| Schedule of Company's Investment |
At September 30, 2026, the Company’s investments were categorized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level |
|
Basis for Determining Fair Value |
|
Bank Debt (1) |
|
|
Equity
Securities |
|
|
Total |
|
2 |
|
Other direct and indirect observable market inputs (2) |
|
$ |
2,720,122 |
|
|
$ |
— |
|
|
$ |
2,720,122 |
|
3 |
|
Independent third-party valuation sources that
employ significant unobservable inputs |
|
|
166,533,102 |
|
|
|
918,509 |
|
|
|
167,451,611 |
|
3 |
|
Advisor valuations with significant unobservable
inputs |
|
|
— |
|
|
|
3,534 |
|
|
|
3,534 |
|
Total |
|
|
|
$ |
169,253,224 |
|
|
$ |
922,043 |
|
|
$ |
170,175,267 |
|
(1)Includes senior secured loans (2)For example, quoted prices in inactive markets or quotes for comparable investments At December 31, 2025, the Company’s investments were categorized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level |
|
Basis for Determining Fair Value |
|
Bank Debt (1) |
|
|
Equity
Securities |
|
|
Total |
|
2 |
|
Other direct and indirect observable market inputs (2) |
|
$ |
3,777,993 |
|
|
$ |
— |
|
|
$ |
3,777,993 |
|
3 |
|
Independent third-party valuation sources that employ significant unobservable inputs |
|
|
202,732,212 |
|
|
|
3,545,464 |
|
|
|
206,277,676 |
|
3 |
|
Advisor valuations with significant unobservable inputs |
|
|
— |
|
|
|
224 |
|
|
|
224 |
|
Total |
|
|
|
$ |
206,510,205 |
|
|
$ |
3,545,688 |
|
|
$ |
210,055,893 |
|
(1)Includes senior secured loans (2)For example, quoted prices in inactive markets or quotes for comparable investments
|
| Schedule of Unobservable Inputs |
Unobservable inputs used in the fair value measurement of Level 3 investments as of September 30, 2026 included the following:
|
|
|
|
|
|
|
|
|
|
|
Asset Type |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (Weighted Avg.) (1) |
Bank Debt |
|
$ |
144,294,809 |
|
|
Income approach |
|
Discount rate |
|
8.7% - 32.0% (12.3%) |
|
|
|
11,499,189 |
|
|
Market comparable companies |
|
Revenue multiples |
|
0.3x - 5.0x (2.0x) |
|
|
|
6,777,130 |
|
|
Market comparable companies |
|
EBITDA multiples |
|
2.8x - 8.0x (5.7x) |
|
|
|
3,961,974 |
|
|
Market quotations |
|
Indicative bid/ask quotes |
|
1 (1) |
Equity |
|
|
779,413 |
|
|
Market comparable companies |
|
EBITDA multiples |
|
2.8x - 9.5x (9.5x) |
|
|
|
106,290 |
|
|
Market comparable companies |
|
Revenue multiples |
|
0.3x - 9.5x (5.6x) |
|
|
|
36,340 |
|
|
Option Pricing Model |
|
EBITDA/Revenue multiples |
|
3.0x - 7.3x (3.0x) |
|
|
|
|
|
|
|
Implied volatility |
|
45.0% - 60.0% (45.1%) |
|
|
|
|
|
|
|
Term |
|
1.0 year - 2.0 years (2.0 years) |
|
|
$ |
167,455,145 |
|
|
|
|
|
|
|
(1)Weighted by fair value Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:
|
|
|
|
|
Input |
|
Impact to Value if Input Increases |
|
Impact to Value if Input Decreases |
Discount rate |
|
Decrease |
|
Increase |
Revenue multiples |
|
Increase |
|
Decrease |
EBITDA multiples |
|
Increase |
|
Decrease |
Book value multiples |
|
Increase |
|
Decrease |
Implied volatility |
|
Increase |
|
Decrease |
Term |
|
Increase |
|
Decrease |
Yield |
|
Increase |
|
Decrease |
Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2025 included the following:
|
|
|
|
|
|
|
|
|
|
|
Asset Type |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (Weighted Avg.) (1) |
Bank Debt |
|
$ |
189,897,821 |
|
|
Income approach |
|
Discount rate |
|
7.7% - 28.3% (10.6%) |
|
|
|
5,408,464 |
|
|
Market comparable companies |
|
Revenue multiples |
|
0.4x - 3.3x (1.7x) |
|
|
|
3,902,612 |
|
|
Market quotations |
|
Indicative bid/ask quotes |
|
1(1) |
|
|
|
3,523,315 |
|
|
Market comparable companies |
|
EBITDA multiples |
|
6.5x - 10.0x (8.8x) |
Equity |
|
|
1,971,829 |
|
|
Market comparable companies |
|
EBITDA multiples |
|
7.0x - 19.3x (19.3x) |
|
|
|
1,466,336 |
|
|
Market comparable companies |
|
Revenue multiples |
|
0.4x - 3.3x (0.5x) |
|
|
|
73,197 |
|
|
Income approach |
|
Discount rate |
|
15.0% (15.0%) |
|
|
|
34,326 |
|
|
Option Pricing Model |
|
EBITDA/Revenue multiples |
|
3.1x - 7.3x (3.1x) |
|
|
|
|
|
|
|
Implied volatility |
|
45.0% - 60.0% (45.1%) |
|
|
|
|
|
|
|
Term |
|
1.0 year - 2.0 years (2.0 years) |
|
|
$ |
206,277,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________________ (1)Weighted by fair value
|
| Schedule of Changes in Investments |
Changes in investments categorized as Level 3 during the three months ended September 30, 2026 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Third-Party Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
186,891,702 |
|
|
$ |
1,499,602 |
|
|
$ |
188,391,304 |
|
Net realized and unrealized gains (losses) |
|
|
(3,914,383 |
) |
|
|
(581,093 |
) |
|
|
(4,495,476 |
) |
Acquisitions (1) |
|
|
2,189,805 |
|
|
|
— |
|
|
|
2,189,805 |
|
Dispositions |
|
|
(18,634,022 |
) |
|
|
— |
|
|
|
(18,634,022 |
) |
Ending balance |
|
$ |
166,533,102 |
|
|
$ |
918,509 |
