The following discussion and analysis should be read in conjunction with our
financial statements and related notes and other financial information appearing
elsewhere in this annual report on Form 10-K.

Overview



We make impact investments in SMEs that provide the opportunity to achieve both
competitive financial returns and positive measurable impact. We were organized
as a Delaware limited liability company on April 30, 2012. We have operated and
intend to continue to operate our business in a manner that will permit us to
maintain our exemption from registration under the Investment Company Act of
1940, as amended. We use the proceeds raised from the issuance of units to
invest in SMEs through local market sub-advisors in a diversified portfolio of
financial assets, including direct loans, loan participations, convertible debt
instruments, trade finance, structured credit and preferred and common equity
investments. A substantial portion of our assets consists of collateralized
private debt instruments, which we believe offer opportunities for competitive
risk-adjusted returns and income generation. We are externally managed and
advised by TriLinc Advisors, LLC, or the Advisor. The Advisor is an investment
advisor registered with the SEC.

Our business strategy is to generate competitive financial returns and positive
economic, social and environmental impact by providing financing to SMEs, which
we define as those business having less than 500 employees, primarily in
developing economies. To a lesser extent, we may also make impact investments in
companies that may not meet our technical definition of SMEs due to a larger
number of employees but that also provide the opportunity to achieve both
competitive financial returns and positive measurable impact. We generally
expect that such investments will have similar investment characteristics as
SMEs as defined by us. Our style of investment is referred to as impact
investing, which J.P. Morgan Global Research and Rockefeller Foundation in a
2010 report called "an emerging alternative asset class" and defined as
investing with the intent to create positive impact beyond financial return. We
believe it is possible to generate competitive financial returns while creating
positive, measurable impact. We measure the economic, social and environmental
impact of our investments using industry-standard metrics, including the Impact
Reporting and Investment Standards. Through our investments in SMEs, we intend
to enable job creation and stimulate economic growth.

We commenced the Offering on February 25, 2013. Pursuant to the Offering, we
were offering on a continuous basis up to $1.5 billion in units of our limited
liability company interest, consisting of up to $1.25 billion of units in the
primary offering consisting of Class A and Class C units at initial offering
prices of $10.00 and $9.576 per unit, respectively, and Class I units at $9.025
per unit, and up to $250 million of units pursuant to our Distribution
Reinvestment Plan. SC Distributors, LLC was the dealer manager for the Offering.
In May 2012, the Advisor purchased 22,161 Class A units for aggregate gross
proceeds of $200,000. On June 11, 2013, we satisfied the minimum offering
requirement of $2,000,000 when the Sponsor purchased 321,330 Class A units for
aggregate gross proceeds of $2,900,000 and we commenced operations. The Offering
terminated on March 31, 2017. Through the termination of the Offering, we raised
approximately $361,776,000 in gross proceeds, including approximately
$13,338,000 raised through our Distribution Reinvestment Plan.

Upon termination of the primary portion of the Offering, we registered $75
million in Class A, Class C and Class I units to continue to be offered pursuant
to our Distribution Reinvestment Plan to the investors who have purchased units
in the Offering. Units issued pursuant to our Distribution Reinvestment Plan are
being offered at the price equal to the net asset value per unit of each class
of units, as most recently disclosed by the Company in a public filing with the
SEC at the time of reinvestment. Our Distribution Reinvestment Plan was amended,
effective May 25, 2020, to allow holders of all classes of units other than
Class Z units to participate, including holders who purchased units in our
private placements. The offering must be registered or exempt from registration
in every state in which we offer or sell units. If the offering is not exempt
from registration, the required registration generally is for a period of one
year. Therefore, we may have to stop selling units in any state in which the
registration is not renewed annually and the offering is not otherwise exempt
from registration.

From time to time we opportunistically seek to raise capital through sales of
our common units in private placements that are exempt from registration under
the Securities Act, as amended (the "Securities Act"). For example, we currently
are seeking to raise up to $500,000,000 in a continuous private offering of our
Class Y and Class Z units that will expire on August 25, 2022, unless extended
or terminated earlier by us.

For the year ended December 31, 2021, we issued 1,069,529 of our units pursuant
to our Distribution Reinvestment Plan for gross proceeds of approximately
$8,000,000. In addition, for the year ended December 31, 2021, we issued 814,444
of our units for gross proceeds of approximately $6,106,000 pursuant to our
ongoing private placement described above. As of December 31, 2021, $29,429,000
in units remained available for sale pursuant to the Distribution Reinvestment
Plan.

For the year ended December 31, 2020, we issued 1,181,117 of our units pursuant
to our Distribution Reinvestment Plan for gross proceeds of approximately
$9,274,000. In addition, for the year ended December 31, 2020, we issued 667,151
of our units for gross proceeds of approximately $5,276,000 pursuant to a
private placement.

