
($ in thousands)	March 31, 2025							December 31, 2024
Security Type	Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio			Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	318,953	$	294,379		72.4	%	$	311,673	$	289,957		71.6	%
Second Lien Debt		35,147		28,724		7.1	%		34,892		28,996		7.2	%
Subordinated Debt		8,034		1,740		0.4	%		8,059		1,740		0.4	%
Collateralized Loan Obligations		3,800		4,639		1.1	%		5,318		5,193		1.3	%
Joint Ventures		65,883		50,491		12.4	%		66,747		54,153		13.4	%
Equity		32,098		26,218		6.5	%		31,921		24,762		6.1	%
Asset Manager Affiliates(1)		17,791		—		—			17,791		—		—
Derivatives		31		232		0.1	%		31		220		—
Total	$	481,737	$	406,423		100.0	%	$	476,432	$	405,021		100.0	%

(1)

Represents the equity investment in the Asset Manager Affiliates.

The industry concentrations based on the fair value of the Company’s investment portfolio as of March 31, 2025 and December 31, 2024 were as follows:


($ in thousands)	March 31, 2025							December 31, 2024
Industry Classification	Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio			Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio
Services: Business	$	58,138	$	54,510		13.4	%	$	55,141	$	51,776		12.8	%
High Tech Industries		57,635		50,657		12.5	%		55,932		50,138		12.4	%
Joint Venture		65,883		50,491		12.4	%		66,747		54,153		13.4	%
Banking, Finance, Insurance & Real Estate		44,975		43,541		10.7	%		44,191		42,854		10.6	%
Healthcare & Pharmaceuticals		43,340		42,261		10.4	%		43,882		41,872		10.3	%
Consumer goods: Durable		28,701		26,666		6.6	%		28,493		27,028		6.7	%
Media: Broadcasting & Subscription		24,338		16,769		4.1	%		19,095		12,972		3.2	%
Finance		14,916		14,862		3.7	%		14,815		14,725		3.6	%
Machinery (Non-Agrclt/Constr/Electr)		11,124		14,327		3.5	%		11,705		13,608		3.4	%
Beverage, Food and Tobacco		12,574		11,577		2.8	%		12,563		11,612		2.9	%
Aerospace and Defense		10,841		10,795		2.7	%		11,403		11,390		2.8	%
Chemicals, Plastics and Rubber		11,084		10,530		2.6	%		10,135		9,628		2.4	%
Transportation: Consumer		7,396		7,459		1.8	%		7,410		7,470		1.8	%
Interactive Media & Services		7,090		7,078		1.7	%		2,539		2,559		0.6	%
Retail		10,255		6,610		1.6	%		10,246		6,853		1.7	%
Healthcare, Education and Childcare		6,098		6,099		1.5	%		6,114		6,115		1.5	%
Metals & Mining		9,950		5,178		1.3	%		9,950		5,103		1.3	%
CLO Fund Securities		3,800		4,639		1.1	%		5,318		5,193		1.3	%
IT Consulting & Other Services		4,128		4,222		1.0	%		2,157		2,243		0.5	%
Transportation: Cargo		4,364		3,504		0.9	%		4,223		3,782		0.9	%
Containers, Packaging and Glass		2,727		2,703		0.7	%		2,728		2,702		0.7	%
Energy: Electricity		2,696		2,696		0.7	%		2,696		2,702		0.7	%
Services: Consumer		2,729		2,326		0.6	%		2,699		2,406		0.6	%
Hotel, Gaming & Leisure		7,006		2,205		0.5	%		7,006		2,205		0.5	%
Construction & Building		1,437		1,425		0.4	%		7,648		7,596		1.9	%
Capital Equipment		8,016		1,299		0.3	%		8,016		1,291		0.3	%
Application Software		1,164		1,162		0.3	%		1,165		1,166		0.2	%
Telecommunications		1,541		832		0.2	%		1,541		805		0.2	%
Diversified Financial Services		—		—		0.0	%		3,058		3,074		0.8	%
Asset Management Company(1)		17,791		—		0.0	%		17,791		—		0.0	%
Energy: Oil & Gas		—		—		0.0	%		25		—		0.0	%
Total	$	481,737	$	406,423		100.0	%	$	476,432	$	405,021		100.0	%

(1)

Represents the equity investment in the Asset Manager Affiliates.

