0000950170-23-061094 | 10-Q | XBRL Viewer

N-2 - USD ($) $ / shares in Units, $ in Millions								9 Months Ended
N-2 - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2023	Apr. 01, 2022	Oct. 29, 2021	Jun. 26, 2017	May 26, 2017	May 25, 2017	May 16, 2017	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Cover [Abstract]
Entity Central Index Key								0001571329
Amendment Flag								false
Securities Act File Number								814-01022
Document Type								10-Q
Entity Registrant Name								Logan Ridge Finance Corporation
Entity Address, Address Line One								650 Madison Avenue
Entity Address, Address Line Two								23rd Floor
Entity Address, City or Town								New York
Entity Address, State or Province								NY
Entity Address, Postal Zip Code								10022
City Area Code								212
Local Phone Number								891-2880
Entity Emerging Growth Company								false
General Description of Registrant [Abstract]
Investment Objectives and Practices [Text Block]	The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company offers customized financing to business owners, management teams, and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion, and other growth initiatives. The Company invests in first lien loans, and, to a lesser extent, second lien loans and equity securities issued by lower middle-market and traditional middle-market companies.							Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We provide capital to lower and traditional middle-market companies in the United States (“U.S.”), with a non-exclusive emphasis on the Southeast, Southwest, and Mid-Atlantic regions. We invest primarily in companies with a history of earnings growth and positive cash flow, proven management teams, products or services with competitive advantages, and industry-appropriate margins. We primarily invest in companies with between $5.0 million and $50.0 million in trailing twelve-month earnings before interest, tax, depreciation, and amortization (“EBITDA”). We invest in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle-market and traditional middle-market companies.
Risk Factors [Table Text Block]								Item 1A. Risk Factors In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Annual Report on Form 10-K”), which could materially affect our business, financial condition and/or operating results. The risks described in the Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors set forth in the Annual Report on Form 10-K.
Share Price	$ 20.75							$ 20.75		$ 17.96
NAV Per Share	$ 34.78							$ 34.78	$ 35.04	$ 36.21	$ 39.48
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt [Table Text Block]								We use and intend to use existing cash primarily to originate investments in new and existing portfolio companies, pay distributions to our stockholders, and repay indebtedness. Since our IPO, we have raised approximately $136.0 million in net proceeds from equity offerings through September 30, 2023. KeyBank Credit Facility On October 30, 2020, Capitala Business Lending, LLC (“CBL”), a direct, wholly owned, consolidated subsidiary of the Company, entered into a senior secured revolving credit agreement (“the KeyBank Credit Facility”) with the investment adviser at the time, as collateral manager, the lenders from time to time parties thereto (each, a “Lender”), KeyBank National Association, as administrative agent, and U.S. Bank National Association, as custodian. The KeyBank Credit Facility was amended on May 10, 2022 and October 20, 2022. Under the KeyBank Credit Facility, the Lenders have agreed to extend credit to CBL in an aggregate principal amount of up to $75.0 million as of May 10, 2022, with an uncommitted accordion feature that allows the Company to borrow up to an additional $125.0 million. The KeyBank Credit Facility matures on May 10, 2027, unless there is an earlier termination or event of default. The period during which the Lenders may make loans to CBL under the KeyBank Credit Facility commenced on October 30, 2020 and will continue through May 10, 2025, unless there is an earlier termination or event of default. Borrowings under the KeyBank Credit Facility bear interest at 1M Term SOFR plus 2.90% during the 3-year revolving period and 3.25% thereafter, with a 0.40% 1M Term SOFR floor. CBL will also pay an unused commitment fee at a rate of (1) 1.00% if utilization is less than or equal to 30.0%, (2) 0.65% if utilization is greater than 30.0% but less than or equal to 60.0%, or (3) 0.35% if utilization is greater than 60.0%, per annum on the unutilized portion of the aggregate commitments under the KeyBank Credit Facility. As of September 30, 2023, there were draws of $35.9 million on the KeyBank Credit Facility. The KeyBank Credit Facility includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. As of September 30, 2023, assets pledged to secure the KeyBank Credit Facility had a fair value of $101.8 million. 2032 Convertible Notes On April 1, 2022, the Company issued $15.0 million in aggregate principal amount of 5.25% fixed-rate convertible notes due April 1, 2032 (the “2032 Convertible Notes”). The 2032 Convertible Notes are convertible, at the holder’s option and at any time on or prior to the close of business on the business day immediately preceding the maturity date, into such number of shares of the Company’s common stock as is equal to the principal balance of the notes being converted on such date divided by the “Conversion Price,” as described below. The Company will not issue more than 539,503 shares of common stock in the aggregate under the purchase agreement governing the 2032 Convertible Notes (the “Purchase Agreement”); however, such number of shares may be adjusted from time to time to give effect to any forward or reverse stock splits with respect to the common stock as well as any further adjustments described in the purchase agreement. The “Conversion Price” will be equal to the average “Closing Sale Price” for the five “Trading Days” immediately prior to the relevant “Conversion Date,” as those terms are defined in the Purchase Agreement, subject to certain anti-dilutive provisions, as further described in the Purchase Agreement. No holder of a 2032 Convertible Note will be entitled to convert any such note or portion thereof if such conversion would result in more than $7,500,000 in principal amount of 2032 Convertible Notes being converted in any such calendar quarter. The Company has determined that the embedded conversion option in the 2032 Convertible Notes is not required to be separately accounted for as a derivative under U.S. GAAP. The Company obtained an Investment Grade rating from a Nationally Recognized Statistical Rating Organization (“NRSRO”) with respect to the 2032 Convertible Notes. The 2032 Convertible Notes have a fixed interest rate of 5.25% per annum payable semi-annually on March 31 and September 30 of each year, commencing on September 30, 2022, subject to a step up of 0.75% per annum to the extent that the 2032 Convertible Notes are downgraded below Investment Grade by an NRSRO or the 2032 Convertible Notes no longer maintain a rating from an NRSRO. The Company will also be required to pay an additional interest rate of 2.0% per annum (x) on any overdue payment of interest and (y) during the continuance of an “Event of Default.” The Company intends to use the net proceeds from the offering of the 2032 Convertible Notes for general corporate purposes, which may include repaying outstanding indebtedness, making opportunistic investments and paying corporate expenses. In addition, on the occurrence of a “Change in Control Repurchase Event” or “Delisting Event,” as defined in the Purchase Agreement, the Company will generally be required to make an offer to purchase the outstanding 2032 Convertible Notes at a price equal to 100% of the principal amount of such 2032 Convertible Notes plus accrued and unpaid interest to the repurchase date. The 2032 Convertible Notes are redeemable prior to maturity. No “sinking fund” is provided for the 2032 Convertible Notes. As of September 30, 2023, the Company had $15.0 million in 2032 Convertible Notes outstanding. 2026 Notes On October 29, 2021, the Company issued $50.0 million in aggregate principal amount of 5.25% fixed rate notes due October 30, 2026 (the “2026 Notes”) pursuant to a supplemental indenture with U.S. Bank National Association (the “Trustee”), which supplements that certain base indenture, dated as of June 16, 2014. The 2026 Notes were issued in a private placement exempt from registration under the Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The net proceeds to the Company were approximately $48.8 million, after deducting estimated offering expenses. The Notes will mature on October 30, 2026 and may be redeemed in whole or in part at the Company's option at any time or from time to time at the redemption prices set forth in the Indenture. The Notes bear interest at a rate of 5.25% per year payable semi-annually on April 30 and October 30 of each year, commencing on April 30, 2022. The Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities. In July 2022, pursuant to the requirements of a registration rights agreements entered into in connection with the offering described above, the Company completed an exchange offer pursuant to which all of the outstanding 2026 Notes were exchanged for notes with substantially identical terms, but that are registered under the Securities Act (which notes are also referred to herein as the “2026 Notes”). As of September 30, 2023, the Company had approximately $50.0 million in aggregate principal amount of 2026 Notes outstanding. 2022 Notes On May 16, 2017, the Company issued $70.0 million in aggregate principal amount of 6.0% fixed-rate notes due May 31, 2022 (the “2022 Notes”). On May 25, 2017, we issued an additional $5.0 million in aggregate principal amount of the 2022 Notes pursuant to a partial exercise of the underwriters’ overallotment option. On November 1, 2021, we notified the Trustee for the 2022 Notes of the Company's election to redeem $50.0 million aggregate principal amount of the 2022 Notes outstanding. The redemption was completed on December 6, 2021. On May 31, 2022, the 2022 Notes reached maturity, and the entire outstanding principal of the 2022 Notes became payable and was paid by the Company. Accordingly, as of both September 30, 2023, there were no 2022 Notes outstanding. The 2022 Notes were subject to redemption in whole or in part at any time or from time to time at our option on or after May 31, 2019 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2022 Notes was payable quarterly. The 2022 Notes were listed on the NASDAQ Global Select Market under the trading symbol “CPTAL” with a par value of $25.00 per share. 2022 Convertible Notes On May 26, 2017, the Company issued $50.0 million in aggregate principal amount of 5.75% fixed-rate convertible notes due May 31, 2022 (the “2022 Convertible Notes”). On June 26, 2017, we issued an additional $2.1 million in aggregate principal amount of the 2022 Convertible Notes pursuant to a partial exercise of the underwriters’ overallotment option. On May 31, 2022, the 2022 Convertible Notes reached maturity, and the entire outstanding principal of the 2022 Convertible Notes became payable, and was paid by the Company. Accordingly, as of September 30, 2023, there were no 2022 Convertible Notes outstanding. Interest on the 2022 Convertible Notes was payable quarterly. The 2022 Convertible Notes were listed on the NASDAQ Capital Market under the trading symbol “CPTAG” with a par value of $25.00 per share.
KeyBank Credit Facility
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt, Title [Text Block]								KeyBank Credit Facility On October 30, 2020, Capitala Business Lending, LLC (“CBL”), a direct, wholly owned, consolidated subsidiary of the Company, entered into a senior secured revolving credit agreement (“the KeyBank Credit Facility”) with the investment adviser at the time, as collateral manager, the lenders from time to time parties thereto (each, a “Lender”), KeyBank National Association, as administrative agent, and U.S. Bank National Association, as custodian. The KeyBank Credit Facility was amended on May 10, 2022 and October 20, 2022. Under the KeyBank Credit Facility, the Lenders have agreed to extend credit to CBL in an aggregate principal amount of up to $75.0 million as of May 10, 2022, with an uncommitted accordion feature that allows the Company to borrow up to an additional $125.0 million. The KeyBank Credit Facility matures on May 10, 2027, unless there is an earlier termination or event of default. The period during which the Lenders may make loans to CBL under the KeyBank Credit Facility commenced on October 30, 2020 and will continue through May 10, 2025, unless there is an earlier termination or event of default. Borrowings under the KeyBank Credit Facility bear interest at 1M Term SOFR plus 2.90% during the 3-year revolving period and 3.25% thereafter, with a 0.40% 1M Term SOFR floor. CBL will also pay an unused commitment fee at a rate of (1) 1.00% if utilization is less than or equal to 30.0%, (2) 0.65% if utilization is greater than 30.0% but less than or equal to 60.0%, or (3) 0.35% if utilization is greater than 60.0%, per annum on the unutilized portion of the aggregate commitments under the KeyBank Credit Facility. As of September 30, 2023, there were draws of $35.9 million on the KeyBank Credit Facility. The KeyBank Credit Facility includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. As of September 30, 2023, assets pledged to secure the KeyBank Credit Facility had a fair value of $101.8 million.
Long Term Debt, Principal								$ 35.9
Long Term Debt, Structuring [Text Block]								The KeyBank Credit Facility was amended on May 10, 2022 and October 20, 2022. Under the KeyBank Credit Facility, the Lenders have agreed to extend credit to CBL in an aggregate principal amount of up to $75.0 million as of May 10, 2022, with an uncommitted accordion feature that allows the Company to borrow up to an additional $125.0 million. The KeyBank Credit Facility matures on May 10, 2027, unless there is an earlier termination or event of default. The period during which the Lenders may make loans to CBL under the KeyBank Credit Facility commenced on October 30, 2020 and will continue through May 10, 2025, unless there is an earlier termination or event of default. Borrowings under the KeyBank Credit Facility bear interest at 1M Term SOFR plus 2.90% during the 3-year revolving period and 3.25% thereafter, with a 0.40% 1M Term SOFR floor. CBL will also pay an unused commitment fee at a rate of (1) 1.00% if utilization is less than or equal to 30.0%, (2) 0.65% if utilization is greater than 30.0% but less than or equal to 60.0%, or (3) 0.35% if utilization is greater than 60.0%, per annum on the unutilized portion of the aggregate commitments under the KeyBank Credit Facility.
2032 Convertible Notes
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt, Title [Text Block]								2032 Convertible Notes On April 1, 2022, the Company issued $15.0 million in aggregate principal amount of 5.25% fixed-rate convertible notes due April 1, 2032 (the “2032 Convertible Notes”). The 2032 Convertible Notes are convertible, at the holder’s option and at any time on or prior to the close of business on the business day immediately preceding the maturity date, into such number of shares of the Company’s common stock as is equal to the principal balance of the notes being converted on such date divided by the “Conversion Price,” as described below. The Company will not issue more than 539,503 shares of common stock in the aggregate under the purchase agreement governing the 2032 Convertible Notes (the “Purchase Agreement”); however, such number of shares may be adjusted from time to time to give effect to any forward or reverse stock splits with respect to the common stock as well as any further adjustments described in the purchase agreement. The “Conversion Price” will be equal to the average “Closing Sale Price” for the five “Trading Days” immediately prior to the relevant “Conversion Date,” as those terms are defined in the Purchase Agreement, subject to certain anti-dilutive provisions, as further described in the Purchase Agreement. No holder of a 2032 Convertible Note will be entitled to convert any such note or portion thereof if such conversion would result in more than $7,500,000 in principal amount of 2032 Convertible Notes being converted in any such calendar quarter. The Company has determined that the embedded conversion option in the 2032 Convertible Notes is not required to be separately accounted for as a derivative under U.S. GAAP. The Company obtained an Investment Grade rating from a Nationally Recognized Statistical Rating Organization (“NRSRO”) with respect to the 2032 Convertible Notes. The 2032 Convertible Notes have a fixed interest rate of 5.25% per annum payable semi-annually on March 31 and September 30 of each year, commencing on September 30, 2022, subject to a step up of 0.75% per annum to the extent that the 2032 Convertible Notes are downgraded below Investment Grade by an NRSRO or the 2032 Convertible Notes no longer maintain a rating from an NRSRO. The Company will also be required to pay an additional interest rate of 2.0% per annum (x) on any overdue payment of interest and (y) during the continuance of an “Event of Default.” The Company intends to use the net proceeds from the offering of the 2032 Convertible Notes for general corporate purposes, which may include repaying outstanding indebtedness, making opportunistic investments and paying corporate expenses. In addition, on the occurrence of a “Change in Control Repurchase Event” or “Delisting Event,” as defined in the Purchase Agreement, the Company will generally be required to make an offer to purchase the outstanding 2032 Convertible Notes at a price equal to 100% of the principal amount of such 2032 Convertible Notes plus accrued and unpaid interest to the repurchase date. The 2032 Convertible Notes are redeemable prior to maturity. No “sinking fund” is provided for the 2032 Convertible Notes. As of September 30, 2023, the Company had $15.0 million in 2032 Convertible Notes outstanding.
Long Term Debt, Principal		$ 15.0						$ 15.0
Long Term Debt, Structuring [Text Block]								due April 1, 2032The 2032 Convertible Notes have a fixed interest rate of 5.25% per annum payable semi-annually on March 31 and September 30 of each year, commencing on September 30, 2022, subject to a step up of 0.75% per annum to the extent that the 2032 Convertible Notes are downgraded below Investment Grade by an NRSRO or the 2032 Convertible Notes no longer maintain a rating from an NRSRO. The Company will also be required to pay an additional interest rate of 2.0% per annum (x) on any overdue payment of interest and (y) during the continuance of an “Event of Default.” The Company intends to use the net proceeds from the offering of the 2032 Convertible Notes for general corporate purposes, which may include repaying outstanding indebtedness, making opportunistic investments and paying corporate expenses. In addition, on the occurrence of a “Change in Control Repurchase Event” or “Delisting Event,” as defined in the Purchase Agreement, the Company will generally be required to make an offer to purchase the outstanding 2032 Convertible Notes at a price equal to 100% of the principal amount of such 2032 Convertible Notes plus accrued and unpaid interest to the repurchase date. The 2032 Convertible Notes are redeemable prior to maturity. No “sinking fund” is provided for the 2032 Convertible Notes.
Long Term Debt, Issuance and Substitution [Text Block]								The Company will not issue more than 539,503 shares of common stock in the aggregate under the purchase agreement governing the 2032 Convertible Notes (the “Purchase Agreement”); however, such number of shares may be adjusted from time to time to give effect to any forward or reverse stock splits with respect to the common stock as well as any further adjustments described in the purchase agreement.
2026 Notes [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt, Title [Text Block]								2026 Notes On October 29, 2021, the Company issued $50.0 million in aggregate principal amount of 5.25% fixed rate notes due October 30, 2026 (the “2026 Notes”) pursuant to a supplemental indenture with U.S. Bank National Association (the “Trustee”), which supplements that certain base indenture, dated as of June 16, 2014. The 2026 Notes were issued in a private placement exempt from registration under the Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The net proceeds to the Company were approximately $48.8 million, after deducting estimated offering expenses. The Notes will mature on October 30, 2026 and may be redeemed in whole or in part at the Company's option at any time or from time to time at the redemption prices set forth in the Indenture. The Notes bear interest at a rate of 5.25% per year payable semi-annually on April 30 and October 30 of each year, commencing on April 30, 2022. The Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities. In July 2022, pursuant to the requirements of a registration rights agreements entered into in connection with the offering described above, the Company completed an exchange offer pursuant to which all of the outstanding 2026 Notes were exchanged for notes with substantially identical terms, but that are registered under the Securities Act (which notes are also referred to herein as the “2026 Notes”). As of September 30, 2023, the Company had approximately $50.0 million in aggregate principal amount of 2026 Notes outstanding.
Long Term Debt, Principal			$ 50.0					$ 50.0
Long Term Debt, Structuring [Text Block]								5.25% fixed rate notes due October 30, 2026 (the “2026 Notes”) pursuant to a supplemental indenture with U.S. Bank National Association (the “Trustee”), which supplements that certain base indenture, dated as of June 16, 2014. The 2026 Notes were issued in a private placement exempt from registration under the Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The net proceeds to the Company were approximately $48.8 million, after deducting estimated offering expenses. The Notes will mature on October 30, 2026 and may be redeemed in whole or in part at the Company's option at any time or from time to time at the redemption prices set forth in the Indenture. The Notes bear interest at a rate of 5.25% per year payable semi-annually on April 30 and October 30 of each year, commencing on April 30, 2022. The Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.
Long Term Debt, Rights Limited by Other Securities [Text Block]								The Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.
2022 Notes [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt, Title [Text Block]								2022 Notes On May 16, 2017, the Company issued $70.0 million in aggregate principal amount of 6.0% fixed-rate notes due May 31, 2022 (the “2022 Notes”). On May 25, 2017, we issued an additional $5.0 million in aggregate principal amount of the 2022 Notes pursuant to a partial exercise of the underwriters’ overallotment option. On November 1, 2021, we notified the Trustee for the 2022 Notes of the Company's election to redeem $50.0 million aggregate principal amount of the 2022 Notes outstanding. The redemption was completed on December 6, 2021. On May 31, 2022, the 2022 Notes reached maturity, and the entire outstanding principal of the 2022 Notes became payable and was paid by the Company. Accordingly, as of both September 30, 2023, there were no 2022 Notes outstanding. The 2022 Notes were subject to redemption in whole or in part at any time or from time to time at our option on or after May 31, 2019 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2022 Notes was payable quarterly. The 2022 Notes were listed on the NASDAQ Global Select Market under the trading symbol “CPTAL” with a par value of $25.00 per share.
Long Term Debt, Principal						$ 5.0	$ 70.0
Long Term Debt, Structuring [Text Block]								due May 31, 2022The 2022 Notes were subject to redemption in whole or in part at any time or from time to time at our option on or after May 31, 2019 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2022 Notes was payable quarterly.
2022 Convertible Notes [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Long Term Debt, Title [Text Block]								2022 Convertible Notes On May 26, 2017, the Company issued $50.0 million in aggregate principal amount of 5.75% fixed-rate convertible notes due May 31, 2022 (the “2022 Convertible Notes”). On June 26, 2017, we issued an additional $2.1 million in aggregate principal amount of the 2022 Convertible Notes pursuant to a partial exercise of the underwriters’ overallotment option. On May 31, 2022, the 2022 Convertible Notes reached maturity, and the entire outstanding principal of the 2022 Convertible Notes became payable, and was paid by the Company. Accordingly, as of September 30, 2023, there were no 2022 Convertible Notes outstanding. Interest on the 2022 Convertible Notes was payable quarterly. The 2022 Convertible Notes were listed on the NASDAQ Capital Market under the trading symbol “CPTAG” with a par value of $25.00 per share.
Long Term Debt, Principal				$ 2.1	$ 50.0
Long Term Debt, Structuring [Text Block]								5.75% fixed-ratedue May 31, 2022Interest on the 2022 Convertible Notes was payable quarterly.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The Company is considered an investment company as defined in Accounting Standards Codification (“ASC”) Topic 946 — Financial Services — Investment Companies (“ASC 946”). The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 6 and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying our annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, including Fund II, Fund III, CBL, and the Taxable Subsidiaries.

