v3.26.1
INVESTMENTS
 3 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fair Value
In accordance with ASC 820, the fair value of our investments is determined to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.
•Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical financial instruments in active markets;
•Level 2 — inputs to the valuation methodology include quoted prices for similar financial instruments in active or inactive markets, and inputs that are observable for the financial instrument, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists, or instances where prices vary substantially over time or among brokered market makers; and
•Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect assumptions that market participants would use when pricing the financial instrument and can include the Valuation Team’s assumptions based upon the best available information.
When a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Investments in funds measured using NAV as a practical expedient are not categorized within the fair value hierarchy.
As of June 30, 2026 and March 31, 2026, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in money market funds, which was valued using Level 1 inputs, and our investment in Gladstone Alternative Income Fund ("Gladstone Alternative"), which was valued using NAV as a practical expedient.
We transfer investments in and out of Level 1, 2 and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period. There were no transfers in or out of Level 1, 2 and 3 during the three months ended June 30, 2026 and 2025.
As of June 30, 2026 and March 31, 2026, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
As of June 30, 2026:
Secured first lien debt
$— $— $564,631 $564,631 
Secured second lien debt
— — 102,789 102,789 
Preferred equity
— — 429,510 429,510 
Common equity/equivalents
— 

— 180,145 180,145 
Total$— $— $1,277,075 $1,277,075 
Investments measured at NAV (A)
— — — 4,945 
Total Investments
$— $— $1,277,075 $1,282,020 
Cash equivalents25 — — 25 
Total Investments and Cash Equivalents as of June 30, 2026
$25 $— $1,277,075 $1,282,045 

Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
As of March 31, 2026:
Secured first lien debt
$— $— $570,602 $570,602 
Secured second lien debt
— — 99,197 99,197 
Preferred equity
— — 426,949 426,949 
Common equity/equivalents
— — 207,495 207,495 
Total$— $— $1,304,243 $1,304,243 
Investments measured at NAV (A)
— — — 5,005 
Total Investments$— $— $1,304,243 $1,309,248 
Cash equivalents25 — — 25 
Total Investments and Cash Equivalents as of March 31, 2026
$25 $— $1,304,243 $1,309,273 
(A)Includes our investment in Gladstone Alternative as of June 30, 2026 and March 31, 2026. Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this Quarterly Report.
The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of June 30, 2026 and March 31, 2026, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:
Total Recurring Fair Value Measurements
Reported in Consolidated Statements
of Assets and Liabilities
Valued Using Level 3 Inputs
June 30, 2026March 31, 2026
Non-Control/Non-Affiliate Investments
Secured first lien debt$368,906 $374,285 
Secured second lien debt100,389 97,397 
Preferred equity294,724 304,782 
Common equity/equivalents180,145 207,495 
Total Non-Control/Non-Affiliate Investments944,164 983,959 
Affiliate Investments
Secured first lien debt195,221 195,704 
Secured second lien debt2,400 1,800 
Preferred equity134,786 122,167 
Common equity/equivalents (A)
— — 
Total Affiliate Investments332,407 319,671 
Control Investments
Secured first lien debt504 613 
Secured second lien debt— — 
Preferred equity— — 
Common equity/equivalents— — 
Total Control Investments504 613 
Total investments at fair value using Level 3 inputs$1,277,075 $1,304,243 
(A)Excludes our investment in Gladstone Alternative as of June 30, 2026 and March 31, 2026 with a fair value of $4.9 million and $5.0 million, respectively, which was valued using NAV as a practical expedient.
In accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of June 30, 2026 and March 31, 2026. The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. Significant level 3 inputs were weighted by the relative fair value of the investments.
