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INVESTMENTS (Tables)

6 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Fair Value, Assets Measured on Recurring Basis

As of September 30, 2022 and March 31, 2022, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:

									Fair Value Measurements
			Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
As of September 30, 2022:
Secured first lien debt			$	420,907					$	—					$	—					$	420,907
Secured second lien debt			76,751						—						—						76,751
Preferred equity			229,430						—						—						229,430
Common equity/equivalents			10,847						—						58			(A)			10,789
Total Investments as of September 30, 2022			$	737,935					$	—					$	58					$	737,877

									Fair Value Measurements
			Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
As of March 31, 2022:
Secured first lien debt			$	425,087					$	—					$	—					$	425,087
Secured second lien debt			67,958						—						—						67,958
Preferred equity			217,599						—						—						217,599
Common equity/equivalents			3,752						—						74			(A)			3,678
Total Investments as of March 31, 2022			$	714,396					$	—					$	74					$	714,322

(A)Fair value was determined based on the closing market price of shares of Funko, Inc. (our units in Funko can be converted into common shares of Funko, Inc.) at the reporting date less a discount for lack of marketability, as our investment was subject to certain restrictions.

The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of September 30, 2022 and March 31, 2022, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:

			Total Recurring Fair Value Measurements Reported in Consolidated Statements of Assets and Liabilities Valued Using Level 3 Inputs
			September 30, 2022						March 31, 2022
Non-Control/Non-Affiliate Investments
Secured first lien debt			$	273,715					$	233,673
Secured second lien debt			53,109						66,917
Preferred equity			160,290						139,927
Common equity/equivalents(A)			1,827						1,533
Total Non-Control/Non-Affiliate Investments			488,941						442,050
Affiliate Investments
Secured first lien debt			147,192						191,414
Secured second lien debt			23,642						1,041
Preferred equity			69,140						77,672
Common equity/equivalents			8,249						1,432
Total Affiliate Investments			248,223						271,559
Control Investments
Secured first lien debt			—						—
Secured second lien debt			—						—
Preferred equity			—						—
Common equity/equivalents			713						713
Total Control Investments			713						713
Total investments at fair value using Level 3 inputs			$	737,877					$	714,322

(A)Excludes our investment in Funko with a fair value of $58 thousand and $74 thousand as of September 30, 2022 and March 31, 2022, respectively, which was valued using Level 2 inputs.

Fair Value Measurement Inputs and Valuation Techniques

The weighted-average calculations in the table below are based on the principal balances for all debt-related calculations and on the cost basis for all equity-related calculations for the particular input.

Quantitative Information about Level 3 Fair Value Measurements

Fair Value as of

Valuation Technique/ Methodology

Unobservable Input

Range / Weighted-Average as of

September 30, 2022

March 31, 2022

September 30, 2022

March 31, 2022

Secured first lien debt

$

415,473

$

411,023

TEV

EBITDA multiple

3.2x – 8.0x / 6.4x

3.4x – 9.3x / 7.0x

EBITDA

$3,604–$17,320 / $10,537

$3,990 - $13,707/$8,221

Revenue multiple

0.3x –0.6x / 0.3x

0.7x – 0.7x / 0.7x

Revenue

$13,188 – $99,672 / $80,503

$14,072 – $14,072/$14,072

5,434

14,064

Yield Analysis

Discount Rate

14.5% – 17.5% / 16.2%

11.3% – 15.2% / 14.6%

Secured second lien debt

62,252

39,637

TEV

EBITDA multiple

5.1x – 6.4x /  5.7x

5.6x – 6.8x / 6.0x

EBITDA

$5,302 – $5,616 / $5,489

$3,953 – $5,488 / $4,959

Revenue multiple

0.5x –0.5x / 0.5x

0.7x – 0.7x /0.7x

Revenue

$13,188 – $13,188 / $13,188

$14,072 – $14,072 / $14,072

14,499

28,321

Yield Analysis

Discount Rate

11.2% –12.1% / 12.0%

10.0% – 12.2% / 11.6%

Preferred equity

229,430

217,599

TEV

EBITDA multiple

3.2x – 8.0x / 6.1x

3.4x – 9.3x / 6.8x

EBITDA

$3,604 – $17,320 / $8,714

$1,210 – $13,707 / $6,926

Revenue multiple

0.3x – 0.6x / 0.4x

0.7x – 0.7x / 0.7x

Revenue

$13,188 – $99,672 / $50,473

$14,072 – $14,072 / $14,072

Common equity/ equivalents(A)