The Company’s financial statements as of September 30, 2023 and December 31, 2022 and for the periods ended September 30, 2023 and 2022 are presented on a consolidated basis. The effects of all intercompany transactions between the Company and its subsidiaries (Fund II, Fund III, CBL, and the Taxable Subsidiaries) have been eliminated in consolidation. All financial data and information included in these consolidated financial statements have been presented on the basis described above. In the opinion of management, the consolidated financial statements reflect all adjustments that are necessary for the fair presentation of financial results as of and for the periods presented.

The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the year. Additionally, the unaudited consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes thereto appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 9, 2023.

Use of Estimates in the Preparation of Financial Statements

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates under different assumptions and conditions. The most significant estimates in the preparation of the consolidated financial statements are investment valuation, revenue recognition and income taxes.

Consolidation

As provided under ASC 946, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly owned investment company subsidiaries (Fund II, Fund III, CBL, and the Taxable Subsidiaries) in its consolidated financial statements.

Cash and Cash Equivalents

The Company considers cash equivalents to be highly liquid investments with original maturities of three months or less at the date of purchase. The Company deposits its cash in financial institutions, and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Investment Classification

In accordance with the provisions of the 1940 Act, the Company classifies its investments by level of control. As defined in the 1940 Act, “Control Investments” are investments in those companies that the Company is deemed to “Control.” “Affiliate Investments” are investments in those companies that are “Affiliated Companies” of the Company, as defined in the 1940 Act, other than Control Investments. “Non-Control/Non-Affiliate Investments” are those investments that are neither Control Investments nor Affiliate Investments. Generally, under the 1940 Act, the Company is deemed to control a company in which it has invested if the Company owns more than 25% of the voting securities of such company and/or has greater than 50% representation on its board or has the power to exercise control over management or policies of such portfolio company. The Company is deemed to be an affiliate of a company in which the Company has invested if it owns 5% or more of the voting securities of such company.

Valuation of Investments

Investment transactions are recorded on the trade date. Realized gains or losses on investments are calculated using the specific identification method as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized appreciation or depreciation previously recognized, and include investments charged off during the period, net of recoveries. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation when gains or losses are recognized.

Investments for which market quotations are available are typically valued at those market quotations. To validate market quotations, the Company will utilize a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations.

Debt that is not publicly traded but for which there are external pricing sources available as of the valuation date is valued using independent broker-dealer, market maker quotations or independent pricing services. The valuation committee, comprised of members of the Investment Adviser, (the “Valuation Committee”) subjects these quotes to various criteria including, but not limited to, the number and quality of quotes, the deviation among the quotes and information derived from analyzing the Company’s own transactions in such investments throughout the reporting period. Generally, such investments are categorized in Level 2 of the fair value hierarchy, unless the Valuation Committee determines that the quality, quantity or deviation among quotes warrants significant adjustment to the inputs utilized.

The Board has designated the Investment Adviser as its “valuation designee” pursuant to Rule 2a-5 under the 1940 Act, and in that role the Investment Adviser is responsible for performing fair value determinations relating to all of the Company's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Board. The Board remains ultimately responsible for fair value determinations under the 1940 Act and satisfies its responsibility through oversight of the valuation designee in accordance with Rule 2a-5. Investments that are not publicly traded or whose market prices are not readily available, as is expected to be the case for substantially all of the Company’s investments, are valued at fair value as determined in good faith by the Investment Adviser, based on, among other things, input of independent third-party valuation firm(s).

The Investment Adviser undertakes a multi-step valuation process, which includes, among other procedures, the following:

•

The Company’s quarterly valuation process begins with each portfolio company or investment being initially valued using certain inputs, among others, provided by the investment professionals responsible for the portfolio investment in conjunction with the Company’s portfolio management team. The Company utilizes an independent valuation firm to provide valuation on each material illiquid security at least once every trailing 12-month period;

•

Preliminary valuations are reviewed and discussed with management of the Investment Adviser and investment professionals; and

•

the Investment Adviser will review the valuations and determine the fair value of each investment. Valuations that are not based on readily available market quotations will be valued in good faith based on, among other things, the input of, where applicable, third parties.

As part of the valuation process, the Investment Adviser may consider other information and may use valuation methods including but not limited to (i) market quotes for similar investments, (ii) recent trading activity, (iii) discounting forecasted cash flows of the investment, (iv) models that consider the implied yields from comparable debt, (v) third-party appraisal, (vi) sale negotiations and purchase offers received from independent parties and (vii) estimated value of underlying assets to be received in liquidation or restructuring.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.