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From our inception to December 31, 2021, we have issued an aggregate of
55,218,582 of our units, including 7,037,116 units issued under our Distribution
Reinvestment Plan, for gross proceeds of approximately $507,136,000 including
approximately $58,909,000 reinvested under our Distribution Reinvestment Plan
(before dealer manager fees of approximately $4,800,000 and selling commissions
of $16,862,000), for net proceeds of $485,474,000.


Impact of COVID-19



The ongoing COVID-19 pandemic (more commonly referred to as the Coronavirus),
including the recent spread of the Delta variant and emergence of the Omicron
and other variants, continues to adversely impact many industries and businesses
directly or indirectly. Adverse impacts include disrupted global travel and
supply chains, which adversely impact global commercial activity. Many
businesses across the globe have seen a downturn in production and productivity
due to the suspension of business and temporary closure of offices and factories
that was prevalent during most of 2020 and continued into 2021 in certain areas,
including particularly in developing markets, in an attempt to curb the spread
of the Coronavirus. Although economic contractions associated with such
suspensions and closures have subsided either in whole for most advanced
economies or in part for most developing economies, the economic recovery has
been significantly affected by supply chain disruptions and higher input costs.
These issues have more acutely affected developing economies. The Company
believes that most regions in which it invests are poised to achieve economic
normalization once the supply chain disruptions and input cost increases
dissipate. However, the Company expects economic recovery to be slower in
Sub-Saharan Africa, where vaccination rates have been lower than in the rest of
the world and the impact of COVID-19 is likely to impede economic recovery more
so than in other regions. Any of these adverse developments could have a
material adverse effect on our business, financial condition and results of
operations. In addition, if COVID-19 cases began to spike again globally, as we
saw with recent variants, it could further adversely impact the Company's
borrowers' businesses, financial condition and results of operations, which
could result in their inability to make required payments in the near term and
impact the fair value of the Company's investments. Although multiple vaccines
have been approved for use in certain countries and the vaccination rates in the
United States and most advanced economies have been encouraging, there is still
uncertainty as to when a sufficient portion of the population will be vaccinated
such that restrictions and safety protocols can be fully relaxed in certain of
the regions in which the Company invests. During the years ended December 31,
2021 and 2020, the Company made material adjustments to the fair value of
certain of its investments, in part due to the impact of COVID-19. These
adjustments, which amounted to approximately $6,368,000 and $6,418,000,
respectively, in the aggregate during the years ended December 31, 2021 and
2020, were made with respect to 18.5% and 23.0%, respectively, of the Company's
investments (calculated based on the aggregate fair value of the Company's total
investments).

Although the Coronavirus has created material uncertainty and economic
disruption, due to the rapidly evolving nature of the situation, the Company
cannot predict the ultimate impact it will have on us. The Company is managing
the situation through active engagement with its borrowers and is analyzing the
potential effects COVID-19 may have on the portfolio or any potential capital
deployments. Additionally, our Advisor has implemented its business continuity
plan and additional procedures designed to protect against the introduction of
the Coronavirus to the workforce, including permitting employees to work
remotely and significantly enhanced office sterilization procedures to minimize
the probability of contagion.

While many of the Company's borrowers' businesses have experienced some
disruption related to COVID-19, degrees of effect have varied.  For example, as
indicated under "Watch List Investments," below, the borrowers with respect to
the investment added to the Watch List for the year ended December 31, 2021 and
three of the six investments added to the Watch List for the year ended December
31, 2020 have not made required payments in part due to adverse impacts they
have experienced related to the COVID-19 pandemic, as well as due to the adverse
impacts of supply chain disruptions and higher input costs associated with
shortages of goods and labor. Where appropriate, the Company and/or the
Company's sub-advisors are working with borrowers to restructure facilities and
may restructure additional facilities to provide relief needed by certain
borrowers, without necessarily providing concessions that are out of market. Due
in part to the disruptions associated with COVID-19 as well as due to the supply
chain disruptions and increased input costs, the Company can provide no
assurances that it will be able to continue to collect interest and principal
payments at levels comparable to those prior to the pandemic. Further, the
Company can provide no assurances that it will be able to recover all past due
amounts from delinquent borrowers. The economic uncertainty and disruption
described above is expected to continue and the Company may see further defaults
and additional investments may be added to the Watch List in subsequent
quarters. The adverse impact of COVID-19 was one of the material contributors to
the approximate $0.48 decline in our NAV per unit as of December 31, 2021, as
compared to the Company's NAV per unit as of December 31, 2020.

In addition, the Company saw a slowdown in transaction volume due to the impact
of the pandemic through most of 2021, as smaller SMEs and those in industries
most affected by COVID-19 (travel and hospitality, retail sales, etc.) were no
longer in a position to appropriately add debt capital. While transaction volume
has increased in recent months, it has not yet recovered to pre-pandemic levels
and may continue to be affected by restrictions on travel and other shelter in
place orders, making it more difficult to conduct in-person visits with
potential borrowers. Additionally, in future periods, the Company may hold
higher levels of cash than before the pandemic to ensure it has sufficient cash
available to meet its cash obligations. Uncertain or inconsistent deployment of
capital or higher cash balances each have the potential to further reduce cash
flow generated to cover the Company's distributions to its unitholders and/or
cause the Company to further reduce its NAV in future periods.

