loan [Member] | AIDC Intermediate Co 2, LLC (Peak Technologies) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.44% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Textiles, Apparel & Luxury Goods [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 2,744 | ||||
Amortized Cost | [2],[3] | $ 2,681 | |||
Percentage of Net Assets | 2.60% | ||||
Principal / Par | $ 2,744 | ||||
Cost | [2],[3] | 2,681 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Textiles, Apparel & Luxury Goods [Member] | First lien senior secured revolving loan [Member] | American Soccer Company, Incorporated (SCORE) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | 162 | |||
Amortized Cost | $ 154 | ||||
Percentage of Net Assets | 0.20% | ||||
Investment Interest Rate | 7.25% | ||||
Principal / Par | $ 162 | ||||
Maturity Date | Jul. 20, 2027 | ||||
Cost | $ 154 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Textiles, Apparel & Luxury Goods [Member] | First lien senior secured revolving loan [Member] | American Soccer Company, Incorporated (SCORE) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.91% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Textiles, Apparel & Luxury Goods [Member] | First lien senior secured loan [Member] | American Soccer Company, Incorporated (SCORE) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 2,582 | |||
Amortized Cost | $ 2,527 | ||||
Percentage of Net Assets | 2.40% | ||||
Investment Interest Rate | 7.25% | ||||
Principal / Par | $ 2,582 | ||||
Maturity Date | Jul. 20, 2027 | ||||
Cost | $ 2,527 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Textiles, Apparel & Luxury Goods [Member] | First lien senior secured loan [Member] | American Soccer Company, Incorporated (SCORE) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.98% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 16,490 | ||||
Amortized Cost | [2],[3] | $ 16,109 | |||
Percentage of Net Assets | 15.60% | ||||
Principal / Par | $ 16,553 | ||||
Cost | [2],[3] | 16,109 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured revolving loan [Member] | CGI Automated Manufacturing, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | 0% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | |||||
Maturity Date | [2],[3] | Dec. 17, 2026 | |||
Cost | |||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured revolving loan [Member] | CGI Automated Manufacturing, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.34% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | BCDI Meteor Acquisition, LLC (Meteor) [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 5,000 | |||
Amortized Cost | $ 4,875 | ||||
Percentage of Net Assets | 4.70% | ||||
Investment Interest Rate | 7% | ||||
Principal / Par | $ 5,000 | ||||
Maturity Date | Jun. 29, 2028 | ||||
Cost | $ 4,875 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | BCDI Meteor Acquisition, LLC (Meteor) [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.66% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | CGI Automated Manufacturing, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 1,517 | |||
Amortized Cost | $ 1,476 | ||||
Percentage of Net Assets | 1.40% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | $ 1,517 | ||||
Maturity Date | Dec. 17, 2026 | ||||
Cost | $ 1,476 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | CGI Automated Manufacturing, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.34% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | Genuine Cable Group, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 4,925 | |||
Amortized Cost | $ 4,824 | ||||
Percentage of Net Assets | 4.70% | ||||
Investment Interest Rate | 5.75% | ||||
Principal / Par | $ 4,988 | ||||
Maturity Date | Nov. 01, 2026 | ||||
Cost | $ 4,824 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | Genuine Cable Group, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.17% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | I.D. Images Acquisition, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 3,085 | |||
Amortized Cost | $ 3,026 | ||||
Percentage of Net Assets | 2.90% | ||||
Investment Interest Rate | 6.25% | ||||
Principal / Par | $ 3,085 | ||||
Maturity Date | Jul. 30, 2026 | ||||
Cost | $ 3,026 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan [Member] | I.D. Images Acquisition, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.67% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan One [Member] | I.D. Images Acquisition, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 696 | |||
Amortized Cost | $ 686 | ||||
Percentage of Net Assets | 0.70% | ||||
Investment Interest Rate | 6.25% | ||||
Principal / Par | $ 696 | ||||
Maturity Date | Jul. 30, 2026 | ||||
Cost | $ 686 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured loan One [Member] | I.D. Images Acquisition, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 10.98% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured delayed draw loan [Member] | CGI Automated Manufacturing, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 1,267 | |||
Amortized Cost | $ 1,222 | ||||
Percentage of Net Assets | 1.20% | ||||
Investment Interest Rate | 6.50% | ||||
Principal / Par | $ 1,267 | ||||
Maturity Date | Dec. 17, 2026 | ||||
Cost | $ 1,222 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Trading companies & distributors [Member] | First lien senior secured delayed draw loan [Member] | CGI Automated Manufacturing, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 11.34% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Wireless telecommunication services [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 3,649 | ||||
Amortized Cost | [2],[3] | $ 3,599 | |||
Percentage of Net Assets | 3.40% | ||||
Principal / Par | $ 3,667 | ||||
Cost | [2],[3] | 3,599 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Wireless telecommunication services [Member] | First lien senior secured loan [Member] | Centerline Communications, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | 667 | |||
Amortized Cost | $ 651 | ||||
Percentage of Net Assets | 0.60% | ||||
Investment Interest Rate | 5.50% | ||||
Principal / Par | $ 670 | ||||
Maturity Date | Aug. 10, 2027 | ||||
Cost | $ 651 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Wireless telecommunication services [Member] | First lien senior secured loan [Member] | Centerline Communications, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.93% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Wireless telecommunication services [Member] | First lien senior secured delayed draw loan [Member] | Centerline Communications, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [2],[3] | $ 2,982 | |||
Amortized Cost | $ 2,948 | ||||
Percentage of Net Assets | 2.80% | ||||
Investment Interest Rate | 5.50% | ||||
Principal / Par | $ 2,997 | ||||
Maturity Date | Aug. 10, 2027 | ||||
Cost | $ 2,948 | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Wireless telecommunication services [Member] | First lien senior secured delayed draw loan [Member] | Centerline Communications, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 9.93% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Total Private Credit Investments [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 107,312 | $ 11,761 | [4],[5] | ||
Amortized Cost | [3] | $ 105,083 | [2] | $ 11,499 | [4],[5],[6] |
Percentage of Net Assets | 101.20% | 27.40% | [4],[5] | ||
Principal / Par | $ 107,673 | $ 11,761 | [4],[5] | ||
Cost | [3] | 105,083 | [2] | 11,499 | [4],[5],[6] |
Debt Investments [Member] | Private Credit Investments [Member] | Total Debt Investments [Member] | |||||
Aerospace & defense | |||||
Fair Value | 107,312 | 11,761 | [4],[5] | ||
Amortized Cost | [3] | $ 105,083 | [2] | $ 11,499 | [4],[5],[6] |
Percentage of Net Assets | 101.20% | 27.40% | [4],[5] | ||
Principal / Par | $ 107,673 | $ 11,761 | [4],[5] | ||
Cost | [3] | 105,083 | [2] | 11,499 | [4],[5],[6] |
Debt Investments [Member] | Private Credit Investments [Member] | Total Investments [Member] | |||||
Aerospace & defense | |||||
Fair Value | 107,312 | 43,000 | |||
Amortized Cost | $ 105,083 | [2],[3] | $ 42,738,000 | ||
Percentage of Net Assets | 101.20% | 100.30% | |||
Cost | $ 105,083 | [2],[3] | $ 42,738,000 | ||
Debt Investments [Member] | Private Credit Investments [Member] | Liabilities in Excess of Other Assets [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ (1,404) | $ (121) | |||
Percentage of Net Assets | (1.20%) | (0.30%) | |||
Debt Investments [Member] | Private Credit Investments [Member] | Net Assets [Member] | |||||
Aerospace & defense | |||||
Fair Value | $ 105,908 | $ 42,879 | |||
Percentage of Net Assets | 100% | 100% | |||
Debt Investments [Member] | Private Credit Investments [Member] | Capital goods [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 703 | |||
Amortized Cost | [3],[4],[5],[6] | $ 691 | |||
Percentage of Net Assets | [4],[5] | 1.60% | |||
Principal / Par | [4],[5] | $ 703 | |||
Cost | [3],[4],[5],[6] | 691 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Capital goods [Member] | I.D. Images Acquisition, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | 703 | |||
Amortized Cost | [3],[4],[5],[6] | $ 691 | |||
Percentage of Net Assets | [4],[5] | 1.60% | |||
Investment Interest Rate | 6.25% | ||||
Principal / Par | [4],[5] | $ 703 | |||
Maturity Date | [4],[5] | Jul. 30, 2026 | |||
Cost | [3],[4],[5],[6] | $ 691 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Capital goods [Member] | I.D. Images Acquisition, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 7.25% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Software & services [Member] | First lien senior secured loan [Member] | Peak Technologies [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 421 | |||
Amortized Cost | [3],[4],[5],[6] | $ 413 | |||
Percentage of Net Assets | [4],[5] | 1% | |||
Investment Interest Rate | 6.50% | ||||
Principal / Par | [4],[5] | $ 421 | |||
Maturity Date | [4],[5] | Apr. 01, 2026 | |||
Cost | [3],[4],[5],[6] | $ 413 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Software & services [Member] | First lien senior secured loan [Member] | Peak Technologies [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 7.50% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | Telecommunication services [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | $ 942 | |||
Amortized Cost | [3],[4],[5],[6] | $ 923 | |||
Percentage of Net Assets | [4],[5] | 2.20% | |||
Principal / Par | [4],[5] | $ 942 | |||
Cost | [3],[4],[5],[6] | 923 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Telecommunication services [Member] | First lien senior secured loan [Member] | Corbett Technology Solutions, Inc. [Member] | |||||
Aerospace & defense | |||||
Fair Value | [4],[5] | 942 | |||
Amortized Cost | [3],[4],[5],[6] | $ 923 | |||
Percentage of Net Assets | [4],[5] | 2.20% | |||
Investment Interest Rate | 5% | ||||
Principal / Par | [4],[5] | $ 942 | |||
Maturity Date | [4],[5] | Oct. 27, 2027 | |||
Cost | [3],[4],[5],[6] | $ 923 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Telecommunication services [Member] | First lien senior secured loan [Member] | Corbett Technology Solutions, Inc. [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6% | ||||
Debt Investments [Member] | Private Credit Investments [Member] | First American Treasury Obligations Fund - Institutional Class Z, 0.01% [Member] | |||||
Aerospace & defense | |||||
Fair Value | [10] | $ 31,239 | |||
Amortized Cost | [10] | $ 31,239,000 | |||
Percentage of Net Assets | [10] | 72.90% | |||
Number of Shares (in Shares) | [10] | 31,239 | |||
Cost | [10] | $ 31,239,000 | |||
Debt Investments [Member] | Private Credit Investments [Member] | Total Short-Term Investments [Member] | |||||
Aerospace & defense | |||||
Fair Value | 31,239 | ||||
Amortized Cost | $ 31,239,000 | ||||
Percentage of Net Assets | 72.90% | ||||
Number of Shares (in Shares) | 31,239 | ||||
Cost | $ 31,239,000 | ||||
First lien senior secured delayed draw loan [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | Debt Investments [Member] | Brightview, LLC [Member] | |||||
Aerospace & defense | |||||
Fair Value | |||||
Amortized Cost | |||||
Percentage of Net Assets | [4],[5] | 0% | |||
Investment Interest Rate | 5.75% | ||||
Principal / Par | |||||
Maturity Date | [4],[5] | Apr. 12, 2024 | |||
Cost | |||||
First lien senior secured delayed draw loan [Member] | Private Credit Investments [Member] | Health care equipment & services [Member] | Debt Investments [Member] | Brightview, LLC [Member] | Maximum [Member] | |||||
Aerospace & defense | |||||
Investment Interest Rate | 6.75% | ||||
[1] As of December 31, 2022, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. As of December 31, 2022, the tax cost of the Company's investments approximates their amortized cost. The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method. As of December 31, 2021, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR) or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate). As of December 31, 2021, the tax cost of the Company’s investments approximates their amortized cost. Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR), the Secured Overnight Funding Rate (“SOFR” or “S”) (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or "P"). Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2022, 4.2% of the Company’s total assets were in non-qualifying investments. The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss. Certain lenders represent a “first out” portion of the investment and have priority to the “last-out” portion with respect to payments of principal and interest. The indicated rate is the yield as of December 31, 2021. |
N-2
N-2 | 12 Months Ended |
Dec. 31, 2022 | |
Cover [Abstract] | |
Entity Central Index Key | 0001850787 |
Amendment Flag | false |
Securities Act File Number | 814-01393 |
Document Type | 10-K |
Entity Registrant Name | Kayne DL 2021, Inc. |
Entity Address, Address Line One | 811 Main Street |
Entity Address, Address Line Two | 14th Floor |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | (713) |
Local Phone Number | 493-2020 |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Financial Highlights [Abstract] | |
Senior Securities, Note [Text Block] | Senior Securities and Indebtedness We will be permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our Shares if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As defined in the 1940 Act, asset coverage of 150% means that for every $100 of net assets we hold, we may raise $200 from borrowing and issuing senior securities. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage. Regulations governing our operations as a BDC will affect our ability to raise, and the method of raising, additional capital, which may expose us to risks. |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | Our investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies. We define “middle-market companies” as U.S.-based companies that, in general, generate between $10 million and $150 million of annual earnings before interest, taxes, depreciation and amortization, or EBITDA. We refer to companies that generate between $10 million and $50 million of annual EBITDA as “core middle-market companies” and companies that generate between $50 million and $150 million of annual EBITDA as “upper middle-market companies.” We intend to achieve our investment objective by investing primarily in first lien senior secured, unitranche and split-lien loans (collectively, “secured middle market loans”) to privately held middle-market companies. Similar to first lien senior secured loans, unitranche loans typically have a first lien on all assets of the borrower, but provide leverage at levels similar to a combination of first lien and second lien and/or subordinated loans. Split-lien loans are loans that otherwise satisfy the criteria of a first lien loan but which have been structured with a credit facility that is senior in right of payment with respect to working capital assets of the borrower and a term loan that is collateralized by all other assets of the borrower. Depending on market conditions, we expect that at least 90% of our portfolio (including investments purchased with proceeds from borrowings, if any) will be invested in secured middle market loans. It is anticipated that most of these investments will be in core middle market companies, with the remainder in upper middle market companies. The remaining 10% of our portfolio may be invested in higher-returning investments, including, but not limited to, equity securities purchased in conjunction with secured middle market loans and other opportunistic investments (collectively “Opportunistic Investments”), including junior debt, real estate debt and infrastructure credit investments. We expect that the secured middle market loans we invest in will generally have stated maturities of no more than six years. We intend to execute on our investment objective by (1) accessing the established loan sourcing channels developed by Kayne Anderson’s middle market private credit team, which includes an extensive network of private equity firms, other middle-market lenders, financial advisors and intermediaries, and management teams, (2) selecting investments within our middle-market company focus, (3) implementing Kayne Anderson’s middle market private credit team’s proven underwriting process, and (4) drawing upon the experience and resources of our Advisor’s investment team and the broader Kayne Anderson network. We believe our Advisor’s disciplined approach to origination, credit analysis, portfolio construction and risk management should allow us to achieve attractive risk-adjusted returns while preserving investor capital. We anticipate the portfolio will be comprised of a broad mix of loans, with diversity among investment size, industry focus and geography. The Advisor’s team of professionals will conduct in-depth due diligence on prospective investments during the underwriting process and will be heavily involved in structuring the credit terms of each investment. Once an investment has been made, our Advisor will closely monitor portfolio investments and take a proactive approach identifying and addressing sector or company specific risks. The Advisor maintains a regular dialogue with portfolio company management teams (as well as their financial sponsors, where applicable), reviews detailed operating and financial results on a regular basis (typically monthly or quarterly) and monitors current and projected liquidity needs, in addition to other portfolio management activities. |
Risk Factors [Table Text Block] | Item 1A. Risk Factors Investing in our Shares involves a number of significant risks. Before you invest in our Shares, you should be aware of various risks, including those described below. