the external investment manager is accounted for as a portfolio investment of mscc , since the external investment manager conducts all of its investment management activities for parties outside of mscc and its consolidated subsidiaries . mscc has elected to be treated for federal income tax purposes as a regulated investment company ( `` ric `` ) under subchapter m of the internal revenue code of 1986 , as amended ( the `` code `` ) . as a result , mscc generally will not pay corporate-level federal income taxes on any net ordinary income or capital gains that it distributes to its stockholders as dividends . mscc has direct and indirect wholly owned subsidiaries that have elected to be taxable entities ( the `` taxable subsidiaries `` ) . the primary purpose of these entities is to hold certain investments that generate 54 `` pass through `` income for tax purposes . the investment managers are both also direct wholly owned subsidiaries that have elected to be taxable entities . the taxable subsidiaries and the investment managers are each taxed at their normal corporate tax rates based on their taxable income . unless otherwise noted or the context otherwise indicates , the terms `` we , `` `` us , `` `` our `` and `` main street `` refer to mscc and its consolidated subsidiaries , which include the funds , the taxable subsidiaries and , beginning april 1 , 2013 , the internal investment manager . overview we are a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ( `` lmm `` ) companies and debt capital to middle market ( `` middle market `` ) companies . our portfolio investments are typically made to support management buyouts , recapitalizations , growth financings , refinancings and acquisitions of companies that operate in diverse industry sectors . we seek to partner with entrepreneurs , business owners and management teams and generally provide `` one stop `` financing alternatives within our lmm portfolio . we invest primarily in secured debt investments , equity investments , warrants and other securities of lmm companies based in the united states and in secured debt investments of middle market companies generally headquartered in the united states . our principal investment objective is to maximize our portfolio 's total return by generating current income from our debt investments and capital appreciation from our equity and equity related investments , including warrants , convertible securities and other rights to acquire equity securities in a portfolio company . our lmm companies generally have annual revenues between $ 10 million and $ 150 million , and our lmm portfolio investments generally range in size from $ 5 million to $ 25 million . our middle market investments are made in businesses that are generally larger in size than our lmm portfolio companies , with annual revenues typically between $ 150 million and $ 1.5 billion , and our middle market investments generally range in size from $ 3 million to $ 15 million . our private loan ( `` private loan `` ) investments are made in businesses that are consistent with the size of companies in our lmm portfolio or our middle market portfolio , but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis . the structure , terms and conditions for these private loan investments are typically consistent with the structure , terms and conditions for the loans made in our lmm portfolio or middle market portfolio . our other portfolio ( `` other portfolio `` ) investments primarily consist of investments which are not consistent with the typical profiles for our lmm , middle market or private loan portfolio investments , including investments which may be managed by third parties . in our other portfolio , we may incur indirect fees and expenses in connection with investments managed by third parties , such as investments in other investment companies or private funds . our external asset management business is conducted through our external investment manager . we have entered into an agreement through the internal investment manager to provide the external investment manager with asset management service support for hms income fund , inc. ( `` hms income `` ) . through this agreement , we provide management and other services to the external investment manager , as well as access to our employees , infrastructure , business relationships , management expertise and capital raising capabilities . beginning in the first quarter of 2014 , we charge the external investment manager a fee for the use of these services . the external investment manager earns management fees based on the assets of the funds under management and may earn incentive fees , or a carried interest , based on the performance of the funds managed . we seek to fill the current financing gap for lmm businesses , which , historically , have had more limited access to financing from commercial banks and other traditional sources . the underserved nature of the lmm creates the opportunity for us to meet the financing needs of lmm companies while also negotiating favorable transaction terms and equity participations . our ability to invest across a company 's capital structure , from senior secured loans to equity securities , allows us to offer portfolio companies a comprehensive suite of financing options , or a `` one stop `` financing solution . providing customized , `` one 55 stop `` financing solutions has become even more relevant to our lmm portfolio companies in the current investing environment . we generally seek to partner directly with entrepreneurs , management teams and business owners in making our investments . our lmm portfolio debt investments are generally secured by a first lien on the assets of the portfolio company and typically have a term of between five and seven years . story_separator_special_tag portfolio investment valuation the most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our investment portfolio and the related amounts of unrealized appreciation and depreciation . as of december 31 , 2013 and 2012 , approximately 95 % and 89 % of our total assets at each date represented our investment portfolio valued at fair value . we are required to report our investments at fair value . we follow the provisions of the financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` codification `` or `` asc `` ) 820 , fair value measurements and disclosures ( `` asc 820 `` ) . asc 820 defines fair value , establishes a framework for measuring fair value , establishes a fair value hierarchy based on the quality of inputs used to measure fair value , and enhances disclosure requirements