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INVESTMENTS (Tables)

12 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

As of September 30, 2023 and 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 September 30, 2023:
Secured first lien debt	$	510,701		$	—	$	—		$	510,701
Secured second lien debt	127,854			—		—			127,854
Unsecured debt	24			—		—			24
Preferred equity	26,855			—		—			26,855
Common equity/equivalents	39,150		(A)	—		22		(B)	39,128
Total Investments as of September 30, 2023:	$	704,584		$	—	$	22		$	704,562


	Fair Value			Fair Value Measurements
				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		(B)	36,273
Total Investments as of September 30, 2022:	$	643,218		$	—	$	58		$	643,160

(A)Excludes our investment in Leeds with a fair value of $0.2 million and $6.4 million as of September 30, 2023 and 2022, respectively. Leeds was valued using NAV as a practical expedient.

(B)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 September 30, 2023 and 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)
	September 30, 2023			September 30, 2022
Non-Control/Non-Affiliate Investments
Secured first lien debt	$	491,686		$	413,631
Secured second lien debt	120,429			108,263
Unsecured debt	24			55
Preferred equity	21,733			17,719
Common equity/equivalents	29,419		(A)	28,688		(B)
Total Non-Control/Non-Affiliate Investments	$	663,291		$	568,356

Affiliate Investments
Secured first lien debt	$	2,895		$	34,804
Preferred equity	5,122			3,640
Common equity/equivalents	2,404			647
Total Affiliate Investments	$	10,421		$	39,091

Control Investments
Secured first lien debt	$	16,120		$	15,423
Secured second lien debt	7,425			7,665
Preferred equity	—			5,687
Common equity/equivalents	7,305			6,938
Total Control Investments	$	30,850		$	35,713
Total Investments at Fair Value Using Level 3 Inputs	$	704,562		$	643,160

(A)Excludes our investments in Leeds and Funko with fair values of $0.2 million and $22 thousand, respectively, as of September 30, 2023. Leeds was valued using NAV as a practical expedient, and Funko was valued using Level 2 inputs.

(B)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

September 30,
2023

September 30,
2022

Valuation
Techniques/
Methodologies

Unobservable
Input

September 30,
2023

September 30,
2022

Secured first lien debt(A)

461,638

423,912

Yield Analysis

Discount Rate

11.8%–29.9% / 14.8%

8.0%–29.5% / 11.8%

49,063

39,946

TEV

EBITDA multiple

4.7x–6.8x / 6.7x

4.8x–6.7x / 6.2x

EBITDA

$995–$14,002 / $13,624

$800–$10,257 / $7,605

Revenue multiple

0.3x–0.8x / 0.6x

0.3x–0.6x / 0.5x

Revenue

$14,934–$16,283 / $15,361

$11,514–$16,320 / $14,656

Secured second lien debt

110,820

97,472

Yield Analysis

Discount Rate

12.5%–15.6% / 14.5%

11.5%—15.4% / 13.8%

9,609

10,791

Market Quote

IBP

67.8%–94.0% / 82.2%

82.0%–95.0% / 86.5%

7,425

7,665

TEV

EBITDA multiple

5.6x–5.6x / 5.6x

EBITDA

$3,690–$3,690 / $3,690

$3,299–$3,299 / $3,299

Unsecured debt

TEV

Revenue multiple

1.0x–1.0x / 1.0x

0.3x–1.3x / 1.0x

Revenue

$5,044–$5,044 / $5,044

$764–$11,514 / $4,249

Preferred and common equity / equivalents(B)

65,983

63,319

TEV

EBITDA multiple

4.7x–13.0x / 6.9x

4.1x–11.0x / 6.5x

EBITDA

$995–$112,841 / $10,570

$800–$74,512 / $11,742

Revenue multiple

0.3x–3.0x / 1.2x

0.3x–4.4x / 1.4x

Revenue

$4,213–$16,283 / $14,959

$764–$42,926 / $19,963

Total Level 3 Investments, at Fair Value

704,562

643,160

(A)Fair value as of September 30, 2022 includes one proprietary debt investment totaling $18.8 million, which was valued using the expected payoff amount as the unobservable input.

(B)Fair value as of September 30, 2023 excludes our investments in Leeds and Funko with fair values of $0.2 million and $22 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 September 30, 2023 and 2022. Fair value as of September 30, 2022 includes one syndicated equity investment totaling $8.0 million, which was valued using the expected payoff amount as the unobservable input.

