| INVESTMENTS |
INVESTMENTS The following table shows the composition of the investment portfolio, at fair value and cost (with corresponding percentage of total portfolio investments) as of September 30, 2026 and March 31, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Percentage of Total Portfolio
at Fair Value | | Percentage of Net Assets
at Fair Value | | Cost | | Percentage of Total Portfolio
at Cost | | | (dollars in thousands) | | | September 30, 2026: | | | | | | | | | | | | First lien loans (1)(2) | $ | 2,155,196 | | | 89.4 | % | | 194.8 | % | | $ | 2,234,534 | | | 90.9 | % | | | Second lien loans (2) | 25,098 | | | 1.0 | | | 2.2 | | | 26,029 | | | 1.0 | | | | Subordinated debt (3) | 1,214 | | | 0.1 | | | 0.1 | | | 1,386 | | | 0.1 | | | | Preferred equity | 83,488 | | | 3.5 | | | 7.5 | | | 89,037 | | | 3.6 | | | | Common equity & warrants | 106,876 | | | 4.4 | | | 9.7 | | | 70,542 | | | 2.9 | | | | Earnout | 1,891 | | | 0.1 | | | 0.2 | | | 1,060 | | | — | | | | JV equity (4) | 36,366 | | | 1.5 | | | 3.3 | | | 36,500 | | | 1.5 | | | | $ | 2,410,129 | | | 100.0 | % | | 217.8 | % | | $ | 2,459,088 | | | 100.0 | % | | | | | | | | | | | | | | March 31, 2026: | | | | | | | | | | | | First lien loans (1)(2) | $ | 1,890,406 | | | 90.1 | % | | 187.0 | % | | $ | 1,948,890 | | | 92.0 | % | | | Second lien loans (2) | 24,931 | | | 1.2 | | | 2.5 | | | 26,064 | | | 1.2 | | | | Subordinated debt (3) | 1,157 | | | 0.1 | | | 0.1 | | | 1,337 | | | 0.1 | | | | Preferred equity | 74,638 | | | 3.5 | | | 7.4 | | | 82,020 | | | 3.8 | | | | Common equity & warrants | 102,276 | | | 4.9 | | | 10.1 | | | 57,717 | | | 2.7 | | | | Earnout | 4,038 | | | 0.2 | | | 0.4 | | | 3,457 | | | 0.2 | | | | $ | 2,097,446 | | | 100.0 | % | | 207.5 | % | | $ | 2,119,485 | | | 100.0 | % | |
(1)Included in first lien loans are loans structured as first lien last out loans. These loans may, in certain cases, be subordinated in payment priority to other senior secured lenders. As of September 30, 2026 and March 31, 2026, the fair value of the first lien last out loans was $146.2 million and $23.5 million, respectively, which represents 6.1% and 1.1%, respectively, of the total portfolio at fair value. (2)Included in first lien loans and second lien loans are loans structured as split lien term loans. These loans provide the Company with a first lien priority on certain assets of the obligor and a second lien priority on different assets of the obligor. As of September 30, 2026 and March 31, 2026, the fair value of the split lien term loans included in first lien loans was $80.4 million and $55.9 million, respectively, which represents 3.3% and 2.7%, respectively, of the total portfolio at fair value. As of September 30, 2026 and March 31, 2026, the fair value of the split lien term loans included in second lien loans was $25.1 million and $24.9 million, respectively, which represents 1.0% and 1.2%, respectively, of the total portfolio at fair value. (3)Included in subordinated debt are unsecured convertible notes with a fair value of $0.2 million as of both September 30, 2026 and March 31, 2026. (4)Included in JV equity are the Company's investments in CapTrin Partners, LLC ("CapTrin") and Desert Star 2026 LLC ("Desert Star"), each of which is a joint venture between Capital Southwest Corporation and Trinity Capital Inc. CapTrin primarily invests in first-out senior secured debt opportunities