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Outlook



As noted above, the pandemic has had an adverse impact on many of our borrowers.
The adverse impact on the global supply chain has been one of the largest
challenges for our borrowers, as most of them are exporters directly tied to
global trade. Some of these challenges include: demand from suppliers to be paid
in cash rather than supplier credit, significant increases in shipping costs
(when and if shipping is reliably available), and delays in the payment of
receivables, all of which put pressure on borrowers' working capital needs.
Similarly, our borrowers experienced challenges related to the decrease in
global demand during 2021, which resulted in declines in revenue for many of
them. While many of our borrowers have been able to manage these declines by
proactively reducing their operating expenses, a return to pre-pandemic global
demand levels will be critical to our borrowers seeing a sustainable recovery
with respect to revenue. As conditions continue to improve, due to the easing of
restrictions and lockdowns that were put in place to curb the spread of
COVID-19, global demand has recovered. However, in order to see a full
normalization of economic conditions, supply chain challenges must be eased. As
noted above, we have seen improvement in conditions as vaccinations are deployed
globally in greater numbers, but we believe the effective distribution of
vaccines to the populations of emerging market countries will remain critical to
a full economic recovery for our affected borrowers. The delay of vaccination
distribution in emerging market countries, where many of our borrowers are
located, caused a lag in their economic recovery in 2021, which we expect to
improve in coming quarters, particularly if supply chain disruptions and input
costs normalize.

Investments

Our investment objectives are to provide our unitholders current income, capital
preservation, and modest capital appreciation. These objectives are achieved
primarily through SME trade finance and term loan financing, while employing
rigorous risk-mitigation and due diligence practices, and transparently
measuring and reporting the economic, social and environmental impacts of our
investments. The majority of our investments are senior and other collateralized
loans to SMEs with established, profitable businesses in developing economies.
To a lesser extent, we may also make investments in financing to companies that
may not meet our technical definition of SMEs due, for example, to the companies
having a larger number of employees, but that also provide the opportunity to
achieve both competitive financial returns and positive measurable impact.
Furthermore, we may also make investments in developed economies, including the
United States. With the sub-advisors that our Advisor has contracted with to
assist the Advisor in implementing the Company's investment program, we expect
to provide growth capital financing generally ranging in size from $5-20 million
per transaction for direct SME loans and $500,000 to $15 million for trade
finance transactions. We seek to protect and grow investor capital by:
(1) targeting countries with favorable economic growth and investor protections;
(2) partnering with sub-advisors with significant experience in local markets;
(3) focusing on creditworthy lending targets who have at least 3-year operating
histories and demonstrated cash flows enabling loan repayment; (4) making
primarily debt investments, backed by collateral and borrower guarantees;
(5) employing best practices in our due diligence and risk mitigation processes;
and (6) monitoring our portfolio on an ongoing basis. By providing additional
liquidity to growing small businesses, we believe we support both economic
growth and the expansion of the global middle class.

Investments will continue to be primarily credit facilities and participations
in credit facilities to developing economy SMEs, including trade finance and
term loans, through the Advisor's team of professional sub-advisors with a local
presence in the markets where they invest. As of December 31, 2021, more than a
majority of our investments were in the form of participations and we expect
that future investments will continue to be primarily participations. We
typically provide financing that is collateralized, has a short to medium-term
maturity and is self-liquidating through the repayment of principal. Our
counterparty for participations generally will be the respective sub-advisor or
its affiliate that originates the loan in which we are participating. We will
not have a contract with the underlying borrower and therefore, in the event of
default, we will not have the ability to directly seek recovery against the
collateral and instead will have to seek recovery through our sub-advisor
counterparty, which increases the risk of full recovery.

Certain investments, including loans and participations, may carry equity
warrants on borrowers, which allow us to buy shares of the portfolio company at
a given price, which we will exercise at our discretion during the life of the
portfolio company. Our goal is to ultimately dispose of such equity interests
and realize gains upon the disposition of such interests. However, these
warrants and equity interests are illiquid and it may be difficult for the
Company to dispose of them. In addition, we expect that any warrants or other
return enhancements received when we make or invest in loans may require several
years to appreciate in value and may not appreciate at all.

LIBOR



In July 2017, the United Kingdom's Financial Conduct Authority ("FCA") announced
it intends to stop compelling banks to submit rates for the calculation of
LIBOR. As a result, the U.S. Federal Reserve, in conjunction with the
Alternative Reference Rates Committee, identified the Secured Overnight
Financing Rate ("SOFR") as its preferred alternative rate for LIBOR in
derivatives and other financial contracts. Any changes adopted by the FCA or
other governing bodies in the method used for determining LIBOR may result in a
sudden or prolonged increase or decrease in reported LIBOR. If that were to
occur, interest rates of our debt could decrease, which could adversely affect
our operating results. In addition, uncertainty about the extent and manner of
future changes may result in interest rates that are higher or lower than if
LIBOR were to remain available in the current form.