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 years ended September 30, 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)
Year Ended September 30, 2023	Secured 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)		(279)		8,695		8,214
Net unrealized appreciation (depreciation)(B)	(7,577)		617		(31)		(1,829)		10,563		1,743
Reversal of prior period net depreciation (appreciation) on realization(B)	850		6		95		526		(9,257)		(7,780)
New investments, repayments and settlements:(C)
Issuances/originations	154,762		15,421		—		2,045		4,532		176,760
Settlements/repayments	(101,085)		(4,118)		—		—		—		(105,203)
Net proceeds from sales	—		—		—		(654)		(11,678)		(12,332)
Transfers	—		—		—		—		—		—
Fair Value as of September 30, 2023	$	510,701	$	127,854	$	24	$	26,855	$	39,128	$	704,562


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Year Ended September 30, 2022	Secured 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)	(8,471)		—		(25)		—		13,876		5,380
Net unrealized appreciation (depreciation)(B)	(693)		267		20		(3,166)		(12,968)		(16,540)
Reversal of prior period net depreciation (appreciation) on realization(B)	13,967		(1,601)		25		(4,309)		(9,113)		(1,031)
New investments, repayments and settlements:(C)
Issuances/originations	204,970		62,570		25		6,846		5,019		279,430
Settlements/repayments	(77,898)		(81,264)		—		(250)		—		(159,412)
Net proceeds from sales	1,339		—		—		(1,321)		(15,732)		(15,714)
Transfers	(6,750)		—		—		—		6,750		—
Fair Value as of September 30, 2022	$	463,858	$	115,928	$	55	$	27,046	$	36,273	$	643,160

(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 September 30, 2023 and 2022:


	September 30, 2023								September 30, 2022
	Cost				Fair Value				Cost				Fair Value
Secured first lien debt	$	529,376	73.3	%	$	510,701	72.5	%	$	475,806	72.5	%	$	463,858	71.4	%
Secured second lien debt	130,252		18.1		127,854		18.1		118,949		18.2		115,928		17.8
Unsecured debt	198		0.0		24		0.0		293		0.0		55		0.0
Total debt investments	659,826		91.4		638,579		90.6		595,048		90.7		579,841		89.2
Preferred equity	35,617		4.9		26,855		3.8		34,505		5.3		27,046		4.2
Common equity/equivalents	26,826		3.7		39,381		5.6		26,500		4.0		42,728		6.6
Total equity investments	62,443		8.6		66,236		9.4		61,005		9.3		69,774		10.8
Total Investments	$	722,269	100.0	%	$	704,815	100.0	%	$	656,053	100.0	%	$	649,615	100.0	%

Our investments at fair value consisted of the following industry classifications as of September 30, 2023 and 2022:


Industry Classification	September 30, 2023				September 30, 2022
	Fair Value		Percentage of Total Investments		Fair Value		Percentage of Total Investments
Diversified/Conglomerate Manufacturing	$	158,061	22.4	%	$	114,105	17.6	%
Healthcare, Education, and Childcare	146,438		20.8		136,401		21.0
Diversified/Conglomerate Service	135,060		19.2		148,907		22.9
Aerospace and Defense	97,836		13.9		88,649		13.6
Beverage, Food, and Tobacco	78,788		11.2		64,283		9.9
Oil and Gas	27,830		3.9		25,373		3.9
Automobile	27,571		3.9		20,144		3.1
Personal and Non-Durable Consumer Products	14,576		2.1		18,583		2.9
Machinery	6,411		0.9		9,562		1.5
Telecommunications	5,868		0.8		10,088		1.6
Textiles and Leather	—		—		7,978		1.2
Other, < 2.0%	6,376		0.9		5,542		0.8
Total Investments	$	704,815	100.0	%	$	649,615	100.0	%

Our investments at fair value were included in the following U.S. geographic regions as of September 30, 2023 and 2022:


Location	September 30, 2023				September 30, 2022
	Fair Value		Percentage of Total Investments		Fair Value		Percentage of Total Investments
South	$	273,181	38.8	%	$	326,524	50.3	%
West	224,235		31.8		169,415		26.1
Midwest	145,122		20.6		118,191		18.2
Northeast	62,277		8.8		35,485		5.4
Total Investments	$	704,815	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 September 30, 2023:


Year Ending September 30,	Amount
2024(A)	$	24,385
2025	90,725
2026	137,108
2027	254,660
2028	146,440
Thereafter	7,762
Total contractual repayments	$	661,080
Adjustments to cost basis of debt investments	(1,254)
Investments in equity securities	62,443
Investments held as of September 30, 2023 at Cost:	$	722,269

(A)Includes debt investments with contractual principal amounts totaling $0.2 million for which the maturity date has passed as of September 30, 2023.