Quantitative Information about Level 3 Fair Value Measurements
Fair Value as ofValuation
Technique/
Methodology		Unobservable
Input		Range / Weighted-Average as of
June 30, 2026March 31, 2026June 30, 2026March 31, 2026
Secured first
lien debt		$564,631 $570,602 TEVEBITDA multiple
3.8x – 9.0x /
6.5x
3.6x – 8.7x /
6.4x
EBITDA
$367 – $39,298 /
$11,867
$430 – $28,973 / $11,991
Revenue multiple
0.4x – 0.6x /
0.4x
0.3x – 0.6x /
0.5x
Revenue
$20,670 – $92,487 /
$72,978
$21,768 – $99,974 / $62,789
Secured second
lien debt		102,789 99,197 TEVEBITDA multiple
5.2x – 9.2x /
 7.9x
5.0x – 10.3x /
7.6x
EBITDA
$3,177 – $51,487 /
$30,610
$3,000 – $44,315 / $19,510
Preferred
equity		429,510 426,949 TEVEBITDA multiple
3.8x – 9.0x /
6.2x
3.6x – 8.7x /
6.4x
EBITDA
$367 – $39,298 /
$18,946
$430 – $28,973 / $9,870
Revenue multiple
0.4x – 0.6x /
0.4x
0.3x – 0.6x /
0.4x
Revenue
$20,670 – $92,487 /
$92,487
$21,768 – $99,974 / $76,364
Common equity/
equivalents		180,145 207,495 TEVEBITDA multiple
5.0x – 9.2x /
9.0x
5.0x – 10.3x /
9.0x
EBITDA
$1,647 – $51,487 /
$48,426
$1,210 – $44,315 / $32,353
Total$1,277,075 $1,304,243 

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in market yields or discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.
Changes in Level 3 Fair Value Measurements of Investments
The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three months ended June 30, 2026 and 2025 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Secured
First Lien
Debt		Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents		Total
Three Months Ended June 30, 2026:
Fair value as of March 31, 2026
$570,602 $99,197 $426,949 $207,495 $1,304,243 
Total gain (loss):
Net realized gain (loss)(A)
(9,000)— — — (9,000)
Net unrealized (depreciation) appreciation(B)
(592)2,992 2,561 (27,350)(22,389)
Reversal of previously recorded depreciation upon realization(B)
3,621 — — — 3,621 
New investments, repayments and settlements(C):
Issuances / originations
— 600 — — 600 
Settlements / repayments
— — — — — 
Sales
— — — — — 
Transfers
— — — — — 
Fair value as of June 30, 2026
$564,631 $102,789 $429,510 $180,145 $1,277,075 
Change in unrealized (depreciation) appreciation attributable to investments still held at June 30, 2026
$(592)$2,992 $2,561 $(27,350)$(22,389)
Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
Total
Three Months Ended June 30, 2025:
Fair value as of March 31, 2025
$514,334 $103,580 $302,163 $54,268 $974,345 
Total gain (loss):
Net realized gain (loss)(A)
— — — — — 
Net unrealized (depreciation)
appreciation (B)
1,152 376 (3,683)1,073 (1,082)
Reversal of previously recorded (appreciation) depreciation upon realization(B)
— — — — — 
New investments, repayments and settlements(C):
Issuances / originations
45,941 — 16,901 — 62,842 
Settlements / repayments
(4,370)— — — (4,370)
Sales
— — — — — 
Transfers(D)
— (10,616)10,616 — — 
Fair value as of June 30, 2025
$557,057 $93,340 $325,997 $55,341 $1,031,735 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2025
$1,152 $376 $(3,683)$1,073 $(1,082)
Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2026 and 2025.
(B)Included in net unrealized (depreciation) appreciation of investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2026 and 2025.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, the amortization of discounts and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs, and other cost-basis adjustments.
(D)Transfers represent secured second lien debt of PSI Molded Plastics, Inc. ("PSI Molded") with a total cost basis of $10.6 million, which was converted to preferred equity in June 2025.
Investment Concentrations
As of June 30, 2026, our investment portfolio consisted of investments in 29 portfolio companies located in 20 states and Canada across 16 different industries with an aggregate fair value of approximately $1.3 billion. Our investments in SFEG Holdings, Inc. ("SFEG"), The E3 Company, LLC, Schylling, Inc., Brunswick Bowling Products, Inc. and Old World Christmas, Inc., represented our five largest portfolio investments at fair value and collectively comprised $550.0 million, or 42.9%, of our total investment portfolio at fair value as of June 30, 2026.
