| Investments Measured at Fair Value by Investment Type on Recurring Basis |
The Company’s investments measured at fair value by investment type on a recurring basis as of December 31, 2025 and December 31, 2024 were as follows:
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Fair Value Measurements at December 31, 2025 Using |
|
Investment Type |
|
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
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|
Significant
Unobservable
Inputs
(Level 3) |
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|
Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
292,719,497 |
|
|
$ |
292,719,497 |
|
Senior Secured Notes |
|
|
- |
|
|
|
- |
|
|
|
37,473,499 |
|
|
|
37,473,499 |
|
Second Lien Senior Secured Loans |
|
|
- |
|
|
|
- |
|
|
|
1,447,186 |
|
|
|
1,447,186 |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
1,171,605 |
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|
|
1,171,605 |
|
Preferred Stock |
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- |
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- |
|
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|
500,000 |
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|
500,000 |
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Total |
|
$ |
- |
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$ |
- |
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|
$ |
333,311,787 |
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$ |
333,311,787 |
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Fair Value Measurements at December 31, 2024 Using |
|
Investment Type |
|
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
239,860,206 |
|
|
$ |
239,860,206 |
|
Senior Secured Notes |
|
|
- |
|
|
|
- |
|
|
|
34,656,192 |
|
|
|
34,656,192 |
|
Preferred Stock |
|
|
- |
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|
- |
|
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|
500,000 |
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|
500,000 |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
225,000 |
|
|
|
225,000 |
|
Total |
|
$ |
- |
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|
$ |
- |
|
|
$ |
275,241,398 |
|
|
$ |
275,241,398 |
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| Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments |
The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of December 31, 2025 and December 31, 2024. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount rate ranges are shown as spread over the U.S. Prime Rate ("PRIME"), Secured Overnight Financing Rate ("SOFR") and/or U.S. Treasury Rates, as applicable, for senior secured first lien term loans, as of December 31, 2025 and December 31, 2024.
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Investment Type |
|
Fair Value
as of
December 31,
2025 |
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|
Valuation
Techniques/
Methodologies |
|
Unobservable
Input |
|
Range |
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
249,770,789 |
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Discounted Cash Flow |
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Discount Rate |
|
8.40% - 23.25% |
|
|
12.81 |
% |
First Lien Senior Secured Loans |
|
|
42,948,708 |
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|
Recent Transaction |
|
N/A |
|
N/A |
|
N/A |
|
Senior Secured Notes |
|
|
37,473,499 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
5.87% - 18.23% |
|
|
10.66 |
% |
Second Lien Senior Secured Loans |
|
|
1,447,186 |
|
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Discounted Cash Flow |
|
Discount Rate |
|
18.39% - 20.39% |
|
|
19.64 |
% |
Warrants |
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|
826,250 |
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Enterprise Value |
|
Revenue Multiple |
|
1.75x - 5.25x |
|
4.52x |
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Preferred Stock |
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|
500,000 |
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Market Approach |
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Current Value |
|
1.75x |
|
1.75x |
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Warrants |
|
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345,355 |
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Option Pricing Model |
|
Volatility Factor |
|
49.00% - 72.00% |
|
|
51.51 |
% |
Total |
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$ |
333,311,787 |
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Investment Type |
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Fair Value
as of
December 31,
2024 |
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|
Valuation
Techniques/
Methodologies |
|
Unobservable
Input |
|
Range |
|
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
239,860,206 |
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Discounted Cash Flow |
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Discount Rate |
|
9.10% - 28.60% |
|
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|
13.38 |
% |
Senior Secured Notes |
|
|
34,656,192 |
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Discounted Cash Flow |
|
Discount Rate |
|
7.40% - 17.20% |
|
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|
11.53 |
% |
Preferred Stock |
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|
500,000 |
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Market Approach |
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Current Value |
|
2.5x |
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|
2.5x |
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Warrants |
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|
225,000 |
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Option Pricing Model |
|
Volatility Factor |
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|
47.20 |
% |
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|
47.20 |
% |
Total |
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$ |
275,241,398 |
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(1)The weighted average is calculated based on the fair value of each investment.