10,789

3,678

TEV

EBITDA multiple

4.4x – 7.5x / 5.2x

4.8x – 8.4x / 5.8x

EBITDA

$1,065 – $22,002 / $6,562

$829 – $13,707 / $5,709

Revenue multiple

0.5x – 0.5x / 0.5x

0.7x – 0.7x /  0.7x

Revenue

$13,188 – $13,188 / $13,188

$14,072 – $14,072 / $14,072

Total

$

737,877

$

714,322

(A)Fair value as of both September 30, 2022 and March 31, 2022 excludes our investment in Funko with a fair value of $58 thousand and $74 thousand, respectively, which was valued using Level 2 inputs.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three and six months ended September 30, 2022 and 2021 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Three Months ended September 30, 2022:
Fair value as of June 30, 2022			$	376,752					$	67,936					$	238,665					$	6,072					$	689,425
Total gain (loss):
Net realized gain (loss)(A)			—						—						2,218						—						2,218
Net unrealized appreciation (depreciation)(B)			(11,677)						(4,507)						845						4,717						(10,622)
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						—						—						—						—
New investments, repayments and settlements(C):
Issuances / originations			70,250						4,000						—						—						74,250
Settlements / repayments			—						(5,096)						—						—						(5,096)
Sales(D)			—						—						(12,298)						—						(12,298)
Transfers(E)			(14,418)						14,418						—						—						—
Fair value as of September 30, 2022			$	420,907					$	76,751					$	229,430					$	10,789					$	737,877

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Six Months ended September 30, 2022:
Fair value as of March 31, 2022			$	425,087					$	67,958					$	217,599					$	3,678					$	714,322
Total gain (loss):
Net realized gain (loss)(A)			—						—						6,946						—						6,946
Net unrealized appreciation (depreciation)(B)			(18,812)						(4,534)						18,061						7,111						1,826
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						—						(12,250)						—						(12,250)
New investments, repayments and settlements(C):
Issuances / originations			77,050						4,005						21,000						—						102,055
Settlements / repayments			(48,000)						(5,096)						—						—						(53,096)
Sales(D)			—						—						(21,926)						—						(21,926)
Transfers(E)			(14,418)						14,418						—						—						—
Fair value as of September 30, 2022			$	420,907					$	76,751					$	229,430					$	10,789					$	737,877

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Three Months ended September 30, 2021:
Fair value as of June 30, 2021			$	416,973					$	57,044					$	202,465					$	2,021					$	678,503
Total gain (loss):
Net realized gain (loss)(A)			—						—						—						—						—
Net unrealized appreciation (depreciation)(B)			(2,618)						4,098						36,500						(10,463)						27,517
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						—						—						—						—
New investments, repayments and settlements(C):
Issuances / originations			24,400						5						6,000						—						30,405
Settlements / repayments			—						—						—						—						—
Sales			—						—						—						—						—
Transfers(E)			(7,342)						7,342						(16,034)						16,034						—
Fair value as of September 30, 2021			$	431,413					$	68,489					$	228,931					$	7,592					$	736,425

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Six Months ended September 30, 2021:
Fair value as of March 31, 2021			$	368,688					$	102,897					$	159,478					$	2,671					$	633,734
Total gain (loss):
Net realized gain (loss)(A)			—						—						1,786						—						1,786
Net unrealized appreciation (depreciation)(B)			3,232						4,126						79,356						(11,113)						75,601
Reversal of previously recorded (appreciation) depreciation upon realization(B)			60						—						(629)						—						(569)
New investments, repayments and settlements(C):
Issuances / originations			28,450						6,509						12,600						—						47,559
Settlements / repayments			(14,060)						—						—						—						(14,060)
Sales			—						—						(7,626)						—						(7,626)
Transfers(E)			45,043						(45,043)						(16,034)						16,034						—
Fair value as of September 30, 2021			$	431,413					$	68,489					$	228,931					$	7,592					$	736,425

(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective periods ended September 30, 2022 and 2021.

(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective periods ended September 30, 2022 and 2021.

(C)Includes increases in the cost basis of investments resulting from new portfolio investments, the amortization of discounts and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs, and other cost-basis adjustments.

(D)Includes $10.1 million return of preferred equity cost basis from Horizon Facilities Services, Inc. ("Horizon").

