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INVESTMENTS
 6 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fair Value
In accordance with ASC 820, the fair value of our investments is determined to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.
•Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical financial instruments in active markets;
•Level 2 — inputs to the valuation methodology include quoted prices for similar financial instruments in active or inactive markets, and inputs that are observable for the financial instrument, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists, or instances where prices vary substantially over time or among brokered market makers; and
•Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect assumptions that market participants would use when pricing the financial instrument and can include the Valuation Team’s assumptions based upon the best available information.
When a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.
As of September 30, 2025 and March 31, 2025, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in money market funds, which was valued using Level 1 inputs, and our investment in Gladstone Alternative Income Fund ("Gladstone Alternative"), which was valued using NAV as a practical expedient.
We transfer investments in and out of Level 1, 2 and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period. There were no transfers in or out of Level 1, 2 and 3 during the three and six months ended September 30, 2025 and 2024, respectively.
As of September 30, 2025 and March 31, 2025, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
As of September 30, 2025:
Secured first lien debt
$— $— $593,979 $593,979 
Secured second lien debt
— — 90,633 90,633 
Preferred equity
— — 365,278 365,278 
Common equity/equivalents
— 

— 75,894 75,894 
Total$— $— $1,125,784 $1,125,784 
Investments measured at NAV (A)
— — — 5,075 
Total Investments
$— $— $1,125,784 $1,130,859 
Cash equivalents1,217 — — 1,217 
Total Investments and Cash Equivalents as of September 30, 2025
$1,217 $— $1,125,784 $1,132,076 

Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
As of March 31, 2025:
Secured first lien debt
$— $— $514,334 $514,334 
Secured second lien debt
— — 103,580 103,580 
Preferred equity
— — 302,163 302,163 
Common equity/equivalents
— — 54,268 54,268 
Total$— $— $974,345 $974,345 
Investments measured at NAV (A)
— — — 4,975 
Total Investments$— $— $974,345 $979,320 
Cash equivalents1,354 — — 1,354 
Total Investments and Cash Equivalents as of March 31, 2025
$1,354 $— $974,345 $980,674 
(A)Includes our investment in Gladstone Alternative as of September 30, 2025 and March 31, 2025. Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this Quarterly Report.
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, 2025 and March 31, 2025, 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, 2025March 31, 2025
Non-Control/Non-Affiliate Investments
Secured first lien debt$393,766 $300,751 
Secured second lien debt90,633 92,964 
Preferred equity252,245 200,606 
Common equity/equivalents75,894 54,268 
Total Non-Control/Non-Affiliate Investments812,538 648,589 
Affiliate Investments
Secured first lien debt199,443 213,240 
Secured second lien debt— 10,616 
Preferred equity113,033 101,557 
Common equity/equivalents— — 
Total Affiliate Investments312,476 325,413 
Control Investments
Secured first lien debt770 343 
Secured second lien debt— — 
Preferred equity— — 
Common equity/equivalents— — 
Total Control Investments770 343 
Total investments at fair value using Level 3 inputs$1,125,784 $974,345 
In accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of September 30, 2025 and March 31, 2025. 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 ofValuation
Technique/
Methodology		Unobservable
Input		Range / Weighted-Average as of
September 30, 2025March 31, 2025September 30, 2025March 31, 2025
Secured first
lien debt		$593,979 $514,334 TEVEBITDA multiple
3.5x – 8.0x /
6.2x
3.7x – 7.9x /
6.0x
EBITDA
$538 – $23,126 /
$11,372
$1,208 – $25,038 / $12,162
Revenue multiple
0.3x – 0.6x /
0.5x
0.3x – 0.6x /
0.4x
Revenue
$21,649 – $104,790 /
$65,258
$6,690 – $102,791 / $72,303
Secured second
lien debt		90,633 90,956 TEVEBITDA multiple
5.0x – 7.3x /
 6.6x
6.1x – 7.2x /
6.8x
EBITDA
$5,130 – $31,248 /
$20,921
$3,637 – $24,234 / $16,900
— 12,624 Yield AnalysisDiscount RateN/A
20.7% – 20.7% / 20.7%
Preferred
equity		365,278 302,163 TEVEBITDA multiple
3.5x – 8.0x /
6.2x
3.7x – 7.9x /
6.1x
EBITDA
$538 – $23,126 /
$9,778
$2,153 – $25,038 / $11,029
Revenue multiple
0.3x – 0.6x /
0.4x
0.3x – 0.6x /
0.4x
Revenue
$21,649 – $104,790 /
$79,691
$6,690 – $102,791 / $53,604
Common equity/
equivalents		75,894 54,268 TEVEBITDA multiple
5.0x – 7.3x /
6.9x
5.5x – 7.2x /
6.8x
EBITDA
$714 – $31,248 /
$22,994
$1,208 – $24,234 / $18,562
Total$1,125,784 $974,345 

