INVESTMENTS

6 Months Ended

Sep. 30, 2012

INVESTMENTS [Abstract]

INVESTMENTS

3.  INVESTMENTS

We record our investments at fair value as determined in good faith by our Board of Directors in accordance with GAAP.  When available, we base the fair value of our investments on directly observable market prices or on market data derived for comparable assets.  For all other investments, inputs used to measure fair value reflect management's best estimate of assumptions that would be used by market participants in pricing the investments in a hypothetical transaction.

The levels of fair value inputs used to measure our investments are characterized in accordance with the fair value hierarchy established by the Accounting Standards Codification ("ASC").  We use judgment and consider factors specific to the investment in determining the significance of an input to a fair value measurement.  While management believes our valuation methodologies are appropriate and consistent with market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.  The three levels of the fair value hierarchy and investments that fall into each of the levels are described below:

· Level 1:  Investments whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access.  We use Level 1 inputs for publicly traded securities.  Such investments are valued at the closing price for listed securities and at the lower of the closing bid price or the closing sale price for  NASDAQ securities on the valuation date.

· Level 2: Investments whose values are based on observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.  These inputs may include quoted prices for the identical instrument in non-active markets, quoted prices for similar instruments in active markets and similar data.  We did not value any of our investments using Level 2 inputs as of September 30, 2012 and 2011.

· Level 3: Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the investment.  We use Level 3 inputs for measuring the fair value of approximately 69.6% of our investments

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within the fair value measurement is categorized based on the lowest level input that is significant to the fair value measurement which may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3).  Therefore, gains and losses for such investments categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable (Level 3).  We conduct reviews of fair value hierarchy classifications on a quarterly basis.  Changes in the observability of valuation inputs may result in a reclassification of certain investments.

Unobservable inputs are those inputs for which little or no market data exists and, therefore, require an entity to develop its own assumptions. The fair value determination of each portfolio company requires one or more of the following unobservable inputs:

· Financial information obtained from each portfolio company, including audited and unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;

· Current and projected financial condition of the portfolio company;

· Current and projected ability of the portfolio company to service its debt obligations;

· Projected operating results of the portfolio company;

· Current information regarding any offers to purchase the investment or recent private sales transactions;

· Current ability of the portfolio company to raise any additional financing as needed;

· Change in the economic environment which may have a material impact on the operating results of the portfolio company;

· Qualitative assessment of key management;

· Contractual rights, obligations or restrictions associated with the investment; and

· Other factors deemed relevant

Preferred Stock and Common Stock

The significant unobservable inputs used in the fair value measurement of our equity securities are EBITDA multiples, revenue multiples, net book values, tangible book value multiples, and the weighted average costs of capital ("WACC"). Generally, increases or decreases in EBITDA or revenue multiple inputs result in a higher or lower fair value measurement, respectively. Generally, increases or decreases in WACC result in a lower or higher fair value measurement, respectively. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third party-appraisals. For recent investments, we generally rely on our cost basis to determine the fair value unless fair value is deemed to have departed from this level.

Debt Securities

The significant unobservable inputs used in the fair value measurement of our debt securities are risk adjusted discount factors used in the yield valuation technique and probability of principal recovery. Significant increase or decrease in any of these valuation inputs in isolation would result in a significantly lower or higher fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third party inputs.

Limited Partnership or Limited Liability Company Interests

For recent investments, we evaluate limited partnership or limited liability company interests at cost, which is deemed to represent market value, unless or until there is substantive evidence that cost does not correspond to fair value. Thereafter, these securities are generally valued at our percentage interest of the fund or company's calculated net asset value, unless there is a substantive evidence that the net asset value does not correspond to fair value. All investments of each fund are valued in accordance with ASC 820.

Warrants

We generally use the Black-Scholes option pricing model to determine the fair value of warrants held in our portfolio. Option pricing models, including the Black-Scholes model, require the use of subjective inputs, including expected volatility, expected life, expected dividend rate, and expected risk-free rate of return. In the Black-Scholes model, variation in the expected volatility or expected term assumptions has a significant impact on fair value.

The table below presents the valuation technique and quantitative information about the significant unobservable inputs utilized by the Company to value our Level 3 investments as of September 30, 2012. Unobservable inputs are those inputs for which little or no market data exists and therefore require an entity to develop its own assumptions. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to our determination of fair value.

Type	Valuation Technique	Fair Value (in millions)		Unobservable Input	Range		Weighted Average
Preferred & Common Equity	Market Approach	$	317.8	EBITDA Multiple		3.25x - 6.50x		6.27x
	Market Approach	$	19.8	Revenue Multiple		0.30x – 2.02x		1.35x
	Net Book Value	$	6.7	Cash and Asset Value	NA		NA
	Discounted Cash Flow	$	0.8	Discount Rate		1.83%		1.83%
	Market Approach	$	2.5	Multiple of Tangible Book Value		1.06x		1.06x
	Market Approach	$	3.2	Recent Transaction Price	NA		NA
	Market Approach	$	0.2	Market Value of Held Securities	NA		NA
		$	351.0
Warrants	Black Scholes Pricing Model	$	0.0	Stock Price and Expected Volatility	$	0.00	$	0.00
Debt	Discounted Cash Flow	$	5.7	Discount Rate		10.35%		10.35%
	Face Value	$	6.2	Recent Transaction Price	NA		NA
		$	11.9
Partnership Interests	Net Asset Value*	$	10.6	Fund Value	NA		NA
	Total	$	373.5

*All funds are valued in accordance with ASC 820.

As of September 30, 2012 and March 31, 2012, 69.6% and 56.9%, respectively, of our portfolio investments were categorized as Level 3.

The following fair value hierarchy tables set forth our investment portfolio by level as of September 30, 2012 and March 31, 2012 (in millions):

			Fair Value Measurements at 9/30/12 Using
Asset Category	Total		Quoted  Prices in Active Markets for Identical Assets (Level 1)		Significant Other  Observable  Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Debt	$	11.9	$	−	$	−	$	11.9
Partnership Interests		10.6		−		−		10.6
Preferred Equity		41.9		−		−		41.9
Common Equity		471.9		162.8		−		309.1
Total Investments	$	536.3	$	162.8	$	−	$	373.5

			Fair Value Measurements at 3/31/12 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Debt	$	11.2	$	−	$	−	$	11.2
Partnership Interests		11.0		−		−		11.0
Preferred Equity		33.9		−		−		33.9
Common Equity		502.4		240.7		−		261.7
Total Investments	$	558.5	$	240.7	$	−	$	317.8

The following table provides a summary of changes in the fair value of investments measured using Level 3 inputs during the six months ended September 30, 2012 (in millions):

	Fair Value 3/31/12		Net Unrealized  Appreciation  (Depreciation)			Net Changes  from Unrealized to Realized		New /  Add-On Invest- ments			Divesti- tures		Fair Value  9/30/12
Debt	$	11.2	$	(2.3	)	$	−	$	3.0		$	−	$	11.9
Partnership Interest		11.0		(0.1	)		−		(0.3	)		−		10.6
Preferred Equity		33.9		4.8			−		3.2			−		41.9
Common Equity		261.7		47.4			−		−			−		309.1
Total Investments	$	317.8	$	49.8		$	−	$	5.9		$	−	$	373.5

The total unrealized gains included in earnings that related to assets still held at report date for the six months ended September 30, 2012 and 2011 were $54,724,826 and ($36,784,513) respectively.