| Investments Measured at Fair Value by Investment Type on Recurring Basis |
The Company’s investments measured at fair value by investment type on a recurring basis as of September 30, 2025 and December 31, 2024 were as follows:
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Fair Value Measurements at September 30, 2025 Using |
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Investment Type |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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Significant
Other
Observable
Inputs (Level 2) |
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Significant
Unobservable
Inputs (Level 3) |
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Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
269,334,628 |
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|
$ |
269,334,628 |
|
Senior Secured Notes |
|
|
- |
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|
|
- |
|
|
|
39,040,890 |
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|
|
39,040,890 |
|
Second Lien Senior Secured Loans |
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|
- |
|
|
|
- |
|
|
|
1,473,025 |
|
|
|
1,473,025 |
|
Warrants |
|
|
- |
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|
- |
|
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|
1,044,939 |
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|
1,044,939 |
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Preferred Stock |
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- |
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- |
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|
500,000 |
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|
500,000 |
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Total |
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$ |
- |
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$ |
- |
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|
$ |
311,393,482 |
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$ |
311,393,482 |
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Fair Value Measurements at December 31, 2024 Using |
|
Investment Type |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
|
|
Significant
Other
Observable
Inputs (Level 2) |
|
|
Significant
Unobservable
Inputs (Level 3) |
|
|
Total |
|
First Lien Senior Secured Loans |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
239,860,206 |
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|
$ |
239,860,206 |
|
Senior Secured Notes |
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|
- |
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|
- |
|
|
|
34,656,192 |
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|
34,656,192 |
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Preferred Stock |
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|
- |
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|
|
- |
|
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|
500,000 |
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|
500,000 |
|
Warrants |
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|
- |
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|
- |
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|
225,000 |
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|
225,000 |
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Total |
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$ |
- |
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$ |
- |
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|
$ |
275,241,398 |
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|
$ |
275,241,398 |
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| Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments |
The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of September 30, 2025 and December 31, 2024. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount rate ranges are shown as spread over the U.S. Prime Rate ("PRIME"), Secured Overnight Financing Rate ("SOFR") and/or U.S. Treasury Rates, as applicable, for senior secured first lien term loans, as of September 30, 2025 and December 31, 2024.
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Investment Type |
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Fair Value as of
September 30, 2025 |
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Valuation
Techniques/Methodologies |
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Unobservable Input |
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Range |
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|
Weighted
Average(1) |
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First Lien Senior Secured Loans |
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$ |
208,140,610 |
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Discounted Cash Flow |
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Discount Rate |
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8.40% - 29.63% |
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|
13.00 |
% |
First Lien Senior Secured Loans |
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|
61,194,018 |
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|
Recent Transaction |
|
N/A |
|
N/A |
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|
N/A |
|
Senior Secured Notes |
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|
39,040,890 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.37% - 18.23% |
|
|
|
11.08 |
% |
Second Lien Senior Secured Loans |
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|
1,473,025 |
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Discounted Cash Flow |
|
Discount Rate |
|
18.64% - 20.64% |
|
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|
19.64 |
% |
Preferred Stock |
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|
500,000 |
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Market Approach |
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Current Value |
|
2.25x |
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|
2.25x |
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Warrants |
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|
885,939 |
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Recent Transaction |
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N/A |
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N/A |
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N/A |
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Warrants |
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|
159,000 |
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Option Pricing Model |
|
Volatility Factor |
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|
58.70 |
% |
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|
58.70 |
% |
Total |
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$ |
311,393,482 |
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Investment Type |
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Fair Value as of
December 31, 2024 |
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|
Valuation
Techniques/Methodologies |
|
Unobservable Input |
|
Range |
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|
Weighted
Average(1) |
|
First Lien Senior Secured Loans |
|
$ |
239,860,206 |
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Discounted Cash Flow |
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Discount Rate |
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9.10% - 28.60% |
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|
13.38 |
% |
Senior Secured Notes |
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|
34,656,192 |
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Discounted Cash Flow |
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Discount Rate |
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7.40% - 17.20% |
|
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|
11.53 |
% |
Preferred Stock |
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|
500,000 |
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Market Approach |
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Current Value |
|
2.5x |
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2.5x |
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Warrants |
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|
225,000 |
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Option Pricing Model |
|
Volatility Factor |
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|
47.20 |
% |
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|
47.20 |
% |
Total |
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$ |
275,241,398 |
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(1)The weighted average is calculated based on the fair value of each investment.