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in market yields or discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.
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 six months ended September 30, 2025 and 2024 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, 2025:
Fair value as of June 30, 2025
$557,057 $93,340 $325,997 $55,341 $1,031,735 
Total gain (loss):
Net realized gain (loss)(A)
(29,938)— — — (29,938)
Net unrealized (depreciation) appreciation(B)
(744)(2,707)18,181 20,553 35,283 
Reversal of previously recorded depreciation upon realization(B)
19,104 — — — 19,104 
New investments, repayments and settlements(C):
Issuances / originations
49,936 — 21,100 — 71,036 
Settlements / repayments
(1,436)— — — (1,436)
Sales
— — — — — 
Transfers
— — — — — 
Fair value as of September 30, 2025
$593,979 $90,633 $365,278 $75,894 $1,125,784 

Secured
First Lien
Debt		Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents		Total
Six Months Ended September 30, 2025
Fair value as of March 31, 2025$514,334 $103,580 $302,163 $54,268 $974,345 
Total gain (loss):
Net realized gain (loss)(A)
(29,938)— — — (29,938)
Net unrealized appreciation (depreciation)(B)
409 (2,331)14,497 21,626 34,201 
Reversal of previously recorded depreciation upon realization(B)
19,104 — — — 19,104 
New investments, repayments and settlements(C):
Issuances / originations
95,876 — 38,002 — 133,878 
Settlements / repayments
(5,806)— — — (5,806)
Sales
— — — — — 
Transfers(D)
— (10,616)10,616 — — 
Fair value as of September 30, 2025
$593,979 $90,633 $365,278 $75,894 $1,125,784 
Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
Total
Three Months Ended September 30, 2024:
Fair value as of June 30, 2024
$463,219 $137,827 $212,591 $85,501 $899,138 
Total gain (loss):
Net realized gain (loss)(A)
— — — 42,284 42,284 
Net unrealized (depreciation)
appreciation (B)
(13,239)(1,483)15,937 2,701 3,916 
Reversal of previously recorded (appreciation) depreciation upon realization(B)
— — — (38,028)(38,028)
New investments, repayments and settlements(C):
Issuances / originations
19,500 — — — 19,500 
Settlements / repayments
— (25,000)— — (25,000)
Sales
— — — (48,503)(48,503)
Transfers
— — — — — 
Fair value as of September 30, 2024
$469,480 $111,344 $228,528 $43,955 $853,307 
Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
Total
Six Months Ended September 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)
— — — 42,284 42,284 
Net unrealized appreciation (depreciation)(B)
(22,474)(2,359)15,048 (5,245)(15,030)
Reversal of previously recorded (appreciation) depreciation upon realization(B)
— — — (38,028)(38,028)
New investments, repayments and settlements(C):
Issuances / originations
20,098 — — — 20,098 
Settlements / repayments
(3,000)(25,000)— — (28,000)
Sales
— — — (48,503)(48,503)
Transfers
— — — — — 
Fair value as of September 30, 2024
$469,480 $111,344 $228,528 $43,955 $853,307 
Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three and six months ended September 30, 2025 and 2024.
(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three and six months ended September 30, 2025 and 2024.
(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)Transfers represent secured second lien debt of PSI Molded Plastics, Inc. ("PSI Molded") with a total cost basis of $10.6 million, which was converted to preferred equity in June 2025.
Investment Activity
During the six months ended September 30, 2025, the following significant transactions occurred:

•In May 2025, we invested $49.5 million in a new portfolio company, Smart Chemical Solutions, LLC ("Smart Chemical"), in the form of $35.7 million of secured first lien debt and $13.8 million of preferred equity. Smart
Chemical, headquartered in Midland, Texas, is a provider of production chemicals for onshore oil and gas operators throughout the United States.

•In May 2025, we invested $12.8 million in a new portfolio company, Sun State Nursery and Landscaping, LLC ("Sun State"), in the form of $9.8 million of secured first lien debt and $3.1 million of preferred equity. Sun State, headquartered in Jacksonville, Florida, is a commercial landscaping installation and maintenance provider in the Jacksonville area.

•In June 2025, we restructured our investment in PSI Molded. As a result of the restructuring, we converted debt with a cost basis of $10.6 million into preferred equity.

•In July 2025, we invested $67.6 million in a new portfolio company, Global GRAB Technologies, Inc. ("Global GRAB"), in the form of $46.5 million of secured first lien debt and $21.1 million of preferred equity. Global GRAB, headquartered in Franklin, Tennessee, is a provider of turnkey perimeter security and hostile vehicle mitigation systems, serving various government and commercial organizations.