in the LMM, while Desert Star primarily invests in loans and debt instruments with a focus on technology. Additional information regarding these investments is provided in the sections entitled "CapTrin Partners, LLC" and "Desert Star 2026 LLC" below. The following tables show the composition of the investment portfolio by industry, at fair value and cost (with corresponding percentage of total portfolio investments) as of September 30, 2026 and March 31, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Percentage of Total Portfolio
at Fair Value | | Percentage of Net Assets
at Fair Value | | Cost | | Percentage of Total Portfolio
at Cost | | (dollars in thousands) | | September 30, 2026: | | | | | | | | | | | Healthcare Services | $ | 293,004 | | | 12.1 | % | | 26.5 | % | | $ | 325,092 | | | 13.2 | % | | Consumer Services | 230,982 | | | 9.6 | | | 20.9 | | | 249,649 | | | 10.3 | | | Consumer Products | 230,095 | | | 9.5 | | | 20.8 | | | 217,675 | | | 8.9 | | | Media & Marketing | 212,576 | | | 8.8 | | | 19.2 | | | 213,016 | | | 8.7 | | | Food, Agriculture & Beverage | 139,774 | | | 5.8 | | | 12.6 | | | 150,531 | | | 6.1 | | | Transportation & Logistics | 123,450 | | | 5.1 | | | 11.2 | | | 100,588 | | | 4.1 | | | Financial Services | 123,015 | | | 5.1 | | | 11.1 | | | 114,749 | | | 4.7 | | | Business Services | 99,852 | | | 4.1 | | | 9.0 | | | 103,933 | | | 4.2 | | | Software | 95,604 | | | 4.0 | | | 8.6 | | | 94,477 | | | 3.8 | | | Research & Consulting Services | 92,038 | | | 3.8 | | | 8.3 | | | 92,028 | | | 3.7 | | | Commercial Services & Supplies | 78,963 | | | 3.3 | | | 7.1 | | | 77,682 | | | 3.2 | | | Industrial Machinery | 68,994 | | | 2.9 | | | 6.2 | | | 74,327 | | | 3.0 | | | Industrial Services | 60,594 | | | 2.5 | | | 5.5 | | | 59,896 | | | 2.4 | | | Environmental Services | 59,696 | | | 2.5 | | | 5.4 | | | 64,263 | | | 2.6 | | | Pharmaceuticals, Biotechnology & Life Sciences | 51,347 | | | 2.1 | | | 4.6 | | | 55,009 | | | 2.2 | | | IT Services | 49,310 | | | 2.0 | | | 4.5 | | | 49,033 | | | 2.0 | | | Healthcare Equipment & Supplies | 47,332 | | | 2.0 | | | 4.3 | | | 49,597 | | | 2.0 | | | Telecommunications | 45,463 | | | 1.9 | | | 4.1 | | | 50,877 | | | 2.1 | | | Distribution | 37,938 | | | 1.6 | | | 3.4 | | | 33,772 | | | 1.4 | | | Multi-Sector Holdings (1) | 36,366 | | | 1.5 | | | 3.3 | | | 36,500 | | | 1.5 | | | Specialty Retail | 33,398 | | | 1.4 | | | 3.0 | | | 31,560 | | | 1.3 | | | Education | 30,627 | | | 1.3 | | | 2.8 | | | 43,515 | | | 1.8 | | | Healthcare Products | 29,221 | | | 1.2 | | | 2.6 | | | 29,649 | | | 1.2 | | | Restaurants | 28,625 | | | 1.2 | | | 2.6 | | | 28,012 | | | 1.1 | | | Industrial Products | 28,344 | | | 1.2 | | | 2.6 | | | 17,958 | | | 0.7 | | | Aerospace & Defense | 28,214 | | | 1.2 | | | 2.7 | | | 28,214 | | | 1.1 | | | Energy Services | 22,438 | | | 0.9 | | | 2.0 | | | 22,199 | | | 0.9 | | | Movies & Entertainment | 18,095 | | | 0.8 | | | 1.6 | | | 25,543 | | | 1.0 | | | Technology Products & Components | 10,015 | | | 0.4 | | | 0.9 | | | 9,957 | | | 0.4 | | | Building & Infrastructure Products | 4,759 | | | 0.2 | | | 0.4 | | | 9,787 | | | 0.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 2,410,129 | | | 100.0 | % | | 217.8 | % | | $ | 2,459,088 | | | 100.0 | % |
