| Summary by Major Security Type of Fair Valuation According to Inputs Used in Valuing Investments |
The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
201,253 |
|
|
$ |
201,253 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
7,262 |
|
|
|
7,262 |
|
Cash equivalents |
|
|
4,426 |
|
|
|
— |
|
|
|
— |
|
|
|
4,426 |
|
Total |
|
$ |
4,426 |
|
|
$ |
— |
|
|
$ |
208,515 |
|
|
$ |
212,941 |
|
The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
150,147 |
|
|
$ |
150,147 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
35 |
|
Cash equivalents |
|
|
8,759 |
|
|
|
— |
|
|
|
— |
|
|
|
8,759 |
|
Total |
|
$ |
8,759 |
|
|
$ |
— |
|
|
$ |
150,182 |
|
|
$ |
158,941 |
|
|
| Summary of Reconciliation of Balances for Total Investments |
The following tables provide a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the year ended December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
Equity |
|
|
Total |
|
Balance, January 1, 2025 |
|
$ |
150,147 |
|
|
$ |
35 |
|
|
$ |
150,182 |
|
Purchases |
|
|
99,345 |
|
|
|
3,245 |
|
|
|
102,590 |
|
Sales and paydowns of investments |
|
|
(45,289 |
) |
|
|
(51 |
) |
|
|
(45,340 |
) |
Amortization of premium and accretion of discount, net |
|
|
1,614 |
|
|
|
— |
|
|
|
1,614 |
|
Net realized losses |
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Net change in unrealized appreciation/(depreciation) |
|
|
(4,561 |
) |
|
|
4,033 |
|
|
|
(528 |
) |
Balance, December 31, 2025 |
|
$ |
201,253 |
|
|
$ |
7,262 |
|
|
$ |
208,515 |
|
Change in net unrealized appreciation/depreciation in investments held as of December 31, 2025 |
|
$ |
(4,266 |
) |
|
$ |
4,033 |
|
|
$ |
(233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
Equity |
|
|
Total |
|
Balance, January 1, 2024 |
|
$ |
118,178 |
|
|
$ |
— |
|
|
$ |
118,178 |
|
Purchases |
|
|
68,693 |
|
|
|
— |
|
|
|
68,693 |
|
Sales and paydowns of investments |
|
|
(36,677 |
) |
|
|
— |
|
|
|
(36,677 |
) |
Amortization of premium and accretion of discount, net |
|
|
1,367 |
|
|
|
— |
|
|
|
1,367 |
|
Net realized gains |
|
|
27 |
|
|
|
— |
|
|
|
27 |
|
Net change in unrealized appreciation/(depreciation) |
|
|
(1,441 |
) |
|
|
35 |
|
|
|
(1,406 |
) |
Balance, December 31, 2024 |
|
$ |
150,147 |
|
|
$ |
35 |
|
|
$ |
150,182 |
|
Change in net unrealized appreciation/depreciation in investments held as of December 31, 2024 |
|
$ |
(1,014 |
) |
|
$ |
35 |
|
|
$ |
(979 |
) |
|
| Summary of Valuation Techniques and Quantitative Information |
The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range |
|
Weighted
Average* |
|
Impact to
Valuation if
Input Increases |
Debt |
|
$ |
147,341 |
|
|
Income Method |
|
Discount Rate |
|
8.8 to 19.1% |
|
11.1% |
|
Decrease |
Debt |
|
$ |
30,374 |
|
|
Market Method |
|
EBITDA Multiple |
|
4.5x to 9.5x |
|
6.8x |
|
Increase |
Debt |
|
$ |
9,707 |
|
|
Market Method |
|
Indicative Bid |
|
99.3% to 99.3% |
|
99.3% |
|
Increase |
Debt |
|
$ |
8,252 |
|
|
Income Method |
|
Discount Rate |
|
15.4% to 18.1% |
|
16.8% |
|
Decrease |
|
|
|
|
|
Market Method |
|
Indicative Bid |
|
101.0% to 101.0% |
|
101.0% |
|
Increase |
Debt |
|
$ |
5,579 |
|
|
Income Method |
|
Discount Rate |
|
22.0% to 27.0% |
|
24.5% |
|
Decrease |
|
|
|
|
|
Market Method |
|
EBITDA Multiple |
|
6.5x to 7.5x |
|
7.0x |
|
Increase |
Equity |
|
$ |
43 |
|
|
Market Method |
|
Revenue Multiple |
|
1.3x to 1.5x |
|
1.4x |
|
Increase |
Equity |
|
$ |
7,219 |
|
|
Market Method |
|
EBITDA Multiple |
|
4.8x to 10.8x |
|
8.2x |
|
Increase |
* Weighted based on fair value The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range |
|
Weighted
Average* |
|
Impact to
Valuation if
Input Increases |
Debt |
|
$ |
144,761 |
|
|
Income Method |
|
Discount Rate |
|
10.3% to 22.2% |
|
13.2% |
|
Decrease |
Debt |
|
$ |
5,386 |
|
|
Market Method |
|
EBITDA Multiple |
|
6.5x to 7.5x |
|
7.0x |
|
Increase |
Equity |
|
$ |
35 |
|
|
Market Method |
|
EBITDA Multiple |
|
6.5x to 7.5x |
|
7.0x |
|
Increase |
* Weighted based on fair value
|