| Summary of Assets Measured at Fair Value on a Recurring Basis |
The following tables present the balances of assets measured at fair value on a recurring basis, as of March 31, 2026 and December 31, 2025: Fair Value Measurements As of March 31, 2026
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Bank Debt/Senior Secured Loans |
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$ |
— |
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$ |
— |
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$ |
91,100 |
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$ |
91,100 |
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Preferred Equity |
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|
— |
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|
|
— |
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|
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2,930 |
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|
2,930 |
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Common Equity/Warrants |
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1 |
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|
|
— |
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60 |
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|
|
61 |
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Total Investments |
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$ |
1 |
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|
$ |
— |
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$ |
94,090 |
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$ |
94,091 |
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Fair Value Measurements As of December 31, 2025
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Bank Debt/Senior Secured Loans |
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$ |
— |
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|
$ |
— |
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|
$ |
82,835 |
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$ |
82,835 |
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Preferred Equity |
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— |
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|
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— |
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2,866 |
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2,866 |
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Common Equity/Warrants |
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1 |
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|
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— |
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|
59 |
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|
60 |
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Total Investments |
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$ |
1 |
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|
$ |
— |
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$ |
85,760 |
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$ |
85,761 |
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| Summary of Changes in Fair Value of Level 3 Assets |
The following table provides a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2026, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at March 31, 2026:
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Bank Debt/Senior
Secured Loans |
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Preferred Equity |
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Common Equity/ Warrants |
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Total |
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Fair value, December 31, 2025 |
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$ |
82,835 |
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$ |
2,866 |
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|
$ |
59 |
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$ |
85,760 |
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Total gains or losses included in earnings: |
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Net realized gain |
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— |
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— |
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— |
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— |
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Net change in unrealized gain (loss) |
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(511 |
) |
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(11 |
) |
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1 |
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(521 |
) |
Purchase of investment securities* |
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15,880 |
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75 |
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— |
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15,955 |
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Proceeds from dispositions of investment securities |
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(7,104 |
) |
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— |
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— |
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(7,104 |
) |
Transfers into Level 3 |
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— |
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— |
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— |
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— |
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Transfers out of Level 3 |
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— |
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— |
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— |
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— |
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Fair value, March 31, 2026 |
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$ |
91,100 |
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$ |
2,930 |
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|
$ |
60 |
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$ |
94,090 |
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Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
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Net change in unrealized gain (loss) |
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$ |
(511 |
) |
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$ |
(11 |
) |
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$ |
1 |
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$ |
(521 |
) |
* Includes PIK capitalization and accretion of discount.The following table provides a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2025, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at March 31, 2025:
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Bank Debt/
Senior
Secured Loans |
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Preferred Equity |
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Common Equity/Warrants |
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Total |
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Fair value, December 31, 2024 |
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$ |
67,638 |
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$ |
2,622 |
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$ |
60 |
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$ |
70,320 |
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Total gains or losses included in earnings: |
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Net realized gain |
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— |
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— |
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— |
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— |
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Net change in unrealized gain (loss) |
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(180 |
) |
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(10 |
) |
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(1 |
) |
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(191 |
) |
Purchase of investment securities* |
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11,158 |
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|
69 |
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— |
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|
11,227 |
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Proceeds from dispositions of investment securities |
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(7,956 |
) |
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— |
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— |
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(7,956 |
) |
Transfers into Level 3 |
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— |
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— |
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— |
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— |
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Transfers out of Level 3 |
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— |
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— |
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— |
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— |
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Fair value, March 31, 2025 |
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$ |
70,660 |
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$ |
2,681 |
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$ |
59 |
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$ |
73,400 |
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Unrealized gains (losses) for the period relating to those
Level 3 assets that were still held by the Company at the
end of the period: |
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Net change in unrealized gain (loss) |
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$ |
32 |
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$ |
(10 |
) |
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$ |
(1 |
) |
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$ |
21 |
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* Includes PIK capitalization and accretion of discount.
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| Summary of Company's Level 3 |
Quantitative information about the Company’s Level 3 asset fair value measurements as of March 31, 2026 is summarized in the table below:
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Asset or
Liability |
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Fair Value at
March 31, 2026 |
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Principal Valuation
Technique/Methodology |
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Unobservable Input |
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Range (Weighted
Average) |
Bank Debt / Senior Secured Loans |
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Asset |
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$ |
91,100 |
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Income Approach |
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Market Yield |
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8.6% – 26.7% (10.9%) |
Preferred Equity |
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Asset |
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$ |
2,930 |
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Income Approach |
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Market Yield |
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9.0% – 9.0% (9.0%) |
Common Equity |
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Asset |
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$ |
57 |
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Transaction Price* |
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N/A |
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N/A |
Warrants |
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Asset |
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$ |
3 |
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Market Approach |
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Volatility |
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25.5% –25.5% (25.5%) |
* This asset was valued at $2.18 per share, which is the price per share paid to the stockholders at the time of the closing of the transaction. Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2025 is summarized in the table below:
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Asset or
Liability |
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Fair Value at
December 31,
2025 |
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Principal Valuation
Technique/Methodology |
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Unobservable Input |
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Range (Weighted
Average) |
Bank Debt / Senior Secured Loans |
|
Asset |
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$ |
82,835 |
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Income Approach |
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Market Yield |
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8.6% – 23.3% (10.4%) |
Preferred Equity |
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Asset |
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$ |
2,866 |
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Income Approach |
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Market Yield |
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9.0% – 9.0% (9.0%) |
Common Equity |
|
Asset |
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$ |
57 |
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Transaction Price* |
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N/A |
|
N/A |
Warrants |
|
Asset |
|
$ |
2 |
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Market Approach |
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Volatility |
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21.4% -21.4% (21.4%) |
* This asset was valued at $2.18 per share, which is the price per share paid to the stockholders at the time of the closing of the transaction.
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