the company may make additional capital contributions to the fund . the fund provides financing and advisory services to a variety of carefully selected venture-backed companies primarily throughout the united states , with a focus on growth oriented companies . the fund 's portfolio consists of companies in the communications , information services , media , technology ( including software and technology-enabled business services ) , biotechnology , and medical devices industry sectors , among others . the fund 's capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital . on december 18 , 2012 , the company completed its first closing of capital contributions and the fund made its first investment and became a non-diversified , closed-end investment company that elected to be treated as a bdc under the 1940 act . while the fund intends to operate as a non-diversified investment company within the meaning of section 5 ( b ) ( 2 ) of the 1940 act , from time to time the fund may act as a diversified investment company within the meaning of section 5 ( b ) ( 1 ) of the 1940 act . the fund elected to be treated for federal income tax purposes as a ric under the code with the filing of its federal corporate income tax return for 2013. pursuant to this election , the fund generally will not have to pay corporate-level taxes on any income distributed to its shareholder as dividends , allowing the company to substantially reduce or eliminate its corporate-level tax liability . the fund will seek to meet the ongoing requirements , including the diversification requirements , to qualify as a ric under the code . if the fund fails to meet these requirements , it will be taxed as an ordinary corporation on its taxable income for that year ( even if that income is distributed to the company ) and all distributions out of its earnings and profits will be taxable to the members of the company as ordinary income ; thus , such income will be subject to a double layer of tax . there is no assurance that the fund will meet the ongoing requirements to qualify as a ric for tax purposes . the fund 's investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies , most of which are private . the fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt , or soon thereafter . the fund also has guidelines for the percentages of total assets that are invested in different types of assets . the portfolio investments of the fund primarily consist of debt financing to venture-backed companies in the technology sector . the borrower 's ability to repay its loans may be adversely impacted by several factors , and as a result , the loan may not be fully repaid . furthermore , the fund 's security interest in any collateral over the borrower 's assets may be insufficient to make up any shortfall in payments . critical accounting policies , practices and estimates critical accounting policies and practices are those accounting policies and practices that are both the most important to the portrayal of the fund 's net assets and results of operations and require the most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . critical accounting estimates are accounting estimates where the nature of the estimates is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and the impact of the estimates on net assets or operating performance is material . in evaluating the most critical accounting policies and estimates , the manager has identified the estimation of fair value of the fund 's loan investments as the most critical of the accounting policies and accounting estimates applied to the fund 's reporting of net assets or operating performance . in accordance with u.s. gaap , the fund defines fair value as 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 ; that is , an exit price . the exit price assumes the asset or liability was exchanged in an orderly transaction ; it was not a forced liquidation or distressed sale . there is no readily available market price or secondary market for the loans made by the fund to borrowers , hence the manager determines fair value based on a hypothetical market and the estimates are subject to high levels of judgment and uncertainty . the fund 's loan investments are considered level 3 fair value measurements in the fair value hierarchy due to the lack of observability over many of the important inputs used in determining fair value . critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount of future cash flows and probability of future payments , based on the assessment of payment history , available cash and “ burn rate , ” revenues , net income or loss , operating results , financial strength of borrower , prospects for the borrower 's raising future equity rounds , likelihood of sale or acquisition of the borrower , length of expected holding period of the loan , collateral position , the timing and amount of liquidation of collateralfor loans that are experiencing significant credit deterioration and , as a result , collection becomes collateral-dependent , as well as an evaluation of the general interest rate environment . story_separator_special_tag management has evaluated these factors and has concluded that the effect of a deterioration in the quality of the underlying collateral , increase in the size of the loan , increase in the estimated time to recovery , and increase in the hypothetical market coupon rate would have the effect of decreasing the fair value of loan investments . the risk profile of a loan changes when events occur that impact the credit analysis of the borrower and the loan . such changes result in the fair value being adjusted from par value of the individual loan . where the risk profile is consistent with the original underwriting , the par value of the loan often approximates fair value . 