Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Securities Act File Number | 000-56378 | ||
Entity Registrant Name | Stellus Private Credit BDC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 87-6878660 | ||
Entity Address, Address Line One | 4400 Post Oak Parkway | ||
Entity Address, Address Line Two | Suite 2200 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77027 | ||
City Area Code | 713 | ||
Local Phone Number | 292-5400 | ||
Title of 12(g) Security | Common Shares of Beneficial Interest, par value $0.01 per share | ||
No Trading Symbol Flag | true | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 5,483,433 | ||
Entity Central Index Key | 0001901037 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Dallas, Texas | ||
Auditor Firm ID | 248 |
CONSOLIDATED STATEMENTS OF ASSE
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Non-controlled, non-affiliated investments, at fair value (amortized cost of $158,022,677) | $ 157,504,755 | |
Cash and cash equivalents | 15,469,823 | |
Interest receivable | 1,030,274 | |
Expense reimbursement receivable from the Advisor | 165,638 | |
Deferred offering costs | 54,394 | $ 139,570 |
Related party receivable | 9,620 | |
Prepaid expenses | 133,004 | 93,648 |
Receivable for sales and repayments of investments | 26,996 | |
Total Assets | 174,394,504 | 233,218 |
LIABILITIES | ||
Credit Facilities payable | 79,448,134 | |
Short-term loan payable | 11,250,000 | |
Dividends payable | 1,809,533 | |
Due to affiliate | 460,085 | |
Unearned revenue | 539,634 | |
Income incentive fee payable | 328,196 | |
Interest payable | 563,241 | |
Administrative services payable | 66,064 | |
Trustees' fees payable | 42,000 | |
Income tax payable | 7,471 | |
Other accrued expenses and liabilities | 119,274 | 263,978 |
Total Liabilities | 94,131,547 | 766,063 |
Commitments and contingencies (Note 7) | ||
Net Assets | 80,262,957 | (532,845) |
NET ASSETS | ||
Common shares of beneficial interest, par value $0.01 per share (unlimited shares authorized; 5,483,433 issued and outstanding as of December 31, 2022) | 54,834 | |
Paid-in capital | 80,950,845 | |
Total distributable loss | (742,722) | (532,845) |
Net Assets | 80,262,957 | (532,845) |
Total Liabilities and Net Assets | $ 174,394,504 | $ 233,218 |
Net Asset Value Per Share | $ 14.64 |
CONSOLIDATED STATEMENTS OF AS_2
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) | Dec. 31, 2022 USD ($) $ / shares shares |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |
Amortized Cost | $ | $ 158,022,677 |
Common stock, par value | $ / shares | $ 0.01 |
Common stock, shares issued | 5,483,433 |
Common stock, outstanding | 5,483,433 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
INVESTMENT INCOME | ||
Interest income | $ 7,804,783 | |
Other income | 152,173 | |
Total Investment Income | 7,956,956 | |
OPERATING EXPENSES | ||
Management fees | 1,335,054 | |
Income incentive fees | 686,398 | |
Professional fees | $ 70,800 | 447,045 |
Organization costs | 416,553 | 90,184 |
Amortization of deferred offering costs | 240,152 | |
Administrative services expenses | 226,489 | |
Trustees' fees | 42,000 | 158,000 |
Insurance expense | 82,045 | |
Valuation fees | 5,519 | |
Interest expense and other fees | 2,312,701 | |
Income tax expense | 7,471 | |
Other general and administrative expenses | 3,492 | 120,343 |
Total Operating Expenses | 532,845 | 5,711,401 |
Expenses reimbursed/fees waived by Investment Advisor (Note 2) | (1,952,196) | |
Net Operating Expenses | 532,845 | 3,759,205 |
Net Investment Income | (532,845) | 4,197,751 |
Net realized gain on foreign currency translation | 1,950 | |
Net change in unrealized depreciation on non-controlled non-affiliated investments | (538,883) | |
Net change in unrealized appreciation on foreign currency translations | 20,961 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ (532,845) | $ 3,681,779 |
Net Investment Income Per Share - basic | $ 1.08 | |
Net Increase in Net Assets Resulting from Operations Per Share - basic | 0.95 | |
Net Increase in Net Assets Resulting from Operations Per Share - diluted | $ 1.01 | |
Weighted Average Shares of Common Shares of Beneficial Interest Outstanding - basic | 3,869,643 | |
Weighted Average Shares of Common Shares of Beneficial Interest Outstanding - diluted | 3,869,643 | |
Distributions Per Share - basic and diluted | $ 1.11 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | ||
Beginning balance | $ (532,845) | |
Net investment income (loss) | 4,197,751 | $ (532,845) |
Net realized gain on foreign currency translation | 1,950 | |
Net change in unrealized depreciation on non-controlled, non-affiliated investments | (538,883) | |
Net change in unrealized appreciation on foreign currency translations | 20,961 | |
Distributions from net investment income | (4,279,870) | |
Issuance of common shares of beneficial interest | $ 81,393,893 | |
Issuance of common shares of beneficial interest (in shares) | 5,483,433 | |
Ending balance | $ 80,262,957 | (532,845) |
Ending balance (in shares) | 5,483,433 | |
Common Shares of Beneficial Interest | ||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | ||
Issuance of common shares of beneficial interest | $ 54,834 | |
Issuance of common shares of beneficial interest (in shares) | 5,483,433 | |
Ending balance | $ 54,834 | |
Ending balance (in shares) | 5,483,433 | |
Paid-in capital | ||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | ||
Return of capital and other tax related adjustments | $ (388,214) | |
Issuance of common shares of beneficial interest | 81,339,059 | |
Ending balance | 80,950,845 | |
Total distributable loss | ||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | ||
Beginning balance | (532,845) | |
Net investment income (loss) | 4,197,751 | (532,845) |
Net realized gain on foreign currency translation | 1,950 | |
Net change in unrealized depreciation on non-controlled, non-affiliated investments | (538,883) | |
Net change in unrealized appreciation on foreign currency translations | 20,961 | |
Return of capital and other tax related adjustments | 388,214 | |
Distributions from net investment income | (4,279,870) | |
Ending balance | $ (742,722) | $ (532,845) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from Operating Activities | ||
Net increase (decrease) in net assets resulting from operations | $ 3,681,779 | $ (532,845) |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | ||
Purchases of investments | (168,326,016) | |
Proceeds from sales and repayments of investments | 10,474,408 | |
Net change in unrealized depreciation on investments | 538,883 | |
Net change in unrealized appreciation foreign currency translations | (20,961) | |
Amortization of premium and accretion of discount, net | (198,065) | |
Amortization of loan structure fees | 478,626 | |
Amortization of deferred offering costs | 240,152 | |
Changes in other assets and liabilities | ||
Increase in interest receivable | (1,030,274) | |
Increase in deferred offering costs | (139,570) | |
Increase in related party receivable | (9,620) | |
Increase in expense reimbursements receivable from the Advisor | (165,638) | |
Increase in prepaid expenses | (39,356) | (93,648) |
(Decrease) increase in due to affiliate | (460,085) | 460,085 |
Increase in professional fees payable | 263,978 | |
(Decrease) increase in trustees' fees payable | (42,000) | $ 42,000 |
Increase in administrative services payable | 66,064 | |
Increase in interest payable | 563,241 | |
Increase in income incentive fees payable | 328,196 | |
Increase in unearned revenue | 539,634 | |
Increase in income tax payable | 7,471 | |
Decrease in other accrued expenses and liabilities | (144,704) | |
Net Cash Used in Operating Activities | (153,518,265) | |
Net Cash Provided from Financing Activities | ||
Proceeds from issuance of common shares of beneficial interest | 81,393,893 | |
Offering costs paid for common shares of beneficial interest issued | (154,976) | |
Stockholder distributions paid | (2,470,337) | |
Borrowings under Credit Facilities | 124,762,500 | |
Repayments of Credit Facilities | (44,147,500) | |
Financing costs paid on Credit Facilities | (1,645,492) | |
Short-term loan borrowings | 11,250,000 | |
Net Cash Provided by Financing Activities | 168,988,088 | |
Net Increase in Cash and Cash Equivalents | 15,469,823 | |
Cash and Cash Equivalents Balance at End of Period | 15,469,823 | |
Supplemental and Non-Cash Activities | ||
Cash paid for interest expense | 1,270,834 | |
Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan | 43,893 | |
Increase in dividends payable | $ 1,809,533 |
CONSOLIDATED SCHEDULE OF INVEST
CONSOLIDATED SCHEDULE OF INVESTMENTS | 12 Months Ended | ||
Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 EUR (€) shares | Dec. 31, 2021 USD ($) | |
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 158,022,677 | ||
Total Investments (Fair Value) | $ 157,504,755 | ||
Investment Owned, % of Net Assets | 100% | 100% | |
LIABILITIES IN EXCESS OF OTHER ASSETS (Fair Value) | $ (77,241,798) | ||
LIABILITIES IN EXCESS OF OTHER ASSETS (% of Net Assets) | (96.24%) | (96.24%) | |
NET ASSETS (Fair Value) | $ 80,262,957 | $ (532,845) | |
Net Investment, % of Net Assets | 196.24% | 196.24% | |
Qualifying assets as a percent of total assets | 94.30% | ||
Unfunded debt commitments | $ 36,293,611 | ||
Service Business Industry [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 35,188,973 | ||
Total Investments (Fair Value) | $ 35,046,444 | ||
Investment Owned, % of Net Assets | 22.25% | 22.25% | |
Construction Sector [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 7,348,309 | ||
Total Investments (Fair Value) | $ 7,195,856 | ||
Investment Owned, % of Net Assets | 4.57% | 4.57% | |
Consumer Goods, Non-Durable Industry [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 18,553,695 | ||
Total Investments (Fair Value) | $ 18,514,476 | ||
Investment Owned, % of Net Assets | 11.75% | 11.75% | |
Chemicals, Plastics, And Rubber Industry [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 7,490,771 | ||
Total Investments (Fair Value) | $ 7,351,701 | ||
Investment Owned, % of Net Assets | 4.67% | 4.67% | |
Media, Diversified And Production Industry [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 9,977,695 | ||
Total Investments (Fair Value) | $ 9,971,437 | ||
Investment Owned, % of Net Assets | 6.33% | 6.33% | |
Capital Equipment Industry [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 20,713,352 | ||
Total Investments (Fair Value) | $ 20,768,686 | ||
Investment Owned, % of Net Assets | 13.19% | 13.19% | |
Consumer Services Sector [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 3,088,022 | ||
Total Investments (Fair Value) | $ 3,056,614 | ||
Investment Owned, % of Net Assets | 1.94% | 1.94% | |
AIP ATCO Buyer LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | AIP ATCO Buyer LLC [Member] | ||
Investment Maturity Date | May 17, 2028 | May 17, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Automotive Sector [Member] | Automotive Sector [Member] | |
Amortized Cost | $ 9,492,362 | ||
Total Investments (Fair Value) | $ 9,607,593 | ||
Investment Owned, % of Net Assets | 11.97% | 11.97% | |
Revolver, Unfunded Commitment | $ 810,347 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Archer Systems LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Archer Systems LLC [Member] | ||
Investment Maturity Date | Aug. 11, 2027 | Aug. 11, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 10,042,539 | ||
Total Investments (Fair Value) | $ 10,109,400 | ||
Investment Owned, % of Net Assets | 12.60% | 12.60% | |
Revolver, Unfunded Commitment | $ 1,025,607 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Axis Portable Air LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Axis Portable Air LLC [Member] | ||
Investment Maturity Date | Mar. 22, 2028 | Mar. 22, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 5,161,586 | ||
Total Investments (Fair Value) | $ 5,259,750 | ||
Investment Owned, % of Net Assets | 6.55% | 6.55% | |
Revolver, Unfunded Commitment | $ 1,344,512 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 1,920,732 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Baker Manufacturing Company, LLC | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Baker Manufacturing Company, LLC | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 6,384,015 | ||
Total Investments (Fair Value) | $ 6,339,226 | ||
Investment Owned, % of Net Assets | 7.90% | 7.90% | |
BDS Solutions Intermediateco LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BDS Solutions Intermediateco LLC [Member] | ||
Investment Maturity Date | Feb. 07, 2027 | Feb. 07, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Retail | Retail | |
Amortized Cost | $ 5,327,376 | ||
Total Investments (Fair Value) | $ 5,291,147 | ||
Investment Owned, % of Net Assets | 6.59% | 6.59% | |
Revolver, Unfunded Commitment | $ 550,893 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
BLP Buyer Inc [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 9,167,751 | ||
Total Investments (Fair Value) | $ 9,169,710 | ||
Investment Owned, % of Net Assets | 11.42% | 11.42% | |
Revolver, Unfunded Commitment | $ 241,966 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
COPILOT Provider Support Services, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | COPILOT Provider Support Services, LLC [Member] | ||
Investment Maturity Date | Nov. 22, 2027 | Nov. 22, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Healthcare Sector [Member] | Healthcare Sector [Member] | |
Amortized Cost | $ 9,866,275 | ||
Total Investments (Fair Value) | $ 9,866,275 | ||
Investment Owned, % of Net Assets | 12.29% | 12.29% | |
Revolver, Unfunded Commitment | $ 921,585 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Curion Holdings, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Curion Holdings, LLC [Member] | ||
Investment Maturity Date | Jul. 29, 2027 | Jul. 29, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 4,713,282 | ||
Total Investments (Fair Value) | $ 4,599,140 | ||
Investment Owned, % of Net Assets | 5.72% | 5.72% | |
Revolver, Unfunded Commitment | $ 382,766 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 3,879,736 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Exigo LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Exigo LLC [Member] | ||
Investment Maturity Date | Mar. 16, 2027 | Mar. 16, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:SoftwareIndustryMember | spcbdc:SoftwareIndustryMember | |
Amortized Cost | $ 4,165,162 | ||
Total Investments (Fair Value) | $ 4,140,506 | ||
Investment Owned, % of Net Assets | 5.16% | 5.16% | |
Revolver, Unfunded Commitment | $ 190,568 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 1,028,732 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Florachem Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Florachem Corporation [Member] | ||
Investment Maturity Date | Apr. 29, 2028 | Apr. 29, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Amortized Cost | $ 1,396,705 | ||
Total Investments (Fair Value) | $ 1,395,853 | ||
Investment Owned, % of Net Assets | 1.74% | 1.74% | |
Revolver, Unfunded Commitment | $ 1,871,955 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 986,571 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Heartland Business Systems LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Heartland Business Systems LLC [Member] | ||
Investment Maturity Date | Aug. 26, 2027 | Aug. 26, 2027 | |
Amortized Cost | $ 4,940,698 | ||
Total Investments (Fair Value) | $ 5,031,797 | ||
Investment Owned, % of Net Assets | 6.26% | 6.26% | |
Delayed Draw Term Loan, Unfunded Commitment | $ 4,974,229 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Heat Makes Sense Shared Services, LLC | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heat Makes Sense Shared Services, LLC | ||
Investment Maturity Date | Jul. 01, 2028 | Jul. 01, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 8,013,831 | ||
Total Investments (Fair Value) | $ 8,096,124 | ||
Investment Owned, % of Net Assets | 10.08% | 10.08% | |
Revolver, Unfunded Commitment | $ 1,181,639 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
HV Watterson Holdings LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | HV Watterson Holdings LLC [Member] | ||
Investment Maturity Date | Dec. 17, 2026 | Dec. 17, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 8,486,351 | ||
Total Investments (Fair Value) | $ 8,300,004 | ||
Investment Owned, % of Net Assets | 10.34% | 10.34% | |
Revolver, Unfunded Commitment | $ 1,042,869 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 1,567,506 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 1% | ||
Inoapps Bidco LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Inoapps Bidco LLC [Member] | ||
Investment Maturity Date | Feb. 15, 2027 | Feb. 15, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:HighTechIndustriesMember | spcbdc:HighTechIndustriesMember | |
Amortized Cost | $ 8,455,439 | ||
Total Investments (Fair Value) | $ 8,399,480 | ||
Investment Owned, % of Net Assets | 10.47% | 10.47% | |
Revolver, Unfunded Commitment | $ 948,767 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | € | € 474,383 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
International Designs Group LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | International Designs Group LLC [Member] | ||
Investment, Industry Sector [Extensible Enumeration] | Construction Sector [Member] | Construction Sector [Member] | |
Amortized Cost | $ 455,341 | ||
Total Investments (Fair Value) | $ 444,895 | ||
Investment Owned, % of Net Assets | 0.55% | 0.55% | |
Lightning Intermediate II LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Lightning Intermediate II LLC [Member] | ||
Investment Maturity Date | Jun. 06, 2027 | Jun. 06, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 6,146,332 | ||
Total Investments (Fair Value) | $ 6,029,266 | ||
Investment Owned, % of Net Assets | 7.52% | 7.52% | |
Revolver, Unfunded Commitment | € | € 746,891 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
MacKenzie-Childs Acquisition Inc. [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | MacKenzie-Childs Acquisition Inc. [Member] | ||
Investment Maturity Date | Sep. 02, 2027 | Sep. 02, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | us-gaap-supplement:ConsumerSectorMember | us-gaap-supplement:ConsumerSectorMember | |
Amortized Cost | $ 10,888,252 | ||
Total Investments (Fair Value) | $ 10,834,999 | ||
Investment Owned, % of Net Assets | 13.50% | 13.50% | |
Revolver, Unfunded Commitment | $ 204,863 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Madison Logic Holdings, Inc. [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Madison Logic Holdings, Inc. [Member] | ||
Investment Maturity Date | Dec. 30, 2027 | Dec. 30, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:MediaBroadcastingAndSubscriptionMember | spcbdc:MediaBroadcastingAndSubscriptionMember | |
Amortized Cost | $ 4,614,114 | ||
Total Investments (Fair Value) | $ 4,614,114 | ||
Investment Owned, % of Net Assets | 5.75% | 5.75% | |
Revolver, Unfunded Commitment | $ 388,726 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Microbe Formulas LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Microbe Formulas LLC [Member] | ||
Investment Maturity Date | Apr. 03, 2028 | Apr. 03, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 4,393,532 | ||
Total Investments (Fair Value) | $ 4,389,086 | ||
Investment Owned, % of Net Assets | 5.47% | 5.47% | |
Revolver, Unfunded Commitment | $ 934,990 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Monitorus Holding LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment Maturity Date | May 24, 2027 | May 24, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 9,977,695 | ||
Total Investments (Fair Value) | $ 9,971,437 | ||
Investment Owned, % of Net Assets | 12.44% | 12.44% | |
Revolver, Unfunded Commitment | € | € 1,251,514 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Onpoint Industrial Services, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Onpoint Industrial Services, LLC [Member] | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 7,006,103 | ||
Total Investments (Fair Value) | $ 7,006,103 | ||
Investment Owned, % of Net Assets | 8.73% | 8.73% | |
Pearl Media Holdings, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Pearl Media Holdings, LLC [Member] | ||
Investment Maturity Date | Aug. 31, 2027 | Aug. 31, 2027 | |
Amortized Cost | $ 2,852,880 | ||
Total Investments (Fair Value) | $ 2,845,427 | ||
Investment Owned, % of Net Assets | 3.54% | 3.54% | |
Revolver, Unfunded Commitment | $ 464,515 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 3,594,043 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 0.50% | ||
Peltram Plumbing Holdings LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Peltram Plumbing Holdings LLC [Member] | ||
Investment Maturity Date | Dec. 30, 2026 | Dec. 30, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | Construction Sector [Member] | Construction Sector [Member] | |
Amortized Cost | $ 6,892,968 | ||
Total Investments (Fair Value) | $ 6,750,961 | ||
Investment Owned, % of Net Assets | 8.41% | 8.41% | |
Revolver, Unfunded Commitment | $ 883,310 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Service Minds Company LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Service Minds Company LLC [Member] | ||
Investment Maturity Date | Feb. 07, 2028 | Feb. 07, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Consumer Services Sector [Member] | Consumer Services Sector [Member] | |
Amortized Cost | $ 3,088,022 | ||
Total Investments (Fair Value) | $ 3,056,614 | ||
Investment Owned, % of Net Assets | 3.82% | 3.82% | |
Revolver, Unfunded Commitment | $ 452,611 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Delayed Draw Term Loan, Unfunded Commitment | $ 1,121,632 | ||
Delayed Draw Term Loan, Unused Commitment Fee | 1% | ||
Tilley Distribution Inc [Member] | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Tilley Distribution Inc [Member] | ||
Investment Maturity Date | Dec. 31, 2026 | Dec. 31, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Amortized Cost | $ 6,094,066 | ||
Total Investments (Fair Value) | $ 5,955,848 | ||
Investment Owned, % of Net Assets | 7.42% | 7.42% | |
Revolver, Unfunded Commitment | $ 814,993 | ||
Revolver, Unused Commitment Fee | 0.50% | ||
Investment, Unaffiliated Issuer [Member] | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | $ 158,022,677 | ||
Total Investments (Fair Value) | $ 157,504,755 | ||
Investment Owned, % of Net Assets | 196.24% | 196.24% | |
Investment, Identifier [Axis]: AIPATCO Buyer LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | AIP ATCO Buyer LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.93% | 10.93% | |
Investment, Investment Date | May 17, 2022 | ||
Investment Maturity Date | May 17, 2028 | May 17, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Automotive Sector [Member] | Automotive Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 810,347 | ||
Amortized Cost | 810,347 | ||
Total Investments (Fair Value) | $ 806,295 | ||
Investment Owned, % of Net Assets | 1% | 1% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: AIPATCO Buyer LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | AIP ATCO Buyer LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.31% | 11.31% | |
Investment, Investment Date | May 17, 2022 | ||
Investment Maturity Date | May 17, 2028 | May 17, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Automotive Sector [Member] | Automotive Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 8,845,526 | ||
Amortized Cost | 8,682,015 | ||
Total Investments (Fair Value) | $ 8,801,298 | ||
Investment Owned, % of Net Assets | 10.97% | 10.97% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Archer Systems, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Archer Systems LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.92% | 10.92% | |
Investment, Investment Date | Aug. 11, 2022 | ||
Investment Maturity Date | Aug. 11, 2027 | Aug. 11, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 9,727,427 | ||
Amortized Cost | 9,545,572 | ||
Total Investments (Fair Value) | $ 9,581,515 | ||
Investment Owned, % of Net Assets | 11.94% | 11.94% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Axis Portable Air LLC Axis Air Parent LLC Preferred Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Axis Portable Air LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Mar. 22, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 152,661 | ||
Total Investments (Fair Value) | $ 236,215 | ||
Investment Owned, % of Net Assets | 0.29% | 0.29% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,527 | 1,527 | |
Investment, Identifier [Axis]: Axis Portable Air LLC Delayed Draw Term Loan One | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Axis Portable Air LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 2% | 2% | |
Investment, Interest Rate, Paid in Cash | 10.48% | 10.48% | |
Investment, Investment Date | Nov. 03, 2022 | ||
Investment Maturity Date | Mar. 22, 2028 | Mar. 22, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 2,195,122 | ||
Amortized Cost | 2,195,122 | ||
Total Investments (Fair Value) | $ 2,184,146 | ||
Investment Owned, % of Net Assets | 2.72% | 2.72% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Axis Portable Air LLCT erm Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Axis Portable Air LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.48% | 10.48% | |
Investment, Investment Date | Mar. 22, 2022 | ||
Investment Maturity Date | Mar. 22, 2028 | Mar. 22, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,509,146 | ||
Amortized Cost | 1,482,068 | ||
Total Investments (Fair Value) | $ 1,501,600 | ||
Investment Owned, % of Net Assets | 1.87% | 1.87% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Axis Portable Air, LLC Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Axis Portable Air LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.48% | 10.48% | |
Investment, Investment Date | Mar. 22, 2022 | ||
Investment Maturity Date | Mar. 22, 2028 | Mar. 22, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,344,512 | ||
Amortized Cost | 1,331,735 | ||
Total Investments (Fair Value) | $ 1,337,789 | ||
