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INVESTMENTS (Tables)
 6 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of March 31, 2023 and September 30, 2022, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of March 31, 2023:
Secured first lien debt
$498,947 $— $— $498,947 
Secured second lien debt
117,438 — — 117,438 
Unsecured debt
2,372 2,336 
(B)
— 

36 
Preferred equity
28,298 — — 

28,298 
Common equity/equivalents
31,471 
(A)
— 27 
(C)
31,444 
Total Investments as of March 31, 2023
$678,526 $2,336 $27 $676,163 
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of September 30, 2022:
Secured first lien debt
$463,858 $— $— $463,858 
Secured second lien debt
115,928 — — 115,928 
Unsecured debt
55 — — 

55 
Preferred equity
27,046 — — 

27,046 
Common equity/equivalents
36,331 
(A)
— 

58 
(C)
36,273 
Total Investments as of September 30, 2022
$643,218 $— $58 $643,160 
(A)Excludes our investment in Leeds with fair values of $0.2 million and $6.4 million as of March 31, 2023 and September 30, 2022, respectively. Leeds was valued using NAV as a practical expedient.
(B)Fair value was determined based on the closing market price of B. Riley 6.75% senior notes which are traded on the Nasdaq Global Select Market under the trading symbol RILYO.
(C)Fair value was determined based on the closing market price of shares of Funko, Inc. (our units in Funko can be converted into common shares of Funko, Inc.) at the reporting date less a discount for lack of marketability as our investment was subject to certain restrictions.
The following table presents our portfolio investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy and carried at fair value as of March 31, 2023 and September 30, 2022, by caption on our accompanying Consolidated Statements of Assets and Liabilities and by security type:
Total Recurring Fair Value Measurements Reported in
Consolidated Statements of Assets and Liabilities
Using Significant Unobservable Inputs (Level 3)
March 31, 2023September 30, 2022
Non-Control/Non-Affiliate Investments
Secured first lien debt$447,479 $413,631 
Secured second lien debt109,933 108,263 
Unsecured debt36 
(A)
55 
Preferred equity19,135 17,719 
Common equity/equivalents22,236 
(B)
28,688 
(C)
Total Non-Control/Non-Affiliate Investments
$598,819 $568,356 
Affiliate Investments
Secured first lien debt$35,650 $34,804 
Preferred equity5,350 3,640 
Common equity/equivalents1,110 647 
Total Affiliate Investments$42,110 $39,091 
Control Investments
Secured first lien debt$15,818 $15,423 
Secured second lien debt7,505 7,665 
Preferred equity3,813 5,687 
Common equity/equivalents8,098 6,938 
Total Control Investments
$35,234 $35,713 
Total Investments at Fair Value Using Level 3 Inputs$676,163 $643,160 
(A)Excludes our investment in B. Riley with a fair value of $2.3 million as of March 31, 2023. B. Riley was valued using Level 1 inputs.
(B)Excludes our investments in Leeds and Funko with fair values of $0.2 million and $27 thousand, respectively, as of March 31, 2023. Leeds was valued using NAV as a practical expedient, and Funko was valued using Level 2 inputs.
(C)Excludes our investments in Leeds and Funko with fair values of $6.4 million and $58 thousand, respectively, as of September 30, 2022. Leeds was valued using NAV as a practical expedient, and Funko was valued using Level 2 inputs.
Schedule of Fair Value Measurement Inputs and Valuation Techniques The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements.
The weighted average calculations in the table below are based on the principal balances for all debt related calculations and on the cost basis for all equity related calculations for the particular input.
Quantitative Information about Level 3 Fair Value Measurements

Range / Weighted Average as of

March 31,
2023		September 30,
2022
Valuation
Techniques/
Methodologies
Unobservable
Input
March 31,
2023		September 30,
2022


Secured first lien debt
$458,476 $423,912 
Yield Analysis
Discount Rate
11.0% - 25.7%
/ 13.7%
8.0% - 29.5%
/ 11.8%

40,471 39,946 
TEV
EBITDA multiple
4.6x – 6.4x
/ 6.0x
4.8x – 6.7x
/ 6.2x


EBITDA
$963 - $13,215
/ $9,251
$800 - $10,257
/ $7,605


Revenue multiple
0.3x – 0.6x
/ 0.4x
0.3x – 0.6x
/ 0.5x


Revenue
$14,300 - $15,483
/ $15,033
$11,514 - $16,320
/ $14,656


Secured second lien debt
99,773 97,472 
Yield Analysis
Discount Rate
11.3% - 15.3%
/ 14.2%
11.5% - 15.4%
/ 13.8%

