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INVESTMENTS (Tables)

12 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Fair Value, Assets Measured on Recurring Basis

As of March 31, 2023 and 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 March 31, 2023:
Secured first lien debt			$	437,517					$	—					$	—								$	437,517
Secured second lien debt			75,734						—						—									75,734
Preferred equity			222,585						—						—									222,585
Common equity/equivalents			17,707						—						27			(A)						17,680
Total Investments at March 31, 2023			$	753,543					$	—					$	27								$	753,516

									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 at 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 March 31, 2023 and 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
			March 31,
			2023						2022
Non-Control/Non-Affiliate Investments
Secured first lien debt			$	279,748					$	233,673
Secured second lien debt			50,842						66,917
Preferred equity			164,534						139,927
Common equity/equivalents(A)			1,724						1,533
Total Non-Control/Non-Affiliate Investments			496,848						442,050
Affiliate Investments
Secured first lien debt			157,769						191,414
Secured second lien debt			24,892						1,041
Preferred equity			58,051						77,672
Common equity/equivalents			15,243						1,432
Total Affiliate Investments			255,955						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			$	753,516					$	714,322

(A)Excludes our investment in Funko with a fair value of $27 thousand and $74 thousand as of March 31, 2023 and 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

March 31, 2023

March 31, 2022

March 31, 2023

March 31, 2022

Secured first lien debt

$

432,126

$

411,023

TEV

EBITDA multiple

4.4x – 7.7x / 6.4x

3.4x – 9.3x / 7.0x

EBITDA

$4,251 – $19,083 / $10,764

$3,990 – $13,707 / $8,221

Revenue multiple

0.3x – 0.6x / 0.3x

0.7x – 0.7x / 0.7x

Revenue

$15,483 – $109,615 / $94,957

$14,072 – $14,072 / $14,072

5,391

14,064

Yield Analysis

Discount Rate

19.4% – 19.9% / 19.7%

11.3% – 15.2% / 14.6%

Secured second lien debt

62,750

39,637

TEV

EBITDA multiple

5.4x – 6.6x / 6.2x

5.6x – 6.8x / 6.0x

EBITDA

$4,112 – $6,379 / $5,501

$3,953 – $5,488 / $4,959

Revenue multiple

N/A

0.7x – 0.7x / 0.7x

Revenue

N/A

$14,072 – $14,072 / $14,072

12,984

28,321

Yield Analysis

Discount Rate

14.0% – 14.0% / 14.0%

10.0% – 12.2% /  11.6%

Preferred equity

222,585

217,599

TEV

EBITDA multiple

4.4x – 7.7x / 5.9x

3.4x – 9.3x / 6.8x

EBITDA

$4,251 – $19,083 / $9,486

$1,210 – $13,707 / $6,926

Revenue multiple

0.3x – 0.6x / 0.4x

0.7x – 0.7x / 0.7x

Revenue

$15,483 – $109,615 / $69,247

$14,072 – $14,072 / $14,072

Common equity/equivalents(A)

17,680

3,678

TEV

EBITDA multiple

4.7x – 7.2x / 6.4x

4.8x – 8.4x / 5.8x

EBITDA

$1,105 – $30,833 / $6,273

$829 – $13,707 / $5,709

Revenue multiple

N/A

0.7x – 0.7x / 0.7x

Revenue

N/A

$14,072 – $14,072 / $14,072

Total

$

753,516

$

714,322

(A)Fair value as of both March 31, 2023 and 2022 excludes our investment in Funko with a fair value of $27 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 years ended March 31, 2023 and 2022 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
Year ended March 31, 2023:
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)			—						(10,000)						20,778						—						10,778
Net unrealized appreciation (depreciation)(B)			(29,552)						(5,235)						11,216						13,622						(9,949)
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						10,001						(12,250)						—						(2,249)
New investments, repayments and settlements(C):
Issuances / originations			107,200						5,188						21,000						380						133,768
Settlements / repayments			(50,800)						(6,596)						—						—						(57,396)
Sales(D)			—						—						(35,758)						—						(35,758)
Transfers(E)			(14,418)						14,418						—						—						—
Fair value as of March 31, 2023			$	437,517					$	75,734					$	222,585					$	17,680					$	753,516

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Year ended March 31, 2022:
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)			(10,000)						—						23,725						—						13,725
Net unrealized appreciation (depreciation)(B)			756						2,956						111,405						(15,027)						100,090
Reversal of previously recorded (appreciation) depreciation upon realization(B)			860						—						(26,053)						—						(25,193)
New investments, repayments and settlements(C):
Issuances / originations			68,638						9,648						14,472						—						92,758
Settlements / repayments			(48,898)						(2,500)						—						—						(51,398)
Sales			—						—						(49,394)						—						(49,394)
Transfers(E)			45,043						(45,043)						(16,034)						16,034						—
Fair value as of March 31, 2022			$	425,087					$	67,958					$	217,599					$	3,678					$	714,322

(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2023 and 2022.