Investment Owned, % of Net Assets | 1.67% | 1.67% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BDS Solutions Intermediateco LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BDS Solutions Intermediateco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.55% | 10.55% | |
Investment, Investment Date | Feb. 24, 2022 | ||
Investment Maturity Date | Feb. 07, 2027 | Feb. 07, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Retail | Retail | |
Investment Owned, Balance, Principal Amount | $ 236,828 | ||
Amortized Cost | 236,828 | ||
Total Investments (Fair Value) | $ 233,276 | ||
Investment Owned, % of Net Assets | 0.29% | 0.29% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BDS Solutions Intermediateco LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BDS Solutions Intermediateco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.71% | 10.71% | |
Investment, Investment Date | Jun. 24, 2022 | ||
Investment Maturity Date | Feb. 07, 2027 | Feb. 07, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Retail | Retail | |
Investment Owned, Balance, Principal Amount | $ 455,829 | ||
Amortized Cost | 451,673 | ||
Total Investments (Fair Value) | $ 448,992 | ||
Investment Owned, % of Net Assets | 0.56% | 0.56% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BDS Solutions Intermediateco LLC Term Loan Service Industry | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BDS Solutions Intermediateco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.71% | 10.71% | |
Investment, Investment Date | Feb. 24, 2022 | ||
Investment Maturity Date | Feb. 07, 2027 | Feb. 07, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Retail | Retail | |
Investment Owned, Balance, Principal Amount | $ 4,679,065 | ||
Amortized Cost | 4,638,875 | ||
Total Investments (Fair Value) | $ 4,608,879 | ||
Investment Owned, % of Net Assets | 5.74% | 5.74% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BLP Buyer Inc BL Products Parent LP Class A Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 339,326 | ||
Total Investments (Fair Value) | $ 346,544 | ||
Investment Owned, % of Net Assets | 0.43% | 0.43% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 339,326 | 339,326 | |
Investment, Identifier [Axis]: BLP Buyer Inc Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.67% | 10.67% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 139,482 | ||
Amortized Cost | 139,482 | ||
Total Investments (Fair Value) | $ 135,995 | ||
Investment Owned, % of Net Assets | 0.17% | 0.17% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BLP Buyer Inc Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.49% | 10.49% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 2,778,445 | ||
Amortized Cost | 2,731,359 | ||
Total Investments (Fair Value) | $ 2,708,984 | ||
Investment Owned, % of Net Assets | 3.38% | 3.38% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BLP Buyer Inc Term Loan One | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.21% | 10.21% | |
Investment, Investment Date | Oct. 03, 2022 | ||
Investment Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,278,711 | ||
Amortized Cost | 1,248,201 | ||
Total Investments (Fair Value) | $ 1,246,743 | ||
Investment Owned, % of Net Assets | 1.55% | 1.55% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BLP Buyer Inc Term Loan Two | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | BLP Buyer Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.75% | 6.75% | |
Investment, Interest Rate, Floor | 2% | 2% | |
Investment, Interest Rate, Paid in Cash | 11.08% | 11.08% | |
Investment, Investment Date | Dec. 08, 2022 | ||
Investment Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 4,852,763 | ||
Amortized Cost | 4,709,383 | ||
Total Investments (Fair Value) | $ 4,731,444 | ||
Investment Owned, % of Net Assets | 5.89% | 5.89% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: BSC Blue Water Holdings, LLC Series A Units Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Baker Manufacturing Company, LLC | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Jul. 05, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Amortized Cost | $ 330,978 | ||
Total Investments (Fair Value) | $ 262,680 | ||
Investment Owned, % of Net Assets | 0.33% | 0.33% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 330,978 | 330,978 | |
Investment, Identifier [Axis]: Baker Manufacturing Company, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Baker Manufacturing Company, LLC | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.25% | 5.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.75% | 10.75% | |
Investment, Investment Date | Jul. 05, 2022 | ||
Investment Maturity Date | Jul. 05, 2027 | Jul. 05, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:CapitalEquipmentSectorMember | spcbdc:CapitalEquipmentSectorMember | |
Investment Owned, Balance, Principal Amount | $ 6,169,082 | ||
Amortized Cost | 6,053,037 | ||
Total Investments (Fair Value) | $ 6,076,546 | ||
Investment Owned, % of Net Assets | 7.57% | 7.57% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: CF Arch Holdings LLC Class A Units Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Archer Systems LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Aug. 10, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 496,967 | ||
Total Investments (Fair Value) | $ 527,885 | ||
Investment Owned, % of Net Assets | 0.66% | 0.66% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 496,967 | 496,967 | |
Investment, Identifier [Axis]: COPILOT Provider Support Services, LLC QHP Project Captivate Blocker, Inc. Common Stock | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | COPILOT Provider Support Services, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Nov. 22, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | Healthcare Sector [Member] | Healthcare Sector [Member] | |
Amortized Cost | $ 544,779 | ||
Total Investments (Fair Value) | $ 544,779 | ||
Investment Owned, % of Net Assets | 0.68% | 0.68% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 8 | 8 | |
Investment, Identifier [Axis]: COPILOT Provider Support Services, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | COPILOT Provider Support Services, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 2% | 2% | |
Investment, Interest Rate, Paid in Cash | 11.23% | 11.23% | |
Investment, Investment Date | Nov. 22, 2022 | ||
Investment Maturity Date | Nov. 22, 2027 | Nov. 22, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | Healthcare Sector [Member] | Healthcare Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 9,509,802 | ||
Amortized Cost | 9,321,496 | ||
Total Investments (Fair Value) | $ 9,321,496 | ||
Investment Owned, % of Net Assets | 11.61% | 11.61% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Curion Holdings, LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Curion Holdings, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.98% | 10.98% | |
Investment, Investment Date | Jul. 29, 2022 | ||
Investment Maturity Date | Jul. 29, 2027 | Jul. 29, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 893,121 | ||
Amortized Cost | 893,121 | ||
Total Investments (Fair Value) | $ 870,793 | ||
Investment Owned, % of Net Assets | 1.08% | 1.08% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment, Identifier [Axis]: Curion Holdings, LLC SP CS Holdings LLC Class A Units Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Curion Holdings, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Jul. 29, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 343,529 | ||
Total Investments (Fair Value) | $ 274,144 | ||
Investment Owned, % of Net Assets | 0.34% | 0.34% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 343,529 | 343,529 | |
Investment, Identifier [Axis]: Curion Holdings, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Curion Holdings, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.98% | 10.98% | |
Investment, Investment Date | Jul. 29, 2022 | ||
Investment Maturity Date | Jul. 29, 2027 | Jul. 29, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 3,542,772 | ||
Amortized Cost | 3,476,632 | ||
Total Investments (Fair Value) | $ 3,454,203 | ||
Investment Owned, % of Net Assets | 4.30% | 4.30% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Exigo LLC Gauge Exigo CoinvestLLC Common Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Exigo LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Mar. 16, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:SoftwareIndustryMember | spcbdc:SoftwareIndustryMember | |
Amortized Cost | $ 168,003 | ||
Total Investments (Fair Value) | $ 151,768 | ||
Investment Owned, % of Net Assets | 0.19% | 0.19% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 168,003 | 168,003 | |
Investment, Identifier [Axis]: Exigo LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Exigo LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.13% | 10.13% | |
Investment, Investment Date | Mar. 16, 2022 | ||
Investment Maturity Date | Mar. 16, 2027 | Mar. 16, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:SoftwareIndustryMember | spcbdc:SoftwareIndustryMember | |
Investment Owned, Balance, Principal Amount | $ 47,642 | ||
Amortized Cost | 47,642 | ||
Total Investments (Fair Value) | $ 46,927 | ||
Investment Owned, % of Net Assets | 0.06% | 0.06% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Exigo LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Exigo LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.13% | 10.13% | |
Investment, Investment Date | Mar. 16, 2022 | ||
Investment Maturity Date | Mar. 16, 2027 | Mar. 16, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:SoftwareIndustryMember | spcbdc:SoftwareIndustryMember | |
Investment Owned, Balance, Principal Amount | $ 4,001,839 | ||
Amortized Cost | 3,949,517 | ||
Total Investments (Fair Value) | $ 3,941,811 | ||
Investment Owned, % of Net Assets | 4.91% | 4.91% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Florachem Corporation SK FC Holdings LP Class A Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Florachem Corporation [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Apr. 29, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Amortized Cost | $ 161,283 | ||
Total Investments (Fair Value) | $ 162,513 | ||
Investment Owned, % of Net Assets | 0.20% | 0.20% | |
Investment Owned, Balance, Shares | shares | 161 | 161 | |
Investment, Identifier [Axis]: Florachem Corporation Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Florachem Corporation [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.23% | 11.23% | |
Investment, Investment Date | Apr. 29, 2022 | ||
Investment Maturity Date | Apr. 29, 2028 | Apr. 29, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,258,510 | ||
Amortized Cost | 1,235,422 | ||
Total Investments (Fair Value) | $ 1,233,340 | ||
Investment Owned, % of Net Assets | 1.54% | 1.54% | |
Investment, Identifier [Axis]: HV Watterson Holdings LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | HV Watterson Holdings LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.18% | 11.18% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Dec. 17, 2026 | Dec. 17, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 8,159,862 | ||
Amortized Cost | 8,091,364 | ||
Total Investments (Fair Value) | $ 7,915,066 | ||
Investment Owned, % of Net Assets | 9.86% | 9.86% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: HV Watterson Holdings, LLC Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | HV Watterson Holdings LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.18% | 11.18% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Dec. 17, 2026 | Dec. 17, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 198,201 | ||
Amortized Cost | 196,345 | ||
Total Investments (Fair Value) | $ 192,255 | ||
Investment Owned, % of Net Assets | 0.24% | 0.24% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: HV Watterson Holdings, LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | HV Watterson Holdings LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.18% | 11.18% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Dec. 17, 2026 | Dec. 17, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 198,642 | ||
Amortized Cost | 198,642 | ||
Total Investments (Fair Value) | $ 192,683 | ||
Investment Owned, % of Net Assets | 0.24% | 0.24% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Heartland Business Systems, LLC AMCO HBS Holdings, LP Class A Units Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heartland Business Systems LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Aug. 26, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 157,008 | ||
Total Investments (Fair Value) | $ 243,972 | ||
Investment Owned, % of Net Assets | 0.30% | 0.30% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,570 | 1,570 | |
Investment, Identifier [Axis]: Heartland Business Systems, LLC Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heartland Business Systems LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.91% | 10.91% | |
Investment, Investment Date | Aug. 26, 2022 | ||
Investment Maturity Date | Aug. 26, 2027 | Aug. 26, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,658,076 | ||
Amortized Cost | 1,641,495 | ||
Total Investments (Fair Value) | $ 1,633,205 | ||
Investment Owned, % of Net Assets | 2.03% | 2.03% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Heartland Business Systems, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heartland Business Systems LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.79% | 10.79% | |
Investment, Investment Date | Aug. 26, 2022 | ||
Investment Maturity Date | Aug. 26, 2027 | Aug. 26, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 3,202,660 | ||
Amortized Cost | 3,142,195 | ||
Total Investments (Fair Value) | $ 3,154,620 | ||
Investment Owned, % of Net Assets | 3.93% | 3.93% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Heat Makes Sense Shared Services, LLC Ishtar Co-Invest-B LP Partnership Interests Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heat Makes Sense Shared Services, LLC | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Jul. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 298,251 | ||
Total Investments (Fair Value) | $ 340,070 | ||
Investment Owned, % of Net Assets | 0.42% | 0.42% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 298,251 | 298,251 | |
Investment, Identifier [Axis]: Heat Makes Sense Shared Services, LLC Oshun Co-Invest-B LP Partnership Interests Equity | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Heat Makes Sense Shared Services, LLC | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Jul. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 85,213 | ||
Total Investments (Fair Value) | $ 97,162 | ||
Investment Owned, % of Net Assets | 0.12% | 0.12% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 85,213 | 85,213 | |
Investment, Identifier [Axis]: Heat Makes Sense Shared Services, LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Heat Makes Sense Shared Services, LLC | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.50% | 5.50% | |
Investment, Interest Rate, Floor | 0.75% | 0.75% | |
Investment, Interest Rate, Paid in Cash | 10.37% | 10.37% | |
Investment, Investment Date | Jul. 01, 2022 | ||
Investment Maturity Date | Jul. 01, 2028 | Jul. 01, 2028 | |
Investment Owned, Balance, Principal Amount | $ 295,410 | ||
Amortized Cost | 295,410 | ||
Total Investments (Fair Value) | $ 290,979 | ||
Investment Owned, % of Net Assets | 0.36% | 0.36% | |
Investment, Identifier [Axis]: Heat Makes Sense Shared Services, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Heat Makes Sense Shared Services, LLC | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.50% | 5.50% | |
Investment, Interest Rate, Floor | 0.75% | 0.75% | |
Investment, Interest Rate, Paid in Cash | 9.63% | 9.63% | |
Investment, Investment Date | Jul. 01, 2022 | ||
Investment Maturity Date | Jul. 01, 2029 | Jul. 01, 2029 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Investment Owned, Balance, Principal Amount | $ 7,480,115 | ||
Amortized Cost | 7,334,957 | ||
Total Investments (Fair Value) | $ 7,367,913 | ||
Investment Owned, % of Net Assets | 9.18% | 9.18% | |
Investment, Identifier [Axis]: Inoapps Bidco LLC Inoapps Holdings LLC Series A1 Preferred Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Inoapps Bidco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Feb. 15, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:HighTechIndustriesMember | spcbdc:HighTechIndustriesMember | |
Amortized Cost | $ 543,572 | ||
Total Investments (Fair Value) | $ 529,959 | ||
Investment Owned, % of Net Assets | 0.66% | 0.66% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 512,365 | 512,365 | |
Investment, Identifier [Axis]: Inoapps Bidco LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Inoapps Bidco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.19% | 10.19% | |
Investment, Investment Date | Feb. 15, 2022 | ||
Investment Maturity Date | Feb. 15, 2027 | Feb. 15, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:HighTechIndustriesMember | spcbdc:HighTechIndustriesMember | |
Investment Owned, Balance, Principal Amount | $ 5,664,137 | ||
Amortized Cost | 5,567,760 | ||
Total Investments (Fair Value) | $ 5,550,854 | ||
Investment Owned, % of Net Assets | 6.92% | 6.92% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Inoapps Bidco, LLC Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Inoapps Bidco LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.75% | 5.75% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.19% | 10.19% | |
Investment, Investment Date | Feb. 15, 2022 | ||
Investment Maturity Date | Feb. 15, 2027 | Feb. 15, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:HighTechIndustriesMember | spcbdc:HighTechIndustriesMember | |
Investment Owned, Balance, Principal Amount | $ 2,365,987 | ||
Amortized Cost | 2,344,107 | ||
Total Investments (Fair Value) | $ 2,318,667 | ||
Investment Owned, % of Net Assets | 2.89% | 2.89% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: International Designs Group LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | International Designs Group LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Apr. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | Construction Sector [Member] | Construction Sector [Member] | |
Amortized Cost | $ 455,341 | ||
Total Investments (Fair Value) | $ 444,895 | ||
Investment Owned, % of Net Assets | 0.55% | 0.55% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 455,341 | 455,341 | |
Investment, Identifier [Axis]: Lightning Intermediate II LLC Gauge Vimergy Coinvest LLC Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Lightning Intermediate II LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Jun. 06, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Amortized Cost | $ 178,347 | ||
Total Investments (Fair Value) | $ 133,477 | ||
Investment Owned, % of Net Assets | 0.17% | 0.17% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 178 | 178 | |
Investment, Identifier [Axis]: Lightning Intermediate II LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Lightning Intermediate II LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.50% | 6.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.54% | 11.54% | |
Investment, Investment Date | Jun. 06, 2022 | ||
Investment Maturity Date | Jun. 06, 2027 | Jun. 06, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Investment Owned, Balance, Principal Amount | $ 6,078,133 | ||
Amortized Cost | 5,967,985 | ||
Total Investments (Fair Value) | $ 5,895,789 | ||
Investment Owned, % of Net Assets | 7.35% | 7.35% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: MacKenzie Childs Acquisition, Inc, MacKenzie-Childs Investment, LP Partnership Interests | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | MacKenzie-Childs Acquisition Inc. [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 02, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | us-gaap-supplement:ConsumerSectorMember | us-gaap-supplement:ConsumerSectorMember | |
Amortized Cost | $ 311,482 | ||
Total Investments (Fair Value) | $ 285,502 | ||
Investment Owned, % of Net Assets | 0.36% | 0.36% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 311,482 | 311,482 | |
Investment, Identifier [Axis]: MacKenzie Childs Acquisition, Inc, Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | MacKenzie-Childs Acquisition Inc. [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6% | 6% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.73% | 10.73% | |
Investment, Investment Date | Sep. 02, 2022 | ||
Investment Maturity Date | Sep. 02, 2027 | Sep. 02, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | us-gaap-supplement:ConsumerSectorMember | us-gaap-supplement:ConsumerSectorMember | |
Investment Owned, Balance, Principal Amount | $ 1,331,608 | ||
Amortized Cost | 1,331,608 | ||
Total Investments (Fair Value) | $ 1,311,634 | ||
Investment Owned, % of Net Assets | 1.63% | 1.63% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: MacKenzie Childs Acquisition, Inc, Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | MacKenzie-Childs Acquisition Inc. [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6% | 6% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.73% | 10.73% | |
Investment, Investment Date | Sep. 02, 2022 | ||
Investment Maturity Date | Sep. 02, 2027 | Sep. 02, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | us-gaap-supplement:ConsumerSectorMember | us-gaap-supplement:ConsumerSectorMember | |
Investment Owned, Balance, Principal Amount | $ 9,378,542 | ||
Amortized Cost | 9,245,162 | ||
Total Investments (Fair Value) | $ 9,237,863 | ||
Investment Owned, % of Net Assets | 11.51% | 11.51% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Madison Logic Holdings, Inc. Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Madison Logic Holdings, Inc. [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 7% | 7% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.58% | 11.58% | |
Investment, Investment Date | Dec. 30, 2022 | ||
Investment Maturity Date | Dec. 30, 2027 | Dec. 30, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:MediaBroadcastingAndSubscriptionMember | spcbdc:MediaBroadcastingAndSubscriptionMember | |
Investment Owned, Balance, Principal Amount | $ 4,756,819 | ||
Amortized Cost | 4,614,114 | ||
Total Investments (Fair Value) | $ 4,614,114 | ||
Investment Owned, % of Net Assets | 5.75% | 5.75% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Microbe Formulas LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Microbe Formulas LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.67% | 10.67% | |
Investment, Investment Date | Apr. 04, 2022 | ||
Investment Maturity Date | Apr. 03, 2028 | Apr. 03, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:NonDurableConsumerGoodsSectorMember | spcbdc:NonDurableConsumerGoodsSectorMember | |
Investment Owned, Balance, Principal Amount | $ 4,433,420 | ||
Amortized Cost | 4,393,532 | ||
Total Investments (Fair Value) | $ 4,389,086 | ||
Investment Owned, % of Net Assets | 5.47% | 5.47% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Monitorus Holding LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 7% | 7% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.73% | 11.73% | |
Investment, Investment Date | May 24, 2022 | ||
Investment Maturity Date | May 24, 2027 | May 24, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Investment Owned, Balance, Principal Amount | $ 6,119,464 | ||
Amortized Cost | 6,064,112 | ||
Total Investments (Fair Value) | $ 6,058,269 | ||
Investment Owned, % of Net Assets | 7.54% | 7.54% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 7% | 7% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 11.73% | 11.73% | |
Investment, Investment Date | May 24, 2022 | ||
Investment Maturity Date | May 24, 2027 | May 24, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Investment Owned, Balance, Principal Amount | € | € 3,585,699 | ||
Amortized Cost | $ 3,619,085 | ||
Total Investments (Fair Value) | $ 3,582,895 | ||
Investment Owned, % of Net Assets | 4.45% | 4.45% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class A Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,819 | 1,635,819 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class B Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class C Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class D Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class E Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class F Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class G Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class H Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Monitorus Holding, LLC, Sapphire Aggregator S.a r.l. Class I Shares | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Monitorus Holding LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Sep. 01, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:DiversifiedAndProductionMediaSectorMember | spcbdc:DiversifiedAndProductionMediaSectorMember | |
Amortized Cost | $ 32,722 | ||
Total Investments (Fair Value) | $ 36,697 | ||
Investment Owned, % of Net Assets | 0.05% | 0.05% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 1,635,814 | 1,635,814 | |
Investment, Identifier [Axis]: Onpoint Industrial Services, LLC Spearhead TopCo, LLC Class A Units | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Onpoint Industrial Services, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | Equity Securities [Member] | Equity Securities [Member] | |
Investment, Investment Date | Nov. 16, 2022 | ||
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Amortized Cost | $ 335,499 | ||
Total Investments (Fair Value) | $ 335,499 | ||
Investment Owned, % of Net Assets | 0.42% | 0.42% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | false | false | |
Investment Owned, Balance, Shares | shares | 335,499 | 335,499 | |
Investment, Identifier [Axis]: Onpoint Industrial Services, LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Onpoint Industrial Services, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 7% | 7% | |
Investment, Interest Rate, Floor | 1.75% | 1.75% | |
Investment, Interest Rate, Paid in Cash | 11.58% | 11.58% | |
Investment, Investment Date | Nov. 16, 2022 | ||
Investment Maturity Date | Nov. 16, 2027 | Nov. 16, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:BusinessSectorMember | spcbdc:BusinessSectorMember | |
Investment Owned, Balance, Principal Amount | $ 6,805,027 | ||
Amortized Cost | 6,670,604 | ||
