Item 7.01 REGULATION FD DISCLOSURE.
The implied IRR calculations include the performance of all new monies invested
during the Calculation Period. For such investments exited during the
Calculation Period, all actual cash inflows and outflows during the Calculation
Period that were attributable to the investment were used to calculate the
implied IRRs. For all other such investments, the implied IRRs were calculated
(i) using all actual cash inflows and outflows during the Calculation Period
that were attributable to the investment and (ii) assuming that the fair market
value of the investment, as well as any accrued but unpaid interest on the
Calculation End Date were realized in cash as of such date. For the Calculation
Period, such implied IRRs were 9.0% on a gross basis and 4.9% on a net basis,
based on
Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the sale, repayment or other exit of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized.
The implied IRRs on a gross basis are calculated using cash flows that are gross of any fees, costs or expenses incurred by the Company. The implied IRRs on a net basis are calculated using cash flows that are net of Applicable Fees. "Applicable Fees" equal the management fee, incentive fee based on income (before giving effect to any fee waiver during the most recent fiscal quarter) and operating expenses (excluding management fee, incentive fee based on income, incentive fee based on capital gains and leverage expenses including interest, credit facility fees and other debt expenses), respectively, incurred by the Company during the most recent fiscal quarter (Q3 2022) expressed as a percentage of total investments of the Company, at fair market value, as of the end of Q2 2022. For purposes of calculating the implied IRR on a net basis, all Applicable Fees are annualized. The Applicable Fees are applied to total invested capital throughout the Calculation Period for the purpose of calculating net implied IRR. The net implied IRR is calculated on the basis of the Company's gross assets. Applicable Fees do not include leverage expenses and are expressed as a percentage of the Company's total invested capital (instead of being expressed as a percentage of the Company's net assets, as expenses typically are expressed in the Company's consolidated financial statements).
The Applicable Fees are calculated solely for the Advisor's marketing purposes unrelated to the Company. Investors should not rely upon the gross or net implied IRRs shown above as a measure of the performance of the Company or its portfolio. There is no assurance that the fee and expense assumptions used for these calculations will be representative of fees and expenses incurred by the Company.
The implied IRRs shown above reflect only the performance of new monies invested during the Calculation Period and not the performance of the entire investment portfolio of the Company over any period of time. We would expect that any such implied IRRs for the entire investment portfolio would be lower than the implied IRRs shown here. Investors should not rely upon the implied IRRs shown above as a measure of the performance of the Company or its portfolio as they do not represent returns experienced by an owner of the Company's common stock. A common stockholder's actual returns are subject to higher expense ratios when expenses are expressed as a percentage of the Company's net assets and leverage expenses are included. There can be no assurance that these implied IRRs could be generated in the future for any investment.
The information disclosed under this Item 7.01 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
--------------------------------------------------------------------------------
© Edgar Online, source