for fair value measurements . our business strategy calls for us to invest primarily in illiquid debt and equity securities issued by private , lmm companies and debt securities issued by middle market companies that are generally larger in size than the lmm companies . we also categorize some of our investments in lmm companies and middle market companies as private loan portfolio investments , which are typically debt securities issued by companies that are consistent in size with either the lmm companies or middle market companies , but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis . our portfolio also includes other portfolio investments which primarily consist of 59 investments which are not consistent with the typical profiles for our lmm portfolio investments , middle market portfolio investments or private loan portfolio investments , including investments which may be managed by third parties . all of these portfolio investments may be subject to restrictions on resale . lmm investments and other portfolio investments generally have no established trading market while middle market securities generally have established markets that are not active . private loan investments may include investments which have no established trading market or have established markets that are not active . we determine in good faith the fair value of our investment portfolio pursuant to a valuation policy in accordance with asc 820 and a valuation process approved by our board of directors and in accordance with the 1940 act . our valuation policy and process is intended to provide a consistent basis for determining the fair value of our portfolio . for lmm portfolio investments , we generally review external events , including private mergers , sales and acquisitions involving comparable companies , and include these events in the valuation process . for middle market portfolio investments , we primarily use observable inputs such as quoted prices in the valuation process . for middle market portfolio investments for which sufficient observable inputs are not available to determine fair value , we generally use either unobservable inputs through obtaining third party quotes or other independent pricing or an approach similar to the income approach using a yield-to-maturity model used to value our lmm portfolio debt investments . for valuation purposes , `` control `` lmm portfolio investments are composed of debt and equity securities in companies for which we have a controlling interest in the portfolio company or the ability to nominate a majority of the portfolio company 's board of directors . market quotations are generally not readily available for our control lmm portfolio investments . as a result , for control lmm portfolio investments , we generally determine the fair value using a combination of market and income approaches . under the market approach , we will typically use the enterprise value methodology to determine the fair value of these investments . the enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties , other than through a forced or liquidation sale . typically , private companies are bought and sold based on multiples of earnings before interest , taxes , depreciation and amortization , or ebitda , cash flows , net income , revenues , or in limited cases , book value . there is no single methodology for estimating enterprise value . for any one portfolio company , enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived . in estimating the enterprise value of a portfolio company , we analyze various factors , including the portfolio company 's historical and projected financial results . we allocate the enterprise value to investments in order of the legal priority of the various components of the portfolio company 's capital structure . we will also use the income approach to determine the fair value of these securities , based on projections of the discounted future free cash flows that the portfolio company or the debt security will likely generate , and which includes using a yield-to-maturity approach that analyzes the discounted cash flows of interest and principal for the debt security , as set forth in the associated loan agreements , as well as the financial position and credit risk of each of these portfolio investments . the valuation approaches for our control lmm portfolio investments estimate the value of the investment if we were to sell , or exit , the investment . in addition , these valuation approaches consider the value associated with our ability to control the capital structure of the portfolio company , as well as the timing of a potential exit . for valuation purposes , `` non-control `` lmm portfolio investments are generally composed of debt and equity securities in companies for which we do not have a controlling interest in the portfolio company or the ability to nominate a majority of the portfolio company 's board of directors . market quotations are generally not readily available for non-control

liquidity and capital resources cash flows for the year ended december 31 , 2013 , we experienced a net decrease in cash and cash equivalents in the amount of $ 28.8 million . during the period , we used $ 240.7 million of cash for our operating activities , which resulted primarily from ( i ) cash flows we generated from the ordinary operating profits earned through our operating activities totaling $ 63.8 million , which is our $ 79.6 million of distributable net investment income , excluding the non-cash effects of the accretion of unearned income of $ 10.9 million , payment-in-kind interest income of $ 5.0 million , cumulative dividends of $ 1.4 million and the amortization expense for deferred financing costs of $ 1.5 million , ( ii ) cash uses totaling $ 824.8 million from ( a ) the funding of new portfolio company investments and settlement of accruals for portfolio investments existing as of december 31 , 2013 , which together total $ 767.5 million , ( b ) the funding of new marketable securities and idle funds investments and settlement of accruals for marketable securities and idle funds investments existing as of december 31 , 2012 , which together total $ 54.0 million , and ( c ) $ 3.3 million related to decreases in payables and accruals , and ( iii ) cash proceeds totaling $ 520.3 million from ( a ) $ 465.0 million in cash proceeds from the repayments or sales of debt investments and sales of equity investments , ( b ) $ 51.7 million of cash proceeds from the sale of marketable securities and idle funds investments and ( c ) decreases in other assets of $ 3.6 million .