Total Investments (Fair Value) | $ 6,670,604 | ||
Investment Owned, % of Net Assets | 8.31% | 8.31% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Pearl Media Holdings, LLC, Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Pearl Media Holdings, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1.50% | 1.50% | |
Investment, Interest Rate, Paid in Cash | 10.93% | 10.93% | |
Investment, Investment Date | Aug. 31, 2022 | ||
Investment Maturity Date | Aug. 31, 2027 | Aug. 31, 2027 | |
Investment Owned, Balance, Principal Amount | $ 232,258 | ||
Amortized Cost | 232,258 | ||
Total Investments (Fair Value) | $ 227,613 | ||
Investment Owned, % of Net Assets | 0.28% | 0.28% | |
Investment, Identifier [Axis]: Pearl Media Holdings, LLC, Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Name [Extensible Enumeration] | Pearl Media Holdings, LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1.50% | 1.50% | |
Investment, Interest Rate, Paid in Cash | 10.98% | 10.98% | |
Investment, Investment Date | Aug. 31, 2022 | ||
Investment Maturity Date | Aug. 31, 2027 | Aug. 31, 2027 | |
Investment, Industry Sector [Extensible Enumeration] | us-gaap-supplement:ConsumerSectorMember | us-gaap-supplement:ConsumerSectorMember | |
Investment Owned, Balance, Principal Amount | $ 2,671,239 | ||
Amortized Cost | 2,620,622 | ||
Total Investments (Fair Value) | $ 2,617,814 | ||
Investment Owned, % of Net Assets | 3.26% | 3.26% | |
Investment, Identifier [Axis]: Peltram Plumbing Holdings LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Peltram Plumbing Holdings LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 6.25% | 6.25% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.98% | 10.98% | |
Investment, Investment Date | Feb. 01, 2022 | ||
Investment Maturity Date | Dec. 30, 2026 | Dec. 30, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | Construction Sector [Member] | Construction Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 6,995,815 | ||
Amortized Cost | 6,892,968 | ||
Total Investments (Fair Value) | $ 6,750,961 | ||
Investment Owned, % of Net Assets | 8.41% | 8.41% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Service Minds Company LLC Delayed Draw Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Service Minds Company LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5% | 5% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 9.29% | 9.29% | |
Investment, Investment Date | Feb. 07, 2022 | ||
Investment Maturity Date | Feb. 07, 2028 | Feb. 07, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Consumer Services Sector [Member] | Consumer Services Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 531,687 | ||
Amortized Cost | 526,873 | ||
Total Investments (Fair Value) | $ 518,395 | ||
Investment Owned, % of Net Assets | 0.65% | 0.65% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Service Minds Company LLC Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Service Minds Company LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5% | 5% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 9.44% | 9.44% | |
Investment, Investment Date | Feb. 07, 2022 | ||
Investment Maturity Date | Feb. 07, 2028 | Feb. 07, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Consumer Services Sector [Member] | Consumer Services Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 193,976 | ||
Amortized Cost | 193,976 | ||
Total Investments (Fair Value) | $ 189,127 | ||
Investment Owned, % of Net Assets | 0.24% | 0.24% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Service Minds Company LLC Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Service Minds Company LLC [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5% | 5% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 9.29% | 9.29% | |
Investment, Investment Date | Feb. 07, 2022 | ||
Investment Maturity Date | Feb. 07, 2028 | Feb. 07, 2028 | |
Investment, Industry Sector [Extensible Enumeration] | Consumer Services Sector [Member] | Consumer Services Sector [Member] | |
Investment Owned, Balance, Principal Amount | $ 2,409,325 | ||
Amortized Cost | 2,367,173 | ||
Total Investments (Fair Value) | $ 2,349,092 | ||
Investment Owned, % of Net Assets | 2.93% | 2.93% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Tilley Distribution Inc Revolver | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Tilley Distribution Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.50% | 5.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.14% | 10.14% | |
Investment, Investment Date | Apr. 01, 2022 | ||
Investment Maturity Date | Dec. 31, 2026 | Dec. 31, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Investment Owned, Balance, Principal Amount | $ 171,578 | ||
Amortized Cost | 171,578 | ||
Total Investments (Fair Value) | $ 165,573 | ||
Investment Owned, % of Net Assets | 0.21% | 0.21% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true | |
Investment, Identifier [Axis]: Tilley Distribution Inc Term Loan | |||
Schedule of Investments [Line Items] | |||
Investment, Issuer Affiliation [Extensible Enumeration] | Investment, Unaffiliated Issuer [Member] | Investment, Unaffiliated Issuer [Member] | |
Investment, Issuer Name [Extensible Enumeration] | Tilley Distribution Inc [Member] | ||
Investment, Type [Extensible Enumeration] | spcbdc:FirstLienMember | spcbdc:FirstLienMember | |
Investment, Interest Rate, Coupon Rate | 5.50% | 5.50% | |
Investment, Interest Rate, Floor | 1% | 1% | |
Investment, Interest Rate, Paid in Cash | 10.14% | 10.14% | |
Investment, Investment Date | Apr. 01, 2022 | ||
Investment Maturity Date | Dec. 31, 2026 | Dec. 31, 2026 | |
Investment, Industry Sector [Extensible Enumeration] | spcbdc:ChemicalsPlasticsAndRubberSectorMember | spcbdc:ChemicalsPlasticsAndRubberSectorMember | |
Investment Owned, Balance, Principal Amount | $ 6,000,285 | ||
Amortized Cost | 5,922,488 | ||
Total Investments (Fair Value) | $ 5,790,275 | ||
Investment Owned, % of Net Assets | 7.21% | 7.21% | |
Investment, Significant Unobservable Input [true false] | true | true | |
Investment, Non-income Producing [true false] | true | true |
NATURE OF OPERATIONS AND SIGNIF
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Stellus Private Credit BDC (“we”, “us”, “our” and the “Company”) was formed on December 7, 2021 (“Inception”) as a Delaware statutory trust and is an externally managed, closed-end, non-diversified investment management company. Prior to February 1, 2022 (“Commencement of Operations”), the Company was devoting substantially all of its efforts to establishing the business and conducting organizational and marketing efforts. The Company is applying the guidance of Accounting Standards Codification Topic 946, Financial Services Investment Companies As of December 31, 2022, the Company has issued a total of 5,480,483 common shares of beneficial interest in connection with draw downs of On February 11, 2022, the Company formed PBDC Consolidated Blocker (the “Taxable Subsidiary”), which is structured as a Delaware entity, to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass-through entities). The Taxable Subsidiary is consolidated for U.S. generally accepted accounting principles (“U.S. GAAP”) reporting purposes, and the portfolio investments held by the Taxable Subsidiary are included in the consolidated financial statements. As a BDC, the Company is required to comply with certain regulatory requirements. In accordance with the 1940 Act, we are required to meet a coverage ratio of total assets (less total liabilities other than indebtedness) to total borrowings and other senior securities (and any preferred stock that we may issue in the future) of at least 150%. If this ratio declines below 150%, we cannot incur additional leverage and could be required to sell a portion of our investments to repay some leverage when it is disadvantageous to do so. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. As of December 31, 2022, our asset coverage ratio was 200%. The Company’s investment objective is to maximize the total return to its shareholders in the form of current income and capital appreciation through debt and related equity investments in middle-market companies. The Company seeks to achieve its investment objective by originating and investing primarily in private U.S. middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and unsecured debt financing, with corresponding equity co-investments. The Company sources investments primarily through the extensive network of relationships that the principals of Stellus Capital have developed with financial sponsor firms, financial institutions, middle-market companies, management teams and other professional intermediaries. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. GAAP and pursuant to the requirements for reporting on Form 10-K and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, certain disclosures accompanying the annual financial statements prepared in accordance with U.S. GAAP are omitted. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. In the opinion of management, the consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the periods included herein. Certain reclassifications have been made to certain prior period balances to conform with current presentation. In accordance with Regulation S-X under the Exchange Act, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars. COVID-19 Developments The effect on the U.S. and global economy of the ongoing pandemic caused by the novel coronavirus, SARS-CoV-2 (also referred to as “COVID-19” or “Coronavirus”), uncertainty relating to new variants of the Coronavirus that have emerged in the United States and globally, vaccine distribution, hesitancy and efficacy, the length of economic recovery, and policies of the U.S. presidential administration have created stress on the market and could affect our portfolio companies. Each portfolio company has been assessed on an individual basis to identify the impact of the COVID-19 pandemic on the valuation of our investments in such company. We believe that any such COVID-19 pandemic impacts have been reflected in the valuation of our investments. The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on our future net investment income, the fair value of our portfolio investments and our financial condition. Economic Developments Economic activity has continued to accelerate across sectors and regions. Nonetheless, we have observed and continue to observe supply chain interruptions, labor resource shortages, commodity inflation, rising interest rates, economic sanctions in response to international conflicts and instances of geopolitical, economic and financial market instability in the United States and abroad. One or more of these factors may contribute to increased market volatility and may have long- and short-term effects in the United States and worldwide financial markets. Portfolio Investment Classification The Company classifies its portfolio investments in accordance with the requirements of the 1940 Act as follows: (a) “Control Investments” are defined as investments in which the Company owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which the Company owns between 5% and 25% of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) “Non-controlled, non-affiliate investments” are defined as investments that are neither Control Investments or Affiliate Investments. Cash and Cash Equivalents As of December 31, 2022, cash balances totaling $4,988 did not exceed Federal Deposit Insurance Corporation insurance protection levels of $250,000. As of December 31, 2022, the Company held $15,464,835 of cash equivalents, $12,500,000 of which was held in 10-day Cash consists of bank demand deposits. We deem certain U.S. Treasury Bills and other high-quality, short-term debt securities as cash equivalents. All of the Company's cash deposits are held at large established high credit quality financial institutions and management believes that risk of loss associated with any uninsured balances is remote. Fair Value Measurements We account for all of our financial instruments at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures The COVID-19 pandemic is an unprecedented circumstance that could materially impact the fair value of the Company’s investments. The COVID-19 pandemic may also impact the Company’s portfolio companies’ ability to pay their respective contractual obligations, including principal and interest due to the Company, and some portfolio companies could require interest or principal deferrals to fulfill short-term liquidity needs. The Company works with each of its portfolio companies, as necessary, to help them access short-term liquidity through potential interest deferrals, funding on unused lines of credit, and other sources of liquidity. During the year ended December 31, 2022, no interest deferrals have been made related to COVID-19 or otherwise. Consolidation As permitted under Regulation S-X under the Exchange Act and ASC Topic 946, we generally do not consolidate our investment in a portfolio company other than an investment company subsidiary. However, we consolidated the results of the Taxable Subsidiary. All intercompany balances have been eliminated upon consolidation. Use of Estimates The preparation of the Consolidated Statements of Assets and Liabilities in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. Deferred Financing Costs Deferred financing costs consists of prepaid loan structure fees and expenses paid in connection with the closing of our Credit Facilities and are capitalized at the time of payment. These costs are amortized using the straight line method over the term of the respective instrument and presented as an offset to the corresponding debt on the Consolidated Statements of Assets and Liabilities. Organizational Costs Organizational costs include costs relating to the formation and incorporation of the Company, which generally include legal fees. These costs are expensed as incurred. Deferred Offering Costs Costs associated with the offering of common shares of beneficial interest of the Company are capitalized as deferred offering expenses and included on the Statements of Assets and Liabilities and amortized over a twelve-month period from Commencement of Operations. These expenses include legal, accounting, printing fees and other related expenses and costs incurred in connection with preparing the offering documents relating to the Private Offering. Investments In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC has rescinded previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and have a compliance date of September 8, 2022. While our Board of Trustees has not elected to designate the Advisor as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order to comply with the applicable requirements of Rule 2a-5 and Rule 31a-4. As a BDC, the Company will generally invest in illiquid loans and securities including debt and equity securities of private middle-market companies. Section 2(a)(41)of the 1940 Act requires that a BDC value its assets as follows: (i) the third party price for securities for which a quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith by a BDC's Board of Trustees. Under procedures established by our Board, the Company intends to value investments for which market quotations are readily available at such market quotations. The Company will obtain these market values from an independent pricing service or at the midpoint of the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). Debt and equity securities that are not publicly traded or whose market prices are not readily available will be valued at fair value as determined in good faith by our Board. Such determination of fair values may involve subjective judgments and estimates. The Company also engages independent valuation providers to review the valuation of each portfolio investment that does not have a readily available market quotation at least twice annually. Debt and equity investments purchased within approximately 90 days of the valuation date will be valued at cost, plus accreted discount, or minus amortized premium, which approximates fair value. With respect to unquoted securities, our Board will value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Board will use the pricing indicated by the external event to corroborate and/or assist us in its valuation. Because the Company expects that there will not be a readily available market quotation for many of the investments in its portfolio, the Company expects to value most of its portfolio investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. In following these approaches, the types of factors that will be taken into account in fair value pricing investments will include, as relevant, but not be limited to: ● available current market data, including relevant and applicable market trading and transaction comparables; ● applicable market yields and multiples; ● financial covenants; ● call protection provisions; ● information rights; ● the nature and realizable value of any collateral; ● the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business; ● comparisons of financial ratios of peer companies that are public; ● comparable merger and acquisition transactions; and ● the principal market and enterprise values . Revenue Recognition We record interest income on an accrual basis to the extent such interest is deemed collectible. Payment-in-kind (“PIK”) interest, represents contractual interest accrued and added to the loan balance that generally becomes due at maturity. We will not accrue any form of interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount and market discount or premium are capitalized, and we then accrete or amortize such amounts using the effective interest method as interest income. Upon the prepayment of a loan or debt security, any unamortized loan origination fee is recorded as interest income. We record prepayment premiums on loans and debt securities as other income. Dividend income, if any, will be recognized on the declaration date. A presentation of the interest income we have received from portfolio companies for the year ended December 31, 2022 is as follows: For the year ended December 31, 2022 Loan interest $ 7,288,643 Fee amortization income (1) 407,489 Fee income acceleration (2) 108,651 Total Interest Income $ 7,804,783 (1) Includes amortization of fees on unfunded commitments. (2) Unamortized loan origination fees recognized upon full or partial realization of investment. Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation Realized gains or losses are measured by the difference between the net proceeds from the repayment, sale or disposition and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. Investment Transaction Costs Costs that are material associated with an investment transaction, including legal expenses, are included in the cost basis of purchases and deducted from the proceeds of sales unless such costs are reimbursed by the borrower. Receivables and Payables for Unsettled Securities Transaction The Company records all investments on a trade date basis. U.S. Federal Income Taxes The Company qualifies and intends to elect to be treated as a RIC under Subchapter M of the Code, and to operate in a manner to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, among other things, the Company is required to timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, for each year. So long as the Company maintains its status as a RIC, it generally will not be subject to U.S. federal income tax on any ordinary income or capital gains that it distributes at least annually to its shareholders as dividends. Rather, any tax liability related to income earned by the Company represents obligations of the Company’s investors and will not be reflected in the consolidated financial statements of the Company. To avoid a 4% U.S federal excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its net capital gains for the one-year period ending December 31, and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no federal income tax or the Excise Tax Avoidance Requirement. For this purpose, however, any net ordinary income or capital gain net income retained by us that is subject to corporate income tax for the tax year ending in that calendar year will be considered to have been distributed by year end (or earlier if estimated taxes are paid). The Company, at its discretion, may choose not to distribute all its taxable income for the calendar year and pay a non-deductible 4% excise tax on this income. If the Company chooses to do so, all other things being equal, this would increase expenses and reduce the amount of cash available to be distributed to shareholders. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, the Company accrues excise taxes on estimated excess taxable income as taxable income is earned. As of December 31, 2022, the Company estimates that it has $186,776 of undistributed taxable income that was carried forward toward distributions to be paid in 2023. Current income tax expense for the year ended December 31, 2022 of $7,471 is related to federal excise taxes. The Company evaluates tax positions taken or expected to be taken while preparing its tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the applicable period. As of December 31, 2022, the Company had not recorded a liability for any uncertain tax positions. Management’s evaluation of uncertain tax positions may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. The Company’s policy is to include interest and penalties related to income taxes, if applicable, in general and administrative expenses. There were no such expenses for the year ended December 31, 2022. The Taxable Subsidiary is a direct wholly-owned subsidiary of the Company that has elected to be a treated as a corporation for U.S. federal income tax purposes, and as a result, the income of the Taxable Subsidiary is subject to U.S. federal income tax at corporate rates . The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies that are “pass through” entities for U.S. federal income tax purposes and continue to comply with the “source-of-income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities The Taxable Subsidiary uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized. For the year ended December 31, 2022, the Company had no deferred tax assets or liabilities Earnings per Share Basic per share calculations are computed utilizing the weighted average number of common shares of beneficial interest outstanding for the period. The Company has no common share of beneficial interest equivalents. As a result, there is no difference between diluted earnings per share and basic per share amounts. Paid In Capital The Company records the proceeds from the sale of its common shares of beneficial interest on a net basis to (i) capital stock and (ii) paid in capital in excess of par value, excluding all commissions and marketing support fees. Distributable Earnings The components that make up total distributable loss on the Statements of Assets and Liabilities as of December 31, 2022 is as follows: December 31, 2022 December 31, 2021 Accumulated net realized gain from investments $ 1,950 $ — Net unrealized depreciation on non-controlled non-affiliated investments and cash equivalents (538,883) — Net unrealized appreciation on foreign currency translations 20,961 — Accumulated undistributed net investment loss (226,750) (532,845) Total distributable loss $ (742,722) $ (532,845) Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. The Company has agreements that have the London Interbank Offered Rate (“LIBOR”) as a reference rate with certain portfolio companies and with certain lenders. Many of these agreements include language for choosing an alternative successor rate, such as SOFR (as defined below), if LIBOR reference is no longer considered to be appropriate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The Company adopted this amendment in February 2022 and plans to apply the amendments in this update to account for contract modifications as contracts are amended to include a new reference rate or when LIBOR reference is no longer used. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the year ended December 31, 2022. From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. We believe the impact of the recently issued standards and any that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. |
RELATED PARTY ARRANGEMENTS
RELATED PARTY ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY ARRANGEMENTS | |
