Fair Value of Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2026

Summary of Unobservable Inputs and Ranges

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes:


Asset Category ($ in thousands)	Fair value at March 31, 2026		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	27,210	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien		424,229	Market Comparable	Market yield	7.0% - 20.1% (10.2%)
First lien		30,261	Enterprise Market Value	EBITDA multiple	0.9x - 11.7x (8.5x)
Second lien		14,825	Market Comparable	Market yield	13.2% - 15.4% (14.2%)
Subordinated debt / corporate notes		182,335	Market Comparable	Market yield	11.7% - 16.1% (12.5%)
Subordinated debt / corporate notes		24,741	Enterprise Market Value	EBITDA multiple	0.9x - 26.2x (5.2x)
Equity		231,006	Enterprise Market Value	EBITDA multiple	0.9x - 28.0x (11.0x)
Total Level 3 investments	$	934,607
Debt Category ($ in thousands)
Truist Credit Facility	$	199,480	Market Comparable	Market yield	5.6%

(1)

The weighted averages disclosed in the table above were weighted by their relative fair value.


Asset Category ($ in thousands)	Fair value at September 30, 2025		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	31,018	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien		550,259	Market Comparable	Market yield	4.0% – 24.5% (10.1%)
First lien		1,096	Enterprise Market Value	EBITDA multiple	7.5x - 8.3x (8.1x)
Second lien		14,750	Market Comparable	Market yield	13.2% - 15.5% (14.3%)
Second lien		3,411	Market Comparable	Broker/Dealer bids or quotes	N/A
Subordinated debt / corporate notes		201,220	Market Comparable	Market yield	7.0% - 25.4% (13.2%)
Equity		286,210	Enterprise Market Value	EBITDA multiple	1.5x - 28.3x (9.4x)
Total Level 3 investments	$	1,087,964
Debt Category ($ in thousands)
Truist Credit Facility	$	425,477	Market Comparable	Market yield	4.9%

(1) The weighted averages disclosed in the table above were weighted by their relative fair value.

Summary of Investments, Cash and Cash Equivalents, Credit Facility, SBA Debentures and Notes

Our investments, cash equivalents, Truist Credit Facility, 2026 Notes, 2026 Notes-2, and 2029 Notes were categorized as follows in the fair value hierarchy:


	Fair value at March 31, 2026
Description ($ in thousands)	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
Debt investments	$	703,601	$	—	$	—	$	703,601	$	—
U.S. Government Securities(3)		209,427		—		209,427		—		—
Equity investments		290,485		—		—		231,006		59,479
Total investments		1,203,513		—		209,427		934,607		59,479
Cash equivalents		15,070		15,070		—		—		—
Total investments and cash equivalents	$	1,218,583	$	15,070	$	209,427	$	934,607	$	59,479
Truist Credit Facility	$	199,480	$	—	$	—	$	199,480	$	—
2026 Notes(2)		149,923		—		149,923		—		—
2026 Notes-2(2)		164,360		—		164,360		—		—
2029 Notes(2)		73,472		—		73,472		—		—
Total debt	$	587,235	$	—	$	387,755	$	199,480	$	—

(1)

In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10"), our equity investment in PSLF and PTSF II are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy.

(2)

We elected not to apply ASC 825-10 to the 2026 Notes, the 2026 Notes-2, the 2029 Notes, and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value.

(3)

Our U.S. Treasury Bills are classified as Level 2, as they were valued by the pricing service which utilize broker-supplied prices.


	Fair Value at September 30, 2025
Description ($ in thousands)	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
Debt investments	$	801,754	$	—	$	—	$	801,754	$	—
U.S. Government Securities(3)		124,788		—		124,788		—		—
Equity investments		360,731		—		—		286,210		74,521
Total investments		1,287,273		—		124,788		1,087,964		74,521
Cash equivalents		30,711		30,711		—		—		—
Total investments and cash equivalents	$	1,317,984	$	30,711	$	124,788	$	1,087,964	$	74,521
Truist Credit Facility	$	425,477	$	—	$	—	$	425,477	$	—
2026 Notes(2)		149,473		—		149,473		—		—
2026 Notes-2(2)		163,933		—		163,933		—		—
Total debt	$	738,883	$	—	$	313,406	$	425,477	$	—

(1)

(2)

We elected not to apply ASC 825-10 to the 2026 Notes and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value.