The Company has made non-controlling investments in the most junior class of securities (typically preferred shares or subordinated securities) of CLO Funds. These securities also are entitled to recurring distributions which generally equal the net remaining cash flow of the payments made by the underlying CLO Fund’s securities less contractual payments to senior bond holders, management fees and CLO Fund expenses. CLO Funds invest primarily in broadly syndicated non-investment grade loans, high-yield bonds and other credit instruments of corporate issuers. The underlying assets in each of the CLO Funds in which the Company has an investment are generally diversified secured or unsecured corporate debt. The CLO Funds are leveraged funds and any excess cash flow or “excess spread” (interest earned by the underlying securities in the CLO Funds less payments made to senior bond holders, fund expenses and management fees) is paid to the holders of the CLO Fund’s subordinated securities or preferred shares.

The following table details investments in affiliates at March 31, 2025 (dollars in thousands):


Company(1)	Type of Investment	Industry Classification	Fair Value as of December 31, 2024			Purchases/ (Sales) of or Advances/ (Distributions)			Net Accretion		Transfers In/(Out) of Affiliates		Net Change in Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value as of March 31, 2025			Principal / Shares at March 31, 2025		Interest and Fee Income		Dividend Income
Controlled investments(3)
Asset Management Company(2)	Asset Manager Affiliates	Asset Management Company	$	—		$	—		$	—	$	—	$	—		$	—		$	—			—	$	—	$	—
ProAir Holdco, LLC(5)	Common Stock and Membership Units	Capital Equipment		—			—			—		—		—			—			—			2,749,997		—		—
ProAir, LLC	Subordinated Debt	Capital Equipment		—			—			—		—		—			—			—			2,020		—		—
KCAP Freedom 3, LLC(2)	Joint Ventures	Joint Venture		13,015			(360	)		—		—		(1,274	)		—			11,381			27,220		—		—
Total Controlled investments			$	13,015		$	(360	)	$	—	$	—	$	(1,274	)	$	—		$	11,381				$	—	$	—
Non-controlled affiliated investments(4)
Series A-Great Lakes Funding II LLC(2)(6)(7)	Joint Ventures	Joint Venture	$	41,138		$	(504	)	$	—	$	—	$	(1,524	)	$	—		$	39,110			40,805	$	—	$	1,417
GreenPark Infrastructure, LLC - Series A(5)	Preferred Stock and Units	Energy: Electricity		500			—			—		—		—			—			500			1,000		—		—
GreenPark Infrastructure, LLC - Series M-1(5)	Common Stock and Membership Units	Energy: Electricity		2,202			—			—		—		(6	)		—			2,196			6,412		—		—
Kleen-Tech Acquisition, LLC(5)	Common Stock	Services: Business		1,420			—			—		—		(115	)		—			1,305			250,000		—		—
Northeast Metal Works LLC - Preferred(5)	Preferred Stock and Units	Metals & Mining		—			—			—		—		—			—			—			2,368		—		—
Northeast Metal Works LLC - Class O Preferred(5)	Preferred Stock and Units	Metals & Mining		1,160			—			—		—		—			—			1,160			4,950,000		123		—
Northeast Metal Works LLC	Second Lien/Senior Secured Debt	Metals & Mining		3,443			—			—		—		75			—			3,518			4,500		90		—
Northeast Metal Works LLC	Second Lien/Senior Secured Debt	Metals & Mining		500			—			—		—		—			—			500			500		—		—
BMP Slappey Holdco, LLC(5)	Preferred Stock and Units	Telecommunications		557			—			—		—		19			—			576			200,000		—		—
BMP Slappey Investment II(5)	Preferred Stock and Units	Telecommunications		248			—			—		—		8			—			256			88,946		—		—
Princeton Medspa Partners, LLC(5)	Preferred Stock and Units	Healthcare & Pharmaceuticals		859			33			—		—		(93	)		—			799			1,096		33		—
Princeton Medspa Partners, LLC - Warrant(5)	Common Stock and Membership Units	Healthcare & Pharmaceuticals		28			—			—		—		(8	)		—			20			0		—		—
Princeton Medspa Partners, LLC - Put Option(2)(5)	Derivatives	Healthcare & Pharmaceuticals		—			—			—		—		—			—			—			1,000,000		—		—
PMP OPCO, LLC (Princeton Medspa Partners, LLC)(7)	First Lien/Senior Secured Debt	Healthcare & Pharmaceuticals		1,529			(3	)		1		—		(9	)		—			1,518			1,675		58		—
PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)(7)	First Lien/Senior Secured Debt	Healthcare & Pharmaceuticals		(10	)		—			—		—		(1	)		—			(11	)		—		—		—
JMP Credit Advisors CLO IV LTD(3)	Collateralized Loan Obligations	CLO Fund Securities		725			(519	)		—		—		409			—			615			18,407		—		—
JMP Credit Advisors CLO V LTD(3)	Collateralized Loan Obligations	CLO Fund Securities		1,467			(656	)		—		—		—			(92	)		719			17,074		—		—
EBSC Holdings LLC (Riddell, Inc.)(5)	Preferred Stock and Units	Consumer goods: Durable		2,375			53			—		—		110			—			2,538			2,207		53		—
Riddell, Inc.(7)	First Lien/Senior Secured Debt	Consumer goods: Durable		6,243			(40	)		6		—		(5	)		—			6,204			6,205		167		—
Total non-controlled affiliated investments			$	64,384		$	(1,636	)	$	7	$	—	$	(1,140	)	$	(92	)	$	61,523				$	524	$	1,417

