ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification Number) | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
| ☒ | Accelerated filer | ☐ | ||||
| Non-accelerated filer | ☐ | Smaller Reporting Company | ||||
| Emerging growth company | ||||||
Auditor Firm Id: |
Auditor Name: |
Auditor Location: |
Page |
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PART I |
||||||
Item 1. |
1 | |||||
Item 1A. |
31 | |||||
Item 1B. |
71 | |||||
Item 1C. |
72 | |||||
Item 2. |
73 | |||||
Item 3. |
73 | |||||
Item 4. |
73 | |||||
PART II |
||||||
Item 5. |
74 | |||||
Item 6. |
79 | |||||
Item 7. |
79 | |||||
Item 7A. |
104 | |||||
Item 8. |
106 | |||||
Item 9. |
163 | |||||
Item 9A. |
163 | |||||
Item 9B. |
163 | |||||
Item 9C. |
163 | |||||
PART III |
||||||
Item 10. |
164 | |||||
Item 11. |
169 | |||||
Item 12. |
171 | |||||
Item 13. |
173 | |||||
Item 14. |
176 | |||||
PART IV |
||||||
Item 15. |
178 | |||||
Item 16. |
182 | |||||
| 183 | ||||||
Item 1. |
Business |
| • | Middle-market companies continue to face increasing difficulty in accessing the capital markets. |
| • | There is a large pool of uninvested private equity capital likely to seek additional capital to support their investments. |
| • | The significant amount of debt maturing through 2025 should provide additional demand for capital. |
| • | Investing in private middle-market debt provides an attractive risk reward profile. |
• Aerospace & Defense |
• Household & Personal Products | |
• Air Freight & Logistics |
• Industrial Conglomerates | |
• Airlines |
• Insurance | |
• Asset Management |
• Internet & Catalog Retail | |
• Automobiles |
• Internet Software & Services | |
• Auto Components |
• IT Services | |
• Auto Parts & Equipment |
• Leisure Equipment & Products | |
• Biotechnology |
• Life Sciences Tools & Services | |
• Building Products |
• Machinery | |
• Capital Markets |
• Media | |
• Chemicals |
• Metals & Mining | |
• Commercial Services & Supplies |
• Multiline Retail | |
• Communications Equipment |
• Multi-Sector Holdings | |
• Construction & Engineering |
• Oil, Gas & Consumable Fuels | |
• Consumer Finance |
• Packaged Foods & Meats | |
• Containers & Packaging |
• Paper & Forest Products | |
• Distributors |
• Personal Products | |
• Diversified Consumer Services |
• Pharmaceuticals | |
• Diversified Financial Services |
• Professional Services | |
• Diversified Real Estate Activities |
• Research & Consulting Services | |
• Diversified Telecommunications Services |
• Road & Rail | |
• Education Services |
• Software | |
• Energy Equipment & Services |
• Specialty Retail | |
• Food Products |
• Textiles, Apparel & Luxury Goods | |
• Food & Staples Retailing |
• Thrifts & Mortgage Finance | |
• Footwear |
• Trading Companies & Distributors | |
• Health Care Equipment & Supplies |
• Transportation Infrastructure | |
• Health Care Facilities |
• Water Utilities | |
• Health Care Providers & Services |
• Wireless Telecommunications Services | |
• Health Care Technology |
||
• Hotels, Restaurants & Leisure |
||
Portfolio Company |
% of Total Assets |
|||
SLR Credit Solutions* |
11.3 | % | ||
Kingsbridge Holdings, LLC* |
9.4 | % | ||
SLR Equipment Finance* |
4.9 | % | ||
SLR Business Credit* |
3.6 | % | ||
Arcutis Biotherapeutics, Inc. |
2.7 | % | ||
Outset Medical, Inc. |
1.8 | % | ||
SLR Senior Lending Program LLC* |
1.7 | % | ||
Enhanced Capital Group, LLC |
1.7 | % | ||
BridgeBio Pharma, Inc. |
1.6 | % | ||
Vapotherm, Inc. |
1.5 | % | ||
| * | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. |
Industry |
% of Total Assets |
|||
Diversified Financial Services |
18.7 | % | ||
Multi-Sector Holdings |
14.8 | % | ||
Health Care Providers & Services |
11.2 | % | ||
Health Care Equipment & Supplies |
6.5 | % | ||
Pharmaceuticals |
4.9 | % | ||
Biotechnology |
3.1 | % | ||
Software |
3.0 | % | ||
Insurance |
2.5 | % | ||
Diversified Consumer Services |
1.9 | % | ||
Commercial Services & Supplies |
1.9 | % | ||
Portfolio Company |
% of Total Assets |
|||
SLR Credit Solutions* |
11.4 | % | ||
Kingsbridge Holdings, LLC* |
9.0 | % | ||
SLR Equipment Finance* |
5.0 | % | ||
SLR Business Credit* |
3.5 | % | ||
Arcutis Biotherapeutics, Inc. |
2.7 | % | ||
BridgeBio Pharma, Inc. |
1.6 | % | ||
Foundation Consumer Brands, LLC |
1.4 | % | ||
Enhanced Capital Group, LLC |
1.4 | % | ||
Outset Medical, Inc. |
1.4 | % | ||
Vapotherm, Inc. |
1.4 | % | ||
| * | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. |
Industry |
% of Total Assets |
|||
Diversified Financial Services |
18.2 | % | ||
Multi-Sector Holdings |
14.4 | % | ||
Health Care Providers & Services |
6.4 | % | ||
Health Care Equipment & Supplies |
5.4 | % | ||
Pharmaceuticals |
4.5 | % | ||
Software |
3.6 | % | ||
Insurance |
3.5 | % | ||
Biotechnology |
3.2 | % | ||
Diversified Consumer Services |
2.2 | % | ||
Media |
1.6 | % | ||
| • | buy larger companies with strong business franchises; |
| • | invest significant amounts of equity in their portfolio companies; |
| • | value flexibility and creativity in structuring their transactions; |
| • | possess longer track records over multiple investment funds; |
| • | have a deeper management bench; |
| • | have better ability to withstand downturns; and |
| • | possess the ability to support portfolio companies with additional capital. |
| • | review of historical and prospective financial information; |
| • | review and valuation of assets; |
| • | research relating to the company’s management, industry, markets, products and services and competitors; |
| • | on-site visits; |
| • | discussions with management, employees, customers or vendors of the potential portfolio company; |
| • | review of senior loan documents; and |
| • | background investigations. |
| • | investment track record; |
| • | industry experience; |
| • | capacity and willingness to provide additional financial support to the company through additional capital contributions, if necessary; and |
| • | reference checks. |
| • | requiring a total return on our investments (including both interest and potential capital appreciation) that compensates us for credit risk; |
| • | incorporating “put” rights and call protection into the investment structure; and |
| • | negotiating covenants in connection with our investments that afford our portfolio companies as much flexibility in managing their businesses as possible, consistent with preservation of our capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or participation rights. |
| • | Assessment of success in adhering to each portfolio company’s business plan and compliance with covenants; |
| • | Periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments; |
| • | Comparisons to other SLR invested portfolio companies in the industry, if any; |
| • | Attendance at and participation in board meetings; and |
| • | Review of monthly and quarterly financial statements and financial projections for portfolio companies. |
Investment Rating |
Summary Description | |
| 1 | Involves the least amount of risk in our portfolio, the portfolio company is performing above expectations, and the trends and risk factors are generally favorable (including a potential exit) | |
| 2 | Risk that is similar to the risk at the time of origination, the portfolio company is performing as expected, and the risk factors are neutral to favorable; all new investments are initially assessed a grade of 2 | |
| 3 | The portfolio company is performing below expectations, may be out of compliance with debt covenants, and requires procedures for closer monitoring | |
| 4 | The investment is performing well below expectations and is not anticipated to be repaid in full | |
| (1) | our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment; |
| (2) | preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser; |
| (3) | independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets; |
| (4) | the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and |
| (5) | the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee. |
| • | pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the “1934 Act”), our Co-Chief Executive Officers and Chief Financial Officer must certify as to the accuracy of the financial statements contained in our periodic reports; |
| • | pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures; |
| • | pursuant to Rule 13a-15 of the 1934 Act, our management is required to prepare an annual report regarding its assessment of our internal control over financial reporting and to obtain an audit of the effectiveness of internal control over financial reporting performed by our independent registered public accounting firm; and |
| • | pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
| • | Information we receive from recordholders, whether we receive it orally, in writing or electronically. This includes recordholders’ communications to us concerning their investment; |
| • | Information about recordholders’ transaction history with us; and |
| • | Other general information that we may obtain about recordholders, such as demographic and contact information such as address. |
| • | to our affiliates (such as SLR and our administrator) and their employees for everyday business purposes; |
| • | to our service providers (such as our accountants, attorneys, custodians, transfer agent, underwriter and proxy solicitors) and their employees as is necessary to service recordholder accounts or otherwise provide the applicable service; |
| • | to comply with court orders, subpoenas, lawful discovery requests, or other legal or regulatory requirements; or |
| • | as allowed or required by applicable law or regulation. |
| • | at all times during each taxable year, have in effect an election to be treated as a BDC under the 1940 Act; |
| • | derive in each taxable year at least 90% of our gross income from (a) dividends, interest, payments with respect to certain securities loans, gains from the sale of stock or other securities or currencies, or other income derived with respect to our business of investing in such stock, securities or currencies and (b) net income derived from an interest in a “qualified publicly traded partnership;” and |
| • | diversify our holdings so that at the end of each quarter of the taxable year: |
| • | at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and |
| • | no more than 25% of the value of our assets is invested in (i) the securities, other than U.S. government securities or securities of other RICs, of one issuer, (ii) the securities of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) the securities of one or more “qualified publicly traded partnerships.” |
| • | no performance-based incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle of 1.75%; |
| • | 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeds the hurdle but is less than 2.1875%) as the “catch-up.” The “catch-up” is meant to provide our investment adviser with 20% of our pre-incentive fee net investment income as if a hurdle did not apply if this net investment income exceeds 2.1875% in any calendar quarter; and |
| • | 20% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to SLR Capital Partners (once the hurdle is reached and the catch-up is achieved, 20% of all pre-incentive fee investment income thereafter is allocated to SLR Capital Partners). |

| (*) | The hypothetical amount of pre-incentive fee net investment income shown is based on a percentage of total net assets. |
(1) |
Represents 7% annualized hurdle rate. |
(2) |
Represents 1.50% annualized management fee. |
(3) |
Excludes organizational and offering expenses. |
(4) |
The “catch-up” provision is intended to provide our investment adviser with an incentive fee of 20% on all of our pre-incentive fee net investment income as if a hurdle rate did not apply when our net investment income exceeds 2.1875% in any calendar quarter. |
| • | Year 1: $20 million investment made in Company A (“Investment A”), and $30 million investment made in Company B (“Investment B”) |
| • | Year 2: Investment A sold for $50 million and fair market value (“FMV”) of Investment B was determined to be $32 million |
| • | Year 3: FMV of Investment B determined to be $25 million |
| • | Year 4: Investment B sold for $31 million |
| • | Year 1: None |
| • | Year 2: Capital gains incentive fee of $6 million ($30 million realized capital gains on the sale of Investment A multiplied by 20%) |
| • | Year 3: None |
| • | Year 4: Capital gains incentive fee of $200,000 |
| • | Year 1: $20 million investment made in Company A (“Investment A”), $30 million investment made in Company B (“Investment B”) and $25 million investment made in Company C (“Investment C”) |
| • | Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million |
| • | Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30 million |
| • | Year 4: FMV of Investment B determined to be $24 million |
| • | Year 5: Investment B sold for $20 million |
| • | Year 1: None |
| • | Year 2: $5 million capital gains incentive fee |
| • | Year 3: $1.4 million capital gains incentive fee (1) |
| • | Year 4: None |
| • | Year 5: None |
(1) |
As illustrated in Year 3 of Alternative 2 above, if the Company were to be wound up on a date other than December 31 of any year, the Company may have paid aggregate capital gain incentive fees that are more than the amount of such fees that would be payable if the Company had been wound up on December 31 of such year. |
| • | the cost of our organization and public offerings; |
| • | the cost of calculating our net asset value, including the cost of any third-party valuation services; |
| • | the cost of effecting sales and repurchases of our shares and other securities; |
| • | interest payable on debt, if any, to finance our investments; |
| • | fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees; |
| • | transfer agent and custodial fees; |
| • | fees and expenses associated with marketing efforts; |
| • | federal and state registration fees, any stock exchange listing fees; |
| • | federal, state and local taxes; |
| • | independent directors’ fees and expenses; |
| • | brokerage commissions; |
| • | fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums; |
| • | direct costs and expenses of administration, including printing, mailing, long distance telephone and staff; |
| • | fees and expenses associated with independent audits and outside legal costs; |
| • | costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and |
| • | all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our chief compliance officer and our chief financial officer and their respective staffs. |
| • | We operate in a highly competitive market for investment opportunities. |
| • | Our investments are very risky and highly speculative. |
| • | The lack of liquidity in our investments may make it difficult for us to dispose of our investments at a favorable price, which may adversely affect our ability to meet our investment objectives. |
| • | Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies performs poorly or defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry. |
| • | Economic sanction laws in the United States and other jurisdictions may prohibit us and our affiliates from transacting with certain countries, individuals and companies. |
| • | If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely. |
| • | We may suffer a loss if a portfolio company defaults on a loan and the underlying collateral is not sufficient. |
| • | Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity. |
| • | We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest. |
| • | Our shares may trade at a substantial discount from net asset value and may continue to do so over the long term. |
| • | Our common stock price may be volatile and may decrease substantially. |
| • | Our business and operation could be negatively affected if we become subject to any securities litigation or stockholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price. |
| • | If the current period of capital market disruption and instability continues for an extended period of time, there is a risk that investors in our equity securities may not receive distributions consistent with historical levels or at all or that our distributions may not grow over time and a portion of our distributions may be a return of capital. |
| • | Due to disruptions in the economy, we may reduce or defer our dividends and choose to incur U.S. federal excise tax in order to preserve cash and maintain flexibility. |
| • | We may choose to pay distributions in our own common stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash distributions they receive. |
| • | Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock. |
| • | The net asset value per share of our common stock may be diluted if we issue or sell shares of our common stock at prices below the then current net asset value per share of our common stock or securities to subscribe for or convertible into shares of our common stock. |
| • | To the extent we use debt or preferred stock to finance our investments, changes in interest rates will affect our cost of capital and net investment income. |
| • | Our stock repurchase program could affect the price of our common stock and increase volatility and may be suspended or terminated at any time, which may result in a decrease in the trading price of our common stock. |
| • | We are dependent upon SLR Capital Partners’ key personnel for our future success. |
| • | Our business model depends to a significant extent upon strong referral relationships with financial sponsors, and the inability of the senior investment professionals of our Investment Adviser to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. |
| • | Our financial condition and results of operations will depend on SLR Capital Partners’ ability to manage our future growth effectively by identifying, investing in and monitoring companies that meet our investment criteria. |
| • | We may need to raise additional capital to grow because we must distribute most of our income. |
| • | Any failure on our part to maintain our status as a BDC would reduce our operating flexibility and we may be limited in our investment choices as a BDC. |
| • | Regulations governing our operation as a BDC affect our ability to, and the way in which we will, raise additional capital. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage. |
