v3.26.3
Investment Valuation and Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Investment Valuation and Fair Value Measurements [Abstract]  
Investment Valuation and Fair Value Measurements

3. Investment Valuation and Fair Value Measurements

Fair Value Inputs and Methodologies

The Fund’s determination of fair value is based on all available factors and the best information available in the circumstances. Fair value determinations incorporate assumptions that the Fund believes market participants would use in valuing the investments and involves a significant degree of judgment.

The General Partner may fair value investments using the market approach, income approach or transaction price.

For investments in equity issued by privately held companies (“Portfolio Companies”), the standard inputs generally considered by the General Partner include one or a combination of, but not limited to, the following inputs:

•
recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers
•
recapitalizations and other transactions across the capital structure
•
market multiples of comparable issuers
•
future cash flows discounted to present value and adjusted as appropriate for liquidity, credit, and/or market risks
•
quoted prices for similar investments or assets in active markets
•
other risk factors
•
audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Portfolio Company
•
changes in valuation of relevant indices, relevant market news and other public sources
•
known secondary market transactions in the Portfolio Company’s interests.

The indications of value derived based upon the inputs and valuation methodologies used are evaluated and weighted, as appropriate, considering the reasonableness of the range of value indicated by the methods. The fair value of an investment is the point within the range that the General Partner believes is the most representative of fair value. However, because of the inherent uncertainty of valuations, the estimated fair value may differ significantly from the values that would have been used had a ready market for the investment existed, and the differences could be material.

 

Fair Value Hierarchy

Various inputs are used in determining the fair value of financial instruments at the measurement date. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily observable inputs or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment in measuring fair value.

These inputs to valuation techniques are categorized into the fair value hierarchy as follows:

•
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities as of the reporting date;
•
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly as of the reporting date, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, and inputs other than quoted prices that are observable for the asset or liabilities; and
•
Level 3: Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability as of the reporting date and include situations where there is little, if any, market activity for the investment and the General Partner’s assumptions used in determining the fair value of the asset or liability.

The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The General Partner’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in that asset or liability.

Fair Value Measurements

The following tables summarize the Fund’s investments categorized in the fair value hierarchy:

 

 

 

September 30, 2026

 

Investments

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Portfolio Companies

 

$

—

 

 

$

—

 

 

$

1,681,240

 

 

$

1,681,240

 

Money Market Fund

 

 

203,536

 

 

 

—

 

 

 

—

 

 

 

203,536

 

Total

 

$

203,536

 

 

$

—

 

 

$

1,681,240

 

 

$

1,884,776

 

 

 

 

 

December 31, 2025

 

Investments

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Portfolio Companies

 

$

—

 

 

$

—

 

 

$

980,481

 

 

$

980,481

 

Money Market Fund

 

 

369,083

 

 

 

—

 

 

 

—

 

 

 

369,083

 

Total

 

$

369,083

 

 

$

—

 

 

$

980,481

 

 

$

1,349,564

 

 

 

The following table summarizes the valuation techniques and significant inputs used to determine the valuation of investments categorized in Level 3 of the fair value hierarchy as of September 30, 2026.

 

Investments

 

Fair Value

 

 

Valuation Techniques

 

Unobservable Inputs

 

Ranges

 

Weighted
Average

 

 

Impact to
Valuation
from an
Increase
in Input(a)

Portfolio Companies

 

$

1,656,009

 

 

Discounted Cash Flow Method

 

Revenue Growth Rate

 

(11.0)% - 51.0%

 

 

13.6

%

 

Increase

 

 

 

 

 

 

EBITDA Margin

 

(22.8)% - 74.7%

 

 

38.4

%

 

Increase

 

 

 

 

 

 

Weighted Average Cost of Capital

 

11.2% - 33.8%

 

 

20.4

%

 

Decrease

 

 

 

 

 

 

Terminal Revenue Multiple

 

6.8x - 10.0x

 

7.7x

 

 

Increase

 

 

 

 

 

 

Terminal EBITDA Multiple

 

10.0x - 28.0x

 

17.1x

 

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Approach

 

Revenue Multiple

 

4.0x - 13.0x

 

7.9x

 

 

