Fair Value Measurement of Investments

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurement of Investments

Fair Value Measurement of Investments

ASC Topic 820 defines fair value as the amount that would be received in the sale of an asset or paid in the transfer of a

liability in an orderly transaction between market participants at the measurement date. Where available, the Company uses

quoted market prices based on the last sales price on the measurement date.

In accordance with ASC Topic 820, 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 valuations based

upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest

priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). To the

extent that fair value is based on inputs that are less observable, the determination of fair value requires a significant

amount of management judgment.

The three-tier hierarchy of inputs is summarized below.

Level 1 - Quoted prices are available in active markets/exchanges for identical investments as of the reporting date.

Level 2 - Pricing inputs are observable inputs including, but not limited to, prices quoted for similar assets or liabilities

in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets that are not active,

and fair value is determined through the use of models or other valuation methodologies.

Level 3 - Pricing inputs are unobservable for the investment and include activities where there is little, if any, market

activity for the investment. The inputs into determination of fair value require significant management judgment and

estimation.

The inputs used by management in estimating the fair value of Level 3 investments may include valuations and other

reporting provided by representatives of the portfolio companies, original transaction prices, recent transactions for

identical or similar instruments, and comparisons to fair values of comparable investments, and may include adjustments to

reflect illiquidity or non-transferability. The Adviser has policies with respect to its investments, which may assist the

Adviser in assessing the quality of information provided by, or on behalf of, each portfolio investment and in determining

whether such information continues to be provided by a reliable source or whether further investigation is necessary. Any

such investigation, as applicable, may or may not require the Adviser to forego its normal reliance on the value supplied

by, or on behalf of, such portfolio investment and to independently determine the fair value of the Company’s interest in

such portfolio investments, consistent with the Adviser’s valuation procedures.

The Company has engaged an independent third-party valuation provider, which performs valuation procedures to arrive at

estimated valuation ranges of the illiquid investments on a quarterly basis (other than immaterial investments, which are

internally valued quarterly unless otherwise deemed appropriate by the Valuation Committee, and subsequently

corroborated by an independent valuation firm on an annual basis). Investments that have been completed within the past

three months are fair valued approximating cost unless there has been a material event since the completion date. If there

has been a material event or material information that was not known as of the close of the transaction, the independent

third-party valuation provider provides an independent valuation range. The types of valuation methodologies employed by

the third-party valuation provider include discounted cash flow, recent financing and enterprise value valuation

methodologies. Pursuant to the Rule 2a-5 under the 1940 Act, the Board has chosen to designate the Adviser as the

Valuation Designee to perform fair value determinations relating to the value of the assets for which market quotations are

not readily available, subject to the Board's oversight.

The Company’s investments and borrowings are subject to market risk. Market risk is the potential for changes in the value

due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the

investments and borrowings are traded.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing

in these securities. The availability of valuation techniques and observable inputs can vary from security to security and is

affected by a wide variety of factors including the type of security, whether the security is new and not yet established in

the marketplace, and other characteristics particular to the transaction. Inputs may include price information, volatility

statistics, specific and broad credit data, liquidity statistics and other factors.

The use of these valuation models requires significant estimation and judgment by the Adviser. While the Company

believes its valuation methods are appropriate, other market participants may value identical assets differently than the

Company at the measurement date. The methods used by the Company may produce a fair value calculation that may not

be indicative of net realizable value or reflective of future fair values. The Company may also have risk associated with its

concentration of investments in certain geographic regions and industries.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the

determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that

may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined.

Accordingly, the degree of judgment exercised by the Adviser in determining fair value is greatest for securities

categorized in Level 3.

The determination of what constitutes “observable” requires significant judgment by the Adviser. The Adviser considers

observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not

proprietary. Such observable data may fall into different levels of the fair value hierarchy. In such cases, for disclosure

purposes, the level in the fair value hierarchy where the fair value measurement falls (in its entirety) is based on the lowest

level input that is significant to the fair value measurement. The categorization of an investment within the hierarchy is

based upon the pricing transparency of the investment, and observability of prices and inputs may be reduced for many

investments. This condition could cause the investment to be reclassified to a lower level within the fair value hierarchy.

The consolidated financial statements include portfolio investments at fair value of $732,215 and $557,087 as of June 30,

2025 and December 31, 2024, respectively. The fair value of the Company's portfolio investments was determined in good

faith by the Company’s Board. Because of the inherent uncertainty of valuation, the determined values may differ

significantly from the values that would have been used had a liquid market existed for the investments as of June 30, 2025

and December 31, 2024.

The following tables present fair value measurements of investments, by major class according to the fair value hierarchy

as of June 30, 2025 and December 31, 2024.

	June 30, 2025
	Fair Value Measurements
	Level 1	Level 2	Level 3	Total
First lien senior secured loans	$—	$—	$679,742	$679,742
Equity	—	—	45,662	45,662
Subordinated debt	—	—	3,293	3,293
Preferred equity	—	—	2,018	2,018
Convertible note	—	—	1,500	1,500
Warrants	—	—	—	—
Total Investments	$—	$—	$732,215	$732,215

	December 31, 2024
	Fair Value Measurements
	Level 1	Level 2	Level 3	Total
First lien senior secured loans	$—	$—	$540,195	$540,195
Equity	—	—	12,028	12,028
Subordinated debt	—	—	1,712	1,712
Preferred equity	—	—	1,652	1,652
Convertible note			1,500	1,500
Warrants	—	—	—	—
Total Investments	$—	$—	$557,087	$557,087

The carrying value of the Credit Facility and SBA-guaranteed debentures approximates fair value as of June 30, 2025 and

December 31, 2024, and would be categorized as Level 3 of the fair value hierarchy if determined as of the reporting date.