| • | We have and will continue to borrow money, which would magnify the potential for loss on amounts invested and may increase the risk of investing in us. |
| • | It is likely that the terms of any current or future long-term or revolving credit or warehouse facility we may enter into in the future could constrain our ability to grow our business. |
| • | There will be uncertainty as to the value of our portfolio investments, which may impact our net asset value. |
| • | There are significant potential conflicts of interest, including SLR Capital Partners’ management of other investment funds such as SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC, which could impact our investment returns, and an investment in SLR Investment Corp. is not an investment in SCP Private Credit Income BDC LLC, SLR HC BDC LLC, or SLR Private Credit BDC II LLC. |
| • | We may be obligated to pay our Investment Adviser incentive compensation even if we incur a loss. |
| • | Our incentive fee may induce SLR Capital Partners to pursue speculative investments. |
| • | We may become subject to corporate-level U.S. federal income tax if we are unable to qualify and maintain our qualification for tax treatment as a regulated investment company under Subchapter M of the Code. |
| • | The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively. |
| • | Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that could adversely affect our business and financial results. |
Item 1A. |
Risk Factors. |
| • | these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment; |
| • | they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns; |
| • | they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us; |
| • | they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. In addition, our executive officers, directors and our Investment Adviser may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies; and |
| • | they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity. |
| • | The interest payments deferred on a PIK loan are subject to the risk that the borrower may default when the deferred payments are due in cash at the maturity of the loan; |
| • | The interest rates on PIK loans are higher to reflect the time-value of money on deferred interest payments and the higher credit risk of borrowers who may need to defer interest payments; |
| • | PIK instruments may have unreliable valuations because the accruals require judgments about ultimate collectability of the deferred payments and the value of the associated collateral; |
| • | An election to defer PIK income payments by adding them to principal increases our gross assets and, thus, increases future base fees to the Investment Adviser and, because income payments will then be |
payable on a larger principal amount, the PIK election also increases the Investment Adviser’s future income incentive fees at a compounding rate; |
| • | Market prices of original issue discount instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that pay interest periodically in cash; |
| • | The deferral of interest on a PIK loan increases its loan-to-value |
| • | Original issue discount creates the risk of non-refundable cash payments to the Investment Adviser based on non-cash accruals that may never be realized. |
| • | price and volume fluctuations in the overall stock market from time to time; |
| • | investor demand for our shares; |
| • | significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies; |
| • | exclusion of our common stock from certain market indices, such as the Russell 2000 Financial Services Index, which could reduce the ability of certain investment funds to own our common stock and put short-term selling pressure on our common stock; |
| • | changes in regulatory policies or tax guidelines with respect to RICs or BDCs; |
| • | failure to qualify as a RIC, or the loss of RIC tax treatment; |
| • | any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; |
| • | changes, or perceived changes, in the value of our portfolio investments; |
| • | departures of SLR Capital Partners’ key personnel; |
| • | operating performance of companies comparable to us; |
| • | changes in the prevailing interest rates; |
| • | loss of a major funding source; or |
| • | general economic conditions and trends and other external factors. |
Assumed total return (net of interest expense) |
||||||||||||||||||||
(10)% |
(5)% |
0% |
5% |
10% |
||||||||||||||||
| Corresponding return to stockholder(1) |
( |
)% | ( |
)% | ( |
)% | % | % | ||||||||||||
| (1) | Assumes $2.5 billion in total assets (inclusive of temporary cash assets of $332 million) and $1.2 billion in total debt outstanding, which reflects our total assets and total debt outstanding as of December 31, 2023, and a cost of funds of 5.88%. Excludes non-leverage related expenses. |
| • | The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our stockholders on an annual basis at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Because we may use debt financing, 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 satisfy the Annual Distribution Requirement. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and become subject to corporate-level U.S federal income tax. |
| • | The income source requirement will be satisfied if we obtain at least 90% of our income for each year from certain passive investments, including interest, dividends, gains from the sale of stock or securities, or similar sources. |
| • | The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC tax treatment. Because most of our investments will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. |
| • | sudden electrical or telecommunications outages; |
| • | natural disasters such as earthquakes, tornadoes and hurricanes; |
| • | events arising from local or larger scale political or social matters, including terrorist acts; and |
| • | cyber-attacks. |
Item 1B. |
Unresolved Staff Comments |
Item 1C. |
Cybersecurity |
Item 2. |
Properties |
Item 3. |
Legal Proceedings |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Price Range |
Premium or (Discount) of High Closing |
Premium or (Discount) of Low Closing Price to |
Declared |
|||||||||||||||||||||
NAV (1) |
High |
Low |
Price to NAV (2) |
NAV (2) |
Distributions (3) |
|||||||||||||||||||
| Fiscal 2023 |
||||||||||||||||||||||||
| Fourth Quarter |
$ | $ | $ | ( |
)% | ( |
)% | $ | 0.41 | |||||||||||||||
| Third Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
| Second Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
| First Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
| Fiscal 2022 |
||||||||||||||||||||||||
| Fourth Quarter |
$ | $ | $ | ( |
)% | ( |
)% | $ | 0.41 | |||||||||||||||
| Third Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
| Second Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
| First Quarter |
( |
) | ( |
) | 0.41 | |||||||||||||||||||
(1) |
NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The net asset values shown are based on outstanding shares at the end of each period. |
(2) |
Calculated as of the respective high or low closing price divided by NAV and subtracting 1. |
(3) |
Represents the cash distribution for the specified quarter. |

| Stockholder transaction expenses: |
||||
| Sales load (as a percentage of offering price) |
% (1) | |||
| Offering expenses (as a percentage of offering price) |
% (2) | |||
| Dividend reinvestment plan expenses |
% (3) | |||
| Total stockholder transaction expenses (as a percentage of offering price) |
% (2) | |||
| Annual expenses (as a percentage of net assets attributable to common stock) (4) : |
||||
| Base management fee |
% (5) | |||
| Incentive fees payable under the Advisory Agreement (up to 20%) |
% (6) | |||
| Interest payments on borrowed funds |
% (7) | |||
| Acquired fund fees and expenses |
% (8) | |||
| Other expenses (estimated) |
% (9) | |||
| Total annual expenses |
% |
(1) |
In the event that the shares of common stock are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load and the “Example” will be updated accordingly. |
(2) |
The prospectus supplement corresponding to each offering will disclose the applicable offering expenses and total stockholder transaction expenses. |
(3) |
The expenses of the dividend reinvestment plan are included in “other expenses.” |
(4) |
Annual Expenses are presented in this manner because common stockholders will bear all costs of running the Company. |
(5) |
Our 1.50% base management fee under the Advisory Agreement (giving effect to the Letter Agreement) is based on our gross assets, which is defined as all the assets of SLRC, excluding temporary assets, including those acquired using borrowings for investment purposes, and assumes our gross assets remain consistent with gross assets for the fiscal year ended December 31, 2023. The base management fee is reduced to 1.00% on gross assets that exceed 200% of total net assets as of the immediately preceding quarter. |
(6) |
Assumes that annual incentive fees earned by our investment adviser, SLR Capital Partners, remain consistent with the incentive fees earned by SLR Capital Partners for the fiscal year ended December 31, 2023. The incentive fee consists of two parts: |
| • | no incentive fee is payable to our investment adviser in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the Hurdle of 1.75%; |
| • | 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized) is payable to our investment adviser. We refer to this portion of our Pre-Incentive Fee Net Investment Income (which exceeds the Hurdle but is less than 2.1875%) as the “catch-up.” The “catch-up” is meant to provide our investment adviser with 20% of our |
| Pre-Incentive Fee Net Investment Income, as if a Hurdle did not apply when our Pre-Incentive Fee Net Investment Income exceeds 2.1875% in any calendar quarter; and |
| • | 20% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to our investment adviser (once the Hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Investment Income thereafter is allocated to our investment adviser). |
(7) |
We have historically and will in the future borrow funds from time to time to make investments to the extent we determine that the economic situation is conducive to doing so. The costs associated with our outstanding borrowings are indirectly borne by our investors. For purposes of this section, we have computed interest expense using the average consolidated balance outstanding for borrowings during the fiscal year ended December 31, 2023. We used SOFR or a similar base rate on December 31, 2023 and the interest rate on the Credit Facility, the SPV Credit Facility, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes, the 2026 Unsecured Notes, the 2025 Unsecured Notes and the 2024 Unsecured Notes on December 31, 2023. We have also included, as applicable, the estimated market discount or amortization of fees incurred in establishing the Credit Facility, the SPV Credit Facility, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes, the 2026 Unsecured Notes, the 2025 Unsecured Notes and the 2024 Unsecured Notes as of December 31, 2023. Additionally, we included the estimated cost of commitment fees for unused balances on the Credit Facility and the SPV Credit Facility. As of December 31, 2023, we had $507.0 million outstanding under the Credit Facility, $206.3 million outstanding under the SPV Credit Facility and $135 million, $50 million, $75 million, $125 million and $85 million outstanding under the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes, the 2026 Unsecured Notes, the 2025 Unsecured Notes and the 2024 Unsecured Notes, respectively. We may also issue preferred stock, subject to our compliance with applicable requirements under the 1940 Act, although we have no immediate intention to do so. |
(8) |
The holders of shares of our common stock indirectly bear the expenses of our investment in SLR Senior Lending Program LLC (“SSLP”). No management fee is charged on our investments in SSLP in connection with the administrative services provided to SSLP. Future expenses for SSLP may be substantially higher or lower because certain expenses may fluctuate over time. |
(9) |
“Other expenses” are based on estimated amounts for the current fiscal year, which considers the amounts incurred for the fiscal year ended December 31, 2023 and include our overhead expenses, including payments under our Administration Agreement based on our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement. |
1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||
| You would pay the following expenses on a $1,000 investment, assuming a 5% annual return |
$ | $ | $ | $ | ||||||||||||
1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||
| You would pay the following expenses on a $1,000 investment, assuming a 5% annual return |
$ | $ | $ | $ | ||||||||||||
Item 6. |
Reserved |
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| • | our future operating results, including our ability to achieve objectives; |
| • | our business prospects and the prospects of our portfolio companies; |
| • | the impact of investments that we expect to make; |
| • | our contractual arrangements and relationships with third parties; |
| • | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
| • | the impact of any protracted decline in the liquidity of credit markets on our business; |
| • | the ability of our portfolio companies to achieve their objectives; |
| • | the valuation of our investments in portfolio companies, particularly those having no liquid trading market; |
| • | market conditions and our ability to access alternative debt markets and additional debt and equity capital; |
| • | our expected financings and investments; |
| • | the adequacy of our cash resources and working capital; |
| • | the timing of cash flows, if any, from the operations of our portfolio companies; |
| • | the ability of the Investment Adviser to locate suitable investments for us and to monitor and administer our investments; |
| • | the ability of the Investment Adviser to attract and retain highly talented professionals; |
| • | the ability of the Investment Adviser to adequately allocate investment opportunities among the Company and its other advisory clients; |
| • | any conflicts of interest posed by the structure of the management fee and incentive fee to be paid to the Investment Adviser; |
| • | changes in political, economic or industry conditions, relations between the United States, Russia, Ukraine and other nations, the interest rate environment, certain regional bank failures or conditions affecting the financial and capital markets; |
| • | the escalating conflict in the Middle East; |
| • | changes in the general economy, slowing economy, rising inflation, risk of recession and risks in respect of a failure to increase the U.S. debt ceiling; and |
| • | our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies’ supply chains and operations. |
| • | an economic downturn could impair our portfolio companies’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies; |
| • | a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities; |
| • | interest rate volatility could adversely affect our results, particularly because we use leverage as part of our investment strategy; |
| • | currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars; and |
| • | the risks, uncertainties and other factors we identify in Item 1A. — Risk Factors contained in this Annual Report on Form 10-K for the year ended December 31, 2023 and in our other filings with the SEC. |
| • | the cost of our organization and public offerings; |
| • | the cost of calculating our net asset value, including the cost of any third-party valuation services; |
| • | the cost of effecting sales and repurchases of our shares and other securities; |
| • | interest payable on debt, if any, to finance our investments; |
| • | fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees; |
| • | transfer agent and custodial fees; |
| • | fees and expenses associated with marketing efforts; |
| • | federal and state registration fees, any stock exchange listing fees; |
| • | federal, state and local taxes; |
| • | independent directors’ fees and expenses; |
| • | brokerage commissions; |
| • | fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums; |
| • | direct costs and expenses of administration, including printing, mailing, long distance telephone and staff; |
| • | fees and expenses associated with independent audits and outside legal costs; |
| • | costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and |
| • | all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our chief compliance officer and our chief financial officer and their respective staffs. |
* |
We have included SLR Credit Solutions, SLR Equipment Finance, SLR Healthcare ABL, SLR Business Credit and Kingsbridge Holdings, LLC within our income producing investment portfolio. |
Description |
Industry |
Spread Above Index (1) |
Floor |
Interest Rate (2) |
Maturity Date |
Par Amount |
Cost |
Fair Value (3) |
||||||||||||||||||||||
Aegis Toxicology Sciences Corporation (4) |
Health Care Providers & Services | S+550 | 1.00 | % | 11.13 | % | 5/9/25 | $ | 2,947 | $ | 2,947 | $ | 2,947 | |||||||||||||||||
Alkeme Intermediary Holdings, LLC (4) |
Insurance | S+650 | 1.00 | % | 11.96 | % | 10/28/26 | 3,017 | 2,934 | 3,017 | ||||||||||||||||||||
All States Ag Parts, LLC (4) |
Trading Companies & Distributors | S+600 | 1.00 | % | 11.61 | % | 9/1/26 | 2,133 | 2,133 | 2,133 | ||||||||||||||||||||
Apex Service Partners, LLC |
Diversified Consumer Services | S+700 | 1.00 | % | 11.87 | % | 10/24/30 | 4,905 | 4,784 | 4,783 | ||||||||||||||||||||
Atria Wealth Solutions, Inc. (4) |
Diversified Financial Services | S+650 | 1.00 | % | 11.97 | % | 5/31/24 | 2,468 | 2,468 | 2,468 | ||||||||||||||||||||
BayMark Health Services, Inc. (4) |
Health Care Providers & Services | S+500 | 1.00 | % | 10.61 | % | 6/11/27 | 4,033 | 4,033 | 4,033 | ||||||||||||||||||||
CC SAG Holdings Corp. (4) |
Diversified Consumer Services | S+575 | 0.75 | % | 11.22 | % | 6/29/28 | 8,969 | 8,969 | 8,969 | ||||||||||||||||||||
CVAUSA Management, LLC (4) |
Health Care Providers & Services | S+650 | 1.00 | % | 11.74 | % | 5/22/29 | 5,412 | 5,251 | 5,412 | ||||||||||||||||||||
ENS Holdings III Corp. & ES Opco USA LLC (4) |
Trading Companies & Distributors | S+475 | 1.00 | % | 10.20 | % | 12/31/25 | 1,086 | 1,086 | 1,086 | ||||||||||||||||||||
Erie Construction Mid-west, LLC |
