| Investments Measured at Fair Value by Investment Type on Recurring Basis |
The Company’s investments measured at fair value by investment type on a recurring basis as of June 30, 2026 and December 31, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at June 30, 2026 Using |
|
Investment Type |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
|
|
Significant
Other
Observable
Inputs (Level 2) |
|
|
Significant
Unobservable
Inputs (Level 3) |
|
|
Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
299,326,128 |
|
|
$ |
299,326,128 |
|
Senior Secured Notes |
|
|
- |
|
|
|
- |
|
|
|
30,904,496 |
|
|
|
30,904,496 |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
2,745,000 |
|
|
|
2,745,000 |
|
Second Lien Senior Secured Loans |
|
|
- |
|
|
|
- |
|
|
|
1,358,368 |
|
|
|
1,358,368 |
|
Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
500,000 |
|
|
|
500,000 |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
334,833,992 |
|
|
$ |
334,833,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2025 Using |
|
Investment Type |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
|
|
Significant
Other
Observable
Inputs (Level 2) |
|
|
Significant
Unobservable
Inputs (Level 3) |
|
|
Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
292,719,497 |
|
|
$ |
292,719,497 |
|
Senior Secured Notes |
|
|
- |
|
|
|
- |
|
|
|
37,473,499 |
|
|
|
37,473,499 |
|
Second Lien Senior Secured Loans |
|
|
- |
|
|
|
- |
|
|
|
1,447,186 |
|
|
|
1,447,186 |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
1,171,605 |
|
|
|
1,171,605 |
|
Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
500,000 |
|
|
|
500,000 |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
333,311,787 |
|
|
$ |
333,311,787 |
|
|
| Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments |
The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of June 30, 2026 and December 31, 2025. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount rate ranges are shown as spread over the U.S. Prime Rate ("PRIME"), Secured Overnight Financing Rate ("SOFR") and/or U.S. Treasury Rates, as applicable, for senior secured first lien term loans, as of June 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value as of
June 30, 2026 |
|
|
Valuation
Techniques/Methodologies |
|
Unobservable Input |
|
Range |
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
299,326,128 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.00% - 20.40% |
|
|
12.55 |
% |
Senior Secured Notes |
|
|
30,904,496 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
9.00% - 12.60% |
|
|
11.20 |
% |
Warrants |
|
|
2,745,000 |
|
|
Option Pricing Model |
|
Volatility Factor |
|
40.00% - 72.00% |
|
|
56.67 |
% |
Second Lien Senior Secured Loans |
|
|
1,358,368 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
18.90% - 20.90% |
|
|
19.90 |
% |
Preferred Stock |
|
|
500,000 |
|
|
Market Approach |
|
Current Value |
|
2.00x |
|
2.00x |
|
Total |
|
$ |
334,833,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value as of
December 31, 2025 |
|
|
Valuation
Techniques/Methodologies |
|
Unobservable Input |
|
Range |
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
249,770,789 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.40% - 23.25% |
|
|
12.81 |
% |
First Lien Senior Secured Loans |
|
|
42,948,708 |
|
|
Recent Transaction |
|
N/A |
|
N/A |
|
N/A |
|
Senior Secured Notes |
|
|
37,473,499 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
5.87% - 18.23% |
|
|
10.66 |
% |
Second Lien Senior Secured Loans |
|
|
1,447,186 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
18.39% - 20.39% |
|
|
19.64 |
% |
Warrants |
|
|
826,250 |
|
|
Enterprise Value |
|
Revenue Multiple |
|
1.75x - 5.25x |
|
4.52x |
|
Preferred Stock |
|
|
500,000 |
|
|
Market Approach |
|
Current Value |
|
1.75x |
|
1.75x |
|
Warrants |
|
|
345,355 |
|
|
Option Pricing Model |
|
Volatility Factor |
|
49.00% - 72.00% |
|
|
51.51 |
% |
Total |
|
$ |
333,311,787 |
|
|
|
|
|
|
|
|
|
|
(1) The weighted average is calculated based on the fair value of each investment.