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the following events occur, our business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, our NAV could decline, and you may lose all or part of your investment. The risk factors described below are the principal risk factors associated with an investment in us as well as those factors generally associated with an investment company with investment objectives, investment policies, capital structure or trading markets similar to ours. SUMMARY OF RISK FACTORS Investing in our Shares involves a number of significant risks. You should carefully consider information found in the section entitled “Item 1A. Risk Factors” and elsewhere in this annual report on Form 10-K. Some of the risks involved in investing in our Shares include: ● We are subject to all of the business risks and uncertainties associated with any business with a limited operating history, including the risk that we will not achieve our investment objective and that the value of our Shares could decline substantially. ● We are an “emerging growth company” under the JOBS Act, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our Shares less attractive to investors. ● We may finance our investments with borrowed money. Our inability to access leverage in a timely fashion may inhibit our ability to make timely investments. ● Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional capital. As a BDC, the necessity of raising additional capital exposes us to risks, including the typical risks associated with leverage. ● There is no public market for our Shares, nor can we give any assurance that one will develop in the future. ● We generally will not control the business operations of our portfolio companies and, due to the illiquid nature of our holdings in our portfolio companies, we may not be able to dispose of our interests in our portfolio companies. ● The collateral securing our first-lien debt may decrease in value over time, may be difficult to value, and may become subordinated to the claims of other creditors. ● Our investments in second-lien and subordinate loans generally will be subordinated to senior loans and will either have junior security interests or be unsecured, which may result in greater risk and loss of principal. ● Some of the loans in which we may invest may be “covenant-lite” loans, which may have a greater risk of loss as compared to investments in or exposure to loans with financial maintenance covenants. ● An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies. ● There is no public market or active secondary market for many of the investments that we intend to make and hold and as a result, these investments may be deemed illiquid. ● Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry. ● We may make investments in highly levered companies. Price declines in the corporate leveraged loan market may adversely affect the fair value of our portfolio, reducing our net asset value through increased net unrealized depreciation and the incurrence of realized losses. ● The amount of any distributions we may make on our Shares is uncertain. We may not be able to pay you distributions, or be able to sustain distributions at any particular level, and our distributions per share, if any, may not grow over time, and our distributions per share may be reduced. ● To the extent original issue discount (“OID”), and payment-in-kind (“PIK”), interest income constitute a portion of our income, we will be exposed to risks associated with the deferred receipt of the cash representing such income. ● The Advisor and its affiliates, including our officers and some of our directors, may face conflicts of interest caused by compensation arrangements with us and our affiliates, which could result in increased risk-taking by us. ● Our business model depends to a significant extent upon strong referral relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties that are active in our markets. Any inability of the Advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. ● The Advisor may frequently be required to make investment analyses and decisions on an expedited basis in order to take advantage of investment opportunities, and our Advisor may not have knowledge of all circumstances that could impact an investment by the Company. ● Our management and incentive fee structure may create incentives for the Advisor that are not fully aligned with the interests of our stockholders and may induce the Advisor to make speculative investments. ● If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy. ● Efforts to comply with the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance with the Sarbanes-Oxley Act would adversely affect us and the value of our Shares. ● We are highly dependent on information systems, and systems failures could significantly disrupt our business, which may, in turn, negatively affect the value of our Shares and our ability to pay distributions. Risks Relating to Our Business and Structure We have a limited operating history. We commenced operations in December 2021. We are subject to all of the business risks and uncertainties associated with any new business, including the risk that we will not achieve our investment objective, that we will not qualify or maintain our qualification to be treated as a RIC, and that the value of your investment could decline substantially. The 1940 Act and the Code impose numerous constraints on the operations of BDCs and RICs that do not apply to certain of the other investment vehicles managed by our Advisor and its affiliates. BDCs are required, for example, to invest at least 70% of their total assets primarily in securities of U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Moreover, qualification for taxation as a RIC requires satisfaction of source-of-income, asset diversification and distribution requirements. Our Advisor has a limited operating history under these constraints, which may hinder our ability to take advantage of attractive investment opportunities and to achieve our investment objective. Pandemics and other local, national, and international public health emergencies, including outbreaks of infectious diseases such as SARS, H1N1/09 Flu, the Avian Flu, Ebola and the novel coronavirus (“COVID-19”) pandemic, can result in market volatility and disruption, and any similar future emergencies may materially and adversely impact economic production and activity in ways that cannot be predicted, all of which could result in substantial investment losses. Most recently, COVID-19 caused a worldwide public health emergency, significantly diminished and disrupted global economic production and activity of all kinds, and contributed to both volatility and a severe decline in financial markets. The full extent of the impact of COVID-19 (and of the resulting precipitous decline and disruption in economic and commercial activity across many of the world’s economies) on global economic conditions, and on the operations, financial condition, and performance of any particular market, industry or business, is impossible to predict, and additional economic disruptions and market volatility may occur as new variants appear and spread. Ongoing and potential additional materially adverse effects, including further global, regional and local economic downturns (including recessions) of indeterminate duration and severity, are possible. Any other public health emergency could have a significant adverse impact on our investments and result in significant investment losses. Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations. The current worldwide financial markets situation, as well as various social and political tensions in the United States 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 contribute to increased market volatility, may have long term effects on the United States and worldwide financial markets, and may cause economic uncertainties or deterioration in the United States and worldwide. For example, the COVID-19 pandemic adversely impacted global commercial activity and contributed to significant volatility in financial markets. In addition, the large-scale invasion of Ukraine by Russia, and resulting market volatility, could adversely affect our business, financial condition or results of operations. In response to the conflict between Russia and Ukraine, the U.S. and other countries have imposed sanctions or other restrictive actions against Russia. The ongoing conflict and the rapidly evolving measures in response could be expected to have a negative impact on the economy and business activity globally and could have a material adverse effect on our portfolio companies and our business, financial condition, cash flows and results of operations. The severity and duration of the conflict and its impact on global economic and market conditions are impossible to predict. In addition, sanctions could also result in Russia taking counter measures or retaliatory actions which could adversely impact our business or the business of our portfolio companies, including, but not limited to, cyberattacks targeting private companies, individuals or other infrastructure upon which our business and the business of our portfolio companies rely. In addition, the political reunification of China and Taiwan, over which China continues to claim sovereignty, is a highly complex issue that has included threats of invasion by China. Any escalation of hostility between China and/or Taiwan would likely have a significant adverse impact not only on the value of investments in both countries, but also on economies and financial markets globally. We do not currently have portfolio investments with exposure to China, Taiwan, Russia or Ukraine . We may use debt to finance our investments and changes in interest rates will affect our cost of capital and net investment income. In addition, the interest rates that extend beyond June 2023 might be subject to change based on recent regulatory changes. We may borrow money or issue debt securities to make investments. As a result, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay interest or distributions on such debt securities and the rate at which we invest these funds. In addition, we anticipate that many of our debt investments and borrowings will have floating interest rates that reset on a periodic basis, and many of our investments will be subject to interest rate floors. As a result, a significant change in market interest rates could have a material adverse effect on our net investment income. During calendar 2022, the Federal Reserve raised the federal funds rate seven times and has signaled that further increases will likely happen in 2023 in an effort to control inflation. In periods of rising interest rates, our cost of funds will increase because we expect that the interest rates on the majority of amounts we borrow will be floating, which could reduce our net investment income to the extent any of our debt investments have fixed interest rates. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities may limit our ability to benefit from lower interest rates with respect to hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. You should also be aware that a rise in the general level of interest rates typically will lead to higher interest rates applicable to our debt investments. Also, an increase in interest rates available to investors could make an investment in our Shares less attractive if we are not able to increase our distribution rate, which could reduce the value of our Shares. The United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that certain LIBOR tenors in certain currencies ceased to be provided at the end of 2021 with all remaining tenors ceasing to be published after June 30, 2023. It is expected that market participants will transition to the use of different alternatives reference or benchmark rates. Regulators have encouraged the development and adoption of alternative rates such as the Secured Overnight Financing Rate (“SOFR”). 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. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, whether or not SOFR maintains market traction as a LIBOR replacement remains a question and the future of LIBOR at this time is uncertain. At this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or any other reforms to LIBOR that may be enacted. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, if LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond the LIBOR phase out date with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements may bear interest a lower interest rate, which could have an adverse impact on our results of operations. Moreover, if LIBOR ceases to exist, we may need to renegotiate certain terms of our credit facilities. If we are unable to do so, amounts drawn under our credit facilities may bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on us or the financial instruments in which we invest can be difficult to ascertain, and they may vary depending on factors that include, but are not limited to: (i) existing fallback or termination provisions in individual contracts and (ii) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new products and instruments. Additionally, if as currently expected LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond June 30, 2023, with our credit facility lenders and our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with SOFR or other alternative reference rates, which could require us to incur significant time and expense and may subject us to disputes or litigation over the appropriateness or comparability to the relevant replacement reference index. The transition from LIBOR to SOFR or other alternative reference rates may also introduce operational risks in our accounting, financial reporting, loan servicing, liability management and other aspects of our business. We are in the process of transitioning our investments and our borrowings from LIBOR to SOFR and we do not expect that the transition will have a material impact on our business, financial condition or results of operations. Rising interest rates could affect the value of our investments and make it more difficult for portfolio companies to make periodic payments on their loans. Interest rate risk refers to the risk of market changes in interest rates. Interest rate changes affect the value of debt. In general, rising interest rates will negatively impact the price of fixed rate debt, and falling interest rates will have a positive effect on price. Adjustable-rate debt also reacts to interest rate changes in a similar manner, although generally to a lesser degree. Interest rate sensitivity is generally larger and less predictable in debt with uncertain payment or prepayment schedules. Further, rising interest rates make it more difficult for borrowers to repay debt, which could increase the risk of payment defaults. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows. Risks associated with rising interest rates are heightened given that the U.S. Federal Reserve has begun to sharply raise interest rates from historically low levels and has signaled an intention to continue doing so until current inflation levels align with its long-term inflation target. Other central banks globally have begun implementing similar rate increases. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, or general economic conditions). Government intervention in the credit markets could adversely affect our business. The central banks and, in particular, the U.S. Federal Reserve, have taken unprecedented steps since the financial crises of 2008-2009 and the COVID-19 global pandemic and in response to inflationary pressures. It is impossible to predict if, how, and to what extent the United States and other governments would further intervene in the credit markets. Such intervention is often prompted by politically sensitive issues involving family homes, student loans, real estate speculation, credit card receivables, pandemics, etc., and could, as a result, be contrary to what we would predict from an “economically rational” perspective. On the other hand, recent governmental intervention could mean that the willingness of governmental bodies to take additional extraordinary action is diminished. As a result, in the event of near-term major market disruptions, like those caused by the COVID-19 pandemic, there might be only limited additional government intervention, resulting in correspondingly greater market dislocation and materially greater market risk. We depend upon our Advisor for our success and upon their access to the investment professionals and partners of Kayne Anderson and its affiliates. Our portfolio is subject to management risk because it is actively managed. Our Advisor applies investment techniques and risk analyses in making investment decisions for us, but there can be no guarantee that they will produce the desired results. We depend upon Kayne Anderson’s key personnel for our future success and upon their access to certain individuals and investment opportunities to execute on our investment objective. In particular, we depend on the diligence, skill and network of business contacts of our portfolio managers, who evaluate, negotiate, structure, close and monitor our investments. These individuals manage a number of investment vehicles on behalf of Kayne Anderson and, as a result, do not devote all of their time to managing us, which could negatively impact our performance. Furthermore, these individuals do not have long-term employment contracts with Kayne Anderson, although they do have equity interests and other financial incentives to remain with Kayne Anderson. We also depend on the senior management of Kayne Anderson. The departure of any of our portfolio managers or the senior management of Kayne Anderson could have a material adverse effect on our ability to achieve our investment objective. In addition, we can offer no assurance that our Advisor will remain our investment advisor or that we will continue to have access to Kayne Anderson’s industry contacts and deal flow. Our business model depends to a significant extent upon strong referral relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties that are active in our markets. Any inability of the Advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We depend upon the Advisor’s and its affiliates relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties that are active in our markets, and we intend to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the Advisor fails to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the principals of the Advisor and its affiliates have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future. We may not replicate the historical results achieved by other entities managed or sponsored by members of the Advisor’s investment committee, or by the Advisor’s or its affiliates. Our investments may differ from those of existing accounts that are or have been sponsored or managed by members of the Advisor’s investment committee, the Advisor or affiliates of the Advisor. Investors in our securities are not acquiring an interest in any accounts that are sponsored or managed by members of the Advisor’s investment committee, the Advisor or affiliates of the Advisor. Subject to the requirements of the 1940 Act, we may consider co-investing in portfolio investments with other accounts sponsored or managed by members of the Advisor’s investment committee, the Advisor or its affiliates. Any such investments are subject to regulatory limitations and approvals by directors who are not “interested persons,” as defined in the 1940 Act. We can offer no assurance, however, that we will obtain such approvals or develop opportunities that comply with such limitations. We also cannot assure you that we will replicate the historical results achieved for other Kayne Anderson funds by members of the investment committee, and we caution you that our investment returns could be substantially lower than the returns achieved by them in prior periods. Additionally, all or a portion of the prior results may have been achieved in particular market conditions which may never be repeated. Moreover, current or future market volatility and regulatory uncertainty may have an adverse impact on our future performance. Our financial condition and results of operation depend on our ability to manage future growth effectively. Our ability to achieve our investment objective depends on our ability to grow, which depends, in turn, on the Advisor’s ability to identify, invest in and monitor companies that meet our investment selection criteria. Accomplishing this result on a cost-effective basis is largely a function of the Advisor’s structuring of the investment process, its ability to provide competent, attentive and efficient services to us and our access to financing on acceptable terms. The management team of the Advisor has substantial responsibilities under our Investment Management Agreement. We can offer no assurance that any current or future employees of the Advisor will contribute effectively to the work of, or remain associated with, the Advisor. We caution you that the principals of our Advisor or Administrator may also be called upon to provide and currently do provide managerial assistance to portfolio companies and other investment vehicles, including other BDCs, which are managed by the Advisor. Such demands on their time may distract them or slow our rate of investment. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations. The Advisor may frequently be required to make investment analyses and decisions on an expedited basis in order to take advantage of investment opportunities, and our Advisor may not have knowledge of all circumstances that could impact an investment by the Company. Investment analyses and decisions by the Advisor may frequently be required to be undertaken on an expedited basis to take advantage of investment opportunities, and the Advisor may not have knowledge of all circumstances that could adversely affect an investment by us. Moreover, there can be no assurance that our due diligence processes will uncover all relevant facts that would be material to an investment decision. Before making an investment, we will assess the strength of the underlying assets and other factors that we believe are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, we will rely on the resources available to it and, in some cases, an investigation by third parties. This process is particularly important and highly subjective. Our financial condition, results of operations and cash flows depend on our ability to manage our business effectively. Our ability to achieve our investment objective depends on our ability to manage our business and to grow. This depends, in turn, on the Advisor’s ability to identify, invest in and monitor companies that meet our investment criteria. The achievement of our investment objective on a cost-effective basis depends upon the Advisor’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our access to financing on acceptable terms. The Advisor has substantial responsibilities under the Investment Advisory Agreement, as well as responsibilities in connection with the management of other accounts sponsored or managed by the Advisor, members of the Advisor’s investment committee or Kayne Anderson and its affiliates. The personnel of the Administrator and its affiliates may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition, results of operations and cash flows. There are significant potential conflicts of interest that could affect our investment returns. As a result of our arrangements with the Advisor and its affiliates and the Advisor’s investment committee, there may be times when the Advisor or such persons have interests that differ from those of our stockholders, giving rise to a conflict of interest. Conflicts related to obligations the Advisor’s investment committee, the Advisor or its affiliates have to other clients and conflicts related to fees and expenses of such other clients. The members of the Advisor’s investment committee serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do or of accounts sponsored or managed by the Advisor or its affiliates. The Advisor and its affiliates currently manage, and may in the future have, other clients with similar or competing investment objectives. In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders. Our investment objective may overlap with the investment objectives of such affiliated accounts. For example, the Advisor currently manages several private funds, some of which may seek additional capital from time to time, that are pursuing an investment strategy similar to ours, and we may compete with these and other accounts sponsored or managed by the Advisor and its affiliates for capital and investment opportunities. As a result, those individuals may face conflicts in the allocation of investment opportunities among us and other accounts advised by or affiliated with the Advisor. Certain of these accounts may provide for higher management or incentive fees, greater expense reimbursements or overhead allocations, or permit the Advisor and its affiliates to receive higher origination and other transaction fees, all of which may contribute to this conflict of interest and create an incentive for the Advisor to favor such other accounts. For example, the 1940 Act restricts the Advisor and its affiliates from receiving more than a 1% fee in connection with loans that we acquire, or originate, a limitation that does not exist for certain other accounts. The Advisor seeks to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time, and there can be no assurance that we will be able to participate in all investment opportunities that are suitable to us. The Advisor’s investment professionals are engaged in other investment activity on behalf of other clients. Certain investment professionals who are involved in our activities remain responsible for the investment activities of other clients and investment vehicles managed by the Advisor and its affiliates, and they will devote time to the management of such investments and other newly created client portfolios (whether in the form of funds, separate accounts or other vehicles), as well as their own investments. In addition, in connection with the management of investments for other funds, separate accounts and other vehicles, members of Kayne Anderson and its affiliates may serve on the boards of directors of or advise companies which may compete with our portfolio investments. Moreover, these other funds, separate accounts and other vehicles managed by Kayne Anderson and its affiliates may pursue investment opportunities that may also be suitable for us. The Advisor’s investment committee, the Advisor or its affiliates may, from time to time, possess material non-public information, limiting our investment discretion. Principals of the Advisor and its affiliates and members of the Advisor’s investment committee may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material nonpublic information is obtained with respect to such companies, or |
