Financial Performance - Total investment income for the three months ended September 30, 2022, increased by 0.4million,or11.23.748 million compared to 3.372millioninthesameperiodof2021[263].−FortheninemonthsendedSeptember30,2022,totalinvestmentincomedecreasedby3.0 million, or 22.1%, to 10.389millioncomparedto13.342 million in the same period of 2021[264]. - Operating expenses for the three months ended September 30, 2022, decreased by 1.3million,or27.03.566 million compared to 4.882millioninthesameperiodof2021[265].−FortheninemonthsendedSeptember30,2022,operatingexpensesdecreasedby3.4 million, or 21.9%, to 12.186millioncomparedto15.601 million in the same period of 2021[266]. - The company recorded a net decrease in net assets resulting from operations of 3.0millionforthethreemonthsendedSeptember30,2022,and8.9 million for the nine months ended September 30, 2022[269]. - The company recognized 5.2millionofnetrealizedlossesand10.3 million of net realized gains on portfolio investments during the three and nine months ended September 30, 2022, respectively[267]. - The net change in unrealized appreciation (depreciation) on investments was 2.0millionforthethreemonthsendedSeptember30,2022,and(17.3) million for the nine months ended September 30, 2022[268]. Investment Portfolio - As of September 30, 2022, the fair value of the investment portfolio was approximately 193.1million,consistingofinvestmentsin54portfoliocompanies[249].−Thedebtinvestmentportfoliorepresented79.48.9 million[257]. - The portfolio composition by industry as of September 30, 2022, showed healthcare investments at 33.3million,representing17.3119.4 million, representing 61.9% of the total portfolio fair value as of September 30, 2022[258]. Financial Obligations and Capital Structure - The Company had approximately 83.8millioninrepaymentsandsalesduringtheninemonthsendedSeptember30,2022,resultinginnetrepaymentsoflessthan0.1 million[253]. - Total contractual obligations as of September 30, 2022, amounted to 110.8million,including50.0 million for 2026 Notes and 15.0millionfor2032ConvertibleNotes[288].−TheCompanyissued15.0 million in aggregate principal amount of 5.25% fixed-rate convertible notes due April 1, 2032[273]. - The Company issued 50.0millionin2026Noteswithafixedinterestrateof5.2550.0 million in aggregate principal amount of 2026 Notes outstanding as of September 30, 2022[279]. - The Company redeemed 50.0millionofthe2022NotesonDecember6,2021,andhadno2022NotesoutstandingasofSeptember30,2022[280].−AsofSeptember30,2022,thecompanyhaddrawn45.8 million from the KeyBank Credit Facility, with an aggregate principal amount of up to 75.0millionavailable[272].−TheoutstandingamountontheKeyBankCreditFacilitywas45.8 million, with a variable interest rate of one-month SOFR + 2.90% and an interest rate floor of 0.40%[304]. Tax and Regulatory Compliance - The company has a requirement to distribute at least 90% of its net ordinary income to maintain RIC tax treatment[199]. - The company must distribute at least 90.0% of its investment company taxable income to qualify as a RIC under U.S. federal tax law[240]. - The company will incur a 4.0% excise tax on undistributed income if it does not distribute at least 98.0% of its ordinary income in any calendar year[240]. - The tax years ended December 31, 2021, 2020, 2019, and 2018 remain subject to examination by tax authorities[242]. Valuation and Accounting Policies - The company has identified investment valuation, revenue recognition, and income taxes as its most critical accounting estimates[217]. - The company records investment transactions on the trade date, with realized gains or losses calculated using the specific identification method[218]. - The fair value of investments may fluctuate significantly from period to period due to inherent uncertainties[223]. - The company utilizes a multi-step valuation process, including market quotes, recent trading activity, and discounted cash flows[222]. - The company recognizes interest income on an accrual basis, including paid-in-kind (PIK) interest, to the extent that amounts are expected to be collected[233]. - Non-accrual investments are reviewed when they become 90 days or more past due, ceasing interest income recognition if the borrower cannot service its debt[234]. - The company recorded a valuation allowance on deferred tax assets of 2.9millionasofSeptember30,2022,comparedto2.5 million as of December 31, 2021[248]. - The company recognized an increase in the valuation allowance of 0.4millionduringtheninemonthsendedSeptember30,2022[248].RiskFactors−Thecompanyissubjecttofinancialmarketrisks,particularlychangesininterestrates,whichmayimpactitscostoffundingandinterestincome[303].−Inaprolongedlowinterestrateenvironment,thecompany′snetinterestincomemaybeadverselyaffectedduetothecompressionofinterestincomeandexpenses[306].−Thecompany’snetinvestmentincomeissensitivetochangesinmarketinterestrates,whichcouldhaveamaterialadverseeffectonitsfinancialperformance[305].−A300basispointincreaseininterestratescouldresultinanetincomeincreaseof2.56 million, while a 300 basis point decrease could lead to a net income decrease of 1.95million[307].−ThecompanydidnotengageinhedgingactivitiesfortheninemonthsendedSeptember30,2022,exposingittointerestratefluctuations[303].CorporateStructureandGovernance−ThecompanywasformedtoexpandthebusinessofLegacyFundsthroughadditionaldebtandequityinvestments[200].−ThecompanyisregulatedasabusinessdevelopmentcompanyundertheInvestmentCompanyActof1940[195].−Thecompanyhasconsolidatedfinancialstatementsthatincludeitswhollyownedsubsidiaries[214].−TheInvestmentAdvisoryAgreementallowstheInvestmentAdvisortochargeaBaseManagementFeeandanIncentiveFee[296].−TheCompanyenteredintoanewAdministrationAgreementwithBCPartnersManagementLLConJuly1,2021,foradministrativeservices[300].−Thecompanyevaluatesstrategicopportunities,includingpotentialmergerswithaffiliatedfunds[205].CashandLiquidity−TheCompanyhad11.3 million in cash and cash equivalents as of September 30, 2022[285]. - The company had outstanding unfunded commitments related to debt investments totaling 2.4milliontoAccordionPartnersLLCand3.1 million to Critical Nurse Staffing, among others, amounting to a total of 12.5million[301].−Thecompanyheld38securitieswithavariableinterestrate,representingapproximately76.350.0 million in 2026 Notes and $15.0 million in 2032 Convertible Notes, were bearing interest at a fixed rate as of September 30, 2022[304].