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Investments
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
In January 2025, the Company made an additional equity investment in Madison Retirement Holdings TopCo, LLC (“MAP”) of $4.0 million to purchase the equity interests of a minority shareholder of the portfolio company.
In February 2025, the Company made an additional equity investment in Clarion Safety Systems, LLC (“Clarion”) of approximately $13.5 million for Clarion’s acquisition of McLoone Metal Graphics. Founded in 1954 and headquartered in La Crosse, WI, McLoone manufactures metal nameplates and ID plates and flexible labels utilized by Original Equipment Manufacturers and other suppliers in a variety of end markets. McLoone’s products complement Clarion’s products and services for its customers’ industrial safety needs.
In April 2025, the Company made an additional investment in LOCI Topco Limited (“LBR”) of approximately $25.8 million to partially finance the merger of LBR and ALM Global LLC (“ALM”). ALM was founded in 1979 and is headquartered in New York, New York. Through its leading Law.com platform, ALM offers a global legal newsroom for professionals utilizing proprietary data intelligence, expert analysis and industry insights serving both the practice and business of law. ALM, in combination with LBR, creates a newly formed group uniquely positioned to serve clients globally by combining ALM’s deep U.S. market penetration with LBR’s strong U.K. and global presence.
In June 2025, the Company acquired an approximately 91% indirect equity ownership interest in International Franchise Professionals Group (“IFPG”). The Company’s total investment of approximately $113.5 million in IFPG is comprised of an indirect common equity investment of $90.5 million and a concurrent debt investment of $23.0 million. IFPG is a membership-based organization serving more than 1,300 franchise professionals. As one of the largest member networks and marketplaces dedicated to the franchise industry, IFPG’s customer community is made up of franchisors, franchise consultants and vendors who help potential candidates through the process of identifying and investing in a franchise business.
In June 2025, the Company made an additional equity investment in Milton Industries Inc (“Milton”) of approximately $2.3 million.
On September 25, 2025, the Company, through its wholly-owned subsidiaries, SDC Strategic Capital EquityCo, LLC and SDC Strategic Capital DebtCo, LLC, made an approximately $7.5 million co-investment alongside other vehicles managed by affiliates of the Sub-Manager in SDC Holdco LLC (“SDC”), which owns a controlling equity interest in the Shipley Do-Nuts business (“Shipley Do-Nuts”). In July 2025, Levine Leichtman Capital Partners VII, L.P. (“LLCP VII”), an affiliate of the Sub-Manager, acquired a controlling equity interest in Shipley Do-Nuts through SDC. The Company’s co-investment is comprised of a combination of an indirect minority common share equity position of approximately $6.8 million and $0.7 million through a participation interest in the second lien secured debt of Shipley Do-Nuts. The Company’s equity investment represents less than 3% of the total equity ownership of Shipley Do-Nuts. The Company’s investment in Shipley Do-Nuts was acquired from LLCP VII at the same price and on substantially similar terms and conditions as LLCP VII’s initial investment in July 2025. The terms of the transaction were approved by the Company’s board of directors, including all of the independent directors of the Company’s board of directors, as fair and reasonable to the Company and at a price to the Company no greater than the cost of the asset to LLCP VII.

The Company’s investment portfolio is summarized as follows as of September 30, 2025 and December 31, 2024 (in thousands):
 As of September 30, 2025
Asset Category
Amortized Cost(1)
Fair ValueFair Value
Percentage of
Investment
Portfolio		Fair Value
Percentage of
Net Assets
Senior secured debt
First lien$66,990 $66,990 5.0 %4.8 %
Secured
171,389 171,389 12.7 12.5 
Second lien62,402 62,402 4.6 4.6 
PIK notes18,830 19,012 1.4 1.4 
Total senior secured debt319,611 319,793 23.7 23.3 
Equity
Preferred74,812 78,416 5.8 5.7 
Common617,861 953,881 70.5 69.6 
Total equity692,673 1,032,297 76.3 75.3 
Total investments$1,012,284 $1,352,090 100.0 %98.6 %
 As of December 31, 2024
Asset Category
Amortized Cost(1)
Fair ValueFair Value
Percentage of
Investment
Portfolio		Fair Value
Percentage of
Net Assets
Senior secured debt
First lien$66,990 $66,990 5.9 %5.4 %
Secured
148,576 148,576 13.0 12.1 
Second lien76,718 76,718 6.7 6.2 
Total senior secured debt292,284 292,284 25.6 23.7 
Equity
Preferred62,070 61,155 5.4 5.0 
Common538,586 787,420 69.0 64.0 
Total equity600,656 848,575 74.4 69.0 
Total investments$892,940 $1,140,859 100.0 %92.7 %
FOOTNOTE:
(1) The amortized cost represents the original cost adjusted for PIK interest and dividends.