Risks Relating to Our Business and Structure [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks Relating to Our Business and Structure We have a limited operating history. We commenced operations in December 2021. We are subject to all of the business risks and uncertainties associated with any new business, including the risk that we will not achieve our investment objective, that we will not qualify or maintain our qualification to be treated as a RIC, and that the value of your investment could decline substantially. The 1940 Act and the Code impose numerous constraints on the operations of BDCs and RICs that do not apply to certain of the other investment vehicles managed by our Advisor and its affiliates. BDCs are required, for example, to invest at least 70% of their total assets primarily in securities of U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Moreover, qualification for taxation as a RIC requires satisfaction of source-of-income, asset diversification and distribution requirements. Our Advisor has a limited operating history under these constraints, which may hinder our ability to take advantage of attractive investment opportunities and to achieve our investment objective. Pandemics and other local, national, and international public health emergencies, including outbreaks of infectious diseases such as SARS, H1N1/09 Flu, the Avian Flu, Ebola and the novel coronavirus (“COVID-19”) pandemic, can result in market volatility and disruption, and any similar future emergencies may materially and adversely impact economic production and activity in ways that cannot be predicted, all of which could result in substantial investment losses. Most recently, COVID-19 caused a worldwide public health emergency, significantly diminished and disrupted global economic production and activity of all kinds, and contributed to both volatility and a severe decline in financial markets. The full extent of the impact of COVID-19 (and of the resulting precipitous decline and disruption in economic and commercial activity across many of the world’s economies) on global economic conditions, and on the operations, financial condition, and performance of any particular market, industry or business, is impossible to predict, and additional economic disruptions and market volatility may occur as new variants appear and spread. Ongoing and potential additional materially adverse effects, including further global, regional and local economic downturns (including recessions) of indeterminate duration and severity, are possible. Any other public health emergency could have a significant adverse impact on our investments and result in significant investment losses. Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations. The current worldwide financial markets situation, as well as various social and political tensions in the United States 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 contribute to increased market volatility, may have long term effects on the United States and worldwide financial markets, and may cause economic uncertainties or deterioration in the United States and worldwide. For example, the COVID-19 pandemic adversely impacted global commercial activity and contributed to significant volatility in financial markets. In addition, the large-scale invasion of Ukraine by Russia, and resulting market volatility, could adversely affect our business, financial condition or results of operations. In response to the conflict between Russia and Ukraine, the U.S. and other countries have imposed sanctions or other restrictive actions against Russia. The ongoing conflict and the rapidly evolving measures in response could be expected to have a negative impact on the economy and business activity globally and could have a material adverse effect on our portfolio companies and our business, financial condition, cash flows and results of operations. The severity and duration of the conflict and its impact on global economic and market conditions are impossible to predict. In addition, sanctions could also result in Russia taking counter measures or retaliatory actions which could adversely impact our business or the business of our portfolio companies, including, but not limited to, cyberattacks targeting private companies, individuals or other infrastructure upon which our business and the business of our portfolio companies rely. In addition, the political reunification of China and Taiwan, over which China continues to claim sovereignty, is a highly complex issue that has included threats of invasion by China. Any escalation of hostility between China and/or Taiwan would likely have a significant adverse impact not only on the value of investments in both countries, but also on economies and financial markets globally. We do not currently have portfolio investments with exposure to China, Taiwan, Russia or Ukraine . We may use debt to finance our investments and changes in interest rates will affect our cost of capital and net investment income. In addition, the interest rates that extend beyond June 2023 might be subject to change based on recent regulatory changes. We may borrow money or issue debt securities to make investments. As a result, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay interest or distributions on such debt securities and the rate at which we invest these funds. In addition, we anticipate that many of our debt investments and borrowings will have floating interest rates that reset on a periodic basis, and many of our investments will be subject to interest rate floors. As a result, a significant change in market interest rates could have a material adverse effect on our net investment income. During calendar 2022, the Federal Reserve raised the federal funds rate seven times and has signaled that further increases will likely happen in 2023 in an effort to control inflation. In periods of rising interest rates, our cost of funds will increase because we expect that the interest rates on the majority of amounts we borrow will be floating, which could reduce our net investment income to the extent any of our debt investments have fixed interest rates. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities may limit our ability to benefit from lower interest rates with respect to hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. You should also be aware that a rise in the general level of interest rates typically will lead to higher interest rates applicable to our debt investments. Also, an increase in interest rates available to investors could make an investment in our Shares less attractive if we are not able to increase our distribution rate, which could reduce the value of our Shares. The United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that certain LIBOR tenors in certain currencies ceased to be provided at the end of 2021 with all remaining tenors ceasing to be published after June 30, 2023. It is expected that market participants will transition to the use of different alternatives reference or benchmark rates. Regulators have encouraged the development and adoption of alternative rates such as the Secured Overnight Financing Rate (“SOFR”). 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. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, whether or not SOFR maintains market traction as a LIBOR replacement remains a question and the future of LIBOR at this time is uncertain. At this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or any other reforms to LIBOR that may be enacted. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, if LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond the LIBOR phase out date with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements may bear interest a lower interest rate, which could have an adverse impact on our results of operations. Moreover, if LIBOR ceases to exist, we may need to renegotiate certain terms of our credit facilities. If we are unable to do so, amounts drawn under our credit facilities may bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on us or the financial instruments in which we invest can be difficult to ascertain, and they may vary depending on factors that include, but are not limited to: (i) existing fallback or termination provisions in individual contracts and (ii) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new products and instruments. Additionally, if as currently expected LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond June 30, 2023, with our credit facility lenders and our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with SOFR or other alternative reference rates, which could require us to incur significant time and expense and may subject us to disputes or litigation over the appropriateness or comparability to the relevant replacement reference index. The transition from LIBOR to SOFR or other alternative reference rates may also introduce operational risks in our accounting, financial reporting, loan servicing, liability management and other aspects of our business. We are in the process of transitioning our investments and our borrowings from LIBOR to SOFR and we do not expect that the transition will have a material impact on our business, financial condition or results of operations. Rising interest rates could affect the value of our investments and make it more difficult for portfolio companies to make periodic payments on their loans. Interest rate risk refers to the risk of market changes in interest rates. Interest rate changes affect the value of debt. In general, rising interest rates will negatively impact the price of fixed rate debt, and falling interest rates will have a positive effect on price. Adjustable-rate debt also reacts to interest rate changes in a similar manner, although generally to a lesser degree. Interest rate sensitivity is generally larger and less predictable in debt with uncertain payment or prepayment schedules. Further, rising interest rates make it more difficult for borrowers to repay debt, which could increase the risk of payment defaults. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows. Risks associated with rising interest rates are heightened given that the U.S. Federal Reserve has begun to sharply raise interest rates from historically low levels and has signaled an intention to continue doing so until current inflation levels align with its long-term inflation target. Other central banks globally have begun implementing similar rate increases. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, or general economic conditions). Government intervention in the credit markets could adversely affect our business. The central banks and, in particular, the U.S. Federal Reserve, have taken unprecedented steps since the financial crises of 2008-2009 and the COVID-19 global pandemic and in response to inflationary pressures. It is impossible to predict if, how, and to what extent the United States and other governments would further intervene in the credit markets. Such intervention is often prompted by politically sensitive issues involving family homes, student loans, real estate speculation, credit card receivables, pandemics, etc., and could, as a result, be contrary to what we would predict from an “economically rational” perspective. On the other hand, recent governmental intervention could mean that the willingness of governmental bodies to take additional extraordinary action is diminished. As a result, in the event of near-term major market disruptions, like those caused by the COVID-19 pandemic, there might be only limited additional government intervention, resulting in correspondingly greater market dislocation and materially greater market risk. We depend upon our Advisor for our success and upon their access to the investment professionals and partners of Kayne Anderson and its affiliates. Our portfolio is subject to management risk because it is actively managed. Our Advisor applies investment techniques and risk analyses in making investment decisions for us, but there can be no guarantee that they will produce the desired results. We depend upon Kayne Anderson’s key personnel for our future success and upon their access to certain individuals and investment opportunities to execute on our investment objective. In particular, we depend on the diligence, skill and network of business contacts of our portfolio managers, who evaluate, negotiate, structure, close and monitor our investments. These individuals manage a number of investment vehicles on behalf of Kayne Anderson and, as a result, do not devote all of their time to managing us, which could negatively impact our performance. Furthermore, these individuals do not have long-term employment contracts with Kayne Anderson, although they do have equity interests and other financial incentives to remain with Kayne Anderson. We also depend on the senior management of Kayne Anderson. The departure of any of our portfolio managers or the senior management of Kayne Anderson could have a material adverse effect on our ability to achieve our investment objective. In addition, we can offer no assurance that our Advisor will remain our investment advisor or that we will continue to have access to Kayne Anderson’s industry contacts and deal flow. Our business model depends to a significant extent upon strong referral relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties that are active in our markets. Any inability of the Advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We depend upon the Advisor’s and its affiliates relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties that are active in our markets, and we intend to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the Advisor fails to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the principals of the Advisor and its affiliates have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future. We may not replicate the historical results achieved by other entities managed or sponsored by members of the Advisor’s investment committee, or by the Advisor’s or its affiliates. Our investments may differ from those of existing accounts that are or have been sponsored or managed by members of the Advisor’s investment committee, the Advisor or affiliates of the Advisor. Investors in our securities are not acquiring an interest in any accounts that are sponsored or managed by members of the Advisor’s investment committee, the Advisor or affiliates of the Advisor. Subject to the requirements of the 1940 Act, we may consider co-investing in portfolio investments with other accounts sponsored or managed by members of the Advisor’s investment committee, the Advisor or its affiliates. Any such investments are subject to regulatory limitations and approvals by directors who are not “interested persons,” as defined in the 1940 Act. We can offer no assurance, however, that we will obtain such approvals or develop opportunities that comply with such limitations. We also cannot assure you that we will replicate the historical results achieved for other Kayne Anderson funds by members of the investment committee, and we caution you that our investment returns could be substantially lower than the returns achieved by them in prior periods. Additionally, all or a portion of the prior results may have been achieved in particular market conditions which may never be repeated. Moreover, current or future market volatility and regulatory uncertainty may have an adverse impact on our future performance. Our financial condition and results of operation depend on our ability to manage future growth effectively. Our ability to achieve our investment objective depends on our ability to grow, which depends, in turn, on the Advisor’s ability to identify, invest in and monitor companies that meet our investment selection criteria. Accomplishing this result on a cost-effective basis is largely a function of the Advisor’s structuring of the investment process, its ability to provide competent, attentive and efficient services to us and our access to financing on acceptable terms. The management team of the Advisor has substantial responsibilities under our Investment Management Agreement. We can offer no assurance that any current or future employees of the Advisor will contribute effectively to the work of, or remain associated with, the Advisor. We caution you that the principals of our Advisor or Administrator may also be called upon to provide and currently do provide managerial assistance to portfolio companies and other investment vehicles, including other BDCs, which are managed by the Advisor. Such demands on their time may distract them or slow our rate of investment. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations. The Advisor may frequently be required to make investment analyses and decisions on an expedited basis in order to take advantage of investment opportunities, and our Advisor may not have knowledge of all circumstances that could impact an investment by the Company. Investment analyses and decisions by the Advisor may frequently be required to be undertaken on an expedited basis to take advantage of investment opportunities, and the Advisor may not have knowledge of all circumstances that could adversely affect an investment by us. Moreover, there can be no assurance that our due diligence processes will uncover all relevant facts that would be material to an investment decision. Before making an investment, we will assess the strength of the underlying assets and other factors that we believe are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, we will rely on the resources available to it and, in some cases, an investigation by third parties. This process is particularly important and highly subjective. Our financial condition, results of operations and cash flows depend on our ability to manage our business effectively. Our ability to achieve our investment objective depends on our ability to manage our business and to grow. This depends, in turn, on the Advisor’s ability to identify, invest in and monitor companies that meet our investment criteria. The achievement of our investment objective on a cost-effective basis depends upon the Advisor’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our access to financing on acceptable terms. The Advisor has substantial responsibilities under the Investment Advisory Agreement, as well as responsibilities in connection with the management of other accounts sponsored or managed by the Advisor, members of the Advisor’s investment committee or Kayne Anderson and its affiliates. The personnel of the Administrator and its affiliates may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition, results of operations and cash flows. There are significant potential conflicts of interest that could affect our investment returns. As a result of our arrangements with the Advisor and its affiliates and the Advisor’s investment committee, there may be times when the Advisor or such persons have interests that differ from those of our stockholders, giving rise to a conflict of interest. Conflicts related to obligations the Advisor’s investment committee, the Advisor or its affiliates have to other clients and conflicts related to fees and expenses of such other clients. The members of the Advisor’s investment committee serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do or of accounts sponsored or managed by the Advisor or its affiliates. The Advisor and its affiliates currently manage, and may in the future have, other clients with similar or competing investment objectives. In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders. Our investment objective may overlap with the investment objectives of such affiliated accounts. For example, the Advisor currently manages several private funds, some of which may seek additional capital from time to time, that are pursuing an investment strategy similar to ours, and we may compete with these and other accounts sponsored or managed by the Advisor and its affiliates for capital and investment opportunities. As a result, those individuals may face conflicts in the allocation of investment opportunities among us and other accounts advised by or affiliated with the Advisor. Certain of these accounts may provide for higher management or incentive fees, greater expense reimbursements or overhead allocations, or permit the Advisor and its affiliates to receive higher origination and other transaction fees, all of which may contribute to this conflict of interest and create an incentive for the Advisor to favor such other accounts. For example, the 1940 Act restricts the Advisor and its affiliates from receiving more than a 1% fee in connection with loans that we acquire, or originate, a limitation that does not exist for certain other accounts. The Advisor seeks to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time, and there can be no assurance that we will be able to participate in all investment opportunities that are suitable to us. The Advisor’s investment professionals are engaged in other investment activity on behalf of other clients. Certain investment professionals who are involved in our activities remain responsible for the investment activities of other clients and investment vehicles managed by the Advisor and its affiliates, and they will devote time to the management of such investments and other newly created client portfolios (whether in the form of funds, separate accounts or other vehicles), as well as their own investments. In addition, in connection with the management of investments for other funds, separate accounts and other vehicles, members of Kayne Anderson and its affiliates may serve on the boards of directors of or advise companies which may compete with our portfolio investments. Moreover, these other funds, separate accounts and other vehicles managed by Kayne Anderson and its affiliates may pursue investment opportunities that may also be suitable for us. The Advisor’s investment committee, the Advisor or its affiliates may, from time to time, possess material non-public information, limiting our investment discretion. Principals of the Advisor and its affiliates and members of the Advisor’s investment committee may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material nonpublic information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of applicable law or regulations, we could be prohibited for a period of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us. Our management fee structure may create incentives for the Advisor that are not fully aligned with the interests of our stockholders and may induce the Advisor to make speculative investments. In the course of our investing activities, we pay management fees to the Advisor. The management fee is based on the fair market value of investments including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. As a result, investors in our Shares will invest on a “gross” basis and receive distributions on a “net” basis after expenses, resulting in a lower rate of return than one might achieve through direct investments. Because this fee is based on our fair market value of investments, the Advisor benefits when we incur debt or use leverage. Under certain circumstances, the use of leverage may increase the likelihood of default, which would disfavor our stockholders. Our Board of Directors is charged with protecting our stockholders’ interests by monitoring how the Advisor addresses these and other conflicts of interest associated with its management services and compensation. The valuation process for certain of our portfolio holdings creates a conflict of interest. The majority of our portfolio investments are expected to be made in the form of securities that are not publicly traded and for which no market quotations are readily available. As a result, our Board of Directors will determine the fair value of these securities in good faith. In addition, in connection with that determination, investment professionals from the Advisor may provide our Board of Directors with portfolio company valuations based upon the most recent portfolio company financial statements available and projected financial results of each portfolio company. The participation of the Advisor’s investment professionals in our valuation process could result in a conflict of interest as the Advisor’s management fee is based, in part, on our fair market value of investments including assets purchased with borrowed funds or other forms of leverage, excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. Conflicts related to other arrangements with the Advisor or its affiliates. We have entered into a license agreement with the Advisor under which the Advisor has granted us a non-exclusive, royalty-free license to use the name “Kayne Anderson.” In addition, we reimburse the Administrator for its costs and expenses incurred in performing its obligations under the Administration Agreement. As we reimburse the Administrator for its expenses, we will indirectly bear such cost. This arrangement and others may create conflicts of interest that our Board of Directors must monitor. The Investment Advisory Agreement and the Administration Agreement were not negotiated on an arm’s-length basis and may not be as favorable to us as if they had been negotiated with an unaffiliated third party. The Investment Advisory Agreement and the Administration Agreement were negotiated between related parties. Consequently, their terms, including fees payable to the Advisor, may not be as favorable to us as if they had been negotiated with an unaffiliated third party. In addition, we may choose not to enforce, or to enforce less vigorously, our rights and remedies under these agreements because of our desire to maintain our ongoing relationship with the Advisor, the Administrator and their respective affiliates. Any such decision, however, would breach our fiduciary obligations to our stockholders. We generally may make investments that could give rise to a conflict of interest and our ability to enter into transactions with our affiliates will be restricted. We, along with our Advisor and certain of its affiliates, have obtained exemptive relief from the SEC to permit us to invest alongside certain entities and accounts advised by the Advisor and its affiliates subject to certain conditions. We intend to invest alongside our Advisor’s and/or its affiliates’ other clients, in certain circumstances where doing so is consistent with applicable law and SEC staff interpretations, guidance and exemptive relief orders. Pursuant to such exemptive relief, and subject to certain conditions, we are permitted to co-investment in the same security with our affiliates in a manner that is consistent with our investment objective, investment strategy, regulatory consideration and other relevant factors. If opportunities arise that would otherwise be appropriate for us and an affiliate to purchase different securities in the same issuer, our Advisor will need to decide which account will proceed with such investment. Our Advisor’s investment allocation policy incorporates the conditions of exemptive relief to seek to ensure that investment opportunities are allocated in a manner that is fair and equitable. However, although the Advisor endeavors to fairly allocate investment opportunities in the long-run, we can offer no assurance that investment opportunities will be allocated to us fairly or equitably in the short-term or over time. We do not expect to invest in, or hold securities of, companies that are controlled by our affiliates’ other clients. However, our affiliates’ other clients may invest in, and gain control over, one of our portfolio companies. If our affiliates’ other client or clients gain control over one of our portfolio companies, this may create conflicts of interest and subject us to certain restrictions under the 1940 Act. As a result of these conflicts and restrictions our Advisor may be unable to implement our investment strategies as effectively as they could have in the absence of such conflicts or restr |
Risks Relating to Our Investments [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks Relating to Our Investments Economic recessions or downturns could impair our portfolio companies and defaults by our portfolio companies will harm our operating results. Many of our portfolio companies in which we may invest are susceptible to economic slowdowns or recessions and may experience declines in revenue, and in turn, declines in cash flows during these periods and be unable to repay our loans during these periods. Therefore, the value of our portfolio is likely to decrease during these periods and the portion of our investments that are considered to be non-performing is likely to increase. Adverse economic conditions may decrease the value of collateral securing some of our loans and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, lenders in certain cases can be subject to lender liability claims for actions taken by them when they become too involved in the borrower’s business or exercise control over a borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken if we render managerial assistance to the borrower. Higher levels of inflation can reduce our returns and the value of our investments. During any period of higher-than-normal levels of inflation, such as the current inflationary environment, interest rates typically increase. Higher interest rates will increase the cost of our borrowings and reduce returns to stockholders (including resulting in lower dividend payments by us). Further, in response to rising risk-free interest rates, market participants could require higher rates of interest on the types of loans and credit investments that we own, which would decrease the value of those investments. In an effort to control inflation, the Federal Open Market Committee, the committee within the Federal Reserve that sets domestic monetary policy, raised the target range for the federal funds rate seven times in calendar year 2022 to a current range of 4.25% to 4.50%. The Federal Reserve has signaled that further increases will likely happen in 2023. Rising rates generally have a negative impact on income-oriented investments such as those in which we invest and could be adversely impacted by these actions. There is no assurance that the actions being taken by the Federal Reserve will improve the outlook for long-term inflation or whether they might result in a recession. A recession could lead to declined employment, global demand destruction and/or business failures, which may result in a decline in the value of our portfolio. In addition, increased interest rates could increase our cost of borrowing and reduce the return on leverage to common shareholders. Limitations of investment due diligence expose us to investment risk. Our due diligence may not reveal all of a portfolio company’s liabilities and may not reveal other weaknesses in its business. We can offer no assurance that our due diligence processes will uncover all relevant facts that would be material to an investment decision. Before making an investment in, or a loan to, a company, the Advisor will assess the strength and skills of a company’s management and other factors that it believes are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, the Advisor will rely on the resources available to it and, in some cases, an investigation by third parties. This process is particularly important and highly subjective with respect to newly organized entities because there may be little or no information publicly available about the entities. We may make investments in, or loans to, companies which are not subject to public company reporting requirements including requirements regarding preparation of financial statements and our portfolio companies may utilize divergent reporting standards that may make it difficult for the Advisor to accurately assess the prior performance of a portfolio company. We will, therefore, depend upon the compliance by investment companies with their contractual reporting obligations. As a result, the evaluation of potential investments and our ability to perform due diligence on, and effectively monitor investments, may be impeded, and we may not realize the returns which we expect on any particular investment. In the event of fraud by any company in which we invest or with respect to which we make a loan, we may suffer a partial or total loss of the amounts invested in that company. Our debt investments may be risky and we could lose all or part of our investments. The debt that we invest in is typically not initially rated by any rating agency, but we believe that if such investments were rated, they would be below investment grade (rated lower than “Baa3” by Moody’s Investors Service, lower than “BBB-” by Fitch Ratings or lower than “BBB-” by Standard & Poor’s Ratings Services), which under the guidelines established by these entities is an indication of having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Bonds that are rated below investment grade are sometimes referred to as “high yield bonds” or “junk bonds.” Therefore, our investments may result in an above average amount of risk and volatility or loss of principal. Defaults by our portfolio companies will harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets, which could trigger cross-defaults under other agreements and jeopardize such company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, lenders in certain cases can be subject to lender liability claims for actions taken by them when they become too involved in the borrower’s business or exercise control over a borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken if we render managerial assistance to the borrower. Moreover, some of the loans in which we may invest may be “covenant-lite” loans. We use 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 we invest in “covenant-lite” loans, we 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. We may invest in highly leveraged companies, which could cause you to lose all or part of your investment. Investment in leveraged companies involves a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold. Such developments may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that we may have obtained in connection with our investment. Smaller leveraged companies also may have less predictable operating results and may require substantial additional capital to support their operations, finance their expansion or maintain their competitive position. We may hold the debt securities of leveraged companies that may, due to the significant volatility of such companies, enter into bankruptcy proceedings. Leveraged companies may experience bankruptcy or similar financial distress. The bankruptcy process has a number of significant inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of the creditors. A bankruptcy filing by an issuer may adversely and permanently affect the issuer. If the proceeding is converted to a liquidation, the value of the issuer may not equal the liquidation value that was believed to exist at the time of the investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective. The administrative costs of a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, any contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial. Depending on the facts and circumstances of our investments and the extent of our involvement in the management of a portfolio company, upon the bankruptcy of a portfolio company, a bankruptcy court may recharacterize our debt investments as equity interests and subordinate all or a portion of our claim to that of other creditors. This could occur even though we may have structured our investment as senior debt. Our investments in private middle-market companies are risky, and you could lose all or part of your investment. Investment in private middle-market companies involves a number of significant risks. Generally, little public information exists about these companies, and we rely on the ability of the Advisor’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If the Advisor is unable to uncover all material information about these companies, it may not make a fully informed investment decision, and we may lose money on our investments. Middle-market companies generally have less predictable operating results and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. Middle-market companies may have limited financial resources, may have difficulty accessing the capital markets to meet future capital needs and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees we may have obtained in connection with our investment. In addition, such companies typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns. Additionally, middle-market companies are more likely to depend on the management talents and efforts of a small group of persons. Therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us. Middle-market companies also may be parties to litigation and may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence. In addition, our executive officers, directors and the Advisor may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies. Subordinated liens on collateral securing debt investments that we will make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us. Certain debt investments that we make in portfolio companies will be secured on a second priority basis by the same collateral securing senior debt of such companies. The first priority liens on the collateral will secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements governing the debt. The holders of obligations secured by the first priority liens on the collateral will generally control the liquidation of and be entitled to receive proceeds from any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral would be sufficient to satisfy the debt obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds are not sufficient to repay amounts outstanding under the debt obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the portfolio company’s remaining assets, if any. We may also make unsecured debt investments in portfolio companies, meaning that such investments will not benefit from any interest in collateral of such companies. Liens on such portfolio companies’ collateral, if any, will secure the portfolio company’s obligations under its outstanding secured debt and may secure certain future debt that is permitted to be incurred by the portfolio company under its secured debt agreements. The holders of obligations secured by such liens will generally control the liquidation of, and be entitled to receive proceeds from, any realization of such collateral to repay their obligations in full before us. In addition, the value of such collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of such collateral would be sufficient to satisfy our unsecured debt obligations after payment in full of all secured debt obligations. If such proceeds were not sufficient to repay the outstanding secured debt obligations, then our unsecured claims would rank equally with the unpaid portion of such secured creditors’ claims against the portfolio company’s remaining assets, if any. The rights we may have with respect to the collateral securing any junior priority loans we make in our portfolio companies may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of senior debt. Under such an intercreditor agreement, at any time that senior obligations are outstanding, we may forfeit certain rights with respect to the collateral to the holders of these senior obligations. These rights may include the right to commence enforcement proceedings against the collateral, the right to control the conduct of such enforcement proceedings, the right to approve amendments to collateral documents, the right to release liens on the collateral and the right to waive past defaults under collateral documents. We may not have the ability to control or direct such actions, even if as a result our rights as junior lenders are adversely affected. The lack of liquidity in our investments may adversely affect our business. We may invest in companies that are experiencing financial difficulties, which difficulties may never be overcome. Our investments will be illiquid in most cases, and there can be no assurance that we will be able to realize on such investments in a timely manner. A substantial portion of our investments in leveraged companies are and will be subject to legal and other restrictions on resale or will otherwise be less liquid than more broadly traded public securities. The illiquidity of these investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we, the Advisor or any of its affiliates have material nonpublic information regarding such portfolio company. In addition, we generally expect to invest in securities, instruments and assets that are not, and are not expected to become, publicly traded. We will generally not be able to sell securities publicly unless the sale is registered under applicable securities laws, or unless an exemption from such registration requirements is available. In certain cases, we may also be prohibited by contract from selling an investment for a period of time or otherwise be restricted from disposing of the investment. Furthermore, certain types of investments expected to be made may require a substantial length of time to realize a return or fully liquidate. Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our NAV through increased net unrealized depreciation. As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by our Advisor. As part of the valuation process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments: ● the enterprise value of the portfolio company; ● the nature and realizable value of any collateral; ● the company’s ability to make interest payments, amortization payments (if any) and other fixed charges; ● call features, put features and other relevant terms of the debt security; ● the company’s historical and projected financial results; ● the markets in which the portfolio company does business; and ● changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we use the pricing indicated by the external event to corroborate our valuation. We record decreases in the market values or fair values of our investments as unrealized depreciation. Declines in prices and liquidity in the corporate debt markets may result in significant net unrealized depreciation in our portfolio. The effect of all of these factors on our portfolio may reduce our NAV by increasing net unrealized depreciation in our portfolio. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our prospective portfolio companies may prepay loans, which may reduce our yields if capital returned cannot be invested in transactions with equal or greater expected yields. The loans in our investment portfolio may be prepaid at any time, generally with little advance notice. Whether a loan is prepaid will depend both on the continued positive performance of the portfolio company and the existence of favorable financing market conditions that allow such company the ability to replace existing financing with less expensive capital. As market conditions change, we do not know when, and if, prepayment may be possible for each portfolio company. In some cases, the prepayment of a loan may reduce our achievable yield if the capital returned cannot be invested in transactions with equal or greater expected yields, which could have a material adverse effect on our business, financial condition and results of operations. Our investments in portfolio companies may expose us to environmental risks. We may invest in companies engaged in the ownership (direct or indirect), operation, management or development of real properties that may contain hazardous or toxic substances, and, therefore, may be potentially liable for removal or remediation costs, as well as certain other costs, including governmental fines and liabilities for injuries to persons and property. The existence of any such material environmental liability could have a material adverse effect on the results of operations, cash flow and share price of any such portfolio company. As a result, our investment performance could suffer substantially. There can be no guarantee that all costs and risks regarding compliance with environmental laws and regulations can be identified. New and more stringent environmental and health and safety laws, regulations and permit requirements or stricter interpretations of current laws or regulations could impose substantial additional costs on portfolio investment or potential investments. Compliance with such current or future environmental requirements does not ensure that the operations of the portfolio investments will not cause injury to the environment or to people under all circumstances or that the portfolio investments will not be required to incur additional unforeseen environmental expenditures. Moreover, failure to comply with any such requirements could have a material adverse effect on an investment, and we can offer no assurance that the portfolio investments will at all times comply with all applicable environmental laws, regulations and permit requirements. Our prospective portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity, and rising interest rates may make it more difficult for portfolio companies to make periodic payments on their loans. The portfolio companies in which we expect to invest may be unable to repay or refinance outstanding principal on their loans at or prior to maturity. This risk and the risk of default is increased to the extent that the loan documents do not require the portfolio companies to pay down the outstanding principal of such debt prior to maturity. In addition, if general interest rates rise, there is a risk that our portfolio companies will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows. We have not yet identified all of the portfolio company investments we will acquire. We have not yet identified all potential investments for our portfolio that we will acquire with the proceeds of sales of our securities or repayments of investments currently in our portfolio. Privately negotiated investments in illiquid securities or private middle-market companies require substantial due diligence and structuring, and we cannot assure you that we will achieve our anticipated investment pace or that we will continue to identify sufficient suitable investment opportunities to deploy all Capital Commitments successfully. The Advisor selects all of our investments, and our stockholders will have no input with respect to such investment decisions. These factors increase the uncertainty, and thus the risk, of investing in our securities. While we seek to identify additional investment opportunities, we may also invest the net proceeds in cash, cash equivalents, U.S. government securities and high- quality debt investments that mature in one year or less from the date such investment. We expect these temporary investments to earn yields substantially lower than the income that we expect to receive in respect of our targeted investment types. As a result, any distributions we make during this period may be substantially smaller than the distributions that we expect to pay when our portfolio is fully invested. We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer. We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our NAV may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our asset diversification requirements as a RIC under the Code, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry. Our portfolio may be concentrated in a limited number of portfolio companies and industries. As a result, the aggregate returns we realize may be significantly and adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, while we are not targeting any specific industries, our investments may be concentrated in relatively few industries. For example, although we may classify the industries of our portfolio companies by end-market (such as health market or business services) and not by the products or services (such as software) directed to those end-markets, some of our portfolio companies may principally provide software products or services, which exposes us to downturns in that sector. As a result, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize. Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio. Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in seeking to: ● increase or maintain in whole or in part our position as a creditor or equity ownership percentage in a portfolio company; ● exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or ● preserve or enhance the value of our investment. We have discretion to make follow-on investments, subject to the availability of capital resources. Failure on our part to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful portfolio company. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our level of risk, because we prefer other opportunities or because of regulatory or other considerations. Our ability to make follow-on investments may also be limited by the Advisor’s allocation policy. Because we generally do not hold controlling equity interests in our portfolio companies, we may not be able to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments. To the extent that we do not hold controlling equity interests in portfolio companies, we will have a limited ability to protect our position in such portfolio companies. We may also co-invest with third parties through partnerships, joint ventures or other entities. Such investments may involve risks in connection with such third-party involvement, including the possibility that a third-party co-investor may have economic or business interests or goals that are inconsistent with ours or may be in a position to take (or block) action in a manner contrary to our investment objective. In those circumstances where such third parties involve a management group, such third parties may receive compensation arrangements relating to such investments, including incentive compensation arrangements. There is no assurance that portfolio company management will be able to operate their companies in accordance with our expectations. The day-to-day operations of each portfolio company in which we invest will be the responsibility of that portfolio company’s management team. Although we will be responsible for monitoring the performance of each investment and generally intend to invest in portfolio companies operated by strong management, there can be no assurance that the existing management team, or any successor, will be able to operate any such portfolio company in accordance with our expectations. There can be no assurance that a portfolio company will be successful in retaining key members of its management team, the loss of whom could have a material adverse effect on us. Although we generally intend to invest in companies with strong management, there can be no assurance that the existing management of such companies will continue to operate a company successfully. Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies and such portfolio companies may not generate sufficient cash flow to service their debt obligations to us. We may invest a portion of our capital in second lien and subordinated loans issued by our portfolio companies. Our portfolio companies may have, or be permitted to incur, other debt that ranks equally with, or senior to, the debt securities in which we invest. Such subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the obligor or in general economic conditions. If we make a subordinated investment in a portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in |
Risks Relating to Our Common Stock [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks Relating to Our Common Stock There is no public market for our Shares, and we do not expect there to be a market for our Shares. There is no existing trading market for our Shares, and no market for our Shares may develop in the future. If developed, any such market may not be sustained. In the absence of a trading market, holders of our Shares may be unable to liquidate an investment in our shares. Our Shares have not been registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. There are restrictions on the ability of holders of our Common Stock to transfer shares in excess of the restrictions typically associated with a private offering of securities under Regulation D and other exemptions from registration under the Securities Act, and these additional restrictions could further limit the liquidity of an investment in our Shares and the price at which holders may be able to sell the shares. We are relying on an exemption from registration under the Securities Act and state securities laws in offering our Shares pursuant to the Subscription Agreements. As such, absent an effective registration statement covering our Common Stock, such shares may be resold only in transactions that are exempt from the registration requirements of the Securities Act and with our prior consent. Our Common Stock will have limited transferability which could delay, defer or prevent a transaction or a change of control of the Company that might involve a premium price for our securities or otherwise be in the best interest of our stockholders. During extended periods of capital market disruption and instability, there is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital. We intend to make periodic distributions to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this Annual Report on Form 10-K. Due to the asset coverage test applicable to us under the 1940 Act as a BDC, we may be limited in our ability to make distributions. If we declare a distribution and if more stockholders opt to receive cash distributions rather than participate in our dividend reinvestment plan, we may be forced to sell some of our investments in order to make cash distributions payments. To the extent we make distributions to stockholders that include a return of capital, such portion of the distribution essentially constitutes a return of the stockholder’s investment. Although such return of capital may not be taxable, such distributions may increase an investor’s tax liability for capital gains upon the future sale of our Common Stock. A return of capital distribution may cause a stockholder to recognize a capital gain from the sale of our Common Stock even if the stockholder sells its shares for less than the original purchase price. Investing in our Common Stock may involve an above average degree of risk. The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our shares may not be suitable for someone with lower risk tolerance. In addition, our Common Stock is intended for long-term investors who can accept the risks of investing primarily in illiquid loans and other debt or debt-like instruments and should not be treated as a trading vehicle. Our stockholders may receive our Shares as dividends, which could result in adverse tax consequences to them. In order to satisfy the annual distribution requirement applicable to RICs, we will have the ability to declare a large portion of a dividend in our Shares instead of in cash. As long as a portion of such dividend is paid in cash (which portion may be as low as 20% of such dividend) and certain requirements are met, the entire distribution will be treated as a dividend for U.S. federal income tax purposes. As a result, a stockholder generally would be subject to tax on 100% of the fair market value of the dividend on the date the dividend is received by the stockholder in the same manner as a cash dividend, even though most of the dividend was paid in our Shares. We currently do not intend to pay dividends in our Shares. We may in the future determine to issue preferred stock, which could adversely affect the value of shares of Common Stock. The issuance of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could make an investment in shares of Common Stock less attractive. In addition, the dividends on any preferred stock we issue must be cumulative. Payment of dividends and repayment of the liquidation preference of preferred stock must take preference over any distributions or other payments to holders of Common Stock, and holders of preferred stock are not subject to any of our expenses or losses and are not entitled to participate An investor may be subject to filing requirements under the Exchange Act as a result of an investment in us. Because our Common Stock is registered under the Exchange Act, ownership information for any person who beneficially owns 5% or more of our Common Stock must 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. Although we will provide in our quarterly financial statements the amount of outstanding stock and the amount of the investor’s stock, the responsibility for determining the filing obligation and preparing the filing remains with the investor. In addition, owners of 10% or more of our Common Stock are subject to reporting obligations under Section 16(a) of the Exchange Act. An investor may be subject to the short-swing profits rules under the Exchange Act as a result of an investment in us. Persons with the right to appoint a director or who hold 10% or more of a class of our shares may be subject to Section 16(b) of the Exchange Act, which recaptures for the benefit of the issuer profits from the purchase and sale of registered stock within a six-month period. |
GENERAL RISK FACTORS [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | GENERAL RISK FACTORS Political, social and economic uncertainty, including uncertainty related to the COVID-19 pandemic, creates and exacerbates risks. Social, political, economic and other conditions and events (such as natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) will occur that create uncertainty and have significant impacts on issuers, industries, governments and other systems, including the financial markets, to which companies and their investments are exposed. As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, more frequently, adversely impact issuers in other countries, regions or markets, including in established markets such as the U.S. Such risks include the large-scale invasion of Ukraine by Russia that began in February 2022, heightened tensions between China and Taiwan, or the effect on world leaders and governments of global health pandemics, such as the COVID-19 pandemic. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. We do not currently have portfolio investments with exposure to China, Taiwan, Russia or Ukraine. Uncertainty can result in or coincide with, among other things: increased volatility in the financial markets for securities, derivatives, loans, credit and currency; a decrease in the reliability of market prices and difficulty in valuing assets (including portfolio company assets); greater fluctuations in spreads on debt investments and currency exchange rates; increased risk of default (by both government and private obligors and issuers); further social, economic, and political instability; nationalization of private enterprise; greater governmental involvement in the economy or in social factors that impact the economy; changes to governmental regulation and supervision of the loan, securities, derivatives and currency markets and market participants and decreased or revised monitoring of such markets by governments or self-regulatory organizations and reduced enforcement of regulations; limitations on the activities of investors in such markets; controls or restrictions on foreign investment, capital controls and limitations on repatriation of invested capital; the significant loss of liquidity and the inability to purchase, sell and otherwise fund investments or settle transactions (including, but not limited to, a market freeze); unavailability of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have substantial negative effects on credit and securities markets as well as the economy as a whole; recessions; and difficulties in obtaining and/or enforcing legal judgments. For example, the COVID-19 pandemic led to disruptions in local, regional, national and global markets and economies. With respect to the U.S. credit markets (in particular for middle market loans), this outbreak resulted in the following among other things: (i) significant disruption to the businesses of many middle-market loan borrowers including supply chains, demand and practical aspects of their operations, as well as in lay-offs of employees; (ii) increased draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and difficulty in valuing loans during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments to address problems experienced by the markets and by businesses and the economy in general which were not necessarily adequate to address the problems faced by the loan market and middle market businesses. Although many of these conditions have improved or resolved over the course of the pandemic, similar consequences could occur in the future as a result of new variants of the virus or other infectious diseases. The COVID-19 outbreak has had, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by us and returns to us, among other things. Recurring COVID-19 outbreaks, including as a result of new variants of the virus, have led to the re-introduction of public health restrictions in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. It is impossible to determine the scope of any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us and our portfolio companies in which we invest. Although it is impossible to predict the precise nature and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty on applicable laws or regulations that impact us and our targeted investments, it is clear that these types of events are impacting and will, for at least some time, continue to impact us and our targeted investments and, in certain instances, the impact will be adverse and profound. If public health uncertainties and market disruptions continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies may increase. In addition, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income which would have a material adverse effect on our business, financial condition or results of operations. We will also be negatively affected if the operations and effectiveness of us or a portfolio company (or any of the key personnel or service providers of the foregoing) is compromised or if necessary or beneficial systems and processes are disrupted. We are subject to risks related to corporate responsibility. Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business. 