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LIBOR is expected to be phased out or modified by June 2023, and new contracts
ceased to be written using LIBOR at the beginning of 2022. As of December 31,
2021, 18% of the fair value of the Company's total investments bore interest at
floating rates based on LIBOR, with an alternative rate to be designated by the
Company in the event that LIBOR is unavailable. There can be no assurances as to
whether such replacement or alternative rate will be more or less favorable than
LIBOR. We intend to monitor the developments with respect to the potential
phasing out of LIBOR after June 2023 and work with our sub-advisors to seek to
ensure any transition away from LIBOR will have minimal impact on our
investments, but we can provide no assurances regarding the impact of the
discontinuation of LIBOR.

Revenues



Since we anticipate that the majority of our assets will continue to consist of
trade finance instruments and term loans, we expect that the majority of our
revenue will continue to be generated in the form of interest. Our senior and
subordinated debt investments may bear interest at a fixed or floating rate.
Interest on debt securities is generally payable monthly, quarterly or
semi-annually. In some cases, some of our investments provide for deferred
interest payments or PIK interest. The principal amount of the debt securities
and any accrued but unpaid interest generally is due at the maturity date. In
addition, we generate revenue in the form of acquisition and other fees in
connection with some transactions. Original issue discounts and market discounts
or premiums are capitalized, and we accrete or amortize such amounts as interest
income. We record prepayment premiums on loans and debt securities as interest
income. Dividend income, if any, will be recognized on an accrual basis to the
extent that we expect to collect such amounts.

Expenses

Our primary operating expenses include the payment of asset management fees and expenses reimbursable to our Advisor under the Advisory Agreement

We bear all other costs and expenses of our operations and transactions.



From our inception through December 31, 2017, under the terms of the
Responsibility Agreement, our Sponsor assumed substantially all our operating
expenses. Our Sponsor has not assumed any of our operating expenses subsequent
to December 31, 2017. As of December 31, 2017, the Sponsor had agreed to pay a
cumulative total of approximately $16.7 million of operating expenses, of which
approximately $16.3 million have not been reimbursed to the Sponsor as of
December 31, 2021.

Portfolio and Investment Activity



During the year ended December 31, 2021, we invested approximately $52.3 million
across six separate portfolio companies, including three new borrowers. Our
investments consisted of senior secured trade finance participations, senior
secured term loan participations, senior secured term loans, other investments,
and equity warrants. Additionally, we received proceeds from repayments of
investment principal of approximately $40.9 million.

During the year ended December 31, 2020, we invested approximately $25.5 million
across four portfolio companies. Our investments consisted of senior secured
trade finance participations, senior secured term loan participations, senior
secured term loans and other investments. Additionally, we received proceeds
from repayments of investment principal of approximately $82.5 million.

At December 31, 2021 and 2020, the Company's investment portfolio included 36 and 41 companies, respectively, and the fair value of our portfolio was comprised of the following:



                                         As of December 31, 2021                      As of December 31, 2020
                                   Investments           Percentage of          Investments           Percentage of
                                  at Fair Value        Total Investments       at Fair Value        Total Investments

Senior secured term loans        $    119,374,062                    39.6 %   $    106,899,154                    37.2 %
Senior secured term loan
participations                        132,290,743                    43.9 %        129,917,253                    45.2 %
Senior secured trade finance
participations                         45,092,689                    15.0 %         45,800,210                    15.9 %
Other investments *                     3,758,063                     1.2 %          3,758,063                     1.3 %
Equity warrants                         1,088,168                     0.4 %          1,199,618                     0.4 %
Total investments                $    301,603,725                   100.0 %   $    287,574,298                   100.0 %


* This investment was originally classified as an investment in a credit facility

originated by IIG TOF B.V.




As of December 31, 2021, the weighted average yields, based upon the cost of our
portfolio, on trade finance participations, term loan participations, senior
secured term loans, and other investments were 10.5%, 11.7%, 11.6%, and 8.8%,
respectively, for a weighted average yield on investments of approximately 11.4%
on our total portfolio.

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As of December 31, 2020, the weighted average yields, based upon the cost of our
portfolio, on trade finance participations, term loan participations, senior
secured term loans, and other investments were 10.4%, 12.3%, 11.4%, and 8.8%,
respectively, for a weighted average yield on investments of approximately 11.6%
on our total portfolio.


Concentration Limits

The Company is subject to the following concentration limits:


  • Maximum 45% regional exposure


  • Maximum 20% country exposure


  • Maximum 5% individual investment exposure



We may only make investments that do not cause us to exceed these limits on the
date of investment. These limits are calculated as a percentage of the aggregate
of all outstanding principal balances on our investments and our cash balances
on the date of investment. As of December 31, 2021 and 2020, the Company was in
compliance with all of the above concentration limits.

Watch List Investments

Please see "Notes to Consolidated Financial Statements-Note 3. Investments-Watch List Investments."