Collectively, the Company’s debt investments accrue interest at a weighted average per annum rate of 13.9% and have weighted average remaining years to maturity of 4.3 years as of September 30, 2025. The note purchase agreements contain customary covenants and events of default. As of September 30, 2025, all of the Company’s portfolio companies were in compliance with their respective debt covenants. As of September 30, 2025 and December 31, 2024, none of the Company’s debt investments were on non-accrual status.
The industry dispersion of the Company’s portfolio company investments, based on fair value, as of September 30, 2025 and December 31, 2024 were as follows:
IndustrySeptember 30, 2025December 31, 2024
Healthcare Supplies14.5 %17.0 %
Insurance Services(1)
12.0 — 
Commercial and Professional Services11.5 13.0 
Engineered Products10.3 12.4 
Retirement Plan Services10.3 10.1 
Legal Services(2)
9.5 — 
Visual Safety Solutions9.3 7.9 
Franchise Consulting Services8.4 — 
Information Services and Advisory Solutions6.2 12.2 
Real Estate Services5.4 6.3 
Hobby Goods and Supplies2.0 2.5 
Restaurant and Food0.6 — 
Business Services— 13.9 
Sanitation Products— 4.7 
Total100.0 %100.0 %
FOOTNOTE:
(1)Included in Business Services industry as of December 31, 2024. The Company disaggregated this category as of September 30, 2025.
(2)Included in Business Services and Information Services and Advisory Solutions industries as of December 31, 2024. The Company disaggregated these categories as of September 30, 2025.
Summarized Portfolio Company Financial Information
The Company had two significant portfolio companies in which it owned a controlling equity interest during the quarter and nine months ended September 30, 2025 and 2024. The following tables present unaudited summarized operating data for the quarter and nine months ended September 30, 2025 and 2024, and summarized balance sheet data as of September 30, 2025 (unaudited) and December 31, 2024 for these portfolio companies (in thousands):
Clarion
Quarter Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Revenues$8,499 $4,063 $23,777 $12,620 
Expenses(6,841)(3,710)(20,330)(10,816)
Income before taxes1,658 353 3,447 1,804 
Income tax expense(454)(98)(945)(503)
Net income$1,204 $255 $2,502 $1,301 
As of September 30, 2025As of December 31, 2024
Current assets$14,094 $7,124 
Non-current assets83,202 74,214 
Current liabilities2,571 2,551 
Non-current liabilities22,895 22,680 
Stockholders’ equity71,830 56,107 
Ownership percentage(1)
95 %96 %
FOOTNOTE:
(1)Represents the Company’s undiluted ownership percentage as of the end of the period presented, rounded to the nearest percent.

Sill
Quarter Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenues$8,031 $6,391 $29,876 $14,636 
Expenses(7,922)(5,846)(25,571)(15,515)
Income (loss) before taxes109 545 4,305 (879)
Income tax benefit (expense)375 (1,718)(327)(1,038)
Net income (loss)$484 $(1,173)$3,978 $(1,917)
As of September 30, 2025As of December 31, 2024
Current assets$12,086 $12,039 
Non-current assets106,032 107,938 
Current liabilities3,957 5,585 
Non-current liabilities19,255 18,908 
Stockholders’ equity94,906 95,484 
Ownership percentage(1)
93 %93 %
FOOTNOTE:
(1)Represents the Company’s undiluted ownership percentage as of the end of the period presented, rounded to the nearest percent.