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INVESTMENTS (Tables)

9 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

As of December 31, 2023 and March 31, 2023, 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 December 31, 2023:
Secured first lien debt			$	476,126					$	—					$	—					$	476,126
Secured second lien debt			137,480						—						—						137,480
Preferred equity			214,664						—						—						214,664
Common equity/equivalents			74,538						—						22			(A)			74,516
Total Investments as of December 31, 2023			$	902,808					$	—					$	22					$	902,786

									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 as of March 31, 2023			$	753,543					$	—					$	27					$	753,516

(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 December 31, 2023 and March 31, 2023, 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
			December 31, 2023						March 31, 2023
Non-Control/Non-Affiliate Investments
Secured first lien debt			$	324,528					$	279,748
Secured second lien debt			93,340						50,842
Preferred equity			164,241						164,534
Common equity/equivalents(A)			38,207						1,724
Total Non-Control/Non-Affiliate Investments			620,316						496,848
Affiliate Investments
Secured first lien debt			147,354						157,769
Secured second lien debt			44,140						24,892
Preferred equity			50,423						58,051
Common equity/equivalents			36,309						15,243
Total Affiliate Investments			278,226						255,955
Control Investments
Secured first lien debt			4,244						—
Secured second lien debt			—						—
Preferred equity			—						—
Common equity/equivalents			—						713
Total Control Investments			4,244						713
Total investments at fair value using Level 3 inputs			$	902,786					$	753,516

(A)Excludes our investment in Funko with a fair value of $22 thousand and $27 thousand as of December 31, 2023 and March 31, 2023, respectively, which was valued using Level 2 inputs.

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. 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

December 31, 2023

March 31, 2023

December 31, 2023

March 31, 2023

Secured first lien debt

$

476,126

$

432,126

TEV

EBITDA multiple

4.0x – 9.0x / 6.5x

4.4x – 7.7x / 6.4x

EBITDA

$1,100–$22,168 / $10,884

$4,251 – $19,083 / $10,764

Revenue multiple

0.3x – 0.6x / 0.4x

0.3x – 0.6x / 0.3x

Revenue

$15,332 – $98,136 / $73,695

$15,483 – $109,615 / $94,957

—

5,391

Yield Analysis

Discount Rate

N/A

19.4% – 19.9% / 19.7%

Secured second lien debt

112,595

62,750

TEV

EBITDA multiple

5.1x – 10.9x /  6.5x

5.4x – 6.6x / 6.2x

EBITDA

$5,839 – $8,771 / $7,706

$4,112 – $6,379 / $5,501

24,885

12,984

Yield Analysis

Discount Rate

14.0% – 14.0% / 14.0%

14.0% – 14.0% / 14.0%

Preferred equity

214,664

222,585

TEV

EBITDA multiple

4.0x – 9.0x / 6.1x

4.4x – 7.7x / 5.9x

EBITDA

$3,135 – $22,168 / $9,974

$4,251 – $19,083 / $9,486

Revenue multiple

0.3x – 0.6x / 0.4x

0.3x – 0.6x / 0.4x

Revenue

$15,332 – $98,136 / $56,766

$15,483 – $109,615 / $69,247

Common equity/ equivalents(A)

74,516

17,680

TEV

EBITDA multiple

5.0x – 10.9x / 6.0x

4.7x – 7.2x / 6.4x

EBITDA

$1,100 – $60,199 / $14,476

$1,105 – $30,833 / $6,273

Total

$

902,786

$

753,516

(A)Fair value as of both December 31, 2023 and March 31, 2023 excludes our investment in Funko with a fair value of $22 thousand and $27 thousand, respectively, which was valued using Level 2 inputs.

Schedule of 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 nine months ended December 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
Three Months ended December 31, 2023:
Fair value as of September 30, 2023			$	508,504					$	102,747					$	267,596					$	36,767					$	915,614
Total gain (loss):
Net realized gain (loss)(A)			—						—						43,459						—						43,459
Net unrealized appreciation (depreciation)(B)			(7,040)						(4,267)						4,911						3,428						(2,968)
Reversal of previously recorded (appreciation) depreciation upon realization(B)			(1,338)						—						(42,228)						—						(43,566)
New investments, repayments and settlements(C):
Issuances / originations			3,500						39,000						—						25,700						68,200
Settlements / repayments			(27,500)						—						—						—						(27,500)
Sales			—						—						(50,453)						—						(50,453)
Transfers(E)			—						—						(8,621)						8,621						—
Fair value as of December 31, 2023			$	476,126					$	137,480					$	214,664					$	74,516					$	902,786

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Nine Months Ended December 31, 2023
Fair value as of March 31, 2023			$	437,517					$	75,734					$	222,585					$	17,680					$	753,516
Total gain (loss):
Net realized gain (loss)(A)			—						—						43,732						882						44,614
Net unrealized appreciation (depreciation)(B)			(6,153)						(2,254)						35,234						18,228						45,055
Reversal of previously recorded (appreciation) depreciation upon realization(B)			(1,338)						—						(42,228)						(93)						(43,659)
New investments, repayments and settlements(C):
Issuances / originations			73,600						64,000						14,688						30,700						182,988
Settlements / repayments			(27,500)						—						—						—						(27,500)
Sales(D)			—						—						(50,726)						(1,502)						(52,228)
Transfers(E)			—						—						(8,621)						8,621						—
Fair value as of December 31, 2023			$	476,126					$	137,480					$	214,664					$	74,516					$	902,786