(3)

Our U.S. Treasury Bills are classified as Level 2, as they were valued by the pricing service which utilize broker-supplied prices.

Reconciliation of Investments Measured at Fair Value Using Significant Unobservable Inputs Level 3

The tables below show a reconciliation of the beginning and ending balances for investments measured at fair value using significant unobservable inputs (Level 3):


	Six Months Ended March 31, 2026
Description ($ in thousands)	Debt investments			Equity investments			Totals
Beginning balance	$	801,754		$	286,210		$	1,087,964
Net realized gain (loss)		(8,511	)		67,014			58,503
Net change in unrealized appreciation (depreciation)		(2,977	)		(51,149	)		(54,126	)
Purchases, PIK interest, net discount accretion and non-cash exchanges		221,892			6,772			228,664
Sales, repayments and non-cash exchanges		(308,557	)		(77,841	)		(386,398	)
Transfers in/out of Level 3		—		—				—
Ending balance	$	703,601		$	231,006		$	934,607
Net change in unrealized appreciation reported within the net change in unrealized appreciation on investments in our consolidated statements of operations attributable to our Level 3 assets still held at the reporting date	$	(11,679	)	$	18,318		$	6,639


	Six Months Ended March 31, 2025
Description ($ in thousands)	Debt investments			Equity investments			Totals
Beginning balance	$	916,796		$	235,573		$	1,152,369
Net realized gain (loss)		(29,436	)		(776	)		(30,212	)
Net change in unrealized appreciation (depreciation)		9,063			26,780			35,843
Purchases, PIK interest, net discount accretion and non-cash exchanges		455,557			7,657			463,214
Sales, repayments and non-cash exchanges		(614,289	)		(2,533	)		(616,822	)
Transfers in/out of Level 3		—		—				—
Ending balance	$	737,691		$	266,701		$	1,004,392
Net change in unrealized appreciation reported within the net change in unrealized appreciation on investments in our consolidated statements of operations attributable to our Level 3 assets still held at the reporting date	$	(7,561	)	$	25,747		$	18,186

Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs Level 3

The table below shows a reconciliation of the beginning and ending balances for liabilities measured at fair value using significant unobservable inputs (Level 3):


	Six Months Ended March 31,
Long-Term Credit Facility	2026			2025
Beginning balance (cost – $426,456 and $461,456, respectively)	$	425,477		$	460,361
Net change in unrealized appreciation (depreciation) included in earnings		(997	)		(1,949	)
Borrowings (1)		70,000			80,000
Repayments (1)		(305,000	)		(227,000	)
Transfers in and/or out of Level 3		—			—
Ending balance (cost – $191,456 and $314,456, respectively)	$	189,480		$	311,412
Temporary draws outstanding, at cost		10,000			—
Ending balance (cost – $201,456 and $314,456, respectively)	$	199,480		$	311,412

(1)

Excludes temporary draws.

Net Change in Fair Value on Foreign Currency Translation on Outstanding Borrowings

As of March 31, 2026, we had outstanding non-U.S. dollar borrowings on our Truist Credit Facility:


Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation/ (depreciation)
British Pound	£	36,000	$	49,420	$	47,473	June 30, 2026	$	1,947
Canadian dollar		CAD 2,800	$	2,036	$	2,006	April 27, 2026	$	30

As of September 30, 2025, we had outstanding non-U.S. dollar borrowings on our Truist Credit Facility:


Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation/ (depreciation)
British Pound	£	36,000	$	49,420	$	48,465	December 31, 2025	$	955
Canadian dollar		CAD 2,800	$	2,036	$	2,012	October 29, 2025	$	24

- 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.

+ References + Details