Increase

 

 

 

 

 

 

EBITDA Multiple

 

10.8x - 30.0x

 

17.3x

 

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,498

 

 

Market Adjusted OPM Backsolve

 

Market Equity Adjustment⁽ᵇ⁾

 

0.5%

 

N/A

 

 

Increase

 

 

 

 

 

 

 

Volatility

 

55.0% - 65.0%

 

 

60.0

%

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock Equivalent

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,733

 

 

Transaction Price

 

N/A

 

 

 

 

 

 

 

 

(a)
Represents the directional change in the fair value of the Level 3 investment(s) that would have resulted from an increase in the corresponding input at period end. A decrease in the unobservable input would have had the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.
(b)
Represents the adjustment applied to reflect changes in market valuations of comparable public companies between the date of the Portfolio Company’s most recent financing or transaction and the measurement date.

 

The following table summarizes the valuation techniques and significant inputs used to determine the valuation of investments categorized in Level 3 of the fair value hierarchy as of December 31, 2025.

 

Investments

 

Fair Value

 

 

Valuation Techniques

 

Unobservable Inputs

 

Ranges

 

Weighted
Average

 

 

Impact to
Valuation
from an
Increase
in Input(a)

Portfolio Companies

 

$

928,187

 

 

Discounted Cash Flow Method

 

Revenue Growth Rate

 

(3.0)% - 38.9%

 

 

13.0

%

 

Increase

 

 

 

 

 

 

EBITDA Margin

 

(0.2)% - 72.8%

 

 

42.6

%

 

Increase

 

 

 

 

 

 

Weighted Average Cost of Capital

 

11.8% - 32.9%

 

 

18.9

%

 

Decrease

 

 

 

 

 

 

Terminal Revenue Multiple

 

7.5x - 10.0x

 

8.0x

 

 

Increase

 

 

 

 

 

 

Terminal EBITDA Multiple

 

10.0x - 23.0x

 

18.1x

 

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Approach

 

Revenue Multiple

 

5.0x - 13.0x

 

8.6x

 

 

Increase

 

 

 

 

 

 

EBITDA Multiple

 

9.8x - 31.5x

 

19.6x

 

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,294

 

 

Transaction Price

 

N/A

 

 

 

 

 

 

 

 

(a)
Represents the directional change in the fair value of the Level 3 investment(s) that would have resulted from an increase in the corresponding input at period end. A decrease in the unobservable input would have had the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

The following tables provide a reconciliation of the Fund’s Level 3 investments for which significant unobservable inputs were used in determining fair value for the three and nine months ended September 30, 2026 and 2025.

 

 

 

For the Three Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

 

Investments
in Portfolio
Companies

 

 

Investments
in Portfolio
Companies

 

Balance, beginning of period

 

$

1,604,751

 

 

$

388,044

 

Purchases

 

 

16,743

 

 

 

332,564

 

Sales

 

 

—

 

 

 

—

 

Net realized gain

 

 

—

 

 

 

—

 

Net change in unrealized appreciation (depreciation)(a)

 

 

59,746

 

 

 

66,526

 

Balance, end of period

 

$

1,681,240

 

 

$

787,134

 

Net change in unrealized appreciation (depreciation) on
   investments still held at reporting date

 

 

59,746

 

 

 

66,526

 

 

(a)
Included in the related Net change in unrealized appreciation (depreciation) in the Consolidated Statements of Operations.

 

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

 

Investments
in Portfolio
Companies

 

 

Investments
in Portfolio
Companies

 

Balance, beginning of period

 

$

980,481

 

 

$

—

 

Purchases

 

 

598,908

 

 

 

673,417

 

Sales

 

 

—

 

 

 

—

 

Net realized gain

 

 

—

 

 

 

—

 

Net change in unrealized appreciation (depreciation)(a)

 

 

101,851

 

 

 

113,717

 

Balance, end of period

 

$

1,681,240

 

 

$

787,134

 

Net change in unrealized appreciation (depreciation) on
   investments still held at reporting date

 

 

101,851

 

 

 

113,717

 

 

(a)
Included in the related Net change in unrealized appreciation (depreciation) in the Consolidated Statements of Operations.