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INVESTMENTS (Tables) | 3 Months Ended
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Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Schedule of Fair Value, Assets Measured on Recurring Basis | As of June 30, 2024 and March 31, 2024, 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 June 30, 2024: |  |  |  |  |  |
Secured first lien debt | $ | 463,219 |  |  | $ | — |  |  | $ | — |  | $ | 463,219 |
Secured second lien debt | 137,827 |  |  | — |  |  | — |  | 137,827 |
Preferred equity | 212,591 |  |  | — |  |  | — |  | 212,591 |
Common equity/equivalents | 85,501 |  |  | — |  |  | — |  | 85,501 |
Total Investments as of June 30, 2024 | $ | 899,138 |  |  | $ | — |  |  | $ | — |  | $ | 899,138 |
|  |  | 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, 2024: |  |  |  |  |  |  |
Secured first lien debt | $ | 474,856 |  |  | $ | — |  |  | $ | — |  |  | $ | 474,856 |
Secured second lien debt | 138,703 |  |  | — |  |  | — |  |  | 138,703 |
Preferred equity | 213,480 |  |  | — |  |  | — |  |  | 213,480 |
Common equity/equivalents | 93,465 |  |  | — |  |  | 18 |  | (A) | 93,447 |
Total Investments as of March 31, 2024 | $ | 920,504 |  |  | $ | — |  |  | $ | 18 |  |  | $ | 920,486 |
(A)Fair value was determined based on the closing market price of shares of Funko, Inc. (our units in Funko could 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 June 30, 2024 and March 31, 2024, 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
| June 30, 2024 |  | March 31, 2024
Non-Control/Non-Affiliate Investments |  |  |
Secured first lien debt | $ | 313,758 |  |  | $ | 324,348 |
Secured second lien debt | 93,340 |  |  | 93,340 |
Preferred equity | 158,924 |  |  | 162,522 |
Common equity/equivalents(A) | 41,254 |  |  | 42,005 |
Total Non-Control/Non-Affiliate Investments | 607,276 |  |  | 622,215 |
Affiliate Investments |  |  |
Secured first lien debt | 147,999 |  |  | 147,603 |
Secured second lien debt | 44,487 |  |  | 45,363 |
Preferred equity | 53,667 |  |  | 50,958 |
Common equity/equivalents | 44,247 |  |  | 51,442 |
Total Affiliate Investments | 290,400 |  |  | 295,366 |
Control Investments |  |  |
Secured first lien debt | 1,462 |  |  | 2,905 |
Secured second lien debt | — |  |  | — |
Preferred equity | — |  |  | — |
Common equity/equivalents | — |  |  | — |
Total Control Investments | 1,462 |  |  | 2,905 |
Total investments at fair value using Level 3 inputs | $ | 899,138 |  |  | $ | 920,486 |
(A)Excludes our investment in Funko as of March 31, 2024 with a fair value of $18 thousand, 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
| June 30, 2024 |  | March 31, 2024 |  |  |  | June 30, 2024 |  | March 31, 2024
Secured first lien debt | $ | 463,219 |  |  | $ | 474,856 |  |  | TEV |  | EBITDA multiple |  | 4.1x – 8.3x / 6.3x |  | 4.2x – 8.8x / 6.4x
|  |  |  |  |  |  | EBITDA |  | $215 – $23,739 / $10,446 |  | $1,091 – $23,547 / $10,509
|  |  |  |  |  |  | Revenue multiple |  | 0.3x – 0.6x / 0.4x |  | 0.3x – 0.6x / 0.4x
|  |  |  |  |  |  | Revenue |  | $30,240 – $91,494 / $75,374 |  | $31,586 – $93,916 / $77,580
Secured second lien debt | 112,827 |  |  | 113,703 |  |  | TEV |  | EBITDA multiple |  | 5.0x – 7.3x / 6.2x |  | 5.1x – 15.0x / 7.0x
|  |  |  |  |  |  | EBITDA |  | $5,980 – $23,050 / $14,355 |  | $5,648 – $23,003 / $14,192