Total non-controlled affiliated and controlled investments			$	77,399		$	(1,996	)	$	7	$	—	$	(2,414	)	$	(92	)	$	72,904				$	524	$	1,417

(1)

All investments valued using unobservable inputs (Level III), unless otherwise noted.

(2)

Non-qualified asset for purposes of section 55(a) of the Investment Company Act of 1940.

(3)

As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.

(4)

Under the 1940 Act, the Company is deemed to be an “Affiliated Person” of, as defined in the 1940 Act, this portfolio company as the Company owns at least 5% of the portfolio company’s outstanding voting securities or is under common control with such portfolio company.

(5)

Number of shares held.

(6)

The investment is valued at the NAV of the underlying fund.

(7)

Security has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 for additional information on the Company’s commitments and contingencies.

The following table details investments in affiliates at December 31, 2024 (dollars in thousands):


Company(1)	Type of Investment	Industry Classification	Fair Value as of December 31, 2023		Purchases/ (Sales) of or Advances/ (Distributions)			Net Accretion		Transfers In/(Out) of Affiliates		Net Change in Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value as of December 31, 2024			Principal / Shares at December 31, 2024		Interest and Fee Income		Dividend Income
Controlled investments(3)
Asset Management Company(2)	Asset Manager Affiliates	Asset Management Company	$	—	$	—		$	—	$	—	$	—		$	—		$	—			—	$	—	$	—
Tank Partners Equipment Holdings, LLC - Class A Units(5)	Common Stock and Membership Units	Energy: Oil & Gas		—		—			—		—		6,228			(6,228	)		—			—		—		—
Tank Partners Equipment Holdings, LLC	Subordinated Debt	Energy: Oil & Gas		43		—			—		—		373			(416	)		—			—		—		—
ProAir Holdco, LLC(5)	Common Stock and Membership Units	Capital Equipment		—		—			—		—		—			—			—			2,749,997		—		—
ProAir, LLC	Subordinated Debt	Capital Equipment		—		—			—		—		—			—			—			2,020		—		—
KCAP Freedom 3, LLC(2)	Joint Ventures	Joint Venture		14,275		(1,976	)		—		—		716			—			13,015			27,220		—		—
Total Controlled investments			$	14,318	$	(1,976	)	$	—	$	—	$	7,317		$	(6,644	)	$	13,015				$	—	$	—
Non-controlled affiliated investments(4)
Series A-Great Lakes Funding II LLC(2)(6)(7)	Joint Ventures	Joint Venture	$	45,012	$	(2,692	)	$	—	$	—	$	(1,182	)	$	—		$	41,138			41,309	$	—	$	6,576
GreenPark Infrastructure, LLC - Series A(5)	Preferred Stock and Units	Energy: Electricity		500		—			—		—		—			—			500			1,000		—		—
GreenPark Infrastructure, LLC - Series M-1(5)	Common Stock and Membership Units	Energy: Electricity		171		2,025			—		—		6			—			2,202			6,412		—		—
Kleen-Tech Acquisition, LLC(5)	Common Stock	Services: Business		998		—			—		—		422			—			1,420			250,000		—		—
Northeast Metal Works LLC - Preferred(5)	Preferred Stock and Units	Metals & Mining		—		—			—		—		—			—			—			2,368		—		—
Northeast Metal Works LLC - Class O Preferred(5)	Preferred Stock and Units	Metals & Mining		4,182		450			—		—		(3,472	)		—			1,160			4,950,000		485		—
Northeast Metal Works LLC	Second Lien/Senior Secured Debt	Metals & Mining		3,560		—			—		—		(117	)		—			3,443			4,500		366		—
Northeast Metal Works LLC	Second Lien/Senior Secured Debt	Metals & Mining		—		500			—		—		—			—			500			500		36		—
BMP Slappey Holdco, LLC(5)	Preferred Stock and Units	Telecommunications		553		—			—		—		4			—			557			200,000		—		—
BMP Slappey Investment II(5)	Preferred Stock and Units	Telecommunications		246		—			—		—		2			—			248			88,946		—		—
Princeton Medspa Partners, LLC(5)	Preferred Stock and Units	Healthcare & Pharmaceuticals		—		1,064			—		—		(205	)		—			859			1,064		76		—
Princeton Medspa Partners, LLC - Warrant(5)	Common Stock and Membership Units	Healthcare & Pharmaceuticals		—		—			—		—		28			—			28			0		—		—
Princeton Medspa Partners, LLC - Put Option(2)(5)	Derivatives	Healthcare & Pharmaceuticals		—		—			—		—		—			—			—			1,000,000		—		—
PMP OPCO, LLC (Princeton Medspa Partners, LLC)(7)	First Lien/Senior Secured Debt	Healthcare & Pharmaceuticals		—		1,635			4		—		(110	)		—			1,529			1,679		147		—
PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)(7)	First Lien/Senior Secured Debt	Healthcare & Pharmaceuticals		—		(4	)		—		—		(6	)		—			(10	)		—		1		—
JMP Credit Advisors CLO IV LTD(3)	Collateralized Loan Obligations	CLO Fund Securities		—		(260	)		98		683		204			—			725			18,407		98		—
JMP Credit Advisors CLO V LTD(3)	Collateralized Loan Obligations	CLO Fund Securities		—		(904	)		656		3,049		—			(1,334	)		1,467			17,074		656		—
EBSC Holdings LLC (Riddell, Inc.)(5)	Preferred Stock and Units	Consumer goods: Durable		—		2,131			—		—		244			—			2,375			2,154		154		—
Riddell, Inc.(7)	First Lien/Senior Secured Debt	Consumer goods: Durable		—		6,127			20		—		96			—			6,243			6,244		554		—
Total non-controlled affiliated investments			$	55,222	$	10,072		$	778	$	3,732	$	(4,086	)	$	(1,334	)	$	64,384				$	2,573	$	6,576