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. In addition, 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. In addition, the SEC has announced that it is working on proposals for mandatory disclosure of certain ESG-related matters, including with respect to corporate and fund carbon emissions, board diversity and human capital management. At this time, there is uncertainty regarding the scope of such proposals or when they would become effective (if at all). Compliance with any new laws or regulations increases our regulatory burden and could make compliance more difficult and expensive, affect the manner in which we or our portfolio companies conduct our businesses and adversely affect our profitability. We may be the target of litigation. We may be the target of securities litigation in the future, particularly if the value of our Shares fluctuates significantly. We could also generally be subject to litigation, including derivative actions by our stockholders. Any litigation could result in substantial costs and divert management’s attention and resources from our business and cause a material adverse effect on our business, financial condition and results of operations. We may experience fluctuations in our quarterly operating results. We could experience fluctuations in our quarterly operating results due to a number of factors, including the interest rate payable on the debt securities we acquire, the default rate on such securities, the number and size of investments we originate or acquire, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. In light of these factors, results for any period should not be relied upon as being indicative of our performance in future periods. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Note 1. Organization Organization Kayne DL 2021, Inc. (the “Company”) is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company intends to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company was formed as a Delaware corporation to make investments in middle-market companies and commenced operations on December 16, 2021. As of December 31, 2022, the Company has entered into subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of the Company’s common stock. See Note 12 – Subsequent Events. KA Credit Advisors II, LLC (the “Advisor”) serves as the Company’s investment advisor. The Advisor is an indirect subsidiary of Kayne Anderson Capital Advisors, L.P. (“KACALP” or “Kayne Anderson”). The Advisor is registered with the Securities and Exchange Commission (“SEC”) as an investment advisor under the Investment Advisory Act of 1940, as amended. Subject to the overall supervision of the Company’s board of directors (the “Board”), the Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments, determining the value of the investments and monitoring its investments and portfolio companies on an ongoing basis. The Board consists of five directors, four of whom are independent (including the Board’s chairperson). The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies. The Company conducts private offerings of its Common Stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). At the closing of any private offering, each investor will make a capital commitment (a “Capital Commitment”) to purchase shares of its Common Stock (“Shares”) pursuant to a subscription agreement entered into with the Company. Investors will be required to fund drawdowns to purchase Shares up to the amount of their respective Capital Commitments each time the Company delivers a notice to the investors. The Company commenced its loan origination and investment activities on December 16, 2021 contemporaneously with the initial drawdown from investors in the private offering. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies A. Basis of Presentation B. Consolidation C. Use of Estimates D. Cash and Cash Equivalents E. Investment Valuation, Fair Value Fair Value Measurement and Disclosures In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. Pursuant to Rule 2a-5 and effective September 1, 2022, the Board of Directors designated the Advisor as the “valuation designee” to perform fair value determinations of the Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board. The valuation designee will perform fair valuation of the Company’s portfolio holdings in accordance with the Company’s Valuation Program, as approved by the Board. The Advisor’s internal valuation process did not materially change as a result of Rule 2a-5. Traded Investments (Level 1 or Level 2) Investments for which market quotations are readily available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes, loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices are stale or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the Company’s valuation process for investments that are privately issued or otherwise restricted as to resale. The Company may also invest, to a lesser extent, in equity securities purchased in conjunction with debt investments. While the Company anticipates these equity securities to be issued by privately held companies, the Company may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock Market, Inc. (“NASDAQ”) are valued, except as indicated below, at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices. Non-Traded Investments (Level 3) Investments that are privately issued or otherwise restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the Company’s Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the security on the valuation date. The Company expects that a significant majority of its investments will be Level 3 investments. Unless otherwise determined by the Advisor, the following valuation process is used for the Company’s Level 3 investments: ● Valuation Designee The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments ● Valuation Firm. ● Oversight . Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to the Company’s financial statements will express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements. F. Interest Income Recognition Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection. G. Debt Issuance Costs H. Dividends to Common Stockholders I. Organizational Costs organizational expenses include costs and expenses relating to the formation and organization of the Company. The Company has agreed to reimburse the Advisor for these costs which are expensed as incurred. J. Offering Costs K. Income Taxes As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution of earnings to stockholders, the Company will not be subject to U.S. federal income tax. The Company must pay distributions equal to 90% of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes. The Company will be subject to federal income tax on any undistributed portion of income. For purposes of the distribution test, the Company may elect to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year if such distributions are declared before the due date of its tax return, including any extensions. All RICs are subject to a non-deductible 4% excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii) undistributed amounts from previous years on which the Company paid no U.S. federal income tax. A distribution will be treated as paid during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year, payable to stockholders of record on a date during such months and paid by the Company no later than January of the following year. Any such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year the distributions are declared, rather than when the distributions are actually received. The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. L. LIBOR Transition M. Commitments and Contingencies |
Agreements and Related Party Tr
Agreements and Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Agreements and Related Party Transactions | Note 3. Agreements and Related Party Transactions A. Administration Agreement The Company will reimburse the Administrator for its costs and expenses incurred in performing its obligations under the Administration Agreement. As the Company reimburses the Administrator for its expenses, the Company will indirectly bear such cost. The Administration Agreement may be terminated by either party with 60 days’ written notice. B. Investment Advisory Agreement Management Fee The management fee will be calculated at an annual rate of 0.75% of the fair market value of the Company’s investments including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. The management fee will be payable quarterly in arrears and calculated based on the average value, at the end of the two most recently completed calendar quarters, of our fair market value of investments, including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. Management fees for any partial quarter will be appropriately pro-rated. For the years ended December 31, 2022 and 2021, the Company incurred management fees of $337 and $2, respectively. C. Other |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Investments | Note 4. Investments The following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Amortized Fair Amortized Fair Cost Value Cost Value First-lien senior secured debt investments $ 105,083 $ 107,312 $ 11,499 $ 11,761 Short-term investments - - 31,239 31,239 Total Investments $ 105,083 $ 107,312 $ 42,738 $ 43,000 As of December 31, 2022, $4,601 of the Company’s total assets were non-qualifying assets as defined by Section 55(a) of the 1940 Act. As of December 31, 2021, all of the Company’s investments were qualifying assets as defined by Section 55(a) of the 1940 Act. Beginning with the three months ended March 31, 2022, the Company uses Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies. As of December 31, 2021, the Company used GICS, Level 2 – Industry Group. The industry composition of long-term investments based on fair value as of December 31, 2022 and 2021 was as follows: December 31, Trading companies & distributors 15.4 % Food products 12.6 % Health care providers & services 12.6 % IT services 9.0 % Professional services 7.6 % Commercial services & supplies 6.6 % Containers & packaging 5.2 % Aerospace & defense 4.5 % Biotechnology 3.8 % Wireless telecommunication services 3.4 % Machinery 2.8 % Software 2.8 % Textiles, apparel & luxury goods 2.6 % Building products 2.1 % Diversified telecommunication services 1.6 % Auto components 1.6 % Healthcare equipment & supplies 1.6 % Electronic equipment, instruments & components 1.4 % Leisure products 1.2 % Insurance 1.2 % Chemicals 0.2 % Asset management & custody banks 0.2 % Total 100.0 % December 31, Health care equipment & services 39.8 % Food & beverage 22.7 % Consumer durables & apparel 19.9 % Telecommunication services 8.0 % Capital goods 6.0 % Software & services 3.6 % Total 100.0 % |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 5. Fair Value The Fair Value Measurement Topic of the FASB Accounting Standards Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants under current market conditions at the measurement date. As required by ASC 820, the Company has performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their fair value determination. Inputs are the assumptions, along with considerations of risk, that a market participant would use to value an asset or a liability. In general, observable inputs are based on market data that is readily available, regularly distributed and verifiable that the Company obtains from independent, third-party sources. Unobservable inputs are developed by the Company based on its own assumptions of how market participants would value an asset or a liability. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories. Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement. Level 2 — Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers. Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best available information. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The following table presents the fair value hierarchy of investments as of December 31, 2022 and 2021. Note that the valuation levels below are not necessarily an indication of the risk or liquidity associated with the underlying investment. Fair Value Hierarchy as of December 31, 2022 Investments: Level 1 Level 2 Level 3 Total First-lien senior secured debt investments $ - $ - $ 107,312 $ 107,312 Short-term investments - - - - Total Investments $ - $ - $ 107,312 $ 107,312 Fair Value Hierarchy as of December 31, 2021 Investments: Level 1 Level 2 Level 3 Total First-lien senior secured debt investments $ - $ - $ 11,761 $ 11,761 Short-term investments 31,239 - - 31,239 Total Investments $ 31,239 $ - $ 11,761 $ 43,000 For the years ended December 31, 2022 and 2021, the Company did not recognize any transfers to or from Level 3. The following tables present changes in the fair value of investments (all of which were first-lien senior secured debt investments) for which Level 3 inputs were used to determine the fair value as of and for years ended December 31, 2022 and 2021: For the year ended December 31, Fair value, beginning of period $ 11,761 Purchases of investments 95,709 Proceeds from sales of investments and principal repayments (2,343 ) Net change in unrealized gain (loss) 1,968 Net realized gain (loss) 1 Net accretion of discount on investments 216 Transfers into (out of) Level 3 - Fair value, end of period $ 107,312 For the year ended December 31, Fair value, beginning of period $ - Purchases of investments 11,504 Proceeds from principal payments and sales of investments (6 ) Net change in unrealized gain (loss) 262 Net accretion of discount on investments 1 Transfers into (out of) Level 3 - Fair value, end of period $ 11,761 The increase in unrealized gain (loss) relates to investments that were held during the period. The Company includes these unrealized gains and losses on the Statement of Operations – Net Change in Unrealized Gains (Losses). Valuation Techniques and Unobservable Inputs Non-traded debt investments are typically valued using either a market yield analysis or an enterprise value analysis. For debt investments that are not considered to be credit impaired, the Company uses a market yield analysis to determine fair value. If the debt investment is considered to be credit impaired (which is determined by performing an enterprise value analysis), the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. To determine fair value using a market yield analysis, the Company discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield). To determine the estimated market yield for its debt investments, the Company analyzes changes in the risk/reward (measured by yields and leverage) of middle market indices as compared to changes in risk/reward for the underlying investment and estimates the appropriate discount rate for such debt investment. In this context, the discount rate and fair market value of the investment is impacted by the structure and pricing of the security relative to current market yields for similar investments in similar businesses as well as the financial performance of such business. In performing this analysis, the Company considers data sources including, but not limited to: (i) industry publications, such as S&P Global’s High-End Middle Market Lending Review; Thomson Reuter’s Refinitiv Middle Market Monthly Stats; CapitalIQ; Pitchbook News; The Lead Left, and other data sources; (ii) comparable investments reviewed or completed by affiliates of the Advisor, and (iii) information obtained and provided by the Advisor’s independent valuation managers. To determine if a debt investment is credit impaired, the Company estimates the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business. The Company utilizes the following valuation methodologies to determine the estimated enterprise value of the company: (i) analysis of valuations of publicly traded companies in a similar line of business (“public company comparable analysis”), (ii) analysis of valuations of M&A transaction valuations for companies in a similar line of business (“precedent transaction analysis”), (iii) discounted cash flows (“DCF analysis”) and (iv) other valuation methodologies. In determining the non-traded debt investment valuations, the following factors are considered, where relevant: the nature and realizable value of any collateral; the company’s ability to make interest payments, amortization payments (if any) and other fixed charges; call features, put features and other relevant terms of the debt security; the company’s historical and projected financial results; the markets in which the company does business; changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be valued; and other relevant factors. Equity investments in private companies are typically valued using one of or a combination of the following valuation techniques: (i) public company comparable analysis, (ii) precedent transaction analysis and (iii) DCF analysis. Under all of these valuation techniques, the Advisor estimates operating results of the companies in which it invests, including earnings before interest expense, income tax expense, depreciation and amortization (“EBITDA”) and free cash flow. These estimates utilize unobservable inputs such as historical operating results, which may be unaudited, and projected operating results, which will be based on operating assumptions for such company. Investment performance data utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in information. These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the industry. Other unobservable inputs utilized in the valuation techniques outlined above include: discounts for lack of marketability, selection of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected required rates of return (discount rates). Quantitative Table for Valuation Techniques The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2022 and 2021. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Advisor’s determination of fair value. As of December 31, 2022 Valuation Unobservable Weighted Fair Value Technique Input Range Average First-lien senior secured debt investments $ 107,312 Discounted cash flow analysis Discount rate 8.7% - 15.0% 9.8 % As of December 31, 2021 Valuation Unobservable Weighted Fair Value Technique Input Range Average First-lien senior secured debt investments $ 11,761 Market Approach - Yield Analysis Credit Spreads 5.00%-6.50% 5.77 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt On February 25, 2022, the Company entered into a senior secured revolving credit facility (the “Subscription Credit Facility”), that has a total commitment of $25,000 and a maturity date of February 22, 2024. The Subscription Credit Facility permits the Company to borrow up to $25,000, subject to availability under the borrowing base which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements. The interest rate on the Subscription Credit Facility is equal to SOFR plus an applicable spread of 1.975% with no floor. The Company is also required to pay a commitment fee of 0.25% per annum on any unused portion of the Subscription Credit Facility. See Note 12 – Subsequent Events. Debt obligations consisted of the following as of December 31, 2022: December 31, 2022 Aggregate Outstanding Principal Amount Available (1) Subscription Credit Facility $ 25,000 $ 750 $ 24,250 Total debt $ 25,000 $ 750 $ 24,250 (1) The amount available reflects any limitations related to the Subscription Credit Facility's borrowing base as of December 31, 2022. For the year ended December 31, 2022, the weighted average interest rate of borrowing outstanding was 5.21%. As of December 31, 2022, the Company had $750 outstanding under the Subscription Credit Facility at a weighted average rate of 6.35%. The Company does not routinely use leverage, and there are many days when there are no borrowings outstanding under its Subscription Credit Facility. There was no Subscription Credit Facility in place at December 31, 2021. |
Share Transactions
Share Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Share Transactions [Abstract] | |