10,160 10,791 
Market Quote
IBP
63.5% - 98.5%
/ 81.4%
82.0% - 95.0%
/ 86.5%

7,505 7,665 
TEV
EBITDA multiple
5.5x – 5.5x
/ 5.5x
5.6x – 5.6x
/ 5.6x


EBITDA
$3,095 - $3,095
/ $3,095
$3,299 - $3,299
/ $3,299


Unsecured debt(A)
36 55 
TEV
Revenue multiple
1.3x – 1.3x
/ 1.3x
0.3x – 1.3x
/ 1.0x


Revenue
$5,778 - $5,778
/ $5,778
$764 - $11,514
/ $4,249


Preferred and common equity / equivalents(B)
59,742 63,319 
TEV
EBITDA multiple
4.4x – 12.9x
/ 6.4x
4.1x – 11.0x
/ 6.5x


EBITDA
$963 -$91,580
/ $9,806
$800 -$74,512
/ $11,742


Revenue multiple
0.3x – 3.0x
/ 1.3x
0.3x– 4.4x
/ 1.4x


Revenue
$3,162 -$15,483
/ $14,115
$764 -$42,926
/ $19,963
Total Level 3 Investments, at Fair Value
$676,163 $643,160 
(A)Fair value as of March 31, 2023 excludes our investment in B. Riley with a fair value of $2.3 million. B. Riley was valued using Level 1 inputs as of March 31, 2023.
(B)Fair value as of March 31, 2023 excludes our investments in Leeds and Funko with fair values of $0.2 million and $27 thousand, respectively. Fair value as of September 30, 2022 excludes our investments in Leeds and Funko with fair values of $6.4 million and $58 thousand, respectively. Leeds was valued using NAV as a practical expedient and Funko was valued using Level 2 inputs as of both March 31, 2023 and September 30, 2022.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables provide the changes in fair value, broken out by security type, during the three and six months ended March 31, 2023 and 2022 for all investments for which we determine fair value using unobservable (Level 3) inputs.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended March 31, 2023Secured
First Lien
Debt		Secured
Second Lien
Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of December 31, 2022$450,243 $114,755 $45 $26,140 $28,011 $619,194 
Total gains (losses):
Net realized gain (loss)(A)
(107)— — 510 — 403 
Net unrealized appreciation (depreciation)(B)
(2,035)319 (9)1,931 1,401 1,607 
Reversal of prior period net depreciation (appreciation) on realization(B)
107 — — — — 107 
New investments, repayments and settlements: (C)
Issuances/originations
58,385 4,060 — 371 2,032 64,848 
Settlements/repayments
(7,646)(1,696)— — — (9,342)
Net proceeds from sales
— — — (654)— (654)
Transfers
— — — — — — 
Fair Value as of March 31, 2023
$498,947 $117,438 $36 $28,298 $31,444 $676,163 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Six months ended March 31, 2023Secured
First Lien
Debt		Secured
Second Lien
Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of September 30, 2022
$463,858 $115,928 $55 $27,046 $36,273 $643,160 
Total gains (losses):
Net realized gain (loss)(A)
(107)— (95)510 4,995 5,303 
Net unrealized appreciation (depreciation)(B)
(2,490)(225)(19)1,025 617 (1,092)
Reversal of prior period net depreciation (appreciation) on realization(B)
210 — 95 — (4,995)(4,690)
New investments, repayments and settlements: (C)
Issuances/originations
69,860 4,242 — 371 2,532 77,005 
Settlements/repayments
(32,384)(2,507)— — — (34,891)
Net proceeds from sales
— — — (654)(7,978)(8,632)
Transfers
— — — — — — 
Fair Value as of March 31, 2023
$498,947 $117,438 $36 $28,298 $31,444 $676,163 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended March 31, 2022Secured
First Lien
Debt		Secured
Second
Lien Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of December 31, 2021$395,753 $106,232 $66 $26,483 $41,494 $570,028 
Total gains (losses):
Net realized gain (loss)(A)
— — — — — — 
Net unrealized appreciation (depreciation)(B)
(81)(180)(27)1,452 (230)934 
Reversal of prior period net depreciation (appreciation) on realization(B)
(285)117 — — 1 (167)
New investments, repayments and settlements: (C)
Issuances/originations
12,120 166 25 — — 12,311 
Settlements/repayments
(29,605)(20,837)— — — (50,442)
Net proceeds from sales
— — — — (1)(1)
Transfers— — — — — — 
Fair Value as of March 31, 2022