19 the actual value of the loans may differ from management 's estimates , which would affect net change in net assets resulting from operations as well as assets . results of operations – for the years ended december 31 , 2019 and 2018 the fund commenced investment operation on december 18 , 2012 . for the most recent discussion on the results of operations for the year ended december 31 , 2017 , refer to the management discussion and analysis on the annual report , form 10-k , filed on march 14 , 2019 . total investment income for the years ended december 31 , 2019 and 2018 was $ 22.5 million and $ 49.0 million , respectively , which primarily consisted of interest on the venture loans outstanding . the remaining income consisted of interest and dividends on the temporary investment of cash , and other income from commitment fees and warrants . total investment income decreased through the years primarily due to the decrease in average outstanding balance of performing loans calculated on a monthly basis of $ 124.4 million and $ 274.5 million for the years ended december 31 , 2019 and 2018 , respectively . the weighted-average interest rate on performing loans was 17.76 % and 17.61 % for the same periods , respectively . also for the same periods , the weighted-average interest rate on all loans was 16.00 % and 17.06 % respectively . interest is calculated using the effective interest method , and rates earned by the fund will fluctuate based on many factors including early payoffs , volatility of values ascribed to warrants , and new loans funded during the year . expenses for the years ended december 31 , 2019 and 2018 , were $ 6.6 million and $ 14.0 million , respectively . management fees for the fund were $ 3.1 million and $ 7.0 million for the years ended december 31 , 2019 and 2018 , respectively . management fees were calculated as 2.5 % of the fund 's total assets and decreased in 2019 due to a decrease in the fund 's total assets . interest expense for the years ended december 31 , 2019 and 2018 was $ 2.8 million and $ 6.2 million , respectively . interest expense was comprised of amounts related to interest on debt amounts drawn down , unused credit line fees and amounts amortized from deferred fees incurred in conjunction with the loan facility . interest expense decreased in 2019 primarily due to the reduction in average debt outstanding from $ 117.4 million in 2018 to $ 47.5 million in 2019. banking and professional fees were $ 0.5 million and $ 0.6 million for the years ended december 31 , 2019 and 2018 , respectively . the banking and professional fees were comprised of legal , audit , banking and other professional fees . the banking and professional fees decreased slightly for 2019 due to decreased in legal fees , which were commensurate with the decrease in the fund 's investment activities . other operating expenses were $ 0.2 million and $ 0.2 million for the years ended december 31 , 2019 and 2018 , respectively . these expenses included director fees , custody fees , tax fees and other expenses related to the operations of the fund . the other operating expenses decreased slightly for 2019 was primarily due to a decrease in expenses related to collection costs on certain non-accrual loans . net investment income for the years ended december 31 , 2019 and 2018 , was $ 15.9 million and $ 35.0 million , respectively . net realized loss from loans was $ 13.2 million $ 8.2 million for the years ended december 31 , 2019 and 2018 , respectively . the primary reason for the increase in 2019 was due to several loan write offs during the year . net realized gain ( loss ) from derivative instruments was $ 0.2 million and less than $ ( 0.1 ) million for the years ended december 31 , 2019 and 2018 , respectively . the gain in 2019 was due to the rising interest rate environment in the first half of the year , which led to the receipt of interest payments from the derivative instrument , but was offset by interest paid on the derivative instrument in the final quarter of the year as interest rates started to decline . net change in unrealized gain ( loss ) from loans was $ 4.6 million and $ 2.0 million for the years ended december 31 , 2019 and 2018 , respectively . the net change in unrealized gain consisted of fair value adjustments to loans and the reversal of fair value adjustments previously taken against loans written off . net change in unrealized gain ( loss ) from derivative instruments was $ ( 0.4 ) million and $ 0.4 million for the years ended december 31 , 2019 and 2018 , respectively . the net change in unrealized gain and loss from derivative instruments consisted of fair market value adjustments to the derivative interest rate cap or swap . the decrease in 2019 was primarily due to the change in expectations of libor interest rates during the year

liquidity and capital resources -- december 31 , 2019 and 2018 for the most recent discussion on the liquidity and capital resources for the year ended december 31 , 2017 , refer to the management discussion and analysis on the annual report , form 10-k , filed on march 14 , 2019 . the fund is owned entirely by the company . as of both december 31 , 2019 and 2018 , the company had subscriptions for capital in the amount of $ 375.0 million , of which all had been called and received as of both periods . total capital contributed to the fund was $ 323.2 million and $ 322.6 million as of december 31 , 2019 and 2018 , respectively . effective june 30 , 2017 , the fund was no longer permitted to enter new commitments to borrowers ; however , the fund was permitted to fund existing commitments . the fund 's last commitment expired on july 31 , 2018 . the change in cash held by the funds for the years ended december 31 , 2019 and 2018 was as follows : replace_table_token_1_th as of december 31 , 2019 and 2018 , 0.50 % and 2.22 % , respectively , of the fund 's net assets consisted of cash and cash equivalents .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources -- december 31 , 2019 and 2018 for the most recent discussion on the liquidity and capital resources for the year ended december 31 , 2017 , refer to the management discussion and analysis on the annual report , form 10-k , filed on march 14 , 2019 . the fund is owned entirely by the company . as of both december 31 , 2019 and 2018 , the company had subscriptions for capital in the amount of $ 375.0 million , of which all had been called and received as of both periods . total capital contributed to the fund was $ 323.2 million and $ 322.6 million as of december 31 , 2019 and 2018 , respectively . effective june 30 , 2017 , the fund was no longer permitted to enter new commitments to borrowers ; however , the fund was permitted to fund existing commitments . the fund 's last commitment expired on july 31 , 2018 . the change in cash held by the funds for the years ended december 31 , 2019 and 2018 was as follows : replace_table_token_1_th as of december 31 , 2019 and 2018 , 0.50 % and 2.22 % , respectively , of the fund 's net assets consisted of cash and cash equivalents .
