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Fair value of Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Unobservable Inputs and Ranges

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):

Asset Category		Fair value at September 30, 2022				Valuation Technique		Unobservable Input		Range of Input (Weighted Average) (1)
First lien		$	70,363			Market Comparable		Broker/Dealer bids or quotes		N/A
First lien			930,806			Market Comparable		Market Yield		8.2% - 21% (10.9%)
First lien			8,473			Enterprise Market Value		EBITDA multiple		14.0
Second lien			147			Market Comparable		Market Yield		0.147
Second lien			—			Enterprise Market Value		EBITDA multiple		6.0x
Equity			89,906			Enterprise Market Value		EBITDA multiple		3.3x - 21.4x (12.5x)
Equity			5,232			Enterprise Market Value		DLOM		11.8%
Total Level 3 investments		$	1,104,927
Long-Term Credit Facility		$	167,563			Market Comparable		Market Yield		2.5%

Asset Category		Fair value at September 30, 2021				Valuation Technique		Unobservable Input		Range of Input (Weighted Average) (1)
First lien		$	177,480			Market Comparable		Broker/Dealer bids or quotes		N/A
First lien			754,004			Market Comparable		Market Yield		5.6% – 13.0% (7.5%)
Second lien			8,085			Market Comparable		Market Yield		11.0% – 14.0% (11.8%)
First lien			2,934			Enterprise Market Value		EBITDA multiple		1.8x
Second lien			864			Enterprise Market Value		EBITDA multiple		5.4x
Equity			70,253			Enterprise Market Value		EBITDA multiple		4.7x – 18.5x (11.5x)
Equity			7,569			Enterprise Market Value		DLOM		9.3%
Total Level 3 investments		$	1,021,189
Long-Term Credit Facility		$	218,851			Market Comparable		Market Yield		2.1%

The weighted averages disclosed in the table above were weighted by their relative fair value

Summary of Investments, Cash and Cash Equivalents, Credit Facility, or Prior Credit Facility, Notes and Asset Backed Debt

Our investments, cash and cash equivalents, Credit Facility or Prior Credit Facility, as applicable, 2023 Notes, 2026 Notes and 2031 Asset-Backed Debt were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):

		Fair Value at September 30, 2022
Description		Fair Value				Level 1				Level 2				Level 3				Measured at Net Asset Value (1)
First lien		$	1,009,642			$	—			$	—			$	1,009,642			$	—
Second lien			147				—				—				147				—
Equity			154,465				—				—				95,138				59,327
Total investments			1,164,254				—				—				1,104,927				59,327
Cash and cash equivalents			47,880				47,880				—				—				—
Total investments and cash and cash equivalents		$	1,212,134			$	47,880			$	—			$	1,104,927			$	59,327
Credit Facility payable		$	167,563			$	—			$	—			$	167,563			$	—
2023 Notes payable			96,812				96,812				—				—				—
2026 Notes payable (2)			182,276				—				182,276				—				—
2031 Asset-Backed Debt(2)			226,128				—				—				226,128				—
Total debt		$	672,779			$	96,812			$	182,276			$	393,691			$	—

(1)In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSSL and PTSF are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value, and thus have not been classified in the fair value hierarchy.

(2)We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes and the 2031 Asset-Backed Debt and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.

		Fair Value at September 30, 2021
Description		Fair Value				Level 1				Level 2				Level 3				Measured at Net Asset Value (1)
First lien		$	934,418			$	—			$	—			$	934,418			$	—
Second lien			8,949				—				—				8,949				—
Equity			138,252				—				—				77,822				60,430
Total investments			1,081,619				—				—				1,021,189				60,430
Cash and cash equivalents			49,826				49,826				—				—				—
Total investments and cash and cash equivalents		$	1,131,445			$	49,826			$	—			$	1,021,189			$	60,430
Credit Facility payable		$	218,851			$	—			$	—			$	218,851			$	—
2023 Notes payable			111,114				111,114				—				—				—
2026 Notes payable (2)			97,171				—				97,171				—				—
2031 Asset-Backed Debt(2)			225,497				—				—				225,497				—
Total debt		$	652,633			$	111,114			$	97,171			$	444,348			$	—

(1)In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSSL and PTSF is measured using the net asset value per share (or its equivalent) as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy.

We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes and the 2031 Asset-Backed Debt and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.

Reconciliation of Investments Measured at Fair Value Using Significant Unobservable Inputs Level 3

The tables below show a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) ($ in thousands):

		Year Ended September 30, 2022
Description		First Lien				Second lien, subordinated debt and equity investments				Totals
Beginning Balance		$	934,419			$	86,770			$	1,021,189
Net realized losses			894				(12,358	)			(11,464	)
Net change in unrealized depreciation			(17,661	)			11,655				(6,006	)
Purchases, PIK interest, net discount accretion and non-cash exchanges			593,144				27,048				620,192
Sales, repayments and non-cash exchanges			(501,154	)			(17,830	)			(518,984	)
Transfers in and/or out of Level 3			—				—				—
Ending Balance		$	1,009,642			$	95,285			$	1,104,927
Net change in unrealized depreciation reported within the net change in unrealized depreciation on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date.		$	(15,247	)		$	11,584			$	(3,663	)

		Year Ended September 30, 2021
Description		First Lien				Second lien, subordinated debt and equity investments				Totals
Beginning Balance		$	968,616			$	78,402			$	1,047,018
Net realized losses			(3,731	)			(8,220	)			(11,951	)
Net change in unrealized appreciation			16,326				26,124				42,450
Purchases, PIK interest, net discount accretion and non-cash exchanges			630,324				15,477				645,801
Sales, repayments and non-cash exchanges			(677,116	)			(25,013	)			(702,129	)
Transfers in and/or out of Level 3			—				—				—
Ending Balance		$	934,419			$	86,770			$	1,021,189
Net change in unrealized appreciation reported within the net change in unrealized   appreciation on investments in our Consolidated Statements of Operations    attributable to our Level 3 assets still held at the reporting date.		$	10,313			$	30,025			$	40,338

Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs Level 3

The table below shows a reconciliation of the beginning and ending balances for liabilities recognized at fair value and measured using significant unobservable inputs (Level 3) ($ in thousands):

		Years Ended September 30,
Long-Term Credit Facility		2022				2021
Beginning Balance (cost – $219,400 and $308,599, respectively)		$	218,851			$	299,047
Net change in unrealized (depreciation) appreciation included in earnings			(1,542	)			9,003
Borrowings			147,254				346,500
Repayments			(197,000	)			(435,699	)
Transfers in and/or out of Level 3			—				—
Ending Balance (cost – $168,830 and $219,400, respectively)		$	167,563			$	218,851

Net Change in Fair Value on Foreign Currency Translation on Outstanding Borrowings

As of September 30, 2022, we had outstanding non-U.S. dollar borrowings on our Prior Credit Facility. Net change in fair value from foreign currency translation on outstanding borrowings is listed below ($ in thousands):

Foreign Currency		Amount Borrowed				Borrowing Cost				Current Value				Reset Date		Change in Fair Value
Australian Dollar		$	10,000			$	7,254			$	6,430			10/1/22			(824	)

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