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| Changes in Fair Value of Level 3 Portfolio Investments |
The following tables provide a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the nine months ended September 30, 2025 and 2024:
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First Lien
Senior Secured
Loans |
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Senior
Secured Notes |
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Second Lien Senior Secured Loans |
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Preferred
Stock |
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Warrants |
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Total |
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Fair Value as of December 31, 2024 |
|
$ |
239,860,206 |
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|
$ |
34,656,192 |
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$ |
- |
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$ |
500,000 |
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$ |
225,000 |
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$ |
275,241,398 |
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Purchases |
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120,405,247 |
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|
3,600,000 |
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|
- |
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- |
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|
904,255 |
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|
124,909,502 |
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Accretion of discount and fees (amortization
of premium), net |
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1,857,239 |
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|
239,798 |
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|
8,655 |
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- |
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- |
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2,105,692 |
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PIK interest |
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1,311,017 |
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|
174,112 |
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|
14,212 |
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|
- |
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- |
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|
1,499,341 |
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Proceeds from sales of investments and
principal repayments |
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(91,045,553 |
) |
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|
- |
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(1,545,432 |
) |
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|
- |
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|
- |
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(92,590,985 |
) |
Net realized gain (loss) on investments |
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- |
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|
- |
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- |
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|
- |
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|
- |
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|
- |
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Net change in unrealized appreciation
(depreciation) on investments |
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|
(26,642 |
) |
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|
370,788 |
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(31,296 |
) |
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|
- |
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(84,316 |
) |
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|
228,534 |
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Transfers between investment types |
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(3,026,886 |
) |
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|
- |
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|
3,026,886 |
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|
- |
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|
- |
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|
- |
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Balance as of September 30, 2025 |
|
$ |
269,334,628 |
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$ |
39,040,890 |
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|
$ |
1,473,025 |
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$ |
500,000 |
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$ |
1,044,939 |
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$ |
311,393,482 |
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Net change in unrealized appreciation/depreciation on Level 3 investments still held as of September 30, 2025 |
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$ |
(202,733 |
) |
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$ |
370,787 |
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$ |
(37,400 |
) |
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$ |
- |
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$ |
(84,316 |
) |
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$ |
46,338 |
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First Lien
Senior Secured
Loans |
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Senior
Secured Notes |
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Preferred
Stock |
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Warrants |
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Total |
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Fair Value as of December 31, 2023 |
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46,006,000 |
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$ |
8,114,000 |
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|
- |
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|
- |
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$ |
54,120,000 |
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Purchases |
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|
1,082,174 |
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3,316,250 |
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500,000 |
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|
242,826 |
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|
5,141,250 |
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Accretion of discount and fees (amortization
of premium), net |
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|
316,057 |
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|
185,246 |
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|
- |
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|
- |
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|
501,303 |
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PIK interest |
|
|
182,634 |
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|
- |
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|
- |
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|
- |
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|
182,634 |
|
Proceeds from sales of investments and
principal repayments |
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|
(4,344,000 |
) |
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|
- |
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|
- |
|
|
|
- |
|
|
|
(4,344,000 |
) |
Net realized gain (loss) on investments |
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|
- |
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|
- |
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|
- |
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|
|
- |
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|
|
- |
|
Net change in unrealized appreciation
(depreciation) on investments |
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|
127,135 |
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|
127,015 |
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|
- |
|
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|
(66,826 |
) |
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|
187,324 |
|
Balance as of September 30, 2024 |
|
$ |
43,370,000 |
|
|
$ |
11,742,511 |
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|
$ |
500,000 |
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|
$ |
176,000 |
|
|
$ |
55,788,511 |
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|
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Net change in unrealized appreciation/depreciation on Level 3 investments still held as of September 30, 2024 |
|
$ |
127,135 |
|
|
$ |
127,015 |
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|
$ |
- |
|
|
$ |
(66,826 |
) |
|
$ |
187,324 |
|
|