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 Suspicious Activity Report : the company may make additional capital contributions to the fund . the fund provides financing and advisory services to a variety of carefully selected venture-backed companies primarily throughout the united states , with a focus on growth oriented companies . the fund 's portfolio consists of companies in the communications , information services , media , technology ( including software and technology-enabled business services ) , biotechnology , and medical devices industry sectors , among others . the fund 's capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital . on december 18 , 2012 , the company completed its first closing of capital contributions and the fund made its first investment and became a non-diversified , closed-end investment company that elected to be treated as a bdc under the 1940 act . while the fund intends to operate as a non-diversified investment company within the meaning of section 5 ( b ) ( 2 ) of the 1940 act , from time to time the fund may act as a diversified investment company within the meaning of section 5 ( b ) ( 1 ) of the 1940 act . the fund elected to be treated for federal income tax purposes as a ric under the code with the filing of its federal corporate income tax return for 2013. pursuant to this election , the fund generally will not have to pay corporate-level taxes on any income distributed to its shareholder as dividends , allowing the company to substantially reduce or eliminate its corporate-level tax liability . the fund will seek to meet the ongoing requirements , including the diversification requirements , to qualify as a ric under the code . if the fund fails to meet these requirements , it will be taxed as an ordinary corporation on its taxable income for that year ( even if that income is distributed to the company ) and all distributions out of its earnings and profits will be taxable to the members of the company as ordinary income ; thus , such income will be subject to a double layer of tax . there is no assurance that the fund will meet the ongoing requirements to qualify as a ric for tax purposes . the fund 's investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies , most of which are private . the fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt , or soon thereafter . the fund also has guidelines for the percentages of total assets that are invested in different types of assets . the portfolio investments of the fund primarily consist of debt financing to venture-backed companies in the technology sector . the borrower 's ability to repay its loans may be adversely impacted by several factors , and as a result , the loan may not be fully repaid . furthermore , the fund 's security interest in any collateral over the borrower 's assets may be insufficient to make up any shortfall in payments . critical accounting policies , practices and estimates critical accounting policies and practices are those accounting policies and practices that are both the most important to the portrayal of the fund 's net assets and results of operations and require the most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . critical accounting estimates are accounting estimates where the nature of the estimates is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and the impact of the estimates on net assets or operating performance is material . in evaluating the most critical accounting policies and estimates , the manager has identified the estimation of fair value of the fund 's loan investments as the most critical of the accounting policies and accounting estimates applied to the fund 's reporting of net assets or operating performance . in accordance with u.s. gaap , the fund defines fair value as 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 ; that is , an exit price . the exit price assumes the asset or liability was exchanged in an orderly transaction ; it was not a forced liquidation or distressed sale . there is no readily available market price or secondary market for the loans made by the fund to borrowers , hence the manager determines fair value based on a hypothetical market and the estimates are subject to high levels of judgment and uncertainty . the fund 's loan investments are considered level 3 fair value measurements in the fair value hierarchy due to the lack of observability over many of the important inputs used in determining fair value . critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount of future cash flows and probability of future payments , based on the assessment of payment history , available cash and “ burn rate , ” revenues , net income or loss , operating results , financial strength of borrower , prospects for the borrower 's raising future equity rounds , likelihood of sale or acquisition of the borrower , length of expected holding period of the loan , collateral position , the timing and amount of liquidation of collateralfor loans that are experiencing significant credit deterioration and , as a result , collection becomes collateral-dependent , as well as an evaluation of the general interest rate environment . story_separator_special_tag management has evaluated these factors and has concluded that the effect of a deterioration in the quality of the underlying collateral , increase in the size of the loan , increase in the estimated time to recovery , and increase in the hypothetical market coupon rate would have the effect of decreasing the fair value of loan investments . the risk profile of a loan changes when events occur that impact the credit analysis of the borrower and the loan . such changes result in the fair value being adjusted from par value of the individual loan . where the risk profile is consistent with the original underwriting , the par value of the loan often approximates fair value . 