•In September 2025, we entered into a new $20.0 million secured first lien term loan with J.R. Hobbs, restructuring our previously outstanding first lien term loans and line of credit with an aggregate total cost basis of $49.9 million, which resulted in a realized loss of $29.9 million.
Investment Concentrations
As of September 30, 2025, our investment portfolio consisted of investments in 28 portfolio companies located in 20 states and Canada across 16 different industries with an aggregate fair value of approximately $1.1 billion. Our investments in SFEG Holdings, Inc., The E3 Company, LLC, Detroit Defense, Inc., Dema/Mai Holdings, Inc. and Brunswick Bowling Products, Inc. represented our five largest portfolio investments at fair value and collectively comprised $437.4 million, or 38.7%, of our total investment portfolio at fair value as of September 30, 2025.
The following table summarizes our investments by security type as of September 30, 2025 and March 31, 2025:
September 30, 2025March 31, 2025
CostFair ValueCostFair Value
Secured first lien debt$644,158 62.1 %$593,979 52.5 %$584,026 62.2 %$514,334 52.5 %
Secured second lien debt93,340 9.0 %90,633 8.0 %103,956 11.1 %103,580 10.6 %
Total debt737,498 71.1 %684,612 60.5 %687,982 73.3 %617,914 63.1 %
Preferred equity250,105 24.1 %365,278 32.3 %201,487 21.5 %302,163 30.9 %
Common equity/equivalents49,597 4.8 %80,969 7.2 %49,597 5.2 %59,243 6.0 %
Total equity/equivalents299,702 28.9 %446,247 39.5 %251,084 26.7 %361,406 36.9 %
Total investments
$1,037,200 100.0 %$1,130,859 100.0 %$939,066 100.0 %$979,320 100.0 %
Investments at fair value consisted of the following industry classifications as of September 30, 2025 and March 31, 2025:
September 30, 2025March 31, 2025
Fair ValuePercentage of
Total Investments		Fair ValuePercentage of Total Investments
Diversified/Conglomerate Services$189,018 16.7%$170,360 17.4%
Aerospace and Defense172,193 15.2%107,869 10.9%
Home and Office Furnishings, Housewares, and Durable Consumer Products152,666 13.6%159,236 16.3%
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)130,538 11.6%105,432 10.8%
Leisure, Amusement, Motion Pictures, and Entertainment84,102 7.4%78,460 8.0%
Oil and Gas83,054 7.3%69,589 7.1%
Buildings and Real Estate73,492 6.5%69,320 7.1%
Electronics71,875 6.4%71,573 7.2%
Chemicals, Plastics, and Rubber51,182 4.5%11,612 1.2%
Healthcare, Education, and Childcare45,767 4.0%51,501 5.3%
Mining, Steel, Iron and Non-Precious Metals38,304 3.4%41,010 4.2%
Printing and Publishing11,325 1.0%11,681 1.2%
Cargo Transport10,293 0.9%12,624 1.3%
Other < 2.0%17,050 1.5%19,053 2.0%
Total investments$1,130,859 100.0%$979,320 100.0%
Investments at fair value were included in the following geographic regions of the U.S. and Canada as of September 30, 2025 and March 31, 2025:
September 30, 2025March 31, 2025
LocationFair ValuePercentage of
Total Investments		Fair ValuePercentage of
Total Investments
United States
South
$485,593 42.9 %$317,294 32.4 %
West
223,709 19.8 %222,062 22.7 %
Midwest
211,483 18.7 %227,415 23.2 %
Northeast
183,216 16.2 %182,669 18.7 %
Canada26,858 2.4 %29,880 3.0 %
Total investments$1,130,859 100.0 %$979,320 100.0 %
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.
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 September 30, 2025:

Amount
For the remaining six months ending March 31, 2026
$15,000 
For the fiscal years ending March 31:
202761,186 
2028120,282 
2029269,844 
2030159,506 
Thereafter111,680 
Total contractual repayments$737,498 
Investments in equity securities299,702 
Total cost basis of investments held as of September 30, 2025:
$1,037,200 
Receivables from Portfolio Companies
Receivables from portfolio companies represent non-recurring costs that we incurred on behalf of portfolio companies. Such receivables, net of any allowance for uncollectible receivables, are included in Other assets, net on our accompanying Consolidated Statements of Assets and Liabilities. We generally maintain an allowance for uncollectible receivables from portfolio companies when the receivable balance becomes 90 days or more past due or if it is determined, based upon management’s judgment, that the portfolio company is unable to pay its obligations. We write off accounts receivable when we have exhausted collection efforts and have deemed the receivables uncollectible. As of September 30, 2025 and March 31, 2025, we had gross receivables from portfolio companies of $2.4 million and $2.3 million, respectively. As of September 30, 2025 and March 31, 2025, the allowance for uncollectible receivables was $1.4 million and $1.7 million, respectively.