As of March 31, 2025, the Company's portfolio included one loan held at fair value. The aggregate commitment under this loan was approximately $11.5 million and outstanding principal was $5.5 million as of both March 31, 2025 and December 31, 2024. As of March 31, 2025, there is $6.0 million of unfunded commitments related to the loan held at fair value.

The loan held at fair value as of March 31, 2025 was originated to a related party (Note 8), and is included within Loans, at fair value - related party on the consolidated balance sheets. The Company elected the fair value option for this asset due to other indebtedness of the borrower that is senior to our loan, uncertainty with respect to management's intent to hold to maturity or payoff given the related party nature of the investment, and the potential of management electing the fair value option on a more frequent basis, for eligible assets, prospectively.

The following table summarizes the Company's loan held at fair value as of March 31, 2025.



Loan	Location(s)	Maturity Date	Principal Balance		Amortized Cost		Fair Value		Interest Rate	Periodic Payment
39	Minnesota	6/26/2026	$	5,500,000	$	5,500,000	$	5,335,000	10.5% Cash	I/O
		Subtotal	$	5,500,000	$	5,500,000	$	5,335,000

The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of March 31, 2025. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.


	As of March 31, 2025
				Unobservable Input
	Fair Value		Primary Valuation Technique	Input	Value
Loans, at fair value - related party	$	5,335,000	Yield analysis	Discount rate		13.94	%
Total loans, at fair value	$	5,335,000

For the three months ended March 31, 2025, our loan held at fair value using the fair value option included an insignificant amount of unrealized losses in net income before income taxes, that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on a yield analysis and discount rate applied to the subject loan. Interest income on the loan measured at fair value is calculated based on the interest rate of the loan and is recorded in the interest income on the consolidated statement of operations.

As of March 31, 2025, the loan held at fair value was current on all interest and principal payments due.