Building Products | S+475 | 1.00 | % | 10.20 | % | 7/30/27 | 8,457 | 8,457 | 8,457 | ||||||||||||||||||||
Fertility (ITC) Investment Holdco, LLC (4) |
Health Care Providers & Services | S+650 | 1.00 | % | 11.97 | % | 1/3/29 | 5,955 | 5,791 | 5,955 | ||||||||||||||||||||
Foundation Consumer Brands, LLC (4) |
Personal Products | S+625 | 1.00 | % | 11.79 | % | 2/12/27 | 8,641 | 8,641 | 8,641 | ||||||||||||||||||||
GSM Acquisition Corp. (4) |
Leisure Equipment & Products | S+500 | 1.00 | % | 10.47 | % | 11/16/26 | 8,541 | 8,541 | 8,541 | ||||||||||||||||||||
Higginbotham Insurance Agency, Inc. (4) |
Insurance | S+550 | 1.00 | % | 10.96 | % | 11/25/28 | 7,573 | 7,573 | 7,573 | ||||||||||||||||||||
High Street Buyer, Inc. |
Insurance | S+575 | 0.75 | % | 11.25 | % | 4/16/28 | 7,604 | 7,604 | 7,604 | ||||||||||||||||||||
iCIMS, Inc. (4) |
Software | S+725 | 0.75 | % | 12.62 | % | 8/18/28 | 3,089 | 3,066 | 3,089 | ||||||||||||||||||||
Kaseya, Inc. (4) |
Software | S+600 | 0.75 | % | 11.38 | % | 6/23/29 | 9,058 | 9,058 | 9,058 | ||||||||||||||||||||
Kid Distro Holdings, LLC (4) |
Software | S+550 | 1.00 | % | 11.00 | % | 10/1/27 | 8,939 | 8,939 | 8,939 | ||||||||||||||||||||
Maxor Acquisition, Inc. (4) |
Health Care Providers & Services | S+675 | 1.00 | % | 12.48 | % | 3/1/29 | 6,120 | 5,940 | 6,120 | ||||||||||||||||||||
ONS MSO, LLC (4) |
Health Care Providers & Services | S+625 | 1.00 | % | 11.62 | % | 7/8/26 | 5,922 | 5,784 | 5,922 | ||||||||||||||||||||
Pinnacle Treatment Centers, Inc. (4) |
Health Care Providers & Services | S+650 | 1.00 | % | 11.95 | % | 1/2/26 | 6,951 | 6,951 | 6,951 | ||||||||||||||||||||
Plastics Management, LLC (4) |
Health Care Providers & Services | S+500 | 1.00 | % | 10.45 | % | 8/18/27 | 5,637 | 5,471 | 5,637 | ||||||||||||||||||||
RQM+ Corp. (4) |
Life Sciences Tools & Services | S+575 | 1.00 | % | 11.36 | % | 8/12/26 | 5,955 | 5,955 | 5,955 | ||||||||||||||||||||
RxSense Holdings LLC (4) |
Diversified Consumer Services | S+500 | 1.00 | % | 10.48 | % | 3/13/26 | 8,968 | 8,968 | 8,968 | ||||||||||||||||||||
SunMed Group Holdings, LLC (4) |
Health Care Equipment & Supplies | S+550 | 0.75 | % | 10.96 | % | 6/16/28 | 8,948 | 8,948 | 8,948 | ||||||||||||||||||||
The Townsend Company, LLC (4) |
Commercial Services & Supplies | S+625 | 1.00 | % | 11.61 | % | 8/15/29 | 3,642 | 3,555 | 3,642 | ||||||||||||||||||||
Tilley Distribution, Inc. (4) |
Trading Companies & Distributors | S+600 | 1.00 | % | 11.50 | % | 12/31/26 | 5,850 | 5,850 | 5,850 | ||||||||||||||||||||
Ultimate Baked Goods Midco LLC (4) |
Packaged Foods & Meats | S+625 | 1.00 | % | 11.71 | % | 8/13/27 | 8,954 | 8,954 | 8,865 | ||||||||||||||||||||
United Digestive MSO Parent, LLC (4) |
Health Care Providers & Services | S+675 | 1.00 | % | 12.25 | % | 3/30/29 | 3,411 | 3,311 | 3,411 | ||||||||||||||||||||
Urology Management Holdings, Inc. (4) |
Health Care Providers & Services | S+650 | 1.00 | % | 11.93 | % | 6/15/26 | 3,179 | 3,102 | 3,155 | ||||||||||||||||||||
Vessco Midco Holdings, LLC (4) |
Water Utilities | S+450 | 1.00 | % | 9.96 | % | 11/2/26 | 4,304 | 4,304 | 4,304 | ||||||||||||||||||||
West-NR Parent, Inc.(4) |
Insurance | S+625 | 1.00 | % | 11.70 | % | 12/27/27 | 6,822 | 6,691 | 6,822 | ||||||||||||||||||||
| $ | 186,059 | $ | 187,255 | |||||||||||||||||||||||||||
| (1) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor. |
| (2) | Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2023. |
| (3) | Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. |
| (4) | The Company also holds this security on its Consolidated Statements of Assets and Liabilities. |
Description |
Industry |
Spread Above Index (1) |
Floor |
Interest Rate (2) |
Maturity Date |
Par Amount |
Cost |
Fair Value (3) |
||||||||||||||||||||||
Atria Wealth Solutions, Inc. (4) |
Diversified Financial Services | S+600 | 1.00 | % | 10.84 | % | 2/29/24 | $ | 2,494 | $ | 2,494 | $ | 2,494 | |||||||||||||||||
BayMark Health Services, Inc. (4) |
Health Care Providers & Services | L+500 | 1.00 | % | 9.73 | % | 6/11/27 | 2,992 | 2,992 | 2,992 | ||||||||||||||||||||
ENS Holdings III Corp. & ES Opco USA LLC (4) |
Trading Companies & Distributors | L+475 | 1.00 | % | 9.43 | % | 12/31/25 | 1,097 | 1,097 | 1,097 | ||||||||||||||||||||
Foundation Consumer Brands, LLC (4) |
Personal Products | L+550 | 1.00 | % | 10.15 | % | 2/12/27 | 2,963 | 2,963 | 2,963 | ||||||||||||||||||||
High Street Buyer, Inc. (4) |
Insurance | L+600 | 0.75 | % | 10.73 | % | 4/16/28 | 2,494 | 2,494 | 2,494 | ||||||||||||||||||||
Ivy Fertility Services, LLC (4) |
Health Care Providers & Services | L+625 | 1.00 | % | 10.39 | % | 2/25/26 | 3,000 | 3,000 | 3,030 | ||||||||||||||||||||
Kid Distro Holdings, LLC (4) |
Software | L+575 | 1.00 | % | 10.48 | % | 10/1/27 | 2,992 | 2,992 | 2,992 | ||||||||||||||||||||
| $ | 18,032 | $ | 18,062 | |||||||||||||||||||||||||||
| (1) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or SOFR. These instruments are typically subject to a LIBOR or SOFR floor. |
| (2) | Floating rate debt investments typically bear interest at a rate determined by reference to either the LIBOR (“L”) or SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2022. |
| (3) | Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. |
| (4) | The Company also holds this security on its Consolidated Statements of Assets and Liabilities. |
December 31, 2023 |
December 31, 2022 |
|||||||
Selected Balance Sheet Information for SSLP (in thousands): |
||||||||
Investments at fair value (cost $186,059 and $18,032, respectively) |
$ | 187,255 | $ | 18,062 | ||||
Cash and other assets. |
8,613 | 1,043 | ||||||
Total assets |
$ | 195,868 | $ | 19,105 | ||||
Debt outstanding ($106,900 and $0 face amounts, respectively, reported net of unamortized debt issuance costs of $1,697 and $0, respectively) |
$ | 105,203 | $ | — | ||||
Distributions payable |
1,900 | — | ||||||
Interest payable and other credit facility related expenses |
551 | 165 | ||||||
Accrued expenses and other payables |
416 | 89 | ||||||
Total liabilities |
$ | 108,070 | $ | 254 | ||||
Members’ equity |
$ | 87,798 | $ | 18,851 | ||||
Total liabilities and members’ equity |
$ | 195,868 | $ | 19,105 | ||||
Year ended December 31, 2023 |
For the Period December 1, 2022 (commencement of operations) through December 31, 2022 |
|||||||
Selected Income Statement Information for SSLP (in thousands): |
||||||||
Interest income |
$ | 10,209 | $ | 152 | ||||
Service fees* |
$ | 224 | $ | 4 | ||||
Interest and other credit facility expenses |
6,517 | 166 | ||||||
Organizational costs |
— | 73 | ||||||
Other general and administrative expenses |
195 | 88 | ||||||
Total expenses |
$ | 6,936 | $ | 331 | ||||
Net investment income (loss). |
$ | 3,273 | $ | (179 | ) | |||
Realized gain on investments |
30 | — | ||||||
Net change in unrealized gain on investments |
1,166 | 30 | ||||||
Net realized and unrealized gain on investments |
1,196 | 30 | ||||||
Net income (loss). |
$ | 4,469 | $ | (149 | ) | |||
| * | Service fees are included within the Company’s Consolidated Statements of Operations as other income. |
Total |
Less than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
||||||||||||||||
Revolving credit facilities (1) |
$ | 613.3 | $ | — | $ | 613.3 | $ | — | $ | — | ||||||||||
Unsecured senior notes |
470.0 | 125.0 | 160.0 | 185.0 | — | |||||||||||||||
Term loans |
100.0 | — | 100.0 | — | — | |||||||||||||||
| (1) | As of December 31, 2023, we had a total of $246.8 million of unused borrowing capacity under our revolving credit facilities, subject to borrowing base limits. |
| Class and Year |
Total Amount Outstanding(1) |
Asset Coverage Per Unit(2) |
Involuntary Liquidating Preference Per Unit(3) |
Average Market Value Per Unit(4) |
||||||||||||
| Credit Facility |
||||||||||||||||
| Fiscal 2023 |
$ | $ | N/A | |||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
N/A | |||||||||||||||
| Fiscal 2015 |
N/A | |||||||||||||||
| Fiscal 2014 |
N/A | |||||||||||||||
| Fiscal 2013 |
N/A | |||||||||||||||
| SPV Credit Facility |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| 2022 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
N/A | |||||||||||||||
| Class and Year |
Total Amount Outstanding(1) |
Asset Coverage Per Unit(2) |
Involuntary Liquidating Preference Per Unit(3) |
Average Market Value Per Unit(4) |
||||||||||||
| 2022 Tranche C Notes |
||||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| 2023 Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| 2024 Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| 2025 Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| 2026 Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| 2027 Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| 2027 Series F Unsecured Notes |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| 2042 Unsecured Notes |
||||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
$ | |||||||||||||||
| Fiscal 2015 |
||||||||||||||||
| Fiscal 2014 |
||||||||||||||||
| Fiscal 2013 |
||||||||||||||||
| Senior Secured Notes |
||||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
N/A | |||||||||||||||
| Fiscal 2015 |
N/A | |||||||||||||||
| Fiscal 2014 |
N/A | |||||||||||||||
| Fiscal 2013 |
N/A | |||||||||||||||
| Class and Year |
Total Amount Outstanding(1) |
Asset Coverage Per Unit(2) |
Involuntary Liquidating Preference Per Unit(3) |
Average Market Value Per Unit(4) |
||||||||||||
| Term Loans |
||||||||||||||||
| Fiscal 2023 |
N/A | |||||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
N/A | |||||||||||||||
| Fiscal 2015 |
N/A | |||||||||||||||
| Fiscal 2014 |
N/A | |||||||||||||||
| Fiscal 2013 |
N/A | |||||||||||||||
| NEFPASS Facility |
||||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| SSLP Facility |
||||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Total Senior Securities |
||||||||||||||||
| Fiscal 2023 |
$ | $ | N/A | |||||||||||||
| Fiscal 2022 |
N/A | |||||||||||||||
| Fiscal 2021 |
N/A | |||||||||||||||
| Fiscal 2020 |
N/A | |||||||||||||||
| Fiscal 2019 |
N/A | |||||||||||||||
| Fiscal 2018 |
N/A | |||||||||||||||
| Fiscal 2017 |
N/A | |||||||||||||||
| Fiscal 2016 |
N/A | |||||||||||||||
| Fiscal 2015 |
N/A | |||||||||||||||
| Fiscal 2014 |
N/A | |||||||||||||||
| Fiscal 2013 |
N/A | |||||||||||||||
| (1) | Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented. |
| (2) | The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by all senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the Asset Coverage Per Unit. In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period. As of December 31, 2023, asset coverage was 183.4%. |
| (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. |
| (4) | Not applicable except for the 2042 Unsecured Notes which were publicly traded. The Average Market Value Per Unit is calculated by taking the daily average closing price during the period and dividing it by twenty-five dollars per share and multiplying the result by one thousand to determine a unit price per thousand consistent with Asset Coverage Per Unit. The average market value for the fiscal 2016, 2015, 2014 and 2013 periods was $100,175, $98,196, $94,301 and $93,392, respectively. |
Year ended December 31, 2018 |
Year ended December 31, 2017 |
Year ended December 31, 2016 |
Year ended December 31, 2015 |
Year ended December 31, 2014 |
||||||||||||||||
| Per Share Data: (a) |
||||||||||||||||||||
| Net asset value, beginning of year |
$ | 21.81 | $ | 21.74 | $ | 20.79 | $ | 22.05 | $ | 22.50 | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net investment income |
1.77 | 1.62 | 1.68 | 1.52 | 1.56 | |||||||||||||||
| Net realized and unrealized gain (loss) |
(0.19 | ) | 0.05 | 0.84 | (1.18 | ) | (0.43 | ) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net increase in net assets resulting from operations |
1.58 | 1.67 | 2.52 | 0.34 | 1.13 | |||||||||||||||
| Distributions to stockholders (see note 8a): |
— | |||||||||||||||||||
| From net investment income |
— | (1.60 | ) | (1.60 | ) | (1.60 | ) | (1.55 | ) | |||||||||||
| From net realized gains |
— | — | — | — | ||||||||||||||||
| From return of capital |
(1.64 | ) | — | — | — | (0.05 | ) | |||||||||||||
| Anti-dilution |
— | — | 0.03 | — | 0.02 | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net asset value, end of year |
$ | 21.75 | $ | 21.81 | $ | 21.74 | $ | 20.79 | $ | 22.05 | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Per share market value, end of year |
$ | 19.19 | $ | 20.21 | $ | 20.82 | $ | 16.43 | $ | 18.01 | ||||||||||
| Total Return(b) |
2.77 | % | 4.47 | % | 37.49 | % | (0.29 | )% | (13.58 | )% | ||||||||||
| Net assets, end of year |
$ | 919,171 | $ | 921,605 | $ | 918,507 | $ | 882,698 | $ | 936,568 | ||||||||||
| Shares outstanding, end of year |
42,260,826 | 42,260,826 | 42,248,525 | 42,464,762 | 42,465,162 | |||||||||||||||
| Ratios to average net assets: |
||||||||||||||||||||
| Net investment income |
8.10 | % | 7.43 | % | 7.91 | % | 6.94 | % | 6.93 | % | ||||||||||
| Operating expenses |
5.83 | % | 5.80 | % | 6.25 | % | 3.84 | %* | 4.24 | % | ||||||||||
| Interest and other credit facility expenses** |
2.67 | % | 2.35 | % | 2.73 | % | 1.68 | % | 1.50 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total expenses |
8.50 | % | 8.15 | % | 8.98 | % | 5.52 | %* | 5.74 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Average debt outstanding |
$ | 508,445 | $ | 414,264 | $ | 495,795 | $ | 262,341 | $ | 225,000 | ||||||||||
| Portfolio turnover ratio |
39.3 | % | 24.9 | % | 31.0 | % | 13.0 | % | 53.7 | % | ||||||||||
| (a) | Calculated using the average shares outstanding method. |
| (b) | Total return is based on the change in market price per share during the year and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. Total return does not include a sales load. |
| * | The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of a voluntary incentive fee waiver (see note 3). For the year ended December 31, 2015, the ratios of operating expenses to average net assets and total expenses to average net assets would be 4.02% and 5.70%, respectively, without the voluntary incentive fee waiver. |
| ** | Ratios shown without the non-recurring costs associated with the amendments and establishment of the Credit Facility and 2022 Unsecured Notes would be 2.67%, 2.29%, 2.39%, 1.68% and 1.50%, respectively for the years shown. |
December 31, 2023 |
December 31, 2022 |
|||||||
(in millions) |
||||||||
| SLR Credit Solutions* |
$ |
44.3 |
$ |
44.3 |
||||
| Orthopedic Care Partners Management, LLC |
20.8 |
1.6 |
||||||
| Southern Orthodontic Partners Management, LLC |
17.9 |
1.9 |
||||||
| Ardelyx, Inc. |
15.9 |
7.8 |
||||||
| CVAUSA Management, LLC |
10.2 |
— |
||||||
| BDG Media, Inc. |
10.1 |
3.5 |
||||||
| iCIMS, Inc. |
9.8 |
11.4 |
||||||
| Retina Midco, Inc. |
9.4 |
— |
||||||
| Alkeme Intermediate Holdings, LLC |
8.5 |
— |
||||||
| SPAR Marketing Force, Inc. |
8.3 |
1.3 |
||||||
| SLR Senior Lending Program LLC* |
7.1 |
40.5 |
||||||
| Copper River Seafoods, Inc. |
7.1 |
3.6 |
||||||
| Legacy Service Partners, LLC |
5.4 |
— |
||||||
| Peter C. Foy & Associates Insurance Services, LLC |
5.1 |
1.1 |
||||||
| West-NR Parent, Inc. |
5.0 |
— |
||||||
| Luxury Asset Capital, LLC |
4.5 |
7.5 |
||||||
| One Touch Direct, LLC |
4.1 |
3.1 |
||||||
| DeepIntent, Inc. |
3.9 |
3.1 |
||||||
| United Digestive MSO Parent, LLC |
3.9 |
— |
||||||
| Kaseya, Inc. |
3.8 |
3.9 |
||||||
| The Townsend Company, LLC |
3.3 |
— |
||||||
| Vertos Medical, Inc. |
3.3 |
— |
||||||
| AMF Levered II, LLC |
3.2 |
— |
||||||
| Foundation Consumer Brands, LLC |
3.0 |
3.0 |
||||||
| UVP Management, LLC. |
2.9 |
— |
||||||
| Kid Distro Holdings, LLC |
2.7 |
2.7 |
||||||
| Erie Construction Mid-west, LLC |
2.4 |
1.3 |
||||||
| Ultimate Baked Goods Midco LLC |
2.4 |
1.6 |
||||||
| Basic Fun, Inc |
2.1 |
2.7 |
||||||
| SLR Equipment Finance* |
2.1 |
1.0 |
||||||
| Bayside Opco, LLC |
2.1 |
— |
||||||
| SunMed Group Holdings, LLC |
1.6 |
0.8 |
||||||
| Urology Management Holdings, Inc. |
1.5 |
— |
||||||
| SLR Healthcare ABL* |
1.4 |
1.4 |
||||||
| RxSense Holdings LLC |
1.3 |
1.3 |
||||||
| Tilley Distribution, Inc. |
1.2 |
0.5 |
||||||
| SCP Eye Care, LLC |
1.0 |
2.8 |
||||||
| GSM Acquisition Corp. |
0.9 |
0.8 |
||||||
| Medrina, LLC |
0.8 |
— |
||||||
| Pinnacle Treatment Centers, Inc. |
0.6 |
1.7 |
||||||
| High Street Buyer, Inc. |
0.6 |
0.3 |
||||||
December 31, 2023 |
December 31, 2022 |
|||||||
(in millions) |
||||||||
ENS Holdings III Corp, LLC |
0.6 | 0.1 | ||||||
CC SAG Holdings Corp. (Spectrum Automotive) |
0.5 | 20.7 | ||||||
Crewline Buyer, Inc. |
0.5 | — | ||||||
Exactcare Parent, Inc. |
0.4 | — | ||||||
WCI-BXC Purchaser, LLC |
0.3 | — | ||||||
All States Ag Parts, LLC |
0.3 | 0.1 | ||||||
Vessco Midco Holdings, LLC |
0.3 | 3.9 | ||||||
TAUC Management, LLC |
0.3 | 0.3 | ||||||
Outset Medical, Inc. |
— | 35.1 | ||||||
Apeel Technology, Inc. |
— | 32.8 | ||||||
Human Interest, Inc. |
— | 20.1 | ||||||
Glooko, Inc. |
— | 17.9 | ||||||
World Insurance Associates, LLC |
— | 17.1 | ||||||
Spectrum Pharmaceuticals, Inc. |
— | 8.8 | ||||||
Arcutis Biotherapeutics, Inc. |
— | 8.4 | ||||||
Atria Wealth Solutions, Inc. |
— | 8.2 | ||||||
Accession Risk Management Group, Inc. |
— | 7.5 | ||||||
Cerapedics, Inc. |
— | 6.7 | ||||||
Maurices, Incorporated |
— | 4.3 | ||||||
Meditrina, Inc. |
— | 3.4 | ||||||
Plastics Management, LLC |
— | 2.4 | ||||||
Pediatric Home Respiratory Services, LLC |
— | 1.8 | ||||||
Ivy Fertility Services, LLC |
— | 1.6 | ||||||
Composite Technology Acquisition Corp. |
— | 1.5 | ||||||
NAC Holdings Corporation |
— | 1.5 | ||||||
Montefiore Nyack Hospital |
— | 1.0 | ||||||
Enverus Holdings, Inc. |
— | 1.0 | ||||||
American Teleconferencing Services, Ltd. |
— | 1.1 | ||||||
BayMark Health Services, Inc. |
— | 0.4 | ||||||
Total Commitments |
$ | 248.7 | $ | 364.2 | ||||
| * | The Company controls the funding of these commitments and may cancel them at its discretion |
Date Declared |
Record Date |
Payment Date |
Amount |
|||||||||
Fiscal 2024 |
||||||||||||
February 27, 2024 |
March 14, 2024 | March 28, 2024 | $ | 0.41 | ||||||||
Total 2024 |
$ | 0.41 | ||||||||||
Fiscal 2023 |
||||||||||||
November 7, 2023 |
December 14, 2023 | December 28, 2023 | $ | 0.41 | ||||||||
September 5, 2023 |
September 20, 2023 | September 28, 2023 | 0.136667 | |||||||||
August 8, 2023 |
August 18, 2023 | August 30, 2023 | 0.136667 | |||||||||
July 5, 2023 |
July 20, 2023 | August 1, 2023 | 0.136667 | |||||||||
June 1, 2023 |
June 20, 2023 | June 29, 2023 | 0.136667 | |||||||||
May 10, 2023 |