Under existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. This accounting guidance emphasizes valuation techniques that maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances.

The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible to the Company.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3: Significant inputs that are unobservable for an asset or liability.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments for which no external pricing sources are available as of the valuation date are included in Level 3 of the fair value hierarchy.

As a practical expedient, the Company uses net asset value (“NAV”) as the fair value for its equity investment in Great Lakes Funding II LLC (“Great Lakes II Joint Venture”). The Great Lakes II Joint Venture records its underlying investments at fair value on a quarterly basis in accordance with the 1940 Act and U.S. GAAP.

Enterprise Value Waterfall Approach

The enterprise value waterfall approach determines an enterprise value based on earnings before interest, tax, depreciation, and amortization (“EBITDA”) multiples of publicly traded companies that are considered similar to the subject portfolio company. The Company considers a variety of items in determining a reasonable pricing multiple, including, but not limited to, operating results, budgeted projections, growth, size, risk, profitability, leverage, management depth, diversification, market position, supplier or customer dependence, asset utilization, liquidity metrics, and access to capital markets. EBITDA of the portfolio company is adjusted for non-recurring items in order to reflect a normalized level of earnings that is representative of future earnings. In certain instances, the Company may also utilize revenue multiples to determine enterprise value. When available, the Company may assign a pricing multiple or value its investments based on the value of recent investment transactions in the subject portfolio company or offers to purchase the portfolio company. The enterprise value is adjusted for financial instruments with seniority to the Company’s ownership and for the effect of any instrument which may dilute the Company’s investment in the portfolio company. The adjusted enterprise value is then apportioned based on the seniority and privileges of the Company’s investments within the portfolio company.

Income Approach

The income approach utilizes a discounted cash flow methodology in which the Company estimates fair value based on the present value of expected cash flows discounted at a market rate of interest. The determination of a discount rate, or required rate of return, takes into account the portfolio company’s fundamentals and perceived credit risk. Because the majority of the Company’s portfolio companies do not have a public credit rating, determining a discount rate often involves assigning an implied credit rating based on the portfolio company’s operating metrics compared to average metrics of similar publicly rated debt. Operating metrics include, but are not limited to, EBITDA, interest coverage, leverage ratios, return on capital, and debt to equity ratios. The implied credit rating is used to assign a base discount rate range based on publicly available yields on similarly rated debt securities. The Company may apply a premium to the discount rate utilized in determining fair value when performance metrics and other qualitative information indicate that there is an additional level of uncertainty about collectability of cash flows.

Asset Approach

The asset approach values an investment based on the value of the underlying collateral securing the investment.

Revenue Recognition

The Company’s revenue recognition policies are as follows:

Interest income and payment-in-kind (“PIK”) interest income: Interest income is recorded on the accrual basis to the extent that such amounts are expected to be collected. The Company has loans in the portfolio that contain a PIK interest provision. PIK interest, which represents contractually deferred interest added to the loan balance that is generally due at maturity, is recorded on an accrual basis to the extent that such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the issuer to be able to pay all principal and interest when due.

Non-accrual investments: Management reviews all loans that become 90 days or more past due, or when there is reasonable doubt that principal or interest will be collected, for possible placement on non-accrual status. When the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the loan on non-accrual status and will generally cease recognizing interest income and PIK interest on that loan for financial reporting purposes. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. The Company writes off any previously accrued and uncollected interest when it is determined that interest is no longer considered collectible. Non-accrual loans are returned to accrual status when the borrower’s financial condition improves such that management believes current interest and principal payments are expected to be collected. As of September 30, 2023, we had debt investments in two portfolio companies on non-accrual status with an aggregate amortized cost of $16.8 million and an aggregate fair value of $10.6 million, which represented 8.3% and 5.7% of the investment portfolio, respectively. As of December 31, 2022, we had a debt investment in one portfolio company on non-accrual status with aggregate amortized cost of $11.9 million and an aggregate fair value of $9.7 million, which represented 5.4% and 4.8% of the investment portfolio, respectively.

Gains and losses on investment sales: Realized gains and losses on investments are recognized using the specific identification method.

Dividend income and payment-in-kind dividends: Dividend income is recognized on the date dividends are declared. The Company holds preferred equity investments in the portfolio that contain a PIK dividend provision. PIK dividends, which represent contractually deferred dividends added to the equity balance, are recorded on the accrual basis to the extent that such amounts are expected to be collected. The Company will typically cease accrual of PIK dividends when the fair value of the equity investment is less than the cost basis of the investment or when it is otherwise determined by management that PIK dividends are unlikely to be collected. If management determines that a decline in fair value is temporary in nature and PIK dividends are more likely than not to be collected, management may elect to continue accruing PIK dividends.

Original issue discount: Discounts received to par on loans purchased are capitalized and accreted into income over the life of the loan. Any remaining discount is accreted into income upon prepayment of the loan.

Other income: Origination fees (to the extent services are performed to earn such income), amendment fees, consent fees, and other fees associated with investments in portfolio companies are recognized as income when they are earned. Prepayment penalties received by the Company for debt instruments repaid prior to maturity date are recorded as income upon receipt.

General and Administrative Expenses

General and administrative expenses are accrued as incurred. The Company’s administrative expenses include personnel and overhead expenses allocable to the Company paid by and reimbursed to the Administrator under an administration agreement between the Company and the Administrator (the “Administration Agreement”). Other operating expenses such as legal and audit fees and director and officer insurance are generally paid directly by the Company.

Deferred Financing Fees

Costs incurred to issue the Company’s debt obligations are capitalized and are amortized over the term of the debt agreements under the effective interest method. Deferred financing fees are presented as a direct deduction from the carrying amount of the corresponding debt liability in the consolidated statements of assets and liabilities.

Earnings Per Share

The Company’s earnings per share (“EPS”) amounts have been computed based on the weighted-average number of shares of the Company’s common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of the Company’s common stock outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations, adjusted for the change in net assets resulting from the exercise of the dilutive shares, by the weighted average number of shares of the Company’s common stock assuming all potentially dilutive shares had been issued. Diluted EPS reflects the potential dilution, using the as-if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.

Commitments and Contingencies

As of September 30, 2023 and December 31, 2022, the Company had the following unfunded commitments to existing portfolio companies (dollars in thousands):


Portfolio Company	Investment	September 30, 2023		December 31, 2022
Accordion Partners LLC(1)	First Lien/Senior Secured Debt	$	—	$	897
Accordion Partners LLC (Revolver)	First Lien/Senior Secured Debt		1,531		1,531
American Clinical Solutions, LLC	First Lien/Senior Secured Debt		750		—
BetaNXT, Inc. (Revolver)	First Lien/Senior Secured Debt		453		453
Bradshaw International, Inc. (Revolver)	First Lien/Senior Secured Debt		922		922
Critical Nurse Staffing, LLC(1)	First Lien/Senior Secured Debt		2,063		2,063
Critical Nurse Staffing, LLC (Revolver)	First Lien/Senior Secured Debt		1,000		700
Dentive, LLC(1)	First Lien/Senior Secured Debt		449		598
Dentive, LLC (Revolver)	First Lien/Senior Secured Debt		187		187
Epic Staffing Group(1)	First Lien/Senior Secured Debt		697		872
Great Lakes Funding II LLC - Series A	Joint Venture		14		80
GreenPark Infrastructure, LLC - Series M-1	Common Stock and Membership Units		732		732
IDC Infusion Services, LLC(1)	First Lien/Senior Secured Debt		799	N/A
Keg Logistics LLC (Revolver)	First Lien/Senior Secured Debt		—		436
Marble Point Credit Management LLC (Revolver)	First Lien/Senior Secured Debt	N/A			2,500
Orthopaedic (ITC) Buyer, LLC(1)	First Lien/Senior Secured Debt		638	N/A
Premier Imaging, LLC(1)	First Lien/Senior Secured Debt	N/A			1,378
PhyNet Dermatology LLC(1)	First Lien/Senior Secured Debt		259	N/A
Taoglas Group Holdings Limited (Revolver)	First Lien/Senior Secured Debt		366	N/A
VBC Spine Opco, LLC (DxTx Pain and Spine LLC)(1)	First Lien/Senior Secured Debt		713	N/A
VBC Spine Opco, LLC (DxTx Pain and Spine LLC) (Revolver)	First Lien/Senior Secured Debt		145	N/A
Wealth Enhancement Group, LLC (Revolver)	First Lien/Senior Secured Debt		438		438
Total Unfunded Commitments		$	12,156	$	13,787

(1) Delayed-draw term loan.

In the ordinary course of business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that could lead to the execution of these provisions against the Company. Based on its history and experience, management believes that the likelihood of such an event is remote.

In the ordinary course of business, the Company may directly or indirectly be a defendant or plaintiff in legal actions with respect to bankruptcy, insolvency, or other types of proceedings. Such lawsuits may involve claims that could adversely affect the value of certain financial instruments owned by the Company or result in direct losses to the Company. The nature of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the proceeding is in its early stages; the damages sought are unspecified, unsupportable, unexplained or uncertain; discovery has not started or is not complete; there are significant facts in dispute; and there are other parties who may share in any ultimate liability.

In management’s opinion, no direct losses with respect to litigation contingencies were probable as of September 30, 2023 and December 31, 2022. Management is of the opinion that the ultimate resolution of such claims, if any, will not materially affect the Company’s business, financial position, results of operations, or liquidity. Furthermore, in management’s opinion, it is not possible to estimate a range of reasonably possible losses with respect to litigation contingencies.

Income Taxes

The Company has elected to be treated for U.S. federal income tax purposes and intends to comply with the requirements to qualify annually as a RIC under subchapter M of the Code and, among other things, intends to make the requisite distributions to its stockholders which will relieve the Company from U.S. federal income taxes.

In order to qualify as a RIC, among other requirements, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each fiscal tax year. The Company will be subject to a nondeductible U.S. federal excise tax of 4.0% on undistributed income if it does not distribute at least 98.0% of its ordinary income in any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31.

Depending on the level of taxable income earned in an excise tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions into the next excise tax year and pay a 4.0% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for U.S. federal excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. Since the Company’s IPO, the Company has not accrued or paid excise tax.

The tax years ended December 31, 2022, 2021, 2020 and 2019 remain subject to examination by U.S. federal, state, and local tax authorities. No material interest expense or penalties have been assessed for the three and nine months ended September 30, 2023 and 2022. If the Company was required to recognize interest and penalties, if any, related to unrecognized tax benefits this would be recognized as income tax expense in the consolidated statements of operations.

For U.S. federal income tax purposes, as of September 30, 2023, the aggregate net unrealized depreciation for all securities was $19.2 million. As of September 30, 2023, gross unrealized appreciation was $12.1 million and gross unrealized depreciation was $31.3 million. The aggregate cost of securities for U.S. federal income tax purposes was $206.3 million as of September 30, 2023. For U.S. federal income tax purposes, as of December 31, 2022, the aggregate net unrealized depreciation for all securities was $18.3 million. As of December 31, 2022, gross unrealized appreciation was $13.1 million and gross unrealized depreciation was $31.4 million. The aggregate cost of securities for U.S. federal income tax purposes was $221.9 million as of December 31, 2022.

The Company’s Taxable Subsidiaries record deferred tax assets or liabilities related to temporary book versus tax differences on the income or loss generated by the underlying equity investments held by the Taxable Subsidiaries. As of both September 30, 2023 and December 31, 2022, the Company recorded a net deferred tax asset of zero. For both the three and nine months ended September 30, 2023 and 2022, the Company recorded a tax provision of zero. As of September 30, 2023 and December 31, 2022, the valuation allowance on the Company’s deferred tax asset was $4.2 million and $4.0 million, respectively. During the three and nine months ended September 30, 2023, the Company recognized an increase in the valuation allowance of $0.3 million and $0.2 million, respectively. During the three and nine months ended September 30, 2022, the Company recognized an increase in the valuation allowance of zero and $0.4 million, respectively.

In accordance with certain applicable U.S. Treasury regulations and guidance issued by the Internal Revenue Service, a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive its entire distribution in either cash or stock of the RIC, subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. If too many stockholders elect to receive cash, the cash available for distribution must be allocated among the stockholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive the lesser of (a) the portion of the distribution such stockholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.

ASC Topic 740 — Income Taxes (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the consolidated statements of operations. As of September 30, 2023 and December 31, 2022, there were no uncertain tax positions.

The Company is required to determine whether a tax position of the Company is more-likely-than-not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized could result in the Company recording a tax liability that could negatively impact the Company’s net assets.

Distributions

Distributions to the Company’s common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board. Net capital gains, if any, are generally distributed at least annually, although we may decide to retain such capital gains for reinvestment.

The Company has adopted an “opt out” dividend reinvestment plan (“DRIP”) for the Company’s common stockholders. As a result, if the Company declares a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of the Company’s common stock unless a stockholder specifically “opts out” of our DRIP. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject to U.S. federal, state, and local taxes in the same manner as cash distributions, stockholders participating in the Company’s DRIP will not receive any corresponding cash distributions with which to pay any such applicable taxes.