| 25,000 |  |  | 25,000 |  |  | Yield Analysis |  | Discount Rate |  | 13.8% – 13.8% / 13.8% |  | 13.8% – 13.8% / 13.8%
Preferred equity | 212,591 |  |  | 213,480 |  |  | TEV |  | EBITDA multiple |  | 4.1x – 8.3x / 6.0x |  | 4.2x – 8.8x / 6.1x
|  |  |  |  |  |  | EBITDA |  | $215 – $23,739 / $9,564 |  | $1,091 – $23,547 / $9,502
|  |  |  |  |  |  | Revenue multiple |  | 0.3x – 0.6x / 0.4x |  | 0.3x – 0.6x / 0.4x
|  |  |  |  |  |  | Revenue |  | $30,240 – $91,494 / $73,002 |  | $31,586 – $93,916 / $75,099
Common equity/ equivalents(A) | 85,501 |  |  | 93,447 |  |  | TEV |  | EBITDA multiple |  | 5.0x – 7.3x / 6.2x |  | 5.0x – 15.0x / 6.4x
|  |  |  |  |  |  | EBITDA |  | $825 – $64,876 / $23,827 |  | $1,154 – $63,269 / $23,615
Total | $ | 899,138 |  |  | $ | 920,486 |  |  |  |  |  |  |  |  |
(A)Fair value as of March 31, 2024 excludes our investment in Funko with a fair value of $18 thousand, 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 months ended June 30, 2024 and 2023 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 June 30, 2024: |  |  |  |  |  |  |  |  |
Fair value as of March 31, 2024 | $ | 474,856 |  |  | $ | 138,703 |  |  | $ | 213,480 |  |  | $ | 93,447 |  |  | $ | 920,486 |
Total gain (loss): |  |  |  |  |  |  |  |  |
Net realized gain (loss)(A) | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net unrealized appreciation (depreciation)(B) | (9,235) |  |  | (876) |  |  | (889) |  |  | (7,946) |  |  | (18,946) |
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — |  |  | — |  |  | — |  |  | — |  |  | — |
New investments, repayments and settlements(C): |  |  |  |  |  |  |  |  |
Issuances / originations | 598 |  |  | — |  |  | — |  |  | — |  |  | 598 |
Settlements / repayments | (3,000) |  |  | — |  |  | — |  |  | — |  |  | (3,000) |
Sales | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfers | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value as of June 30, 2024 | $ | 463,219 |  |  | $ | 137,827 |  |  | $ | 212,591 |  |  | $ | 85,501 |  |  | $ | 899,138 |
| Secured First Lien Debt |  | Secured Second Lien Debt |  | Preferred Equity |  | Common Equity/ Equivalents |  | Total
Three Months ended June 30, 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) | — |  |  | — |  |  | 273 |  |  | 882 |  |  | 1,155 |
Net unrealized appreciation (depreciation)(B) | (2) |  |  | 4,060 |  |  | (11,602) |  |  | 6,813 |  |  | (731) |
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — |  |  | — |  |  | — |  |  | (93) |  |  | (93) |
New investments, repayments and settlements(C): |  |  |  |  |  |  |  |  |
Issuances / originations | 14,700 |  |  | 25,000 |  |  | 3,275 |  |  | 5,000 |  |  | 47,975 |
Settlements / repayments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Sales(D) | — |  |  | — |  |  | (273) |  |  | (1,502) |  |  | (1,775) |
Transfers | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value as of June 30, 2023 | $ | 452,215 |  |  | $ | 104,794 |  |  | $ | 214,258 |  |  | $ | 28,780 |  |  | $ | 800,047 |
Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2024 and 2023. (B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2024 and 2023. (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 three months ended June 30, 2023 includes $0.3 million of proceeds from the recapitalization of Old World Christmas, Inc. ("Old World").