Interest Receivable

Depending on the specific terms of our investments, interest earned by us is
payable either monthly, quarterly, or, in the case of most trade finance
investments, at maturity. As such, some of our investments have up to a year or
more of accrued interest receivable as of December 31, 2021. Our interest
receivable balances at December 31, 2021 and 2020 are recorded at the amounts
that we expect to collect. In addition, certain of our investment in term loans
accrue deferred interest, which is not payable until the maturity of the loans.
Accrued deferred interest included in the interest receivable balance as of
December 31, 2021 and 2020 amounted to approximately $3,487,000 and $3,418,000,
respectively.


Results of Operations

Consolidated operating results for the years ended December 31, 2021 and 2020
are as follows:

                                                      Year Ended
                                       December 31, 2021       December 31, 2020
Investment income
Interest income                       $        36,414,948     $        42,240,413
Interest from cash                                 41,937                  96,445
Total investment income                        36,456,885              42,336,858
Expenses
Asset management fees                           7,065,751               7,334,178
Incentive fees                                  3,320,467               5,320,776
Professional fees                               3,237,170               3,842,481
General and administrative expenses             1,314,923               1,414,586
Interest expense                                  195,056                 254,682
Board of managers fees                            257,500                 257,500
Total expenses                                 15,390,867              18,424,203
Net investment income                 $        21,066,018     $        23,912,655


Revenues

For the years ended December 31, 2021 and 2020, total investment income amounted
to $36,456,885 and $42,336,858, respectively. Interest income decreased by
$5,825,465 during 2021 as a result of a decrease in the weighted average yield
of approximately 0.2% from a weighted average yield of 11.6% for 2020 to
approximately 11.4% for 2021. The decrease in yield was primarily due to the
annualized impact of certain non-performing positions having been previously put
on non-accrual status for approximately $1.5 million, a one-time positive
adjustment to investment income due to a final settlement of an investment
position in 2020 for approximately $2.7 million and the remainder is primarily
attributable to lower variable interest rates in our portfolio.

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During the year ended December 31, 2021, $22,057,685 or 60.6% of the interest
income earned came from loan and trade finance participations and $14,357,263 or
39.4% came from direct loans. In addition, we earned $41,937 in interest income
on our cash balances.

During the year ended December 31, 2020, $28,152,629 or 66.7% of the interest
income earned came from loan and trade finance participations and $14,087,784 or
33.3% came from direct loans. In addition, we earned $96,445 in interest income
on our cash balances.


Expenses

Total operating expenses, excluding the asset management and incentive fees,
incurred for the year ended December 31, 2021 decreased by $764,600 to
$5,004,649 from $5,769,249 for the year ended December 31, 2020. The decrease
was primarily due to the following: 1) a decrease in interest expense of
$59,626, which was attributable to a decrease in outstanding indebtedness, 2) a
decrease in general and administrative expenses of $99,663 which was primarily
due to a decrease in travel expenses, and 3) decrease in professional fees of
$605,311 which was primarily due to less fees incurred for legal, valuation and
accounting services in connection with the valuation of our portfolio and our
ongoing efforts to recover amounts outstanding with respect to investments for
which IIG was the sub-advisor.

For the years ended December 31, 2021 and 2020, the asset management fees
amounted to $7,065,751 and $7,334,178, respectively. The incentive fees for the
years ended December 31, 2021 and 2020 amounted to $3,320,467 and $5,320,776,
respectively. The decrease in incentive fees is due to the decrease in revenue
during the year ended December 31, 2021.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation on Investments.



We measure net realized gains or losses by the difference between the net
proceeds from the repayment or sale of an investment and the amortized cost
basis of the investment, without regard to unrealized appreciation or
depreciation previously recognized, but considering unamortized upfront fees and
prepayment penalties. Net change in unrealized appreciation or depreciation
reflects the change in portfolio investment fair market values during the
reporting period, including any reversal of previously recorded unrealized
appreciation or depreciation, when gains or losses are realized. We recorded
realized losses of $4,008,719 and $0 for the years ended December 31, 2021 and
2020. We recorded unrealized losses of $13,643,894 and $15,037,022 for the years
ended December 31, 2021 and 2020, respectively. These realized and unrealized
losses were primarily driven by macro events, including the uncertainty created
by the COVID-19 pandemic and its impact on the future cash flows generated by
our investments as well as the ultimate realization of the underlying
collateral.