(1)Included in Multi-sector holdings are the Company's investments in CapTrin and Desert Star, each of which is a joint venture between Capital Southwest Corporation and Trinity Capital Inc. CapTrin primarily invests in first-out senior secured debt opportunities in the LMM, while Desert Star primarily invests in loans and debt instruments with a focus on technology. Additional information regarding these investments is provided in the sections entitled "CapTrin Partners, LLC" and "Desert Star 2026 LLC" below. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Percentage of Total Portfolio
at Fair Value | | Percentage of Net Assets
at Fair Value | | Cost | | Percentage of Total Portfolio
at Cost | | (dollars in thousands) | | March 31, 2026: | | | | | | | | | | | | | | | | | | | | | Healthcare Services | $ | 287,375 | | | 13.7 | % | | 28.4 | % | | $ | 316,703 | | | 14.9 | % | | Media & Marketing | 199,723 | | | 9.5 | | | 19.8 | | | 198,800 | | | 9.4 | | | Consumer Services | 198,692 | | | 9.5 | | | 19.7 | | | 210,318 | | | 9.9 | | | Consumer Products | 192,024 | | | 9.2 | | | 19.0 | | | 184,982 | | | 8.7 | | | Food, Agriculture & Beverage | 135,389 | | | 6.4 | | | 13.4 | | | 146,503 | | | 6.9 | | | Transportation & Logistics | 127,208 | | | 6.0 | | | 12.6 | | | 94,012 | | | 4.4 | | | Business Services | 92,635 | | | 4.4 | | | 9.2 | | | 97,504 | | | 4.6 | | | Research & Consulting Services | 87,119 | | | 4.2 | | | 8.6 | | | 86,466 | | | 4.1 | | | Financial Services | 81,007 | | | 3.9 | | | 8.0 | | | 71,424 | | | 3.4 | | | Industrial Machinery | 70,559 | | | 3.4 | | | 7.0 | | | 74,479 | | | 3.5 | | | Industrial Products | 55,961 | | | 2.7 | | | 5.5 | | | 43,912 | | | 2.1 | | | Industrial Services | 55,311 | | | 2.6 | | | 5.5 | | | 54,576 | | | 2.6 | | | Commercial Services & Supplies | 55,289 | | | 2.6 | | | 5.4 | | | 54,524 | | | 2.6 | | | Pharmaceuticals, Biotechnology & Life Sciences | 51,813 | | | 2.5 | | | 5.1 | | | 55,055 | | | 2.6 | | | Healthcare Equipment & Supplies | 47,519 | | | 2.3 | | | 4.7 | | | 48,621 | | | 2.3 | | | Environmental Services | 47,438 | | | 2.3 | | | 4.7 | | | 50,394 | | | 2.4 | | | Telecommunications | 46,094 | | | 2.2 | | | 4.6 | | | 48,458 | | | 2.3 | | | Specialty Retail | 40,052 | | | 1.9 | | | 4.0 | | | 38,175 | | | 1.8 | | | Healthcare Products | 36,248 | | | 1.7 | | | 3.6 | | | 36,891 | | | 1.7 | | | Software | 34,892 | | | 1.7 | | | 3.4 | | | 34,514 | | | 1.6 | | | Education | 30,843 | | | 1.5 | | | 3.1 | | | 42,240 | | | 2.0 | | | Restaurants | 25,373 | | | 1.2 | | | 2.5 | | | 25,638 | | | 1.2 | | | Movies & Entertainment | 22,711 | | | 1.1 | | | 2.2 | | | 25,454 | | | 1.2 | | | Energy Services | 22,173 | | | 1.0 | | | 2.2 | | | 21,896 | | | 1.0 | | | IT Services | 20,943 | | | 1.0 | | | 2.1 | | | 21,616 | | | 1.0 | | | Distribution | 17,643 | | | 0.8 | | | 1.7 | | | 13,505 | | | 0.6 | | | Technology Products & Components | 8,443 | | | 0.4 | | | 0.8 | | | 12,878 | | | 0.7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Building & Infrastructure Products | 6,969 | | | 0.3 | | | 0.7 | | | 9,947 | | | 0.5 | | | $ | 2,097,446 | | | 100.0 | % | | 207.5 | % | | $ | 2,119,485 | | | 100.0 | % |
The following tables summarize the composition of the investment portfolio by geographic region of the United States, at fair value and cost (with corresponding percentage of total portfolio investments), as of September 30, 2026 and March 31, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Percentage of Total Portfolio
at Fair Value | | Percentage of Net Assets