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| Changes in Fair Value of Level 3 Portfolio Investments |
The following tables provide a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the year ended December 31, 2025 and 2024:
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First Lien
Senior Secured
Loans |
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Senior
Secured Notes |
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Second Lien Senior Secured Loans |
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Preferred
Stock |
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Warrants |
|
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Total |
|
Fair Value as of December 31, 2024 |
|
$ |
239,860,206 |
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|
$ |
34,656,192 |
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$ |
- |
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|
$ |
500,000 |
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$ |
225,000 |
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$ |
275,241,398 |
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Purchases |
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151,528,892 |
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|
3,600,000 |
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- |
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- |
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|
1,090,610 |
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|
156,219,502 |
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Accretion of discount and fees (amortization
of premium), net |
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2,323,787 |
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|
368,422 |
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|
8,655 |
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- |
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- |
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|
2,700,864 |
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PIK interest |
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2,290,897 |
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|
240,912 |
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|
27,082 |
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|
- |
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- |
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|
2,558,891 |
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Proceeds from sales of investments and
principal repayments |
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(100,272,803 |
) |
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(1,745,795 |
) |
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(1,598,200 |
) |
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|
- |
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|
- |
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(103,616,798 |
) |
Net realized gain (loss) on investments |
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|
- |
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|
- |
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- |
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|
- |
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|
- |
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|
- |
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Net change in unrealized appreciation
(depreciation) on investments |
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|
15,404 |
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|
353,768 |
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(17,237 |
) |
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|
- |
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(144,005 |
) |
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|
207,930 |
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Transfers between investment types |
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|
(3,026,886 |
) |
|
|
- |
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|
3,026,886 |
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|
- |
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|
|
- |
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|
|
- |
|
Balance as of December 31, 2025 |
|
$ |
292,719,497 |
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|
$ |
37,473,499 |
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$ |
1,447,186 |
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$ |
500,000 |
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$ |
1,171,605 |
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$ |
333,311,787 |
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Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
December 31, 2025 |
|
$ |
(163,816 |
) |
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$ |
353,768 |
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$ |
(23,342 |
) |
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$ |
- |
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|
$ |
(144,005 |
) |
|
$ |
22,605 |
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First Lien
Senior
Secured
Loans |
|
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Senior
Secured
Notes |
|
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Preferred
Stock |
|
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Warrants |
|
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Total |
|
Fair Value as of December 31, 2023 |
|
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46,006,000 |
|
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$ |
8,114,000 |
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$ |
- |
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$ |
- |
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$ |
54,120,000 |
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Purchases |
|
|
209,436,202 |
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30,336,610 |
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500,000 |
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|
242,826 |
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|
240,515,638 |
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Accretion of discount and fees
(amortization of premium), net |
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|
836,005 |
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|
|
265,290 |
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|
|
- |
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|
- |
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|
|
1,101,295 |
|
PIK interest |
|
|
679,962 |
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|
63,813 |
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|
|
- |
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|
- |
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|
|
743,775 |
|
Proceeds from sales of investments and
principal repayments |
|
|
(17,288,331 |
) |
|
|
(4,122,500 |
) |
|
|
- |
|
|
|
- |
|
|
|
(21,410,831 |
) |
Net realized gain (loss) on investments |
|
|
- |
|
|
|
(74,483 |
) |
|
|
- |
|
|
|
- |
|
|
|
(74,483 |
) |
Net change in unrealized appreciation
(depreciation) on investments |
|
|
190,368 |
|
|
|
73,462 |
|
|
|
- |
|
|
|
(17,826 |
) |
|
|
246,004 |
|
Balance as of December 31, 2024 |
|
$ |
239,860,206 |
|
|
$ |
34,656,192 |
|
|
$ |
500,000 |
|
|
$ |
225,000 |
|
|
$ |
275,241,398 |
|
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|
|
|
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|
|
|
|
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|
Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
December 31, 2024 |
|
$ |
190,368 |
|
|
$ |
73,462 |
|
|
$ |
- |
|
|
$ |
(17,826 |
) |
|
$ |
246,004 |
|
|