Financial Condition, Liquidity and Capital Resources



As of December 31, 2021, we had approximately $16.8 million in cash. We generate
cash primarily from cash flows from interest, dividends and fees earned from our
investments and principal repayments, proceeds from sales of our investments and
from sales of promissory notes, and proceeds from private placements of our
units. We may also generate cash in the future from debt financing. Our primary
use of cash will be to make loans, either directly or through participations,
payments of our expenses, payments on our notes and any other borrowings, and
cash distributions to our unitholders. We expect to maintain cash reserves from
time to time for investment opportunities, working capital and distributions. As
noted above, the combination of a slower pace of deployment of capital with
higher cash balances may further reduce cash flows generated to cover our
distributions to our unitholders and/or cause us to further reduce our NAV in
future periods. From the beginning of the Company's operations to date, our
Sponsor has assumed a significant portion of our operating expenses under the
Responsibility Agreement in the amount of approximately $16.7 million. The
Company may only reimburse the Sponsor for expenses assumed by the Sponsor
pursuant to the Responsibility Agreement to the extent the Company's investment
income in any quarter, as reflected on the statement of operations, exceeds the
sum of (a) total distributions to unitholders incurred during the quarter and
(b) the Company's expenses as reflected on the statement of operations for the
same quarter (the "Reimbursement Hurdle"). To the extent the Company is not
successful in satisfying the Reimbursement Hurdle, no amount will be payable in
that quarter by the Company for reimbursement to the Sponsor of the Company's
cumulative operating expenses. The Company did not meet the Reimbursement Hurdle
for the quarter ended December 31, 2021. Therefore, none of the expenses of the
Company covered by the Responsibility Agreement have been recorded as expenses
of the Company for the quarter ended December 31, 2021. As of December 31, 2021,
there is a remaining aggregate balance of approximately $16.3 million in
operating expenses assumed by the Sponsor pursuant to the Responsibility
Agreement which have not been recorded by the Company. Thus, such amounts are
not yet reimbursable by the Company to the Sponsor. Such reimbursements to the
Sponsor would affect the amount of cash available to the Company to pay
distributions and/or make investments.

We may borrow additional funds to make investments. We have not decided to what
extent going forward we will finance portfolio investments using debt or the
specific form that any such financing would take, but we believe that obtaining
financing is necessary for us to fully achieve our long-term goals. We have
been, and still are, actively seeking further financing through both development
banks and several commercial banks. Accordingly, we cannot predict with
certainty what terms any such financing would have or the

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costs we would incur in connection with any such arrangement. On August 7, 2017,
TGIFC issued $5 million in the first of a Series 1 Senior Secured Promissory
Notes private offering to State Street Australia Ltd ACF Christian Super
("Christian Super"). On December 18, 2018, TGIFC issued $5 million of Series 2
Senior Secured Promissory Notes to Christian Super. As of December 31, 2021,
TGIFC has $5.0 million total outstanding under the Christian Super notes. For
more information on this note, please see "Notes to Consolidated Financial
Statements- Note 7. Notes Payable-Christian Super Promissory Note." As of
December 31, 2021, we had $5.0 million in total debt outstanding with a debt to
equity ratio of 1.5%. We extended and repaid the CS Note in full in January
2022.

Company Strategy



Although the Company has a perpetual duration, we disclosed previously that if
we do not consummate a liquidity event by August 25, 2021, we would commence an
orderly liquidation of our assets unless a majority of the board of managers,
including a majority of the independent managers, determines that liquidation is
not in the best interests of our unitholders. In light of this previous
disclosure, beginning in late 2020, the board of managers, together with our
management, conducted a review of the risks and benefits of various potential
strategic alternatives, with the goal of determining what is in the best
interests of the Company and our unitholders.  The board of managers engaged a
nationally recognized investment bank to evaluate possible strategic
alternatives, including: liquidation; continuing as an operating company;
listing the Company's units on a national securities exchange; and merger with
another company.  After review and discussion of the strategic alternatives and
market conditions, the board of managers, including all of the independent
managers, determined in May 2021 that the commencement of a liquidation of our
assets in August 2021 was not in the best interests of the unitholders and
approved the continuation of operations for at least an additional 12 months
thereafter, until August 26, 2022. This decision was consistent with the
recommendation of management and the investment bank. The board of managers and
management believe that this will provide the Company with time to stabilize its
portfolio and NAV as the world begins to emerge from the adverse impact of the
pandemic. In addition, the Company will continue to pursue leverage, which, if
obtained, is expected to be accretive as the portfolio stabilizes. The board of
managers will revisit this analysis no later than August 26, 2022 and then may
continue to reassess strategic alternatives annually, or may determine to extend
the period between its considerations of alternatives for a longer period.


Distributions



We have paid distributions commencing with the month beginning July 1, 2013, and
we intend to continue to pay distributions on a monthly basis. From time to
time, we may also pay interim distributions at the discretion of our board.
Distributions are subject to the board of managers' discretion and applicable
legal restrictions and accordingly, there can be no assurance that we will make
distributions at a specific rate or at all. Distributions are made on all
classes of our units at the same time. The cash distributions received by our
unitholders with respect to the Class C units, Class W units and certain Class I
units, are and will continue to be lower than the cash distributions with
respect to Class A and certain other Class I units because of the distribution
fee relating to Class C units, the ongoing dealer manager fee relating to Class
W units and Class I units issued pursuant to a private placement and the ongoing
service fee relating to the Class W units, which are expenses specific to those
classes of units. Amounts distributed to each class are allocated among the
unitholders in such class in proportion to their units. Distributions are paid
in cash or reinvested in units, for those unitholders participating in the
Distribution Reinvestment Plan. For the year ended December 31, 2021, we paid a
total of $26,030,110 in distributions, comprised of $18,030,422 paid in cash and
$7,999,688 reinvested under our Distribution Reinvestment Plan.

