PORTFOLIO INVESTMENTS AND FAIR VALUE

6 Months Ended

Jun. 30, 2025

PORTFOLIO INVESTMENTS AND FAIR VALUE

PORTFOLIO INVESTMENTS AND FAIR VALUE

NOTE 6 — PORTFOLIO INVESTMENTS AND FAIR VALUE

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly; and

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of 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. However, the determination of what constitutes “observable” requires significant judgment by management.

The Company considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

At June 30, 2025, the Company had investments in 112 portfolio companies. The composition of the Company’s investments as of June 30, 2025 was as follows:

	Cost		Fair Value
Senior Secured – First Lien(1)	$	911,159,388	$	877,969,380
Senior Secured – Second Lien		12,094,812		12,025,000
Unsecured Debt		6,952,712		6,781,475
Equity		60,212,776		89,109,819
Total Investments	$	990,419,688	$	985,885,674

(1) Includes unitranche investments, which accounted for 2.8% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.

At December 31, 2024, the Company had investments in 105 portfolio companies. The composition of its investments as of December 31, 2024 was as follows:

	Cost		Fair Value
Senior Secured – First Lien(1)	$	884,322,462	$	856,096,255
Senior Secured – Second Lien		12,073,732		11,948,850
Unsecured Debt		6,755,866		6,612,493
Equity		58,636,646		78,840,090
Total Investments	$	961,788,706	$	953,497,688

(1) Includes unitranche investments, which accounted for 2.0% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.

The Company’s investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of June 30, 2025 and December 31, 2024, the Company had 71 and 71 of such investments, respectively, with aggregate unfunded commitments of $58,737,497 and $41,286,752, respectively. The Company maintains sufficient liquidity (through cash on hand and available borrowings under the Credit Facility) to fund such unfunded loan commitments should the need arise.

The aggregate gross unrealized appreciation and depreciation and the aggregate cost and fair value of the Company’s portfolio company securities as of June 30, 2025 and December 31, 2024 were as follows:

	June 30, 2025		December 31, 2024
Aggregate cost of portfolio company securities	$	990,419,688	$	961,788,706
Gross unrealized appreciation of portfolio company securities		61,493,693		47,590,719
Gross unrealized depreciation of portfolio company securities		(66,179,033)		(54,903,019)
Gross unrealized appreciation on foreign currency translations of portfolio company securities		151,326		3,973
Gross unrealized depreciation on foreign currency translations of portfolio company securities		—		(982,691)
Aggregate fair value of portfolio company securities	$	985,885,674	$	953,497,688

The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of June 30, 2025 were as follows:

	Quoted Prices
	in Active
	Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Securities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Senior Secured – First Lien	$	—	$	—	$	877,969,380	$	877,969,380
Senior Secured – Second Lien		—		—		12,025,000		12,025,000
Unsecured Debt		—		—		6,781,475		6,781,475
Equity		—		—		89,109,819		89,109,819
Total Investments	$	—	$	—	$	985,885,674	$	985,885,674

The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of December 31, 2024 were as follows:

	Quoted Prices
	in Active
	Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Securities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Senior Secured – First Lien	$	—	$	—	$	856,096,255	$	856,096,255
Senior Secured – Second Lien		—		—		11,948,850		11,948,850
Unsecured Debt		—		—		6,612,493		6,612,493
Equity		—		—		78,840,090		78,840,090
Total Investments	$	—	$	—	$	953,497,688	$	953,497,688

The change in aggregate values of Level 3 portfolio investments during the six months ended June 30, 2025 was as follows:

	Senior Secured		Senior Secured
	Loans-First		Loans-Second		Unsecured
	Lien		Lien		Debt		Equity		Total
Fair value at beginning of period	$	856,096,255	$	11,948,850	$	6,612,493	$	78,840,090	$	953,497,688
Purchases of investments		75,050,254		—		9,454		4,833,753		79,893,461
PIK interest		2,291,636		—		200,915		—		2,492,551
Sales and redemptions		(46,261,639)		—		(21,325)		(2,061,312)		(48,344,276)
Realized losses		(5,651,670)		—		—		(1,196,307)		(6,847,977)
Change in unrealized (depreciation) appreciation included in earnings(1)		(6,081,655)		55,070		(31,155)		8,684,700		2,626,960
Change in unrealized appreciation on foreign currency included in earnings		1,117,858		—		3,291		8,895		1,130,044
Amortization of premium and accretion of discount, net		1,408,341		21,080		7,802		—		1,437,223
Fair value at end of period	$	877,969,380	$	12,025,000	$	6,781,475	$	89,109,819	$	985,885,674

(1) Includes reversal of positions during the six months ended June 30, 2025.