at Fair Value | | Cost | | Percentage of Total Portfolio
at Cost | | (dollars in thousands) | | September 30, 2026: | | | | | | | | | | | Northeast | $ | 699,561 | | | 29.0 | % | | 63.2 | % | | $ | 697,820 | | | 28.4 | % | | West | 440,662 | | | 18.3 | | | 39.8 | | | 439,563 | | | 17.9 | | | Southeast | 432,591 | | | 18.0 | | | 39.1 | | | 475,861 | | | 19.3 | | | Southwest | 431,609 | | | 17.9 | | | 39.0 | | | 437,785 | | | 17.8 | | | Midwest | 330,276 | | | 13.7 | | | 29.9 | | | 334,019 | | | 13.6 | | | International | 39,064 | | | 1.6 | | | 3.5 | | | 37,540 | | | 1.5 | | | Multi-Sector Holdings (1) | 36,366 | | | 1.5 | | | 3.3 | | | 36,500 | | | 1.5 | | | $ | 2,410,129 | | | 100.0 | % | | 217.8 | % | | $ | 2,459,088 | | | 100.0 | % | | | | | | | | | | | | March 31, 2026: | | | | | | | | | | | Northeast | $ | 576,279 | | | 27.5 | % | | 57.0 | % | | $ | 579,895 | | | 27.4 | % | | Southwest | 446,244 | | | 21.3 | | | 44.1 | | | 433,468 | | | 20.4 | | | Southeast | 421,730 | | | 20.1 | | | 41.8 | | | 460,151 | | | 21.7 | | | West | 358,529 | | | 17.1 | | | 35.5 | | | 351,246 | | | 16.6 | | | Midwest | 262,879 | | | 12.5 | | | 26.0 | | | 264,801 | | | 12.5 | | | International | 31,785 | | | 1.5 | | | 3.1 | | | 29,924 | | | 1.4 | | | $ | 2,097,446 | | | 100.0 | % | | 207.5 | % | | $ | 2,119,485 | | | 100.0 | % |
(1)Included in Multi-sector holdings are the Company's investments in CapTrin and Desert Star, each of which is a joint venture between Capital Southwest Corporation and Trinity Capital Inc. CapTrin primarily invests in first-out senior secured debt opportunities in the LMM, while Desert Star primarily invests in loans and debt instruments with a focus on technology. Additional information regarding these investments is provided in the sections entitled "CapTrin Partners, LLC" and "Desert Star 2026 LLC" below. CapTrin Partners, LLC
On January 22, 2026, the Company and Trinity Capital Inc. ("Trinity") formed CapTrin Partners, LLC ("CapTrin"), a joint venture established for the purpose of primarily investing in first out senior secured debt opportunities in the LMM. All investment and operational decisions for CapTrin are made by CapTrin's board of managers, which consists of equal representation from both joint venture partners. CapTrin is owned equally by the Company and Trinity, with each holding a 50% equity interest and making a $50.0 million capital commitment. As of September 30, 2026, approximately $57.0 million of capital commitments were funded, of which $28.5 million was funded by CSWC.
On April 27, 2026, CapTrin entered into a credit and security agreement relating to its special purpose vehicle financing credit facility (the "CapTrin Credit Facility") to provide additional liquidity to support its investment and operational activities. The CapTrin Credit Facility is secured by a pledge of 100% of the equity interest in CapTrin Partners SPV LLC ("CapTrin SPV"), a wholly owned subsidiary of CapTrin, and CapTrin SPV's assets. The CapTrin Credit Facility includes an initial commitment of $150.0 million and has an accordion feature that allows for an increase of the total commitments to up to $350.0 million, subject to certain conditions. Borrowings under the CapTrin Credit Facility bear interest at a rate equal to SOFR plus 2.25% per annum. The CapTrin Facility has a reinvestment period until April 27, 2030 and matures on April 27, 2031.