Related Party Transactions

For the years ended December 31, 2021 and 2020, the Advisor earned $7,065,751, and $7,334,178, respectively, in asset management fees and $3,320,467 and $5,320,776, respectively, in incentive fees.



From our inception through September 30, 2017, pursuant to the terms of the
Responsibility Agreement, the Sponsor has paid approximately $12,421,000 of
operating expenses, asset management fees, and incentive fees on our behalf and
will reimburse us an additional $4,240,231 of expenses, which we had paid as of
September 30, 2017. Such expenses, in the aggregate of approximately $16,274,000
since the Company's inception, may be expensed and payable by the Company to the
Sponsor only if the Company satisfies the Reimbursement Hurdle. The Company did
not meet the Reimbursement Hurdle for the quarter ended December 31, 2021.
Therefore, none of the expenses of the Company covered by the Responsibility
Agreement have been recorded as expenses of the Company for the quarter ended
December 31, 2021.

As of December 31, 2021 and 2020, due from affiliates on the Consolidated
Statements of Assets and Liabilities in the amount of $4,240,231 and $4,057,734,
respectively was due from the Sponsor pursuant to the Responsibility Agreement
for operating expenses which were paid by the Company, but, under the terms of
the Responsibility Agreement, are the responsibility of the Sponsor. The Sponsor
anticipates paying this receivable in the due course of business.

For the years ended December 31, 2021 and 2020, we paid SC Distributors, the
dealer manager for certain of our offerings, approximately $432,000 and
$468,000, respectively in ongoing distributions fees, dealer manager fees and
service fees.

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Legal Proceedings

As of December 31, 2021, the Company was not a party to any material legal proceedings other than as set forth in "Notes to Consolidated Financial Statements-Note 3. Investments-Watch List Investments."

Critical Accounting Policies and Use of Estimates



In preparing our Consolidated Financial Statements in accordance with GAAP and
pursuant to the rules and regulations promulgated by the SEC, we make
assumptions, judgments and estimates that can have a significant impact on our
net income/loss and affect the reported amounts of certain assets, liabilities,
revenue and expenses, and related disclosures. On an ongoing basis, we evaluate
our estimates and discuss our critical accounting policies and estimates with
the audit committee of our board of managers. We base our estimates on
historical experience and various other assumptions that we believe to be
reasonable under the circumstances. Actual results could differ materially from
these estimates under different assumptions or conditions.

There have been no significant changes to our critical accounting policies,
estimates and judgments during year ended December 31, 2021, compared to the
critical accounting policies, estimates and judgments disclosed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
included in our Annual Report on Form 10-K for the year ended December 31, 2020.

The preparation of financial statements in conformity with GAAP requires the
Company's management to make estimates and assumptions that affect the amounts
reported in the financial statements. Although these estimates are based on
management's knowledge of current events and actions it may undertake in the
future, actual results may differ from these estimates. In particular, the
COVID-19 pandemic has adversely impacted and is likely to further adversely
impact the Company's business, the businesses of the Company's borrowers and the
global markets generally. The full extent to which the pandemic will directly or
indirectly impact the Company's business, results of operations and financial
condition, including fair value measurements, will depend on future developments
that are highly uncertain and difficult to predict. These developments include,
but are not limited to, the duration and spread of the outbreak, its severity,
the actions to contain the virus or address its impact, governmental actions to
contain the spread of the pandemic and respond to the reduction in global
economic activity, and how quickly and to what extent normal economic and
operating conditions can resume.

Revenue Recognition



The Company records interest income on an accrual basis to the extent that we
expect to collect such amounts. The Company does not accrue as a receivable
interest on loans for accounting purposes if there is reason to doubt the
ability to collect such interest. Structuring, upfront and similar fees are
recorded as a discount on investments purchased and are accreted into interest
income, on a straight line basis, which we have determined not to be materially
different from the effective yield method.

The Company records prepayment fees for loans and debt securities paid back to us prior to the maturity date as interest income upon receipt.



The Company generally place loans on non-accrual status when there is a
reasonable doubt that principal or interest will be collected. If, however,
management believes the principal and interest will be collected, a loan may be
left on accrual status during the period the Company is pursuing repayment of
the loan. Interest payments received on non-accrual loans may be recognized as
income or applied to principal depending upon management's judgment of the
financial condition of the borrower. Non-accrual loans are generally restored to
accrual status when past due principal and interest is paid and, in our
management's judgment, is likely to remain current over the remainder of the
term.

Valuation of Investments

The Company accounts for all of its investments at fair value with changes in
fair value recognized in the consolidated statement of operations. Fair value is
the price that would be received when selling an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date. The Company has categorized its investments into a three-level
fair value hierarchy as discussed in Note 2.

