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FAIR VALUE
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Loans Held for Investment
The Company’s loans are typically valued using a yield analysis, which is typically performed for non-credit impaired loans to borrowers where the Company does not own a controlling equity position. Alternative valuation methodologies may be used as appropriate, and can include a market analysis, income analysis, or recovery analysis. To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk. In the yield analysis, the Company considers the current contractual interest rate, the maturity and other terms of the loan relative to risk of the company and the specific loan. A key determinant of risk, among other things, is the leverage through the loan relative to the enterprise value of the borrower. As loans held by the Company are substantially illiquid with no active loan market, the Company depends on primary market data, including newly funded loans, as well as secondary market data with respect to high-yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
The following table presents fair value measurements of investments and cash and cash equivalents as of March 31, 2026:
Fair Value Measurement as of March 31, 2026
TotalLevel 1Level 2Level 3
First lien senior term loans$279,237,624 $— $— $279,237,624 
Cash and cash equivalents112,730,935 112,730,935 — — 
Total portfolio investments, cash and cash equivalents$391,968,559 $112,730,935 $— $279,237,624 
The following table presents fair value measurements of investments and cash and cash equivalents pre-Conversion as of December 31, 2025:
 Fair Value Measurement as of December 31, 2025
 TotalLevel 1Level 2Level 3
First lien senior term loans$26,080,763 $— $— $26,080,763 
Cash and cash equivalents38,605,507 38,605,507 — — 
Total portfolio investments, cash and cash equivalents$64,686,270 $38,605,507 $— $26,080,763 
The following table presents changes in investments that use Level 3 inputs as of and for the three months ended March 31, 2026:
 Three Months Ended
March 31, 2026
Fair value, at December 31, 2025$26,080,763 
Conversion fair value adjustment(1)
207,488,812 
Net change in unrealized appreciation on investments7,118,443 
Purchases of investments78,866,344 
Proceeds from principal repayments and sales of investments(41,751,649)
Net accretion of discount on investments1,107,387 
PIK interest327,524 
Fair value, at March 31, 2026$279,237,624 
Net change in unrealized appreciation on investments still held as of March 31, 2026$7,118,443 
(1)Refer to Note 2 for more information on the Conversion.
The following table presents changes in investments that use Level 3 inputs pre-Conversion as of and for the three months ended March 31, 2025:
Three Months Ended
March 31, 2025
Fair value, at December 31, 2024$30,510,804 
Change in unrealized losses on loans at fair value, net(685,478)
Loan repayments(1,252,941)
Fair value, at March 31, 2025$28,572,385 
Net change in unrealized losses on loans still held as of March 31, 2025$(685,478)
The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of March 31, 2026 and December 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, 2026
Unobservable Input
Asset CategoryFair ValuePrimary Valuation TechniquesInputEstimated Range
Weighted Average(1)
First lien term loan$17,763,882 Recovery analysisRecovery rate
39.40% - 48.20%
43.80%
198,480,337 Yield analysisMarket yield
12.76% - 28.14%
18.08%
15,000,000 Market quotesBroker/dealer bids or quotesN/AN/A
47,993,405 Market approachRevenue multiple
0.40x - 0.95x
0.79x
Total investments$279,237,624 
As of December 31, 2025
Unobservable Input
Asset CategoryFair ValuePrimary Valuation TechniquesInputEstimated Range
Weighted Average(1)
First lien term loan$16,259,763 Recovery analysisRecovery rate
31.60% - 37.90%
34.75%
4,821,000 Yield analysisMarket yield
19.50% - 21.50%
20.50%
5,000,000 Market quotesBroker/dealer bids or quotesN/AN/A
Total investments$26,080,763    
(1)Unobservable inputs were weighted by the relative fair value of the investments.
Changes in market yields, revenue multiples, and recovery rates may change the fair value of certain of the Company’s loans. Generally, an increase in market yields may result in a decrease in the fair value of certain of the Company’s loans, while a decrease in revenue multiples and recovery rates may result in a decrease in the fair value of certain of the Company’s loans.
Due to the inherent uncertainty of determining the fair value of loans that do not have a readily available market value, the fair value of the Company’s loans may fluctuate from period to period. Additionally, the fair value of the Company’s loans may differ significantly from the values that would have been used had a ready market existed for such loans and may differ materially from the values that the Company may ultimately realize. Further, such loans are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a loan in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it.
In addition, changes in the market environment and other events that may occur over the life of the loans may cause the gains or losses ultimately realized on these loans to be different than the unrealized gains or losses reflected in the valuations currently assigned.
Fair Value of Financial Instruments
GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the balance sheets, for which it is practicable to estimate that value.
The following table details the carrying value and fair value of the Company’s debt obligations not recognized at fair value in the unaudited interim consolidated statement of assets and liabilities as of March 31, 2026:
 As of March 31, 2026
 Carrying ValueFair Value
Financial assets:
Cash and cash equivalents$112,730,935 $112,730,935 
Financial liabilities:
Senior notes payable, net$76,448,216 $74,305,000 
The following table details the carrying value and fair value of the Company’s financial instruments not recognized at fair value in the consolidated balance sheet as of December 31, 2025:
As of December 31, 2025
Carrying ValueFair Value
Financial assets:
Cash and cash equivalents$38,605,507 $38,605,507 
Loans held for investment at carrying value, net$253,625,119 $207,805,490 
Financial liabilities:
Senior notes payable, net$76,322,493 $74,151,000 
Cash and cash equivalents have a carrying value which approximates their fair value due to the short-term nature of these instruments. The Company categorizes the fair value measurement of these assets as Level 1. The Company’s loans held for investment are measured using unobservable inputs, or Level 3 inputs. The fair value of the Company’s 2027 Senior Notes is estimated using a market bid technique based on observable inputs of the last available bid price in the market at the end of the period, or Level 2 inputs.