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INVESTMENTS (Tables)

9 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments by Security Type at Fair Value and Investments Valued Using Level 3 Inputs

As of December 31, 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 December 31, 2024:
Secured first lien debt			$	599,911					$	—					$	—		$	599,911
Secured second lien debt			108,743						—						—			108,743
Preferred equity			308,226						—						—			308,226
Common equity/equivalents (A)			50,350						—						—			50,350
Total Investments as of December 31, 2024			$	1,067,230					$	—					$	—		$	1,067,230

									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			(B)			93,447
Total Investments as of March 31, 2024			$	920,504					$	—					$	18					$	920,486

(A)Excludes our investment in Gladstone Alternative with a fair value of $5.0 million as of December 31, 2024. Gladstone Alternative was valued using NAV as a practical expedient.

(B)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 December 31, 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
			December 31, 2024						March 31, 2024
Non-Control/Non-Affiliate Investments
Secured first lien debt			$	386,753					$	324,348
Secured second lien debt			92,854						93,340
Preferred equity			210,624						162,522
Common equity/equivalents(A)			50,350						42,005
Total Non-Control/Non-Affiliate Investments			740,581						622,215
Affiliate Investments
Secured first lien debt			212,654						147,603
Secured second lien debt			15,889						45,363
Preferred equity			97,602						50,958
Common equity/equivalents(B)			—						51,442
Total Affiliate Investments			326,145						295,366
Control Investments
Secured first lien debt			504						2,905
Secured second lien debt			—						—
Preferred equity			—						—
Common equity/equivalents			—						—
Total Control Investments			504						2,905
Total investments at fair value using Level 3 inputs			$	1,067,230					$	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.

(B)Excludes our investment in Gladstone Alternative as of December 31, 2024 with a fair value of $5.0 million, which was valued using NAV as a practical expedient.

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, 2024

March 31, 2024

December 31, 2024

March 31, 2024

Secured first lien debt

$

599,911

$

474,856

TEV

EBITDA multiple

2.8x – 11.8x / 6.8x

4.2x – 8.8x / 6.4x

EBITDA

$969 – $26,000 / $12,328

$1,091 – $23,547 / $10,509

Revenue multiple

0.2x – 0.6x / 0.4x

0.3x – 0.6x / 0.4x

Revenue

$6,141 – $100,934 / $70,883

$31,586 – $93,916 / $77,580

Secured second lien debt

96,229

113,703

TEV

EBITDA multiple

5.7x – 7.0x /  6.6x

5.1x – 15.0x / 7.0x

EBITDA

$4,489 – $23,258 / $14,721

$5,648 – $23,003 / $14,192

12,514

25,000

Yield Analysis

Discount Rate

19.7% – 19.7% / 19.7%

13.8% – 13.8% / 13.8%

Preferred equity

308,226

213,480

TEV

EBITDA multiple

2.8x – 11.8x / 6.0x

4.2x – 8.8x / 6.1x

EBITDA

$1,292 – $26,000 / $11,696

$1,091 – $23,547 / $9,502

Revenue multiple

0.2x – 0.6x / 0.3x

0.3x – 0.6x / 0.4x

Revenue

$6,141 – $100,934 / $52,338

$31,586 – $93,916 / $75,099

Common equity/ equivalents(A)(B)

50,350

93,447

TEV

EBITDA multiple

5.5x – 8.1x / 6.6x

5.0x – 15.0x / 6.4x

EBITDA

$969 – $23,258 / $17,987

$1,154 – $63,269 / $23,615

Total

$

1,067,230

$

920,486

(A)Fair value as of December 31, 2024 excludes our investment in Gladstone Alternative with a fair value of $5.0 million, which was valued using NAV as a practical expedient.

(B)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 Changes in Level 3 Fair Value Measurements of Investments

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, 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 December 31, 2024:
Fair value as of September 30, 2024			$	469,480					$	111,344					$	228,528					$	43,955					$	853,307
Total gain (loss):
Net realized gain (loss)(A)			—						—						—						—						—
Net unrealized appreciation (depreciation)(B)			454						(2,601)						33,081						6,395						37,329
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						—						—						—						—
New investments, repayments and settlements(C):
Issuances / originations			135,477						—						46,617						—						182,094
Settlements / repayments			(5,500)						—						—						—						(5,500)
Sales			—						—						—						—						—
Transfers			—						—						—						—						—
Fair value as of December 31, 2024			$	599,911					$	108,743					$	308,226					$	50,350					$	1,067,230