$377,902 $85,498 $64 $27,935 $41,264 $532,663 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Six months ended March 31, 2022Secured
First Lien
Debt		Secured
Second
Lien Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of September 30, 2021
$337,394 $135,956 $10 $29,246 $48,441 $551,047 
Total gains (losses):
Net realized gain (loss)(A)
— — — — 13,876 13,876 
Net unrealized appreciation (depreciation)(B)
4,412 379 29 791 292 5,903 
Reversal of prior period net depreciation (appreciation) on realization(B)
(380)(1,601)— (4,281)(9,113)(15,375)
New investments, repayments and settlements: (C)
Issuances/originations
86,823 30,336 25 3,500 3,500 124,184 
Settlements/repayments
(50,347)(79,572)— — — (129,919)
Net proceeds from sales
— — — (1,321)(15,732)(17,053)
Transfers— — — — — — 
Fair Value as of March 31, 2022
$377,902 $85,498 $64 $27,935 $41,264 $532,663 
(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(B)Included in net unrealized appreciation (depreciation) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, accretion of discounts, PIK, and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.
Schedule of Investment Holdings
The following table outlines our investments by security type as of March 31, 2023 and September 30, 2022:
March 31, 2023September 30, 2022
CostFair ValueCostFair Value
Secured first lien debt$513,175 73.7 %$498,947 73.5 %$475,806 72.5 %$463,858 71.4 %
Secured second lien debt120,684 17.3 117,438 17.3 118,949 18.2 115,928 17.8 
Unsecured debt2,614 0.4 2,372 0.3 293 0.0 55 0.0 
Total debt investments636,473 91.4 618,757 91.1 595,048 90.7 579,841 89.2 
Preferred equity34,732 5.0 28,298 4.2 34,505 5.3 27,046 4.2 
Common equity/equivalents24,826 3.6 31,704 4.7 26,500 4.0 42,728 6.6 
Total equity investments
59,558 8.6 60,002 8.9 61,005 9.3 69,774 10.8 
Total Investments
$696,031 100.0 %$678,759 100.0 %$656,053 100.0 %$649,615 100.0 %
Our investments at fair value consisted of the following industry classifications as of March 31, 2023 and September 30, 2022:
March 31, 2023September 30, 2022
Industry ClassificationFair ValuePercentage of
Total
Investments		Fair ValuePercentage of
Total
Investments
Diversified/Conglomerate Service$158,695 23.4 %$148,907 22.9 %
Diversified/Conglomerate Manufacturing142,091 20.9 114,105 17.6 
Healthcare, Education, and Childcare133,509 19.7 136,401 21.0 
Aerospace and Defense86,384 12.7 88,649 13.6 
Beverage, Food, and Tobacco70,119 10.3 64,283 9.9 
Oil and Gas23,993 3.5 25,373 3.9 
Automobile19,941 3.0 20,144 3.1 
Personal and Non-Durable Consumer Products17,123 2.5 18,583 2.9 
Machinery10,896 1.6 9,562 1.5 
Telecommunications7,464 1.1 10,088 1.6 
Textiles and Leather— — 7,978 1.2 
Other, < 2.0%8,544 1.3 5,542 0.8 
Total Investments$678,759 100.0 %$649,615 100.0 %
Our investments at fair value were included in the following U.S. geographic regions as of March 31, 2023 and September 30, 2022:
March 31, 2023September 30, 2022
Location
Fair Value
Percentage of
Total
Investments
Fair Value
Percentage of
Total Investments
South$303,139 44.7 %$326,524 50.3 %
West194,913 28.7 169,415 26.1 
Midwest144,399 21.3 118,191 18.2 
Northeast36,308 5.3 35,485 5.4 
Total Investments$678,759 100.0 %$649,615 100.0 %
Schedule of Investments Classified by Contractual Maturity Date
The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of March 31, 2023:
Amount
For the remaining six months ending September 30:
2023(A)
$5,709 
For the fiscal years ending September 30:
202435,783 

202582,772 

2026158,184 

2027269,559 

Thereafter85,828 

Total contractual repayments
$637,835 

Adjustments to cost basis of debt investments(1,362)

Investments in equity securities59,558 

Investments held as of March 31, 2023 at cost:
$696,031 
(A)Includes debt investments with contractual principal amounts totaling $0.2 million for which the maturity date has passed as of March 31, 2023.