Most of the Company's investments are loans to private companies, which are not
actively traded in any market and for which quotations are not available. For
those investments for which market quotations are not readily available, or when
such market quotations are deemed by the Advisor not to represent fair value,
the Company's board of managers has approved a multi-step valuation process to
be followed each fiscal quarter, as described below:

1. Each investment is valued by the Advisor in collaboration with the relevant

sub-advisor;

2. For all investments with a stated maturity of greater than 12 months, the

Company engages a third-party independent valuation firm to perform certain

limited procedures that we have identified and requested the independent

valuation firm perform a review on the reasonableness of the Company's

internal estimates of fair value on each asset on a quarterly rotating basis,


     with


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each of such investments being reviewed at least annually. In addition, the

Company engaged an independent valuation firm to perform certain limited

procedures that the Company identified and requested the independent valuation

firm to perform to provide an estimate of the range of fair value of material

investments on the Watch List. The analysis performed by the independent

valuation firm was based upon data and assumptions provided to it by the

Company and received from third party sources, which the independent valuation

firm relied upon as being accurate without independent verification. The

results of the analyses performed by the independent valuation firm are among

the factors taken into consideration by the Company and its management in

making its determination with respect to the fair value of such investments,

but are not determinative. The Company and its management are solely and


    ultimately responsible for determining the fair value of the Company's
    investments in good faith;

3. The audit committee of the Company's board of managers reviews and discusses

the preliminary valuation prepared by the Advisor and any report rendered by

the independent valuation firm; and

4. The board of managers discusses the valuations and determines the fair value


     of each investment in the Company's portfolio in good faith based on the
     inputs which include but are not limited to, inputs of the Advisor, the

independent valuation firm and the audit committee. The Company's board of

managers and the Company is solely and ultimately responsible for the

determination, in good faith, of the fair value of each investment.

Below is a description of factors that the Company's board of managers may consider when valuing its investments.



Any potential valuation adjustments are subject to a materiality threshold as
determined by the Advisor. Due to the fact that all non-Watch List investments
are performing loans, with no macroeconomic indicator or other event observed
that would reasonably be expected to have a material impact on the underlying
performance or collateral value of the investment, most of these investments
generally do not deviate materially from the amortized cost. If, pursuant to the
Company's quarterly review, the Company determines that one or more material
valuation adjustments are appropriate, then the Company adjusts the fair value.
Historically, in most cases these adjustments that have resulted in a fair value
that is materially different from amortized cost have resulted in the Company's
determination to place the investment on the Watch List.

Fixed income investments are typically valued utilizing a market approach,
income approach, collateral based approach, or a combination of these approaches
(and any others, as appropriate). The market approach uses prices and other
relevant information generated by market transactions involving identical or
comparable assets or liabilities (including the sale of a business) and is used
less frequently due to the private nature of our investments. The income
approach uses valuation techniques to convert future amounts (for example,
interest and principal payments) to a single present value amount (Discounted
Cash Flow or "DCF") calculated based on an appropriate discount rate. The
measurement is based on the net present value indicated by current market
expectations about those future amounts. For Watch List investments, we may use
a collateral based approach (also known as a liquidation or net recovery
approach). The collateral based approach uses estimates of the collateral value
of the borrower's assets using an expected recovery model. When using the
collateral based approach, the Company determines the fair value of the
remaining assets, discounted to reflect the anticipated amount of time to
recovery and the uncertainty of recovery. The Company also may make further
adjustments to account for anticipated costs of recovery, including legal fees
and expenses. In following a given approach, the types of factors that it may
take into account in valuing our investments include, as applicable:

• Macro-economic factors that are relevant to the investment or the underlying

borrower

• Industry factors that are relevant to the investment or the underlying

borrower

• Historical and projected financial performance of the borrower based on most


    recent financial statements


  • Borrower draw requests and payment track record


  • Loan covenants, duration and drivers

• Performance and condition of the collateral (nature, type and value) that

supports the investment

• Sub-Advisor recommendation as to possible impairment or reserve, including


    updates and feedback


  • For participations, our ownership percentage of the overall facility

• Key inputs and assumptions that are believed to be most appropriate for the


    investment and the approach utilized


  • Applicable global interest rates


  • Impact of investments placed on non-accrual status


With respect to warrants and other equity investments, as well as certain fixed
income investments, the Company may also look to private merger and acquisition
statistics, public trading multiples discounted for illiquidity and other
factors, valuations implied by third-party investments in the portfolio
companies, option pricing models or industry practices in determining fair
value. the Company may also consider the size and scope of a portfolio company
and its specific strengths and weaknesses, as well as any other factors we deem
relevant in measuring the fair values of its investments.

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Recent Accounting Pronouncements



See Note 2 to the Company's accompanying Consolidated Financial Statements for a
description of recent accounting pronouncements and its expectation of their
impact on the Company's results of operations and financial condition.

Subsequent Events

Please see "Notes to Consolidated Financial Statements-Note 11. Subsequent Events."


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