Share Transactions | Note 7. Share Transactions Common Stock Issuances The following table summarizes the number of common stock shares issued and aggregate proceeds received from such issuances related to the Company’s capital call notices pursuant to subscription agreements with investors for the years ended December 31, 2022 and 2021. See Note 12 – Subsequent Events. For the year ended December 31, 2022 Offering Aggregate price per Common stock offering Common stock issue date share shares issued amount June 29, 2022 $ 5,011 1,996 $ 10,000 October 14, 2022 $ 5,068 4,933 $ 25,000 December 9, 2022 $ 5,205 4,803 $ 25,000 Total common stock issued 11,732 $ 60,000 For the year ended December 31, 2021 Offering Aggregate price per Common stock offering Common stock issue date share shares issued amount December 16, 2021 $ 5,000 600 $ 3,000 December 20, 2021 $ 5,000 8,000 40,000 Total common stock issued 8,600 $ 43,000 As of December 31, 2022, the Company had subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of common stock. Of this amount, the Company had $250,535 of undrawn commitments at December 31, 2022. See Note 12 – Subsequent Events. Dividends and Dividend Reinvestment The following table summarizes the dividends declared and payable by the Company for the fiscal year ended December 31, 2022. There were no dividends declared and payable by the Company for the year ended December 31, 2021. See Note 12 - Subsequent Events. Dividend Dividend declaration date Dividend record date Dividend payment date per share April 19, 2022 April 20, 2022 July 27, 2022 $ 6.80 July 19, 2022 July 20, 2022 July 27, 2022 $ 29.00 October 18, 2022 October 13, 2022 October 25, 2022 $ 72.00 December 16, 2022 December 29, 2022 January 13, 2023 $ 86.00 $ 193.80 The following table summarizes the amounts received and shares of common stock issued to shareholders pursuant to the Company’s dividend reinvestment plan (“DRIP”) for the year ended December 31, 2022. See Note 12 – Subsequent Events. Dividend record date Dividend payment date DRIP shares DRIP value April 20, 2022 July 27, 2022 12 $ 58 July 20, 2022 July 27, 2022 60 $ 304 October 13, 2022 October 25, 2022 150 $ 761 222 $ 1,123 For the dividend declared on December 16, 2022 and paid on January 13, 2023, there were 340 shares issued with a DRIP value of $1,750. These shares are excluded from the table above, as the DRIP shares were issued after December 31, 2022. There were no amounts received and shares of common stock issued to shareholders pursuant to the Company’s dividend reinvestment plan for the year ended December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies The Company had an aggregate of $21,148 and $5,300, respectively, of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2022 and 2021. Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and certain operational metrics. The commitment period for these amounts may be shorter than the maturity date if drawn or funded. These commitments are not reflected in the Company’s consolidated statements of assets and liabilities. Consequently, such commitments result in an element of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities. A summary of the composition of the unfunded commitments as of December 31, 2022 and 2021 is shown in the table below: As of As of December 31, December 31, Alcami Corporation (Alcami) $ 890 $ - Allcat Claims Service, LLC 1,723 - Allentown, LLC 606 - American Equipment Holdings LLC 5,000 - American Soccer Company, Incorporated (SCORE) 243 - Atria Wealth Solutions, Inc. 2,784 - Basel U.S. Acquisition Co., Inc. (IAC) 399 - BCI Burke Holding Corp. 618 654 BLP Buyer, Inc. (Bishop Lifting Products) 159 - BR PJK Produce, LLC (Keany) 228 - Brightview, LLC 489 783 CGI Automated Manufacturing, LLC 160 - DISA Holdings Corp. (DISA) 1,189 - FCA, LLC (FCA Packaging) 288 - Guardian Dentistry Partners - 1,977 Gulf Pacific Holdings, LLC 1,120 - IF&P Foods, LLC (FreshEdge) 874 - Improving Acquisition LLC 354 - LSL Industries, LLC (LSL Healthcare) 1,305 - Light Wave Dental Management LLC 677 - MacNeill Pride Group 1,055 - SGA Dental Partners Holdings, LLC 207 1,552 Siegel Egg Co., LLC 192 334 Universal Marine Medical Supply International, LLC (Unimed) 588 - Total unfunded commitments $ 21,148 $ 5,300 From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of December 31, 2022 and 2021, management was not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9. Earnings Per Share In accordance with the provisions of ASC Topic 260, Earnings per Share The following table sets forth the computation of basic and diluted earnings per share of common stock for the years ended December 31, 2022 and 2021. For the years ended December 31, December 31, Net increase (decrease) in net assets resulting from operations $ 4,807 $ (121 ) Weighted average shares of common stock outstanding - basic and diluted 11,046 6,600 Earnings (loss) per share of common stock - basic and diluted $ 435 $ (18 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company has elected to be treated as a RIC under the Code beginning with the taxable year end December 31, 2021. As a RIC, the Company is not subject to a federal excise tax based on distributive requirements of its taxable income on a calendar year basis. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a 4% excise tax on such income, to the extent required. The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, or total distributable earnings (losses), as appropriate. The permanent differences for tax purposes from distributable earnings to additional paid in capital were reclassified for tax purposes for the tax years ended December 31, 2022 and 2021. These reclassifications have no impact on net assets. For the years ended December 31, December 31, Increase (decrease) in distributable earnings $ 137 $ 176 Increase (decrease) in additional paid-in capital $ (137 ) $ (176 ) Taxable income generally differs from the net increase in net assets resulting from operations for financial reporting purposes due to (1) unrealized appreciation (depreciation) on investments, as gains and losses are generally not included in taxable income until these are realized; (2) income or loss recognition on exited investments; (3) non-deductible U.S. federal excise taxes; and (4) other non-deductible expense. The following reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2022 and 2021: For the years ended December 31, December 31, Net increase (decrease) in net assets resulting from operations $ 4,807 $ (121 ) Net change in unrealized losses (gains) from investments (1,968 ) (262 ) Non-deductible expenses, offering costs disallowed 137 6 Other book tax differences (14 ) 207 Taxable income before deductions for distributions $ 2,962 $ (170 ) For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The final determination of tax character will not be made until the Company files its tax return for each tax year and the tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of each calendar year. The tax character of distributions paid to stockholders during the tax years ended December 31, 2022 and 2021 were as follows. There were no distributions paid to stockholders during the tax year December 31, 2021. For the years ended December 31, December 31, Ordinary income $ 2,901 $ - Capital gains - - Return of capital - - Total $ 2,901 $ - For the years ended December 31, 2022 and 2021, the components of accumulated earnings on a tax basis were as follows: For the years ended December 31, December 31, Undistributed net investment income (loss) $ 60 $ - Undistributed capital gains - - Capital loss carryforward - - Other accumulated gain (loss) - - Other temporary book / tax differences (192 ) (207 ) Net unrealized appreciation (depreciation) 2,229 262 Total $ 2,097 $ 55 Capital losses can be carried forward indefinitely to offset future capital gains. As of December 31, 2022 and 2021, the Company had no capital loss carryforwards. As of December 31, 2022 and 2021, the Company’s aggregate unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes was as follows: For the years ended December 31, December 31, Tax cost $ 105,083 $ 42,738 Gross unrealized appreciation 2,289 262 Gross unrealized depreciation (60 ) - Net unrealized appreciation/(depreciation) on investments $ 2,229 $ 262 KDL Corp, LLC, a wholly owned subsidiary that was formed in December 2021, is a Delaware LLC which has elected to be treated as a corporation for U.S. tax purposes. As such, KDL Corp, LLC is subject to U.S. Federal, state and local taxes. For the Company’s tax years ended December 31, 2022 and 2021, KDL Corp, LLC did not have activity resulting in any provision for income taxes. FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes |
Financial Highlights
Financial Highlights | 12 Months Ended |
Dec. 31, 2022 | |
Financial Highlights [Abstract] | |
Financial Highlights | Note 11. Financial Highlights The following per share of common stock data has been derived from information provided in the audited financial statements. The following is a schedule of financial highlights for the years ended December 31, 2022 and 2021: For the years ended December 31, 2022(amounts in 2021 (amounts in Per Common Share Operating Performance (1) Net Asset Value, Beginning of Period (2) $ 4,986 $ 4,976 Results of Operations: Net Investment Income 257 (58 ) Net Realized and Unrealized Gain (Loss) on Investments (3) 104 68 Net Increase (Decrease) in Net Assets Resulting from Operations 361 10 Distributions to Common Stockholders Distributions from Net Investment Income (194 ) - Net Decrease in Net Assets Resulting from Distributions (194 ) - Net Asset Value, End of Period $ 5,153 $ 4,986 Shares Outstanding, End of Period 20,554 8,600 Ratio/Supplemental Data Net assets, end of period $ 105,908 $ 42,879 Weighted-average shares outstanding 11,046 6,600 Total Return (4) 7.3 % (0.3 )% Portfolio turnover 4.9 % 0.1 % Ratio of operating expenses to average net assets (5) 2.5 % N/M Ratio of net investment income (loss) to average net assets (5) 4.7 % N/M (1) The per common share data was derived by using weighted average shares outstanding. (2) For the year ended December 31, 2021, the initial offering price of $5,000 per share less $24 of organizational costs. (3) Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to share transactions during the period. (4) Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company’s dividend reinvestment plan. Total return is not annualized. (5) For the year ended December 31, 2021, not meaningful (N/M). The calculations of the ratio of operating expenses to average net assets and ratio of net investment income (loss) to average net assets are not meaningful, as the Company commenced investment operations on December 16, 2021 and therefore had 16 days of activity during 2021. The expenses of the Company consist primarily of non recurring organizational expense and annual tax preparation and audit expense. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subsequent Events The Company’s management has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that require recognition or disclosure in these financial statements except for the following described below. On January 13, 2023, the Company paid a distribution of $86.00 per share to each common stockholder of record as of December 29, 2022. The total distribution was $1,768 and $1,750 was reinvested into the Company through the purchase of 340 shares of common stock. On February 24, 2023, the Company renewed our Subscription Credit Facility through February 22, 2024. All other terms of the Subscription Credit Facility remain substantially the same. On February 28, 2023, the Company sold 4,775 shares of its common stock for an aggregate offering price of $25,000. KACALP, an affiliate of the Advisor, made an equity contribution of $250 associated with its 1% commitment for this February 28, 2023 share issuance. The Company has subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of common stock ($225,535 is undrawn). On March 7, 2023, the Board of Directors (the “Board”) of the Company declared a distribution of $115.00 per share to each common stockholder of record as of March 31, 2023. The distribution will be paid on April 14, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
A. Basis of Presentation | A. Basis of Presentation |
B. Consolidation | B. Consolidation |
C. Use of Estimates | C. Use of Estimates |
D. Cash and Cash Equivalents | D. Cash and Cash Equivalents |
E. Investment Valuation, Fair Value | E. Investment Valuation, Fair Value Fair Value Measurement and Disclosures In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. Pursuant to Rule 2a-5 and effective September 1, 2022, the Board of Directors designated the Advisor as the “valuation designee” to perform fair value determinations of the Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board. The valuation designee will perform fair valuation of the Company’s portfolio holdings in accordance with the Company’s Valuation Program, as approved by the Board. The Advisor’s internal valuation process did not materially change as a result of Rule 2a-5. Traded Investments (Level 1 or Level 2) Investments for which market quotations are readily available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes, loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices are stale or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the Company’s valuation process for investments that are privately issued or otherwise restricted as to resale. The Company may also invest, to a lesser extent, in equity securities purchased in conjunction with debt investments. While the Company anticipates these equity securities to be issued by privately held companies, the Company may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock Market, Inc. (“NASDAQ”) are valued, except as indicated below, at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices. Non-Traded Investments (Level 3) Investments that are privately issued or otherwise restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the Company’s Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the security on the valuation date. The Company expects that a significant majority of its investments will be Level 3 investments. Unless otherwise determined by the Advisor, the following valuation process is used for the Company’s Level 3 investments: ● Valuation Designee The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments ● Valuation Firm. ● Oversight . Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to the Company’s financial statements will express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements. |
F. Interest Income Recognition | F. Interest Income Recognition Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection. |
Debt Issuance Costs | G. Debt Issuance Costs |
G. Dividends to Common Stockholders | H. Dividends to Common Stockholders |
H. Organizational Costs | I. Organizational Costs organizational expenses include costs and expenses relating to the formation and organization of the Company. The Company has agreed to reimburse the Advisor for these costs which are expensed as incurred. |
I. Offering Costs | J. Offering Costs |
J. Income Taxes | K. Income Taxes As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution of earnings to stockholders, the Company will not be subject to U.S. federal income tax. The Company must pay distributions equal to 90% of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes. The Company will be subject to federal income tax on any undistributed portion of income. For purposes of the distribution test, the Company may elect to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year if such distributions are declared before the due date of its tax return, including any extensions. All RICs are subject to a non-deductible 4% excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii) undistributed amounts from previous years on which the Company paid no U.S. federal income tax. A distribution will be treated as paid during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year, payable to stockholders of record on a date during such months and paid by the Company no later than January of the following year. Any such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year the distributions are declared, rather than when the distributions are actually received. The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. |
K. LIBOR Transition | L. LIBOR Transition |
L. Commitments and Contingencies | M. Commitments and Contingencies |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Schedule of investment portfolio at amortized cost and fair value | December 31, 2022 December 31, 2021 Amortized Fair Amortized Fair Cost Value Cost Value First-lien senior secured debt investments $ 105,083 $ 107,312 $ 11,499 $ 11,761 Short-term investments - - 31,239 31,239 Total Investments $ 105,083 $ 107,312 $ 42,738 $ 43,000 |
Schedule of industry composition of long-term investments based on fair value | December 31, Trading companies & distributors 15.4 % Food products 12.6 % Health care providers & services 12.6 % IT services 9.0 % Professional services 7.6 % Commercial services & supplies 6.6 % Containers & packaging 5.2 % Aerospace & defense 4.5 % Biotechnology 3.8 % Wireless telecommunication services 3.4 % Machinery 2.8 % Software 2.8 % Textiles, apparel & luxury goods 2.6 % Building products 2.1 % Diversified telecommunication services 1.6 % Auto components 1.6 % Healthcare equipment & supplies 1.6 % Electronic equipment, instruments & components 1.4 % Leisure products 1.2 % Insurance 1.2 % Chemicals 0.2 % Asset management & custody banks 0.2 % Total 100.0 % December 31, Health care equipment & services 39.8 % Food & beverage 22.7 % Consumer durables & apparel 19.9 % Telecommunication services 8.0 % Capital goods 6.0 % Software & services 3.6 % Total 100.0 % |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of investments | Fair Value Hierarchy as of December 31, 2022 Investments: Level 1 Level 2 Level 3 Total First-lien senior secured debt investments $ - $ - $ 107,312 $ 107,312 Short-term investments - - - - Total Investments $ - $ - $ 107,312 $ 107,312 Fair Value Hierarchy as of December 31, 2021 Investments: Level 1 Level 2 Level 3 Total First-lien senior secured debt investments $ - $ - $ 11,761 $ 11,761 Short-term investments 31,239 - - 31,239 Total Investments $ 31,239 $ - $ 11,761 $ 43,000 |
Schedule of fair value of investments for which Level 3 inputs | For the year ended December 31, Fair value, beginning of period $ 11,761 Purchases of investments 95,709 Proceeds from sales of investments and principal repayments (2,343 ) Net change in unrealized gain (loss) 1,968 Net realized gain (loss) 1 Net accretion of discount on investments 216 Transfers into (out of) Level 3 - Fair value, end of period $ 107,312 For the year ended December 31, Fair value, beginning of period $ - Purchases of investments 11,504 Proceeds from principal payments and sales of investments (6 ) Net change in unrealized gain (loss) 262 Net accretion of discount on investments 1 Transfers into (out of) Level 3 - Fair value, end of period $ 11,761 |
Schedule of significant unobservable inputs of Level 3 investments | As of December 31, 2022 Valuation Unobservable Weighted Fair Value Technique Input Range Average First-lien senior secured debt investments $ 107,312 Discounted cash flow analysis Discount rate 8.7% - 15.0% 9.8 % As of December 31, 2021 Valuation Unobservable Weighted Fair Value Technique Input Range Average First-lien senior secured debt investments $ 11,761 Market Approach - Yield Analysis Credit Spreads 5.00%-6.50% 5.77 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | December 31, 2022 Aggregate Outstanding Principal Amount Available (1) Subscription Credit Facility $ 25,000 $ 750 $ 24,250 Total debt $ 25,000 $ 750 $ 24,250 (1) The amount available reflects any limitations related to the Subscription Credit Facility's borrowing base as of December 31, 2022. |
Share Transactions (Tables)
Share Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Transactions [Abstract] | |
Schedule of common stock shares issued and aggregate proceeds | For the year ended December 31, 2022 Offering Aggregate price per Common stock offering Common stock issue date share shares issued amount June 29, 2022 $ 5,011 1,996 $ 10,000 October 14, 2022 $ 5,068 4,933 $ 25,000 December 9, 2022 $ 5,205 4,803 $ 25,000 Total common stock issued 11,732 $ 60,000 For the year ended December 31, 2021 Offering Aggregate price per Common stock offering Common stock issue date share shares issued amount December 16, 2021 $ 5,000 600 $ 3,000 December 20, 2021 $ 5,000 8,000 40,000 Total common stock issued 8,600 $ 43,000 |
Schedule of distributions declared and payable by the company | Dividend Dividend declaration date Dividend record date Dividend payment date per share April 19, 2022 April 20, 2022 July 27, 2022 $ 6.80 July 19, 2022 July 20, 2022 July 27, 2022 $ 29.00 October 18, 2022 October 13, 2022 October 25, 2022 $ 72.00 December 16, 2022 December 29, 2022 January 13, 2023 $ 86.00 $ 193.80 |
Schedule of amounts received and shares of common stock issued to shareholder | Dividend record date Dividend payment date DRIP shares DRIP value April 20, 2022 July 27, 2022 12 $ 58 July 20, 2022 July 27, 2022 60 $ 304 October 13, 2022 October 25, 2022 150 $ 761 222 $ 1,123 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of summary of composition of the unfunded commitments | As of As of December 31, December 31, Alcami Corporation (Alcami) $ 890 $ - Allcat Claims Service, LLC 1,723 - Allentown, LLC 606 - American Equipment Holdings LLC 5,000 - American Soccer Company, Incorporated (SCORE) 243 - Atria Wealth Solutions, Inc. 2,784 - Basel U.S. Acquisition Co., Inc. (IAC) 399 - BCI Burke Holding Corp. 618 654 BLP Buyer, Inc. (Bishop Lifting Products) 159 - BR PJK Produce, LLC (Keany) 228 - Brightview, LLC 489 783 CGI Automated Manufacturing, LLC 160 - DISA Holdings Corp. (DISA) 1,189 - FCA, LLC (FCA Packaging) 288 - Guardian Dentistry Partners - 1,977 Gulf Pacific Holdings, LLC 1,120 - IF&P Foods, LLC (FreshEdge) 874 - Improving Acquisition LLC 354 - LSL Industries, LLC (LSL Healthcare) 1,305 - Light Wave Dental Management LLC 677 - MacNeill Pride Group 1,055 - SGA Dental Partners Holdings, LLC 207 1,552 Siegel Egg Co., LLC 192 334 Universal Marine Medical Supply International, LLC (Unimed) 588 - Total unfunded commitments $ 21,148 $ 5,300 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share of common stock | For the years ended December 31, December 31, Net increase (decrease) in net assets resulting from operations $ 4,807 $ (121 ) Weighted average shares of common stock outstanding - basic and diluted 11,046 6,600 Earnings (loss) per share of common stock - basic and diluted $ 435 $ (18 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings to additional paid in capital | For the years ended December 31, December 31, Increase (decrease) in distributable earnings $ 137 $ 176 Increase (decrease) in additional paid-in capital $ (137 ) $ (176 ) |
Schedule of net increase in net assets | For the years ended December 31, December 31, Net increase (decrease) in net assets resulting from operations $ 4,807 $ (121 ) Net change in unrealized losses (gains) from investments (1,968 ) (262 ) Non-deductible expenses, offering costs disallowed 137 6 Other book tax differences (14 ) 207 Taxable income before deductions for distributions $ 2,962 $ (170 ) |
Schedule of tax character of distributions paid to stockholders | For the years ended December 31, December 31, Ordinary income $ 2,901 $ - Capital gains - - Return of capital - - Total $ 2,901 $ - |
Schedule of accumulated earnings on a tax basis | For the years ended December 31, December 31, Undistributed net investment income (loss) $ 60 $ - Undistributed capital gains - - Capital loss carryforward - - Other accumulated gain (loss) - - Other temporary book / tax differences (192 ) (207 ) Net unrealized appreciation (depreciation) 2,229 262 Total $ 2,097 $ 55 |
Schedule of aggregate unrealized appreciation and depreciation on investments | For the years ended December 31, December 31, Tax cost $ 105,083 $ 42,738 Gross unrealized appreciation 2,289 262 Gross unrealized depreciation (60 ) - Net unrealized appreciation/(depreciation) on investments $ 2,229 $ 262 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Company, Financial Highlights [Abstract] | |