RELATED PARTY ARRANGEMENTS | NOTE 2 — RELATED PARTY ARRANGEMENTS Investment Advisory Agreement The Company has entered into an investment advisory agreement with the Advisor pursuant to which the Advisor serves as its investment adviser (the “Advisory Agreement”). Pursuant to this agreement and a related fee waiver letter agreement, the Company has agreed to pay the Advisor an annual base management fee of 1.50% of gross assets, including assets purchased with borrowed funds or other forms of leverage (including preferred stock, public and private debt issuances, derivative instruments, repurchase agreements and other similar instruments or arrangements) The base management fee will be payable quarterly in arrears and be appropriately prorated for any partial quarter. Incentive Fee The incentive fee will consist of two components, an income-based incentive fee and a capital gains-based incentive fee, that are independent of each other, with the result that one component may be payable even if the other is not. Income-Based Incentive Fee. Pre-Incentive Fee Net Investment Income means interest income, fee income, distribution/dividend income and any other income accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Base Management Fee and expenses payable under the Administration Agreement but excluding any Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature, accrued income that the Company has not yet received in cash. The Advisor is not obligated to return the incentive fee based on income it receives on deferred interest that is later determined to be uncollectible in cash. Notwithstanding the foregoing, an income-based incentive fee shall be paid to the Advisor for any quarter only to the extent that, after such payment, the cumulative income-based incentive fees paid to the Advisor for the period that includes the then-current fiscal quarter and the three full preceding fiscal quarters (the “Income Incentive Fee Look-Back Period”) is less than or equal to, prior to any listing of our shares on a national securities exchange, 10% and, subsequent to any listing of our shares on a national securities exchange, 15% of the Company’s Cumulative Pre-Incentive Fee Net Return (as defined below) during the Income Incentive Fee Look-Back Period (the “Income Incentive Fee Cap”). “Cumulative Pre-Incentive Fee Net Return” during the Income Incentive Fee Look-Back Period means the sum of (a) Pre-Incentive Fee Net Investment Income for each period during the relevant Income Incentive Fee Look-Back Period and (b) the sum of realized capital gains and unrealized capital appreciation during the applicable Income Incentive Fee Look-Back Period less the sum of realized capital losses and unrealized capital depreciation during the applicable Income Incentive Fee Look-Back Period. For the year ended December 31, 2022, the Company accrued income incentive fees of $686,398. As of December 31, 2022, $228,800 of Income Incentive Fees accrued were waived pursuant to the 5% waiver prior to any listing of our shares on a national securities exchange and $21,644 of Income Incentive Fees accrued but not paid by the Company were deferred pursuant to the Cumulative Pre-Incentive Fee Net Return limitation and are not currently payable. The income-based incentive fees that have been waived by the Advisor are not subject to recoupment. Capital Gains Incentive Fee U.S. GAAP requires that the accrual considers the cumulative aggregate realized gains and losses and unrealized capital appreciation or depreciation of investments and other financial instruments in the calculation, as an incentive fee would be payable if such realized gains and losses and unrealized capital appreciation or depreciation were realized, even though such realized gains and losses and unrealized capital appreciation or depreciation is not permitted to be considered in calculating the fee actually payable under the investment advisory agreement. There can be no assurance that unrealized appreciation or depreciation will be realized in the future. Accordingly, such fees, as calculated and accrued, may not necessarily be payable under the investment advisory agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. For the year ended December 31, 2022, the Company did not accrue any Capital Gains Incentive Fee. Expense Support and Conditional Reimbursement The Advisor has contractually agreed to reimburse expenses, beginning with the Commencement of Operations, to keep annual operating expenses to be no more than an amount equal to 12.5 basis points of its total assets per quarter (50 basis points of its total assets per annum), pro-rated for partial periods, for the covered operating expenses (as defined below). The contractual fee reimbursements may be modified or terminated only with the approval of the Board, including a majority of the Independent Trustees. For purposes of the reimbursed expense calculations, covered operating expenses do not include organizational and offering expenses; costs relating to the offerings of the Company’s common shares of beneficial interest and other securities (including underwriting, placement agent and similar fees and commissions); interest payable on debt, if any, incurred to finance the Company’s investments and other fees and expenses related to the Company’s borrowings; U.S. federal, state and local taxes; all costs of registration and listing the Company’s shares on any securities exchange; investment advisory and management fees payable to the Advisor; and third-party investor hosting and similar platforms and service providers. For the year ended December 31, 2022, the Company recorded expense reimbursements of Reimbursements made by the Advisor with respect to the Company, with the exception of management fee waivers, are subject to recoupment from the Company within a three year time period, provided that the Company is able to effect such payment to the Advisor without exceeding the applicable expense limitations in effect at the time such waivers and/or reimbursements occurred. For the year ended December 31, 2022, expenses reimbursed by the Advisor included in the Consolidated Statement of Operations, subject to recoupment by the Company over three years is as follows: For the Three Amount Subject Amount Balance Subject Date of Months Ended to Recoupment Recouped to Recoupment Expiration March 31, 2022 $ 157,933 $ — $ 157,933 March 31, 2025 June 30, 2022 87,423 — 87,423 June 30, 2025 September 30, 2022 79,475 — 79,475 September 30, 2025 December 31, 2022 63,511 — 63,511 December 31, 2025 Trustees’ Fees Each Independent Trustee of the Board is paid an annual board retainer of $50,000 , payable in quarterly installments. The Company reimburses Independent Trustees for any out-of-pocket expenses related to their service as members of the Board. The Independent Trustees of the Board do not receive any stock-based compensation for their service as members of the Board. The Company’s trustees who are employed by Stellus Capital do not receive any compensation for their service as members of the Board. In addition, the Audit Committee Chairman is paid an additional annual retainer of $10,000 . For the year ended December 31, 2022 and for the period from Inception to December 31, 2021, the Company recorded an expense relating to trustees’ fees of $158,000 and $42,000. As of December 31, 2022 and 2021, $0 and $42,000 in fees were payable to the Company’s trustees, respectively. Co-Investment Pursuant to SEC Order On May 9, 2022, the Company received an exemptive order (the “Order”) from the SEC that permits it to co-invest with investment funds managed by the Advisor and its affiliates where doing so is consistent with the Company’s investment strategy as well as applicable law (including the terms and conditions of the exemptive order issued by the SEC). Under the terms of the relief permitting the Company to co-invest with other funds managed by the Advisor and its affiliates, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Independent Trustees must make certain conclusions in connection with a co-investment transaction, including (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its and do not involve overreaching of the Company or its shareholders on the part of any person concerned and (2) the transaction is consistent with the interests of its shareholders and is consistent with the Company’s investment objectives and strategies. License Agreement The Company has entered into a license agreement with Stellus Capital under which Stellus Capital has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Stellus Capital.” Under this agreement, the Company has a right to use the “Stellus Capital” name for so long as the Advisor, Stellus Capital or one of their affiliates remains the Company’s investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Stellus Capital” name. This license agreement will remain in effect for so long as the Advisory Agreement with the Advisor is in effect. Administration Agreement Under the Administration Agreement, Stellus Capital furnishes the Company with office facilities and equipment and will provide the Company with clerical, bookkeeping, recordkeeping and other administrative services at such facilities. Stellus Capital also performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial and other records that the Company is required to maintain and preparing reports to its shareholders and reports and other materials filed with the SEC. In addition, Stellus Capital assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports and other materials to its shareholders, and generally oversees the payment of its expenses and the performance of administrative and professional services rendered to the Company by others. Under the Administration Agreement, Stellus Capital also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance. Payments under the Administration Agreement are equal to an amount based upon the Company’s allocable portion (subject to the review of the Board) of Stellus Capital’s overhead in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions and the Company’s allocable portion of the cost of the Company’s Chief Financial Officer and Chief Compliance Officer and his staff. In addition, if requested to provide significant managerial assistance to the Company’s portfolio companies, Stellus Capital will be paid an additional amount based on the services provided, which shall not exceed the amount that the Company receives from such portfolio companies for providing this assistance. The Administration Agreement has an initial term of two years and may be renewed with the approval of the Board. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. To the extent that Stellus Capital outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without any incremental profit to Stellus Capital. The Board, including a majority of the Independent Trustees, will review the reimbursement payments made by the Company to the Administrator to determine if the provisions of the Administration Agreement are carried out satisfactorily and to determine, among other things, whether the reimbursement payments under the Administration Agreement are reasonable in light of the services provided. For the year ended December 31, 2022, the Company recorded expenses of $140,534, relating to the Administration Agreement. As of December 31, 2022, $51,737 remained payable to Stellus Capital under the Administration Agreement. Indemnifications Under the Advisory Agreement, the Advisor has not assumed any responsibility to the Company other than to render the services called for under that agreement. It will not be responsible for any action of the Board in following or declining to follow the Advisor’s advice or recommendations. Under the Advisory Agreement, the Advisor, its officers, members and personnel, and any person controlling or controlled by the Advisor will not be liable to the Company, any of its subsidiaries, its trustees, its shareholders or any subsidiary’s shareholders or partners for acts or omissions performed in accordance with and pursuant to the Advisory Agreement, except those resulting from acts constituting gross negligence, willful misfeasance, bad faith or reckless disregard of the duties that the Advisor owes to the Company under the Advisory Agreement. In addition, as part of the Advisory Agreement, the Company has agreed to indemnify the Advisor and each of its officers, trustees, managers, partners, agents, employees, controlling persons and members, and any other person or entity affiliated with the Advisor, from and against any claims, damages, liabilities, costs and expenses, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with the Company’s business and operations or any action taken or omitted on the Company’s behalf pursuant to authority granted by the Advisory Agreement or otherwise as the Company's investment adviser, except where attributable to gross negligence, willful misfeasance, bad faith or reckless disregard of such person’s duties under the Advisory Agreement. These protections may lead the Advisor to act in a riskier manner when acting on the Company’s behalf than it would when acting for its own account. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2022 | |
DISTRIBUTIONS | |
DISTRIBUTIONS | NOTE 3 — DISTRIBUTIONS Distributions are generally declared by the Company’s Board and recognized as distribution liabilities on the record date. The Company intends to make quarterly distributions to shareholders. Distributions will be made to shareholders at such times and in such amounts as determined by the Company’s Board. Any distribution to shareholders will be declared out of assets legally available for distribution. For the year ended December 31, 2022, the Company has declared aggregate distributions of $0.87 per share on its common shares of beneficial interest. The distributions per share on a weighted average share basis in the Consolidated Statement of Operations The Company has declared aggregate distributions of $0.87 per share on its common shares of beneficial ownership since Inception: Date Declared Record Date Payment Date Per Share Fiscal 2022 August 4, 2022 August 11, 2022 August 31, 2022 $ 0.21 November 3, 2022 November 4, 2022 November 10, 2022 $ 0.33 December 27, 2022 December 30, 2022 January 13, 2023 $ 0.33 Total $ 0.87 In addition, the Company has adopted a dividend reinvestment plan (“DRIP”), pursuant to which each shareholder will receive dividends in the form of additional common shares of beneficial interest unless they notify the Plan Administrator and the Company's transfer agent and registrar in writing that they instead desire to receive cash. If a shareholder receives dividends in the form of shares, dividend proceeds that otherwise would have been distributed in cash will be retained by the Company for reinvestment. Shareholders who receive dividends and other distributions in the form of common shares of beneficial interest generally are subject to the same U.S. federal tax consequences as investors who elect to receive their distributions in cash; however, since their cash dividends will be reinvested, those investors will not receive cash with which to pay any applicable taxes on re-invested dividends. A shareholder may elect to receive dividends and other distributions in cash by notifying the Plan Administrator and the Company's transfer agent and registrar in writing at least 5 business days prior to the distribution date fixed by the Board for such dividend. If such notice is received by the Plan Administrator and the Company’s transfer agent and registrar less than 5 business days prior to the relevant distribution date, then that dividend will be paid in the form of Common Shares and any subsequent dividends will be paid in cash. The Company issued 2,950 common shares through the DRIP for the year ended December 31, 2022. |
EQUITY OFFERINGS AND RELATED EX
EQUITY OFFERINGS AND RELATED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
EQUITY OFFERINGS AND RELATED EXPENSES | |
EQUITY OFFERINGS AND RELATED EXPENSES | NOTE 4 — EQUITY OFFERINGS AND RELATED EXPENSES On January 31, 2022, the Company completed an initial closing of capital commitments and received an aggregate capital commitment of $226,687,500. On this same date, pursuant to this capital commitment, the Company issued 2,333,334 common shares of beneficial interest at a price of $15.00 for total aggregate proceeds of $35,000,000. As of December 31, 2022, the Company had $233,037,500 in capital commitments, of which $151,687,500 remain undrawn. As of December 31, 2022, the Company has issued a total of 5,483,433 common shares of beneficial interest in connection with draw downs of Organizational Offering Common Shares Number of Gross Expense Net Price Type of Common Shares Issuance Issuance Date Shares Proceeds Allocation (1) Proceeds (2) Per Share Capital draw down January 31, 2022 2,333,334 $ 35,000,000 $ — $ 35,000,000 $ 15.00 Capital draw down May 11, 2022 1,355,013 20,000,000 — 20,000,000 14.76 Capital draw down August 30, 2022 1,358,696 20,000,000 — 20,000,000 14.72 Dividend reinvestment August 31, 2022 294 4,328 — 4,328 14.72 Immediate share issuance September 27, 2022 91,403 1,345,451 4,549 1,350,000 14.72 Immediate share issuance November 7, 2022 342,037 4,983,487 16,513 5,000,000 14.57 Dividend reinvestment November 10, 2022 2,656 39,565 — 39,565 14.90 Total 5,483,433 $ 81,372,831 $ 21,062 $ 81,393,893 (1) Pro rata expense of organizational and offering costs incurred by the Company in connection with the Company’s formation and offerings. The Organizational Expense Allocation represents a reduction to capital commitments to investors subsequent to the initial closing. (2) Net Proceeds per this equity table will differ from the Statement of Assets and Liabilities as of December 31, 2022, in the amount of $388,214 , which represents a tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles. This reclassification reduces paid-in capital and increases distributable earnings (increasing accumulated undistributed net investment income). |
NET INCREASE IN NET ASSETS PER
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST | |
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST | NOTE 5 — NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST The following information sets forth the computation of net decrease in net assets resulting from operations per common share of beneficial interest for the years ended December 31, 2022 and 2021. For the For the year ended year ended December 31, 2022 December 31, 2021 Net increase (decrease) in net assets resulting from operations $ 3,681,779 $ (532,845) Weighted average common shares of beneficial interest 3,869,643 N/A Net increase from operations per share $ 0.95 $ N/A |
PORTFOLIO INVESTMENTS AND FAIR
PORTFOLIO INVESTMENTS AND FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
PORTFOLIO INVESTMENTS AND FAIR VALUE | |
PORTFOLIO INVESTMENTS AND FAIR VALUE | NOTE 6 — PORTFOLIO INVESTMENTS AND FAIR VALUE In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 — Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by management. The Company considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances. At December 31, 2022, the Company had investments in 25 portfolio companies. The total cost and fair value of the investments were $158,022,677, and $157,504,755, respectively. The composition of our investments as of December 31, 2022 is as follows: Cost Fair Value Senior Secured – First Lien (1) $ 152,825,940 $ 152,257,418 Equity 5,196,737 5,247,337 Total Investments $ 158,022,677 $ 157,504,755 (1) Includes unitranche investments, which may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” portion of the unitranche loans which account for 3.9% of our portfolio at fair value. The Company’s investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of December 31, 2022, the Company had 22 of such investments with aggregate unfunded commitments of $36,293,611. The Company maintains sufficient liquidity (through cash on hand, its ability to drawdown capital from investors, and/or available borrowings under the Credit Facilities) to fund such unfunded commitments should the need arise. The aggregate gross unrealized depreciation and the aggregate cost and fair value of the Company’s portfolio company securities as December 31, 2022 was as follows: December 31, 2022 Aggregate cost of portfolio company securities $ 158,022,677 Gross unrealized appreciation of portfolio company securities 550,229 Gross unrealized depreciation of portfolio company securities (1,089,112) Gross unrealized appreciation on foreign currency translation 20,961 Aggregate fair value of portfolio company securities $ 157,504,755 The fair values of our investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of December 31, 2022 were as follows: Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total Senior Secured – First Lien (1) $ — $ — $ 152,257,418 $ 152,257,418 Equity — — 5,247,337 5,247,337 Total Investments $ — $ — $ 157,504,755 $ 157,504,755 The aggregate values of Level 3 portfolio investments change during the year ended December 31, 2022 were as follows: Senior Secured Loans-First Lien Equity Total Fair value at beginning of period $ — $ — $ — Purchases of investments 163,129,279 5,196,737 168,326,016 Sales and Redemptions (10,501,404) — (10,501,404) Change in unrealized (depreciation) appreciation on investments included in earnings (568,522) 29,639 (538,883) Change in unrealized appreciation on foreign currency translation included in earnings — 20,961 20,961 Amortization of premium and accretion of discount, net 198,065 — 198,065 Fair value at end of period $ 152,257,418 $ 5,247,337 $ 157,504,755 There were no Level 3 transfers during the year ended December 31, 2022. The following is a summary of geographical concentration of our investment portfolio as of December 31, 2022: % of Total Cost Fair Value Investments Texas $ 41,689,874 $ 41,670,626 26.46 % Florida 25,824,710 25,639,155 16.28 % New York 23,971,538 23,990,132 15.23 % Illinois 13,199,633 12,899,144 8.19 % United Kingdom 9,977,695 9,971,437 6.33 % Michigan 9,492,362 9,607,593 6.10 % Washington 6,892,968 6,750,961 4.29 % Indiana 6,384,015 6,339,226 4.02 % Maryland 6,094,066 5,955,848 3.78 % Arizona 5,161,586 5,259,750 3.34 % Wisconsin 4,940,698 5,031,797 3.19 % Idaho 4,393,532 4,389,086 2.79 % $ 158,022,677 $ 157,504,755 100.00 % The following is a summary of industry concentration of our investment portfolio as of December 31, 2022: % of Total Cost Fair Value Investments Services: Business $ 35,188,973 $ 35,046,444 22.25 % Capital Equipment 20,713,352 20,768,686 13.19 % Consumer Goods: Non-Durable 18,553,695 18,514,476 11.75 % Consumer Goods: Durable 13,741,132 13,680,426 8.69 % Media: Diversified & Production 9,977,695 9,971,437 6.33 % Healthcare & Pharmaceuticals 9,866,275 9,866,275 6.26 % Automotive 9,492,362 9,607,593 6.10 % High Tech Industries 8,455,439 8,399,480 5.33 % Chemicals, Plastics, & Rubber 7,490,771 7,351,701 4.67 % Construction & Building 7,348,309 7,195,856 4.57 % Retail 5,327,376 5,291,147 3.36 % Media: Broadcasting & Subscription 4,614,114 4,614,114 2.93 % Software 4,165,162 4,140,506 2.63 % Services: Consumer 3,088,022 3,056,614 1.94 % $ 158,022,677 $ 157,504,755 100.00 % The following provides quantitative information about Level 3 fair value measurements as of December 31, 2022: Description: Fair Value Valuation Technique Unobservable Inputs Range (Average) (1)(3) First lien debt $ 152,257,418 Income/Market HY credit spreads, -0.09% to 1.72% (1.06%) approach (2) Risk free rates 0.63% to 2.87% (1.47%) Market multiples 5.2x to 15.1x (10.0x) (4) Equity investments $ 5,247,337 Market approach (5) Underwriting multiple/ EBITDA Multiple 5.5x to 22.1x (10.4x) $ 157,504,755 (1) Weighted average based on fair value as of December 31, 2022. (2) Income approach is based on discounting future cash flows using an appropriate market yield. (3) The Company calculates the price of the loan by discounting future cash flows, which include forecasted future rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed, and the valuation date ranged from -0.09% ( -9 basis points) to 1.72% ( 172 basis points). The average of all changes was 1.06% ( 106 basis points). (4) Median of LTM (last twelve months) EBITDA multiples of comparable companies. (5) The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the EBITDA multiple (the “Multiple”). Significant increases (decreases) in the Multiple in isolation could result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 — COMMITMENTS AND CONTINGENCIES The Company is currently not subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations. As of December 31, 2022, the Company had $36,293,611 in unfunded debt commitments to 22 existing portfolio companies. As of December 31, 2022, we maintained sufficient liquidity (through cash on hand, its ability to drawdown capital from investors, and/or available borrowings under the Credit Facilities) to fund such unfunded commitments should the need arise. |
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL HIGHLIGHTS | |
FINANCIAL HIGHLIGHTS | NOTE 8 — FINANCIAL HIGHLIGHTS For the period from Commencement of Operations through December 31, 2022 Per Share Data: (1) Net asset value at beginning of period (2) $ 14.77 Net investment income 1.08 Change in unrealized depreciation on investments (0.14) Change in unrealized appreciation on foreign currency translations 0.01 Total from operations $ 0.95 Stockholder distributions from: Net investment income (1.11) Other (3) 0.03 Net asset value at end of period $ 14.64 Total return based on market value (4) 6.6 % Weighted average shares outstanding 3,869,643 Ratio/Supplemental Data: Net assets at end of period $ 80,262,957 Weighted average net assets $ 57,527,650 Annualized ratio of net operating expenses to weighted average net assets (5)(6) 6.87 % Annualized ratio of interest expense and other fees to weighted average net assets (6) 4.39 % Annualized ratio of net investment income to weighted average net assets (5)(6) 4.50 % Portfolio turnover (7) 13.88 % Credit Facilities payable $ 80,615,000 Short-term loan payable $ 11,250,000 Asset coverage ratio (8) 2.00x (1) Financial highlights are based on weighted average shares outstanding for the period. (2) The initial offering price of $15.00 per share less $0.23 per share of organization costs. (3) Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end. (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. Total return is not annualized. (5) Net of 3.75% from expenses reimbursed and fees waived by the Advisor. (6) The ratios reflect an annualized amount, except in the case of non-recurring expenses (e.g., organization costs of $3,534 for the period from Commencement of Operations through December 31, 2022). (7) Portfolio turnover is calculated as the lesser of purchases or sales and proceeds from sales and repayments of investments divided by average portfolio balance and is not annualized. (8) Asset coverage ratio is equal to total assets less all liabilities and indebtedness not represented by senior securities over the aggregate amount of the senior securities . |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2022 | |
CREDIT FACILITIES | |