|
|
$ |
167,451,611 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
(4,101,324 |
) |
|
$ |
(581,093 |
) |
|
$ |
(4,682,417 |
) |
__________________________ (1)Includes payments received in kind and accretion of original issue and market discounts 2. Summary of Significant Accounting Policies (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Designee Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Net realized and unrealized gains (losses) |
|
|
— |
|
|
|
3,310 |
|
|
|
3,310 |
|
Ending balance |
|
$ |
— |
|
|
$ |
3,534 |
|
|
$ |
3,534 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
— |
|
|
$ |
3,310 |
|
|
$ |
3,310 |
|
Changes in investments categorized as Level 3 during the nine months ended September 30, 2026 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Third-Party Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
202,732,212 |
|
|
$ |
3,545,464 |
|
|
$ |
206,277,676 |
|
Net realized and unrealized gains (losses) |
|
|
(11,080,050 |
) |
|
|
(1,682,964 |
) |
|
|
(12,763,014 |
) |
Acquisitions (1) |
|
|
9,519,692 |
|
|
|
1,027,800 |
|
|
|
10,547,492 |
|
Dispositions |
|
|
(34,394,912 |
) |
|
|
— |
|
|
|
(34,394,912 |
) |
Transfers out of Level 3 (2) |
|
|
(243,840 |
) |
|
|
(1,971,791 |
) |
|
|
(2,215,631 |
) |
Ending balance |
|
$ |
166,533,102 |
|
|
$ |
918,509 |
|
|
$ |
167,451,611 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
(11,061,614 |
) |
|
$ |
(1,683,603 |
) |
|
$ |
(12,745,217 |
) |
__________________________ (1)Includes payments received in kind and accretion of original issue and market discounts (2)Comprised of two investments that were transferred to Level 2 due to increased observable market activity and one investment transferred to Valuation Designee Valuation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Designee Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Net realized and unrealized gains (losses) |
|
|
— |
|
|
|
3,675 |
|
|
|
3,675 |
|
Dispositions |
|
|
— |
|
|
|
(1,972,156 |
) |
|
|
(1,972,156 |
) |
Transfers into Level 3 (1) |
|
|
— |
|
|
|
1,971,791 |
|
|
|
1,971,791 |
|
Ending balance |
|
$ |
— |
|
|
$ |
3,534 |
|
|
$ |
3,534 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
— |
|
|
$ |
(135,252 |
) |
|
$ |
(135,252 |
) |
__________________________ (1)Comprised of one investment that was transferred from Independent Third-Party Valuation. 2. Summary of Significant Accounting Policies (Continued) Changes in investments categorized as Level 3 during the three months ended September 30, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Third-Party Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
232,516,925 |
|
|
$ |
5,455,054 |
|
|
$ |
237,971,979 |
|
Net realized and unrealized gains (losses) |
|
|
292,746 |
|
|
|
(667,044 |
) |
|
|
(374,298 |
) |
Acquisitions (1) |
|
|
7,461,694 |
|
|
|
— |
|
|
|
7,461,694 |
|
Dispositions |
|
|
(19,001,722 |
) |
|
|
— |
|
|
|
(19,001,722 |
) |
Transfers into Level 3 (2) |
|
|
748,008 |
|
|
— |
|
|
|
748,008 |
|
Ending balance |
|
$ |
222,017,651 |
|
|
$ |
4,788,010 |
|
|
$ |
226,805,661 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
(2,155,505 |
) |
|
$ |
(667,044 |
) |
|
$ |
(2,822,548 |
) |
__________________________ (1)Includes payments received in kind and accretion of original issue and market discounts. (2)Comprised of two investments that were transferred from Level 2 due to reduced number of market quotes 2. Summary of Significant Accounting Policies (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Designee Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Ending balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Changes in investments categorized as Level 3 during the nine months ended September 30, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Third-Party Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
223,632,250 |
|
|
$ |
117,002 |
|
|
$ |
223,749,252 |
|
Net realized and unrealized gains (losses) |
|
|
(6,296,327 |
) |
|
|
112,792 |
|
|
|
(6,183,535 |
) |
Acquisitions (1) |
|
|
49,766,816 |
|
|
|
4,723,376 |
|
|
|
54,490,192 |
|
Dispositions |
|
|
(45,934,767 |
) |
|
|
(165,160 |
) |
|
|
(46,099,927 |
) |
Transfers into Level 3 (2) |
|
|
849,679 |
|
|
— |
|
|
|
849,679 |
|
Ending balance |
|
$ |
222,017,651 |
|
|
$ |
4,788,010 |
|
|
$ |
226,805,661 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
(3,557,071 |
) |
|
$ |
112,792 |
|
|
$ |
(3,444,279 |
) |
__________________________ (1)Includes payments received in kind and accretion of original issue and market discounts. (2)Comprised of two investments that were transferred from Level 2 due to reduced number of market quotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Designee Valuation |
|
|
|
Bank Debt |
|
|
Equity
Securities |
|
|
Total |
|
Beginning balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Ending balance |
|
$ |
— |
|
|
$ |
224 |
|
|
$ |
224 |
|
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|