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 ($ in thousands):


Asset Category	Fair value at March 31, 2026		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	149,398	Market Comparable	Market Yield	8.4% - 10.4% (9.2%)
First lien		7,066	Enterprise Market Value	EBITDA multiple	17.4x – 17.4x (17.4x)
Equity		1,907	Enterprise Market Value	EBITDA multiple	7.8x – 10.7x (8.9x)
Total Level 3 investments	$	158,371

(1)

The weighted average disclosed in the table above was weighted by its relative fair value.

Summary of Investments, Cash and Cash Equivalents

Our investments and cash and cash equivalents were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):


	Fair Value at March 31, 2026
Description	Fair Value		Level 1		Level 2		Level 3
First lien	$	156,464	$	-	$	-	$	156,464
Equity		1,907		-		-		1,907
Total investments		158,371		-		-		158,371
Cash equivalents		2,644		2,644		-		-
Total investments and cash equivalents	$	161,015	$	2,644	$	-	$	158,371
Credit Facility(1)	$	51,030	$	-	$	51,030	$	-

(1)

The Company elected not to apply the fair value option allowed by ASC 825-10 to the Credit Facility and thus the balance reported in the Consolidated Statements of Assets and Liabilities represents the carrying value, which approximates the fair value.

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 fair valued investments measured using significant unobservable inputs (Level 3) ($ in thousands):


	For the six months ended March 31, 2026
Description	First lien			Equity		Totals
Beginning Balance	$	-		$	-	$	-
Net change in unrealized appreciation (depreciation)		(148	)		27		(121	)
Purchases, net discount accretion		157,699			1,880		159,579
Proceeds from sales and repayments of investments		(1,087	)		-		(1,087	)
Ending Balance	$	156,464			1,907	$	158,371
Net change in unrealized appreciation (depreciation) reported within the net change in unrealized appreciation (depreciation) on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date	$	(148	)	$	27	$	(121	)

- 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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