Operating expenses totaled $2.8 million, including $1.8 million of investment management fees, $0.6 million of interest expense and $0.4 million of other operating expenses. Interest expense included $0.1 million of amortization of debt offering costs.
The Company’s net investment loss totaled $1.1 million and included a current income tax benefit of $0.2 million and a deferred income tax benefit of $0.5 million.
The Company had net realized gains from investments of $4.7 million, after taking into account a deferred income tax expense of $2.5 million and a current income tax expense of $0.3 million.
The Company had a net increase in unrealized gains of $15.6 million. The net increase consisted of $24.8 million of unrealized gains from investments and a deferred income tax expense of $9.2 million.
The Company had an increase in net assets resulting from operations of $19.2 million. This increase was comprised of net investment loss of $1.1 million, net realized gains of $4.7 million, and net unrealized gains of $15.6 million, as noted above.
NET ASSET VALUE
As of August 31, 2013, the Company’s net asset value was $290.8 million or $27.84 per share.
As of August 31, 2013, the Company had long-term investments of $433.2 million, of which approximately 86% were public MLPs and other public equity securities, 10% were private MLPs and other private equity securities and 4% were debt securities. The Company’s long-term investments consisted of 52 portfolio companies.
UPDATES ON PRIVATE PORTFOLIO COMPANIES
Updates on the Company’s private portfolio companies are available on the Company’s website at
LIQUIDITY AND CAPITAL RESOURCES
As of October 24, 2013, the Company had $89.0 million of borrowings under its credit facility (at an interest rate of 2.27%), which represented 46.9% of its borrowing base of $189.8 million (47.0% of its borrowing base attributable to quoted securities). At the same date, the Company’s asset coverage ratio under the Investment Company Act of 1940 was 444%. The maximum amount that the Company can borrow under its credit facility is limited to the lesser of the commitment amount of $95.0 million and its borrowing base.