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INVESTMENTS (Tables)
 6 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of March 31, 2025 and September 30, 2024, 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 March 31, 2025:
Secured first lien debt
$— $— $541,524 $541,524 
Secured second lien debt
— — 144,970 144,970 
Unsecured debt
— — 335 

335 
Preferred equity
— — 25,031 

25,031 
Common equity/equivalents
— 

— 45,765 45,765 
Total
$— $— $757,625 $757,625 
Investments measured at NAV(A)
— — — 5,011 
Total Investments as of March 31, 2025
$— $— $757,625 $762,636 
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, 2024:
Secured first lien debt
$— $— $554,937 $554,937 
Secured second lien debt
— — 113,716 113,716 
Unsecured debt
— — 

32 

32 
Preferred equity
— — 

31,346 

31,346 
Common equity/equivalents
— 

— 96,191 96,191 
Total
$— $— $796,222 $796,222 
Investments measured at NAV(A)
— — — 38 
Total Investments as of September 30, 2024
$— $— $796,222 $796,260 
(A)Includes our investments in Gladstone Alternative and Leeds as of March 31, 2025 and our investment in Leeds as of September 30, 2024. 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 portfolio investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy and carried at fair value as of March 31, 2025 and September 30, 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
Using Significant Unobservable Inputs (Level 3)
March 31, 2025September 30, 2024
Non-Control/Non-Affiliate Investments
Secured first lien debt$505,135 $540,661 
Secured second lien debt136,178 105,169 
Unsecured debt23 32 
Preferred equity18,406 27,247 
Common equity/equivalents25,693 
(A)
77,757 
(B)
Total Non-Control/Non-Affiliate Investments
$685,435 $750,866 
Affiliate Investments
Secured first lien debt$229 $380 
Preferred equity6,625 4,099 
Common equity/equivalents4,103 2,959 
Total Affiliate Investments$10,957 $7,438 
Control Investments
Secured first lien debt$36,160 $13,896 
Secured second lien debt8,792 8,547 
Unsecured debt312 — 
Common equity/equivalents15,969 15,475 
Total Control Investments
$61,233 $37,918 
Total Investments at Fair Value Using Level 3 Inputs$757,625 $796,222 

(A)Excludes our investments in Gladstone Alternative and Leeds with fair values of $5.0 million and $36 thousand, respectively, as of March 31, 2025, which were valued using NAV as a practical expedient.
(B)Excludes our investment in Leeds with a fair value of $38 thousand as of September 30, 2024, 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

Range / Weighted Average as of

March 31,
2025		September 30,
2024
Valuation
Techniques/
Methodologies
Unobservable
Input
March 31,
2025		September 30,
2024


Secured first lien debt
$467,857 $464,090 
Yield Analysis
Discount Rate
9.9% - 17.5%
/ 11.7%
10.8% - 17.3%
/ 12.6%

73,667 90,847 
TEV
EBITDA multiple
5.5x – 7.1x
/ 6.2x
4.1x – 13.9x
/ 10.0x


EBITDA
$2,504 - $4,222
/ $3,355
$3,020 - $16,211
/ $10,309


Revenue multiple
0.4x – 0.7x
/ 0.6x
0.2x – 4.6x
/ 2.1x


Revenue
$10,667 - $21,318
/ $15,691
$6,336 - $21,118
/ $13,981


Secured second lien debt
132,790 101,928 
Yield Analysis
Discount Rate
11.7% - 15.4%
/ 13.3%
12.2% - 16.0%
/ 14.1%

3,388 3,241 
Market Quote
IBP
92.0% - 92.0%
/ 92.0%
88.0% - 88.0%
/ 88.0%

8,792 8,547 
TEV
EBITDA multiple
5.4x – 5.4x
/ 5.4x
5.4x – 5.4x
/ 5.4x


EBITDA
$2,543 - $2,543
/ $2,543
$3,343 - $3,343
/ $3,343


Unsecured debt
335 32 
TEV
EBITDA multiple
7.1x – 7.1x
/ 7.1x
0.0x – 0.0x
/ 0.0x
EBITDA
$4,222 - $4,222
/ $4,222
$0 - $0
/ $0
Revenue multiple
1.0x – 1.0x
/ 1.0x
1.0x – 1.0x
/ 1.0x