Company Investment Risk, Concentration of Credit Risk and Liquidity Risk

The Investment Adviser has broad discretion in making investments for the Company. Investments will generally consist of debt and equity instruments that may be affected by business, financial market, or legal uncertainties. Prices of investments may be volatile, and a variety of factors that are inherently difficult to predict, such as domestic or international economic and political developments, may significantly affect the results of the Company’s activities and the value of its investments. In addition, the value of the Company’s portfolio may fluctuate as the general level of interest rates fluctuate.

The value of the Company’s investments may be detrimentally affected to the extent, among other things, that a borrower defaults on its obligations, there is insufficient collateral and/or there are extensive legal and other costs incurred in collecting on a defaulted loan. The value of the Company’s investments may also be detrimentally affected to the extent observable primary or secondary market yields for similar instruments issued by comparable companies increase materially or risk premiums in the market between smaller companies, such as our borrowers, and those for which market yields are observable increase materially.

The Investment Adviser may attempt to minimize this risk by maintaining low debt-to-liquidation values with each debt investment and the collateral underlying the debt investment.

The Company’s assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

Note 3. Investments and Fair Value Measurements

The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company offers customized financing to business owners, management teams, and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion, and other growth initiatives. The Company invests in first lien loans, and, to a lesser extent, second lien loans and equity securities issued by lower middle-market and traditional middle-market companies. As of September 30, 2023, our portfolio consisted of investments in 58 portfolio companies with a fair value of approximately $187.1 million. As of December 31, 2022, our portfolio consisted of investments in 59 portfolio companies with a fair value of approximately $203.6 million.

Most of the Company’s debt investments are structured as first lien loans. First lien loans may contain some minimum amount of principal amortization, excess cash flow sweep feature, prepayment penalties, or any combination of the foregoing. First lien loans are secured by a first priority lien in existing and future assets of the borrower and may take the form of term loans, delayed draw facilities, or revolving credit facilities. Unitranche debt, a form of first lien loan, typically involves issuing one debt security that blends the risk and return profiles of both senior secured and subordinated debt, bifurcating the loan into a first-out tranche and last-out tranche. As of September 30, 2023, 0.4% of the fair value of our first lien loans consisted of last-out loans. As of December 31, 2022, 1.9% of the fair value of our first lien loans consisted of last-out loans. In some cases, first lien loans may be subordinated, solely with respect to the payment of cash interest, to an asset based revolving credit facility.

The Company also invests in debt instruments structured as second lien loans. Second lien loans are loans which have a second priority security interest in all or substantially all of the borrower’s assets, and in some cases, may be subject to the interruption of cash interest payments upon certain events of default, at the discretion of the first lien lender.

During the three months ended September 30, 2023, we made approximately $6.1 million of investments and had approximately $23.2 million in repayments and sales, resulting in net repayments and sales of approximately $17.1 million for the period. During the three months ended September 30, 2022, the Company made approximately $36.7 million of investments and had approximately $17.1 million in repayments and sales, resulting in net repayments and sales of approximately $19.6 million for the period.

During the nine months ended September 30, 2023, we made approximately $18.4 million of investments and had approximately $34.5 million in repayments and sales, resulting in net repayments and sales of approximately $16.1 million for the period. During the nine months ended September 30, 2022, the Company made approximately $83.8 million of investments and had approximately $83.8 million in repayments and sales, resulting in net repayments and sales of less than $0.1 million for the period.

As of September 30, 2023, the Company’s Investment Adviser approved the fair value of the Company’s investment portfolio of approximately $187.1 million in good faith in accordance with the Company’s valuation procedures. The Company’s Investment Adviser approved the fair value of the Company’s investment portfolio as of September 30, 2023 with input from third-party valuation firms and the Investment Adviser, as valuation designee, based on information known or knowable as of the valuation date, including trailing and forward looking data.

The composition of our investments as of September 30, 2023, at amortized cost and fair value was as follows (dollars in thousands):


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	128,979		63.6	%	$	121,263		64.8	%
Second Lien Debt		8,784		4.3	%		7,466		4.0	%
Subordinated Debt		26,573		13.1	%		24,728		13.2	%
Collateralized Loan Obligations		2,327		1.2	%		2,181		1.2	%
Joint Venture		481		0.2	%		471		0.2	%
Equity		35,543		17.6	%		30,990		16.6	%
Total	$	202,687		100.0	%	$	187,099		100.0	%

The composition of our investments as of December 31, 2022, at amortized cost and fair value was as follows (dollars in thousands):


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	143,047		64.9	%	$	136,896		67.3	%
Second Lien Debt		8,283		3.8	%		6,464		3.2	%
Subordinated Debt		26,571		12.0	%		25,851		12.7	%
Collateralized Loan Obligations		6,185		2.8	%		4,972		2.4	%
Joint Venture		414		0.2	%		403		0.2	%
Equity		36,016		16.3	%		29,006		14.2	%
Total	$	220,516		100.0	%	$	203,592		100.0	%

As noted above, the Company values all investments in accordance with Rule 2a-5 under the 1940 Act and ASC 820. ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:


	•	Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.


	•	Level 2 — Valuations based on inputs other than quoted prices in active markets, which are either directly or indirectly observable.


	•	Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The Company employs the valuation policy approved by the Board that is consistent with ASC 820 (see Note 2). Consistent with the Company’s valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading, in determining fair value.

In estimating the fair value of portfolio investments, the Company starts with the cost basis of the investment, which includes amortized original issue discount and PIK income, if any. The transaction price is typically the best estimate of fair value at inception. When evidence supports a subsequent change to the carrying value from the original transaction price, adjustments are made to reflect the expected fair values.

The following table presents the fair value measurements of investments, by major class, as of September 30, 2023, according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements
	Level 1		Level 2		Level 3		NAV		Total
First Lien Debt	$	—	$	—	$	121,263	$	—	$	121,263
Second Lien Debt		—		—		7,466		—		7,466
Subordinated Debt		—		—		24,728		—		24,728
Collateralized Loan Obligations		—		—		2,181		—		2,181
Joint Venture		—		—		—		471		471
Equity		—		—		30,990		—		30,990
Total	$	—	$	—	$	186,628	$	471	$	187,099

The following table presents fair value measurements of investments, by major class, as of December 31, 2022, according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements
	Level 1		Level 2		Level 3		NAV		Total
First Lien Debt	$	—	$	—	$	136,896	$	—	$	136,896
Second Lien Debt		—		—		6,464		—		6,464
Subordinated Debt		—		—		25,851		—		25,851
Collateralized Loan Obligations		—		—		4,972		—		4,972
Joint Venture		—		—		—		403		403
Equity		—		—		29,006		—		29,006
Total	$	—	$	—	$	203,189	$	403	$	203,592

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended September 30, 2023 (dollars in thousands):


	First Lien Debt			Second Lien Debt			Subordinated Debt			Collateralized Loan Obligations			Equity			Total
Balance as of January 1, 2023	$	136,896		$	6,464		$	25,851		$	4,972		$	29,006		$	203,189
Repayments/sales		(33,317	)		(4	)		—			(97	)		(1,035	)		(34,453	)
Purchases		18,206			—			—			—			102			18,308
Payment-in-kind interest and dividends accrued		526			480			2			—			149			1,157
Accretion of original issue discount		517			25			—			513			—			1,055
Net realized (loss) gain on investments		—			—			—			(4,274	)		311			(3,963	)
Net change in unrealized (depreciation) appreciation on investments		(1,565	)		501			(1,125	)		1,067			2,457			1,335
Transfers out		—			—			—			—			—			—
Balance as of September 30, 2023	$	121,263		$	7,466		$	24,728		$	2,181		$	30,990		$	186,628

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended September 30, 2022 (dollars in thousands):


	First Lien Debt			Second Lien Debt			Subordinated Debt			Collateralized Loan Obligations			Equity			Total
Balance as of January 1, 2022	$	98,251		$	30,190		$	5,050		$	7,717		$	56,981		$	198,189
Repayments/sales		(38,842	)		(24,429	)		1			(678	)		(19,749	)		(83,697	)
Purchases		58,674			3,086			21,272			—			382			83,414
Payment-in-kind interest and dividends accrued		140			276			175			—			146			737
Accretion of original issue discount		367			38			4			846			—			1,255
Net realized gain (loss) on investments		21			(1	)		—			(940	)		11,194			10,274
Net change in unrealized (depreciation) appreciation on investments		815			(1,387	)		(406	)		(281	)		(16,063	)		(17,322	)
Balance as of September 30, 2022	$	119,426		$	7,773		$	26,096		$	6,664		$	32,891		$	192,850

The net change in unrealized appreciation (depreciation) on investments held was $0.4 million and $(17.3) million for the nine months ended September 30, 2023 and 2022, respectively, and is included in net change in unrealized depreciation on investments on the consolidated statements of operations.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of September 30, 2023 were as follows:


	Fair Value (in millions)		Valuation Technique	Unobservable Input	Range of Input (Weighted Average)(2)
First lien debt	$	7.2	Market	Broker/Dealer Quotes	N/A
First lien debt		109.0	Income	Required Rate of Return	6.5% – 30.0% (12.8%)
First lien debt		5.0	Enterprise Market Value	Revenue Multiple	0.4x
Second lien debt		3.1	Market	Broker/Dealer Quotes	N/A
Second lien debt		4.4	Income	Required Rate of Return	2.2% – 20.1% (16.3%)
Subordinated debt		24.2	Income	Required Rate of Return	5.8% – 11.0% (9.9%)
Subordinated debt		0.5	Enterprise Market Value	EBITDA Multiple	7.0x
Collateralized Loan Obligations		2.2	Income	Discount Margin	23.3% – 24.9% (24.5%)
Equity		0.1	Income	Stock Price Time to Exit (Years) Volatility	$103.75 2.0 35.0%
Equity		28.2	Enterprise Market Value and Asset(1)	EBITDA Multiple	2.3x – 17.3x (6.7x)
Equity		2.7	Enterprise Market Value	Revenue Multiple	0.3x – 1.2x (1.0x)
	$	186.6

(1)

$1.0 million in equity was valued using the asset approach.

(2)

The weighted averages disclosed in the table above were weighted by their relative fair value.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December 31, 2022 were as follows:


	Fair Value (in millions)		Valuation Technique	Unobservable Input	Range of Input (Weighted Average)(2)
First lien debt	$	7.4	Market	Broker/Dealer Quotes	N/A
First lien debt		123.5	Income	Required Rate of Return	6.0% – 30.0% (12.2%)
First lien debt		6.0	Enterprise Market Value	Revenue Multiple	0.4x
Second lien debt		2.6	Market	Broker/Dealer Quotes	N/A
Second lien debt		3.4	Income	Required Rate of Return	1.6% – 18.7% (16.1%)
Second lien debt		0.4	Enterprise Market Value	Revenue Multiple	4.7x
Subordinated debt		25.9	Income	Required Rate of Return	5.9% – 18.9% (10.4%)
Collateralized loan obligations		5.0	Income	Discount Margin	21.5% – 24.8% (23.6%)
Equity		0.1	Income	Stock Price Time to Exit (Years) Volatility	$115.8 2.0 35.0%
Equity		26.2	Enterprise Market Value and Asset(1)	EBITDA Multiple	3.3x – 15.8x (6.4x)
Equity		2.7	Enterprise Market Value	Revenue Multiple	0.3x – 1.0x (0.9x)
	$	203.2

(1)

$1.0 million in equity was valued using the asset approach.

(2)

The weighted averages disclosed in the table above were weighted by their relative fair value.

The significant unobservable inputs used in the valuation of the Company’s investments are required rate of return, EBITDA multiples, revenue multiples, discount margin, stock price, projected time to exit and volatility. Changes in any of these unobservable inputs could have a significant impact on the Company’s estimate of fair value. An increase (decrease) in the required rate of return or discount margin will result in a lower (higher) estimate of fair value, respectively, while an increase (decrease) in adjusted EBITDA or revenue multiples, stock price, projected time to exit (option-pricing model) or volatility will result in a higher (lower) estimate of fair value, respectively.

Great Lakes Funding II LLC

In August 2022, the Company invested in the Great Lakes II Joint Venture, a joint venture with an investment strategy to underwrite and hold senior, secured unitranche loans made to middle-market companies. The Company treats its investment in the Great Lakes II Joint Venture as a joint venture since an affiliate of the Investment Adviser controls a 50% voting interest in the Great Lakes II Joint Venture.

The Great Lakes II Joint Venture is a Delaware series limited liability company, and pursuant to the terms of the Great Lakes Funding II LLC Limited Liability Company Agreement (the “Great Lakes II LLC Agreement”), prior to the end of the investment period with respect to each series established under the Great Lakes II LLC Agreement, each member of the predecessor series would be offered the opportunity to roll its interests into any subsequent series of the Great Lakes II Joint Venture. The Company does not pay any advisory fees in connection with its investment in the Great Lakes II Joint Venture. Certain other funds managed by the Investment Adviser or its affiliates have also invested in the Great Lakes II Joint Venture.