May 24, 2023 | June 1, 2023 | 0.136667 | |||||||||
April 4, 2023 |
April 20, 2023 | May 2, 2023 | 0.136667 | |||||||||
February 28, 2023 |
March 23, 2023 | April 4, 2023 | 0.136667 | |||||||||
February 2, 2023 |
February 16, 2023 | March 1, 2023 | 0.136667 | |||||||||
January 10, 2023. |
January 26, 2023 | February 2, 2023 | 0.136667 | |||||||||
Total 2023 |
$ | 1.64 | ||||||||||
Fiscal 2022 |
||||||||||||
December 6, 2022 |
December 22, 2022 | January 5, 2023 | $ | 0.136667 | ||||||||
November 2, 2022 |
November 17, 2022 | December 1, 2022 | 0.136667 | |||||||||
October 5, 2022 |
October 20, 2022 | November 2, 2022 | 0.136667 | |||||||||
September 2, 2022 |
September 20, 2022 | October 4, 2022 | 0.136667 | |||||||||
August 2, 2022 |
August 18, 2022 | September 1, 2022 | 0.136667 | |||||||||
July 6, 2022 |
July 21, 2022 | August 2, 2022 | 0.136667 | |||||||||
June 3, 2022 |
June 23, 2022 | July 5, 2022 | 0.136667 | |||||||||
May 3, 2022 |
May 19, 2022 | June 2, 2022 | 0.136667 | |||||||||
April 4, 2022 |
April 21, 2022 | May 3, 2022 | 0.136667 | |||||||||
March 1, 2022 |
March 18, 2022 | April 1, 2022 | 0.41 | |||||||||
Total 2022 |
$ | 1.64 | ||||||||||
| • | We have entered into the Advisory Agreement with the Investment Adviser. Mr. Gross, our Chairman, Co-Chief Executive Officer and President, and Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, the Investment Adviser. In addition, Mr. Kajee, our Chief Financial Officer and Treasurer, serves as the Chief Financial Officer for the Investment Adviser and Mr. Talarico, our Chief Compliance Officer and Secretary, serves as Partner, General Counsel and Chief Compliance Officer for the Investment Adviser. |
| • | The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day |
| • | We have entered into a license agreement with the Investment Adviser, pursuant to which the Investment Adviser has granted us a non-exclusive, royalty-free license to use the licensed marks “SOLAR” and “SLR”. |
Item 7A. |
Quantitative and Qualitative Disclosure About Market Risk |
Increase (Decrease) in SOFR |
(1.00 | %) | 1.00 | % | ||||
Increase (Decrease) in Net Investment Income Per Share Per Year |
$ | (0.06 | ) | $ | 0.06 |
Item 8. |
Financial Statements and Supplementary Data |
Page |
||||
| 107 | ||||
| 108 | ||||
| 111 | ||||
| 112 | ||||
| 113 | ||||
| 114 | ||||
| 115 | ||||
| 136 | ||||
December 31, 2023 |
December 31, 2022 |
|||||||
| Assets |
||||||||
| Investments at fair value: |
||||||||
| Companies less than 5% owned (cost: $ |
$ | $ | ||||||
| Companies 5% to 25% owned (cost: $ |
||||||||
| Companies more than 25% owned (cost: $ |
||||||||
| Cash |
||||||||
| Cash equivalents (cost: $ |
||||||||
| Dividends receivable |
||||||||
| Interest receivable |
||||||||
| Receivable for investments sold |
||||||||
| Prepaid expenses and other assets |
||||||||
| |
|
|
|
|||||
| Total assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Liabilities |
||||||||
| Debt ($ |
$ | $ | ||||||
| Payable for investments and cash equivalents purchased |
||||||||
| Distributions payable |
||||||||
| Management fee payable (see note 3) |
||||||||
| Performance-based incentive fee payable (see note 3) |
||||||||
| Interest payable (see note 7) |
||||||||
| Administrative services payable (see note 3) |
||||||||
| Other liabilities and accrued expenses |
||||||||
| |
|
|
|
|||||
| Total liabilities |
$ | $ | ||||||
| |
|
|
|
|||||
| Commitments and contingencies (see note 15) |
||||||||
| Net Assets |
||||||||
| Common stock, par value $ |
$ | $ | ||||||
| Paid-in capital in excess of par (see note 2f) |
||||||||
| Accumulated distributable net loss (see note 2f) |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Total net assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Net Asset Value Per Share |
$ | $ | ||||||
| |
|
|
|
|||||
Year ended December 31, |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
| INVESTMENT INCOME: |
||||||||||||
| Interest: |
||||||||||||
| Companies less than 5% owned |
$ | $ | $ | |||||||||
| Companies 5% to 25% owned |
||||||||||||
| Companies more than 25% owned |
||||||||||||
| Dividends: |
||||||||||||
| Companies less than 5% owned |
||||||||||||
| Companies more than 25% owned |
||||||||||||
| Other income: |
||||||||||||
| Companies less than 5% owned |
||||||||||||
| Companies 5% to 25% owned |
||||||||||||
| Companies more than 25% owned |
||||||||||||
| |
|
|
|
|
|
|||||||
| Total investment income |
||||||||||||
| |
|
|
|
|
|
|||||||
| EXPENSES: |
||||||||||||
| Management fees (see note 3) |
||||||||||||
| Performance-based incentive fees (see note 3) |
||||||||||||
| Interest and other credit facility expenses (see note 7) |
||||||||||||
| Administrative services expense (see note 3) |
||||||||||||
| Other general and administrative expenses |
||||||||||||
| |
|
|
|
|
|
|||||||
| Total expenses |
||||||||||||
| |
|
|
|
|
|
|||||||
| Performance-based incentive fees waived (see note 3) |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net expenses |
||||||||||||
| |
|
|
|
|
|
|||||||
| Net investment income |
$ | $ | $ | |||||||||
| |
|
|
|
|
|
|||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: |
||||||||||||
| Net realized gain (loss) on investments and cash equivalents: |
||||||||||||
| Companies less than 5% owned |
$ | ( |
) | $ | ( |
) | $ | |||||
| Companies more than 25% owned |
( |
) | ||||||||||
| |
|
|
|
|
|
|||||||
| Net realized gain (loss) on investments and cash equivalents |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net change in unrealized gain (loss) on investments: |
||||||||||||
| Companies less than 5% owned |
( |
) | ( |
) | ||||||||
| Companies 5% to 25% owned |
( |
) | ||||||||||
| Companies more than 25% owned |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net change in unrealized gain (loss) on investments |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net realized and unrealized loss on investments and cash equivalents |
( |
) | ( |
) | ( |
) | ||||||
| |
|
|
|
|
|
|||||||
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | $ | $ | |||||||||
| |
|
|
|
|
|
|||||||
| EARNINGS PER SHARE (see note 5) |
$ | $ | $ | |||||||||
| |
|
|
|
|
|
|||||||
Year ended December 31, |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
| Increase (decrease) in net assets resulting from operations: |
||||||||||||
| Net investment income |
$ | $ | $ | |||||||||
| Net realized gain (loss) |
( |
) | ( |
) | ||||||||
| Net change in unrealized gain (loss) |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net increase in net assets resulting from operations |
||||||||||||
| |
|
|
|
|
|
|||||||
| Distributions to stockholders (see note 8a): |
||||||||||||
| From distributable earnings |
( |
) | ( |
) | ( |
) | ||||||
| From return of capital |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net distributions to stockholders |
( |
) | ( |
) | ( |
) | ||||||
| |
|
|
|
|
|
|||||||
| Capital transactions (see note 16): |
||||||||||||
| Issuance of common stock |
||||||||||||
| Repurchases of common stock |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from capital transactions |
( |
) | ||||||||||
| |
|
|
|
|
|
|||||||
| Total increase (decrease) in net assets |
( |
) | ( |
) | ||||||||
| Net assets at beginning of year |
||||||||||||
| |
|
|
|
|
|
|||||||
| Net assets at end of year |
$ | $ | $ | |||||||||
| |
|
|
|
|
|
|||||||
| Capital share activity (see note 16): |
||||||||||||
| Issuance of common stock |
||||||||||||
| Repurchases of common stock |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net increase (decrease) from capital share activity |
( |
) | ||||||||||
| |
|
|
|
|
|
|||||||
Year ended December 31, |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
| Cash Flows from Operating Activities: |
||||||||||||
| Net increase in net assets resulting from operations |
$ | $ | $ | |||||||||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: |
||||||||||||
| Net realized (gain) loss on investments and cash equivalents |
( |
) | ||||||||||
| Net change in unrealized (gain) loss on investments |
( |
) | ||||||||||
| Deferred financing costs/market discount |
||||||||||||
| (Increase) decrease in operating assets: |
||||||||||||
| Purchase of investments |
( |
) | ( |
) | ( |
) | ||||||
| Proceeds from disposition of investments |
||||||||||||
| Net accretion of discount on investments |
( |
) | ( |
) | ( |
) | ||||||
| Capitalization of payment-in-kind |
( |
) | ( |
) | ( |
) | ||||||
| Collections of payment-in-kind |
||||||||||||
| Receivable for investments sold |
( |
) | ( |
) | ||||||||
| Interest receivable |
( |
) | ( |
) | ( |
) | ||||||
| Dividends receivable |
( |
) | ( |
) | ( |
) | ||||||
| Prepaid expenses and other assets |
( |
) | ||||||||||
| Cash and other net assets acquired in Mergers |
||||||||||||
| Increase (decrease) in operating liabilities: |
||||||||||||
| Payable for investments and cash equivalents purchased |
( |
) | ( |
) | ||||||||
| Management fee payable |
||||||||||||
| Performance-based incentive fee payable |
||||||||||||
| Administrative services expense payable |
( |
) | ||||||||||
| Interest payable |
( |
) | ||||||||||
| Other liabilities and accrued expenses |
( |
) | ||||||||||
| |
|
|
|
|
|
|||||||
| Net Cash Provided by (Used in) Operating Activities |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Cash Flows from Financing Activities: |
||||||||||||
| Cash distributions paid |
( |
) | ( |
) | ( |
) | ||||||
| Proceeds from unsecured borrowings |
||||||||||||
| Repayment of unsecured borrowings |
( |
) | ( |
) | ||||||||
| Proceeds from secured borrowings |
||||||||||||
| Repayments of secured borrowings |
( |
) | ( |
) | ( |
) | ||||||
| Repurchase of common stock |
( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|||||||
| Net Cash Provided by (Used in) Financing Activities |
( |
) | ||||||||||
| |
|
|
|
|
|
|||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) | ( |
) | ||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
||||||||||||
| |
|
|
|
|
|
|||||||
| CASH AND CASH EQUIVALENTS AT END OF YEAR |
$ | $ | $ | |||||||||
| |
|
|
|
|
|
|||||||
| Supplemental disclosure of cash flow information: |
||||||||||||
| Cash paid for interest |
$ | $ | $ | |||||||||
| Issuance of shares in connection with the Mergers (1) |
||||||||||||
| |
|
|
|
|
|
|||||||
| (1) | On April 1, 2022, in connection with the Mergers (as defined in Note 1 “Organization”), the Company acquired net assets of $ |
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
| Senior Secured Loans — |
| |||||||||||||||||||||||||||||||||
| First Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| Accession Risk Management Group, Inc. (f/k/a RSC Acquisition, Inc.) |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||||
| Aegis Toxicology Sciences Corporation(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Alkeme Intermediary Holdings, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| All States Ag Parts, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Atria Wealth Solutions, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Basic Fun, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| BayMark Health Services, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Bayside Opco, LLC(27) |
S+ |
(11) |
% | % | ||||||||||||||||||||||||||||||
| Bayside Parent, LLC(27) |
S+ |
(11) |
% | % | ||||||||||||||||||||||||||||||
| BDG Media, Inc. |
P+ |
% | % | |||||||||||||||||||||||||||||||
| CC SAG Holdings Corp. (Spectrum Automotive)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Copper River Seafoods, Inc. |
P+ |
% | ||||||||||||||||||||||||||||||||
| Crewline Buyer, Inc. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| CVAUSA Management, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| DeepIntent, Inc. |
P+ |
% | ||||||||||||||||||||||||||||||||
| Enhanced Permanent Capital, LLC(3) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| ENS Holdings III Corp. & ES Opco USA LLC (Bluefin)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Exactcare Parent, Inc. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Fertility (ITC) Investment Holdco, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Foundation Consumer Brands, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| GSM Acquisition Corp. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
| Senior Secured Loans (continued) |
|
|||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency, Inc.(16) |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||||
| Human Interest Inc |
S+ |
% | % | |||||||||||||||||||||||||||||||
| iCIMS, Inc. |
S+ |
% | % (26) |
|||||||||||||||||||||||||||||||
| Kaseya, Inc.(16) |
S+ |
% | % (14) |
|||||||||||||||||||||||||||||||
| Kid Distro Holdings, LLC (Distro Kid)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Kingsbridge Holdings, LLC(2) . |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Logix Holding Company, LLC(16) |
P+ |
% | % | |||||||||||||||||||||||||||||||
| Luxury Asset Capital, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Maxor Acquisition, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Medrina, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| NSPC Intermediate Corp. (National Spine) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| One Touch Direct, LLC. |
P+ |
% | ||||||||||||||||||||||||||||||||
| ONS MSO, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Orthopedic Care Partners Management, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Peter C. Foy & Associates Insurance Services, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Pinnacle Treatment Centers, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Plastics Management, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Retina Midco, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| RQM+ Corp.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| RxSense Holdings LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| SCP Eye Care, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| SHO Holding I Corporation (Shoes for Crews)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
| Senior Secured Loans (continued) |
|
|||||||||||||||||||||||||||||||||
| Southern Orthodontic Partners Management, LLC(16) |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||||
| SPAR Marketing Force, Inc |
P+ |
% | ||||||||||||||||||||||||||||||||
| Stryten Resources LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| SunMed Group Holdings, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| TAUC Management, LLC(16) |
P+ |
% | % | |||||||||||||||||||||||||||||||
| The Townsend Company, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Tilley Distribution, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Ultimate Baked Goods Midco LLC (Rise Baking)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| United Digestive MSO Parent, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Urology Management Holdings, Inc |
S+ |
% | % | |||||||||||||||||||||||||||||||
| UVP Management, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Vessco Midco Holdings, LLC |
P+ |
% | % | |||||||||||||||||||||||||||||||
| WCI-BXC Purchaser, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| West-NR Parent, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total First Lien Bank Debt/Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Second Lien Asset-Based Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| AMF Levered II, LLC |
S+ |
% | % | $ | $ | |||||||||||||||||||||||||||||
| FGI Worldwide LLC |
S+ |
% | % | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Second Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| RD Holdco, Inc.** (2) |
S+ |
(11) |
% | $ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
| Senior Secured Loans (continued) |
|
|||||||||||||||||||||||||||||||||
| First Lien Life Science Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| Alimera Sciences, Inc.(16) |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||||
| Arcutis Biotherapeutics, Inc.(3) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Ardelyx, Inc.(3) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| BridgeBio Pharma, Inc.(3) |
% (22) |
|||||||||||||||||||||||||||||||||
| Cerapedics, Inc. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Glooko, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Meditrina, Inc. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Neuronetics, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| OmniGuide Holdings, Inc. (13) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Outset Medical, Inc.(3)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||||
| Vapotherm, Inc. |
S+ |
% | % (24) |
|||||||||||||||||||||||||||||||
| Vertos Medical, Inc. |
S+ |
% | % | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total First Lien Life Science Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total Senior Secured Loans |
|
$ |
$ |
|||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||
| Equipment Financing — |
||||||||||||||||||||||||
| A&A Crane and Rigging, LLC (10) |
$ | $ | $ | |||||||||||||||||||||
| Aero Operating LLC (10) |
||||||||||||||||||||||||
| AFG Dallas III, LLC (10) |
||||||||||||||||||||||||
| Air Methods Corporation (10) |
||||||||||||||||||||||||
| AmeraMex International, Inc. (10) |
||||||||||||||||||||||||
| Bazzini, LLC (10) |
||||||||||||||||||||||||
| Boart Longyear Company (10) |
||||||||||||||||||||||||
| Bowman Energy Solutions, LLC (10) |
||||||||||||||||||||||||
| C-Port/Stone LLC (10) |
||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||
| Equipment Financing (continued) |
||||||||||||||||||||||||
| Capital City Jet Center, Inc. (10) |
$ | $ | $ | |||||||||||||||||||||
| Carolina’s Contracting, LLC (10) |
||||||||||||||||||||||||
| CKD Holdings, Inc. (10) |
||||||||||||||||||||||||
| Clubcorp Holdings, Inc. (10) |
||||||||||||||||||||||||
| Complete Equipment Rentals, LLC (10) |
||||||||||||||||||||||||
| Dongwon Autopart Technology Inc. (10) |
||||||||||||||||||||||||
| Double S Industrial Contractors, Inc. (10) |
||||||||||||||||||||||||
| Drillers Choice, Inc. (10) |
||||||||||||||||||||||||
| Energy Drilling Services, LLC (10) |
||||||||||||||||||||||||
| Environmental Protection & Improvement Company, LLC (10) |
||||||||||||||||||||||||
| Equipment Operating Leases, LLC (2)(12) |
||||||||||||||||||||||||
| Extreme Steel Crane & Rigging, LLC (10) |
||||||||||||||||||||||||
| First American Commercial Bancorp, Inc. (10) |
||||||||||||||||||||||||
| First National Capital, LLC (10) |
