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14 terms

No matching terms.

NII

Net investment income: investment income less the expenses recognized in that measure. It is neither the cash-flow statement nor total investment return. Explore NII in the full guide ↗

PIK

Payment-in-kind income can accrue into a loan balance instead of being paid in cash. Recognition and collectibility require issuer-specific review. Explore PIK in the full guide ↗

Non-accrual

An accounting status in which ordinary income accrual is suspended under the issuer’s policy. It is not the same as a realized loss or the entire watch list. Explore Non-accrual in the full guide ↗

Fair value

An estimated value under the applicable valuation framework. An illiquid loan’s reported fair value is not a guaranteed sale price. Explore Fair value in the full guide ↗

NAV per share

Reported net assets attributable to the relevant share class divided by the applicable shares at the reporting date. Preserve its date when comparing a market quote. Explore NAV per share in the full guide ↗

First lien

A contractual senior security interest in specified collateral. Priority does not establish collateral adequacy or guarantee full recovery. Explore First lien in the full guide ↗

Unitranche

A financing structure combining lending exposures in one facility; intercreditor arrangements can affect the economic priority of different lenders. Explore Unitranche in the full guide ↗

Regular distribution

The issuer’s identified recurring distribution. Match the declared or paid basis and period before comparing it with NII. Explore Regular distribution in the full guide ↗

Supplemental distribution

An additional issuer-designated distribution. A regular-only coverage ratio omits it; include applicable supplements and specials when testing total distributions. Explore Supplemental distribution in the full guide ↗

Incentive fee

Contractual compensation based on a specified income or gain measure. Hurdles, catch-up, waivers, lookbacks and caps can change the amount. Explore Incentive fee in the full guide ↗

Catch-up

A contractual fee band that can allocate more income to the adviser after a hurdle is passed. A hurdle does not necessarily mean fees apply only to excess income. Explore Catch-up in the full guide ↗

Asset coverage

A statutory senior-security coverage test with defined adjustments and possible relief. A simple debt-to-equity worksheet is not a compliance calculation. Explore Asset coverage in the full guide ↗

RIC

Regulated investment company is a tax status with separate requirements. A BDC regulatory election does not itself prove compliance with RIC rules. Explore RIC in the full guide ↗

Spillover

A term used in distribution and tax discussions for income associated with later distributions. It is not necessarily a segregated cash reserve. Read the specific tax period and election. Explore Spillover in the full guide ↗

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Concise educational definitions. Use each linked guide for scope, primary sources and issuer-specific differences.