v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5. Fair Value Measurements

 

The Company’s investments were categorized in the fair value hierarchy described in Note 2 – Significant Accounting Policies.

 

The Company’s investments measured at fair value by investment type on a recurring basis as of March 31, 2025 were as follows:

 

                       
    March 31, 2025  
    Level 1     Level 2     Level 3     Total  
First lien senior secured term loans   $ -     $ -     $ 50,344,414     $ 50,344,414  
Warrants     -       -       3,961,525       3,961,525  
Total investments before cash equivalents   $ -     $ -     $ 54,305,939     $ 54,305,939  
Money market treasury fund     9,100,978       -       -       9,100,978  
Total investments after cash equivalents   $ 9,100,978     $ -     $ 54,305,939     $ 63,406,917  

 

 

The following tables provide a reconciliation of the beginning and ending balances for investments for which fair value was determined using Level 3 inputs for the period from the Commencement of Operations through March 31, 2025:

 

                       
   

For the period from the Commencement of Operations through
March 31, 2025

  
    First Lien
Senior Secured
Term Loans		     Warrants     Total  
Total fair value of investments in portfolio companies at Commencement of Operations   $ -     $ -     $ -  
Investments in portfolio companies acquired from Legacy Fund   $ 38,604,265     $ 2,808,033     $ 41,412,298  
Purchases of investments in portfolio companies     11,835,199       1,164,801       13,000,000  
Paid-in-kind interest income     1,516       -       1,516  
Proceeds from loan repayments on investments in portfolio companies     (109,375 )     -       (109,375 )
Proceeds from deferred loan fees     (162,500 )     -       (162,500 )
Amortization of deferred loan fees     35,935       -       35,935  
Accretion of warrant discount     139,374       -       139,374  
Net change in unrealized gain (loss)     -       (11,309 )     (11,309 )
Total fair value of investments in portfolio companies at March 31, 2025   $ 50,344,414     $ 3,961,525     $ 54,305,939  

 

There were no transfers into or out of Level 3 of the fair value hierarchy during the period from the Commencement of Operations through March 31, 2025.

 

                         
   

Fair Value
as of
March 31,

2025

     Valuation
Techniques/ Methodologies		   Unobservable
Input		   Range (Weighted Average)1     Impact to
Valuation
from an
Increase in
Input2
First lien senior secured term loans   $ 46,368,634     Discounted cash flow   Discount rate   14.1% - 30.1% (19.4%)     Decrease
      3,975,780     Recent transaction   Transaction price   N/A     N/A
Warrants     1,201,716     Black Scholes Option Pricing Model   Volatility  

60% - 75% (66.7%)

     Increase
            Black Scholes Option Pricing Model   Estimated time to exit (in years)  

2.5 - 4.0 (2.99)

     Decrease
            Black Scholes Option Pricing Model   Revenue Multiples  

0.96 - 5.35 (2.94)

     Increase
      2,759,809     Market Approach   Revenue Multiples  

1.57 - 3.13 (2.23)

     Increase
Total   $ 54,305,939                    

 

 
1 The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.
2 This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.