||||||||||||||||||||||||
| Georgia Jet, Inc. (10) |
||||||||||||||||||||||||
| GMT Corporation (10) |
||||||||||||||||||||||||
| Hawkeye Contracting Company, LLC (10) |
||||||||||||||||||||||||
| HTI Logistics Corporation (10) |
||||||||||||||||||||||||
| International Automotive Components Group, North America, Inc. (10) |
||||||||||||||||||||||||
| Kool Pak, LLC (10) |
||||||||||||||||||||||||
| Loc Performance Products, LLC (10) |
||||||||||||||||||||||||
| Loyer Capital LLC (2)(12) |
||||||||||||||||||||||||
| Lux Credit Consultants, LLC (10) |
||||||||||||||||||||||||
| Lux Vending, LLC (10) |
||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||
| Equipment Financing (continued) |
||||||||||||||||||||||||
| Miranda Logistics Enterprise, Inc. (10) |
$ | $ | $ | |||||||||||||||||||||
| Mountain Air Helicopters, Inc. (10) |
||||||||||||||||||||||||
| Nimble Crane LLC (10) |
||||||||||||||||||||||||
| No Limit Construction Services, LLC (10) |
||||||||||||||||||||||||
| Ozzies, Inc. (10) |
||||||||||||||||||||||||
| PCX Aerostructures LLC (10) |
||||||||||||||||||||||||
| Rane Light Metal Castings Inc. (10) |
||||||||||||||||||||||||
| Rango, Inc. (10) |
||||||||||||||||||||||||
| Rayzor’s Edge LLC (10) |
||||||||||||||||||||||||
| RH Land Construction, LLC & Harbor Dredging LA, Inc. (10) |
||||||||||||||||||||||||
| Royal Express Inc. (10) |
||||||||||||||||||||||||
| Rotten Rock Hardscaping & Tree Service (10) |
||||||||||||||||||||||||
| Rutt Services, LLC (10) |
||||||||||||||||||||||||
| Signet Marine Corporation (10) |
||||||||||||||||||||||||
| SLR Equipment Finance(2) |
||||||||||||||||||||||||
| Smiley Lifting Solutions, LLC(10) |
||||||||||||||||||||||||
| ST Coaches, LLC (10) |
||||||||||||||||||||||||
| Star Coaches Inc. (10) |
||||||||||||||||||||||||
| Superior Transportation, Inc. (10) |
||||||||||||||||||||||||
| The Smedley Company & Smedley Services, Inc. (10).. |
||||||||||||||||||||||||
| Trinity Equipment, Inc. (10) |
||||||||||||||||||||||||
| Trinity Equipment Rentals, Inc. (10) |
||||||||||||||||||||||||
| U.S. Crane & Rigging, LLC (10) |
||||||||||||||||||||||||
| Up Trucking Services, LLC (10) |
||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||
| Equipment Financing (continued) |
|
|||||||||||||||||||||||||
| Waste Pro of Florida, Inc. & Waste Pro USA, Inc. (10) |
$ | $ | $ | |||||||||||||||||||||||
| Wind River Environmental, LLC (10) |
||||||||||||||||||||||||||
| Womble Company, Inc. (10) |
||||||||||||||||||||||||||
| Worldwide Flight Services, Inc. (10) |
||||||||||||||||||||||||||
| Zamborelli Enterprises Pacific Souther n Foundation (10) |
||||||||||||||||||||||||||
Shares/Units |
||||||||||||||||||||||||||
| SLR Equipment Finance Equity Interests (2)(9)(17)* |
||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||
| Total Equipment Financing |
|
$ |
$ |
|||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||
Par Amount |
||||||||||||||||||||||||||
| Preferred Equity – |
|
|||||||||||||||||||||||||
| SOINT, LLC (2)(3)(4) |
(11) |
— | $ | $ | ||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||
| Description |
Industry |
Acquisition Date |
Shares/ Units |
Cost |
Fair Value |
|||||||||||||
| Common Equity/Equity Interests/Warrants— |
||||||||||||||||||
| Assertio Holdings, Inc. (8)* |
$ | $ | ||||||||||||||||
| aTyr Pharma, Inc. Warrants * |
||||||||||||||||||
| Bayside Parent, LLC (27)* |
||||||||||||||||||
| CardioFocus, Inc. Warrants * |
||||||||||||||||||
| Centrexion Therapeutics, Inc. Warrants * |
||||||||||||||||||
| Conventus Orthopaedics, Inc. Warrants * |
||||||||||||||||||
| Delphinus Medical Technologies, Inc. Warrants * |
||||||||||||||||||
| Essence Group Holdings Corporation (Lumeris) Warrants * |
||||||||||||||||||
| KBH Topco LLC (Kingsbridge) (2)(5)(18). |
||||||||||||||||||
| Meditrina, Inc. Warrants * |
||||||||||||||||||
| NSPC Holdings, LLC (National Spine) * |
||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor) (2)* |
||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor) Class B (2)* |
||||||||||||||||||
| Senseonics Holdings, Inc. (3)(8)* |
||||||||||||||||||
| SLR-AMI Topco Blocker, LLC (15)(27)* |
||||||||||||||||||
| SLR Business Credit (2)(3)(19) |
||||||||||||||||||
| SLR Credit Solutions (2)(3)(20) |
||||||||||||||||||
| Description |
Industry |
Acquisition Date |
Shares/ Units |
Cost |
Fair Value |
|||||||||||||
| Common Equity/Equity Interests/Warrants (continued) |
||||||||||||||||||
| SLR Healthcare ABL (2)(3)(21) |
$ | $ | ||||||||||||||||
| SLR Senior Lending Program LLC (2)(3)(25) |
||||||||||||||||||
| SLR Healthcare ABL (2)(3)(21) |
||||||||||||||||||
| Vapotherm, Inc. Warrants* |
||||||||||||||||||
| Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) |
||||||||||||||||||
| Vertos Medical, Inc. Warrants* |
||||||||||||||||||
| |
|
|
|
|||||||||||||||
| Total Common Equity/Equity Interests/Warrants |
|
$ |
$ |
|||||||||||||||
| |
|
|
|
|||||||||||||||
| Total Investments (6) — |
$ |
$ |
||||||||||||||||
| |
|
|
|
|||||||||||||||
| Description |
Industry |
Acquisition Date |
Maturity Date |
Par Amount |
||||||||||||||||||||
| Cash Equivalents — |
|
|||||||||||||||||||||||
| U.S. Treasury Bill |
$ | $ | $ | |||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Total Investments & Cash Equivalents — |
|
$ |
$ |
|||||||||||||||||||||
| Liabilities in Excess of Other Assets — ( %) |
|
( |
) | |||||||||||||||||||||
| |
|
|||||||||||||||||||||||
| Net Assets — |
|
$ |
||||||||||||||||||||||
| |
|
|||||||||||||||||||||||
| (1) | Floating rate debt investments typically bear interest at a rate determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2023. |
| (2) | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than |
| Name of Issuer |
Fair Value at December 31, 2022 |
Gross Additions |
Gross Reductions |
Realized Loss |
Change in Unrealized Gain (Loss) |
Fair Value at December 31, 2023 |
Interest/ Dividend/ Other Income |
|||||||||||||||||||||
| Equipment Operating Leases, LLC |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||
| Kingsbridge Holdings, LLC |
( |
) | ||||||||||||||||||||||||||
| KBH Topco, LLC (Kingsbridge) |
( |
) | ||||||||||||||||||||||||||
| Loyer Capital LLC |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, common equity) |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, class B).. |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, warrants).. |
( |
) | ||||||||||||||||||||||||||
| RD Holdco, Inc. (debt) |
||||||||||||||||||||||||||||
| SLR Business Credit |
||||||||||||||||||||||||||||
Name of Issuer |
Fair Value at December 31, 2022 |
Gross Additions |
Gross Reductions |
Realized Loss |
Change in Unrealized Gain (Loss) |
Fair Value at December 31, 2023 |
Interest/ Dividend/ Other Income |
|||||||||||||||||||||
SLR Credit Solutions |
( |
) | ||||||||||||||||||||||||||
SLR Equipment Finance (equity) |
||||||||||||||||||||||||||||
SLR Equipment Finance (debt) |
( |
) | ||||||||||||||||||||||||||
SLR Healthcare ABL |
||||||||||||||||||||||||||||
SLR Senior Lending Program LLC |
||||||||||||||||||||||||||||
SOINT, LLC |
( |
) | ||||||||||||||||||||||||||
| $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||
| (3) | Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2023, on a fair value basis, non-qualifying assets in the portfolio represented |
| (4) | The Company’s investment in SOINT, LLC includes a one dollar investment in common shares. |
| (5) | Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. |
| (6) | Aggregate net unrealized appreciation for U.S. federal income tax purposes is $ |
| (7) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor. |
| (8) | Denotes a Level 1 investment. |
| (9) | SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary. |
| (10) | Indicates an investment that is wholly held by the Company through NEFPASS LLC. |
| (11) | Interest is paid in kind (“PIK”). |
| (12) | Denotes a subsidiary of SLR Equipment Finance. |
| (13) | OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. |
| (14) | Kaseya, Inc. may elect to defer up to |
| (15) | Through this entity and other intermediate entities, the Company owns approximately |
| (16) | Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company. |
| (17) | See note 11 to the consolidated financial statements. |
| (18) | See note 12 to the consolidated financial statements. |
| (19) | See note 14 to the consolidated financial statements. |
| (20) | See note 10 to the consolidated financial statements. |
| (21) | See note 13 to the consolidated financial statements. |
| (22) | BridgeBio Pharma, Inc. may elect to defer up to |
| (23) | The Company became an Affiliated Person to Bayside Opco, LLC and Bayside Parent, LLC on May 31, 2023 and to Amerimark Intermediate Holdings, LLC and SLR- AMI Topco Blocker, LLC on June 16, 2023. |
| (24) | Vapotherm, Inc. may elect to defer up to |
| (25) | See note 18 to the consolidated financial statements. |
| (26) | iCIMS, Inc. may elect to defer up to |
| (27) | Denotes investments in which we are an “Affiliated Person” but do not exercise a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2023 (beginning with the date at which the Company became an Affiliated Person) in these affiliated investments are as follows: |
Name of Issuer |
Fair Value at Date of Affiliation(23) |
Gross Additions |
Gross Reductions |
Realized Gain (Loss) |
Change in Unrealized Gain (Loss) |
Fair Value at December 31, 2023 |
Interest Income |
|||||||||||||||||||||
Oldco AI, LLC (f/k/a AmeriMark) |
$ | $ | $ | ( |
) | $ | |
$ | $ | $ | ||||||||||||||||||
Oldco AI, LLC (f/k/a AmeriMark) |
( |
) a |
||||||||||||||||||||||||||
Bayside Opco, LLC |
( |
) | ||||||||||||||||||||||||||
Bayside Opco, LLC |
||||||||||||||||||||||||||||
Bayside Parent, LLC (loan) |
||||||||||||||||||||||||||||
Bayside Parent, LLC (equity) |
( |
) | ||||||||||||||||||||||||||
SLR-AMI Topco Blocker, LLC |
a |
( |
) | |||||||||||||||||||||||||
| $ |
$ |
$( |
$ |
$( |
$ |
$ |
||||||||||||||||||||||
a |
Includes contribution of basis from Oldco AI, LLC to SLR-AMI Topco Blocker, LLC. |
| * | Non-income producing security. |
| ** | Investment is on non-accrual status. |
| Industry Classification |
Percentage of Total Investments (at fair value) as of December 31, 2023 |
|||
| Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL) |
% | |||
| Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC) |
% | |||
| Health Care Providers & Services |
% | |||
| Health Care Equipment & Supplies |
% | |||
| Pharmaceuticals |
% | |||
| Biotechnology |
% | |||
| Software |
% | |||
| Insurance |
% | |||
| Diversified Consumer Services |
% | |||
| Commercial Services & Supplies |
% | |||
| Asset Management |
% | |||
| Capital Markets |
% | |||
| Media |
% | |||
| Thrifts & Mortgage Finance |
% | |||
| Personal Products |
% | |||
| Packaged Foods & Meats |
% | |||
| Auto Parts & Equipment |
% | |||
| Road & Rail |
% | |||
| Life Sciences Tools & Services |
% | |||
| Internet Software & Services |
% | |||
| Internet & Catalog Retail |
% | |||
| Transportation Infrastructure |
% | |||
| Communications Equipment |
% | |||
| Health Care Technology |
% | |||
| Trading Companies & Distributors |
% | |||
| Hotels, Restaurants & Leisure . |
% | |||
| Aerospace & Defense |
% | |||
| Oil, Gas & Consumable Fuels. |
% | |||
| Footwear |
% | |||
| Auto Components |
% | |||
| IT Services |
% | |||
| Food Products |
% | |||
| Machinery |
% | |||
| Airlines |
% | |||
| Distributors |
% | |||
| Metals & Mining |
% | |||
| Leisure Equipment & Products |
% | |||
| Specialty Retail |
% | |||
| Food & Staples Retailing |
% | |||
| Construction & Engineering |
% | |||
| Consumer Finance |
% | |||
| Energy Equipment & Services |
% | |||
| Water Utilities |
% | |||
| |
|
|||
| Total Investments |
% | |||
| |
|
|||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||
| Senior Secured Loans — |
||||||||||||||||||||||||||||
| First Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||
| Aegis Toxicology Sciences Corporation(16) |
L+ |
% | % | $ | $ | $ | ||||||||||||||||||||||
| All State Ag Parts, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||
| American Teleconferencing Services, Ltd.** |
L+ |
% | ||||||||||||||||||||||||||
| American Teleconferencing Services, Ltd.** |
L+ |
% | ||||||||||||||||||||||||||
| AmeriMark Intermediate Holdings, LLC(14) |
L+ |
% | % | |||||||||||||||||||||||||
| Apex Services Partners, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||
| Atria Wealth Solutions, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||
| Basic Fun, Inc.(16) |
L+ |
% | % | |||||||||||||||||||||||||
| BayMark Health Services, Inc.(16) |
L+ |
% | % | |||||||||||||||||||||||||
| BDG Media, Inc |
L+ |
% | % | |||||||||||||||||||||||||
| CC SAG Holdings Corp. (Spectrum Automotive)(16) |
L+ |
% | % | |||||||||||||||||||||||||
| Composite Technology Acquisition Corp.(16) |
L+ |
% | % | |||||||||||||||||||||||||
| Copper River Seafoods, Inc. |
P+ |
% | ||||||||||||||||||||||||||
| DeepIntent, Inc |
P+ |
% | ||||||||||||||||||||||||||
| Enhanced Permanent Capital, LLC(3) |
L+ |
% | % | |||||||||||||||||||||||||
| ENS Holdings III Corp. & ES Opco USA LLC (Bluefin)(16).. |
S+ |
% | % | |||||||||||||||||||||||||
| Enverus Holdings, Inc. (fka Drilling Info Holdings)(16) |
L+ |
% | ||||||||||||||||||||||||||
| Erie Construction Mid-west, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||
| Foundation Consumer Brands, LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||
| GSM Acquisition Corp.(16) |
S+ |
% | % | |||||||||||||||||||||||||
| Higginbotham Insurance Agency, Inc.(16) |
L+ |
% | % | |||||||||||||||||||||||||
| High Street Buyer, Inc.(16) |
L+ |
% | % | |||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||
| Senior Secured Loans (continued) |
||||||||||||||||||||||||||||||||
| Human Interest Inc |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||
| iCIMS, Inc. |
S+ |
% | % (26) |
|||||||||||||||||||||||||||||
| Ivy Fertility Services, LLC |
L+ |
% | % | |||||||||||||||||||||||||||||
| Kaseya, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| Kid Distro Holdings, LLC (Distro Kid)(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Kingsbridge Holdings, LLC(2) |
L+ |
% | % | |||||||||||||||||||||||||||||
| KORE Wireless Group, Inc.(16) |
S+ |
% | ||||||||||||||||||||||||||||||
| Logix Holding Company, LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Luxury Asset Capital, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| Maurices, Incorporated(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| Montefiore Nyack Hospital |
L+ |
% | ||||||||||||||||||||||||||||||
| NAC Holdings Corporation (Jaguar)(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| National Spine and Pain Centers, LLC |
L+ |
% | % | |||||||||||||||||||||||||||||
| One Touch Direct, LLC |
P+ |
% | ||||||||||||||||||||||||||||||
| Orthopedic Care Partners Management, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||
| Pediatric Home Respiratory Services, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||
| Peter C. Foy & Associates Insurance Services, LLC |
S+ |
% | % | |||||||||||||||||||||||||||||
| PhyNet Dermatology LLC |
S+ (15) |
% | % | |||||||||||||||||||||||||||||
| Pinnacle Treatment Centers, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| Plastics Management, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| PPT Management Holdings, LLC(16) |
L+ (11) |
% | % | |||||||||||||||||||||||||||||
| RQM+ Corp.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| RSC Acquisition, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| RxSense Holdings LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||
| Senior Secured Loans (continued) |
||||||||||||||||||||||||||||||||
| SCP Eye Care, LLC |
S+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||
| SHO Holding I Corporation (Shoes for Crews)(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Southern Orthodontic Partners Management, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| SPAR Marketing Force, Inc |
P+ |
% | ||||||||||||||||||||||||||||||
| Stryten Resources LLC |
S+ |
% | % | |||||||||||||||||||||||||||||
| SunMed Group Holdings, LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| TAUC Management, LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Tilley Distribution, Inc.(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| Ultimate Baked Goods Midco LLC (Rise Baking)(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| Vessco Midco Holdings, LLC(16) |
L+ |
% | % | |||||||||||||||||||||||||||||
| World Insurance Associates, LLC(16) |
S+ |
% | % | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Total First Lien Bank Debt/Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Second Lien Asset-Based Senior Secured Loans |
||||||||||||||||||||||||||||||||
| ACRES Commercial Mortgage, LLC |
S+ |
% | % | $ | $ | |||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Second Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||
| RD Holdco, Inc.** (2) |
S+ (11) |
% | $ | $ | ||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||
| Senior Secured Loans (continued) |
||||||||||||||||||||||||||||||||
| First Lien Life Science Senior Secured Loans |
||||||||||||||||||||||||||||||||
| Alimera Sciences, Inc.(16) |
L+ |
% | % | $ | $ | $ | ||||||||||||||||||||||||||
| Apeel Technology, Inc. |
S+ |
% | ||||||||||||||||||||||||||||||
| Arcutis Biotherapeutics, Inc.(3) |
L+ |
% | ||||||||||||||||||||||||||||||
| Ardelyx, Inc.(3) |
L+ |
% | ||||||||||||||||||||||||||||||
| BridgeBio Pharma, Inc.(3) |
(22) |
|||||||||||||||||||||||||||||||
| Centrexion Therapeutics, Inc. |
L+ |
% | ||||||||||||||||||||||||||||||
| Cerapedics, Inc. |
S+ |
% | ||||||||||||||||||||||||||||||
| Glooko, Inc.(16) |
L+ |
% | ||||||||||||||||||||||||||||||
| Meditrina, Inc. |
S+ |
% | ||||||||||||||||||||||||||||||
| Neuronetics, Inc.(16) |
L+ |
% | ||||||||||||||||||||||||||||||
| OmniGuide Holdings, Inc. (13). |
L+ |
% | (23) |
|||||||||||||||||||||||||||||
| Outset Medical, Inc.(3) |
S+ |
% | ||||||||||||||||||||||||||||||
| Spectrum Pharmaceuticals, Inc.(16) |
S+ |
% | ||||||||||||||||||||||||||||||
| Vapotherm, Inc. |
S+ |
% | (24) |
|||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Total First Lien Life Science Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Total Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||
| Equipment Financing — |
||||||||||||||||||||
| Aero Operating LLC (10) |
$ | $ | $ | |||||||||||||||||
| AFG Dallas III, LLC (10) |