The following table summarizes our investments by security type as of June 30, 2026 and March 31, 2026:
June 30, 2026March 31, 2026
CostFair ValueCostFair Value
Secured first lien debt$584,008 55.9 %$564,631 44.0 %$593,008 56.3 %$570,602 43.6 %
Secured second lien debt153,440 14.7 %102,789 8.1 %152,840 14.5 %99,197 7.6 %
Total debt737,448 70.6 %667,420 52.1 %745,848 70.8 %669,799 51.2 %
Preferred equity257,403 24.7 %429,510 33.5 %257,403 24.5 %426,949 32.6 %
Common equity/equivalents49,597 4.7 %185,090 14.4 %49,597 4.7 %212,500 16.2 %
Total equity/equivalents307,000 29.4 %614,600 47.9 %307,000 29.2 %639,449 48.8 %
Total investments
$1,044,448 100.0 %$1,282,020 100.0 %$1,052,848 100.0 %$1,309,248 100.0 %
Investments at fair value consisted of the following industry classifications as of June 30, 2026 and March 31, 2026:
June 30, 2026March 31, 2026
Fair ValuePercentage of
Total Investments		Fair ValuePercentage of Total Investments
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)$222,005 17.3%$258,692 19.8%
Diversified/Conglomerate Services194,037 15.1%189,148 14.4%
Home and Office Furnishings, Housewares, and Durable Consumer Products173,346 13.5%166,553 12.7%
Aerospace and Defense169,054 13.2%174,542 13.4%
Oil and Gas123,550 9.6%125,605 9.6%
Leisure, Amusement, Motion Pictures, and Entertainment110,550 8.6%105,339 8.0%
Buildings and Real Estate64,830 5.1%68,987 5.3%
Electronics62,968 4.9%62,723 4.8%
Chemicals, Plastics, and Rubber52,499 4.1%49,715 3.8%
Healthcare, Education, and Childcare41,823 3.3%41,630 3.2%
Mining, Steel, Iron and Non-Precious Metals40,574 3.2%37,713 2.9%
Telecommunications7,459 0.6%7,942 0.6%
Other < 2.0%19,325 1.5%20,659 1.5%
Total investments$1,282,020 100.0%$1,309,248 100.0%
Investments at fair value were included in the following geographic regions of the U.S. and Canada as of June 30, 2026 and March 31, 2026:
June 30, 2026March 31, 2026
LocationFair ValuePercentage of
Total Investments		Fair ValuePercentage of
Total Investments
United States
South
$616,300 48.1 %$649,436 49.6 %
West
224,589 17.5 %227,294 17.3 %
Midwest
218,088 17.0 %216,726 16.6 %
Northeast
199,303 15.5 %193,837 14.8 %
Canada23,740 1.9 %21,955 1.7 %
Total investments$1,282,020 100.0 %$1,309,248 100.0 %
The geographic region indicates the location of the headquarters for our portfolio companies. A portfolio company may have additional business locations or investments in other geographic regions.
Investment Principal Repayments
The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of June 30, 2026:

Amount
For the remaining nine months ending March 31, 2027
$40,340 
For the fiscal years ending March 31:
2028111,442 
2029288,690 
2030159,506 
2031137,470 
Thereafter— 
Total contractual repayments$737,448 
Investments in equity securities307,000 
Total cost basis of investments held as of June 30, 2026:
$1,044,448 
Receivables from Portfolio Companies
Receivables from portfolio companies represent non-recurring costs that we incurred on behalf of portfolio companies. Such receivables, net of any allowance for uncollectible receivables, are included in Other assets, net on our accompanying Consolidated Statements of Assets and Liabilities. We generally maintain an allowance for uncollectible receivables from portfolio companies when the receivable balance becomes 90 days or more past due or if it is determined, based upon management’s judgment, that the portfolio company is unable to pay its obligations. We write off accounts receivable when we have exhausted collection efforts and have deemed the receivables uncollectible. As of June 30, 2026 and March 31, 2026, we had gross receivables from portfolio companies of $4.3 million and $2.6 million, respectively. As of June 30, 2026 and March 31, 2026, the allowance for uncollectible receivables was $1.5 million and $1.4 million, respectively.