CREDIT FACILITIES | NOTE 9 — CREDIT FACILITIES Commitment Facility On February 1, 2022, the Company entered into a revolving credit and security agreement with Signature Bank as subsequently amended (the “Commitment Facility”). On May 5, 2022, the Company entered into a First Amendment to Revolving Credit and Security Agreement (the “First Amendment”) by and between the Company, as the borrower and Signature Bank as the lender. The First Amendment increased the maximum commitment amount under the Commitment Facility from $50,000,000 to $75,000,000 on a committed basis. On June 17, 2022, the Company entered into a Second Amendment to Revolving Credit and Security Agreement (the “Second Amendment”) by and between the Company, as the borrower and Signature Bank, as the lender. The Second Amendment increased the maximum commitment amount under the Commitment Facility from $75,000,000 to $100,000,000 on a committed basis. The Commitment Facility was further amended by the Third Amendment to Revolving Credit and Security Agreement, dated July 19, 2022, and the Fourth Amendment to Revolving Credit and Security Agreement, dated September 7, 2022. Borrowings under the Commitment Facility bear interest, subject to the Company’s election, on a per annum basis equal to (i) one-month Term SOFR plus 1.80% plus a credit spread adjustment of 0.10% subject to a zero percent floor (ii) daily simple SOFR plus 1.80% plus a credit spread adjustment of 0.10% or (iii) (a) an alternate base rate based on the greatest of (I) the Prime Rate, (II) Federal Funds Rate plus 0.50% and (III) one-month Term SOFR plus 1.80%, minus (b) 0.80%. Interest is payable monthly in arrears. Any amounts borrowed under the Commitment Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on February 1, 2023. The Company's obligations to the lenders under the Commitment Facility are secured by investors' uncalled capital commitments, and the availability under the Commitment Facility is based on an advance rate for each investor's uncalled capital commitments. The Commitment Facility contains certain covenants, including but not limited to, maintaining an asset coverage ratio of at least 1.50 to 1.00. As of December 31, 2022, the Company was in compliance with these covenants. As of December 31, 2022, $80,615,000 was outstanding under the Commitment Facility. The carrying amount of the amount outstanding under the Commitment Facility approximates its fair value. The fair value of the Commitment Facility is determined in accordance with ASC Topic 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Commitment Facility is estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. The Company has incurred loan structure fees of $451,457 in connection with the current Commitment Facility, which are being amortized over the life of the facility. As of December 31, 2022, $44,678 of such prepaid loan structure fees had yet to be amortized. These prepaid loan structure fees are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the Commitment Facility payable. The following is a summary of the Commitment Facility, net of prepaid loan structure fees: December 31, 2022 Commitment Facility payable $ 80,615,000 Prepaid loan structure fees (44,678) Commitment Facility payable, net of prepaid loan structure fees $ 80,570,322 Interest is paid monthly in arrears. The following table summarizes the interest expense and amortized financing costs on the Commitment Facility for the year ended December 31, 2022: For the year ended December 31, 2022 Interest expense $ 1,653,774 Loan structure fees amortization 406,779 Total interest and other fees $ 2,060,553 Weighted average interest rate (1) 4.9 % Effective interest rate (including fee amortization) (1) 6.0 % Average debt outstanding (1) $ 37,222,440 Cash paid for interest and unused fees $ 1,237,868 (1) Calculated for the period from February 1, 2022, the date of the Commitment Facility, through December 31, 2022 . Credit Facility On September 30, 2022, the Company entered into a senior secured revolving credit agreement, as amended, that was amended on December 9, 2022 with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders (the "Credit Facility", and together with the Commitment Facility, the "Credit Facilities"). The September 2022 Credit Facility provides for borrowings up to a maximum of $130,000,000 on a committed basis with an accordion feature that allows the Company to increase the aggregate commitments up to $200,000,000, subject to new or existing lenders agreeing to participate in the increase and other customary conditions. The Credit Facility bears interest, subject to the Company’s election, on a per annum basis equal to (i) Term SOFR plus 2.50% (or 2.75% during certain periods in which the Company’s asset coverage ratio is equal to or below 1.90 to 1.00) plus a credit spread adjustment (0.10% for one-month Term SOFR and 0.15% for three-month Term SOFR), subject to a 0.25% floor, or (ii) 1.50% (or 1.75% during certain periods in which the Company’s asset coverage ratio is equal to or below 1.90 to 1.00) plus an alternate base rate, which is subject to a 3.00% floor, based on the highest of (a) the Prime Rate, (b) Federal Funds Rate plus 0.50% and (c) one-month Term SOFR plus a credit spread adjustment of 0.10% (subject to a 0.25% floor), plus 1.00%. The Company pays unused commitment fees of 0.50% per annum on the unused lender commitments under the Credit Facility. Interest is payable monthly or quarterly in arrears. The commitment to fund the revolver expires on September 30, 2026, after which the Company may no longer borrow under the Credit Facility and must begin repaying principal equal to 1/12 of the aggregate amount outstanding under the Credit Facility each month. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on September 30, 2027. Our obligations to the lenders under the Credit Facility are secured by a first priority security interest in its portfolio of securities and cash held. The Credit Facility contains certain covenants, including but not limited to: (i) maintaining a minimum liquidity test of at least $10,000,000, including cash, liquid investments and undrawn availability, (ii) maintaining an asset coverage ratio of at least 1.67 to 1.00, (iii) maintaining a certain minimum stockholder’s equity, and (iv) maintaining a minimum interest coverage ratio of at least 1.75 to 1.00. As of December 31, 2022, the Company was in compliance with these covenants. As of December 31, 2022, there was no outstanding balance under the Credit Facility. The carrying amount of the amount outstanding under the Credit Facility approximates its fair value. The fair value of the Credit Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Credit Facility is estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. The Company has incurred costs of $1,194,035 in connection with the current Credit Facility, which are being amortized over the life of the facility. As of December 31, 2022, $1,122,188 of such prepaid loan structure fees and administration fees had yet to be amortized, respectively. These prepaid loan fees are presented on our Consolidated Statements of Assets and Liabilities as a deduction from the debt liability. The following is a summary of the Credit Facility, net of prepaid loan structure fees: December 31, 2022 Credit Facility payable $ — Prepaid loan structure fees (1,122,188) Credit Facility payable, net of prepaid loan structure fees $ (1,122,188) Interest is paid monthly or quarterly in arrears based on the interest rate option selected. The following table summarizes the interest expense and amortized financing costs on the Credit Facility for the year ended December 31, 2022: For the year ended December 31, 2022 Interest expense $ 150,738 Loan structure fees amortization 71,847 Total interest and other fees $ 222,585 Weighted average interest rate (1) 55.4 % Effective interest rate (including fee amortization) (1) 81.8 % Average debt outstanding (1) $ 1,068,253 Cash paid for interest and unused fees $ 7,575 (1) Calculated for the period from September 30, 2022, the date of the Credit Facility, through December 31, 2022 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 — INCOME TAXES As of December 31, 2022, the Company had $277,935 of undistributed ordinary income. (1) Ordinary dividend distributions from a RIC do not qualify for the reduced maximum tax rate on qualified dividend income from domestic corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax character (2) December 31, 2022 Ordinary income $ 4,279,870 Total distributions paid to common stockholders $ 4,279,870 (1) The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, final taxable income earned in each period, and the undistributed ordinary income and capital gains for each period carried forward for distribution in the following period, may be different than this estimate. (2) Distributions of long-term capital gains of $0 as of December 31, 2022 differs from distributions of net capital gains on the Consolidated Statement of Changes in Net Assets because certain prepayment gains are characterized differently for tax reporting purposes. Listed below is a reconciliation of “Net increase in net assets resulting from operations” to taxable income and total distributions declared to common stockholders for the year ended December 31, 2022: 2022 Net increase in net assets resulting from operations (includes net investment income, realized gain (loss), unrealized appreciation (depreciation) and taxes) $ 3,681,779 Net change in unrealized depreciation 517,922 Pre-tax expense, loss reported at Taxable Subsidiary, not consolidated for tax purposes 35,596 Book income and tax income differences, including debt origination, interest accrual, income from pass-through investments, dividends, realized gains (losses) and changes in estimates 322,508 Estimated taxable income $ 4,557,805 Taxable income earned prior to period end and carried forward (277,935) Total distributions accrued or paid to common stockholders $ 4,279,870 The aggregate gross unrealized appreciation and depreciation, the net unrealized appreciation, and the aggregate cost of the Company’s portfolio company securities for U.S. federal income tax purposes as of December 31, 2022 were as follows: 2022 Aggregate cost of portfolio company securities $ 158,022,677 Gross unrealized appreciation of portfolio company securities 550,229 Gross unrealized depreciation of portfolio company securities (1,089,112) Gross unrealized appreciation on foreign currency translations of portfolio company securities 20,961 Aggregate fair value of portfolio company securities $ 157,504,755 The Company has recorded a tax reclassification of stockholders’ equity in accordance with U.S. GAAP to reduce paid-in capital and increases distributable earnings (increasing accumulated undistributed investment income) for book to tax differences that it has determined to be permanent. For the year ended December 31, 2022, this reclassification was $388,214. The total adjustment on the Statement of Assets and Liabilities as of December 31, 2022 was $388,214. There was no such adjustment as of December 31, 2021. Although the Company files federal and state tax returns, its major tax jurisdiction is federal. The 2021 federal tax years for the Company remain subject to examination by the Internal Revenue Service. |
SENIOR SECURITIES
SENIOR SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
SENIOR SECURITIES | |
SENIOR SECURITIES | NOTE 11 — SENIOR SECURITIES Information about the Company’s senior securities is shown in the following table for the year ended December 31, 2022. Outstanding Involuntary Exclusive of Asset Liquidating Average Treasury Coverage per Preference Market Value Class and Year Securities (1) Unit (2) per Unit (3) per Unit (4) (In thousands, except per unit amounts) Commitment Facility Year ended December 31, 2022 $ 80,615 $ 2,000 — N/A Credit Facility Year ended December 31, 2022 $ — $ 2,000 — N/A (1) Total amount of senior securities outstanding at the end of the period presented. (2) Asset coverage per unit is the ratio of the carrying value of the Company’s total assets, less all liabilities and indebtedness not represented by senior securities, in relation to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. (3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities. (4) Average market value per unit for our Commitment Facility and Credit Facility are not applicable as these are not registered for public trading. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12 — SUBSEQUENT EVENTS Investment Portfolio The Company invested in the following portfolio companies subsequent to December 31, 2022: Activity Type Date Company Name Company Description Investment Amount Instrument Type New Investment January 31, 2023 Red's All Natural, LLC Premium frozen food manufacturer $ 4,900,742 Senior Secured – First Lien $ 318,998 Equity Credit Facilities On February 1, 2023, the Company entered into a Fifth Amendment to the Revolving Credit and Security Agreement (the “Fifth Amendment”) by and between the Company, as the borrower and Signature Bank, as the lender. The Fifth Amendment amends the Commitment Facility, as previously amended by the Fourth Amendment to the Revolving Credit and Security Agreement dated September 7, 2022. The Fifth Amendment decreased the maximum commitment amount under the Commitment Facility from $100,000,000 to $50,000,000 on a committed basis and extended the maturity of the Commitment Facility from February 1, 2023 to December 31, 2023. As of March 3, 2023, the outstanding balance under the Commitment Facility was $45,000,000 and the outstanding balance under the Credit Facility was $42,000,000. |
NATURE OF OPERATIONS AND SIGN_2
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. GAAP and pursuant to the requirements for reporting on Form 10-K and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, certain disclosures accompanying the annual financial statements prepared in accordance with U.S. GAAP are omitted. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. In the opinion of management, the consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the periods included herein. Certain reclassifications have been made to certain prior period balances to conform with current presentation. In accordance with Regulation S-X under the Exchange Act, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars. |
COVID 19 Developments | COVID-19 Developments The effect on the U.S. and global economy of the ongoing pandemic caused by the novel coronavirus, SARS-CoV-2 (also referred to as “COVID-19” or “Coronavirus”), uncertainty relating to new variants of the Coronavirus that have emerged in the United States and globally, vaccine distribution, hesitancy and efficacy, the length of economic recovery, and policies of the U.S. presidential administration have created stress on the market and could affect our portfolio companies. Each portfolio company has been assessed on an individual basis to identify the impact of the COVID-19 pandemic on the valuation of our investments in such company. We believe that any such COVID-19 pandemic impacts have been reflected in the valuation of our investments. The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on our future net investment income, the fair value of our portfolio investments and our financial condition. |
Economic Developments | Economic Developments Economic activity has continued to accelerate across sectors and regions. Nonetheless, we have observed and continue to observe supply chain interruptions, labor resource shortages, commodity inflation, rising interest rates, economic sanctions in response to international conflicts and instances of geopolitical, economic and financial market instability in the United States and abroad. One or more of these factors may contribute to increased market volatility and may have long- and short-term effects in the United States and worldwide financial markets. |
Portfolio Investment Classification | Portfolio Investment Classification The Company classifies its portfolio investments in accordance with the requirements of the 1940 Act as follows: (a) “Control Investments” are defined as investments in which the Company owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which the Company owns between 5% and 25% of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) “Non-controlled, non-affiliate investments” are defined as investments that are neither Control Investments or Affiliate Investments. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2022, cash balances totaling $4,988 did not exceed Federal Deposit Insurance Corporation insurance protection levels of $250,000. As of December 31, 2022, the Company held $15,464,835 of cash equivalents, $12,500,000 of which was held in 10-day Cash consists of bank demand deposits. We deem certain U.S. Treasury Bills and other high-quality, short-term debt securities as cash equivalents. All of the Company's cash deposits are held at large established high credit quality financial institutions and management believes that risk of loss associated with any uninsured balances is remote. |
Fair Value Measurements | Fair Value Measurements We account for all of our financial instruments at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures The COVID-19 pandemic is an unprecedented circumstance that could materially impact the fair value of the Company’s investments. The COVID-19 pandemic may also impact the Company’s portfolio companies’ ability to pay their respective contractual obligations, including principal and interest due to the Company, and some portfolio companies could require interest or principal deferrals to fulfill short-term liquidity needs. The Company works with each of its portfolio companies, as necessary, to help them access short-term liquidity through potential interest deferrals, funding on unused lines of credit, and other sources of liquidity. During the year ended December 31, 2022, no interest deferrals have been made related to COVID-19 or otherwise. |
Consolidation | Consolidation As permitted under Regulation S-X under the Exchange Act and ASC Topic 946, we generally do not consolidate our investment in a portfolio company other than an investment company subsidiary. However, we consolidated the results of the Taxable Subsidiary. All intercompany balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Statements of Assets and Liabilities in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs consists of prepaid loan structure fees and expenses paid in connection with the closing of our Credit Facilities and are capitalized at the time of payment. These costs are amortized using the straight line method over the term of the respective instrument and presented as an offset to the corresponding debt on the Consolidated Statements of Assets and Liabilities. |
Organizational Costs | Organizational Costs Organizational costs include costs relating to the formation and incorporation of the Company, which generally include legal fees. These costs are expensed as incurred. |
Deferred Offering Costs | Deferred Offering Costs Costs associated with the offering of common shares of beneficial interest of the Company are capitalized as deferred offering expenses and included on the Statements of Assets and Liabilities and amortized over a twelve-month period from Commencement of Operations. These expenses include legal, accounting, printing fees and other related expenses and costs incurred in connection with preparing the offering documents relating to the Private Offering. |
Investments | Investments In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC has rescinded previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and have a compliance date of September 8, 2022. While our Board of Trustees has not elected to designate the Advisor as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order to comply with the applicable requirements of Rule 2a-5 and Rule 31a-4. As a BDC, the Company will generally invest in illiquid loans and securities including debt and equity securities of private middle-market companies. Section 2(a)(41)of the 1940 Act requires that a BDC value its assets as follows: (i) the third party price for securities for which a quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith by a BDC's Board of Trustees. Under procedures established by our Board, the Company intends to value investments for which market quotations are readily available at such market quotations. The Company will obtain these market values from an independent pricing service or at the midpoint of the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). Debt and equity securities that are not publicly traded or whose market prices are not readily available will be valued at fair value as determined in good faith by our Board. Such determination of fair values may involve subjective judgments and estimates. The Company also engages independent valuation providers to review the valuation of each portfolio investment that does not have a readily available market quotation at least twice annually. Debt and equity investments purchased within approximately 90 days of the valuation date will be valued at cost, plus accreted discount, or minus amortized premium, which approximates fair value. With respect to unquoted securities, our Board will value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Board will use the pricing indicated by the external event to corroborate and/or assist us in its valuation. Because the Company expects that there will not be a readily available market quotation for many of the investments in its portfolio, the Company expects to value most of its portfolio investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. In following these approaches, the types of factors that will be taken into account in fair value pricing investments will include, as relevant, but not be limited to: ● available current market data, including relevant and applicable market trading and transaction comparables; ● applicable market yields and multiples; ● financial covenants; ● call protection provisions; ● information rights; ● the nature and realizable value of any collateral; ● the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business; ● comparisons of financial ratios of peer companies that are public; ● comparable merger and acquisition transactions; and ● the principal market and enterprise values . |
Revenue Recognition | Revenue Recognition We record interest income on an accrual basis to the extent such interest is deemed collectible. Payment-in-kind (“PIK”) interest, represents contractual interest accrued and added to the loan balance that generally becomes due at maturity. We will not accrue any form of interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount and market discount or premium are capitalized, and we then accrete or amortize such amounts using the effective interest method as interest income. Upon the prepayment of a loan or debt security, any unamortized loan origination fee is recorded as interest income. We record prepayment premiums on loans and debt securities as other income. Dividend income, if any, will be recognized on the declaration date. A presentation of the interest income we have received from portfolio companies for the year ended December 31, 2022 is as follows: For the year ended December 31, 2022 Loan interest $ 7,288,643 Fee amortization income (1) 407,489 Fee income acceleration (2) 108,651 Total Interest Income $ 7,804,783 (1) Includes amortization of fees on unfunded commitments. (2) Unamortized loan origination fees recognized upon full or partial realization of investment. |
Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation | Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation Realized gains or losses are measured by the difference between the net proceeds from the repayment, sale or disposition and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. |
Investment Transaction Costs | Investment Transaction Costs Costs that are material associated with an investment transaction, including legal expenses, are included in the cost basis of purchases and deducted from the proceeds of sales unless such costs are reimbursed by the borrower. |
Receivables and Payables for Unsettled Securities Transaction | Receivables and Payables for Unsettled Securities Transaction The Company records all investments on a trade date basis. |
U.S. Federal Income Taxes | U.S. Federal Income Taxes The Company qualifies and intends to elect to be treated as a RIC under Subchapter M of the Code, and to operate in a manner to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, among other things, the Company is required to timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, for each year. So long as the Company maintains its status as a RIC, it generally will not be subject to U.S. federal income tax on any ordinary income or capital gains that it distributes at least annually to its shareholders as dividends. Rather, any tax liability related to income earned by the Company represents obligations of the Company’s investors and will not be reflected in the consolidated financial statements of the Company. To avoid a 4% U.S federal excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its net capital gains for the one-year period ending December 31, and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no federal income tax or the Excise Tax Avoidance Requirement. For this purpose, however, any net ordinary income or capital gain net income retained by us that is subject to corporate income tax for the tax year ending in that calendar year will be considered to have been distributed by year end (or earlier if estimated taxes are paid). The Company, at its discretion, may choose not to distribute all its taxable income for the calendar year and pay a non-deductible 4% excise tax on this income. If the Company chooses to do so, all other things being equal, this would increase expenses and reduce the amount of cash available to be distributed to shareholders. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, the Company accrues excise taxes on estimated excess taxable income as taxable income is earned. As of December 31, 2022, the Company estimates that it has $186,776 of undistributed taxable income that was carried forward toward distributions to be paid in 2023. Current income tax expense for the year ended December 31, 2022 of $7,471 is related to federal excise taxes. The Company evaluates tax positions taken or expected to be taken while preparing its tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the applicable period. As of December 31, 2022, the Company had not recorded a liability for any uncertain tax positions. Management’s evaluation of uncertain tax positions may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. The Company’s policy is to include interest and penalties related to income taxes, if applicable, in general and administrative expenses. There were no such expenses for the year ended December 31, 2022. The Taxable Subsidiary is a direct wholly-owned subsidiary of the Company that has elected to be a treated as a corporation for U.S. federal income tax purposes, and as a result, the income of the Taxable Subsidiary is subject to U.S. federal income tax at corporate rates . The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies that are “pass through” entities for U.S. federal income tax purposes and continue to comply with the “source-of-income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities The Taxable Subsidiary uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized. For the year ended December 31, 2022, the Company had no deferred tax assets or liabilities |
