Almost all of that gap is fund-level leverage, and the rest is fee income the coupon line doesn't capture. Look for a credit facility, a repurchase facility, or note-on-note financing in the liabilities section of the audited financials and in the borrowing limits in the investment guidelines. Typical structure is a bank or investment bank advancing 50% to 65% against the fund's loan portfolio at a floating spread over SOFR.
Rough model on your numbers. Say the fund runs 1.5 turns of assets to equity, so $100 of equity carries $150 of loans yielding 8.9%, that's $13.35 of income. The $50 borrowed at, say, 6.5% costs $3.25. Net $10.10 on $100 of equity, or 10.1% before fees. Add origination points and exit fees, which on a book with an 18-month average life can add 75 to 150 basis points of realized yield that never shows up in a coupon figure, and you're comfortably at their target before fees, and near it after. So the disclosure isn't necessarily wrong, it's just incomplete for your purpose.
The number you actually need is the advance rate and the mark-to-market provisions on that facility. A repo line with mark-to-market and a lender-side valuation right can margin call the fund in a soft quarter, forcing loan sales into a bad bid. Advance rates also reset at renewal. At those 1.5 turns, a 5% loss on the $150 loan book is $7.50 against $100 of equity, a 7.5% hit to LP equity, and the incentive fee gets computed on the way up either way.
Ask whether the origination points are retained by the fund or by the manager as a separate origination entity. That answer changes the alignment materially, and it belongs in writing.
