| 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 September 30, 2026 and December 31, 2025 were as follows:
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Fair Value Measurements at September 30, 2026 Using |
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Investment Type |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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|
Significant
Other
Observable
Inputs (Level 2) |
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|
Significant
Unobservable
Inputs (Level 3) |
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Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
364,030,020 |
|
|
$ |
364,030,020 |
|
Senior Secured Notes |
|
|
- |
|
|
|
- |
|
|
|
30,910,898 |
|
|
|
30,910,898 |
|
Second Lien Senior Secured Loans |
|
|
- |
|
|
|
- |
|
|
|
1,317,108 |
|
|
|
1,317,108 |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
2,860,000 |
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|
|
2,860,000 |
|
Preferred Stock |
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|
- |
|
|
|
- |
|
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|
500,000 |
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|
|
500,000 |
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Total |
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$ |
- |
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|
$ |
- |
|
|
$ |
399,618,026 |
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|
$ |
399,618,026 |
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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 |
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|
|
37,473,499 |
|
Second Lien Senior Secured Loans |
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|
- |
|
|
|
- |
|
|
|
1,447,186 |
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|
|
1,447,186 |
|
Warrants |
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|
- |
|
|
|
- |
|
|
|
1,171,605 |
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|
|
1,171,605 |
|
Preferred Stock |
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|
- |
|
|
|
- |
|
|
|
500,000 |
|
|
|
500,000 |
|
Total |
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$ |
- |
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|
$ |
- |
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|
$ |
333,311,787 |
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|
$ |
333,311,787 |
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| 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 September 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 September 30, 2026 and December 31, 2025.
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|
Investment Type |
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Fair Value as of
September 30, 2026 |
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Valuation
Techniques/Methodologies |
|
Unobservable Input |
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Range |
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
295,018,909 |
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Discounted Cash Flow |
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Discount Rate |
|
7.01% - 20.43% |
|
|
12.45 |
% |
First Lien Senior Secured Loans |
|
|
69,011,111 |
|
|
Recent Transaction |
|
N/A |
|
N/A |
|
N/A |
|
Senior Secured Notes |
|
|
30,910,898 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.80% - 12.58% |
|
|
11.15 |
% |
Second Lien Senior Secured Loans |
|
|
1,317,108 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
18.89% - 20.89% |
|
|
19.89 |
% |
Warrants |
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|
2,860,000 |
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|
Option Pricing Model |
|
Volatility Factor |
|
38.00% - 75.00% |
|
|
54.10 |
% |
Preferred Stock |
|
|
500,000 |
|
|
Market Approach |
|
Current Value |
|
2.00x |
|
2.00x |
|
Total |
|
$ |
399,618,026 |
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|
Investment Type |
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Fair Value as of
December 31, 2025 |
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Valuation
Techniques/Methodologies |
|
Unobservable Input |
|
Range |
|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
249,770,789 |
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|
Discounted Cash Flow |
|
Discount Rate |
|
8.40% - 23.25% |
|
|
12.81 |
% |
First Lien Senior Secured Loans |
|
|
42,948,708 |
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|
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 |
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|
Discounted Cash Flow |
|
Discount Rate |
|
18.39% - 20.39% |
|
|
19.64 |
% |
Warrants |
|
|
826,250 |
|
|
Enterprise Value |
|
Revenue Multiple |
|
1.75x - 5.25x |
|
4.52x |
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Warrants |
|
|
345,355 |
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|
Option Pricing Model |
|
Volatility Factor |
|
49.00% - 72.00% |
|
|
51.51 |
% |
Preferred Stock |
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|
500,000 |
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|
Market Approach |
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Current Value |
|
1.75x |
|
1.75x |
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Total |
|
$ |
333,311,787 |
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(1) The weighted average is calculated based on the fair value of each investment.