||||||||||||||||||||
| Air Methods Corporation (10) |
||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||
| Equipment Financing (continued) |
||||||||||||||||||||
| AmeraMex International, Inc. (10) |
$ | $ | $ | |||||||||||||||||
| Bazzini, LLC (10) |
||||||||||||||||||||
| Boart Longyear Company (10) |
||||||||||||||||||||
| Bowman Energy Solutions, LLC (10) |
||||||||||||||||||||
| C-Port/Stone LLC (10) |
||||||||||||||||||||
| Capital City Jet Center, Inc. (10) |
||||||||||||||||||||
| Champion Air, LLC (10) |
||||||||||||||||||||
| CKD Holdings, Inc. (10) |
||||||||||||||||||||
| Clubcorp Holdings, Inc. (10) |
||||||||||||||||||||
| Dongwon Autopart Technology Inc. (10) |
||||||||||||||||||||
| Drillers Choice, Inc. (10) |
||||||||||||||||||||
| EasyPak, LLC (10) |
||||||||||||||||||||
| Energy Drilling Services, LLC (10) |
||||||||||||||||||||
| Environmental Protection & Improvement Company, LLC (10) |
||||||||||||||||||||
| Equipment Operating Leases, LLC (2)(12) |
||||||||||||||||||||
| First American Commercial Bancorp, Inc. (10) |
||||||||||||||||||||
| First National Capital, LLC. (10) |
||||||||||||||||||||
| Freightsol LLC (10) |
||||||||||||||||||||
| Garda CL Technical Services, Inc. (10) |
||||||||||||||||||||
| Georgia Jet, Inc. (10) |
||||||||||||||||||||
| GMT Corporation (10) |
||||||||||||||||||||
| Hawkeye Contracting Company, LLC (10) |
||||||||||||||||||||
| HTI Logistics Corporation. (10) |
||||||||||||||||||||
| International Automotive Components Group, North America, Inc. (10) |
||||||||||||||||||||
| Kool Pak, LLC (10) |
||||||||||||||||||||
| Loc Performance Products, LLC (10) |
||||||||||||||||||||
| Loyer Capital LLC (2)(12) |
||||||||||||||||||||
| Lux Credit Consultants, LLC (10) |
||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||
| Equipment Financing (continued) |
||||||||||||||||||||
| Lux Vending, LLC (10) |
$ | $ | $ | |||||||||||||||||
| Mountain Air Helicopters, Inc. (10) |
||||||||||||||||||||
| Ozzies, Inc. (10) |
||||||||||||||||||||
| PCX Aerostructures LLC (10) |
||||||||||||||||||||
| Rane Light Metal Castings Inc. (10) |
||||||||||||||||||||
| Rango, Inc. (10) |
||||||||||||||||||||
| Royal Coach Lines, Inc.(10) |
||||||||||||||||||||
| Royal Express Inc. (10) |
||||||||||||||||||||
| Rotten Rock Hardscaping & Tree Service (10) |
||||||||||||||||||||
| Signet Marine Corporation (10) |
||||||||||||||||||||
| SLR Equipment Finance(2) |
||||||||||||||||||||
| Smiley Lifting Solutions, LLC(10) |
||||||||||||||||||||
| ST Coaches, LLC (10) |
||||||||||||||||||||
| Star Coaches Inc. (10) |
||||||||||||||||||||
| Superior Transportation, Inc. (10) |
||||||||||||||||||||
| The Smedley Company & Smedley Services, Inc. (10).. |
||||||||||||||||||||
| Trinity Equipment Rentals, Inc. (10) |
||||||||||||||||||||
| U.S. Crane & Rigging, LLC (10) |
||||||||||||||||||||
| Up Trucking Services, LLC (10) |
||||||||||||||||||||
| Wind River Environmental, LLC (10) |
||||||||||||||||||||
| Womble Company, Inc. (10) |
||||||||||||||||||||
| Worldwide Flight Services, Inc. (10) |
||||||||||||||||||||
| Zamborelli Enterprises Pacific Souther n Foundation (10) |
||||||||||||||||||||
Shares/Units |
||||||||||||||||||||
| SLR Equipment Finance Equity Interests (2)(9)(17)* |
||||||||||||||||||||
| |
|
|
|
|||||||||||||||||
| Total Equipment Financing |
$ |
$ |
||||||||||||||||||
| |
|
|
|
|||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||
| Preferred Equity – |
||||||||||||||||||||
| SOINT, LLC (2)(3)(4) |
(11) |
$ | $ | |||||||||||||||||
| |
|
|
|
|||||||||||||||||
| Description |
Industry |
Acquisition Date |
Shares/ Units |
Cost |
Fair Value |
|||||||||||||||||
| Common Equity/Equity Interests/Warrants— |
| |||||||||||||||||||||
| aTyr Pharma, Inc. Warrants * |
$ | $ | ||||||||||||||||||||
| CardioFocus, Inc. Warrants * |
||||||||||||||||||||||
| Centrexion Therapeutics, Inc. Warrants * |
||||||||||||||||||||||
| Conventus Orthopaedics, Inc. Warrants * |
||||||||||||||||||||||
| Delphinus Medical Technologies, Inc. Warrants * |
||||||||||||||||||||||
| Essence Group Holdings Corporation (Lumeris) Warrants * |
||||||||||||||||||||||
| KBH Topco LLC (Kingsbridge) (2)(5)(18). |
||||||||||||||||||||||
| Meditrina, Inc. Warrants * |
||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor) (2)* |
||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor) Class B (2)* |
||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor) Warrants (2)* |
||||||||||||||||||||||
| Senseonics Holdings, Inc. (3)(8)* |
||||||||||||||||||||||
| SLR Business Credit (2)(3)(19) |
||||||||||||||||||||||
| SLR Credit Solutions (2)(3)(20) |
||||||||||||||||||||||
| SLR Healthcare ABL (2)(3)(21) |
||||||||||||||||||||||
| SLR Senior Lending Program LLC (2)(3)(25) |
||||||||||||||||||||||
| Spectrum Pharmaceuticals, Inc. Warrants * |
||||||||||||||||||||||
| Vapotherm, Inc. Warrants* |
||||||||||||||||||||||
| Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) |
||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||
| Total Common Equity/Equity Interests/Warrants |
|
$ | $ | |||||||||||||||||||
| |
|
|
|
|||||||||||||||||||
| Total Investments (6) — |
|
$ |
$ |
|||||||||||||||||||
| |
|
|
|
|||||||||||||||||||
| Description |
Industry |
Acquisition Date |
Maturity Date |
Par Amount |
||||||||||||||||||||
| Cash Equivalents — |
|
|||||||||||||||||||||||
| U.S. Treasury Bill |
$ | $ | $ | |||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Total Investments & Cash Equivalents — |
|
$ |
$ |
|||||||||||||||||||||
| Liabilities in Excess of Other Assets — ( |
|
( |
) | |||||||||||||||||||||
| |
|
|||||||||||||||||||||||
| Net Assets — |
|
$ |
||||||||||||||||||||||
| |
|
|||||||||||||||||||||||
| (1) | Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), the Secured Overnight Financing Rate (“SOFR” or “S”) or the |
| prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2022. |
| (2) | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (“1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than |
| Name of Issuer |
Fair Value at December 31, 2021 |
Gross Additions |
Gross Reductions |
Realized Gain (Loss) |
Change in Unrealized Gain (Loss) |
Interest/ Dividend Income |
Fair Value at December 31, 2022 |
|||||||||||||||||||||
| Equipment Operating Leases, LLC |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Kingsbridge Holdings, LLC |
( |
) | ||||||||||||||||||||||||||
| KBH Topco, LLC (Kingsbridge) |
||||||||||||||||||||||||||||
| Loyer Capital LLC |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, common equity) |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, class B).. |
( |
) | ||||||||||||||||||||||||||
| RD Holdco, Inc. (Rug Doctor, warrants).. |
||||||||||||||||||||||||||||
| RD Holdco, Inc. (debt) |
( |
) | ( |
) | ||||||||||||||||||||||||
| SLR Business Credit |
||||||||||||||||||||||||||||
| SLR Credit Solutions |
( |
) | ||||||||||||||||||||||||||
| SLR Equipment Finance (equity) |
( |
) | ||||||||||||||||||||||||||
| SLR Equipment Finance (debt) |
||||||||||||||||||||||||||||
| SLR Healthcare ABL |
||||||||||||||||||||||||||||
| SLR Senior Lending Program LLC |
( |
) | ||||||||||||||||||||||||||
| SOAGG LLC |
( |
) | ||||||||||||||||||||||||||
| SOINT, LLC |
( |
) | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| $ | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (3) | Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2022, on a fair value basis, non-qualifying assets in the portfolio represented |
| (4) | The Company’s investment in SOINT, LLC includes a one dollar investment in common shares. |
| (5) | Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. |
| (6) | Aggregate net unrealized appreciation for U.S. federal income tax purposes is $ |
| are pledged as collateral against the borrowings outstanding on the senior secured credit facility. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated. |
| (7) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR, SOFR or PRIME rate. These instruments are often subject to a LIBOR, SOFR or PRIME rate floor. |
| (8) | Denotes a Level 1 investment. |
| (9) | SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary. |
| (10) | Indicates an investment that is wholly held by the Company through NEFPASS LLC. |
| (11) | Interest is paid in kind (“PIK”). |
| (12) | Denotes a subsidiary of SLR Equipment Finance. |
| (13) | OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. |
| (14) | AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D. Commodities LLC, Dr. Leonard’s Healthcare Corp. and Amerimark Intermediate Holdings, LLC are each co-Borrowers. Amerimark may elect to defer up to |
| (15) | Spread is |
| (16) | Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company. |
| (17) | See note 11 to the consolidated financial statements. |
| (18) | See note 12 to the consolidated financial statements. |
| (19) | See note 14 to the consolidated financial statements. |
| (20) | See note 10 to the consolidated financial statements. |
| (21) | See note 13 to the consolidated financial statements. |
| (22) | BridgeBio Pharma, Inc. may elect to defer up to |
| (23) | OmniGuide Holdings, Inc. may elect to defer up to |
| (24) | Vapotherm, Inc. may elect to defer up to |
| (25) | See note 18 to the consolidated financial statements. |
| (26) | iCIMS, Inc. may elect to defer up to |
| * | Non-income producing security. |
| ** | Investment is on non-accrual status. |
| Industry Classification |
Percentage of Total Investments (at fair value) as of December 31, 2022 |
|||
| Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL) |
% | |||
| Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC) |
% | |||
| Health Care Providers & Services |
% | |||
| Health Care Equipment & Supplies |
% | |||
| Pharmaceuticals |
% | |||
| Software |
% | |||
| Insurance |
% | |||
| Biotechnology |
% | |||
| Diversified Consumer Services |
% | |||
| Media |
% | |||
| Road & Rail |
% | |||
| Personal Products |
% | |||
| Capital Markets |
% | |||
| Thrifts & Mortgage Finance |
% | |||
| Life Sciences Tools & Services |
% | |||
| Auto Parts & Equipment |
% | |||
| Packaged Foods & Meats |
% | |||
| Wireless Telecommunication Services |
% | |||
| Commercial Services & Supplies |
% | |||
| Internet & Catalog Retail |
% | |||
| Internet Software & Services |
% | |||
| Building Products |
% | |||
| Trading Companies & Distributors |
% | |||
| Health Care Technology |
% | |||
| Transportation Infrastructure |
% | |||
| Communications Equipment |
% | |||
| IT Services |
% | |||
| Leisure Equipment & Products |
% | |||
| Specialty Retail |
% | |||
| Asset Management |
% | |||
| Food Products |
% | |||
| Auto Components |
% | |||
| Airlines |
% | |||
| Hotels, Restaurants & Leisure . |
% | |||
| Oil, Gas & Consumable Fuels |
% | |||
| Aerospace & Defense |
% | |||
| Machinery |
% | |||
| Footwear |
% | |||
| Metals & Mining |
% | |||
| Food & Staples Retailing |
% | |||
| Water Utilities |
% | |||
| Consumer Finance |
% | |||
| Construction & Engineering |
% | |||
| Energy Equipment & Services |
% | |||
| Containers & Packaging |
% | |||
| |
|
|||
| Total Investments |
% | |||
| |
|
|||
| (a) | Investment transactions are accounted for on the trade date. |
| (b) | Under procedures established by the board of directors (the “Board”), we value investments, including certain senior secured debt, subordinated debt and other debt securities with maturities greater than mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we may utilize independent third-party valuation firms to assist us in determining the fair value of material assets. Accordingly, such investments go through our multi-step valuation process as described below. In each such case, independent valuation firms, that may from time to time be engaged by the Board, consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations. Debt investments with maturities of |
| (1) | our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment; |
| (2) | preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser; |
| (3) | independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets; |
| (4) | the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and |
| (5) | the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee. |
| (c) | Gains or losses on investments are calculated by using the specific identification method. |
| (d) | The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market |
| discounts are capitalized and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums received on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring fee income as well as a management fee and other fee income for services rendered, if any, are recorded as other income when earned. |
| (e) | The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a |
| (f) | Book and tax basis differences relating to stockholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP; accordingly, at December 31, 2023, $ paid-in capital in excess of par. Total earnings and net asset value are not affected. |
| (g) | Distributions to common stockholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. |
| (h) | In accordance with Regulation S-X and ASC Topic 810—Consolidation |
| (i) | The accounting records of the Company are maintained in U.S. dollars. Any assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. The Company will not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations would be included with the net unrealized gain or loss from investments. The Company’s investments in foreign securities, if any, may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments in terms of U.S. dollars and therefore the earnings of the Company. |
| (j) | In accordance with ASC 835-30, the Company reports origination and other expenses related to certain debt issuances as a direct deduction from the carrying amount of the debt liability. Applicable expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life. The straight-line method may be used on revolving facilities and/or when it approximates the effective yield method. |
| (k) | The Company may enter into forward exchange contracts in order to hedge against foreign currency risk. These contracts are marked-to-market |
| exchange rate and the current market rate as unrealized appreciation or depreciation. Realized gains or losses are recognized when contracts are settled. |
| (l) | The Company records expenses related to shelf registration statements and applicable equity offering costs as prepaid assets. These expenses are typically charged as a reduction of capital upon the sale of shares or expensed, in accordance with ASC 946-20-25. |
| (m) | Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when principal or interest cash payments are past due non-accrual investments are restored to accrual status if past due principal and interest are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining principal and interest obligations. Cash interest payments received on such investments may be recognized as income or applied to principal depending on management’s judgment. |
| (n) | The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less would qualify, with limited exceptions. The Company believes that certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents. |
Year ended December 31, 2023 |
Year ended December 31, 2022 |
Year ended December 31, 2021 |
||||||||||
| Earnings per share (basic & diluted) |
||||||||||||
| Numerator—net increase in net assets resulting from operations: |
$ | $ | $ | |||||||||
| Denominator—weighted average shares: |
||||||||||||
| Earnings per share: |
$ | $ | $ | |||||||||
| a) | Quoted prices for similar assets or liabilities in active markets; |
| b) | Quoted prices for identical or similar assets or liabilities in non-active markets; |
| c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and |
| d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. |
Level 1 |
Level 2 |
Level 3 |
Measured at Net Asset Value* |
Total |
||||||||||||||||
| Assets: |
||||||||||||||||||||
| Senior Secured Loans |
$ | $ | $ | $ | $ | |||||||||||||||
| Equipment Financing |
||||||||||||||||||||
| Preferred Equity |
||||||||||||||||||||
| Common Equity/Equity Interests/Warrants |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Investments |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
Level 1 |
Level 2 |
Level 3 |
Measured at Net Asset Value* |
Total |
||||||||||||||||
| Assets: |
||||||||||||||||||||
| Senior Secured Loans |
$ | $ | $ | $ | $ | |||||||||||||||
| Equipment Financing |
||||||||||||||||||||
| Preferred Equity |
||||||||||||||||||||
| Common Equity/Equity Interests/Warrants |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Investments |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| * | In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The portfolio investment in this category is SSLP. See Note 18 for more information on this investment, including its investment strategy and the Company’s unfunded equity commitment to SSLP. This investment is not redeemable by the Company absent an election by the members of the entity to liquidate all investments and distribute the proceeds to the members. |
Senior Secured Loans |
Equipment Financing |
Preferred Equity |
Common Equity/ Equity Interests/ Warrants |
Total |
||||||||||||||||
| Fair value, December 31, 2022 |
$ | $ | $ | $ | $ | |||||||||||||||
| Total gains or losses included in earnings: |
||||||||||||||||||||
| Net realized loss |
( |
) | ( |
) | ( |
) | ||||||||||||||
| Net change in unrealized gain (loss) |
( |
) | ( |
) | ||||||||||||||||
| Purchase of investment securities * |
||||||||||||||||||||
| Proceeds from dispositions of investment securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Transfers in/out of Level 3 |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value, December 31, 2023 |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
||||||||||||||||||||
| Net change in unrealized gain (loss) |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
* |
Includes PIK capitalization and accretion of discount. |
Senior Secured Loans |
Equipment Financing |
Preferred Equity |
Common Equity/ Equity Interests/ Warrants |
Total |
||||||||||||||||
| Fair value, December 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
| Total gains or losses included in earnings: |
||||||||||||||||||||
| Net realized gain (loss) |
( |
) | ( |
) | ||||||||||||||||
| change in unrealized loss |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