(E)2022: Transfers represent (1) secured second lien debt of Ginsey with a total cost basis and fair value of $12.2 million, which was converted into secured first lien debt during the three months ended September 30, 2022 and (2) secured first lien debt of PSI Molded Plastics, Inc. with a total cost basis and fair value of $26.6 million, which was converted into secured second lien debt during the three months ended September 30, 2022.

2021: Transfers represent (1) secured second lien debt of J.R. Hobbs with a total cost basis and fair value of $52.5 million and $52.4 million, respectively, which was converted into secured first lien debt during the three months ended June 30, 2021, (2) secured first lien debt of D.P.M.S., Inc. with a total cost basis and fair value of $12.3 million and $7.3 million, respectively, which was converted into secured second lien debt of Galaxy Technologies Holdings, Inc. (“Galaxy Technologies Holdings”) during the three months ended September 30, 2021 and (3) preferred equity of Galaxy Technologies, Inc. with a total cost basis and fair value of $11.5 million and $16.0 million, respectively, which was converted into common equity of Galaxy Technologies Holdings during the three months ended September 30, 2021.

Summary Investment Holdings

The following table summarizes our investments by security type as of September 30, 2022 and March 31, 2022:

			September 30, 2022																		March 31, 2022
			Cost									Fair Value									Cost									Fair Value
Secured first lien debt			$	444,089		63.2		%				$	420,907		57.0		%				$	429,457		64.2		%				$	425,087		59.5		%
Secured second lien debt			94,474			13.4		%				76,751			10.4		%				81,147			12.1		%				67,958			9.5		%
Total debt			538,563			76.6		%				497,658			67.4		%				510,604			76.3		%				493,045			69.0		%
Preferred equity			149,099			21.2		%				229,430			31.1		%				143,079			21.4		%				217,599			30.5		%
Common equity/equivalents			15,556			2.2		%				10,847			1.5		%				15,565			2.3		%				3,752			0.5		%
Total equity/equivalents			164,655			23.4		%				240,277			32.6		%				158,644			23.7		%				221,351			31.0		%
Total investments			$	703,218		100.0		%				$	737,935		100.0		%				$	669,248		100.0		%				$	714,396		100.0		%

Investments at fair value consisted of the following industry classifications as of September 30, 2022 and March 31, 2022:

			September 30, 2022												March 31, 2022
			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
Diversified/Conglomerate Services			$	267,913					36.3		%				$	307,403					43.0		%
Home and Office Furnishings, Housewares, and Durable Consumer Products			133,359						18.1		%				125,440						17.6		%
Buildings and Real Estate			60,050						8.1		%				—						—		%
Hotels, Motels, Inns, and Gaming			53,090						7.2		%				37,923						5.3		%
Leisure, Amusement, Motion Pictures, and Entertainment			45,169						6.1		%				46,514						6.5		%
Healthcare, Education, and Childcare			38,937						5.3		%				39,252						5.5		%
Aerospace and Defense			23,746						3.2		%				25,296						3.5		%
Chemicals, Plastics, and Rubber			23,642						3.2		%				26,618						3.7		%
Mining, Steel, Iron and Non-Precious Metals			23,368						3.2		%				24,250						3.4		%
Telecommunications			23,200						3.1		%				32,467						4.6		%
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)			17,407						2.4		%				13,823						1.9		%
Cargo Transport			14,827						2.0		%				14,533						2.0		%
Diversified/Conglomerate Manufacturing			9,259						1.3		%				14,064						2.0		%
Other < 2.0%			3,968						0.5		%				6,813						1.0		%
Total investments			$	737,935					100.0		%				$	714,396					100.0		%

Investments at fair value were included in the following geographic regions of the U.S. as of September 30, 2022 and March 31, 2022:

			September 30, 2022												March 31, 2022
Location			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
West			$	236,774					32.1		%				$	158,607					22.2		%
Northeast			218,107						29.6		%				194,100						27.2		%
South			172,784						23.4		%				188,978						26.4		%
Midwest			110,270						14.9		%				172,711						24.2		%
Total investments			$	737,935					100.0		%				$	714,396					100.0		%

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of September 30, 2022:

									Amount
For the remaining six months ending March 31, 2023									$	87,050
For the fiscal years ending March 31:
			2024						54,268
			2025						85,834
			2026						136,369
			2027						135,295
			Thereafter						39,750
			Total contractual repayments						$	538,566
			Adjustments to cost basis of debt investments						(3)
			Investments in equity securities						164,655
			Total cost basis of investments held as of September 30, 2022:						$	703,218

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