The fair value of the Company’s investment in the Great Lakes II Joint Venture at September 30, 2023 and December 31, 2022 was $0.5 million and $0.4 million, respectively. Fair value has been determined utilizing the net asset value as a practical expedient pursuant to U.S. GAAP. Pursuant to the terms of the Great Lakes II LLC Agreement, the Company generally may not effect any direct or indirect sale, transfer, assignment, hypothecation, pledge or other disposition of or encumbrance upon its interests in the Great Lakes II Joint Venture, except that the Company may sell or otherwise transfer its interests with the consent of the managing members of the Great Lakes II Joint Venture or to an affiliate or a successor to substantially all of the assets of the Company.

As of September 30, 2023, the Company has an unfunded commitment to the Great Lakes II Joint Venture of less than $0.1 million.

Borrowings

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Note 6. Borrowings

2022 Notes

On May 16, 2017, the Company issued $70.0 million in aggregate principal amount of 6.0% fixed-rate notes due May 31, 2022 (the “2022 Notes”). On May 25, 2017, the Company issued an additional $5.0 million in aggregate principal amount of the 2022 Notes pursuant to a partial exercise of the underwriters’ overallotment option. On November 1, 2021, the Company notified the Trustee for the Company's 2022 Notes, of the Company's election to redeem $50.0 million aggregate principal amount of the 2022 Notes outstanding. The redemption was completed on December 6, 2021. On May 31, 2022, the remaining 2022 Notes reached maturity, and the entire outstanding principal of the 2022 Notes became payable and was paid by the Company. Accordingly, as of September 30, 2023 and December 31, 2022, there were no 2022 Notes outstanding.

The 2022 Notes were scheduled to mature on May 31, 2022 and could be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 31, 2019 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2022 Notes was payable quarterly. The 2022 Notes were listed on the NASDAQ Global Select Market under the trading symbol “CPTAL” with a par value of $25.00 per share.

The following table summarizes the interest expense, deferred financing costs, average outstanding balance, and average stated interest rate on the 2022 Notes for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2023	2022	2023	2022
Interest expense	N/A	N/A	N/A	$	609
Deferred financing costs	N/A	N/A	N/A		45
Total interest and financing expenses	N/A	N/A	N/A	$	654
Average outstanding balance	N/A	N/A	N/A	$	12,546
Average stated interest rate	N/A	N/A	N/A		6.00	%

2022 Convertible Notes

On May 26, 2017, the Company issued $50.0 million in aggregate principal amount of 5.75% fixed-rate convertible notes due May 31, 2022 (the “2022 Convertible Notes”). On June 26, 2017, the Company issued an additional $2.1 million in aggregate principal amount of the 2022 Convertible Notes pursuant to a partial exercise of the underwriters’ overallotment option. On May 31, 2022, the 2022 Convertible Notes reached maturity, and the entire outstanding principal of the 2022 Convertible Notes became payable, and was paid by the Company. Accordingly, as of September 30, 2023 and December 31, 2022, there were no 2022 Convertible Notes outstanding.

The 2022 Convertible Notes were convertible, at the holder’s option, into shares of the Company’s common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date. The conversion rate for the 2022 Convertible Notes was initially 1.5913 shares per $25.00 principal amount of 2022 Convertible Notes (equivalent to an initial conversion price of approximately $15.71 per share of common stock). The initial conversion premium was approximately 14.0%. As a result of the reverse stock split, the conversion rate for the 2022 Convertible Notes was 0.2652 shares per $25.00 principal amount of 2022 Convertible Notes (equivalent to a conversion price of approximately $94.26), effective August 21, 2020. Upon conversion, the Company was obligated to deliver shares of its common stock (and cash in lieu of fractional shares). The conversion rate was subject to adjustment if certain events occurred as outlined in the supplemental indenture relating to the 2022 Convertible Notes. The Company determined that the embedded conversion option in the 2022 Convertible Notes was not required to be separately accounted for as a derivative under U.S. GAAP.

In addition, pursuant to a “fundamental change”, as defined in the supplemental indenture relating to the 2022 Convertible Notes, holders of the 2022 Convertible Notes could require the Company to repurchase for cash all or part of their 2022 Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the 2022 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date. The 2022 Convertible Notes were not redeemable prior to maturity and no “sinking fund” was provided for the 2022 Convertible Notes.

The following table summarizes the interest expense, deferred financing costs, average outstanding balance, and average stated interest rate on the 2022 Convertible Notes for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2023	2022	2023	2022
Interest expense	N/A	N/A	N/A	$	1,239
Deferred financing costs	N/A	N/A	N/A		168
Total interest and financing expenses	N/A	N/A	N/A	$	1,407
Average outstanding balance	N/A	N/A	N/A	$	28,620
Average stated interest rate	N/A	N/A	N/A		5.75	%

2026 Notes

On October 29, 2021, the Company issued $50.0 million in aggregate principal amount of 5.25% fixed-rate notes due October 30, 2026 (the “2026 Notes”) pursuant to a supplemental indenture with U.S. Bank National Association (the “Trustee”), which supplements that certain base indenture, dated as of June 16, 2014. The 2026 Notes were issued in a private placement exempt from registration under the Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The

net proceeds to the Company were approximately $48.8 million, after deducting estimated offering expenses. The Notes will mature on October 30, 2026 and may be redeemed in whole or in part at the Company's option at any time or from time to time at the redemption prices set forth in the Indenture. The Notes bear interest at a rate of 5.25% per year payable semi-annually on April 30 and October 30 of each year, commencing on April 30, 2022. The Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

In July 2022, pursuant to the requirements of a registration rights agreements entered into in connection with the offering described above, the Company completed an exchange offer pursuant to which all of the outstanding 2026 Notes were exchanged for notes with substantially identical terms, but that are registered under the Securities Act (which notes are also referred to herein as the “2026 Notes”).

As of September 30, 2023 and December 31, 2022, the Company had $50.0 million and $50.0 million, respectively in 2026 Notes outstanding.

The following table summarizes the interest expense, deferred financing costs, average outstanding balance, and average stated interest rate on the 2026 Notes for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023			2022			2023			2022
Interest expense	$	707		$	694		$	2,126		$	2,106
Deferred financing costs		39			50			116			120
Total interest and financing expenses	$	746		$	744		$	2,242		$	2,226
Average outstanding balance	$	50,000		$	50,000		$	50,000		$	50,000
Average stated interest rate		5.25	%		5.25	%		5.25	%		5.25	%

2032 Convertible Notes

On April 1, 2022, the Company issued $15.0 million in aggregate principal amount of 5.25% fixed-rate convertible notes due April 1, 2032 (the “2032 Convertible Notes”).

The 2032 Convertible Notes are convertible, at the holder’s option and at any time on or prior to the close of business on the business day immediately preceding the maturity date, into such number of shares of the Company’s common stock as is equal to the principal balance of the notes being converted on such date divided by the “Conversion Price,” as described below. The Company will not issue more than 539,503 shares of common stock in the aggregate under the purchase agreement governing the 2032 Convertible Notes (the “Purchase Agreement”); however, such number of shares may be adjusted from time to time to give effect to any forward or reverse stock splits with respect to the common stock as well as any further adjustments described in the purchase agreement. The “Conversion Price” will be equal to the average “Closing Sale Price” for the five “Trading Days” immediately prior to the relevant “Conversion Date,” as those terms are defined in the Purchase Agreement, subject to certain anti-dilutive provisions, as further described in the Purchase Agreement. No holder of a 2032 Convertible Note will be entitled to convert any such note or portion thereof if such conversion would result in more than $7,500,000 in principal amount of 2032 Convertible Notes being converted in any such calendar quarter. The Company has determined that the embedded conversion option in the 2032 Convertible Notes is not required to be separately accounted for as a derivative under U.S. GAAP.

The Company obtained an Investment Grade rating from a Nationally Recognized Statistical Rating Organization (“NRSRO”) with respect to the 2032 Convertible Notes. The 2032 Convertible Notes have a fixed interest rate of 5.25% per annum payable semi-annually on March 31 and September 30 of each year, commencing on September 30, 2022, subject to a step up of 0.75% per annum to the extent that the 2032 Convertible Notes are downgraded below Investment Grade by an NRSRO or the 2032 Convertible Notes no longer maintain a rating from an NRSRO. The Company will also be required to pay an additional interest rate of 2.0% per annum (x) on any overdue payment of interest and (y) during the continuance of an “Event of Default.” The Company intends to use the net proceeds from the offering of the 2032 Convertible Notes for general corporate purposes, which may include repaying outstanding indebtedness, making opportunistic investments and paying corporate expenses. In addition, on the occurrence of a “Change in Control Repurchase Event” or “Delisting Event,” as defined in the Purchase Agreement, the Company will generally be required to make an offer to purchase the outstanding 2032 Convertible Notes at a price equal to 100% of the principal amount of such 2032 Convertible Notes plus accrued and unpaid interest to the repurchase date. The 2032 Convertible Notes are redeemable prior to maturity. No “sinking fund” is provided for the 2032 Convertible Notes.

As of September 30, 2023 and December 31, 2022, the Company had $15.0 million and $15.0 million, respectively, in 2032 Convertible Notes outstanding.

The following table summarizes the interest expense, deferred financing costs, average outstanding balance, and average stated interest rate on the 2032 Convertible Notes for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023			2022			2023			2022
Interest expense	$	223		$	200		$	669		$	423
Deferred financing costs		3			26			9			28
Total interest and financing expenses	$	226		$	226		$	678		$	451
Average outstanding balance	$	15,000		$	15,000		$	15,000		$	10,055
Average stated interest rate		5.25	%		5.25	%		5.25	%		5.25	%

KeyBank Credit Facility

On October 30, 2020, CBL, a direct, wholly owned, consolidated subsidiary of the Company entered into the KeyBank Credit Facility with the investment adviser at the time, as collateral manager, the lenders from time to time parties thereto (each a “Lender”), KeyBank National Association, as administrative agent, and U.S. Bank National Association, as custodian. The KeyBank Credit Facility was amended on May 10, 2022 and October 20, 2022. Under the KeyBank Credit Facility, the Lenders have agreed to extend credit to CBL in an aggregate principal amount of up to $75.0 million as of May 10, 2022, with an uncommitted accordion feature that

allows the Company to borrow up to an additional $125.0 million. The KeyBank Credit Facility matures on May 10, 2027, unless there is an earlier termination or event of default. The period during which the Lenders may make loans to CBL under the KeyBank Credit Facility commenced on October 30, 2020 and will continue through May 10, 2025, unless there is an earlier termination or event of default. Borrowings under the KeyBank Credit Facility bear interest at 1M Term SOFR plus 2.90% during the 3-year revolving period and 3.25% thereafter, with a 0.40% 1M Term SOFR floor. CBL will also pay an unused commitment fee at a rate of (1) 1.00% if utilization is less than or equal to 30.0%, (2) 0.65% if utilization is greater than 30.0% but less than or equal to 60.0%, or (3) 0.35% if utilization is greater than 60.0%, per annum on the unutilized portion of the aggregate commitments under the KeyBank Credit Facility. As of September 30, 2023 and December 31, 2022, there were draws of $35.9 million and $55.9 million, respectively, on the KeyBank Credit Facility. The KeyBank Credit Facility includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. As of September 30, 2023 and December 31, 2022, assets pledged to secure the KeyBank Credit Facility had a fair value of $101.8 million and $111.3 million, respectively.

The following table summarizes the interest expense, deferred financing costs, unused commitment fees, average outstanding balance, and average stated interest rate on the KeyBank Credit Facility for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023			2022			2023			2022
Interest expense	$	991		$	436		$	3,145		$	692
Deferred financing costs		86			85			255			201
Unused commitment fees		31			67			65			246
Total interest and financing expenses	$	1,108		$	588		$	3,465		$	1,139
Average outstanding balance	$	47,156		$	32,844		$	52,647		$	19,704
Average stated interest rate		8.15	%		5.04	%		7.82	%		4.60	%

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following table presents the outstanding principal and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of September 30, 2023, and the level of each financial liability within the fair value hierarchy (dollars in thousands):


	Outstanding Principal		Fair Value		Level 1		Level 2		Level 3
2026 Notes	$	50,000	$	50,000	$	—	$	—	$	50,000
2032 Convertible Notes		15,000		15,000		—		—		15,000
KeyBank Credit Facility		35,850		35,850		—		—		35,850
Total	$	100,850	$	100,850	$	—	$	—	$	100,850

The following table presents the outstanding principal and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of December 31, 2022, and the level of each financial liability within the fair value hierarchy (dollars in thousands):


	Outstanding Principal		Fair Value		Level 1		Level 2		Level 3
2026 Notes	$	50,000	$	50,000	$	—	$	—	$	50,000
2032 Convertible Notes		15,000		15,000		—		—		15,000
KeyBank Credit Facility		55,937		55,937		—		—		55,937
Total	$	120,937	$	120,937	$	—	$	—	$	120,937

The estimated fair value of the 2026 Notes, the 2032 Convertible Notes and the KeyBank Credit Facility approximates the principal value.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates in the Preparation of Financial Statements

Consolidation

Cash and Cash Equivalents

Investment Classification

Valuation of Investments

The Investment Adviser undertakes a multi-step valuation process, which includes, among other procedures, the following:

•

Preliminary valuations are reviewed and discussed with management of the Investment Adviser and investment professionals; and

•

The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible to the Company.