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Three Months ended December 31, 2022:
Fair value as of September 30, 2022			$	420,907					$	76,751					$	229,430					$	10,789					$	737,877
Total gain (loss):
Net realized gain (loss)(A)			—						(10,000)						13,372						—						3,372
Net unrealized appreciation (depreciation)(B)			(2,516)						(266)						(7,656)						3,829						(6,609)
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						10,001						—						—						10,001
New investments, repayments and settlements(C):
Issuances / originations			29,900						1,183						—						380						31,463
Settlements / repayments			(800)						(1,500)						—						—						(2,300)
Sales(D)			—						—						(13,372)						—						(13,372)
Transfers			—						—						—						—						—
Fair value as of December 31, 2022			$	447,491					$	76,169					$	221,774					$	14,998					$	760,432

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Nine Months Ended December 31, 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)			—						(10,000)						20,318						—						10,318
Net unrealized appreciation (depreciation)(B)			(21,328)						(4,800)						10,405						10,940						(4,783)
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						10,001						(12,250)						—						(2,249)
New investments, repayments and settlements(C):
Issuances / originations			106,950						5,188						21,000						380						133,518
Settlements / repayments			(48,800)						(6,596)						—						—						(55,396)
Sales(D)			—						—						(35,298)						—						(35,298)
Transfers(E)			(14,418)						14,418						—						—						—
Fair value as of December 31, 2022			$	447,491					$	76,169					$	221,774					$	14,998					$	760,432

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

(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective periods ended December 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)The nine months ended December 31, 2023 includes $0.3 million of proceeds from the recapitalization of Old World Christmas, Inc. ("Old World"). The three and nine months ended December 31, 2022 include $13.4 million of proceeds from the recapitalization of Old World. The nine months ended December 31, 2022 also includes $12.3 million return of equity cost basis from Horizon Facilities Services, Inc.

(E)2023: Transfers represent preferred equity of SFEG Holdings, Inc. ("SFEG") with a total cost basis and fair value of $4.8 million and $8.6 million, respectively, which was converted to common equity in October 2023.

2022: Transfers represent (1) secured second lien debt of Ginsey Home Solutions, Inc. 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.

Schedule of Investment Holdings

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

			December 31, 2023																		March 31, 2023
			Cost									Fair Value									Cost									Fair Value
Secured first lien debt			$	517,539		59.6		%				$	476,126		52.7		%				$	471,439		65.4		%				$	437,517		58.1		%
Secured second lien debt			148,158			17.0		%				137,480			15.2		%				84,158			11.7		%				75,734			10.1		%
Total debt			665,697			76.6		%				613,606			67.9		%				555,597			77.1		%				513,251			68.2		%
Preferred equity			151,969			17.5		%				214,664			23.8		%				149,099			20.7		%				222,585			29.5		%
Common equity/equivalents			50,838			5.9		%				74,538			8.3		%				15,934			2.2		%				17,707			2.3		%
Total equity/equivalents			202,807			23.4		%				289,202			32.1		%				165,033			22.9		%				240,292			31.8		%
Total investments			$	868,504		100.0		%				$	902,808		100.0		%				$	720,630		100.0		%				$	753,543		100.0		%

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

			December 31, 2023												March 31, 2023
			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
Diversified/Conglomerate Services			$	255,141					28.3		%				$	268,954					35.7		%
Home and Office Furnishings, Housewares, and Durable Consumer Products			155,897						17.3		%				143,685						19.1		%
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)			92,293						10.2		%				20,088						2.7		%
Hotels, Motels, Inns, and Gaming			80,557						8.9		%				58,713						7.8		%
Buildings and Real Estate			64,352						7.1		%				60,571						8.0		%
Healthcare, Education, and Childcare			50,237						5.6		%				37,445						5.0		%
Oil and Gas			45,983						5.1		%				—						—		%
Leisure, Amusement, Motion Pictures, and Entertainment			38,356						4.2		%				47,616						6.3		%
Mining, Steel, Iron and Non-Precious Metals			27,831						3.1		%				25,998						3.5		%
Aerospace and Defense			25,754						2.9		%				22,215						2.8		%
Chemicals, Plastics, and Rubber			19,256						2.1		%				24,891						3.3		%
Printing and Publishing			15,210						1.7		%				—						—		%
Cargo Transport			13,500						1.5		%				14,707						2.0		%
Telecommunications			8,881						1.0		%				18,987						2.5		%
Other < 2.0%			9,560						1.0		%				9,673						1.3		%
Total investments			$	902,808					100.0		%				$	753,543					100.0		%

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

			December 31, 2023												March 31, 2023
Location			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
South			$	326,849					36.2		%				$	171,056					22.7		%
West			228,407						25.3		%				197,989						26.3		%
Northeast			213,403						23.6		%				266,612						35.4		%
Midwest			134,149						14.9		%				117,886						15.6		%
Total investments			$	902,808					100.0		%				$	753,543					100.0		%

Schedule of 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 December 31, 2023:

									Amount
For the remaining three months ending March 31, 2024									$	33,918
For the fiscal years ending March 31:
			2025						100,470
			2026						204,919
			2027						162,746
			2028						38,250
			Thereafter						125,394
			Total contractual repayments						$	665,697
			Investments in equity securities						202,807
			Total cost basis of investments held as of December 31, 2023:						$	868,504

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