There were no Level 3 transfers during the six months ended June 30, 2025.

The change in aggregate values of Level 3 portfolio investments during the year ended December 31, 2024 was as follows:

	Senior Secured		Senior Secured
	Loans-First		Loans-Second		Unsecured
	Lien		Lien		Debt		Equity		Total
Fair value at beginning of period	$	774,789,320	$	21,957,500	$	5,956,280	$	71,757,583	$	874,460,683
Purchases of investments		213,545,132		—		117,066		7,492,735		221,154,933
PIK interest		2,824,403		—		485,708		—		3,310,111
Sales and redemptions		(126,924,841)		(9,782,348)		—		(14,985,096)		(151,692,285)
Realized (losses) gains		(1,580,768)		(20,475,000)		—		6,212,362		(15,843,406)
Change in unrealized (depreciation) appreciation included in earnings(1)		(9,026,597)		20,187,185		40,312		8,369,509		19,570,409
Change in unrealized depreciation on foreign currency included in earnings		(169,778)		—		(1,778)		(7,003)		(178,559)
Amortization of premium and accretion of discount, net		2,639,384		61,513		14,905		—		2,715,802
Fair value at end of period	$	856,096,255	$	11,948,850	$	6,612,493	$	78,840,090	$	953,497,688

(1) Includes reversal of positions during the year ended December 31, 2024.

There were no Level 3 transfers during the year ended December 31, 2024.

The following is a summary of geographical concentration of the Company’s investment portfolio as of June 30, 2025:

					% of Total
					Investments at
	Cost		Fair Value		Fair Value
California	$	181,009,004	$	178,616,720	18.13	%
Texas		154,757,077		154,093,434	15.63	%
Florida		102,112,788		97,129,969	9.85	%
Illinois		68,133,220		57,898,507	5.87	%
Pennsylvania		53,161,589		55,629,689	5.64	%
Arizona		43,393,641		48,742,361	4.94	%
Ohio		35,311,853		37,352,049	3.79	%
New York		36,124,132		36,553,332	3.71	%
Colorado		39,122,251		35,802,183	3.63	%
Canada		31,632,257		31,779,011	3.22	%
North Carolina		26,879,809		28,150,062	2.86	%
Massachusetts		24,356,787		24,831,780	2.52	%
Georgia		12,781,388		23,988,501	2.43	%
Tennessee		20,520,440		20,020,000	2.03	%
Iowa		18,514,481		18,545,218	1.88	%
Wisconsin		30,555,078		17,807,064	1.81	%
District of Columbia		10,730,027		14,244,031	1.44	%
New Jersey		11,200,761		11,891,076	1.21	%
Michigan		11,601,178		11,745,367	1.19	%
Idaho		10,930,056		10,983,367	1.11	%
Missouri		10,315,484		10,605,105	1.08	%
Virginia		9,458,832		9,367,399	0.95	%
Louisiana		9,184,595		9,230,428	0.94	%
Oregon		8,889,001		9,082,653	0.92	%
Washington		7,844,732		8,872,263	0.90	%
Maryland		7,524,975		7,514,173	0.76	%
Minnesota		6,644,715		7,237,815	0.73	%
South Carolina		4,838,982		4,986,488	0.51	%
United Kingdom		2,146,785		2,189,670	0.22	%
Indiana		743,770		995,959	0.10	%
Total Investments	$	990,419,688	$	985,885,674	100.00	%

The following is a summary of geographical concentration of the Company’s investment portfolio as of December 31, 2024:

					% of Total
					Investments
	Cost		Fair Value		at Fair Value
Texas	$	159,028,754	$	154,041,942	16.15	%
California		160,285,777		152,583,692	16.00	%
Florida		108,434,730		104,718,969	10.98	%
Illinois		66,486,029		56,591,435	5.94	%
Pennsylvania		53,271,774		54,438,594	5.71	%
Arizona		43,552,887		46,839,063	4.91	%
New York		36,116,358		36,306,098	3.81	%
Ohio		33,645,676		35,847,804	3.76	%
Canada		32,107,256		32,375,749	3.40	%
Colorado		31,283,806		28,218,186	2.96	%
Wisconsin		27,935,159		23,352,084	2.45	%
District of Columbia		22,711,852		26,654,283	2.80	%
Georgia		12,391,680		23,345,077	2.45	%
North Carolina		20,946,327		22,314,018	2.34	%
Tennessee		20,490,429		20,703,772	2.17	%
Massachusetts		19,965,590		20,559,398	2.16	%
Missouri		18,590,476		18,712,569	1.96	%
Iowa		13,486,486		13,486,486	1.41	%
Idaho		11,763,648		11,830,192	1.24	%
New Jersey		11,181,815		11,754,323	1.23	%
Michigan		11,389,446		11,510,608	1.21	%
Louisiana		9,216,389		9,371,830	0.98	%
Virginia		9,293,896		9,373,367	0.98	%
Washington		8,193,234		8,216,962	0.86	%
Maryland		7,529,294		7,526,300	0.79	%
Minnesota		6,448,091		6,452,144	0.68	%
South Carolina		4,836,178		4,984,667	0.52	%
Indiana		743,770		920,343	0.10	%
United Kingdom		461,899		467,733	0.05	%
Total Investments	$	961,788,706	$	953,497,688	100.00	%

The following is a summary of industry concentration of the Company’s investment portfolio as of June 30, 2025:

					% of Total
					Investments at
	Cost		Fair Value		Fair Value
Services: Business	$	244,182,386	$	258,262,872	26.20	%
High Tech Industries		91,009,383		94,251,008	9.56	%
Healthcare & Pharmaceuticals		85,962,250		85,601,802	8.69	%
Media: Advertising, Printing & Publishing		79,072,535		79,491,427	8.06	%
Beverage & Food		66,466,812		71,783,476	7.28	%
Consumer Goods: Non-Durable		63,276,327		54,148,707	5.49	%
Capital Equipment		50,028,627		52,227,597	5.30	%
Services: Consumer		48,987,156		46,657,723	4.73	%
Construction & Building		33,509,105		34,228,429	3.47	%
Consumer Goods: Durable		34,761,208		31,688,133	3.21	%
Chemicals, Plastics, & Rubber		27,191,767		26,832,102	2.72	%
Aerospace & Defense		27,570,043		23,217,974	2.36	%
Environmental Industries		19,012,806		21,674,649	2.20	%
Transportation & Logistics		17,869,351		18,117,259	1.84	%
Retail		14,727,262		14,784,458	1.50	%
Media: Broadcasting & Subscription		12,114,145		14,554,108	1.48	%
Energy: Oil & Gas		11,755,487		11,034,597	1.12	%
Hotel, Gaming, & Leisure		7,078,405		9,999,071	1.01	%
FIRE: Real Estate		17,934,808		7,790,627	0.79	%
Media: Diversified & Production		7,483,906		7,626,556	0.77	%
Containers, Packaging, & Glass		20,682,222		7,247,988	0.74	%
Finance		-		5,802,435	0.59	%
Wholesale		5,071,083		5,067,049	0.51	%
Education		4,672,614		3,795,627	0.38	%
Total Investments	$	990,419,688	$	985,885,674	100.00	%

The following is a summary of industry concentration of the Company’s investment portfolio as of December 31, 2024:

					% of Total
					Investments
	Cost		Fair Value		at Fair Value
Services: Business	$	219,665,133	$	234,908,112	24.64	%
High Tech Industries		91,135,577		93,468,792	9.81	%
Healthcare & Pharmaceuticals		85,300,317		85,478,418	8.97	%
Media: Advertising, Printing & Publishing		71,318,416		72,291,584	7.58	%
Beverage & Food		64,052,951		68,902,142	7.23	%
Consumer Goods: Non-Durable		67,123,135		54,473,282	5.71	%
Services: Consumer		49,388,222		46,066,301	4.83	%
Capital Equipment		41,322,214		43,647,466	4.58	%
Consumer Goods: Durable		43,393,413		42,094,390	4.41	%
Chemicals, Plastics, & Rubber		36,693,101		36,907,602	3.87	%
Construction & Building		32,374,992		32,979,859	3.46	%
Aerospace & Defense		26,014,106		21,624,091	2.27	%
Environmental Industries		18,903,681		18,282,056	1.92	%
Transportation & Logistics		17,244,131		17,532,488	1.84	%
Retail		14,799,085		14,723,620	1.54	%
Media: Broadcasting & Subscription		12,170,577		14,314,711	1.50	%
Containers, Packaging, & Glass		18,007,571		12,911,794	1.35	%
Energy: Oil & Gas		11,353,959		10,728,031	1.13	%
Hotel, Gaming, & Leisure		7,113,661		8,142,050	0.85	%
FIRE: Real Estate		17,934,808		7,652,436	0.80	%
Media: Diversified & Production		5,822,637		5,934,853	0.62	%
Education		10,537,738		5,341,151	0.56	%
Finance		119,281		5,092,459	0.53	%
Total Investments	$	961,788,706	$	953,497,688	100.00	%