Revenue
$5,616 - $5,616
/ $5,616
$7,834 - $7,834
/ $7,834


Preferred and common equity / equivalents(A)
70,796 127,537 
TEV
EBITDA multiple
5.0x – 14.5x
/ 7.8x
4.1x – 13.9x
/ 8.0x


EBITDA
$1,318 -$144,799
/ $10,694
$1,182 -$144,458
/ $10,847


Revenue multiple
0.4x – 1.0x
/ 0.5x
0.2x– 4.6x
/ 2.0x


Revenue
$5,402 -$21,318
/ $10,537
$4,672 -$21,118
/ $12,587
Total Level 3 Investments, at Fair Value
$757,625 $796,222 
(A)Fair value as of March 31, 2025 excludes our investments in Gladstone Alternative and Leeds with fair values of $5.0 million and $36 thousand, respectively, as of March 31, 2025, which were valued using NAV as a practical expedient. Fair value as of September 30, 2024 excludes our investment in Leeds with a fair value of $38 thousand, which was valued using NAV as a practical expedient.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables provide the changes in fair value, broken out by security type, during the three and six months ended March 31, 2025 and 2024 for all investments for which we determine fair value using unobservable (Level 3) inputs.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended March 31, 2025Secured
First Lien
Debt		Secured
Second Lien
Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of December 31, 2024$586,409 $127,234 $359 $31,294 $49,164 $794,460 
Total gains (losses):
Net realized gain (loss)(A)
— — — 2,954 4,748 7,702 
Net unrealized appreciation (depreciation)(B)
(7,292)(12)(35)3,691 1,606 (2,042)
Reversal of prior period net depreciation (appreciation) on realization(B)
(22)— — (2,954)(4,870)(7,846)
New investments, repayments and settlements: (C)
Issuances/originations
27,111 18,453 11 — 915 46,490 
Settlements/repayments
(64,682)(705)— — — (65,387)
Net proceeds from sales
— — — (9,954)(5,798)(15,752)
Fair Value as of March 31, 2025
$541,524 $144,970 $335 $25,031 $45,765 $757,625 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Six months ended March 31, 2025Secured
First Lien
Debt		Secured
Second
Lien Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of September 30, 2024$554,937 $113,716 $32 $31,346 $96,191 $796,222 
Total gains (losses):
Net realized gain (loss)(A)
(4,074)— — 5,404 64,096 65,426 
Net unrealized appreciation (depreciation)(B)
(10,826)103 (30)6,827 14,002 10,076 
Reversal of prior period net depreciation (appreciation) on realization(B)
3,559 — — (5,404)(60,010)(61,855)
New investments, repayments and settlements: (C)
Issuances/originations
138,865 47,697 333 6,262 915 194,072 
Settlements/repayments
(140,937)(16,546)— — — (157,483)
Net proceeds from sales
— — — (19,404)(69,429)(88,833)
Fair Value as of March 31, 2025
$541,524 $144,970 $335 $25,031 $45,765 $757,625 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended March 31, 2024Secured
First Lien
Debt		Secured
Second Lien
Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of December 31, 2023$546,602 $126,571 $23 $29,722 $46,799 $749,717 
Total gains (losses):
Net realized gain (loss)(A)
— — — 219 — 219 
Net unrealized appreciation (depreciation)(B)
(1,998)2,287 10 2,496 7,636 10,431 
Reversal of prior period net depreciation (appreciation) on realization(B)
(19)157 — 130 — 268 
New investments, repayments and settlements: (C)
Issuances/originations
29,951 15,177 — 1,000 — 46,128 
Settlements/repayments
(10,687)(3,783)— — — (14,470)
Net proceeds from sales
— — — (969)— (969)
Fair Value as of March 31, 2024
$563,849 $140,409 $33 $32,598 $54,435 $791,324 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Six months ended March 31, 2024Secured
First Lien
Debt		Secured
Second
Lien Debt		Unsecured
Debt		Preferred