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| 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 nine months ended September 30, 2026 and 2025:
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First Lien
Senior Secured
Loans |
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|
Senior
Secured Notes |
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|
Second Lien Senior Secured Loans |
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|
Warrants |
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|
Preferred
Stock |
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Total |
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Fair Value as of December 31, 2025 |
|
$ |
292,719,497 |
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|
$ |
37,473,499 |
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|
$ |
1,447,186 |
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|
$ |
1,171,605 |
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|
$ |
500,000 |
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$ |
333,311,787 |
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Purchases |
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|
163,107,507 |
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|
|
2,715,658 |
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|
- |
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|
1,583,321 |
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|
- |
|
|
|
167,406,486 |
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Accretion of discount and fees (amortization of premium), net |
|
|
1,914,713 |
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|
|
487,808 |
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|
|
- |
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|
- |
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|
|
- |
|
|
|
2,402,521 |
|
PIK interest |
|
|
3,260,690 |
|
|
|
95,928 |
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|
|
36,572 |
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|
|
- |
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|
|
- |
|
|
|
3,393,190 |
|
Proceeds from sales of investments and principal repayments |
|
|
(93,993,284 |
) |
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|
(9,431,091 |
) |
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|
(158,304 |
) |
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|
- |
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|
- |
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|
(103,582,679 |
) |
Net realized gain (loss) on investments |
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|
(67,500 |
) |
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|
- |
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|
- |
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|
|
- |
|
|
|
- |
|
|
|
(67,500 |
) |
Net change in unrealized appreciation (depreciation) on investments |
|
|
(2,911,603 |
) |
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|
(430,904 |
) |
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|
(8,346 |
) |
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|
105,074 |
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|
- |
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|
(3,245,779 |
) |
Balance as of September 30, 2026 |
|
$ |
364,030,020 |
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|
$ |
30,910,898 |
|
|
$ |
1,317,108 |
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|
$ |
2,860,000 |
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|
$ |
500,000 |
|
|
$ |
399,618,026 |
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Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
September 30, 2026 |
|
$ |
(2,380,901 |
) |
|
$ |
(152,692 |
) |
|
$ |
(8,346 |
) |
|
$ |
105,074 |
|
|
$ |
- |
|
|
$ |
(2,436,865 |
) |
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|
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|
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|
First Lien
Senior Secured
Loans |
|
|
Senior
Secured Notes |
|
|
Second Lien Senior Secured Loans |
|
|
Warrants |
|
|
Preferred
Stock |
|
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Total |
|
Fair Value as of December 31, 2024 |
|
$ |
239,860,206 |
|
|
$ |
34,656,192 |
|
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$ |
- |
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|
$ |
225,000 |
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|
$ |
500,000 |
|
|
$ |
275,241,398 |
|
Purchases |
|
|
120,405,247 |
|
|
|
3,600,000 |
|
|
|
- |
|
|
|
904,255 |
|
|
|
- |
|
|
|
124,909,502 |
|
Accretion of discount and fees (amortization of premium), net |
|
|
1,857,239 |
|
|
|
239,798 |
|
|
|
8,655 |
|
|
|
- |
|
|
|
- |
|
|
|
2,105,692 |
|
PIK interest |
|
|
1,311,017 |
|
|
|
174,112 |
|
|
|
14,212 |
|
|
|
- |
|
|
|
- |
|
|
|
1,499,341 |
|
Proceeds from sales of investments and principal repayments |
|
|
(91,045,553 |
) |
|
|
- |
|
|
|
(1,545,432 |
) |
|
|
- |
|
|
|
- |
|
|
|
(92,590,985 |
) |
Net realized gain (loss) on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
(26,642 |
) |
|
|
370,788 |
|
|
|
(31,296 |
) |
|
|
(84,316 |
) |
|
|
- |
|
|
|
228,534 |
|
Transfers between investment types |
|
|
(3,026,886 |
) |
|
|
- |
|
|
|
3,026,886 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Balance as of September 30, 2025 |
|
$ |
269,334,628 |
|
|
$ |
39,040,890 |
|
|
$ |
1,473,025 |
|
|
$ |
1,044,939 |
|
|
$ |
500,000 |
|
|
$ |
311,393,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on
Level 3 investments still held as of
September 30, 2025 |
|
$ |
(26,642 |
) |
|
$ |
370,788 |
|
|
$ |
(31,296 |
) |
|
$ |
(84,316 |
) |
|
$ |
- |
|
|
$ |
228,534 |
|
|