 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 cash flows for the year ended december 31 , 2013 , we experienced a net decrease in cash and cash equivalents in the amount of $ 28.8 million . during the period , we used $ 240.7 million of cash for our operating activities , which resulted primarily from ( i ) cash flows we generated from the ordinary operating profits earned through our operating activities totaling $ 63.8 million , which is our $ 79.6 million of distributable net investment income , excluding the non-cash effects of the accretion of unearned income of $ 10.9 million , payment-in-kind interest income of $ 5.0 million , cumulative dividends of $ 1.4 million and the amortization expense for deferred financing costs of $ 1.5 million , ( ii ) cash uses totaling $ 824.8 million from ( a ) the funding of new portfolio company investments and settlement of accruals for portfolio investments existing as of december 31 , 2013 , which together total $ 767.5 million , ( b ) the funding of new marketable securities and idle funds investments and settlement of accruals for marketable securities and idle funds investments existing as of december 31 , 2012 , which together total $ 54.0 million , and ( c ) $ 3.3 million related to decreases in payables and accruals , and ( iii ) cash proceeds totaling $ 520.3 million from ( a ) $ 465.0 million in cash proceeds from the repayments or sales of debt investments and sales of equity investments , ( b ) $ 51.7 million of cash proceeds from the sale of marketable securities and idle funds investments and ( c ) decreases in other assets of $ 3.6 million .
```    
 Suspicious Activity Report : the external investment manager is accounted for as a portfolio investment of mscc , since the external investment manager conducts all of its investment management activities for parties outside of mscc and its consolidated subsidiaries . mscc has elected to be treated for federal income tax purposes as a regulated investment company ( `` ric `` ) under subchapter m of the internal revenue code of 1986 , as amended ( the `` code `` ) . as a result , mscc generally will not pay corporate-level federal income taxes on any net ordinary income or capital gains that it distributes to its stockholders as dividends . mscc has direct and indirect wholly owned subsidiaries that have elected to be taxable entities ( the `` taxable subsidiaries `` ) . the primary purpose of these entities is to hold certain investments that generate 54 `` pass through `` income for tax purposes . the investment managers are both also direct wholly owned subsidiaries that have elected to be taxable entities . the taxable subsidiaries and the investment managers are each taxed at their normal corporate tax rates based on their taxable income . unless otherwise noted or the context otherwise indicates , the terms `` we , `` `` us , `` `` our `` and `` main street `` refer to mscc and its consolidated subsidiaries , which include the funds , the taxable subsidiaries and , beginning april 1 , 2013 , the internal investment manager . overview we are a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ( `` lmm `` ) companies and debt capital to middle market ( `` middle market `` ) companies . our portfolio investments are typically made to support management buyouts , recapitalizations , growth financings , refinancings and acquisitions of companies that operate in diverse industry sectors . we seek to partner with entrepreneurs , business owners and management teams and generally provide `` one stop `` financing alternatives within our lmm portfolio . we invest primarily in secured debt investments , equity investments , warrants and other securities of lmm companies based in the united states and in secured debt investments of middle market companies generally headquartered in the united states . our principal investment objective is to maximize our portfolio 's total return by generating current income from our debt investments and capital appreciation from our equity and equity related investments , including warrants , convertible securities and other rights to acquire equity securities in a portfolio company . our lmm companies generally have annual revenues between $ 10 million and $ 150 million , and our lmm portfolio investments generally range in size from $ 5 million to $ 25 million . our middle market investments are made in businesses that are generally larger in size than our lmm portfolio companies , with annual revenues typically between $ 150 million and $ 1.5 billion , and our middle market investments generally range in size from $ 3 million to $ 15 million . our private loan ( `` private loan `` ) investments are made in businesses that are consistent with the size of companies in our lmm portfolio or our middle market portfolio , but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis . the structure , terms and conditions for these private loan investments are typically consistent with the structure , terms and conditions for the loans made in our lmm portfolio or middle market portfolio . our other portfolio ( `` other portfolio `` ) investments primarily consist of investments which are not consistent with the typical profiles for our lmm , middle market or private loan portfolio investments , including investments which may be managed by third parties . in our other portfolio , we may incur indirect fees and expenses in connection with investments managed by third parties , such as investments in other investment companies or private funds . our external asset management business is conducted through our external investment manager . we have entered into an agreement through the internal investment manager to provide the external investment manager with asset management service support for hms income fund , inc. ( `` hms income `` ) . through this agreement , we provide management and other services to the external investment manager , as well as access to our employees , infrastructure , business relationships , management expertise and capital raising capabilities . beginning in the first quarter of 2014 , we charge the external investment manager a fee for the use of these services . the external investment manager earns management fees based on the assets of the funds under management and may earn incentive fees , or a carried interest , based on the performance of the funds managed . we seek to fill the current financing gap for lmm businesses , which , historically , have had more limited access to financing from commercial banks and other traditional sources . the underserved nature of the lmm creates the opportunity for us to