Fair Value of Financial Instruments (Tables)

9 Months Ended

Jun. 30, 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 June 30, 2026		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	27,772	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien		369,585	Market Comparable	Market yield	7.0% - 21.6% (9.8%)
First lien		27,190	Enterprise Market Value	EBITDA multiple	0.7x - 17.8x (9.3x)
Second lien		14,806	Market Comparable	Market yield	13.8% - 16.5% (15.0%)
Subordinated debt / corporate notes		184,546	Market Comparable	Market yield	11.7% - 16.1% (12.5%)
Subordinated debt / corporate notes		24,635	Enterprise Market Value	EBITDA multiple	0.9x - 30.3x (5.4x)
Equity		218,799	Enterprise Market Value	EBITDA multiple	0.5x - 17.8x (9.7x)
Total Level 3 investments	$	867,333
Debt Category ($ in thousands)
Truist Credit Facility	$	309,755	Market Comparable	Market yield	5.7%

(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 as of June 30, 2026 and September 30, 2025:


	Fair value at June 30, 2026
Description ($ in thousands)	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
Debt investments	$	648,534	$	—	$	—	$	648,534	$	—
U.S. Government Securities(3)		269,266		—		269,266		—		—
Equity investments		275,372		—		—		218,799		56,573
Total investments		1,193,172		—		269,266		867,333		56,573
Cash equivalents		11,542		11,542		—		—		—
Total investments and cash equivalents	$	1,204,714	$	11,542	$	269,266	$	867,333	$	56,573
Truist Credit Facility	$	309,755	$	—	$	—	$	309,755	$	—
2026 Notes-2(2)		164,573		—		164,573		—		—
2029 Notes(2)		73,607		—		73,607		—		—
Total debt	$	547,935	$	—	$	238,180	$	309,755	$	—

(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-2, and the 2029 Notes, and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair 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 the 2026 Notes-2 and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair 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):


	Nine Months Ended June 30, 2026
Description ($ in thousands)	Debt investments			Equity investments			Totals
Beginning balance	$	801,754		$	286,210		$	1,087,964
Net realized gain (loss)		(9,546	)		80,098			70,552
Net change in unrealized appreciation (depreciation)		(8,473	)		(58,941	)		(67,414	)
Purchases, PIK interest, net discount accretion and non-cash exchanges		300,483			7,676			308,159
Sales, repayments and non-cash exchanges		(435,684	)		(96,244	)		(531,928	)
Transfers in/out of Level 3		—		—				—
Ending balance	$	648,534		$	218,799		$	867,333
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	$	(17,686	)	$	9,820		$	(7,866	)


	Nine Months Ended June 30, 2025
Description ($ in thousands)	Debt investments			Equity investments			Totals
Beginning balance	$	916,796		$	235,573		$	1,152,369
Net realized gain (loss)		(30,009	)		(725	)		(30,734	)
Net change in unrealized appreciation (depreciation)		4,579			35,095			39,674
Purchases, PIK interest, net discount accretion and non-cash exchanges		543,409			10,719			554,128
Sales, repayments and non-cash exchanges		(746,131	)		(2,886	)		(749,017	)
Transfers in/out of Level 3		—		—				—
Ending balance	$	688,644		$	277,776		$	966,420
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	$	(11,620	)	$	34,061		$	22,441

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):


	Nine Months Ended June 30,
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		(723	)		1,023
Borrowings (1)		250,000			97,000
Repayments (1)		(375,000	)		(242,000	)
Transfers in and/or out of Level 3		—			—
Ending balance (cost – $301,456 and $316,456, respectively)	$	299,754		$	316,384
Temporary draws outstanding, at cost		10,000			—
Ending balance* (cost – $311,456 and $316,456, respectively)	$	309,755		$	316,384

(1)

Excludes temporary draws.

* The nine months ended June 30, 2026 does not foot due to rounding.

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

As of June 30, 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	$	47,781	September 30, 2026	$	1,639
Canadian dollar		CAD 2,800	$	2,036	$	1,974	July 29, 2026	$	62

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.

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