Level 3: Significant inputs that are unobservable for an asset or liability.

Enterprise Value Waterfall Approach

Income Approach

Asset Approach

The asset approach values an investment based on the value of the underlying collateral securing the investment.

Revenue Recognition

The Company’s revenue recognition policies are as follows:

Gains and losses on investment sales: Realized gains and losses on investments are recognized using the specific identification method.

General and Administrative Expenses

Deferred Financing Fees

Earnings Per Share

Commitments and Contingencies

As of September 30, 2023 and December 31, 2022, the Company had the following unfunded commitments to existing portfolio companies (dollars in thousands):


Portfolio Company	Investment	September 30, 2023		December 31, 2022
Accordion Partners LLC(1)	First Lien/Senior Secured Debt	$	—	$	897
Accordion Partners LLC (Revolver)	First Lien/Senior Secured Debt		1,531		1,531
American Clinical Solutions, LLC	First Lien/Senior Secured Debt		750		—
BetaNXT, Inc. (Revolver)	First Lien/Senior Secured Debt		453		453
Bradshaw International, Inc. (Revolver)	First Lien/Senior Secured Debt		922		922
Critical Nurse Staffing, LLC(1)	First Lien/Senior Secured Debt		2,063		2,063
Critical Nurse Staffing, LLC (Revolver)	First Lien/Senior Secured Debt		1,000		700
Dentive, LLC(1)	First Lien/Senior Secured Debt		449		598
Dentive, LLC (Revolver)	First Lien/Senior Secured Debt		187		187
Epic Staffing Group(1)	First Lien/Senior Secured Debt		697		872
Great Lakes Funding II LLC - Series A	Joint Venture		14		80
GreenPark Infrastructure, LLC - Series M-1	Common Stock and Membership Units		732		732
IDC Infusion Services, LLC(1)	First Lien/Senior Secured Debt		799	N/A
Keg Logistics LLC (Revolver)	First Lien/Senior Secured Debt		—		436
Marble Point Credit Management LLC (Revolver)	First Lien/Senior Secured Debt	N/A			2,500
Orthopaedic (ITC) Buyer, LLC(1)	First Lien/Senior Secured Debt		638	N/A
Premier Imaging, LLC(1)	First Lien/Senior Secured Debt	N/A			1,378
PhyNet Dermatology LLC(1)	First Lien/Senior Secured Debt		259	N/A
Taoglas Group Holdings Limited (Revolver)	First Lien/Senior Secured Debt		366	N/A
VBC Spine Opco, LLC (DxTx Pain and Spine LLC)(1)	First Lien/Senior Secured Debt		713	N/A
VBC Spine Opco, LLC (DxTx Pain and Spine LLC) (Revolver)	First Lien/Senior Secured Debt		145	N/A
Wealth Enhancement Group, LLC (Revolver)	First Lien/Senior Secured Debt		438		438
Total Unfunded Commitments		$	12,156	$	13,787

(1) Delayed-draw term loan.

Income Taxes

Distributions

Company Investment Risk, Concentration of Credit Risk and Liquidity Risk

The Investment Adviser may attempt to minimize this risk by maintaining low debt-to-liquidation values with each debt investment and the collateral underlying the debt investment.

Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Composition of Investments at Amortized Cost and Fair Value

The composition of our investments as of September 30, 2023, at amortized cost and fair value was as follows (dollars in thousands):


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	128,979		63.6	%	$	121,263		64.8	%
Second Lien Debt		8,784		4.3	%		7,466		4.0	%
Subordinated Debt		26,573		13.1	%		24,728		13.2	%
Collateralized Loan Obligations		2,327		1.2	%		2,181		1.2	%
Joint Venture		481		0.2	%		471		0.2	%
Equity		35,543		17.6	%		30,990		16.6	%
Total	$	202,687		100.0	%	$	187,099		100.0	%

The composition of our investments as of December 31, 2022, at amortized cost and fair value was as follows (dollars in thousands):


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	143,047		64.9	%	$	136,896		67.3	%
Second Lien Debt		8,283		3.8	%		6,464		3.2	%
Subordinated Debt		26,571		12.0	%		25,851		12.7	%
Collateralized Loan Obligations		6,185		2.8	%		4,972		2.4	%
Joint Venture		414		0.2	%		403		0.2	%
Equity		36,016		16.3	%		29,006		14.2	%
Total	$	220,516		100.0	%	$	203,592		100.0	%

Schedule of Fair Value Measurements of Investments, by Major Class, According to Fair Value Hierarchy

The following table presents the fair value measurements of investments, by major class, as of September 30, 2023, according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements
	Level 1		Level 2		Level 3		NAV		Total
First Lien Debt	$	—	$	—	$	121,263	$	—	$	121,263
Second Lien Debt		—		—		7,466		—		7,466
Subordinated Debt		—		—		24,728		—		24,728
Collateralized Loan Obligations		—		—		2,181		—		2,181
Joint Venture		—		—		—		471		471
Equity		—		—		30,990		—		30,990
Total	$	—	$	—	$	186,628	$	471	$	187,099

The following table presents fair value measurements of investments, by major class, as of December 31, 2022, according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements
	Level 1		Level 2		Level 3		NAV		Total
First Lien Debt	$	—	$	—	$	136,896	$	—	$	136,896
Second Lien Debt		—		—		6,464		—		6,464
Subordinated Debt		—		—		25,851		—		25,851
Collateralized Loan Obligations		—		—		4,972		—		4,972
Joint Venture		—		—		—		403		403
Equity		—		—		29,006		—		29,006
Total	$	—	$	—	$	203,189	$	403	$	203,592

Summary of Reconciliation of Beginning and Ending Balances for Investments That Use Level 3 Inputs

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended September 30, 2023 (dollars in thousands):


	First Lien Debt			Second Lien Debt			Subordinated Debt			Collateralized Loan Obligations			Equity			Total
Balance as of January 1, 2023	$	136,896		$	6,464		$	25,851		$	4,972		$	29,006		$	203,189
Repayments/sales		(33,317	)		(4	)		—			(97	)		(1,035	)		(34,453	)
Purchases		18,206			—			—			—			102			18,308
Payment-in-kind interest and dividends accrued		526			480			2			—			149			1,157
Accretion of original issue discount		517			25			—			513			—			1,055
Net realized (loss) gain on investments		—			—			—			(4,274	)		311			(3,963	)
Net change in unrealized (depreciation) appreciation on investments		(1,565	)		501			(1,125	)		1,067			2,457			1,335
Transfers out		—			—			—			—			—			—
Balance as of September 30, 2023	$	121,263		$	7,466		$	24,728		$	2,181		$	30,990		$	186,628

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended September 30, 2022 (dollars in thousands):


	First Lien Debt			Second Lien Debt			Subordinated Debt			Collateralized Loan Obligations			Equity			Total
Balance as of January 1, 2022	$	98,251		$	30,190		$	5,050		$	7,717		$	56,981		$	198,189
Repayments/sales		(38,842	)		(24,429	)		1			(678	)		(19,749	)		(83,697	)
Purchases		58,674			3,086			21,272			—			382			83,414
Payment-in-kind interest and dividends accrued		140			276			175			—			146			737
Accretion of original issue discount		367			38			4			846			—			1,255
Net realized gain (loss) on investments		21			(1	)		—			(940	)		11,194			10,274
Net change in unrealized (depreciation) appreciation on investments		815			(1,387	)		(406	)		(281	)		(16,063	)		(17,322	)
Balance as of September 30, 2022	$	119,426		$	7,773		$	26,096		$	6,664		$	32,891		$	192,850

Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of September 30, 2023 were as follows:


	Fair Value (in millions)		Valuation Technique	Unobservable Input	Range of Input (Weighted Average)(2)
First lien debt	$	7.2	Market	Broker/Dealer Quotes	N/A
First lien debt		109.0	Income	Required Rate of Return	6.5% – 30.0% (12.8%)
First lien debt		5.0	Enterprise Market Value	Revenue Multiple	0.4x
Second lien debt		3.1	Market	Broker/Dealer Quotes	N/A
Second lien debt		4.4	Income	Required Rate of Return	2.2% – 20.1% (16.3%)
Subordinated debt		24.2	Income	Required Rate of Return	5.8% – 11.0% (9.9%)
Subordinated debt		0.5	Enterprise Market Value	EBITDA Multiple	7.0x
Collateralized Loan Obligations		2.2	Income	Discount Margin	23.3% – 24.9% (24.5%)
Equity		0.1	Income	Stock Price Time to Exit (Years) Volatility	$103.75 2.0 35.0%
Equity		28.2	Enterprise Market Value and Asset(1)	EBITDA Multiple	2.3x – 17.3x (6.7x)
Equity		2.7	Enterprise Market Value	Revenue Multiple	0.3x – 1.2x (1.0x)
	$	186.6

(1)

$1.0 million in equity was valued using the asset approach.

(2)

The weighted averages disclosed in the table above were weighted by their relative fair value.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December 31, 2022 were as follows:


	Fair Value (in millions)		Valuation Technique	Unobservable Input	Range of Input (Weighted Average)(2)
First lien debt	$	7.4	Market	Broker/Dealer Quotes	N/A
First lien debt		123.5	Income	Required Rate of Return	6.0% – 30.0% (12.2%)
First lien debt		6.0	Enterprise Market Value	Revenue Multiple	0.4x
Second lien debt		2.6	Market	Broker/Dealer Quotes	N/A
Second lien debt		3.4	Income	Required Rate of Return	1.6% – 18.7% (16.1%)
Second lien debt		0.4	Enterprise Market Value	Revenue Multiple	4.7x
Subordinated debt		25.9	Income	Required Rate of Return	5.9% – 18.9% (10.4%)
Collateralized loan obligations		5.0	Income	Discount Margin	21.5% – 24.8% (23.6%)
Equity		0.1	Income	Stock Price Time to Exit (Years) Volatility	$115.8 2.0 35.0%
Equity		26.2	Enterprise Market Value and Asset(1)	EBITDA Multiple	3.3x – 15.8x (6.4x)
Equity		2.7	Enterprise Market Value	Revenue Multiple	0.3x – 1.0x (0.9x)
	$	203.2

(1)

$1.0 million in equity was valued using the asset approach.

(2)

The weighted averages disclosed in the table above were weighted by their relative fair value.

Transactions With Affiliated Companies (Tables)

9 Months Ended

Sep. 30, 2023

Investments in and Advances to Affiliates [Abstract]

Schedule of Transactions with Affiliates

During the nine months ended September 30, 2023, the Company had investments in portfolio companies designated as affiliates under the 1940 Act. Transactions with affiliates were as follows (dollars in thousands):


Company(4)	Type of Investment	Principal Amount		Amount of Interest, Fees or Dividends Credited to Income(1)		December 31, 2022 Fair Value		Gross Additions(2)		Gross Reductions(3)			Realized Gain/(Loss)		Unrealized Appreciation (Depreciation)			September 30, 2023 Fair Value
Affiliate investments
Burgaflex Holdings, LLC	Common Stock Class A (1,253,198 shares)	$	—	$	—	$	2,802	$	—	$	—		$	—	$	(42	)	$	2,760
Burgaflex Holdings, LLC	Common Stock Class B (1,085,073 shares)		—		—		2,190		—		—			—		10			2,200
					—		4,992		—		—			—		(32	)		4,960
GA Communications, Inc.	Series A-1 Preferred Stock (1,998 shares)		—		—		3,562		—		(1	)		—		(21	)		3,540
GA Communications, Inc.	Series B-1 Common Stock (200,000 shares)		—		—		—		—		—			—		1,000			1,000
					—		3,562		—		(1	)		—		979			4,540
Great Lakes Funding II LLC	Series A		—		47		403		76		(9	)		—		1			471
					47		403		76		(9	)		—		1			471
GreenPark Infrastructure, LLC	Series A (400 Units)		—		—		200		—		—			—		—			200
GreenPark Infrastructure, LLC	Series M-1 (200 Units)		—		—		69		—		—			—		—			69
					—		269		—		—			—		—			269
MMI Holdings, LLC	First Lien Debt (12.00% Cash, Due 4/1/22)		2,600		237		2,600		—		—			—		(94	)		2,506
MMI Holdings, LLC	Second Lien Debt (6.00% Cash, Due 4/1/22)		400		30		400		12		—			—		(61	)		351
MMI Holdings, LLC(5)	Preferred Units (1,000 units, 8.00% PIK Dividend)		—		94		1,360		94		—			—		(1,218	)		236
MMI Holdings, LLC	Common Membership Units (45 units)		—		—		—		—		—			—		—			—
					361		4,360		106		—			—		(1,373	)		3,093
Nth Degree Investment Group, LLC	Membership Units (6,088,000 units)		—		—		5,320		—		—			—		5,137			10,457
					—		5,320		—		—			—		5,137			10,457
RAM Payment, LLC	First Lien Debt (10.43% Cash (1 month SOFR + 5.00%), 1.50% Floor), Due 1/4/24)		161		24		939		—		(778	)		—		—			161
RAM Payment, LLC	First Lien Debt (13.76% Cash, Due 1/4/24)		438		122		2,547		—		(2,109	)		—		—			438
RAM Payment, LLC(5)	Preferred Units (86,000 units, 6.00% PIK Dividend)		—		51		3,165		51		(244	)		—		(577	)		2,395
					197		6,651		51		(3,131	)		—		(577	)		2,994
Sierra Hamilton Holdings Corporation	Second Lien Debt (15.00% PIK, Due 9/12/23)		—		1		4				(4	)		—		—			—
Sierra Hamilton Holdings Corporation	Common Stock (27,396,364 shares)		—		—		254		—		—			—		297			551
					1		258		—		(4	)		—		297			551
V12 Holdings, Inc.	Second Lien Debt		509		—		509		—		—			—		—			509
					—		509		—		—			—		—			509
Total Affiliate investments				$	606	$	26,324	$	233	$	(3,145	)	$	—	$	4,432		$	27,844

(1)

Represents the total amount of interest, original issue discount, fees and dividends credited to income for the portion of the year an investment was included in Affiliate or Control categories, respectively.