			Secured First Lien Debt						Secured Second Lien Debt						Preferred Equity						Common Equity/ Equivalents						Total
Nine Months Ended December 31, 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)			—						—						—						42,284						42,284
Net unrealized appreciation (depreciation)(B)			(22,020)						(4,960)						48,129						1,150						22,299
Reversal of previously recorded (appreciation) depreciation upon realization(B)			—						—						—						(38,028)						(38,028)
New investments, repayments and settlements(C):
Issuances / originations			155,575						—						46,617						—						202,192
Settlements / repayments			(8,500)						(25,000)						—						—						(33,500)
Sales			—						—						—						(48,503)						(48,503)
Transfers			—						—						—						—						—
Fair value as of December 31, 2024			$	599,911					$	108,743					$	308,226					$	50,350					$	1,067,230

			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

Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three and nine months ended December 31, 2024 and 2023.

(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three and nine months ended December 31, 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 nine months ended December 31, 2023 includes $0.3 million of proceeds from the recapitalization of Old World Christmas, Inc. ("Old World").

(E)For the three and nine months ended December 31, 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.

Schedule of Investment Concentrations

The following table summarizes our investments by security type as of December 31, 2024 and March 31, 2024:

			December 31, 2024																		March 31, 2024
			Cost									Fair Value									Cost									Fair Value
Secured first lien debt			$	660,499		64.6		%				$	599,911		55.9		%				$	513,425		60.1		%				$	474,856		51.6		%
Secured second lien debt			119,958			11.7		%				108,743			10.1		%				144,958			16.9		%				138,703			15.0		%
Total debt			780,457			76.3		%				708,654			66.0		%				658,383			77.0		%				613,559			66.6		%
Preferred equity			191,687			18.8		%				308,226			28.8		%				145,070			17.0		%				213,480			23.2		%
Common equity/equivalents			49,597			4.9		%				55,350			5.2		%				50,837			6.0		%				93,465			10.2		%
Total equity/equivalents			241,284			23.7		%				363,576			34.0		%				195,907			23.0		%				306,945			33.4		%
Total investments			$	1,021,741		100.0		%				$	1,072,230		100.0		%				$	854,290		100.0		%				$	920,504		100.0		%

Investments at fair value consisted of the following industry classifications as of December 31, 2024 and March 31, 2024:

			December 31, 2024												March 31, 2024
			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
Diversified/Conglomerate Services			$	167,188					15.6		%				$	264,535					28.7		%
Home and Office Furnishings, Housewares, and Durable Consumer Products			164,017						15.3		%				160,038						17.3		%
Hotels, Motels, Inns, and Gaming			116,534						10.9		%				77,366						8.4		%
Aerospace and Defense			108,464						10.1		%				29,064						3.2		%
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)			100,919						9.4		%				92,781						10.1		%
Leisure, Amusement, Motion Pictures, and Entertainment			74,334						6.9		%				39,350						4.3		%
Electronics			71,321						6.7		%				—						—		%
Oil and Gas			67,775						6.3		%				51,171						5.6		%
Buildings and Real Estate			61,703						5.8		%				60,431						6.6		%
Healthcare, Education, and Childcare			44,131						4.1		%				49,638						5.4		%
Mining, Steel, Iron and Non-Precious Metals			35,586						3.3		%				30,537						3.3		%
Chemicals, Plastics, and Rubber			15,889						1.5		%				20,363						2.2		%
Printing and Publishing			14,400						1.3		%				14,238						1.5		%
Cargo Transport			12,514						1.2		%				13,500						1.5		%
Telecommunications			6,796						0.6		%				9,002						1.0		%
Other < 2.0%			10,659						1.0		%				8,490						0.9		%
Total investments			$	1,072,230					100.0		%				$	920,504					100.0		%

Investments at fair value were included in the following geographic regions of the U.S. and Canada as of December 31, 2024 and March 31, 2024:

			December 31, 2024												March 31, 2024
Location			Fair Value						Percentage of Total Investments						Fair Value						Percentage of Total Investments
United States
Northeast			$	305,374					28.5		%				$	207,870					22.6		%
South			295,954						27.6		%				346,838						37.7		%
Midwest			222,587						20.8		%				141,925						15.4		%
West			221,135						20.6		%				223,871						24.3		%
Canada			27,180						2.5		%				—						—		%
Total investments			$	1,072,230					100.0		%				$	920,504					100.0		%

Schedule of Investment Principal Repayments

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, 2024:

									Amount
For the remaining three months ending March 31, 2025									$	49,060
For the fiscal years ending March 31:
			2026						215,780
			2027						219,486
			2028						66,231
			2029						100,394
			Thereafter						129,506
			Total contractual repayments						$	780,457
			Investments in equity securities						241,284
			Total cost basis of investments held as of December 31, 2024:						$	1,021,741

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