Earnings per Share | Earnings per Share Basic per share calculations are computed utilizing the weighted average number of common shares of beneficial interest outstanding for the period. The Company has no common share of beneficial interest equivalents. As a result, there is no difference between diluted earnings per share and basic per share amounts. |
Paid In Capital | Paid In Capital The Company records the proceeds from the sale of its common shares of beneficial interest on a net basis to (i) capital stock and (ii) paid in capital in excess of par value, excluding all commissions and marketing support fees. |
Distributable Earnings | Distributable Earnings The components that make up total distributable loss on the Statements of Assets and Liabilities as of December 31, 2022 is as follows: December 31, 2022 December 31, 2021 Accumulated net realized gain from investments $ 1,950 $ — Net unrealized depreciation on non-controlled non-affiliated investments and cash equivalents (538,883) — Net unrealized appreciation on foreign currency translations 20,961 — Accumulated undistributed net investment loss (226,750) (532,845) Total distributable loss $ (742,722) $ (532,845) |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. The Company has agreements that have the London Interbank Offered Rate (“LIBOR”) as a reference rate with certain portfolio companies and with certain lenders. Many of these agreements include language for choosing an alternative successor rate, such as SOFR (as defined below), if LIBOR reference is no longer considered to be appropriate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The Company adopted this amendment in February 2022 and plans to apply the amendments in this update to account for contract modifications as contracts are amended to include a new reference rate or when LIBOR reference is no longer used. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the year ended December 31, 2022. From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. We believe the impact of the recently issued standards and any that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. |
NATURE OF OPERATIONS AND SIGN_3
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of interest income received from portfolio companies | For the year ended December 31, 2022 Loan interest $ 7,288,643 Fee amortization income (1) 407,489 Fee income acceleration (2) 108,651 Total Interest Income $ 7,804,783 (1) Includes amortization of fees on unfunded commitments. (2) Unamortized loan origination fees recognized upon full or partial realization of investment. |
Schedule of accumulated undistributed deficit | December 31, 2022 December 31, 2021 Accumulated net realized gain from investments $ 1,950 $ — Net unrealized depreciation on non-controlled non-affiliated investments and cash equivalents (538,883) — Net unrealized appreciation on foreign currency translations 20,961 — Accumulated undistributed net investment loss (226,750) (532,845) Total distributable loss $ (742,722) $ (532,845) |
RELATED PARTY ARRANGEMENTS (Tab
RELATED PARTY ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY ARRANGEMENTS | |
Schedule of expenses reimbursed by the Advisor | For the Three Amount Subject Amount Balance Subject Date of Months Ended to Recoupment Recouped to Recoupment Expiration March 31, 2022 $ 157,933 $ — $ 157,933 March 31, 2025 June 30, 2022 87,423 — 87,423 June 30, 2025 September 30, 2022 79,475 — 79,475 September 30, 2025 December 31, 2022 63,511 — 63,511 December 31, 2025 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DISTRIBUTIONS | |
Schedule of aggregate distributions | Date Declared Record Date Payment Date Per Share Fiscal 2022 August 4, 2022 August 11, 2022 August 31, 2022 $ 0.21 November 3, 2022 November 4, 2022 November 10, 2022 $ 0.33 December 27, 2022 December 30, 2022 January 13, 2023 $ 0.33 Total $ 0.87 |
EQUITY OFFERINGS AND RELATED _2
EQUITY OFFERINGS AND RELATED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EQUITY OFFERINGS AND RELATED EXPENSES | |
Summary of number of common stock shares issued through various equity offerings and pursuant to DRIP | Organizational Offering Common Shares Number of Gross Expense Net Price Type of Common Shares Issuance Issuance Date Shares Proceeds Allocation (1) Proceeds (2) Per Share Capital draw down January 31, 2022 2,333,334 $ 35,000,000 $ — $ 35,000,000 $ 15.00 Capital draw down May 11, 2022 1,355,013 20,000,000 — 20,000,000 14.76 Capital draw down August 30, 2022 1,358,696 20,000,000 — 20,000,000 14.72 Dividend reinvestment August 31, 2022 294 4,328 — 4,328 14.72 Immediate share issuance September 27, 2022 91,403 1,345,451 4,549 1,350,000 14.72 Immediate share issuance November 7, 2022 342,037 4,983,487 16,513 5,000,000 14.57 Dividend reinvestment November 10, 2022 2,656 39,565 — 39,565 14.90 Total 5,483,433 $ 81,372,831 $ 21,062 $ 81,393,893 (1) Pro rata expense of organizational and offering costs incurred by the Company in connection with the Company’s formation and offerings. The Organizational Expense Allocation represents a reduction to capital commitments to investors subsequent to the initial closing. (2) Net Proceeds per this equity table will differ from the Statement of Assets and Liabilities as of December 31, 2022, in the amount of $388,214 , which represents a tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles. This reclassification reduces paid-in capital and increases distributable earnings (increasing accumulated undistributed net investment income). |
NET INCREASE IN NET ASSETS PE_2
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST | |
Schedule of computation of net decrease in net assets resulting from operations per common share of beneficial interest | For the For the year ended year ended December 31, 2022 December 31, 2021 Net increase (decrease) in net assets resulting from operations $ 3,681,779 $ (532,845) Weighted average common shares of beneficial interest 3,869,643 N/A Net increase from operations per share $ 0.95 $ N/A |
PORTFOLIO INVESTMENTS AND FAI_2
PORTFOLIO INVESTMENTS AND FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PORTFOLIO INVESTMENTS AND FAIR VALUE | |
Schedule of total fair value and cost of investments | Cost Fair Value Senior Secured – First Lien (1) $ 152,825,940 $ 152,257,418 Equity 5,196,737 5,247,337 Total Investments $ 158,022,677 $ 157,504,755 (1) Includes unitranche investments, which may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” portion of the unitranche loans which account for 3.9% of our portfolio at fair value. |
Schedule of aggregate gross unrealized appreciation and depreciation and aggregate cost and fair value of portfolio company securities | December 31, 2022 Aggregate cost of portfolio company securities $ 158,022,677 Gross unrealized appreciation of portfolio company securities 550,229 Gross unrealized depreciation of portfolio company securities (1,089,112) Gross unrealized appreciation on foreign currency translation 20,961 Aggregate fair value of portfolio company securities $ 157,504,755 |
Schedule of fair values of investments disaggregated into three levels of fair value hierarchy | Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total Senior Secured – First Lien (1) $ — $ — $ 152,257,418 $ 152,257,418 Equity — — 5,247,337 5,247,337 Total Investments $ — $ — $ 157,504,755 $ 157,504,755 |
Schedule of aggregate values of Level 3 portfolio investments change | Senior Secured Loans-First Lien Equity Total Fair value at beginning of period $ — $ — $ — Purchases of investments 163,129,279 5,196,737 168,326,016 Sales and Redemptions (10,501,404) — (10,501,404) Change in unrealized (depreciation) appreciation on investments included in earnings (568,522) 29,639 (538,883) Change in unrealized appreciation on foreign currency translation included in earnings — 20,961 20,961 Amortization of premium and accretion of discount, net 198,065 — 198,065 Fair value at end of period $ 152,257,418 $ 5,247,337 $ 157,504,755 |
Summary of geographical concentration of investment portfolio | % of Total Cost Fair Value Investments Texas $ 41,689,874 $ 41,670,626 26.46 % Florida 25,824,710 25,639,155 16.28 % New York 23,971,538 23,990,132 15.23 % Illinois 13,199,633 12,899,144 8.19 % United Kingdom 9,977,695 9,971,437 6.33 % Michigan 9,492,362 9,607,593 6.10 % Washington 6,892,968 6,750,961 4.29 % Indiana 6,384,015 6,339,226 4.02 % Maryland 6,094,066 5,955,848 3.78 % Arizona 5,161,586 5,259,750 3.34 % Wisconsin 4,940,698 5,031,797 3.19 % Idaho 4,393,532 4,389,086 2.79 % $ 158,022,677 $ 157,504,755 100.00 % |
Summary of industry concentration of investment portfolio | % of Total Cost Fair Value Investments Services: Business $ 35,188,973 $ 35,046,444 22.25 % Capital Equipment 20,713,352 20,768,686 13.19 % Consumer Goods: Non-Durable 18,553,695 18,514,476 11.75 % Consumer Goods: Durable 13,741,132 13,680,426 8.69 % Media: Diversified & Production 9,977,695 9,971,437 6.33 % Healthcare & Pharmaceuticals 9,866,275 9,866,275 6.26 % Automotive 9,492,362 9,607,593 6.10 % High Tech Industries 8,455,439 8,399,480 5.33 % Chemicals, Plastics, & Rubber 7,490,771 7,351,701 4.67 % Construction & Building 7,348,309 7,195,856 4.57 % Retail 5,327,376 5,291,147 3.36 % Media: Broadcasting & Subscription 4,614,114 4,614,114 2.93 % Software 4,165,162 4,140,506 2.63 % Services: Consumer 3,088,022 3,056,614 1.94 % $ 158,022,677 $ 157,504,755 100.00 % |
Schedule of quantitative information about Level 3 fair value measurements | Description: Fair Value Valuation Technique Unobservable Inputs Range (Average) (1)(3) First lien debt $ 152,257,418 Income/Market HY credit spreads, -0.09% to 1.72% (1.06%) approach (2) Risk free rates 0.63% to 2.87% (1.47%) Market multiples 5.2x to 15.1x (10.0x) (4) Equity investments $ 5,247,337 Market approach (5) Underwriting multiple/ EBITDA Multiple 5.5x to 22.1x (10.4x) $ 157,504,755 (1) Weighted average based on fair value as of December 31, 2022. (2) Income approach is based on discounting future cash flows using an appropriate market yield. (3) The Company calculates the price of the loan by discounting future cash flows, which include forecasted future rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed, and the valuation date ranged from -0.09% ( -9 basis points) to 1.72% ( 172 basis points). The average of all changes was 1.06% ( 106 basis points). (4) Median of LTM (last twelve months) EBITDA multiples of comparable companies. (5) The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the EBITDA multiple (the “Multiple”). Significant increases (decreases) in the Multiple in isolation could result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach. |
FINANCIAL HIGHLIGHTS (Tables)
FINANCIAL HIGHLIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL HIGHLIGHTS | |
Schedule of financial highlight | For the period from Commencement of Operations through December 31, 2022 Per Share Data: (1) Net asset value at beginning of period (2) $ 14.77 Net investment income 1.08 Change in unrealized depreciation on investments (0.14) Change in unrealized appreciation on foreign currency translations 0.01 Total from operations $ 0.95 Stockholder distributions from: Net investment income (1.11) Other (3) 0.03 Net asset value at end of period $ 14.64 Total return based on market value (4) 6.6 % Weighted average shares outstanding 3,869,643 Ratio/Supplemental Data: Net assets at end of period $ 80,262,957 Weighted average net assets $ 57,527,650 Annualized ratio of net operating expenses to weighted average net assets (5)(6) 6.87 % Annualized ratio of interest expense and other fees to weighted average net assets (6) 4.39 % Annualized ratio of net investment income to weighted average net assets (5)(6) 4.50 % Portfolio turnover (7) 13.88 % Credit Facilities payable $ 80,615,000 Short-term loan payable $ 11,250,000 Asset coverage ratio (8) 2.00x (1) Financial highlights are based on weighted average shares outstanding for the period. (2) The initial offering price of $15.00 per share less $0.23 per share of organization costs. (3) Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end. (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. Total return is not annualized. (5) Net of 3.75% from expenses reimbursed and fees waived by the Advisor. (6) The ratios reflect an annualized amount, except in the case of non-recurring expenses (e.g., organization costs of $3,534 for the period from Commencement of Operations through December 31, 2022). (7) Portfolio turnover is calculated as the lesser of purchases or sales and proceeds from sales and repayments of investments divided by average portfolio balance and is not annualized. (8) Asset coverage ratio is equal to total assets less all liabilities and indebtedness not represented by senior securities over the aggregate amount of the senior securities . |
CREDIT FACILITIES (Tables)
CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitment Facility | |
Line of Credit Facility [Line Items] | |
Summary of credit facilities | December 31, 2022 Commitment Facility payable $ 80,615,000 Prepaid loan structure fees (44,678) Commitment Facility payable, net of prepaid loan structure fees $ 80,570,322 |
Summary of interest expense and amortized financing costs on credit facility | For the year ended December 31, 2022 Interest expense $ 1,653,774 Loan structure fees amortization 406,779 Total interest and other fees $ 2,060,553 Weighted average interest rate (1) 4.9 % Effective interest rate (including fee amortization) (1) 6.0 % Average debt outstanding (1) $ 37,222,440 Cash paid for interest and unused fees $ 1,237,868 |
Senior Secured Revolving Credit Agreement | |
Line of Credit Facility [Line Items] | |
Summary of credit facilities | December 31, 2022 Credit Facility payable $ — Prepaid loan structure fees (1,122,188) Credit Facility payable, net of prepaid loan structure fees $ (1,122,188) |
Summary of interest expense and amortized financing costs on credit facility | Interest is paid monthly or quarterly in arrears based on the interest rate option selected. The following table summarizes the interest expense and amortized financing costs on the Credit Facility for the year ended December 31, 2022: For the year ended December 31, 2022 Interest expense $ 150,738 Loan structure fees amortization 71,847 Total interest and other fees $ 222,585 Weighted average interest rate (1) 55.4 % Effective interest rate (including fee amortization) (1) 81.8 % Average debt outstanding (1) $ 1,068,253 Cash paid for interest and unused fees $ 7,575 (1) Calculated for the period from September 30, 2022, the date of the Credit Facility, through December 31, 2022 . |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of distributions paid | December 31, 2022 Ordinary income $ 4,279,870 Total distributions paid to common stockholders $ 4,279,870 (1) The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, final taxable income earned in each period, and the undistributed ordinary income and capital gains for each period carried forward for distribution in the following period, may be different than this estimate. (2) Distributions of long-term capital gains of $0 as of December 31, 2022 differs from distributions of net capital gains on the Consolidated Statement of Changes in Net Assets because certain prepayment gains are characterized differently for tax reporting purposes. |
Schedule of reconciliation to taxable income and distributions declared | 2022 Net increase in net assets resulting from operations (includes net investment income, realized gain (loss), unrealized appreciation (depreciation) and taxes) $ 3,681,779 Net change in unrealized depreciation 517,922 Pre-tax expense, loss reported at Taxable Subsidiary, not consolidated for tax purposes 35,596 Book income and tax income differences, including debt origination, interest accrual, income from pass-through investments, dividends, realized gains (losses) and changes in estimates 322,508 Estimated taxable income $ 4,557,805 Taxable income earned prior to period end and carried forward (277,935) Total distributions accrued or paid to common stockholders $ 4,279,870 |
Schedule of aggregate gross unrealized appreciation and depreciation and aggregate cost and fair value of portfolio company securities | 2022 Aggregate cost of portfolio company securities $ 158,022,677 Gross unrealized appreciation of portfolio company securities 550,229 Gross unrealized depreciation of portfolio company securities (1,089,112) Gross unrealized appreciation on foreign currency translations of portfolio company securities 20,961 Aggregate fair value of portfolio company securities $ 157,504,755 |
SENIOR SECURITIES (Tables)
SENIOR SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SENIOR SECURITIES | |
Schedule of Senior Securities | Outstanding Involuntary Exclusive of Asset Liquidating Average Treasury Coverage per Preference Market Value Class and Year Securities (1) Unit (2) per Unit (3) per Unit (4) (In thousands, except per unit amounts) Commitment Facility Year ended December 31, 2022 $ 80,615 $ 2,000 — N/A Credit Facility Year ended December 31, 2022 $ — $ 2,000 — N/A (1) Total amount of senior securities outstanding at the end of the period presented. (2) Asset coverage per unit is the ratio of the carrying value of the Company’s total assets, less all liabilities and indebtedness not represented by senior securities, in relation to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. (3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities. (4) Average market value per unit for our Commitment Facility and Credit Facility are not applicable as these are not registered for public trading. |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
Schedule of investment portfolio | Activity Type Date Company Name Company Description Investment Amount Instrument Type New Investment January 31, 2023 Red's All Natural, LLC Premium frozen food manufacturer $ 4,900,742 Senior Secured – First Lien $ 318,998 Equity |
NATURE OF OPERATIONS AND SIGN_4
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) - USD ($) | 12 Months Ended | |||||
Nov. 07, 2022 | Sep. 27, 2022 | Aug. 30, 2022 | May 11, 2022 | Jan. 31, 2022 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Issuance of common shares of beneficial interest (in shares) | 2,333,334 | 5,483,433 | ||||
Proceeds from issuance of common shares of beneficial interest | $ 35,000,000 | $ 81,393,893 | ||||
Proceeds from contributed capital | 81,350,000 | |||||
Capital Draw Down | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Issuance of common shares of beneficial interest (in shares) | 1,358,696 | 1,355,013 | 2,333,334 | |||
Proceeds from issuance of common shares of beneficial interest | $ 20,000,000 | $ 20,000,000 | $ 35,000,000 | 75,000,000 | ||
Immediate Share Issuance | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Issuance of common shares of beneficial interest (in shares) | 342,037 | 91,403 | ||||
Proceeds from issuance of common shares of beneficial interest | $ 5,000,000 | $ 1,350,000 | $ 6,350,000 |
NATURE OF OPERATIONS AND SIGN_5
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Cash and Cash Equivalents [Line Items] | |
FDIC insured amount | $ 4,988 |
Cash equivalents | $ 15,464,835 |
Maturity period of US treasury bills | 10 days |
Cash margin | $ 1,000,000 |
Proceeds from short-term loan | $ 11,250,000 |
Accrued interest rate (as a percent) | 6.50% |
Interest expense related to short-term loan | $ 29,563 |
Raymond James Financial, Inc. | |
Cash and Cash Equivalents [Line Items] | |
Proceeds from short-term loan | 11,500,000 |
U.S. Treasury Bills 10 Days Maturity Period | |
Cash and Cash Equivalents [Line Items] | |
Cash equivalents | $ 12,500,000 |
NATURE OF OPERATIONS AND SIGN_6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |
Loan interest | $ 7,288,643 |
Fee amortization income | 407,489 |
Fee income acceleration | 108,651 |
Total Interest Income | $ 7,804,783 |
NATURE OF OPERATIONS AND SIGN_7
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - U.S. Federal Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |
Undistributed earnings | $ 186,776 |
Current income tax expense | 7,471 |
Interest expense and penalties | 0 |
Deferred tax assets | 0 |
Deferred tax liabilities | $ 0 |
NATURE OF OPERATIONS AND SIGN_8
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Distributable Earnings (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ||
Accumulated net realized gain from investments | $ 1,950 | |
Net unrealized depreciation on non-controlled non-affiliated investments and cash equivalents | (538,883) | |
Net unrealized appreciation on foreign currency translations | 20,961 | |
Accumulated undistributed net investment loss | (226,750) | $ (532,845) |
Total distributable loss | $ (742,722) | $ (532,845) |
RELATED PARTY ARRANGEMENTS - In
RELATED PARTY ARRANGEMENTS - Investment Advisory Agreement (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Management fees | $ 1,335,054 |
Advisory Agreement | |
Related Party Transaction [Line Items] | |
Base management fee (as a percent) | 1.50% |
Base management fee waived (as a percent) | 1% |
Management fees | $ 1,335,054 |
RELATED PARTY ARRANGEMENTS - _2
RELATED PARTY ARRANGEMENTS - Income-Based Incentive Fee (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Accrued income incentive fees | $ 686,398 |
Income based incentive fee waived | $ 228,800 |
Percentage of income based incentive fee waived | 5% |
Accrued income incentive fees | $ 21,644 |
Excess of 1.5% | |
Related Party Transaction [Line Items] | |
Pre-incentive fee NII prior to listing (as a percent) | 1.50% |
Total pre-incentive fee NII prior to listing (as a percent) | 100% |
Pre-incentive fee NII subsequent to listing (as a percent) | 1.50% |
Total pre-incentive fee NII subsequent to listing (as a percent) | 100% |
Excess of 1.6667% | |
Related Party Transaction [Line Items] | |
Pre-incentive fee NII prior to listing (as a percent) | 1.6667% |
Total pre-incentive fee NII prior to listing (as a percent) | 10% |
Pre-incentive fee NII subsequent to listing (as a percent) | 1.6667% |
Total pre-incentive fee NII subsequent to listing (as a percent) | 10% |
Excess of 1.7647% | |
Related Party Transaction [Line Items] | |
Pre-incentive fee NII subsequent to listing (as a percent) | 1.7647% |
Total pre-incentive fee NII subsequent to listing (as a percent) | 15% |
Equals 1.6667% | |
Related Party Transaction [Line Items] | |
Pre-incentive fee NII prior to listing (as a percent) | 1.6667% |
Total pre-incentive fee NII prior to listing (as a percent) | 10% |
Annualized hurdle rate prior to listing (as a percent) | 6.6667% |
Equals 1.7647% | |
Related Party Transaction [Line Items] | |
Pre-incentive fee NII subsequent to listing (as a percent) | 1.7647% |
Total pre-incentive fee NII subsequent to listing (as a percent) | 15% |
Annualized hurdle rate subsequent to listing (as a percent) | 7.00588% |
RELATED PARTY ARRANGEMENTS - Ca
RELATED PARTY ARRANGEMENTS - Capital Gains Incentive Fee (Details) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY ARRANGEMENTS | |
Capital gains incentive fee prior to listing (as a percent) | 10% |
Capital gains incentive fee subsequent to listing (as a percent) | 15% |
RELATED PARTY ARRANGEMENTS - Ex
RELATED PARTY ARRANGEMENTS - Expense Support and Conditional Reimbursement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
RELATED PARTY ARRANGEMENTS | |||||
Basis points to be maintained per quarter | 12.50% | ||||
Basis points to be maintained per annum | 50% | ||||
Expense reimbursements | $ 388,342 | ||||
Recoupment term (in years) | 3 years | ||||
Amount subject to recoupment | $ 63,511 | $ 79,475 | $ 87,423 | $ 157,933 | |
Balance subject to recoupment | $ 63,511 | $ 79,475 | $ 87,423 | $ 157,933 |
RELATED PARTY ARRANGEMENTS - Tr
RELATED PARTY ARRANGEMENTS - Trustees' Fees (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
RELATED PARTY ARRANGEMENTS | ||
Annual board retainer fees paid | $ 50,000 | |
Additional annual board retainer fees paid | 10,000 | |
Trustee's fee expense | $ 42,000 | 158,000 |
Trustee's fees payable | $ 42,000 | $ 0 |
RELATED PARTY ARRANGEMENTS - Ad
RELATED PARTY ARRANGEMENTS - Administration Agreement (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Due to affiliate | $ 460,085 | |
Administration Agreement | Stellus Capital | ||
Related Party Transaction [Line Items] | ||
Initial term (in years) | 2 years | |
Termination period | 60 days | |
Administrative services expenses | $ 140,534 | |
Due to affiliate | $ 51,737 |
DISTRIBUTIONS - Additional Info
DISTRIBUTIONS - Additional Information (Details) - $ / shares | 12 Months Ended | 13 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
DISTRIBUTIONS | ||
Dividend per share | $ 0.87 | $ 0.87 |
Shares issued through DRIP | 2,950 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | 13 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Dividends Payable [Line Items] | ||
Per Share | $ 0.87 | $ 0.87 |
4-Aug-2022 | ||
Dividends Payable [Line Items] | ||
Date Declared | Aug. 04, 2022 | |
Record Date | Aug. 11, 2022 | |
Payment Date | Aug. 31, 2022 | |
Per Share | $ 0.21 | |
3-Nov-2022 | ||
Dividends Payable [Line Items] | ||
Date Declared | Nov. 03, 2022 | |
Record Date | Nov. 04, 2022 | |
Payment Date | Nov. 10, 2022 | |
Per Share | $ 0.33 | |
27-Dec-2022 | ||
Dividends Payable [Line Items] | ||
Date Declared | Dec. 27, 2022 | |
Record Date | Dec. 30, 2022 | |
Payment Date | Jan. 13, 2023 | |
Per Share | $ 0.33 |
EQUITY OFFERINGS AND RELATED _3
EQUITY OFFERINGS AND RELATED EXPENSES - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Nov. 07, 2022 | Sep. 27, 2022 | Aug. 30, 2022 | May 11, 2022 | Jan. 31, 2022 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Aggregate capital commitment | $ 226,687,500 | $ 233,037,500 | ||||
Issuance of common shares of beneficial interest (in shares) | 2,333,334 | 5,483,433 | ||||