As of September 30, 2026, CapTrin had total assets of $132.4 million. CapTrin currently has approximately $126.7 million of debt investments at fair value. The portfolio companies in CapTrin are in industries similar to those in which we invest directly. During the quarter ended September 30, 2026, CapTrin declared a total dividend of $1.0 million, of which $0.5 million was paid to CSWC in October 2026. Below is certain summarized financial information for CapTrin as of September 30, 2026 and for the six months ended September 30, 2026 (amounts in thousands): | | | | | | | | September 30, 2026 | | | Selected Balance Sheet Information: | | | Investments, at fair value (cost $126,507) | $ | 126,706 | | | | Cash and cash equivalents | 2,492 | | | | Interest receivable | 1,398 | | | | Deferred financing costs and other assets | 1,791 | | | | Total assets | $ | 132,387 | | | | | | | Senior credit facility payable | $ | 74,000 | | | | Other liabilities | 1,514 | | | | Total liabilities | $ | 75,514 | | | | Members' equity | 56,873 | | | | Total liabilities and members' equity | $ | 132,387 | | |
| | | | | | | | | | | | | | Three Months Ended September 30, | | Period from April 22, 2026 (commencement of operations) through | | | 2026 | | September 30, 2026 | | | Selected Statement of Operations Information: | | | | | | Total revenues | $ | 2,309 | | | $ | 3,426 | | | | Total expenses | (1,325) | | | (2,232) | | | | Net investment income | $ | 984 | | | $ | 1,194 | | | | Net unrealized appreciation | 240 | | | 198 | | | | | | | | | Net increase in members' equity resulting from operations | $ | 1,224 | | | $ | 1,392 | | |
Below is a listing of the individual loans in CapTrin's portfolio as of September 30, 2026 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Portfolio Company | Type of Investment | Current Interest Rate1 | Maturity | Principal | Cost | Fair Value2 | | | Coupon | Reference | Spread | Floor | | | | | | Commercial Services & Supplies | | | | | | | | | | | MYNTS HOLDINGS, LLC | First Lien - Term Loan A3 | 7.73% | SOFR (Q) | 4.00% | 1.50% | 5/5/2031 | 12,500 | | 12,412 | | 12,500 | | | VP MOVE PURCHASER, INC. | First Lien - Term Loan A | 8.48% | SOFR (Q) | 4.75% | 2.00% | 2/4/2030 | 8,500 | | 8,470 | | 8,441 | | | Subtotal: Commercial Services & Supplies | | | | | | | 21,000 | | 20,882 | | 20,941 | | | Consumer Products | | | | | | | | | | | CLUTCH, INC. | First Lien - Term Loan A3 | 7.48% | SOFR (Q) | 3.75% | 2.00% | 11/13/2030 | 15,000 | | 14,924 | | 15,000 | | | TRU FRAGRANCE & BEAUTY LLC | First Lien - Term Loan A | 8.73% | SOFR (Q) | 5.00% | 1.50% | 3/21/2029 | 8,487 | | 8,526 | | 8,487 | | | Subtotal: Consumer Products | | | | | | | 23,487 | | 23,450 | | 23,487 | | | Consumer Services | | | | | | | | | | | AMERICAN PET RESORT, LLC | First Lien - Term Loan A3 | 8.07% | SOFR (Q) | 4.00% | 2.00% | 12/17/2030 | 12,500 | | 12,461 | | 12,500 | | | Subtotal: Consumer Services | | | | | | | 12,500 | | 12,461 | | 12,500 | | | Distribution | | | | | | | | | | | YUMI DSD MIDCO, LLC | First Lien - Term Loan A3 | 7.74% | SOFR (Q) | 4.00% | 1.50% | 8/25/2031 | 15,000 | | 14,889 | | 14,889 | | | Subtotal: Distribution | | | | | | | 15,000 | | 14,889 | | 14,889 | | | Healthcare Products | | | | | | | | | | | MICROBE FORMULAS LLC | First Lien | 9.50% | SOFR (M) | 5.50% | 1.00% | 4/3/2028 | 3,980 | | 3,995 | | 3,980 | | | Subtotal: Healthcare Products | | | | | | | 3,980 | | 3,995 | | 3,980 | | | Healthcare Services | | | | | | | | | | | NEULIFE REHABILITATION OF FLORIDA, INC. | First Lien | 8.23% | SOFR (Q) | 4.50% | 2.00% | 4/18/2031 | 10,000 | | 9,977 | | 10,000 | | | Subtotal: Healthcare Services | | | | | | | 10,000 | | 9,977 | | 10,000 | | | Industrial Products | | | | | | | | | | | AIR PRODUCTS AND CONTROLS, INC. | First Lien - Term Loan A3 | 7.73% | SOFR (Q) | 4.00% | 2.00% | 6/2/2031 | 4,938 | | 4,897 | | 4,938 | | | | | | | | | | | | | Subtotal: Industrial Products | | | | | | | 4,938 | | 4,897 | | 4,938 | | | IT Services | | | | | | | | | | | NGP ROBO OPCO, LLC | First Lien - Term Loan A3 | 7.73% | SOFR (Q) | 4.00% | 2.00% | 6/30/2031 | 6,000 | | 5,957 | | 6,000 | | | Subtotal: IT Services | | | | | | | 6,000 | | 5,957 | | 6,000 | | | Media & Marketing | | | | | | | | | | | BOND BRAND LOYALTY ULC | First Lien - Term Loan A | 8.63% | SOFR (Q) | 4.75% | 2.00% | 5/1/2028 | 8,729 | | 8,768 | | 8,721 | | | IGNITE VISIBILITY LLC | First Lien - Term Loan A | 8.48% | SOFR (Q) | 4.75% | 1.00% | 12/1/2028 | 5,000 | | 5,022 | | 5,000 | | | Subtotal: Media & Marketing | | | | | | | 13,729 | | 13,790 | | 13,721 | | | Research & Consulting Services | | | | | | | | | | | FS VECTOR LLC | First Lien - Term Loan A4 | 8.64% | SOFR (Q) | 4.75% | 1.00% | 4/26/2028 | 11,000 | | 10,937 | | 11,000 | | | Subtotal: Research & Consulting Services | | | | | | | 11,000 | | 10,937 | | 11,000 | | | Specialty Retail | | | | | | | | | | | ATS OPERATING, LLC | First Lien - Term Loan A | 8.99% | SOFR (Q) | 5.00% | 1.00% | 1/18/2028 | 5,250 | | 5,272 | | 5,250 | | | Subtotal: Specialty Retail | | | | | | | 5,250 | | 5,272 | | 5,250 | | | Total Investments | | | | | | | $ | 126,884 | | $ | 126,507 | | $ | 126,706 | |
1Represents the interest rate as of September 30, 2026. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate ("SOFR") and reset daily (D), monthly (M), quarterly (Q), or semiannually (S). For each investment, the Company has provided the spread over SOFR in effect at September 30, 2026. Certain investments are subject to an interest rate floor. 2Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of CapTrin. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein. 3The investment is structured as a first lien first out term loan. 4The rate presented represents a weighted average rate for borrowings under the facility as of September 30, 2026. Desert Star 2026 LLC
On September 21, 2026, the Company entered into the Amended and Restated Limited Liability Company Agreement of Desert Star 2026 LLC ("Desert Star") with Trinity. Desert Star is a joint venture established for the purpose of primarily investing in loans and debt instruments with a focus on technology. All investment and operational decisions for Desert Star are made by Desert Star's board of managers, which consists of equal representation from both joint venture partners. The Company owns a 12.5% equity interest in Desert Star and made a $25.0 million capital commitment. As of September 30, 2026, approximately $64.0 million of capital commitments were funded, of which $8.0 million was funded by the Company.