Schedule of Investment Holdings | The following table summarizes our investments by security type as of June 30, 2024 and March 31, 2024:
| June 30, 2024 |  | March 31, 2024
| Cost |  | Fair Value |  | Cost |  | Fair Value
Secured first lien debt | $ | 511,022 |  | 60.0 | % |  | $ | 463,219 |  | 51.5 | % |  | $ | 513,425 |  | 60.1 | % |  | $ | 474,856 |  | 51.6 | %
Secured second lien debt | 144,958 |  | 17.0 | % |  | 137,827 |  | 15.3 | % |  | 144,958 |  | 16.9 | % |  | 138,703 |  | 15.0 | %
Total debt | 655,980 |  | 77.0 | % |  | 601,046 |  | 66.8 | % |  | 658,383 |  | 77.0 | % |  | 613,559 |  | 66.6 | %
Preferred equity | 145,070 |  | 17.0 | % |  | 212,591 |  | 23.7 | % |  | 145,070 |  | 17.0 | % |  | 213,480 |  | 23.2 | %
Common equity/equivalents | 50,816 |  | 6.0 | % |  | 85,501 |  | 9.5 | % |  | 50,837 |  | 6.0 | % |  | 93,465 |  | 10.2 | %
Total equity/equivalents | 195,886 |  | 23.0 | % |  | 298,092 |  | 33.2 | % |  | 195,907 |  | 23.0 | % |  | 306,945 |  | 33.4 | %
Total investments | $ | 851,866 |  | 100.0 | % |  | $ | 899,138 |  | 100.0 | % |  | $ | 854,290 |  | 100.0 | % |  | $ | 920,504 |  | 100.0 | %
Investments at fair value consisted of the following industry classifications as of June 30, 2024 and March 31, 2024:
| June 30, 2024 |  | March 31, 2024
| Fair Value |  | Percentage of Total Investments |  | Fair Value |  | Percentage of Total Investments
Diversified/Conglomerate Services | $ | 239,139 |  |  | 26.6 | % |  | $ | 264,535 |  |  | 28.7 | %
Home and Office Furnishings, Housewares, and Durable Consumer Products | 165,201 |  |  | 18.5 | % |  | 160,038 |  |  | 17.3 | %
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) | 92,527 |  |  | 10.3 | % |  | 92,781 |  |  | 10.1 | %
Hotels, Motels, Inns, and Gaming | 73,646 |  |  | 8.2 | % |  | 77,366 |  |  | 8.4 | %
Buildings and Real Estate | 61,504 |  |  | 6.8 | % |  | 60,431 |  |  | 6.6 | %
Oil and Gas | 52,818 |  |  | 5.9 | % |  | 51,171 |  |  | 5.6 | %
Healthcare, Education, and Childcare | 49,767 |  |  | 5.5 | % |  | 49,638 |  |  | 5.4 | %
Leisure, Amusement, Motion Pictures, and Entertainment | 39,814 |  |  | 4.4 | % |  | 39,350 |  |  | 4.3 | %
Mining, Steel, Iron and Non-Precious Metals | 34,504 |  |  | 3.8 | % |  | 30,537 |  |  | 3.3 | %
Aerospace and Defense | 29,067 |  |  | 3.2 | % |  | 29,064 |  |  | 3.2 | %
Chemicals, Plastics, and Rubber | 19,487 |  |  | 2.2 | % |  | 20,363 |  |  | 2.2 | %
Printing and Publishing | 14,117 |  |  | 1.6 | % |  | 14,238 |  |  | 1.5 | %
Cargo Transport | 13,000 |  |  | 1.4 | % |  | 13,500 |  |  | 1.5 | %
Telecommunications | 9,197 |  |  | 1.0 | % |  | 9,002 |  |  | 1.0 | %
Other < 2.0% | 5,350 |  |  | 0.6 | % |  | 8,490 |  |  | 0.9 | %
Total investments | $ | 899,138 |  |  | 100.0 | % |  | $ | 920,504 |  |  | 100.0 | %
Investments at fair value were included in the following geographic regions of the U.S. as of June 30, 2024 and March 31, 2024:
| June 30, 2024 |  | March 31, 2024
Location | Fair Value |  | Percentage of Total Investments |  | Fair Value |  | Percentage of Total Investments
South | $ | 337,009 |  |  | 37.5 | % |  | $ | 346,838 |  |  | 37.7 | %
West | 221,102 |  |  | 24.6 | % |  | 223,871 |  |  | 24.3 | %
Northeast | 200,803 |  |  | 22.3 | % |  | 207,870 |  |  | 22.6 | %
Midwest | 140,224 |  |  | 15.6 | % |  | 141,925 |  |  | 15.4 | %
Total investments | $ | 899,138 |  |  | 100.0 | % |  | $ | 920,504 |  |  | 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 June 30, 2024:
|  |  | Amount
For the remaining nine months ending March 31, 2025 |  | $ | 72,270 |
For the fiscal years ending March 31: |  |
| 2026 |  | 206,310 |
| 2027 |  | 185,775 |
| 2028 |  | 66,231 |
| 2029 |  | 100,394 |
| Thereafter |  | 25,000 |
| Total contractual repayments |  | $ | 655,980 |
| Investments in equity securities |  | 195,886 |
| Total cost basis of investments held as of June 30, 2024: |  | $ | 851,866 |

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