| Purchase of investment securities(1) (2) |
||||||||||||||||||||
| Proceeds from dispositions of investment securities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
| Transfers in/out of Level 3 |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value, December 31, 2022 |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
||||||||||||||||||||
| change in unrealized loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
(1) |
Includes positions acquired from SUNS as a result of the Mergers. |
(2) |
Includes PIK capitalization and accretion of discount. |
| 2022 Unsecured Notes |
For the year ended December 31, 2022 |
|||
| Beginning fair value |
$ | |||
| Net realized (gain) loss |
||||
| Net change in unrealized (gain) loss |
||||
| Borrowings |
||||
| Repayments |
( |
) | ||
| Transfers in/out of Level 3 |
||||
| |
|
|||
| Ending fair value |
$ | |||
| |
|
|||
Asset or Liability |
Fair Value at December 31, 2023 |
Principal Valuation Technique/Methodology |
Unobservable Input |
Range (Weighted Average) | ||||||||||
| Senior Secured Loans |
Asset | $ | ||||||||||||
| $ | N/A | |||||||||||||
| Equipment Financing |
Asset | $ | ||||||||||||
| $ | (1) |
|||||||||||||
| Preferred Equity |
Asset | $ | ||||||||||||
| Common Equity/Equity Interests/Warrants |
Asset | $ | (2) |
|||||||||||
| $ | ||||||||||||||
| (1) | Includes $ |
| (2) | Includes $ |
Asset or Liability |
Fair Value at December 31, 2022 |
Principal Valuation Technique/Methodology |
Unobservable Input |
Range (Weighted Average) | ||||||||||||||
| Senior Secured Loans |
Asset | $ | ||||||||||||||||
| $ | (1) |
|||||||||||||||||
| Equipment Financing |
Asset | $ | ||||||||||||||||
| $ | (2) |
|||||||||||||||||
| Preferred Equity |
Asset | $ | ||||||||||||||||
| Common Equity/Equity Interests/Warrants |
Asset | $ | (3) |
|||||||||||||||
| $ | ||||||||||||||||||
| (1) | Investments are valued using a sum-of-the |
| (2) | Includes $ |
| (3) | Includes $ |
December 31, 2023 |
December 31, 2022 |
|||||||||||||||
| Facility |
Face Amount |
Carrying Value |
Face Amount |
Carrying Value |
||||||||||||
| Credit Facility |
$ | $ | (1) |
$ | $ | (1) | ||||||||||
| SPV Credit Facility |
(2) |
(2) | ||||||||||||||
| 2023 Unsecured Notes |
(3) | |||||||||||||||
| 2024 Unsecured Notes |
(4) |
(4) | ||||||||||||||
| 2025 Unsecured Notes |
(5) |
(5) | ||||||||||||||
| 2026 Unsecured Notes |
(6) |
(6) | ||||||||||||||
| 2027 Unsecured Notes |
(7) |
(7) | ||||||||||||||
| 2027 Series F Unsecured Notes |
(8) |
(8) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| $ | $ | $ | $ | |||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (2) | Carrying Value equals the Face Amount net of unamortized market discount of $ |
| (3) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (4) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (5) | Carrying Value equals the Face Amount net of unamortized market discount of $ |
| (6) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (7) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (8) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
2023 |
2022 |
2021 |
||||||||||||||||||||||
| Ordinary income |
$ | % | $ | % | $ | % | ||||||||||||||||||
| Capital gains |
% | % | % | |||||||||||||||||||||
| Return of capital |
% | % | % | |||||||||||||||||||||
| Distributions recognized in subsequent year |
% | % | % | |||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total distributions |
$ | % | $ | % | $ | % | ||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2023 |
2022 |
2021 |
||||||||||
| Undistributed ordinary income |
$ | $ | $ | |||||||||
| Undistributed long-term net capital gains |
||||||||||||
| |
|
|
|
|
|
|||||||
| Total undistributed net earnings |
||||||||||||
| Post-October capital losses |
||||||||||||
| Capital loss carryforward |
( |
) 2 |
( |
) 2 |
( |
) | ||||||
| Other book/tax temporary differences |
( |
) | ||||||||||
| Net unrealized appreciation |
||||||||||||
| |
|
|
|
|
|
|||||||
| Total tax accumulated loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
| |
|
|
|
|
|
|||||||
| (1) | Tax information for the fiscal years ended December 31, 2023, 2022 and 2021 are/were estimates and are not final until the Company files its tax returns, typically in September or October each year. |
| (2) | Includes capital loss carryforward acquired from the Mergers which is subject to limitations under IRC Sections 381-384. |
Year ended December 31, 2023 |
Year ended December 31, 2022 |
Year ended December 31, 2021 |
Year ended December 31, 2020 |
Year ended December 31, 2019 |
||||||||||||||||
| Per Share Data: (a) |
||||||||||||||||||||
| Net asset value, beginning of year |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net investment income |
||||||||||||||||||||
| Net realized and unrealized loss |
( |
) | ( |
)* | ( |
) | ( |
) | ( |
) | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net increase in net assets resulting from operations |
||||||||||||||||||||
| Issuance of common stock in connection with the Mergers |
( |
) | ||||||||||||||||||
| Anti-dilution |
||||||||||||||||||||
| Distributions to stockholders (see note 8a): |
||||||||||||||||||||
| From distributable earnings |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
| From return of capital |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net asset value, end of year |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Per share market value, end of year |
$ | $ | $ | $ | $ | |||||||||||||||
| Total Return(b) |
% | ( |
%) | % | ( |
%) | % | |||||||||||||
| Net assets, end of year |
$ | $ | $ | $ | $ | |||||||||||||||
| Shares outstanding, end of year |
||||||||||||||||||||
| Ratios to average net assets: |
||||||||||||||||||||
| Net investment income |
% | % | % | % | % | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating expenses |
%** | %** | % | % | % | |||||||||||||||
| Interest and other credit facility expenses |
% | % | % | % | % | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total expenses |
%** | %** | % | % | % | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Average debt outstanding |
$ | $ | $ | $ | $ | |||||||||||||||
| Portfolio turnover ratio |
% | % | % | % | % | |||||||||||||||
| (a) | Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Mergers, which reflects the actual amount per share for the applicable period. |
| (b) | Total return is based on the change in market price per share during the year and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. Total return does not include a sales load. |
| * | The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Mergers. |
| ** | The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of the performance-based incentive fee waiver (see note 3). For the years ended December 31, 2023 and December 31, 2022, the ratios of operating expenses to average net assets would be |
December 31, 2023 |
December 31, 2022 |
|||||||
SLR Credit Solutions* |
$ | $ | ||||||
Orthopedic Care Partners Management, LLC |
||||||||
Southern Orthodontic Partners Management, LLC |
||||||||
Ardelyx, Inc. |
||||||||
CVAUSA Management, LLC |
||||||||
BDG Media, Inc. |
||||||||
iCIMS, Inc. |
||||||||
Retina Midco, Inc. |
||||||||
Alkeme Intermediate Holdings, LLC |
||||||||
SPAR Marketing Force, Inc. |
||||||||
SLR Senior Lending Program LLC* |
||||||||
Copper River Seafoods, Inc. |
||||||||
Legacy Service Partners, LLC |
||||||||
Peter C. Foy & Associates Insurance Services, LLC |
||||||||
West-NR Parent, Inc. |
||||||||
Luxury Asset Capital, LLC |
||||||||
One Touch Direct, LLC |
||||||||
DeepIntent, Inc. |
||||||||
United Digestive MSO Parent, LLC |
||||||||
Kaseya, Inc. |
||||||||
The Townsend Company, LLC |
||||||||
Vertos Medical, Inc. |
||||||||
AMF Levered II, LLC |
||||||||
Foundation Consumer Brands, LLC |
||||||||
UVP Management, LLC |
||||||||
Kid Distro Holdings, LLC |
||||||||
Erie Construction Mid-west, LLC |
||||||||
Ultimate Baked Goods Midco LLC |
||||||||
Basic Fun, Inc. |
||||||||
SLR Equipment Finance * |
||||||||
Bayside Opco, LLC |
||||||||
SunMed Group Holdings, LLC |
||||||||
Urology Management Holdings, Inc. |
||||||||
SLR Healthcare ABL* |
||||||||
RxSense Holdings LLC |
||||||||
Tilley Distribution, Inc. |
||||||||
SCP Eye Care, LLC |
||||||||
GSM Acquisition Corp |
||||||||
December 31, 2023 |
December 31, 2022 |
|||||||
| Medrina, LLC |
||||||||
| Pinnacle Treatment Centers, Inc. |
||||||||
| High Street Buyer, Inc. |
||||||||
| ENS Holdings III Corp, LLC |
||||||||
| CC SAG Holdings Corp. (Spectrum Automotive) |
||||||||
| Crewline Buyer, Inc. |
||||||||
| Exactcare Parent, Inc. |
||||||||
| WCI-BXC Purchaser, LLC |
||||||||
| All States Ag Parts, LLC |
||||||||
| Vessco Midco Holdings, LLC |
||||||||
| TAUC Management, LLC |
||||||||
| Outset Medical, Inc. |
||||||||
| Apeel Technology, Inc. |
||||||||
| Human Interest, Inc. |
||||||||
| Glooko, Inc. |
||||||||
| World Insurance Associates, LLC |
||||||||
| Spectrum Pharmaceuticals, Inc. |
||||||||
| Arcutis Biotherapeutics, Inc. |
||||||||
| Atria Wealth Solutions, Inc. |
||||||||
| Accession Risk Management Group, Inc. |
||||||||
| Cerapedics, Inc. |
||||||||
| Maurices, Incorporated |
||||||||
| Meditrina, Inc. |
||||||||
| Plastics Management, LLC |
||||||||
| Pediatric Home Respiratory Services, LLC |
||||||||
| Ivy Fertility Services, LLC |
||||||||
| Composite Technology Acquisition Corp. |
||||||||
| NAC Holdings Corporation |
||||||||
| Montefiore Nyack Hospital |
||||||||
| Enverus Holdings, Inc. |
||||||||
| American Teleconferencing Services, Ltd. |
||||||||
| BayMark Health Services, Inc. |
||||||||
| |
|
|
|
|||||
| Total Commitments |
$ | $ | ||||||
| |
|
|
|
|||||
* |
The Company controls the funding of these commitments and may cancel them at its discretion. |
Shares |
Amount |
|||||||||||||||
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
|||||||||||||
| Shares issued in connection with the Mergers |
$ | $ | ||||||||||||||
| Shares repurchased |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) |
( |
) | $ | ( |
) | $ | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Description |
Industry |
Spread Above Index (1) |
Floor |
Interest Rate (2) |
Maturity Date |
Par Amount |
Cost |
Fair Value (3) |
||||||||||||||||||||||
| Aegis Toxicology Sciences Corporation (4) |
Health Care Providers & Services | S+ |
% | % | $ | $ | $ | |||||||||||||||||||||||
| Alkeme Intermediary Holdings, LLC (4) |
Insurance | S+ |
% | % | ||||||||||||||||||||||||||
| All States Ag Parts, LLC (4) |
Trading Companies & Distributors | S+ |
% | % | ||||||||||||||||||||||||||
| Apex Service Partners, LLC |
Diversified Consumer Services | S+ |
% | % | ||||||||||||||||||||||||||
| Atria Wealth Solutions, Inc. (4) |
Diversified Financial Services | S+ |
% | % | ||||||||||||||||||||||||||
| BayMark Health Services, Inc. (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| CC SAG Holdings Corp. (4) |
Diversified Consumer Services | S+ |
% | % | ||||||||||||||||||||||||||
| CVAUSA Management, LLC (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| ENS Holdings III Corp. & ES Opco USA LLC (4) |
Trading Companies & Distributors | S+ |
% | % | ||||||||||||||||||||||||||
| Erie Construction Mid-west, LLC |
Building Products | S+ |
% | % | ||||||||||||||||||||||||||
| Description |
Industry |
Spread Above Index (1) |
Floor |
Interest Rate (2) |
Maturity Date |
Par Amount |
Cost |
Fair Value (3) |
||||||||||||||||||||||
| Fertility (ITC) Investment Holdco, LLC (4) |
Health Care Providers & Services | S+ |
% | % | $ | $ | $ | |||||||||||||||||||||||
| Foundation Consumer Brands, LLC (4) |
Personal Products | S+ |
% | % | ||||||||||||||||||||||||||
| GSM Acquisition Corp. (4) |
Leisure Equipment & Products | S+ |
% | % | ||||||||||||||||||||||||||
| Higginbotham Insurance Agency, Inc. (4) |
Insurance | S+ |
% | % | ||||||||||||||||||||||||||
| High Street Buyer, Inc. |
Insurance | S+ |
% | % | ||||||||||||||||||||||||||
| iCIMS, Inc. (4) |
Software | S+ |
% | % | ||||||||||||||||||||||||||
| Kaseya, Inc. (4) |
Software | S+ |
% | % | ||||||||||||||||||||||||||
| Kid Distro Holdings, LLC (4) |
Software | S+ |
% | % | ||||||||||||||||||||||||||
| Maxor Acquisition, Inc. (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| ONS MSO, LLC (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| Pinnacle Treatment Centers, Inc. (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| Plastics Management, LLC (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| RQM+ Corp. (4) |
Life Sciences Tools & Services | S+ |
% | % | ||||||||||||||||||||||||||
| RxSense Holdings LLC (4) |
Diversified Consumer Services | S+ |
% | % | ||||||||||||||||||||||||||
| SunMed Group Holdings, LLC (4) |
Health Care Equipment & Supplies | S+ |
% | % | ||||||||||||||||||||||||||
| The Townsend Company, LLC (4) |
Commercial Services & Supplies | S+ |
% | % | ||||||||||||||||||||||||||
| Tilley Distribution, Inc. (4) |
Trading Companies & Distributors | S+ |
% | % | ||||||||||||||||||||||||||
| Ultimate Baked Goods Midco LLC (4) |
Packaged Foods & Meats | S+ |
% | % | ||||||||||||||||||||||||||
| United Digestive MSO Parent, LLC (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| Urology Management Holdings, Inc. (4) |
Health Care Providers & Services | S+ |
% | % | ||||||||||||||||||||||||||
| Vessco Midco Holdings, LLC (4) |
Water Utilities | S+ |
% | % | ||||||||||||||||||||||||||
| West-NR Parent, Inc.(4) |
Insurance | S+ |
% | % | ||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||
| (1) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor. |
| (2) | Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2023. |
| (3) | Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. |
| (4) | The Company also holds this security on its Consolidated Statements of Assets and Liabilities. |
| Description |
Industry |
Spread Above Index (1) |
Floor |
Interest Rate (2) |
Maturity Date |
Par Amount |
Cost |
Fair Value (3) |
||||||||||||||||||||||
| Atria Wealth Solutions, Inc. (4) |
Diversified Financial Services | S+ |
% | % | $ | $ | $ | |||||||||||||||||||||||
| BayMark Health Services, Inc. (4) |
Health Care Providers & Services | L+ |
% | % | ||||||||||||||||||||||||||
| ENS Holdings III Corp. & ES Opco USA LLC (4) |
Trading Companies & Distributors | L+ |
% | % | ||||||||||||||||||||||||||
| Foundation Consumer Brands, LLC (4) |
Personal Products | L+ |
% | % | ||||||||||||||||||||||||||
| High Street Buyer, Inc. (4) |
Insurance | L+ |
% | % | ||||||||||||||||||||||||||
| Ivy Fertility Services, LLC (4) |
Health Care Providers & Services | L+ |
% | % | ||||||||||||||||||||||||||
| Kid Distro Holdings, LLC (4) |
Software | L+ |
% | % | ||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||
| (1) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or SOFR. These instruments are typically subject to a LIBOR or SOFR floor. |
| (2) | Floating rate debt investments typically bear interest at a rate determined by reference to either the LIBOR (“L”) or SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2022. |
| (3) | Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. |
| (4) | The Company also holds this security on its Consolidated Statements of Assets and Liabilities. |
December 31, 2023 |
December 31, 2022 |
|||||||
| Selected Balance Sheet Information for SSLP: |
||||||||
| Investments at fair value (cost $ |
$ | $ | ||||||
| Cash and other assets |
||||||||
| |
|
|
|
|||||
| Total assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Debt outstanding ($ 106,900 and $0 face amounts, respectively, reported net of unamortized debt issuance costs of $1,697 and $0 , respectively) |
$ | $ | ||||||
| Distributions payable |
||||||||
| Interest payable and other credit facility related expenses |
||||||||
| Accrued expenses and other payables |
||||||||
| |
|
|
|
|||||
| Total liabilities |
$ | $ | ||||||
| |
|
|
|
|||||
| Members’ equity |
$ | $ | ||||||
| |
|
|
|
|||||
| Total liabilities and members’ equity |
$ | $ | ||||||
| |
|
|
|
|||||
Year ended December 31, 2023 |
For the Period December 1, 2022 (commencement of operations) through December 31, 2022 |
|||||||
| Selected Income Statement Information for SSLP: |
||||||||
| Interest income |
$ | $ | ||||||
| |
|
|
|
|||||
| Service fees* |
$ | $ | ||||||
| Interest and other credit facility expenses |
||||||||
| Organizational costs |
||||||||
| Other general and administrative expenses |
||||||||
| |
|
|
|
|||||
| Total expenses |
$ | $ | ||||||
| |
|
|
|
|||||
| Net investment income (loss) |
$ | $ | ( |
) | ||||
| |
|
|
|
|||||
| Realized gain on investments |
||||||||
| Net change in unrealized gain on investments |
||||||||
| |
|
|
|
|||||
| Net realized and unrealized gain on investments |
||||||||
| |
|
|
|
|||||
| Net income (loss) |
$ | $ | ( |
) | ||||
| |
|
|
|
|||||
| * | Service fees are included within the Company’s Consolidated Statements of Operations as other income. |
Item 9. |
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A. |
Controls and Procedures |
Item 9B. |
Other Information |
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Interested Director |
||||||||||
Michael S. Gross, 62 |
Chairman of the Board of Directors, Co-Chief Executive Officer and President. |
Class III Director since 2007; Term expires 2024. | Co-Chief Executive Officer of SLR Investment Corp. and SCP Private Credit Income BDC LLC since June 2019, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022, and President of SLR Investment Corp. since 2007, of SCP Private Credit Income BDC LLC since 2018, of SLR HC BDC LLC since 2020 and of SLR Private Credit BDC II LLC since 2022; Sole Chief Executive Officer of SLR Investment Corp. (February 2007-June 2019), and of SCP Private Credit Income BDC LLC (June 2018- June 2019). Previously, Co-Chief Executive Officer and President of SLR Senior Investment Corp. |
4 | Chairman of the Board of Directors of Global Ship Lease Inc. Previously Chairman of the Board of Directors of SLR Senior Investment Corp., where he served from 2010 to April 2022. |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Interested Director |
||||||||||
Bruce Spohler, 63 |
Co-Chief Executive Officer, Chief Operating Officer and Director |
Class II Director since 2009; Term expires 2026. | Co-Chief Executive Officer of SLR Investment Corp. and SCP Private Credit Income BDC LLC since June 2019, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022; Chief Operating Officer of SLR Investment Corp. since February 2007, of SCP Private Credit Income BDC LLC since June 2018, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022. |