On September 22, 2026, Desert Star entered into a credit agreement relating to its special purpose vehicle financing credit facility (the "Desert Star Credit Facility") to provide additional liquidity to support its investment and operational activities. The Desert Star Credit Facility is secured by a pledge of 100% of the equity interest in Desert Star 2026 Funding, LLC ("Desert Star Funding"), a wholly owned subsidiary of Desert Star, and Desert Star Funding's assets. The Desert Star Credit Facility includes an initial commitment of $100.0 million. Borrowings under the Desert Star Credit Facility bear interest at a rate equal to SOFR plus 2.50% per annum. The Desert Star Facility has a reinvestment period until September 22, 2028 and matures on September 22, 2030.
As of September 30, 2026, Desert Star had total assets of $133.8 million. Desert Star currently has approximately $128.2 million of debt investments at fair value. Below is certain summarized financial information for Desert Star as of September 30, 2026 and for the six months ended September 30, 2026 (amounts in thousands):
| | | | | | | Selected Balance Sheet Information: | September 30, 2026 | Investments, at fair value (cost $128,168) | $ | 128,183 | | | Cash and cash equivalents | 3,176 | | | Interest receivable | 1,450 | | | Deferred financing costs and other assets | 998 | | | Total assets | $ | 133,807 | | | | | Senior credit facility payable | $ | 70,000 | | | Other liabilities | 341 | | | Total liabilities | $ | 70,341 | | | Members' equity | 63,466 | | | Total liabilities and members' equity | $ | 133,807 | |
| | | | | | | | | | | Period from September 21, 2026 (commencement of operations) through | | Selected Statement of Operations Information: | | | September 30, 2026 | | Total revenues | | | $ | 233 | | | Total expenses | | | (781) | | | Net investment loss | | | $ | (548) | | | Net unrealized appreciation | | | 14 | | | | | | | Net increase in members' equity resulting from operations | | | $ | (534) | |
Below is a listing of the individual loans in Desert Star's portfolio as of September 30, 2026 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Portfolio Company | Type of Investment | Current Interest Rate1 | Maturity | Principal | Cost | Fair Value2 | | | Coupon | Reference | Spread | Floor | | | | | | Artificial Intelligence ("AI") Automation & Infrastructure | | | | | | | | | | | AUGMENTED REALITY CONCEPTS, INC. | First Lien | 11.30 | % | SOFR (Q) | 7.32 | % | 1.00 | % | 6/18/2029 | $ | 4,487 | | $ | 4,452 | | $ | 4,463 | | | IGRAFX, LLC | First Lien | 9.65 | % | SOFR (M) | 5.75 | % | 1.00 | % | 11/12/2028 | $ | 2,481 | | $ | 2,477 | | $ | 2,486 | | | Subtotal: AI Automation & Infrastructure | | | | | | | $ | 6,968 | | $ | 6,929 | | $ | 6,949 | | | Consumer Products & Services | | | | | | | | | | | CLUTCH, INC. | First Lien - Term Loan B & Term Loan C | 9.90 | % | SOFR (Q) | 6.16 | % | 2.00 | % | 6/30/2031 | $ | 9,000 | | $ | 9,089 | | $ | 9,090 | | | Subtotal: Consumer Products & Services | | | | | | | $ | 9,000 | | $ | 9,089 | | $ | 9,090 | | | Healthcare Technology | | | | | | | | | | | CLEARWAVE PARENT, INC | First Lien | 11.17 | % | SOFR (M) | 7.27 | % | 0.75 | % | 10/22/2027 | $ | 3,728 | | $ | 3,696 | | $ | 3,696 | | | LIGHTNING STEP TECHNOLOGIES, LLC | First Lien | 10.98 | % | SOFR (M) | 7.08 | % | 1.00 | % | 8/1/2030 | $ | 9,000 | | $ | 8,904 | | $ | 8,889 | | | Subtotal: Healthcare Technology | | | | | | | $ | 12,728 | | $ | 12,600 | | $ | 12,585 | | | Other Healthcare Services | | | | | | | | | | | RENALOGIC HOLDINGS, INC. | First Lien | 9.82 | % | SOFR (Q) | 5.75 | % | 1.00 | % | 6/30/2030 | $ | 9,406 | | $ | 9,306 | | $ | 9,306 | | | Subtotal: Other Healthcare Services | | | | | | | $ | 9,406 | | $ | 9,306 | | $ | 9,306 | | | Software as a Service ("SaaS") | | | | | | | | | | | AXOSOFT, LLC (dba GitKraken) | First Lien | 9.58 | % | SOFR (Q) | 5.75 | % | 1.00 | % | 9/3/2031 | $ | 9,750 | | $ | 9,654 | | $ | 9,654 | | | CCP INTERGALACTIC BUYER, LLC | First Lien | 9.26 | % | SOFR (Q) | 5.50 | % | 1.00 | % | 9/15/2030 | $ | 3,772 | | $ | 3,759 | | $ | 3,748 | | | CHIROHD, LLC | First Lien | 9.51 | % | SOFR (Q) | 5.75 | % | 1.00 | % | 8/7/2031 | $ | 4,500 | | $ | 4,456 | | $ | 4,456 | | | CONSENSUS SALES, LLC | First Lien | 11.07 | % | SOFR (Q) | 7.25 | % | 1.00 | % | 6/5/2031 | $ | 4,425 | | $ | 4,478 | | $ | 4,501 | | | CW ACQUISITIONSCO (dba Caseworthy) | First Lien | 12.36 | % | SOFR (Q) | 8.50 | % | 1.00 | % | 6/12/2032 | $ | 5,000 | | $ | 5,048 | | $ | 5,033 | | | EYELIT TECHNOLOGIES, INC | First Lien | 9.68 | % | SOFR (M) | 6.00 | % | 1.00 | % | 11/4/2029 | $ | 2,405 | | $ | 2,352 | | $ | 2,351 | | | HOMETOWN TICKETING, INC. | First Lien | 11.82 | % | SOFR (Q) | 7.74 | % | 1.00 | % | 11/25/2029 | $ | 4,950 | | $ | 4,940 | | $ | 4,919 | | | KIBO SOFTWARE, INC. | First Lien | 9.49 | % | SOFR (Q) | 5.75 | % | 1.00 | % | 5/22/2031 | $ | 8,750 | | $ | 8,801 | | $ | 8,777 | | | ORGCHART, LLC | First Lien | 9.40 | % | SOFR (M) | 5.50 | % | 1.00 | % | 1/14/2031 | $ | 4,975 | | $ | 4,990 | | $ | 5,025 | | | SERVICETRADE, INC. | First Lien | 8.55 | % | SOFR (Q) | 4.75 | % | 1.00 | % | 8/15/2029 | $ | 5,400 | | $ | 5,355 | | $ | 5,344 | | | SOCI, INC. | First Lien | 11.75 | % | SOFR (S) | 7.90 | % | 0.75 | % | 10/3/2029 | $ | 7,742 | | $ | 7,723 | | $ | 7,706 | | | TICKETURE LLC | First Lien | 10.32 | % | SOFR (Q) | 6.25 | % | 1.00 | % | 7/25/2030 | $ | 10,688 | | $ | 10,629 | | $ | 10,582 | | | XYTECH SYSTEMS, LLC | First Lien | 10.01 | % | SOFR (Q) | 6.25 | % | 1.00 | % | 2/26/2030 | $ | 7,565 | | $ | 7,446 | | $ | 7,435 | | | Subtotal: SaaS | | | | | | | $ | 79,922 | | $ | 79,631 | | $ | 79,531 | | | Supply Chain Technology | | | | | | | | | | | INKTAVO, LLC | First Lien | 10.82 | % | SOFR (Q) | 6.75 | % | 1.00 | % | 10/15/2031 | $ | 10,746 | | $ | 10,613 | | $ | 10,722 | | | Subtotal: Supply Chain Technology | | | | | | | $ | 10,746 | | $ | 10,613 | | $ | 10,722 | | | Total Investments | | | | | | | $ | 128,770 | | $ | 128,168 | | $ | 128,183 | |
1.Represents the interest rate as of September 30, 2026. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate ("SOFR") and reset daily (D), monthly (M), quarterly (Q), or semiannually (S). For each investment, the Company has provided the spread over SOFR in effect at September 30, 2026. Certain investments are subject to an interest rate floor. 2.Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of Desert Star. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein.
|