Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2026

Summary of Investment Assets Categorized within Fair Value Hierarchy

The following summarizes the Company’s investment assets categorized within the fair value hierarchy as of March 31, 2026:


Type of Investment	Level 1		Level 2		Level 3		Total
Asset
Debt	$	-	$	53,966	$	136,437	$	190,403
Equity/Other		4,184		369		28,350		32,903
Short Term Investments		9,600		-		-		9,600
Total	$	13,784	$	54,335	$	164,787	$	232,906
Investment measured at net asset value(1)								43,857
Total Investments, at fair value							$	276,763

The following summarizes the Company’s investment assets categorized within the fair value hierarchy as of December 31, 2025:


Type of Investment	Level 1		Level 2		Level 3		Total
Asset
Debt	$	-	$	81,893	$	121,618	$	203,511
Equity/Other		10,994		138		31,437		42,569
Short Term Investments		32,803		-		-		32,803
Total	$	43,797	$	82,031	$	153,055	$	278,883
Investment measured at net asset value(1)								52,188
Total Investments, at fair value							$	331,071

(1)

Certain investments that are measured at fair value using net asset value (“NAV”) have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Statements of Assets and Liabilities.

Summary of Reconciliation of Level 3 Assets

The following is a reconciliation of Level 3 assets for the three months ended March 31, 2026:


Level 3	Beginning Balance as of January 1, 2026		Net Transfers In/Out		Purchases(1)		Net Realized Gain (Loss)			Net Change in Unrealized Appreciation (Depreciation)(2)			Sales and Settlements(1)			Net Amortization of Premium/ Discount		Ending Balance as of March 31, 2026
Debt	$	121,618	$	15,538	$	16,686	$	(163	)	$	1,717		$	(19,178	)	$	219	$	136,437
Equity/Other		31,437		-		228		-			(3,315	)		-			-		28,350
Total investment assets	$	153,055	$	15,538	$	16,914	$	(163	)	$	(1,598	)	$	(19,178	)	$	219	$	164,787

The following is a reconciliation of Level 3 assets for the three months ended March 31, 2025:


Level 3	Beginning Balance as of January 1, 2025		Net Transfers In/Out			Purchases(1)		Net Realized Gain (Loss)			Net Change in Unrealized Appreciation (Depreciation)(2)			Sales and Settlements(1)			Net Amortization of Premium/ Discount		Ending Balance as of March 31, 2025
Debt	$	159,954	$	(21,885	)	$	14,524	$	108		$	(489	)	$	(13,263	)	$	75	$	139,024
Equity/Other		32,937		-			6,397		(89	)		1,079			(412	)		-		39,912
Total investment assets	$	192,891	$	(21,885	)	$	20,921	$	19		$	590		$	(13,675	)	$	75	$	178,936

(1)

Purchases may include new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings, capitalized PIK income, and securities received in corporate actions and restructurings. Sales and Settlements may include scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities), and securities delivered in corporate actions and restructuring of investments.

(2)

The net change in unrealized depreciation relating to Level 3 assets still held at March 31, 2026 totaled $(1,643) consisting of the following: $1,672 related to debt investments and $(3,315) related to equity/other. The net change in unrealized depreciation relating to Level 3 assets still held at March 31, 2025 totaled $(2,853) consisting of the following: $(3,932) related to debt investments and $1,079 relating to equity/other.

Ranges of Significant Unobservable Inputs to Value Level 3 Assets

The following tables below present the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of March 31, 2026 and December 31, 2025, respectively. These ranges represent the significant unobservable inputs that were used in the valuation of each type of instrument, but they do not represent a range of values for any one instrument. For example, the lowest yield in 1st Lien Debt is appropriate for valuing that specific debt investment, but may not be appropriate for valuing any other debt investments in this asset class. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 assets.


As of March 31, 2026
Investment Type	Fair value		Valuation Technique(1)	Unobservable Input(1)	Range (Weighted Average)(2)
Debt	$	103,739	Income Approach	Discount Rate	7.02% - 29.35% (13.64%)
		25,325	Recent Transaction
		4,411	Market Approach	Earnings Multiple	0.00 - 9.75 (4.78)
		2,257	Broker Quotes		6.08 - 82.57 (36.66)
		705	Asset Recovery	Recovery Rates	17.00% - 22.00% (19.50%)
Total Debt	$	136,437

Equity / Other	$	12,465	Recent Transaction
		6,975	Insurance Industry Model	Estimated Losses	$0.0MM - $65.0MM ($32.5MM)
		6,711	Income Approach	Discount Rate	9.98% - 19.50% (18.21%)
		2,115	Market Approach	Earnings Multiple	0.07 - 14.06 (8.77)
		84	Asset Recovery / Liquidation(3)
Total Equity	$	28,350


As of December 31, 2025
Investment Type	Fair value		Valuation Technique(1)	Unobservable Input(1)	Range (Weighted Average)(2)
Debt	$	86,912	Income Approach	Discount Rate	8.02% - 27.19% (14.95%)
		25,325	Recent Transaction
		8,386	Market Approach	Earnings Multiple	0.00 - 9.75 (0.00)
		995	Broker Quotes		99.50 - 99.50 (99.50)
Total Debt	$	121,618

Equity / Other	$	13,137	Recent Transaction
		6,659	Insurance Industry Model	Estimated Losses	$0.0MM-$65.0MM($32.5MM)
		6,474	Income Approach	Discount Rate	17.00% - 19.00% (18.00%)
		5,082	Market Approach	Earnings Multiple	0.09 - 10.00 (8.76)
		85	Asset Recovery / Liquidation (3)
Total Equity/Other	$	31,437

(1)

The fair value of any one instrument may be determined using multiple valuation techniques or unobservable inputs.

(2)

Weighted average for an asset category consisting of multiple investments is calculated by weighting the significant unobservable input by the relative fair value of the investment. The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

(3)

Investments valued using the asset recovery or liquidation technique include investments for which valuation is based on current financial data without a discount rate applied.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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