Beneficial interest price per share | $ 15 | |||||
Proceeds from dividend reinvestment plan | $ 43,893 | |||||
Proceeds from issuance of common shares of beneficial interest | $ 35,000,000 | 81,393,893 | ||||
Tax reclassification of stockholders' equity | 388,214 | |||||
Capital Draw Down | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Issuance of common shares of beneficial interest (in shares) | 1,358,696 | 1,355,013 | 2,333,334 | |||
Beneficial interest price per share | $ 14.72 | $ 14.76 | $ 15 | |||
Proceeds from issuance of common shares of beneficial interest | $ 20,000,000 | $ 20,000,000 | $ 35,000,000 | 75,000,000 | ||
Immediate Share Issuance | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Issuance of common shares of beneficial interest (in shares) | 342,037 | 91,403 | ||||
Beneficial interest price per share | $ 14.57 | $ 14.72 | ||||
Proceeds from issuance of common shares of beneficial interest | $ 5,000,000 | $ 1,350,000 | $ 6,350,000 |
EQUITY OFFERINGS AND RELATED _4
EQUITY OFFERINGS AND RELATED EXPENSES - Issuance of Common Stock (Details) - USD ($) | 12 Months Ended | ||||||
Nov. 07, 2022 | Sep. 27, 2022 | Aug. 31, 2022 | Aug. 30, 2022 | May 11, 2022 | Jan. 31, 2022 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares | 2,333,334 | 5,483,433 | |||||
Gross proceeds | $ 81,372,831 | ||||||
Expense allocation | 21,062 | ||||||
Net proceeds | $ 35,000,000 | 81,393,893 | |||||
Price per share | $ 15 | ||||||
Capital Draw Down | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares | 1,358,696 | 1,355,013 | 2,333,334 | ||||
Gross proceeds | $ 20,000,000 | $ 20,000,000 | $ 35,000,000 | ||||
Net proceeds | $ 20,000,000 | $ 20,000,000 | $ 35,000,000 | 75,000,000 | |||
Price per share | $ 14.72 | $ 14.76 | $ 15 | ||||
Dividend Reinvestment | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares | 2,656 | 294 | |||||
Gross proceeds | $ 39,565 | $ 4,328 | |||||
Net proceeds | $ 39,565 | $ 4,328 | |||||
Price per share | $ 14.90 | $ 14.72 | |||||
Immediate Share Issuance | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares | 342,037 | 91,403 | |||||
Gross proceeds | $ 4,983,487 | $ 1,345,451 | |||||
Expense allocation | 16,513 | 4,549 | |||||
Net proceeds | $ 5,000,000 | $ 1,350,000 | $ 6,350,000 | ||||
Price per share | $ 14.57 | $ 14.72 |
NET INCREASE IN NET ASSETS PE_3
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
NET INCREASE IN NET ASSETS PER COMMON SHARE OF BENEFICIAL INTEREST | ||||
Net increase (decrease) in net assets resulting from operations | $ (532,845) | $ 3,681,779 | $ (532,845) | |
Weighted Average Shares of Common Shares of Beneficial Interest Outstanding - basic | 3,869,643 | 3,869,643 | ||
Weighted Average Shares of Common Shares of Beneficial Interest Outstanding - diluted | 3,869,643 | |||
Net Increase in Net Assets Resulting from Operations Per Share - basic | $ 0.95 | |||
Net Increase in Net Assets Resulting from Operations Per Share - diluted | $ 1.01 |
PORTFOLIO INVESTMENTS AND FAI_3
PORTFOLIO INVESTMENTS AND FAIR VALUE - Total Fair Value and Cost of Investments (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) company | |
Investment Holdings [Line Items] | |
Cost | $ 158,022,677 |
Fair Value | $ 157,504,755 |
Investments in number of portfolio companies | company | 25 |
% of Total Investments | 100% |
Senior Secured - First Lien | |
Investment Holdings [Line Items] | |
Fair Value | $ 152,257,418 |
% of Total Investments | 3.90% |
Equity | |
Investment Holdings [Line Items] | |
Fair Value | $ 5,247,337 |
Cost | |
Investment Holdings [Line Items] | |
Cost | 158,022,677 |
Fair Value | 157,504,755 |
Cost | Senior Secured - First Lien | |
Investment Holdings [Line Items] | |
Cost | 152,825,940 |
Cost | Equity | |
Investment Holdings [Line Items] | |
Cost | 5,196,737 |
Fair Value | |
Investment Holdings [Line Items] | |
Cost | 158,022,677 |
Fair Value | 157,504,755 |
Fair Value | Senior Secured - First Lien | |
Investment Holdings [Line Items] | |
Fair Value | 152,257,418 |
Fair Value | Equity | |
Investment Holdings [Line Items] | |
Fair Value | $ 5,247,337 |
PORTFOLIO INVESTMENTS AND FAI_4
PORTFOLIO INVESTMENTS AND FAIR VALUE - Aggregate gross unrealized appreciation and depreciation and aggregate cost and fair value of portfolio company securities (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) item | |
Investment Holdings [Line Items] | |
Number of investments | item | 22 |
Aggregate cost of portfolio company securities | $ 158,022,677 |
Gross unrealized appreciation of portfolio company securities | 550,229 |
Gross unrealized depreciation of portfolio company securities | (1,089,112) |
Gross unrealized appreciation on foreign currency translation | 20,961 |
Aggregate fair value of portfolio company securities | 157,504,755 |
Unfunded loan commitments | |
Investment Holdings [Line Items] | |
Aggregate cost of portfolio company securities | $ 36,293,611 |
PORTFOLIO INVESTMENTS AND FAI_5
PORTFOLIO INVESTMENTS AND FAIR VALUE - Fair values of investments disaggregated into three levels of fair value hierarchy (Details) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | $ 157,504,755 |
Senior Secured - First Lien | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | 152,257,418 |
Equity | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | 5,247,337 |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | 157,504,755 |
Significant Unobservable Inputs (Level 3) | Senior Secured - First Lien | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | 152,257,418 |
Significant Unobservable Inputs (Level 3) | Equity | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Investments (Fair Value) | $ 5,247,337 |
PORTFOLIO INVESTMENTS AND FAI_6
PORTFOLIO INVESTMENTS AND FAIR VALUE - Aggregate values of Level 3 portfolio investments change (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Purchases of investments | $ 168,326,016 |
Sales and Redemptions | (10,501,404) |
Change in unrealized (depreciation) appreciation on investments included in earnings | (538,883) |
Change in unrealized appreciation on foreign currency translation included in earnings | 20,961 |
Amortization of premium and accretion of discount, net | 198,065 |
Fair value at end of period | 157,504,755 |
Level 3 transfers | 0 |
Senior Secured Loans - First Lien | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Purchases of investments | 163,129,279 |
Sales and Redemptions | (10,501,404) |
Change in unrealized (depreciation) appreciation on investments included in earnings | (568,522) |
Amortization of premium and accretion of discount, net | 198,065 |
Fair value at end of period | 152,257,418 |
Equity | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Purchases of investments | 5,196,737 |
Change in unrealized (depreciation) appreciation on investments included in earnings | 29,639 |
Change in unrealized appreciation on foreign currency translation included in earnings | 20,961 |
Fair value at end of period | $ 5,247,337 |
PORTFOLIO INVESTMENTS AND FAI_7
PORTFOLIO INVESTMENTS AND FAIR VALUE - Geographical concentration of investment portfolio (Details) | Dec. 31, 2022 USD ($) |
Investment Holdings [Line Items] | |
Amortized Cost | $ 158,022,677 |
Fair Value | $ 157,504,755 |
% of Total Investments | 100% |
Texas | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 41,689,874 |
Fair Value | $ 41,670,626 |
% of Total Investments | 26.46% |
Florida | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 25,824,710 |
Fair Value | $ 25,639,155 |
% of Total Investments | 16.28% |
New York | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 23,971,538 |
Fair Value | $ 23,990,132 |
% of Total Investments | 15.23% |
Illinois | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 13,199,633 |
Fair Value | $ 12,899,144 |
% of Total Investments | 8.19% |
United Kingdom | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 9,977,695 |
Fair Value | $ 9,971,437 |
% of Total Investments | 6.33% |
Michigan | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 9,492,362 |
Fair Value | $ 9,607,593 |
% of Total Investments | 6.10% |
Washington | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 6,892,968 |
Fair Value | $ 6,750,961 |
% of Total Investments | 4.29% |
Indiana | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 6,384,015 |
Fair Value | $ 6,339,226 |
% of Total Investments | 4.02% |
Maryland | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 6,094,066 |
Fair Value | $ 5,955,848 |
% of Total Investments | 3.78% |
Arizona | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 5,161,586 |
Fair Value | $ 5,259,750 |
% of Total Investments | 3.34% |
Wisconsin | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 4,940,698 |
Fair Value | $ 5,031,797 |
% of Total Investments | 3.19% |
Idaho | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 4,393,532 |
Fair Value | $ 4,389,086 |
% of Total Investments | 2.79% |
PORTFOLIO INVESTMENTS AND FAI_8
PORTFOLIO INVESTMENTS AND FAIR VALUE - Industry concentration of investment portfolio (Details) | Dec. 31, 2022 USD ($) |
Investment Holdings [Line Items] | |
Amortized Cost | $ 158,022,677 |
Fair Value | $ 157,504,755 |
% of Total Investments | 100% |
Services: Business | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 35,188,973 |
Fair Value | $ 35,046,444 |
% of Total Investments | 22.25% |
Capital Equipment | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 20,713,352 |
Fair Value | $ 20,768,686 |
% of Total Investments | 13.19% |
Consumer Goods: Non-Durable | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 18,553,695 |
Fair Value | $ 18,514,476 |
% of Total Investments | 11.75% |
Consumer Goods: Durable | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 13,741,132 |
Fair Value | $ 13,680,426 |
% of Total Investments | 8.69% |
Media: Diversified & Production | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 9,977,695 |
Fair Value | $ 9,971,437 |
% of Total Investments | 6.33% |
Healthcare & Pharmaceuticals | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 9,866,275 |
Fair Value | $ 9,866,275 |
% of Total Investments | 6.26% |
Automotive | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 9,492,362 |
Fair Value | $ 9,607,593 |
% of Total Investments | 6.10% |
High Tech Industries | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 8,455,439 |
Fair Value | $ 8,399,480 |
% of Total Investments | 5.33% |
Chemicals, Plastics, & Rubber | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 7,490,771 |
Fair Value | $ 7,351,701 |
% of Total Investments | 4.67% |
Construction & Building | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 7,348,309 |
Fair Value | $ 7,195,856 |
% of Total Investments | 4.57% |
Retail | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 5,327,376 |
Fair Value | $ 5,291,147 |
% of Total Investments | 3.36% |
Media: Broadcasting & Subscription | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 4,614,114 |
Fair Value | $ 4,614,114 |
% of Total Investments | 2.93% |
Software | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 4,165,162 |
Fair Value | $ 4,140,506 |
% of Total Investments | 2.63% |
Services: Consumer | |
Investment Holdings [Line Items] | |
Amortized Cost | $ 3,088,022 |
Fair Value | $ 3,056,614 |
% of Total Investments | 1.94% |
PORTFOLIO INVESTMENTS AND FAI_9
PORTFOLIO INVESTMENTS AND FAIR VALUE - Quantitative information about Level 3 fair value measurements (Details) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 157,504,755 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 157,504,755 |
Senior Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 152,257,418 |
Senior Loans [Member] | Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 152,257,418 |
Senior Loans [Member] | Income/Market approach | Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 152,257,418 |
Senior Loans [Member] | Minimum | Significant Unobservable Inputs (Level 3) | HY credit spreads | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | (0.09) |
Senior Loans [Member] | Minimum | Significant Unobservable Inputs (Level 3) | Risk free rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 0.63 |
Senior Loans [Member] | Minimum | Significant Unobservable Inputs (Level 3) | Market multiples | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 5.2 |
Senior Loans [Member] | Maximum | Significant Unobservable Inputs (Level 3) | HY credit spreads | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 1.72 |
Senior Loans [Member] | Maximum | Significant Unobservable Inputs (Level 3) | Risk free rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 2.87 |
Senior Loans [Member] | Maximum | Significant Unobservable Inputs (Level 3) | Market multiples | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 15.1 |
Senior Loans [Member] | Weighted average | Significant Unobservable Inputs (Level 3) | HY credit spreads | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | (1.06) |
Senior Loans [Member] | Weighted average | Significant Unobservable Inputs (Level 3) | Risk free rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | (1.47) |
Senior Loans [Member] | Weighted average | Significant Unobservable Inputs (Level 3) | Market multiples | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt | 10 |
Equity investments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 5,247,337 |
Equity investments | Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 5,247,337 |
Equity investments | Market approach | Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 5,247,337 |
Equity investments | Minimum | Significant Unobservable Inputs (Level 3) | Underwriting multiple/EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investments | 5.5 |
Equity investments | Maximum | Significant Unobservable Inputs (Level 3) | Underwriting multiple/EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investments | 22.1 |
Equity investments | Weighted average | Significant Unobservable Inputs (Level 3) | Underwriting multiple/EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investments | 10.4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) item | |
COMMITMENTS AND CONTINGENCIES. | |
Unfunded debt commitments | $ | $ 36,293,611 |
Number of existing portfolio companies | item | 22 |
FINANCIAL HIGHLIGHTS - Roll For
FINANCIAL HIGHLIGHTS - Roll Forward (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Per Share Data: | |||
Net asset value at beginning of period | $ 14.77 | ||
Net investment income | 1.08 | ||
Change in unrealized depreciation on investments | (0.14) | ||
Change in unrealized appreciation on foreign currency translations | 0.01 | ||
Total from operations | 0.95 | ||
Net investment income | (1.11) | ||
Other | 0.03 | ||
Net asset value at end of period | $ 14.64 | $ 14.64 | |
Total return based on market value | 6.60% | ||
Weighted average shares outstanding | 3,869,643 | 3,869,643 | |
Ratio/Supplemental Data: | |||
Net assets at end of period | $ 80,262,957 | $ 80,262,957 | $ (532,845) |
Weighted average net assets | $ 57,527,650 | ||
Annualized ratio of net operating expenses to weighted average net assets | 6.87% | ||
Annualized ratio of interest expense and other fees to weighted average net assets | 4.39% | ||
Annualized ratio of net investment income to weighted average net assets | 4.50% | ||
Portfolio turnover | 13.88% | ||
Credit Facilities payable | $ 80,615,000 | 80,615,000 | |
Short-term loan payable | $ 11,250,000 | $ 11,250,000 |
FINANCIAL HIGHLIGHTS - Addition
FINANCIAL HIGHLIGHTS - Additional Information (Details) - USD ($) | 11 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2022 | |
FINANCIAL HIGHLIGHTS | ||
Beneficial interest price per share | $ 15 | |
Organization costs per share | 0.23 | |
Net expenses reimbursed and fees | 3.75% | |
Organization costs | $ 3,534 |
CREDIT FACILITIES - Additional
CREDIT FACILITIES - Additional Information (Details) | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Jun. 17, 2022 | Dec. 31, 2022 USD ($) | Dec. 09, 2022 USD ($) | May 05, 2022 USD ($) | May 04, 2022 USD ($) | |
Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus Alternate Base Rate Based Prime Rate Subject 3 Floor, Federal Funds Rate plus 0.50 and One Month SOFR Plus 1.00 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 1.75% | |||||
Commitment Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | $ 50,000,000 | |||||
Asset coverage ratio | 1.50 | |||||
Credit facility, before loan structure fee | $ 80,615,000 | |||||
Loan structure fees | 451,457 | |||||
Prepaid loan structure fees to be amortized | 44,678 | |||||
Commitment Facility | SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 1.80% | |||||
Credit facility, variable rate adjustment | 0.0010 | |||||
Commitment Facility | SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 1.80% | |||||
Credit facility, variable rate adjustment | 0.0010 | |||||
Commitment Facility | One-month term SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 1.80% | |||||
Credit facility, variable rate adjustment | (0.0080) | |||||
Commitment Facility | Federal funds rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 0.50% | |||||
Commitment Facility | Floor rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0 | |||||
Senior Secured Revolving Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | $ 130,000,000 | $ 200,000,000 | ||||
Credit facility, variable rate percentage | 1.50% | |||||
Unused commitment fees percentage | 0.50% | |||||
Asset coverage ratio | 1.67 | |||||
Minimum liquidity test amount | $ 10,000,000 | |||||
Interest coverage ratio | 1.75 | |||||
Deferred financing cost | 1,194,035 | |||||
Prepaid loan structure fees to be amortized | $ 1,122,188 | |||||
Senior Secured Revolving Credit Agreement | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus Alternate Base Rate Based Prime Rate Subject 3 Floor, Federal Funds Rate plus 0.50 and One Month SOFR Plus 1.00 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 1 | |||||
Asset coverage ratio | 1.90 | |||||
Senior Secured Revolving Credit Agreement | SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 2.50% | |||||
Senior Secured Revolving Credit Agreement | SOFR | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus 0.10% one Month SOFR and 0.15% Three Month SOFR With 0.25% SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 2.75% | |||||
Senior Secured Revolving Credit Agreement | One-month term SOFR | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus 0.10% one Month SOFR and 0.15% Three Month SOFR With 0.25% SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0.10 | |||||
Senior Secured Revolving Credit Agreement | One-month term SOFR | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus Alternate Base Rate Based Prime Rate Subject 3 Floor, Federal Funds Rate plus 0.50 and One Month SOFR Plus 1.00 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0.10 | |||||
Senior Secured Revolving Credit Agreement | Three-month term SOFR | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus 0.10% one Month SOFR and 0.15% Three Month SOFR With 0.25% SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0.15 | |||||
Senior Secured Revolving Credit Agreement | Prime rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.50 | |||||
Senior Secured Revolving Credit Agreement | Floor rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate percentage | 3% | |||||
Senior Secured Revolving Credit Agreement | Floor rate | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus 0.10% one Month SOFR and 0.15% Three Month SOFR With 0.25% SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0.25 | |||||
Senior Secured Revolving Credit Agreement | Floor rate | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus Alternate Base Rate Based Prime Rate Subject 3 Floor, Federal Funds Rate plus 0.50 and One Month SOFR Plus 1.00 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, variable rate adjustment | 0.25 | |||||
Senior Secured Revolving Credit Agreement | Maximum | Scenario, Asset Coverage Ratio Equals or Below 1.90 Plus 0.10% one Month SOFR and 0.15% Three Month SOFR With 0.25% SOFR Floor | ||||||
Line of Credit Facility [Line Items] | ||||||
Asset coverage ratio | 1.90 | |||||
First Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | $ 75,000,000 |
CREDIT FACILITIES - Summary of
CREDIT FACILITIES - Summary of credit facility (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Credit facility payable, net of prepaid loan structure fees | $ 79,448,134 |
Commitment Facility | |
Line of Credit Facility [Line Items] | |
Credit Facility payable | 80,615,000 |
Prepaid loan structure fees | (44,678) |
Credit facility payable, net of prepaid loan structure fees | 80,570,322 |
Senior Secured Revolving Credit Agreement | |
Line of Credit Facility [Line Items] | |
Prepaid loan structure fees | (1,122,188) |
Credit facility payable, net of prepaid loan structure fees | $ 1,122,188 |
CREDIT FACILITIES - Summary o_2
CREDIT FACILITIES - Summary of interest expense and amortized financing costs on credit facility (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Total interest and other fees | $ 2,312,701 |
Commitment Facility | |
Line of Credit Facility [Line Items] | |
Interest expense | 1,653,774 |
Loan structure fees amortization | 406,779 |
Total interest and other fees | $ 2,060,553 |
Weighted average interest rate | 4.9 |
Effective interest rate (including fee amortization) | 6% |
Average debt outstanding | $ 37,222,440 |
Cash paid for interest and unused fees | 1,237,868 |
Senior Secured Revolving Credit Agreement | |
Line of Credit Facility [Line Items] | |
Interest expense | 150,738 |
Loan structure fees amortization | 71,847 |
Total interest and other fees | $ 222,585 |
Weighted average interest rate | 0.554 |
Effective interest rate (including fee amortization) | 0.818% |
Average debt outstanding | $ 1,068,253 |
Cash paid for interest and unused fees | $ 7,575 |
INCOME TAXES - Distributions pa
INCOME TAXES - Distributions paid to common stockholders (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
INCOME TAXES | |
Ordinary income | $ 4,279,870 |
Total distributions paid to common stockholders | 4,279,870 |
Distributions of long-term capital gains | $ 0 |
INCOME TAXES - Reconciliation t
INCOME TAXES - Reconciliation to taxable income and distributions declared (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Net increase in net assets resulting from operations (includes net investment income, realized gain (loss), unrealized appreciation (depreciation) and taxes) | $ (532,845) | $ 3,681,779 | $ (532,845) |
Net change in unrealized depreciation | 517,922 | ||
Pre-tax expense, loss reported at Taxable Subsidiary, not consolidated for tax purposes | 35,596 | ||
Book income and tax income differences, including debt origination, interest accrual, income from pass-through investments, dividends, realized gains (losses) and changes in estimates | 322,508 | ||
Estimated taxable income | 4,557,805 | ||
Taxable income earned prior to period end and carried forward | (277,935) | ||
Total distributions accrued or paid to common stockholders | $ 4,279,870 |
INCOME TAXES - Aggregate gross
INCOME TAXES - Aggregate gross unrealized appreciation and depreciation and aggregate cost of Company portfolio company securities (Details) | Dec. 31, 2022 USD ($) |
INCOME TAXES | |
Aggregate cost of portfolio company securities | $ 158,022,677 |
Gross unrealized appreciation of portfolio company securities | 550,229 |
Gross unrealized depreciation of portfolio company securities | (1,089,112) |
Gross unrealized appreciation on foreign currency translations of portfolio company securities | 20,961 |
Aggregate fair value of portfolio company securities | $ 157,504,755 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
INCOME TAXES | |
Undistributed ordinary income | $ 277,935 |
Undistributed capital gains and qualified dividends | 0 |
Excise tax accrued | 7,471 |
Tax reclassification of stockholders' equity | $ 388,214 |
SENIOR SECURITIES (Details)
SENIOR SECURITIES (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2022 USD ($) $ / shares |
Commitment Facility | |
Line of Credit Facility [Line Items] | |
Outstanding Exclusive of Treasury Securities | $ | $ 80,615 |
Asset Coverage per Unit | $ 2,000 |
Senior Secured Revolving Credit Agreement | |
Line of Credit Facility [Line Items] | |
Asset Coverage per Unit | $ 2,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Feb. 01, 2023 | Jan. 31, 2023 | Dec. 31, 2022 |
Subsequent Event [Line Items] | |||
Outstanding credit facility | $ 79,448,134 | ||
Subsequent Event [Member] | Senior Secured - First Lien | |||
Subsequent Event [Line Items] | |||
Investment Amount | $ 4,900,742 | ||
Subsequent Event [Member] | Signature Bank [Member] | Revolving Credit and Security Agreement | Minimum | |||
Subsequent Event [Line Items] | |||
Commitment amount | $ 50,000,000 | ||
Subsequent Event [Member] | Signature Bank [Member] | Revolving Credit and Security Agreement | Maximum | |||
Subsequent Event [Line Items] | |||
Commitment amount | $ 100,000,000 |
N-2
N-2 | 12 Months Ended |
Dec. 31, 2022 | |
Cover [Abstract] | |
Entity Central Index Key | 0001901037 |
Amendment Flag | false |
Securities Act File Number | 000-56378 |
Document Type | 10-K |
Entity Registrant Name | Stellus Private Credit BDC |
Entity Address, Address Line One | 4400 Post Oak Parkway |
Entity Address, Address Line Two | Suite 2200 |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77027 |
City Area Code | 713 |
Local Phone Number | 292-5400 |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | ● our future operating results; ● our business prospects and the prospects of our portfolio companies; ● the effect of investments that we expect to make; ● our contractual arrangements and relationships with third parties; ● actual and potential conflicts of interest with the Advisor or Stellus Capital Management, LLC Stellus Capital Management ; ● the dependence of our future success on the general economy and its effect on the industries in which we invest; ● the impact of interest rate volatility, including the decommissioning of London Interbank Offered Rate ("LIBOR") and rising interest rates, on our business and our portfolio companies; ● the ability of our portfolio companies to achieve their objectives; ● the use of borrowed money to finance a portion of our investments; ● the adequacy of our financing sources and working capital; ● the timing of cash flows, if any, from the operations of our portfolio companies; ● the ability of the Advisor to locate suitable investments for us and to monitor and administer our investments; ● the ability of Stellus Capital Management and the Advisor to attract and retain highly talented professionals; ● our ability to maintain our qualification as a regulated investment company (“RIC”) and as a business development company (“BDC”); and ● the effect of future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or RICs. |