|
| Changes in Fair Value of Level 3 Portfolio Investments |
The following tables provide a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the six months ended June 30, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Secured
Loans |
|
|
Senior
Secured Notes |
|
|
Second Lien Senior Secured Loans |
|
|
Preferred
Stock |
|
|
Warrants |
|
|
Total |
|
Fair Value as of December 31, 2025 |
|
$ |
292,719,497 |
|
|
$ |
37,473,499 |
|
|
$ |
1,447,186 |
|
|
$ |
500,000 |
|
|
$ |
1,171,605 |
|
|
$ |
333,311,787 |
|
Purchases |
|
|
91,107,507 |
|
|
|
2,715,658 |
|
|
|
- |
|
|
|
- |
|
|
|
1,583,321 |
|
|
|
95,406,486 |
|
Accretion of discount and fees (amortization of premium), net |
|
|
1,470,998 |
|
|
|
476,083 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,947,081 |
|
PIK interest |
|
|
2,634,170 |
|
|
|
82,143 |
|
|
|
24,656 |
|
|
|
- |
|
|
|
- |
|
|
|
2,740,969 |
|
Proceeds from sales of investments and principal repayments |
|
|
(86,019,690 |
) |
|
|
(9,431,091 |
) |
|
|
(105,536 |
) |
|
|
- |
|
|
|
- |
|
|
|
(95,556,317 |
) |
Net realized gain (loss) on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
(2,586,354 |
) |
|
|
(411,796 |
) |
|
|
(7,938 |
) |
|
|
- |
|
|
|
(9,926 |
) |
|
|
(3,016,014 |
) |
Balance as of June 30, 2026 |
|
$ |
299,326,128 |
|
|
$ |
30,904,496 |
|
|
$ |
1,358,368 |
|
|
$ |
500,000 |
|
|
$ |
2,745,000 |
|
|
$ |
334,833,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
June 30, 2026 |
|
$ |
(2,055,652 |
) |
|
$ |
(133,584 |
) |
|
$ |
(7,938 |
) |
|
$ |
- |
|
|
$ |
(9,926 |
) |
|
$ |
(2,207,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Secured
Loans |
|
|
Senior
Secured Notes |
|
|
Preferred
Stock |
|
|
Warrants |
|
|
Total |
|
Fair Value as of December 31, 2024 |
|
$ |
239,860,206 |
|
|
$ |
34,656,192 |
|
|
$ |
500,000 |
|
|
$ |
225,000 |
|
|
$ |
275,241,398 |
|
Purchases |
|
|
55,028,224 |
|
|
|
3,600,000 |
|
|
|
- |
|
|
|
422,381 |
|
|
|
59,050,605 |
|
Accretion of discount and fees (amortization of premium), net |
|
|
1,096,351 |
|
|
|
119,751 |
|
|
|
- |
|
|
|
- |
|
|
|
1,216,102 |
|
PIK interest |
|
|
937,827 |
|
|
|
108,140 |
|
|
|
- |
|
|
|
- |
|
|
|
1,045,967 |
|
Proceeds from sales of investments and principal repayments |
|
|
(29,940,662 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(29,940,662 |
) |
Net realized gain (loss) on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
638,803 |
|
|
|
370,506 |
|
|
|
- |
|
|
|
(123,715 |
) |
|
|
885,594 |
|
Balance as of June 30, 2025 |
|
$ |
267,620,749 |
|
|
$ |
38,854,589 |
|
|
$ |
500,000 |
|
|
$ |
523,666 |
|
|
$ |
307,499,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
June 30, 2025 |
|
$ |
638,803 |
|
|
$ |
370,506 |
|
|
$ |
- |
|
|
$ |
(123,715 |
) |
|
$ |
885,594 |
|
|