Federal Income Tax Matters

12 Months Ended

Sep. 30, 2025

Schedule of Investments [Abstract]

Federal Income Tax Matters

Note 8. Federal Income Tax Matters

The Company has elected to be treated and intends to be subject to tax as a RIC under Subchapter M of the Code. As a result, the Company must distribute substantially all of its net taxable income each tax year as dividends to its stockholders which will generally relieve the Company from U.S. federal income tax.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which could differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax differences have no impact on net assets.

The following permanent differences were reclassified for tax purposes among the components of net assets for the years ended September 30, 2025, 2024 and 2023:

	Year ended September 30,
	2025		2024		2023
Increase (decrease) in Paid in Capital in Excess of Par	$	(89,310)	$	(45,385)	$	(12,902)
Increase (decrease) in Distributable Earnings (Losses)	89,310		45,385		12,902

Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and generally excludes unrealized appreciation (depreciation) on investment transactions as investment gains and losses are not included in taxable income until they are realized.

The following table reconciles net increase (decrease) in net assets resulting from operations to taxable income for the years ended September 30, 2025, 2024 and 2023:

	Year ended September 30,
	2025		2024		2023
Net increase (decrease) in net assets resulting from operations	$	376,646	$	273,785	$	258,631
Net change in unrealized (appreciation) depreciation on investment transactions	(51,232)		29,371		(13,555)
Other income not currently taxable	(52,646)		(30,908)		(22,437)
Expenses not currently deductible	20,944		7,647		11,198
Other income for tax but not book	6,544		9,460		3,773
Other deductions/losses for tax not book	(30,184)		(17,624)		(39,639)
Other realized gain/loss differences	73,034		63,491		29,175
Taxable income before deductions for distributions	$	343,106	$	335,222	$	227,146

The tax character of distributions paid during the years ended September 30, 2025, 2024 and 2023 was as follows:

	Year ended September 30,
	2025		2024		2023
Ordinary Income	$	361,779	$	372,957	$	209,607
Long-Term Capital Gains	—		—		28,785
Return of Capital	77,336		—		—

The tax basis components of distributable earnings/(accumulated losses) and reconciliation to accumulated earnings/(deficit) on a book basis for the years ended September 30, 2025, 2024 and 2023 were as follows:

	As of September 30,
	2025		2024		2023
Undistributed ordinary income – tax basis	$	—	$	19,151	$	56,886
Undistributed realized gains – tax basis	—		—		—
Net unrealized appreciation (depreciation) on investments	9,860		(155,498)		(160,673)
Other temporary differences	(58,676)		(16,646)		4,583
Total accumulated earnings (deficit) – book basis	$	(48,816)	$	(152,993)	$	(99,204)

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. Capital losses incurred by the Company in tax years beginning after September 30, 2011 are not subject to expiration and retain their character as either short-term or long-term capital losses. As of September 30, 2025, the Company estimates that it will have $53,950 of capital loss carryforward available for use in subsequent tax years, which is included in other temporary differences in the table above.

For tax purposes, the Company may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. As of September 30, 2025, the Company elected to defer $6,981 of ordinary losses. The Company did not elect to defer any short-term capital losses and long-term capital losses as of September 30, 2025. As of September 30, 2024 and September 30, 2023, the Company did not elect to defer ordinary losses, short-term capital losses or long-term capital losses.

For the tax year ended September 30, 2025, the Company estimates that distributions were in excess of taxable income and does not expect to carry forward excess taxable income for distribution into 2026.

As of September 30, 2025, the federal tax cost of investments was $8,728,590 resulting in estimated gross unrealized gains and losses of $314,813 and $274,014, respectively.

The Company has consolidated subsidiaries that are subject to U.S. federal and state corporate-level income taxes. For the years ended September 30, 2025, 2024 and 2023, the Company recorded a net tax benefit for taxable subsidiaries of $563, $549 and $101, respectively. As of September 30, 2025, the Company recorded a net deferred tax liability of $217 for taxable subsidiaries, which is included in accounts payable and other liabilities on the Consolidated Statements of Financial Condition. The deferred tax liability primarily resulted from unrealized appreciation on the investments held at the taxable subsidiaries. As of September 30, 2024, the Company recorded a net deferred tax liability of $780 for taxable subsidiaries, which is included in accounts payable and other liabilities on the Consolidated Statements of Financial Condition. The deferred tax liability primarily resulted from unrealized appreciation on the investments held at the taxable subsidiaries.