meet the financing needs of lmm companies while also negotiating favorable transaction terms and equity participations . our ability to invest across a company 's capital structure , from senior secured loans to equity securities , allows us to offer portfolio companies a comprehensive suite of financing options , or a `` one stop `` financing solution . providing customized , `` one 55 stop `` financing solutions has become even more relevant to our lmm portfolio companies in the current investing environment . we generally seek to partner directly with entrepreneurs , management teams and business owners in making our investments . our lmm portfolio debt investments are generally secured by a first lien on the assets of the portfolio company and typically have a term of between five and seven years . story_separator_special_tag portfolio investment valuation the most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our investment portfolio and the related amounts of unrealized appreciation and depreciation . as of december 31 , 2013 and 2012 , approximately 95 % and 89 % of our total assets at each date represented our investment portfolio valued at fair value . we are required to report our investments at fair value . we follow the provisions of the financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` codification `` or `` asc `` ) 820 , fair value measurements and disclosures ( `` asc 820 `` ) . asc 820 defines fair value , establishes a framework for measuring fair value , establishes a fair value hierarchy based on the quality of inputs used to measure fair value , and enhances disclosure requirements for fair value measurements . our business strategy calls for us to invest primarily in illiquid debt and equity securities issued by private , lmm companies and debt securities issued by middle market companies that are generally larger in size than the lmm companies . we also categorize some of our investments in lmm companies and middle market companies as private loan portfolio investments , which are typically debt securities issued by companies that are consistent in size with either the lmm companies or middle market companies , but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis . our portfolio also includes other portfolio investments which primarily consist of 59 investments which are not consistent with the typical profiles for our lmm portfolio investments , middle market portfolio investments or private loan portfolio investments , including investments which may be managed by third parties . all of these portfolio investments may be subject to restrictions on resale . lmm investments and other portfolio investments generally have no established trading market while middle market securities generally have established markets that are not active . private loan investments may include investments which have no established trading market or have established markets that are not active . we determine in good faith the fair value of our investment portfolio pursuant to a valuation policy in accordance with asc 820 and a valuation process approved by our board of directors and in accordance with the 1940 act . our valuation policy and process is intended to provide a consistent basis for determining the fair value of our portfolio . for lmm portfolio investments , we generally review external events , including private mergers , sales and acquisitions involving comparable companies , and include these events in the valuation process . for middle market portfolio investments , we primarily use observable inputs such as quoted prices in the valuation process . for middle market portfolio investments for which sufficient observable inputs are not available to determine fair value , we generally use either unobservable inputs through obtaining third party quotes or other independent pricing or an approach similar to the income approach using a yield-to-maturity model used to value our lmm portfolio debt investments . for valuation purposes , `` control `` lmm portfolio investments are composed of debt and equity securities in companies for which we have a controlling interest in the portfolio company or the ability to nominate a majority of the portfolio company 's board of directors . market quotations are generally not readily available for our control lmm portfolio investments . as a result , for control lmm portfolio investments , we generally determine the fair value using a combination of market and income approaches . under the market approach , we will typically use the enterprise value methodology to determine the fair value of these investments . the enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties , other than through a forced or liquidation sale . typically , private companies are bought and sold based on multiples of earnings before interest , taxes , depreciation and amortization , or ebitda , cash flows , net income , revenues , or in limited cases , book value . there is no single methodology for estimating enterprise value . for any one portfolio company , enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived . in estimating the enterprise value of a portfolio company , we analyze various factors , including the portfolio company 's historical and projected financial results . we allocate the enterprise value to investments in order of the legal priority of the various components of the portfolio company 's capital structure . we will also use the income approach to determine the fair value of these securities , based on projections of the discounted future free cash flows that the portfolio company or the debt security will likely generate , and which includes using a yield-to-maturity approach that analyzes the discounted cash flows of interest and principal for the debt security , as set forth in the associated loan agreements , as well as the financial position and credit risk of each of these portfolio investments . the valuation approaches for our control lmm portfolio investments estimate the value of the investment if we were to sell , or exit , the investment . in addition , these valuation approaches consider the value associated with our ability to control the capital structure of the portfolio company , as well as the timing of a potential exit . for valuation purposes , `` non-control `` lmm portfolio investments are generally composed of debt and equity securities in companies for which we do not have a controlling interest in the portfolio company or the ability to nominate a majority of the portfolio company 's board of directors . market quotations are generally not readily available for non-control