Schedule of financial highlights | For the years ended December 31, 2022(amounts in 2021 (amounts in Per Common Share Operating Performance (1) Net Asset Value, Beginning of Period (2) $ 4,986 $ 4,976 Results of Operations: Net Investment Income 257 (58 ) Net Realized and Unrealized Gain (Loss) on Investments (3) 104 68 Net Increase (Decrease) in Net Assets Resulting from Operations 361 10 Distributions to Common Stockholders Distributions from Net Investment Income (194 ) - Net Decrease in Net Assets Resulting from Distributions (194 ) - Net Asset Value, End of Period $ 5,153 $ 4,986 Shares Outstanding, End of Period 20,554 8,600 Ratio/Supplemental Data Net assets, end of period $ 105,908 $ 42,879 Weighted-average shares outstanding 11,046 6,600 Total Return (4) 7.3 % (0.3 )% Portfolio turnover 4.9 % 0.1 % Ratio of operating expenses to average net assets (5) 2.5 % N/M Ratio of net investment income (loss) to average net assets (5) 4.7 % N/M |
Organization (Details)
Organization (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Aggregate capital commitment | $ 353,535 |
Significant Accounting Polici_2
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Investments percentage | 25% |
Distributions percentage | 90% |
Non-deductible excise tax | All RICs are subject to a non-deductible 4% excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii) undistributed amounts from previous years on which the Company paid no U.S. federal income tax. |
Agreements and Related Party _2
Agreements and Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Management fee, description | The management fee will be calculated at an annual rate of 0.75% of the fair market value of the Company’s investments including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. | |
Management fees expenses | $ 337 | $ 2 |
Equity contributions | $ 600 |
Investments (Details)
Investments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Investments [Abstract] | |
Non-qualifying assets | $ 4,601 |
Investments (Details) - Schedul
Investments (Details) - Schedule of investment portfolio at amortized cost and fair value - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments (Details) - Schedule of investment portfolio at amortized cost and fair value [Line Items] | ||
Amortized Cost | $ 105,083 | $ 42,738 |
Fair Value | 107,312 | 43,000 |
First-lien senior secured debt investments [Member] | ||
Investments (Details) - Schedule of investment portfolio at amortized cost and fair value [Line Items] | ||
Amortized Cost | 105,083 | 11,499 |
Fair Value | 107,312 | 11,761 |
Short-term investments [Member] | ||
Investments (Details) - Schedule of investment portfolio at amortized cost and fair value [Line Items] | ||
Amortized Cost | 31,239 | |
Fair Value | $ 31,239 |
Investments (Details) - Sched_2
Investments (Details) - Schedule of industry composition of long-term investments based on fair value | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 100% | 100% |
Trading companies & distributors [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 15.40% | |
Food products [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 12.60% | |
Health care providers & services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 12.60% | |
IT services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 9% | |
Professional services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 7.60% | |
Commercial services & supplies [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 6.60% | |
Containers & packaging [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 5.20% | |
Aerospace & defense [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 4.50% | |
Biotechnology [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 3.80% | |
Wireless telecommunication services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 3.40% | |
Machinery [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 2.80% | |
Software [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 2.80% | |
Textiles, Apparel & Luxury Goods [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 2.60% | |
Building products [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 2.10% | |
Diversified telecommunication services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.60% | |
Auto components [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.60% | |
Healthcare equipment & supplies [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.60% | |
Electronic equipment, instruments & components [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.40% | |
Leisure products [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.20% | |
Insurance [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 1.20% | |
Chemicals [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 0.20% | |
Asset management & custody banks [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 0.20% | |
Health care equipment & services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 39.80% | |
Food & beverage [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 22.70% | |
Consumer durables & apparel [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 19.90% | |
Telecommunication services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 8% | |
Capital goods [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 6% | |
Software & services [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term investments fair value percentage | 3.60% |
Fair Value (Details) - Schedule
Fair Value (Details) - Schedule of fair value hierarchy of investments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | $ 107,312 | $ 43,000 |
First-lien senior secured debt investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 107,312 | 11,761 |
Short-term investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 31,239 | |
Fair Value Hierarchy, Level 1 | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 31,239 | |
Fair Value Hierarchy, Level 1 | First-lien senior secured debt investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | ||
Fair Value Hierarchy, Level 1 | Short-term investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 31,239 | |
Fair Value Hierarchy, Level 2 | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | ||
Fair Value Hierarchy, Level 2 | First-lien senior secured debt investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | ||
Fair Value Hierarchy, Level 2 | Short-term investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | ||
Fair Value Hierarchy, Level 3 | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 107,312 | 11,761 |
Fair Value Hierarchy, Level 3 | First-lien senior secured debt investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments | 107,312 | 11,761 |
Fair Value Hierarchy, Level 3 | Short-term investments [Member] | ||
Fair Value (Details) - Schedule of fair value hierarchy of investments [Line Items] | ||
Total Investments |
Fair Value (Details) - Schedu_2
Fair Value (Details) - Schedule of fair value of investments for which Level 3 inputs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Fair Value Of Investments For Which Level3 Inputs Abstract | ||
Fair value, beginning of period | $ 11,761 | |
Purchases of investments | 95,709 | $ 11,504 |
Proceeds from sales of investments and principal repayments | (2,343) | (6) |
Net change in unrealized gain (loss) | 1,968 | 262 |
Net realized gain (loss) | 1 | |
Net accretion of discount on investments | 216 | 1 |
Transfers into (out of) Level 3 | ||
Fair value, end of period | $ 107,312 | $ 11,761 |
Fair Value (Details) - Schedu_3
Fair Value (Details) - Schedule of significant unobservable inputs of Level 3 investments - First-lien senior secured debt investments [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value (in Dollars) | $ 107,312 | $ 11,761 |
Valuation Technique | Discounted cash flow analysis | Market Approach - Yield Analysis |
Unobservable Input | Discount rate | Credit Spreads |
Weighted Average | 9.80% | 5.77% |
Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 8.70% | 5% |
Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 15% | 6.50% |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | |
Feb. 25, 2022 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Maturity date | Feb. 25, 2022 | |
Total commitment (in Dollars) | $ 25,000 | |
Subscription credit facility borrowed (in Dollars) | $ 25,000 | |
Interest rate, percentage | 1.975% | |
Commitment fee, percentage | 0.25% | |
Weighted average interest rate | 5.21% | |
Subscription credit facility (in Dollars) | $ 750,000 | |
Weighted average rate | 6.35% |
Debt (Details) - Schedule of de
Debt (Details) - Schedule of debt obligations $ in Thousands | Dec. 31, 2022 USD ($) | |
Debt (Details) - Schedule of debt obligations [Line Items] | ||
Aggregate principal committed | $ 25,000 | |
Outstanding Principal | 750 | |
Amount available | 24,250 | [1] |
Subscription Credit Facility [Member] | ||
Debt (Details) - Schedule of debt obligations [Line Items] | ||
Aggregate principal committed | 25,000 | |
Outstanding Principal | 750 | |
Amount available | $ 24,250 | [1] |
[1] The amount available reflects any limitations related to the Subscription Credit Facility's borrowing base as of December 31, 2022. |
Share Transactions (Details)
Share Transactions (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Jan. 13, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Share Transactions (Details) [Line Items] | ||||
Aggregate capital commitment | $ 353,535 | |||
Undrawn commitments | $ 250,535 | |||
Share issued (in Shares) | 11,732 | 8,600 | ||
Subsequent Event [Member] | ||||
Share Transactions (Details) [Line Items] | ||||
Undrawn commitments | $ 225,535 | |||
Share issued (in Shares) | 340 | |||
DRIP value | $ 1,750 |
Share Transactions (Details) -
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Common stock shares issued | 11,732 | 8,600 |
Aggregate offering amount | $ 60,000 | $ 43,000 |
June 29, 2022 [Member] | ||
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Offering price per share | $ 5,011 | |
Common stock shares issued | 1,996 | |
Aggregate offering amount | $ 10,000 | |
October 14, 2022 [Member] | ||
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Offering price per share | $ 5,068 | |
Common stock shares issued | 4,933 | |
Aggregate offering amount | $ 25,000 | |
December 9, 2022 [Member] | ||
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Offering price per share | $ 5,205 | |
Common stock shares issued | 4,803 | |
Aggregate offering amount | $ 25,000 | |
December 16, 2021 [Member] | ||
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Offering price per share | $ 5,000 | |
Common stock shares issued | 600 | |
Aggregate offering amount | $ 3,000 | |
December 20, 2021 [Member] | ||
Share Transactions (Details) - Schedule of common stock shares issued and aggregate proceeds [Line Items] | ||
Offering price per share | $ 5,000 | |
Common stock shares issued | 8,000 | |
Aggregate offering amount | $ 40,000 |
Share Transactions (Details) _2
Share Transactions (Details) - Schedule of distributions declared and payable by the company | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share Transactions (Details) - Schedule of distributions declared and payable by the company [Line Items] | |
Dividend per share | $ 193.8 |
April 19, 2022 [Member] | |
Share Transactions (Details) - Schedule of distributions declared and payable by the company [Line Items] | |
Dividend record date | Apr. 20, 2022 |
Dividend payment date | Jul. 27, 2022 |
Dividend per share | $ 6.8 |
July 19, 2022 [Member] | |
Share Transactions (Details) - Schedule of distributions declared and payable by the company [Line Items] | |
Dividend record date | Jul. 20, 2022 |
Dividend payment date | Jul. 27, 2022 |
Dividend per share | $ 29 |
October 18, 2022 [Member] | |
Share Transactions (Details) - Schedule of distributions declared and payable by the company [Line Items] | |
Dividend record date | Oct. 13, 2022 |
Dividend payment date | Oct. 25, 2022 |
Dividend per share | $ 72 |
December 16, 2022 [Member] | |
Share Transactions (Details) - Schedule of distributions declared and payable by the company [Line Items] | |
Dividend record date | Dec. 29, 2022 |
Dividend payment date | Jan. 13, 2023 |
Dividend per share | $ 86 |
Share Transactions (Details) _3
Share Transactions (Details) - Schedule of amounts received and shares of common stock issued to shareholder $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Share Transactions (Details) - Schedule of amounts received and shares of common stock issued to shareholder [Line Items] | |
DRIP shares issued | shares | 222 |
DRIP value | $ | $ 1,123 |
April 20, 2022 [Member] | |
Share Transactions (Details) - Schedule of amounts received and shares of common stock issued to shareholder [Line Items] | |
Dividend payment date | Jul. 27, 2022 |
DRIP shares issued | shares | 12 |
DRIP value | $ | $ 58 |
July 20, 2022 [Member] | |
Share Transactions (Details) - Schedule of amounts received and shares of common stock issued to shareholder [Line Items] | |
Dividend payment date | Jul. 27, 2022 |
DRIP shares issued | shares | 60 |
DRIP value | $ | $ 304 |
October 13, 2022 [Member] | |
Share Transactions (Details) - Schedule of amounts received and shares of common stock issued to shareholder [Line Items] | |
Dividend payment date | Oct. 25, 2022 |
DRIP shares issued | shares | 150 |
DRIP value | $ | $ 761 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments | $ 21,148 | $ 5,300 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of summary of composition of the unfunded commitments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Total unfunded commitments | $ 21,148 | $ 5,300 |
Alcami Corporation (Alcami) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 890 | |
Allcat Claims Service, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,723 | |
Allentown, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 606 | |
American Equipment Holdings LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 5,000 | |
American Soccer Company, Incorporated (SCORE) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 243 | |
Atria Wealth Solutions, Inc. [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 2,784 | |
Basel U.S. Acquisition Co., Inc. (IAC) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 399 | |
BCI Burke Holding Corp. [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 618 | 654 |
BLP Buyer, Inc. (Bishop Lifting Products) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 159 | |
BR PJK Produce, LLC (Keany) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 228 | |
Brightview, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 489 | 783 |
CGI Automated Manufacturing, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 160 | |
DISA Holdings Corp. (DISA) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,189 | |
FCA, LLC (FCA Packaging) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 288 | |
Guardian Dentistry Partners [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,977 | |
Gulf Pacific Holdings, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,120 | |
IF&P Foods, LLC (FreshEdge) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 874 | |
Improving Acquisition LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 354 | |
LSL Industries, LLC (LSL Healthcare) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,305 | |
Light Wave Dental Management LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 677 | |
MacNeill Pride Group [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 1,055 | |
SGA Dental Partners Holdings, LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 207 | 1,552 |
Siegel Egg Co., LLC [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | 192 | $ 334 |
Universal Marine Medical Supply International, LLC (Unimed) [Member] | ||
Other Commitments [Line Items] | ||
Total unfunded commitments | $ 588 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share of common stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Share Of Common Stock Abstract | ||
Net increase (decrease) in net assets resulting from operations | $ 4,807 | $ (121) |
Weighted average shares of common stock outstanding - basic and diluted | 11,046 | 6,600 |
Earnings (loss) per share of common stock - basic and diluted | $ 435 | $ (18) |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share of common stock (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Share Of Common Stock Abstract | ||
Weighted average shares of common stock outstanding - diluted | 11,046 | 6,600 |
Earnings (loss) per share of common stock - diluted | $ 435 | $ (18) |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Excise tax | 4% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of earnings to additional paid in capital - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Earnings To Additional Paid In Capital Abstract | ||
Increase (decrease) in distributable earnings | $ 137 | $ 176 |
Increase (decrease) in additional paid-in capital | $ (137) | $ (176) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of net increase in net assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Net Increase In Net Assets Abstract | ||
Net increase (decrease) in net assets resulting from operations | $ 4,807 | $ (121) |
Net change in unrealized losses (gains) from investments | (1,968) | (262) |
Non-deductible expenses, offering costs disallowed | 137 | 6 |
Other book tax differences | (14) | 207 |
Taxable income before deductions for distributions | $ 2,962 | $ (170) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of tax character of distributions paid to stockholders - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Tax Character Of Distributions Paid To Stockholders Abstract | ||
Ordinary income | $ 2,901 | |
Capital gains | ||
Return of capital | ||
Total | $ 2,901 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of accumulated earnings on a tax basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Accumulated Earnings On ATax Basis Abstract | ||
Undistributed net investment income (loss) | $ 60 | |
Undistributed capital gains | ||
Capital loss carryforward | ||
Other accumulated gain (loss) | ||
Other temporary book / tax differences | (192) | (207) |
Net unrealized appreciation (depreciation) | 2,229 | 262 |
Total | $ 2,097 | $ 55 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of aggregate unrealized appreciation and depreciation on investments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Aggregate Unrealized Appreciation And Depreciation On Investments Abstract | ||
Tax cost | $ 105,083 | $ 42,738 |
Gross unrealized appreciation | 2,289 | 262 |
Gross unrealized depreciation | (60) | |
Net unrealized appreciation/(depreciation) on investments | $ 2,229 | $ 262 |
Financial Highlights (Details)
Financial Highlights (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Company, Financial Highlights [Abstract] | |
Initial offering description | For the year ended December 31, 2021, the initial offering price of $5,000 per share less $24 of organizational costs. |
Financial Highlights (Details)
Financial Highlights (Details) - Schedule of financial highlights - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Per Common Share Operating Performance (1) | |||
Net Asset Value, Beginning of Period | [1],[2] | $ 4,986 | $ 4,976 |
Results of Operations: | |||
Net Investment Income | [2] | 257 | (58) |
Net Realized and Unrealized Gain (Loss) on Investments | [2],[3] | 104 | 68 |
Net Increase (Decrease) in Net Assets Resulting from Operations | [2] | 361 | 10 |
Distributions to Common Stockholders | |||
Distributions from Net Investment Income | [2] | (194) | |
Net Decrease in Net Assets Resulting from Distributions | [2] | (194) | |
Net Asset Value, End of Period | [2] | $ 5,153 | $ 4,986 |
Shares Outstanding, End of Period (in Shares) | [2] | 20,554 | 8,600 |
Ratio/Supplemental Data | |||
Net assets, end of period (in Dollars) | [2] | $ 105,908 | $ 42,879 |
Weighted-average shares outstanding (in Shares) | [2] | 11,046 | 6,600 |
Total Return | [2],[3],[4] | 7.30% | (0.30%) |
Portfolio turnover | [2] | 4.90% | 0.10% |
Ratio of operating expenses to average net assets | [2],[5] | 2.50% | |
Ratio of net investment income (loss) to average net assets | [2],[5] | 4.70% | |
[1]For the year ended December 31, 2021, the initial offering price of $5,000 per share less $24 of organizational costs.[2]The per common share data was derived by using weighted average shares outstanding.[3]Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to share transactions during the period.[4]Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company’s dividend reinvestment plan. Total return is not annualized.[5]For the year ended December 31, 2021, not meaningful (N/M). The calculations of the ratio of operating expenses to average net assets and ratio of net investment income (loss) to average net assets are not meaningful, as the Company commenced investment operations on December 16, 2021 and therefore had 16 days of activity during 2021. The expenses of the Company consist primarily of non recurring organizational expense and annual tax preparation and audit expense. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2023 | Jan. 13, 2023 | Mar. 07, 2023 |
Subsequent Events (Details) [Line Items] | |||
Common stockholder per share (in Dollars per share) | $ 86 | ||
Total distribution | $ 1,768 | ||
Reinvested amount | $ 1,750 | ||
Purchase shares (in Shares) | 340 | ||
Sale of share (in Shares) | 4,775 | ||
Aggregate offering price | $ 25,000 | ||
Equity contribution amount | $ 250 | ||
Commitment percentage | 1% | ||
Aggregate capital commitment | $ 353,535 | ||
Undrawn amount | $ 225,535 | ||
Dividend distribution declared (in Dollars per share) | $ 115 |