19 the actual value of the loans may differ from management 's estimates , which would affect net change in net assets resulting from operations as well as assets . results of operations – for the years ended december 31 , 2019 and 2018 the fund commenced investment operation on december 18 , 2012 . for the most recent discussion on the results of operations for the year ended december 31 , 2017 , refer to the management discussion and analysis on the annual report , form 10-k , filed on march 14 , 2019 . total investment income for the years ended december 31 , 2019 and 2018 was $ 22.5 million and $ 49.0 million , respectively , which primarily consisted of interest on the venture loans outstanding . the remaining income consisted of interest and dividends on the temporary investment of cash , and other income from commitment fees and warrants . total investment income decreased through the years primarily due to the decrease in average outstanding balance of performing loans calculated on a monthly basis of $ 124.4 million and $ 274.5 million for the years ended december 31 , 2019 and 2018 , respectively . the weighted-average interest rate on performing loans was 17.76 % and 17.61 % for the same periods , respectively . also for the same periods , the weighted-average interest rate on all loans was 16.00 % and 17.06 % respectively . interest is calculated using the effective interest method , and rates earned by the fund will fluctuate based on many factors including early payoffs , volatility of values ascribed to warrants , and new loans funded during the year . expenses for the years ended december 31 , 2019 and 2018 , were $ 6.6 million and $ 14.0 million , respectively . management fees for the fund were $ 3.1 million and $ 7.0 million for the years ended december 31 , 2019 and 2018 , respectively . management fees were calculated as 2.5 % of the fund 's total assets and decreased in 2019 due to a decrease in the fund 's total assets . interest expense for the years ended december 31 , 2019 and 2018 was $ 2.8 million and $ 6.2 million , respectively . interest expense was comprised of amounts related to interest on debt amounts drawn down , unused credit line fees and amounts amortized from deferred fees incurred in conjunction with the loan facility . interest expense decreased in 2019 primarily due to the reduction in average debt outstanding from $ 117.4 million in 2018 to $ 47.5 million in 2019. banking and professional fees were $ 0.5 million and $ 0.6 million for the years ended december 31 , 2019 and 2018 , respectively . the banking and professional fees were comprised of legal , audit , banking and other professional fees . the banking and professional fees decreased slightly for 2019 due to decreased in legal fees , which were commensurate with the decrease in the fund 's investment activities . other operating expenses were $ 0.2 million and $ 0.2 million for the years ended december 31 , 2019 and 2018 , respectively . these expenses included director fees , custody fees , tax fees and other expenses related to the operations of the fund . the other operating expenses decreased slightly for 2019 was primarily due to a decrease in expenses related to collection costs on certain non-accrual loans . net investment income for the years ended december 31 , 2019 and 2018 , was $ 15.9 million and $ 35.0 million , respectively . net realized loss from loans was $ 13.2 million $ 8.2 million for the years ended december 31 , 2019 and 2018 , respectively . the primary reason for the increase in 2019 was due to several loan write offs during the year . net realized gain ( loss ) from derivative instruments was $ 0.2 million and less than $ ( 0.1 ) million for the years ended december 31 , 2019 and 2018 , respectively . the gain in 2019 was due to the rising interest rate environment in the first half of the year , which led to the receipt of interest payments from the derivative instrument , but was offset by interest paid on the derivative instrument in the final quarter of the year as interest rates started to decline . net change in unrealized gain ( loss ) from loans was $ 4.6 million and $ 2.0 million for the years ended december 31 , 2019 and 2018 , respectively . the net change in unrealized gain consisted of fair value adjustments to loans and the reversal of fair value adjustments previously taken against loans written off . net change in unrealized gain ( loss ) from derivative instruments was $ ( 0.4 ) million and $ 0.4 million for the years ended december 31 , 2019 and 2018 , respectively . the net change in unrealized gain and loss from derivative instruments consisted of fair market value adjustments to the derivative interest rate cap or swap . the decrease in 2019 was primarily due to the change in expectations of libor interest rates during the year

