Total expenses for the three and nine months ended September 30, 2012 were $16.8 million and $44.0 million, respectively, versus $12.3 million and $33.9 million for the three and nine months ended September 30, 2011. Of these totals, for the three and nine months ended September 30, 2012, $6.0 million and $16.9 million, respectively, were base management fees, versus $5.1 million and $14.5 million for the three and nine months ended September 30, 2011. The increases in the current period reflect the overall growth and appreciation in value of our portfolio. Interest and credit facility related expenses were $5.2 million and $14.9 million, respectively, for the three and nine months ended September 30, 2012, compared to $4.2 million and $11.9 million for the three and nine months ended September 30, 2011. The increase in the 2012 period is mainly a result of increased borrowing levels. Average debt outstanding for the nine months ended September 30, 2012 and 2011 was $390.7 million and $276.6 million, respectively. Incentive management fees for the three and nine months ended September 30, 2012 were $3.0 million and $5.2 million, respectively. There were no such fees for the 2011 periods. Of the current period totals and new this quarter, $3.0 million represents incentive management fees accrued based on a hypothetical capital gains calculation, as required by GAAP. A hypothetical liquidation is performed each quarter possibly resulting in an incentive fee accrual if the amount is positive. It should be noted, however, that a fee so calculated and accrued is not due and payable, if at all, until the end of each measurement period, or every June 30. Expenses also consist of amortization of debt issuance costs, professional fees, investment advisor expenses, administrative services expense, director fees and miscellaneous other expenses.
Net Investment Income
Net investment income totaled $23.9 million and $65.3 million, or $0.32 per share and $0.89 per share, respectively, for the three and nine months ended September 30, 2012. For the three and nine months ended September 30, 2011, net investment income totaled $21.0 million and $61.6 million, or $0.29 per share and $0.84 per share, respectively. The increase for the current nine month period is primarily a result of a larger overall portfolio due to net new investment activity, partially offset by an increase in base management fees and interest and credit facility related expenses, as well as the accrual of incentive management fees based on hypothetical capital gains.
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