Equity		Common
Equity/
Equivalents		Total
Fair Value as of September 30, 2023$510,701 $127,854 $24 $26,855 $39,128 $704,562 
Total gains (losses):
Net realized gain (loss)(A)
— — — 219 259 478 
Net unrealized appreciation (depreciation)(B)
4,998 1,543 9 (3,637)15,591 18,504 
Reversal of prior period net depreciation (appreciation) on realization(B)
(19)157 — 130 (283)(15)
New investments, repayments and settlements: (C)
Issuances/originations
79,975 15,362 — 10,000 — 105,337 
Settlements/repayments
(31,806)(4,507)— — — (36,313)
Net proceeds from sales
— — — (969)(260)(1,229)
Fair Value as of March 31, 2024
$563,849 $140,409 $33 $32,598 $54,435 $791,324 
(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(B)Included in net unrealized appreciation (depreciation) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, accretion of discounts, PIK, 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.
Schedule of Investment Holdings
The following table outlines our investments by security type as of March 31, 2025 and September 30, 2024:
March 31, 2025September 30, 2024
CostFair ValueCostFair Value
Secured first lien debt$574,590 72.8 %$541,524 71.0 %$580,736 75.3 %$554,937 69.7 %
Secured second lien debt144,842 18.3 144,970 19.0 113,691 14.8 113,716 14.3 
Unsecured debt531 0.1 335 0.1 198 0.0 32 0.0 
Total debt investments719,963 91.2 686,829 90.1 694,625 90.1 668,685 84.0 
Preferred equity37,279 4.7 25,031 3.3 45,017 5.8 31,346 3.9 
Common equity/equivalents31,951 4.1 50,776 6.6 31,369 4.1 96,229 12.1 
Total equity investments
69,230 8.8 75,807 9.9 76,386 9.9 127,575 16.0 
Total Investments
$789,193 100.0 %$762,636 100.0 %$771,011 100.0 %$796,260 100.0 %
Our investments at fair value consisted of the following industry classifications as of March 31, 2025 and September 30, 2024:
March 31, 2025September 30, 2024
Industry ClassificationFair ValuePercentage of
Total
Investments		Fair ValuePercentage of
Total
Investments
Healthcare, Education, and Childcare$218,439 28.6 %$101,707 12.8 %
Diversified/Conglomerate Manufacturing177,211 23.2 160,264 20.1 
Diversified/Conglomerate Service95,686 12.5 179,032 22.5 
Beverage, Food, and Tobacco92,901 12.2 88,327 11.1 
Aerospace and Defense59,193 7.8 153,096 19.2 
Automobile27,954 3.7 28,286 3.6 
Machinery22,956 3.0 21,816 2.7 
Cargo Transportation20,200 2.7 20,200 2.5 
Oil and Gas19,358 2.5 20,554 2.6 
Personal and Non-Durable Consumer Products12,618 1.7 13,586 1.7 
Printing and Publishing5,515 0.7 4,312 0.5 
Other, < 2.0%
10,605 1.4 5,080 0.7 
Total Investments$762,636 100.0 %$796,260 100.0 %
Our investments at fair value were included in the following U.S. geographic regions as of March 31, 2025 and September 30, 2024:
March 31, 2025September 30, 2024
Location
Fair Value
Percentage of
Total
Investments
Fair Value
Percentage of
Total Investments
South$250,685 32.9 %$314,010 39.4 %
West243,031 31.8 249,082 31.3 
Midwest215,704 28.3 192,897 24.2 
Northeast53,216 7.0 40,271 5.1 
Total Investments$762,636 100.0 %$796,260 100.0 %
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 March 31, 2025:
Amount
For the remaining six months ending September 30:
2025(A)
$9,175 
For the fiscal years ending September 30:
2026138,231 

2027160,243 

2028220,197 

202992,463 

Thereafter100,775 

Total contractual repayments
$721,084 

Adjustments to cost basis of debt investments(1,121)

Investments in equity securities69,230 

Investments held as of March 31, 2025 at cost:
$789,193 
(A)Includes debt investments with contractual principal amounts totaling $0.5 million for which the maturity date has passed as of March 31, 2025.