(2)

Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK and accretion of original issue discount. Gross additions also include transfers into Affiliate or Control classification.

(3)

Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales. Gross reductions also include transfers out of Affiliate or Control classification.

(4)

All debt investments are income producing. Equity and warrant investments are non-income producing, unless otherwise noted.

(5)

The equity investment is income producing, based on rate disclosed.

During the year ended December 31, 2022, the Company had investments in portfolio companies designated as affiliates under the 1940 Act. Transactions with affiliates were as follows (dollars in thousands):


Company(4)	Type of Investment	Principal Amount		Amount of Interest, Fees or Dividends Credited to Income(1)		December 31, 2021 Fair Value		Gross Additions(2)		Gross Reductions(3)			Realized Gain/(Loss)			Unrealized Appreciation (Depreciation)			December 31, 2022 Fair Value
Affiliate investments(6)
Burgaflex Holdings, LLC	Common Stock Class B (1,085,073 shares)	$	—	$	—	$	1,528	$	—	$	—		$	—		$	662		$	2,190
Burgaflex Holdings, LLC	Common Stock Class A (1,253,198 shares)		—		—		1,193		—		—			—			1,609			2,802
					—		2,721		—		—			—			2,271			4,992
GA Communications, Inc.	Series A-1 Preferred Stock (1,998 shares)		—		—		4,394		—		—			—			(832	)		3,562
GA Communications, Inc.	Series B-1 Common Stock (200,000 shares)		—		—		185		—		—			—			(185	)		—
					—		4,579		—		—			—			(1,017	)		3,562
Great Lakes Funding II LLC	Series A		—		14		—		517		(103	)		—			(11	)		403
					14		—		517		(103	)		—			(11	)		403
GreenPark Infrastructure, LLC	Series A (400 Units)		—		—		—		200		—			—			—			200
GreenPark Infrastructure, LLC	Series M-1 (200 Units)		—		—		—		69		—			—			—			69
					—		—		269		—			—			—			269
LJS Partners, LLC	Preferred Units (202,336 units)		—		—		843		—		(979	)		542			(406	)		—
LJS Partners, LLC	Common Membership Units (2,593,234 units)		—		—		7,164		—		(2,354	)		1,130			(5,940	)		—
					—		8,007		—		(3,333	)		1,672			(6,346	)		—
MMI Holdings, LLC	First Lien Debt (12.0% Cash, Due 4/1/22)		2,600		308		2,600		—		—			—			—			2,600
MMI Holdings, LLC	Second Lien Debt (6.0% Cash, Due 4/1/22)		400		24		400		—		—			—			—			400
MMI Holdings, LLC(5)	Preferred Units (1,000 units, 8.0% PIK Dividend)		—		118		1,898		118		—			—			(656	)		1,360
MMI Holdings, LLC	Common Membership Units (45 units)		—		—		63		—		—			—			(63	)		—
					450		4,961		118		—			—			(719	)		4,360
Nth Degree Investment Group, LLC	Membership Units (6,088,000 units)		—		—		—		—		—			—			5,320			5,320
					—		—		—		—			—			5,320			5,320
RAM Payment, LLC	First Lien Debt (6.5% Cash (1 month LIBOR + 5.0%), 1.5% Floor), Due 1/4/24)		939		82		998		—		(59	)		—			—			939
RAM Payment, LLC	First Lien Debt (12.45% Cash, Due 1/4/24)		2,547		291		2,706		—		(159	)		—			—			2,547
RAM Payment, LLC(5)	Preferred Units (86,000 units, 6.0% PIK Dividend)		—		69		3,726		69		—			—			(630	)		3,165
					442		7,430		69		(218	)		—			(630	)		6,651
Sierra Hamilton Holdings Corporation	Second Lien Debt (15.0% PIK, Due 9/12/23)		3		1		3		1		—			—			—			4
Sierra Hamilton Holdings Corporation	Common Stock (15,068,000 shares)		—		—		330		—		—			—			(76	)		254
					1		333		1		—			—			(76	)		258
V12 Holdings, Inc.	Second Lien Debt		509		—		509		—		—			—			—			509
					—		509		—		—			—			—			509
Total Affiliate investments				$	907	$	28,540	$	974	$	(3,654	)	$	1,672		$	(1,208	)	$	26,324
Control investments
Vology, Inc.	First Lien Debt (10.5% Cash (1 month LIBOR + 8.5%, 2.0% Floor), Due 3/31/22)	$	—	$	228	$	3,635	$	—	$	(3,635	)	$	—		$	—		$	—
Vology, Inc.	Class A Preferred Units (9,041,810 Units)		—		—		3,204		—		—			(5,215	)		2,011			—
Vology, Inc.	Membership Units (5,363,982 Units)		—		—		—		—		—			—			—			—
Total Control investments				$	228	$	6,839	$	—	$	(3,635	)	$	(5,215	)	$	2,011		$	—

(1)

(2)

(3)

Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales. Gross reductions also include transfers out of Affiliate or Control classification.

(4)

All debt investments are income producing. Equity and warrant investments are non-income producing, unless otherwise noted.

(5)

The equity investment is income producing, based on rate disclosed.

(6)

During the second quarter of 2022, Eastport Holdings, LLC completed a refinancing and recapitalization transaction. Logan Ridge received $16.5 million in cash and $19.3 million in principal of a new debt security in exchange for all of its previous debt and equity securities, which resulted in a realized gain of approximately $16.0 million on the Company's equity interest. As a result of this transaction, Eastport Holdings, LLC is no longer an affiliate of the Company.

Consolidated Schedule of Investments - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2023

Dec. 31, 2022

Dec. 31, 2021

Financial Highlights - Schedule of Financial Highlights (Parenthetical) (Details)	9 Months Ended
	Sep. 30, 2023 USD ($)
Investment Company, Financial Highlights [Abstract]
Asset coverage per unit measure per dollar	$ 1,000

Borrowings - 2032 Convertible Notes - Additional Information (Details) - 2032 Convertible Notes		9 Months Ended
	Apr. 01, 2022 USD ($) shares	Sep. 30, 2023 USD ($) Days	Dec. 31, 2022 USD ($)	Sep. 30, 2022
Debt Instrument [Line Items]
Average stated interest rate	5.25%	5.25%		5.25%
Maturity date		Apr. 01, 2032
Debt instrument, interest rate terms		The 2032 Convertible Notes have a fixed interest rate of 5.25% per annum payable semi-annually on March 31 and September 30 of each year, commencing on September 30, 2022, subject to a step up of 0.75% per annum to the extent that the 2032 Convertible Notes are downgraded below Investment Grade by an NRSRO or the 2032 Convertible Notes no longer maintain a rating from an NRSRO. The Company will also be required to pay an additional interest rate of 2.0% per annum (x) on any overdue payment of interest and (y) during the continuance of an “Event of Default.
Interest rate payable commencement date		Sep. 30, 2022
Step up interest rate per annum to extend that convertible notes downgraded below investment grade or no longer maintain rating from an NRSRO	0.75%
Additional interest rate percentage per annum on overdue payment of interest and during continuance of an event of default	2.00%
Debt instrument, repurchase price percentage	100.00%
Sinking fund description		No “sinking fund” is provided for the 2032 Convertible Notes
Convertible notes outstanding		$ 15,000,000.0	$ 15,000,000.0
Purchase Agreement
Debt Instrument [Line Items]
Conversion description		The 2032 Convertible Notes are convertible, at the holder’s option and at any time on or prior to the close of business on the business day immediately preceding the maturity date, into such number of shares of the Company’s common stock as is equal to the principal balance of the notes being converted on such date divided by the “Conversion Price,” as described below. The Company will not issue more than 539,503 shares of common stock in the aggregate under the purchase agreement governing the 2032 Convertible Notes (the “Purchase Agreement”); however, such number of shares may be adjusted from time to time to give effect to any forward or reverse stock splits with respect to the common stock as well as any further adjustments described in the purchase agreement. The “Conversion Price” will be equal to the average “Closing Sale Price” for the five “Trading Days” immediately prior to the relevant “Conversion Date,” as those terms are defined in the Purchase Agreement, subject to certain anti-dilutive provisions, as further described in the Purchase Agreement. No holder of a 2032 Convertible Note will be entitled to convert any such note or portion thereof if such conversion would result in more than $7,500,000 in principal amount of 2032 Convertible Notes being converted in any such calendar quarter. The Company has determined that the embedded conversion option in the 2032 Convertible Notes is not required to be separately accounted for as a derivative under U.S. GAAP.
Maximum number of shares issuable under purchase agreement \| shares	539,503
Number of trading days \| Days		5
Principal amount basis	$ 7,500,000
5.25% Fixed-rate Convertible Notes Due April 1, 2032
Debt Instrument [Line Items]
Debt instrument, issuance date		Apr. 01, 2022
Aggregate principal amount	$ 15,000,000
Average stated interest rate	5.25%

Investments and Fair Value Measurements - Summary of Reconciliation of Beginning and Ending Balances for Investments Using Level 3 Inputs (Details) - Level 3 - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 203,189	$ 198,189
Repayments/sales	(34,453)	(83,697)
Purchases	18,308	83,414
Payment-in-kind interest and dividends accrued	1,157	737
Accretion of original issue discount	1,055	1,255
Net realized (loss) gain on investments	(3,963)	10,274
Net change in unrealized (depreciation) appreciation on investments	1,335	(17,322)
Ending balance	186,628	192,850
First Lien Debt
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	136,896	98,251
Repayments/sales	(33,317)	(38,842)
Purchases	18,206	58,674
Payment-in-kind interest and dividends accrued	526	140
Accretion of original issue discount	517	367
Net realized (loss) gain on investments		21
Net change in unrealized (depreciation) appreciation on investments	(1,565)	815
Ending balance	121,263	119,426
Second Lien Debt
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	6,464	30,190
Repayments/sales	(4)	(24,429)
Purchases		3,086
Payment-in-kind interest and dividends accrued	480	276
Accretion of original issue discount	25	38
Net realized (loss) gain on investments		(1)
Net change in unrealized (depreciation) appreciation on investments	501	(1,387)
Ending balance	7,466	7,773
Subordinated Debt
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	25,851	5,050
Repayments/sales		1
Purchases		21,272
Payment-in-kind interest and dividends accrued	2	175
Accretion of original issue discount		4
Net change in unrealized (depreciation) appreciation on investments	(1,125)	(406)
Ending balance	24,728	26,096
Collateralized Loan Obligations
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	4,972	7,717
Repayments/sales	(97)	(678)
Accretion of original issue discount	513	846
Net realized (loss) gain on investments	(4,274)	(940)
Net change in unrealized (depreciation) appreciation on investments	1,067	(281)
Ending balance	2,181	6,664
Equity
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	29,006	56,981
Repayments/sales	(1,035)	(19,749)
Purchases	102	382
Payment-in-kind interest and dividends accrued	149	146
Net realized (loss) gain on investments	311	11,194
Net change in unrealized (depreciation) appreciation on investments	2,457	(16,063)
Ending balance	$ 30,990	$ 32,891

Distributions - Additional Information (Details) - $ / shares	Sep. 30, 2023	Sep. 30, 2022
Distributions [Abstract]
Distributions, per share	$ 0.66	$ 0