The following provides quantitative information about Level 3 fair value measurements as of June 30, 2025:

Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)(1)(3)
First lien debt	$	863,513,649	Income approach(2)	HY credit spreads	-9.27% to 8.48% (-0.31%)
				Risk free rates	-1.00% to 1.94% (-0.32%)
			Market approach(2)	Market multiples	3.4x to 26.9x (12.6x)(4)
	$	14,455,731	Transaction value	Transaction price	N/A
Second lien debt	$	12,025,000	Income approach(2)	HY credit spreads	-0.70% to -0.31% (-0.45%)
				Risk free rates	-0.53% to -0.05% (-0.23%)
			Market approach(2)	Market multiples	6.7x to 13.7x (11.1x)(4)
Unsecured debt	$	6,781,475	Income approach(2)	HY credit spreads	-1.18% to 0.20% (0.19%)
				Risk free rates	-0.61% to -0.05% (-0.60%)
Equity investments	$	72,402,235	Market approach(5)	EBITDA multiple	3.3x to 18.2x (10.3x)
				Revenue multiple	7.2x to 9.3x (8.0x)
	$	564,426	Enterprise value	Enterprise value	N/A
	$	16,143,158	Transaction value	Transaction price	N/A
Total Long Term Level 3 Investments	$	985,885,674

(1) Weighted average based on fair value as of June 30, 2025.

(2) Included but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach, which is based on discounting future cash flows using an appropriate market yield.

(3) The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY credit spreads between the date a loan closed and the valuation date ranged from (9.27)% ( (927) basis points) to 8.48% (848 basis points). The average of all changes was (0.31)% ( (31) basis points).

(4) Median of LTM (last twelve months) EBITDA multiples of comparable companies.

(5) The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the EBITDA multiple (the “Multiple”). Significant increases (decreases) in the Multiple in isolation could result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2024:

Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Average)(1)(3)
First lien debt	$	778,177,769	Income approach(2)	HY credit spreads	-3.39% to 8.32% (-0.54%)
				Risk free rates	-1.18% to 2.44% (0.19%)
			Market approach(2)	Market multiples	4.6x to 26.3x (13.3x)(4)
	$	77,918,486	Transaction value	Transaction price	N/A
Second lien debt	$	11,948,850	Income approach(2)	HY credit spreads	-0.72% to -0.32% (-0.46%)
				Risk free rates	-0.35% to 0.14% (-0.04%)
			Market approach(2)	Market multiples	5.3 to 11.8x (9.4x)(4)
Unsecured debt	$	6,581,668	Income approach(2)	HY credit spreads	0.18% to 0.18% (0.18%)
				Risk free rates	-0.18% to -0.18% (-0.18%)
	$	30,825	Transaction value	Transaction price	N/A
Equity investments	$	64,002,282	Market approach(5)	EBITDA multiple	3.5x to 18.3x (10.4x)
	$	14,837,808	Transaction value	Transaction price	N/A
Total Long Term Level 3 Investments	$	953,497,688

(1) Weighted average based on fair value as of December 31, 2024.

(2) Inclusive of but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach which is based on discounting future cash flows using an appropriate market yield.

(3) The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors would result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for a first lien debt instruments in the table above indicates that the change in the HY credit spreads between the date a loan closed and the valuation date ranged from (3.39)% (339) basis points) to 8.32% (832 basis points). The average of all changes was (0.54)% ( (54) basis points).

(4) Median of LTM (last twelve months) EBITDA multiples of comparable companies.

(5) The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the Multiple. Significant increases (decreases) in the Multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiples, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.