4 | Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2010 to April 2022. |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Independent Director |
||||||||||
| Steven Hochberg, 62 | Director | Class II Director since 2007; Term expires 2026. | Operating Partner of Deerfield Management, a healthcare investment firm, since 2022. Partner of Deerfield Management from 2013 to 2021. Co-Founder and Manager of Ascent Biomedical Ventures, a venture capital firm focused on early stage investment and development of biomedical companies, since 2004. Co-Founder and Co-General Partner of Triatomic Capital, a technology focused venture capital firm, since 2022. |
4 | Since 2011, Mr. Hochberg had been the Chairman of the Board of Continuum Health Partners until its merger with Mount Sinai in 2013, where he is a Vice Chairman of Mount Sinai Health System, a non-profit healthcare integrated delivery system in New York City. Director of a number of private healthcare companies and the Cardiovascular |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
| Research Foundation, an organization focused on advancing new technologies and education in the field of cardiovascular medicine. Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022. |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Independent Director |
||||||||||
| Leonard A. Potter, 62 | Director | Class III Director since 2009; Term expires 2024. | President and Chief Investment Officer of Wildcat Capital Management, LLC since 2011; Senior Managing Director of Vida Ventures I and II, each a biotech venture fund, since 2017; Managing Director of Soros Private Equity at Soros Fund Management LLC from 2002 to 2009. | 4 | Director of Hilton Grand Vacations Inc. since 2017, of SuRo Capital Corp. since 2011, and of several private companies. Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022. |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director(2) |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Independent Director |
||||||||||
| David S. Wachter, 60 | Director | Class I Director since 2007; Term expires 2025. | Founding Partner and Managing Partner of W Capital Partners, a private equity fund manager, since 2001. | 4 | Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022. |
Name, Address and Age(1) |
Position(s) Held with Company |
Terms of Office and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Director |
Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex | |||||
Independent Director |
||||||||||
| Andrea C. Roberts, 67 | Director | Class I Director since 2023; Term expires 2025. | Co-Founder and Managing Director of Genesis Capital Corporation, an investment banking firm, since 1994; President and sole owner of Orbis Associates, Inc., a consulting firm providing consulting services to Genesis Capital Corporation on an exclusive basis, since 1994. |
1 | Director of Trinity Episcopal School from 2019 to 2022. |
| (1) | The business address of the director nominees and other directors is c/o SLR Investment Corp., 500 Park Avenue, New York, New York 10022. |
| (2) | The Company is part of a “Fund Complex,” as that term is defined in Schedule 14A and Regulation 14A under the 1934 Act. Messrs. Gross, Spohler, Hochberg, Potter and Wachter each also have served as directors of SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since 2018, 2020 and 2022, respectively, which are investment companies that have each elected to be regulated as a business development company (“BDC”) and are part of the Fund Complex. Mr. Gross has served as Chairman of SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since 2018, 2020 and 2022, respectively. Mr. Potter also serves as a director of SuRo Capital Corp., which is a closed-end management investment company that has elected to be regulated as a BDC. |
Name, Address, and Age (1) |
Position(s) Held with Company |
Number of Portfolios in Fund Complex Overseen by Officer |
Principal Occupation(s) During Past 5 Years | |||
| Shiraz Y. Kajee, 44 | Chief Financial Officer and Treasurer | 4 | Chief Financial Officer and Treasurer of the Company, SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since April 2023. From December 2015 through March 2023, Mr. Kajee served as a Managing Director at New Mountain Capital, L.L.C., which included serving as Chief Financial Officer and Treasurer of New Mountain Finance Corporation since 2015, of NMF SLF I, Inc. since 2019, of New Mountain Guardian III BDC, L.L.C. since 2019 and of New Mountain Guardian IV BDC, L.L.C. since 2022. | |||
| Guy Talarico, 68 | Chief Compliance Officer and Secretary | 4 | Chief Compliance Officer of the Company since July 2008, chief compliance officer of SCP Private Credit Income BDC LLC since June 2018, chief compliance officer of SLR HC BDC LLC since September 2020, and chief compliance officer of SLR Private Credit BDC II LLC since April 2022. Secretary of the Company, SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since November 2023; Mr. Talarico currently serves as General Counsel and Chief Compliance Officer for SLR Capital Partners, LLC since May 2023. In addition, Mr. Talarico previously served as the chief compliance officer of SLR Senior Investment Corp. from December 2010 until April 2022. Mr. Talarico previously served as managing director of ACA Group, LLC (successor to Foreside Consulting Services LLC, and ultimate successor to Alaric Compliance Services, LLC, which he founded in December 2005). Mr. Talarico holds a B.S. ChE from Lehigh University, an M.B.A. from Fairleigh Dickinson University and a J.D. from New York Law School. | |||
| (1) | The business address of the executive officers is c/o SLR Investment Corp., 500 Park Avenue, New York, New York 10022. |
Item 11. |
Executive Compensation |
Name |
Fees Earned or Paid in Cash (1) |
Stock Awards (2) |
All Other Compensation |
Total |
||||||||||||
Interested Directors |
||||||||||||||||
Michael S. Gross |
— | — | — | — | ||||||||||||
Bruce Spohler |
— | — | — | — | ||||||||||||
Independent Directors |
||||||||||||||||
Steven Hochberg |
$ | 133,000 | — | — | $ | 133,000 | ||||||||||
David S. Wachter |
$ | 128,000 | — | — | $ | 128,000 | ||||||||||
Leonard A. Potter |
$ | 128,000 | — | — | $ | 128,000 | ||||||||||
Andrea C. Roberts (3) |
$ | 41,239 | — | — | $ | 41,239 | ||||||||||
| (1) | For a discussion of the independent directors’ compensation, see below. |
| (2) | We do not maintain a stock or option plan, non-equity incentive plan or pension plan for our directors. However, our independent directors have the option to receive all or a portion of the directors’ fees to which they would otherwise be entitled in the form of shares of our common stock issued at a price per share equal to the greater of our then current net asset value per share or the market price at the time of payment. No shares were issued to any of our independent directors in lieu of cash during 2023. |
| (3) | Ms. Roberts was appointed to the board of directors on August 28, 2023. |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Name and Address of Beneficial Owner |
Number of Shares Owned Beneficially(1) |
Percentage of Class(2) |
||||||
Interested Directors |
||||||||
Michael S. Gross(3)(4) |
3,829,913 | 7.0 | % | |||||
Bruce Spohler(3) |
3,516,273 | 6.4 | % | |||||
Independent Directors |
||||||||
Steven Hochberg |
2,742 | * | ||||||
Leonard A. Potter |
14,872 | * | ||||||
David S. Wachter |
53,494 | * | ||||||
Andrea C. Roberts |
— | — | ||||||
Executive Officers |
||||||||
Shiraz Y. Kajee |
7,500 | * | ||||||
Guy Talarico |
31,899 | * | ||||||
All executive officers and directors as a group (8 persons) |
4,458,780 |
8.2 |
% | |||||
Thornburg Investment Management Inc.(5) |
4,338,599 | 8.0 | % | |||||
| * | Represents less than one percent. |
(1) |
Beneficial ownership has been determined in accordance with Rule 13d-3 under the 1934 Act. Assumes no other purchases or sales of our common stock since the most recently available SEC filings. This assumption has been made under the rules and regulations of the SEC and does not reflect any knowledge that we have with respect to the present intent of the beneficial owners of our common stock listed in this table. |
(2) |
Based on a total of 54,554,634 shares of the Company’s common stock issued and outstanding as of February 23, 2024. |
(3) |
Includes 1,285,013 shares held by Solar Capital Investors, LLC and 715,000 shares held by Solar Capital Investors II, LLC, 355,107 shares held by Solar Senior Capital Investors, LLC and 77 shares held by SLR Capital Management, LLC, a portion of each which may be deemed to be indirectly beneficially owned by Michael S. Gross, by Bruce Spohler and a grantor retained annuity trust (“GRAT”) setup by and for Mr. Gross by virtue of their collective ownership interest therein. Also includes 642,716 shares held by Solar Capital Partners Employee Stock Plan LLC, which is controlled by SLR Capital Partners, LLC. Mr. Gross and Mr. Spohler may be deemed to beneficially own a portion of the shares held by Solar Capital Partners Employee Stock Plan LLC by virtue of their collective ownership interest in SLR Capital Partners, LLC. Each of Mr. Gross and Mr. Spohler disclaim beneficial ownership of any shares of our common stock directly held by Solar Capital Partners Employee Stock Plan LLC, Solar Capital Investors, LLC, Solar Capital Investors II, LLC, Solar Senior Capital Investors, LLC and SLR Capital Management, LLC, except to the extent of their respective pecuniary interest therein. Also includes 199,466 shares held in a trust of which Bruce Spohler became co-trustee in which he and certain members of his immediate family are beneficiaries (the “Spohler Trust”) and 243,021 shares held by a limited liability company in which he owns a pro rata interest (the “Spohler LLC”). Mr. Spohler disclaims beneficial ownership of the shares in the Spohler Trust and the Spohler LLC. |
(4) |
Includes 152,166 shares directly held by Michael S. Gross’ profit sharing plan (the “Profit Sharing Plan”). Mr. Gross may be deemed to directly beneficially own these shares as the sole participant in the Profit |
Sharing Plan. Also includes 117,617 shares held by certain trusts for the benefit of family members for which Mr. Gross serves as trustee (the “Family Trusts”). The total includes 334,428 shares held by the GRAT. Mr. Gross may be deemed to directly beneficially own these shares by virtue of his control with respect to the Family Trusts, and disclaims beneficial ownership of the securities held by the Family Trusts except to the extent of his pecuniary interest therein. |
(5) |
Based upon information contained in the Schedule 13G filed February 9, 2024 by Thornburg Investment Management Inc. Such securities are held by certain investment vehicles controlled and/or managed by Thornburg Investment Management Inc. or its affiliates. The address for Thornburg Investment Management Inc. is 2300 North Ridgetop Road, Santa Fe, New Mexico 87506. |
Name of Director |
Dollar Range of Equity Securities Beneficially Owned in the Company(1)(2) |
Dollar Range of Equity Securities Beneficially Owned in the Fund Complex(1)(2)(3) | ||
Interested Directors |
||||
Michael S. Gross |
Over $ 100,000 | Over $ 100,000 | ||
Bruce Spohler |
Over $ 100,000 | Over $ 100,000 | ||
Independent Directors |
||||
Steven Hochberg |
$10,001- $50,000 |
$10,001- $50,000 | ||
Leonard A. Potter |
Over $ 100,000 | Over $ 100,000 | ||
David S. Wachter |
Over $ 100,000 | Over $ 100,000 | ||
Andrea C. Roberts |
None | None |
(1) |
The dollar ranges are: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000, or Over $100,000. |
(2) |
The dollar range of equity securities beneficially owned in us is based on the closing price for our common stock of $14.89 on February 23, 2024 on the NASDAQ Global Select Market. Beneficial ownership has been determined in accordance with Rule 16a-1(a)(2) of the 1934 Act. |
(3) |
The dollar range of equity securities in the Fund Complex beneficially owned by directors of the Company, if applicable, is the total dollar range of equity securities in the Company beneficially owned by the directors, as no director has beneficial ownership of SCP Private Credit Income BDC LLC, SLR HC BDC LLC or SLR Private Credit BDC II LLC. |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
| • | the nature, extent and quality of advisory services to be rendered, including information about the investment performance of the Company relative to its stated objectives and in comparison to the |
performance of the Company’s peer group and relevant market indices, and concluded that such services are satisfactory and the Company’s investment performance is reasonable; |
| • | the experience and qualifications of the personnel of SLR Capital Partners providing such services, including information about the backgrounds of the investment personnel, the allocation of responsibilities among such personnel and the process by which investment decisions are made, and concluded that SLR Capital Partners’ personnel have extensive experience and are well qualified; |
| • | the current fee structure, the existence of any fee waivers, and the Company’s anticipated expense ratios in relation to those of other investment companies having comparable investment policies and limitations, and concluded that the proposed fee structure is reasonable; |
| • | the fees charged by SLR Capital Partners to the Company, to SCP Private Credit Income BDC LLC, to SLR HC BDC LLC and to SLR Private Credit BDC II LLC, and comparative data regarding the advisory fees charged by other investment advisers to similar investment companies, and concluded that the fees to be charged by SLR Capital Partners to the Company are reasonable; |
| • | the direct and indirect costs, including for personnel and office facilities, that may be incurred by SLR Capital Partners and its affiliates in performing services for the Company and the basis of determining and allocating these costs, and concluded that the direct and indirect costs, including the allocation of such costs, are reasonable; |
| • | possible economies of scale arising from the Company’s size and/or anticipated growth, and the extent to which such economies of scale are reflected in the advisory fees charged by SLR Capital Partners to the Company, and concluded that some economies of scale may be possible in the future; |
| • | other possible benefits to SLR Capital Partners and its affiliates arising from their relationships with the Company, and concluded that all such other benefits were not material to SLR Capital Partners and its affiliates; and |
| • | possible alternative fee structures or bases for determining fees, and concluded that the Company’s current fee structure and bases for determining fees are satisfactory. |
Item 14. |
Principal Accountant Fees and Services |
Fiscal Year Ended December 31, 2023 |
Fiscal Year Ended December 31, 2022 |
|||||||
Audit Fees |
$ | 803.0 | $ | 828.1 | ||||
Audit-Related Fees |
— | — | ||||||
Tax Fees |
186.6 | 166.3 | ||||||
All Other Fees |
— | 20.0 | ||||||
Total Fees: |
$ | 989.6 | $ | 1,014.4 | ||||
Item 15. |
Exhibit and Financial Statement Schedules |
Page |
||||
| 107 | ||||
| 108 | ||||
| 111 | ||||
| 112 | ||||
| 113 | ||||
| 114 | ||||
| 115 | ||||
| 136 | ||||
| (1) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 7 (File No. 333-148734) filed on January 7, 2010. |
| (2) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 (File No 333-148734) filed on February 9, 2010. |
| (3) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on November 29, 2010. |
| (4) | Previously filed in connection with SLR Senior Investment Corp.’s report on Form 8-K (File No. 814-00849) filed on August 31, 2011. |
| (5) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 6 (File No. 333-172968) filed on November 16, 2012. |
| (6) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 10 (File No. 333-172968) filed on November 12, 2013. |
| (7) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 25, 2014. |
| (8) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 5 (File No. 333-194870) filed on November 22, 2017. |
| (9) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on August 6, 2018. |
| (10) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 20, 2020. |
| (11) | Previously filed in connection with SLR Senior Investment Corp.’s report on Form 10-Q (File No. 814-00849) filed on May 7, 2020. |
| (12) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 24, 2021. |
| (13) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on February 25, 2021. |
| (14) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on December 1, 2021. |
| (15) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on January 3, 2022. |
| (16) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on January 12, 2022. |
| (17) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on March 1, 2022. |
| (18) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on April 1, 2022. |
| (19) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on October 12, 2022. |
| (20) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 28, 2023. |
| (21) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on August 30, 2023. |
| * | Filed herewith. |
Item 16. |
Form 10-K Summary |
SLR INVESTMENT CORP. |
||||||||
| By: | / S / MICHAEL S. GROSS |
/ S / BRUCE J. SPOHLER | ||||||
Michael S. Gross Co-Chief Executive Officer, President, Chairman of the Board and DirectorDate: February 27, 2024 |
Bruce J. Spohler Co-Chief Executive Officer, Chief Operating Officer and DirectorDate: February 27, 2024 | |||||||
Date |
Signature |
Title | ||
| February 27, 2024 | / S / MICHAEL S. GROSS Michael S. Gross |
Co-Chief Executive Officer, President, Chairman of the Board and Director (Principal Executive Officer) | ||
| February 27, 2024 | / S / BRUCE J. SPOHLER Bruce J. Spohler |
Co-Chief Executive Officer, Chief Operating Officer and Director (Principal Executive Officer) | ||
| February 27, 2024 | / S / STEVEN HOCHBERG Steven Hochberg |
Director | ||
| February 27, 2024 | / S / DAVID S. WACHTER David S. Wachter |
Director | ||
| February 27, 2024 | / S / LEONARD A. POTTER Leonard A. Potter |
Director | ||
| February 27, 2024 | / S / ANDREA C. ROBERTS Andrea C. Roberts |
Director | ||
| February 27, 2024 | / S / SHIRAZ Y. KAJEE Shiraz Y. Kajee |
Chief Financial Officer (Principal Financial Officer) | ||