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs

for the six months ended June 30, 2025 and June 30, 2024.

	For the six months ended June 30, 2025
	Investments
	First Lien Senior Secured Loans	Subordinated Debt	Equity	Preferred Equity	Convertible Note	Warrants	Total Investments
Balance as of December 31, 2024	$540,195	$1,712	$12,028	$1,652	$1,500	$—	$557,087
Purchases of investments and other adjustments to cost	252,190	1,555	32,025	—	—	—	285,770
Proceeds from sales and repayments of investments	(113,697)	—	(547)	—	—	—	(114,244)
Net realized gain (loss)	82	—	—	—	—	—	82
Net accretion of discount on investments	1,132	—	—		—	—	1,132
Net change in unrealized gain (loss) on investments	(160)	26	2,156	366	—	—	2,388
Balance as of June 30, 2025	$679,742	$3,293	$45,662	$2,018	$1,500	$—	$732,215

	For the six months ended June 30, 2024
	Investments
	First Lien Senior Secured Loans	Subordinated Debt	Equity	Preferred Equity	Warrants	Total Investments
Balance as of December 31, 2023	$265,287	$1,753	$4,901	$1,652	$—	$273,593
Purchases of investments and other adjustments to cost	156,156	96	—	—	—	156,252
Proceeds from sales and repayments of investments	(8,988)	—	—	—	—	(8,988)
Net realized gain (loss)	—	—	—	—	—	—
Net accretion of discount on investments	679	—	—	—	—	679
Net change in unrealized gain (loss) on investments	598	41	99	91	—	829
Balance as of June 30, 2024	$413,732	$1,890	$5,000	$1,743	$—	$422,365

For the six months ended June 30, 2025, the net change in unrealized gain (loss) on investments attributable to Level 3

investments still held on June 30, 2025 was $2,388 as shown on the Consolidated Statements of Operations. For the six

months ended June 30, 2024, the net change in unrealized gain (loss) on investments attributable to Level 3 investments

still held on June 30, 2024 was $829 as shown on the Consolidated Statements of Operations.

Purchases of investments and other adjustments to costs include purchases of new investments at cost, accretion/

amortization of income from discount/premium on debt securities and PIK.

Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the

beginning of the period which the reclassifications occur. There were no transfers between Levels 1, 2 and 3 during the six

months ended June 30, 2025 and June 30, 2024.

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the

valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The table below is not intended to be

all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the

Company.

The tables below summarize the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value

hierarchy as of June 30, 2025 and December 31, 2024.

					Range
	Fair Value, as of June 30, 2025	Valuation Technique	Unobservable Input	Weighted Average Mean	Minimum	Maximum
Assets:
First lien senior secured loans	$517,024	Discounted Cash Flow	Discount Rate	10.6%	8.2%	20.5%
First lien senior secured loans	40,090	Waterfall Analysis	EV/EBITDA	6.3x	5.5x	7.0x
First lien senior secured loans	122,628	Amortized Cost	Cost	N/A	N/A	N/A
Equity	38,806	Amortized Cost	Cost	N/A	N/A	N/A
Equity	6,856	Waterfall Analysis	EV/EBITDA	5.8x	5.5x	6.0x
Subordinated debt	1,808	Discounted Cash Flow	Discount Rate	14.8%	14.0%	15.5%
Subordinated debt	1,485	Amortized Cost	Cost	N/A	N/A	N/A
Preferred equity	2,018	Waterfall Analysis	EV/EBITDA	7.0x	6.8x	7.3x
Convertible note	1,500	Amortized Cost	Cost	N/A	N/A	N/A
Warrants	—	Waterfall Analysis	EV/EBITDA	7.3x	5.5x	8.5x
Total Level 3 Assets	$732,215

					Range
	Fair Value, as of December 31, 2024	Valuation Technique	Unobservable Input	Weighted Average Mean	Minimum	Maximum
Assets:
First lien senior secured loans	$404,750	Discounted Cash Flow	Discount Rate	11.2%	8.4%	18.9%
First lien senior secured loans	39,900	Comparable Multiples	EV/EBITDA	6.3x	5.5x	7.0x
First lien senior secured loans	95,545	Amortized Cost	Cost	N/A	N/A	N/A
Subordinated debt	1,712	Discounted Cash Flow	Discount Rate	14.8%	14.0%	15.5%
Equity	5,000	Comparable Multiples	EV/EBITDA	6.3x	6.0x	6.5x
Equity	7,028	Amortized Cost	Cost	N/A	N/A	N/A
Preferred equity	1,652	Comparable Multiples	EV/EBITDA	8.5x	8.3x	8.8x
Convertible note	1,500	Amortized Cost	Cost	N/A	N/A	N/A
Warrants	—	Comparable Multiples	EV/EBITDA	7.0x	5.5x	8.0x
Total Level 3 Assets	$557,087

The significant unobservable input used in the income approach of fair value measurement of the Company’s investments

is the discount rate used to discount the estimated future cash flows received from the underlying investment, which

include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease

(increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the

following factors: risk of default, rating of the investment and comparable investments, and call provisions.

The significant unobservable inputs used in the market approach of fair value measurement of the Company’s investments

are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a

population of public companies for each investment with similar operations and attributes of the portfolio company. Using

these guideline public company data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The

Company selects percentages from the range of multiples for purposes of determining the portfolio company’s estimated

enterprise value based on such multiple and generally the latest twelve months EBITDA or revenue of the portfolio

company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in

enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.