(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2023 and 2022.

(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 $13.4 million of proceeds from the recapitalization of Old World Christmas, Inc. ("Old World") and $12.3 million of proceeds from the recapitalization of Horizon Facilities Services, Inc ("Horizon").

(E)2023: Transfers include (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 in August 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 in September 2022.

2022: 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 in June 2021, (2) secured first lien debt of D.P.M.S., Inc. ("Danco") 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”) in September 2021, (3) preferred equity of Galaxy Technologies, Inc. ("Galaxy") 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 in September 2021 and (4) preferred equity of SOG Specialty Knives & Tools, LLC with a total cost and fair value of $0.6 million and $0.0 million, respectively, which was converted into common equity of Gladstone SOG Investments, Inc. in December 2021.

Summary Investment Holdings

The following table summarizes our investments by security type as of March 31, 2023 and 2022:

			March 31, 2023																								March 31, 2022
			Cost												Fair Value												Cost												Fair Value
Secured first lien debt			$	471,439					65.4		%				$	437,517					58.1		%				$	429,457					64.2		%				$	425,087					59.5		%
Secured second lien debt			84,158						11.7		%				75,734						10.1		%				81,147						12.1		%				67,958						9.5		%
Total debt			555,597						77.1		%				513,251						68.2		%				510,604						76.3		%				493,045						69.0		%
Preferred equity			149,099						20.7		%				222,585						29.5		%				143,079						21.4		%				217,599						30.5		%
Common equity/equivalents			15,934						2.2		%				17,707						2.3		%				15,565						2.3		%				3,752						0.5		%
Total equity/equivalents			165,033						22.9		%				240,292						31.8		%				158,644						23.7		%				221,351						31.0		%
Total investments			$	720,630					100.0		%				$	753,543					100.0		%				$	669,248					100.0		%				$	714,396					100.0		%

Investments at fair value consisted of the following industry classifications as of March 31, 2023 and 2022:

			March 31, 2023												March 31, 2022
			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
Diversified/Conglomerate Services			$	268,954					35.7		%				$	307,403					43.0		%
Home and Office Furnishings, Housewares, and Durable Consumer Products			143,685						19.1		%				125,440						17.6		%
Buildings and Real Estate			60,571						8.0		%				—						—		%
Hotels, Motels, Inns, and Gaming			58,713						7.8		%				37,923						5.3		%
Leisure, Amusement, Motion Pictures, and Entertainment			47,616						6.3		%				46,514						6.5		%
Healthcare, Education, and Childcare			37,445						5.0		%				39,252						5.5		%
Mining, Steel, Iron and Non-Precious Metals			25,998						3.5		%				24,250						3.4		%
Chemicals, Plastics, and Rubber			24,891						3.3		%				26,618						3.7		%
Aerospace and Defense			22,215						2.8		%				25,296						3.5		%
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)			20,088						2.7		%				13,823						1.9		%
Telecommunications			18,987						2.5		%				32,467						4.6		%
Cargo Transport			14,707						2.0		%				14,533						2.0		%
Diversified/Conglomerate Manufacturing			9,646						1.3		%				14,064						2.0		%
Other < 2.0%			27						0.0		%				6,813						1.0		%
Total investments			$	753,543					100.0		%				$	714,396					100.0		%

Investments at fair value were included in the following geographic regions of the U.S. as of March 31, 2023 and 2022:

						March 31, 2023												March 31, 2022
Location						Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
Northeast						$	266,612					35.4		%				$	194,100					27.2		%
West						197,989						26.3		%				158,607						22.2		%
South						171,056						22.7		%				188,978						26.4		%
Midwest						117,886						15.6		%				172,711						24.2		%
Total investments						$	753,543					100.0		%				$	714,396					100		%

The geographic region indicates the location of the headquarters for our portfolio companies. A portfolio company may have additional business locations in other geographic regions.

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual principal repayment and maturity of our investment portfolio for the next five fiscal years and thereafter, assuming no voluntary prepayments, as of March 31, 2023:

												Amount
For the fiscal years ending March 31:						2024						$	81,218
						2025						89,614
						2026						202,419
						2027						144,096
						2028						38,250
						Thereafter						—
						Total contractual repayments						$	555,597
						Investments in equity securities						165,033
						Total cost basis of investments held as of March 31, 2023:						$	720,630

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