Risk Factors [Table Text Block] | Item 1A. Risk Factors Investing in our securities involves a number of significant risks. Before you invest in our securities, you should be aware of various risks, including those described below. You should carefully consider these risk factors, together with all of the other information included in this Annual Report on Form 10 K, before you decide whether to make an investment in our securities. The risks set out below are the principal risks with respect to an investment in our securities generally and with respect to a BDC with investment objectives, investment policies, capital structures or trading markets similar to ours. However, they may not be 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 net asset value of our securities could decline, and you may lose all or part of your investment. Risks Relating to Our Business and Structure We are a new company and have a limited operating history. We are a newly formed company with a limited operating history. As a result, we have limited financial information on which you can evaluate an investment in us or our prior performance. 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 and that the value of your investment could decline substantially, or your investment could become worthless. The capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets, which may have a negative impact on our business and operations. From time to time, capital markets may experience periods of disruption and instability, including during portions of the past three fiscal years. In addition, between 2008 and 2009, the global capital markets were unstable as evidenced by periodic disruptions in liquidity in the debt capital markets, significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated credit market and the failure of major financial institutions. Despite actions of the U.S. federal government and foreign governments, these events contributed to worsening general economic conditions that materially and adversely impacted the broader financial and credit markets and reduced the availability of debt and equity capital for the market as a whole and financial services firms in particular. There can be no assurance these market conditions will not continue or worsen in the future, including as a result of inflation and rising interest rates, the war in Ukraine and Russia, and health epidemics and pandemics. Equity capital may be difficult to raise during such periods of adverse or volatile market conditions because, subject to some limited exceptions, as a BDC, we generally are not able to issue additional shares of our Common Shares at a price less than net asset value without first obtaining approval for such issuance from our stockholders and Independent Trustees. Volatility and dislocation in the capital markets can also create a challenging environment in which to raise or access debt capital. The reappearance of market conditions similar to those experienced during portions of the past three fiscal years and from 2008 through 2009 for any substantial length of time could make it difficult to extend the maturity of or refinance our existing indebtedness or obtain new indebtedness with similar terms and any failure to do so could have a material adverse effect on our business. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than what we have historically experienced, including the current rising interest rate environment. If we are unable to raise or refinance debt, then our equity investors may not benefit from the potential for increased returns on equity resulting from leverage and we may be limited in our ability to make new commitments or to fund existing commitments to our portfolio companies. Significant changes or volatility in the capital markets may also have a negative effect on the valuations of our investments. While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). Significant changes in the capital markets may adversely affect the pace of our investment activity and economic activity generally. The illiquidity of our investments may make it difficult for us to sell such investments to access capital if required, and as a result, we could realize significantly less than the value at which we have recorded our investments if we were required to sell them for liquidity purposes. An inability to raise or access capital, and any required sale of all or a portion of our investments as a result, could have a material adverse effect on our business, financial condition or results of operations. The COVID-19 pandemic caused severe disruptions in the U.S. economy and disrupted financial activity in the areas in which we or our portfolio companies operate. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread caused business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both globally and in the United States. Despite actions of the U.S. federal government and foreign governments, these events have contributed to unpredictable general economic conditions that are materially and adversely impacting the broader financial and credit markets and reducing the availability of debt and equity capital for the market as a whole. It is uncertain how long this volatility will continue, and as a result, even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession. Our business and operations, as well as the business and operations of our portfolio companies, could be materially adversely affected by a prolonged recession in the United States and other major markets. Some economists and major investment banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn, the impacts of which could last for some period after the pandemic is controlled and/or abated. The COVID-19 pandemic is ongoing as of the filing date of this Annual Report on Form 10-K, and its extended duration may have further adverse impacts on our portfolio companies after December 31, 2022, including for the reasons described herein. Any public health emergency, including the COVID-19 pandemic and any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty, could have a significant adverse impact on us and the fair value of our investments and our portfolio companies. The extent of the impact of any public health emergency, such as the COVID-19 pandemic, on us and our portfolio companies’ operational and financial performance will depend on many factors, including the duration and scope of such public health emergency, the actions taken by governmental authorities to contain the financial and economic impact of the public health emergency, the extent of any related travel advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of economic activity, and the extent of the public health emergency’s disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. In addition, we and our portfolio companies’ operations may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public health emergency, including the potential adverse impact of the public health emergency on the health of any of our or our portfolio companies’ personnel. This could create widespread business continuity issues for us and our portfolio companies. These factors may also cause the valuation of our investments to differ materially from the values that it may ultimately realize. Our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information. Any public health emergency, pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on the us and the fair value of our investments and our portfolio companies. We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment. General interest rate fluctuations may have a negative impact on our investments and our investment returns and, accordingly, may have a material adverse effect on our investment objective and our net investment income. In an effort to combat inflation, the U.S. Federal Reserve has increased the federal funds rate in 2022 and is widely expected to further increase the federal funds rate in 2023. Because we borrow money to make investments and may in the future issue additional senior securities including preferred stock and debt securities, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that rising interest rates would not have a material adverse effect on our net investment income in the event we use debt to finance our investments. In this period of rising interest rates, our cost of funds have increased, which may reduce our net investment income. Conversely, if interest rates decrease, we may earn less interest income from investments and our cost of funds will also decrease, to a lesser extent, resulting in lower net investment income. Rising interest rates may increase the cost of debt for our underlying portfolio companies, which could adversely impact their financial performance and ability to meet ongoing obligations to us. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to pay dividends at a level that provides a similar return, which could reduce the value of our Common Shares. Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies. Certain of our portfolio companies are in industries that have been impacted by inflation. Recent inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and our portfolio companies’ operations. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations. Additionally, the Federal Reserve has raised, and has indicated its intent to continue raising, certain benchmark interest rates in an effort to combat inflation. See “—We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment.” The ongoing invasion of Ukraine by Russia and related sanctions have increased global political and economic uncertainty, which may have a material impact on our portfolio, business and operations and the value of an investment in us The ongoing invasion of Ukraine by Russia and related sanctions have increased global political and economic uncertainty. In February 2022, Russia invaded Ukraine and, in response, the United States, the United Kingdom, the European Union and many other nations announced a broad array of new or expanded economic sanctions, export controls and other measures against Russia, Russian entities and individuals. Because Russia is a major exporter of oil and natural gas, the invasion and related sanctions have reduced the supply, and increased the price, of energy, which is accelerating inflation and may exacerbate ongoing supply chain issues. There is also the risk of retaliatory actions by Russia against countries that have enacted sanctions, including cyberattacks against financial and governmental institutions, which could result in business disruptions and further economic turbulence. Although we have no direct exposure to Russia or Ukraine, the broader consequences of the invasion may have a material adverse impact on our portfolio, business and operations and the value of an investment in us. The Russian invasion of Ukraine is uncertain and evolving as of the filing date of this Annual Report on Form 10-K, and its full impact on our portfolio companies after December 31, 2022 is unknown. We are subject to risks related to corporate social 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 fails 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 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 us and our portfolio companies. We are dependent upon key personnel of the Advisor for our future success. If the Advisor were to lose any of its key personnel, our ability to achieve our investment objectives could be significantly harmed. We depend on the diligence, skill and network of business contacts of the senior investment professionals of the Advisor to achieve our investment objectives. The Advisor’s team of investment professionals evaluates, negotiates, structures, closes and monitors our investments in accordance with the terms of the Advisory Agreement. We can offer no assurance, however, that the Advisor’s investment professionals will continue to provide investment advice to us. The Advisor’s investment committee, which provides oversight over our investment activities, is provided to us by the Advisor under the Advisory Agreement. The Advisor’s investment committee consists of five members, including Messrs. Ladd, and D’Angelo, each a member of the Board, Mr. Huskinson, the chief financial officer and chief compliance officer for us and the Advisor, Joshua T. Davis, the Co-Head of Stellus Capital Management’s Private Credit Strategy and Mr. Overbergen, a senior investment professional of the Advisor. The loss of one or more of the members of our Advisor’s investment committee may limit our ability to achieve our investment objectives and operate our business. This could have a material adverse effect on our financial condition, results of operations and cash flows. Our business model depends to a significant extent upon strong referral relationships. Any inability of the Investment Team 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 members of the Investment Team to maintain their relationships with private equity sponsors, placement agents, investment banks, management groups and other financial institutions, and we will rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the Investment Team 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 members of the Investment Team have relationships are not obligated to provide them with investment opportunities, and we can offer no assurance that these relationships will generate investment opportunities for us in the future. Our financial condition, results of operations and cash flows will depend on our ability to manage our business effectively. Our ability to achieve our investment objectives will depend on our ability to manage our business and to grow our investments and earnings. This will depend, in turn, on the Investment Team’s ability to identify, invest in and monitor portfolio companies that meet our investment criteria. The achievement of our investment objectives on a cost-effective basis will depend upon the Investment Team’s execution of its 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 Investment Team will have substantial responsibilities in connection with the management of other investment funds, accounts and investment vehicles. The Investment Team may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them from sourcing new investment opportunities for us 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 negatively affect our investment returns. The members of the Advisor’s investment committee serve, or may serve, as officers, directors, members, or principals of entities that operate in the same or a related line of business as us, or of investment funds, accounts, or investment vehicles managed by the Advisor or Stellus Capital. Similarly, the Advisor and its affiliates may have other clients with similar, different 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. For example, the Investment Team currently manages a publicly traded BDC and private credit funds that have an investment strategy that is similar to, overlapping with or identical to our investment strategy. Stellus Capital Management also provides sub-advisory services to the D. E. Shaw group with respect to a private investment fund and a strategy of a private multi-strategy investment fund to which the D. E. Shaw group serves as investment adviser that have an investment strategy similar to our investment strategy. In addition, there may be times when the Advisor, the members of its investment committee or its other investment professionals have interests that differ from those of our stockholders, giving rise to a conflict of interest. Although the Advisor will endeavor to handle these investment and other decisions in a fair and equitable manner, us and our stockholders could be adversely affected by these decisions. Moreover, given the subjective nature of the investment and other decisions made by the Advisor on our behalf, we are unable to monitor these potential conflicts of interest between us and the Advisor; however, the Board, including the Independent Trustees, will review conflicts of interest in connection with its review of the performance of the Advisor. As a BDC, we may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates, including the our officers, trustees, investment adviser, principal underwriters and certain of their affiliates, without the prior approval of the members of Board of Trustees who are not interested persons and, in some cases, prior approval by the SEC through an exemptive order (other than pursuant to current regulatory guidance). The senior investment professionals and other investment team members of the Advisor may, from time to time, possess material non-public information, limiting our investment discretion. The senior investment professionals and other investment team members of Advisor may serve as directors of, or in a similar capacity with, portfolio 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 and incentive fees may induce the Advisor to incur additional leverage. Generally, the management and incentive fees payable by us to the Advisor may create an incentive for the Advisor to use the additional available leverage. For example, the fact that the base management fee that we will pay to the Advisor is payable based upon our gross assets (which includes any borrowings for investment purposes) may encourage the Advisor to use leverage to make additional investments. Such a practice could result in us investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during cyclical economic downturns. Under certain circumstances, the use of additional leverage may increase the likelihood of our default on our borrowings, which would disfavor holders of the Common Shares. In addition, because the incentive fee on net investment income is calculated as a percentage of our net assets subject to a hurdle, having additional leverage available may encourage the Advisor to use leverage to increase the leveraged return on our investment portfolio. To the extent additional leverage is available at favorable rates, the Advisor could use leverage to increase the size of our investment portfolio to generate additional income, which may make it easier to meet the incentive fee hurdle. The Board is charged with protecting our interests by monitoring how the Advisor addresses these and other conflicts of interests associated with its management services and compensation. While the Board is not expected to review or approve each investment decision, borrowing or incurrence of leverage, the Independent Trustees will periodically review the Advisor’s services and fees as well as its portfolio management decisions and portfolio performance. In connection with these reviews, the Independent Trustees will consider whether our fees and expenses (including those related to leverage) remain appropriate. Our incentive fee may induce the Advisor to make speculative investments. We pay the Advisor an incentive fee based, in part, upon net capital gains realized on our investments. Unlike that portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. Additionally, under the incentive fee structure, the Advisor may benefit when capital gains are recognized and, because the Advisor will determine when to sell a holding, the Advisor will control the timing of the recognition of such capital gains. As a result, the Advisor may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in us investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns. We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses. A number of entities compete with us to make the types of investments that we make. We compete with public and private funds, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than us. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the source-of-income, asset diversification and distribution requirements we must satisfy to qualify and maintain our qualification as a RIC. The competitive pressures we face may have a material adverse effect on our business, financial condition, results of operations and cash flows. As a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objectives. With respect to the investments we make, we do not seek to compete based primarily on the interest rates we offer, and we believe that some of our competitors may make loans with interest rates that are lower than the rates we offer. With respect to all investments, we may lose some investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may experience decreased net interest income, lower yields and increased risk of credit loss. We may also compete for investment opportunities with investment funds, accounts and investment vehicles managed by the Advisor or its affiliates. Although the Advisor will allocate opportunities in accordance with its policies and procedures, allocations to such investment funds, accounts and investment vehicles will reduce the amount and frequency of opportunities available to us and may not be in the best interests of the us and our stockholders. Our investments in the business services industry are subject to unique risks relating to technological developments, regulatory changes and changes in customer preferences. Our investments in portfolio companies that operate in the business services industry represent 22.22% of our total portfolio as of December 31, 2022. Our investments in portfolio companies in the business services sector include those that provide services related to data and information, building, cleaning and maintenance services, and energy efficiency services. Portfolio companies in the business services sector are subject to many risks, including the negative impact of regulation, changing technology, a competitive marketplace and difficulty in obtaining financing. Portfolio companies in the business services industry must respond quickly to technological changes and understand the impact of these changes on customers’ preferences. Adverse economic, business, or regulatory developments affecting the business services sector could have a negative impact on the value of our investments in portfolio companies operating in this industry, and therefore could negatively impact our business and results of operations. Our investments in the consumer goods industry are subject to unique risks relating to technological developments, regulatory changes and changes in customer preferences. Our investments in portfolio companies that operate in the consumer goods industry represent 11.74% of our total portfolio as of December 31, 2022. Our investments in portfolio companies in the consumer goods sector include those that provide a wide range of daily usable products that are manufactured according to individual usage and as per end user requirements. Portfolio companies in the consumer goods sector are subject to many risks, including changes in consumer preferences, cyclical variations in the general economy and to uncertainty regarding future economic conditions a competitive marketplace and difficulty in obtaining financing. Portfolio companies in the consumer goods industry must respond quickly to these changes and understand the impact of these changes on customers’ preferences. Adverse economic, business, or regulatory developments affecting the consumer goods sector could have a negative impact on the value of our investments in portfolio companies operating in this industry, and therefore could negatively impact our business and results of operations. We may be subject to risks associated with our investments in capital equipment-related companies. As of December 31, 2022, our investment in portfolio companies operating in this sector represents 13.17% of our total portfolio. There are risks in investing in companies that operate in this market, including the negative impact of regulation, product obsolescence, changing technology, a competitive marketplace and difficulty in obtaining financing. Any of these factors could materially and adversely affect the operations of a portfolio company in this industry and, in turn, impair our ability to timely collect principal and interest payments owed to us. We will be subject to U.S. federal income tax at corporate rates if we are unable to qualify and thereafter maintain our tax treatment as a RIC under Subchapter M of the Code. To maintain our tax treatment as a RIC under Subchapter M of the Code, we must meet certain source-of-income, asset diversification and distribution requirements. The distribution requirement for a RIC generally is satisfied if we distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders on an annual basis. Because we incur debt, we are subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to maintain our tax treatment as a RIC. If we are unable to obtain cash from other sources, we may fail to maintain our tax treatment as a RIC and, thus, may be subject to U.S. federal income tax at corporate rates. To maintain our tax treatment as a RIC, we must also meet certain asset diversification requirements at the end of each calendar quarter. Failure to meet these tests may result in us having to dispose of certain investments quickly in order to prevent the loss of our tax treatment as a RIC. Because most of our investments will be in private or thinly-traded public companies, any such dispositions may be made at disadvantageous prices and may result in substantial losses. No certainty can be provided that we will satisfy the asset diversification requirements or the other requirements necessary to maintain our tax treatment as a RIC. If we fail to maintain our tax treatment as a RIC for any reason and become subject to U.S. federal income tax at corporate rates, the resulting taxes could substantially reduce our net assets, the amount of income available for distributions to our stockholders and the amount of funds available for new investments. There may be potential adverse tax cons |