Consolidated Schedule of Investments (Parenthetical)	9 Months Ended	12 Months Ended
Consolidated Schedule of Investments (Parenthetical)	Sep. 30, 2023	Dec. 31, 2022
Schedule Of Investments [Line Items]
Percentage of qualifying assets to total assets	98.70%	97.50%
Percentage of non-qualifying assets to total assets	1.30%	2.50%
Online Merchandise Retailer \| BLST Operating Company, LLC
Schedule Of Investments [Line Items]
Interest rate payable in cash		1.00%
Interest rate payable in cash or paid-in-kind		9.00%
Oil & Gas Engineering and Consulting Services \| Sierra Hamilton Holdings Corporation
Schedule Of Investments [Line Items]
Interest rate payable in cash or paid-in-kind		15.00%
Prime Rate
Schedule Of Investments [Line Items]
Variable interest rate	8.50%
Minimum
Schedule Of Investments [Line Items]
Percentage of qualifying assets to total assets	70.00%	70.00%
Non-controlled Affiliated Investments \| Minimum
Schedule Of Investments [Line Items]
Percentage of outstanding voting securities owned	5.00%	5.00%
Controlled Affiliated Investments \| Minimum
Schedule Of Investments [Line Items]
Percentage of outstanding voting securities owned	25.00%
6 Month \| LIBOR
Schedule Of Investments [Line Items]
Variable interest rate		5.14%
6 Month \| SOFR
Schedule Of Investments [Line Items]
Variable interest rate	5.44%	4.78%
3 Month \| LIBOR
Schedule Of Investments [Line Items]
Variable interest rate	5.66%	4.77%
3 Month \| SOFR
Schedule Of Investments [Line Items]
Variable interest rate	5.40%	4.59%
1 Month \| LIBOR
Schedule Of Investments [Line Items]
Variable interest rate	5.43%	4.39%
1 Month \| SOFR
Schedule Of Investments [Line Items]
Variable interest rate	5.32%	4.36%

Investments and Fair Value Measurements - Summary of Valuation Techniques and Significant Unobservable Inputs used in Recurring Level 3 Fair Value Measurements of Assets (Parenthetical) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value of investments	$ 187,099	$ 203,592
Equity
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value of investments	30,990	29,006
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value of investments	186,628	203,189
Level 3 \| Equity
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value of investments	30,990	29,006
Level 3 \| Equity \| Asset Approach \| EBITDA Multiple
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value of investments	$ 1,000	$ 1,000

Consolidated Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized cost	$ 202,687	$ 220,516
Common Stock, Par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	2,679,812	2,711,068
Common Stock, Shares, Outstanding	2,679,812	2,711,068
2026 Notes
Net of deferred financing costs and original issue discount	$ 1,147	$ 1,421
2032 Convertible Notes
Net of deferred financing costs and original issue discount	1,029	1,117
KeyBank Credit Facility
Net of deferred financing costs	1,068	1,322
Non-control/non-affiliate Investments
Amortized cost	176,518	191,435
Affiliate Investments
Amortized cost	$ 26,169	$ 29,081

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase (decrease) in net assets resulting from operations	$ 639	$ (8,853)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchase of investments	(18,384)	(83,795)
Repayments and sales of investments	34,462	83,800
Net realized loss (gain) on investments	3,963	(10,274)
Net change in unrealized (appreciation) depreciation on investments	(1,336)	17,330
Payment-in-kind interest and dividends	(1,157)	(737)
Accretion of original issue discount on investments	(1,055)	(1,255)
Amortization of deferred financing fees and original issue discount	616	729
Changes in assets and liabilities:
Interest and dividend receivable	(715)	(233)
Prepaid expenses	301	450
Receivable for unsettled trades		685
Other assets	51	(30)
Management and incentive fees payable	(20)	(138)
Interest and financing fees payable	428	378
Payable for unsettled trades	2,314	(8,884)
Accounts payable and accrued expenses	738	(164)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	20,845	(10,991)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of 2032 Notes		13,950
Repayment of 2022 Notes		(22,833)
Repayment of 2022 Convertible Notes		(52,088)
Borrowings under KeyBank Credit Facility	14,000	71,776
Repayments under KeyBank Credit Facility	(34,087)	(26,000)
Distributions paid to shareholders	(1,777)
Repurchase of common stock	(659)
Deferred financing fees paid		(1,607)
NET CASH USED IN FINANCING ACTIVITIES	(22,523)	(16,802)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,678)	(27,793)
CASH AND CASH EQUIVALENTS, beginning of period	6,793	39,056
CASH AND CASH EQUIVALENTS, end of period	5,115	11,263
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	5,305	$ 4,401
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS
Distributions paid through dividend reinvestment plan share issuances	$ 5

Organization - Additional Information (Details) - USD ($)		9 Months Ended
	Sep. 24, 2013	Sep. 30, 2023	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Company incorporated date		Feb. 21, 2013
Percentage of limited partnership interests acquired	100.00%
Shares issued	8,974,420
SBA-guaranteed Debentures
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
SBA-guaranteed debentures outstanding		$ 0	$ 0
IPO
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of shares of common stock	4,000,000
Sale of shares of common stock, price per share	$ 20
Net proceeds from sale of shares of common stock	$ 74,250,000
Underwriting fees and commissions	4,000,000
Offering expenses	$ 1,750,000

Investments and Fair Value Measurements - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) Portfolio	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Portfolio	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) Portfolio
Summary Of Investment Holdings [Line Items]
Number of portfolio companies \| Portfolio	58		58		59
Fair value	$ 187,099,000		$ 187,099,000		$ 203,592,000
Investment owned percentage of last-out loans of first lien loans	0.40%		0.40%		1.90%
Purchase of investments	$ (6,100,000)	$ (36,700,000)	$ (18,384,000)	$ (83,795,000)
Repayments and sales of investments	23,200,000	17,100,000	34,500,000	83,800,000
Net deployment amount of investment	17,100	$ 19,600,000	16,100,000
Net change in unrealized (depreciation) appreciation on investments held			400,000	(17,300,000)
Unfunded commitment to investee	12,156,000		12,156,000		$ 13,787,000
Maximum
Summary Of Investment Holdings [Line Items]
Net deployment amount of investment				$ 100,000
Great Lakes Funding I I L L C Series A
Summary Of Investment Holdings [Line Items]
Fair value	$ 500,000		$ 500,000		$ 400,000
Percentage of voting interest	50.00%		50.00%
Great Lakes Funding I I L L C Series A \| Maximum
Summary Of Investment Holdings [Line Items]
Unfunded commitment to investee	$ 100,000		$ 100,000

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 06, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Trading Symbol	LRFC
Entity Registrant Name	Logan Ridge Finance Corporation
Entity Central Index Key	0001571329
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,675,940
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation State Country Code	MD
Entity Tax Identification Number	90-0945675
Entity Address, Address Line One	650 Madison Avenue
Entity Address, Address Line Two	23rd Floor
Entity Address City Or Town	New York
Entity Address State Or Province	NY
Entity Address Postal Zip Code	10022
City Area Code	212
Local Phone Number	891-2880
Security12b Title	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity File Number	814-01022

Stockholders' Equity - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 06, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Class Of Stock [Line Items]
Termination date of share repurchase program	Mar. 31, 2024
Stock repurchases, value		$ 369,000		$ 659,000
Common stock issued under DRIP		53		240
Dividends payable			$ 0		$ 0
Shares outstanding at end of period		2,679,812	2,711,068	2,679,812	2,711,068	2,711,068
New Share Repurchase Program
Class Of Stock [Line Items]
Stock repurchases, shares		17,384	0	31,496	0
Stock repurchases, value		$ 400,000		$ 700,000
New Share Repurchase Program \| Maximum [Member]
Class Of Stock [Line Items]
Stock repurchase program, authorized amount	$ 5,000,000

Borrowings - KeyBank Credit Facility - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended
	May 10, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
1M Term SOFR \| Capitala Business Lending, LLC
Debt Instrument [Line Items]
Interest rate description				1M Term SOFR plus
KeyBank Credit Facility
Debt Instrument [Line Items]
Interest rate		8.15%	5.04%	7.82%	4.60%
Borrowings under Key bank credit facility		$ 34,782,000		$ 34,782,000		$ 54,615,000
KeyBank Credit Facility \| Capitala Business Lending, LLC
Debt Instrument [Line Items]
Agreement date				Oct. 30, 2020
Aggregate principal amount	$ 75,000,000
Additional maximum borrowing capacity	$ 125,000,000
Maturity date				May 10, 2027
Payment terms				The period during which the Lenders may make loans to CBL under the KeyBank Credit Facility commenced on October 30, 2020 and will continue through May 10, 2025, unless there is an earlier termination or event of default.
Revolving period	3 years
Commitment fee description				CBL will also pay an unused commitment fee at a rate of (1) 1.00% if utilization is less than or equal to 30.0%, (2) 0.65% if utilization is greater than 30.0% but less than or equal to 60.0%, or (3) 0.35% if utilization is greater than 60.0%, per annum on the unutilized portion of the aggregate commitments under the KeyBank Credit Facility.
Unused commitment fee percentage if utilization is less than or equal to 30.0%	1.00%
Unused commitment fee percentage if utilization is greater than 30.0% but less than or equal to 60.0%	0.65%
Unused commitment fee percentage if utilization is greater than 60.0%	0.35%
Borrowings under Key bank credit facility		35,900,000		$ 35,900,000		55,900,000
Collateral pledge, fair value		$ 101,800,000		$ 101,800,000		$ 111,300,000
KeyBank Credit Facility \| 1M Term SOFR \| Capitala Business Lending, LLC
Debt Instrument [Line Items]
Interest rate	2.90%
KeyBank Credit Facility \| Thereafter \| Capitala Business Lending, LLC
Debt Instrument [Line Items]
Interest rate	3.25%
KeyBank Credit Facility \| 1M Term SOFR Floor \| Capitala Business Lending, LLC
Debt Instrument [Line Items]
Interest rate	0.40%

Borrowings - Schedule of Outstanding Principal and Fair Value of Financial liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding Principal	$ 100,850	$ 120,937
Fair Value	100,850	120,937
2026 Notes
Debt Instrument [Line Items]
Outstanding Principal	50,000	50,000
Fair Value	50,000	50,000
2032 Convertible Notes
Debt Instrument [Line Items]
Outstanding Principal	15,000	15,000
Fair Value	15,000	15,000
Level 3
Debt Instrument [Line Items]
Fair Value	100,850	120,937
Level 3 \| 2026 Notes
Debt Instrument [Line Items]
Fair Value	50,000	50,000
Level 3 \| 2032 Convertible Notes
Debt Instrument [Line Items]
Fair Value	15,000	15,000
KeyBank Credit Facility
Debt Instrument [Line Items]
Outstanding Principal	35,850	55,937
Fair Value	35,850	55,937
KeyBank Credit Facility \| Level 3
Debt Instrument [Line Items]
Fair Value	$ 35,850	$ 55,937

Consolidated Statements of Assets and Liabilities - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investments at fair value:
Total investments at fair value	$ 187,099	$ 203,592
Cash and cash equivalents	5,115	6,793
Interest and dividend receivable	2,293	1,578
Prepaid expenses	2,381	2,682
Other assets	14	65
Total assets	196,902	214,710
LIABILITIES
Management and incentive fees payable	913	933
Interest and financing fees payable	1,401	973
Accounts payable and accrued expenses	1,460	722
Payable for unsettled trades	2,314
Total liabilities	103,694	119,705
Commitments and contingencies (Note 2)
NET ASSETS
Common stock, par value $0.01, 100,000,000 common shares authorized, 2,679,812 and 2,711,068 common shares issued and outstanding, respectively	27	27
Additional paid in capital	190,384	191,038
Total distributable loss	(97,203)	(96,060)
Total net assets	93,208	95,005
Total liabilities and net assets	$ 196,902	$ 214,710
Net asset value per share	$ 34.78	$ 35.04
KeyBank Credit Facility
LIABILITIES
KeyBank Credit Facility (net of deferred financing costs of $1,068 and $1,322, respectively)	$ 34,782	$ 54,615
2026 Notes
LIABILITIES
2026 Notes (net of deferred financing costs and original issue discount of $1,147 and $1,421, respectively)	48,853	48,579
2032 Convertible Notes
LIABILITIES
2032 Convertible Notes (net of deferred financing costs and original issue discount of $1,029 and $1,117, respectively)	13,971	13,883
Non-control/non-affiliate Investments
Investments at fair value:
Total investments at fair value	159,255	177,268
Affiliate Investments
Investments at fair value:
Total investments at fair value	$ 27,844	$ 26,324

Subsequent Events - Additional Information (Details) - $ / shares	Nov. 07, 2023	Sep. 30, 2023	Sep. 30, 2022
Subsequent Event [Line Items]
Distributions, per share		$ 0.66	$ 0
Subsequent Event
Subsequent Event [Line Items]
Distributions, per share	$ 0.3
Dividends payable date of approval	Nov. 07, 2023
Distribution payable, date of record	Nov. 20, 2023
Distribution payable, date to be paid	Nov. 30, 2023

Investments and Fair Value Measurements - Summary of Fair Value of Investments by Major Class Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	$ 187,099	$ 203,592
Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	186,628	203,189
NAV
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	471	403
First Lien Debt
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	121,263	136,896
First Lien Debt \| Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	121,263	136,896
Second Lien Debt
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	7,466	6,464
Second Lien Debt \| Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	7,466	6,464
Subordinated Debt
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	24,728	25,851
Subordinated Debt \| Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	24,728	25,851
Collateralized Loan Obligations
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	2,181	4,972
Collateralized Loan Obligations \| Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	2,181	4,972
Joint Venture
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	471	403
Joint Venture \| NAV
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	471	403
Equity
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	30,990	29,006
Equity \| Level 3
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair value of investments	$ 30,990	$ 29,006