Total non-controlled affiliated and controlled investments			$	69,540	$	8,096		$	778	$	3,732	$	3,231		$	(7,978	)	$	77,399				$	2,573	$	6,576

(1)

Fair value of this investment was determined using significant unobservable inputs, unless otherwise noted.

(2)

Non-qualified asset for purposes of section 55(a) of the Investment Company Act of 1940.

(3)

(4)

(5)

Number of shares held.

(6)

The investment is valued at the NAV of the underlying fund.

(7)

Security has an unfunded commitment in addition to the amounts shown in consolidated schedule of investments. See Note 8 for additional information on the Company's commitments and contingencies

For the three months ended March 31, 2025 and 2024, the Company recognized $1.4 million and $2.5 million, respectively, in investment income from its investments in Joint Ventures. As of March 31, 2025 and December 31, 2024, the aggregate fair value of the Company’s investments in Joint Ventures was approximately $50.5 million and $54.2 million, respectively.

During the third quarter of 2017, the Company and Freedom 3 Opportunities LLC (“Freedom 3 Opportunities”), an affiliate of Freedom 3 Capital LLC, entered into an agreement to create KCAP Freedom 3 LLC (the “F3C Joint Venture”). The fund capitalized by the F3C Joint Venture invests primarily in middle-market loans and the F3C Joint Venture partners may source middle-market loans from time-to-time for the fund.

The Company owns a 62.8% equity investment in the F3C Joint Venture. The F3C Joint Venture is structured as an unconsolidated Delaware limited liability company. All portfolio and other material decisions regarding the F3C Joint Venture must be submitted to its board of managers, which is comprised of four members, two of whom were selected by the Company and two of whom were selected by Freedom 3 Opportunities, and must be approved by at least one member appointed by the Company and one appointed by Freedom 3 Opportunities. In addition, certain matters may be approved by the F3C Joint Venture’s investment committee, which is comprised of one member appointed by the Company and one member appointed by Freedom 3 Opportunities.

The Company has determined that the F3C Joint Venture is an investment company under Accounting Standards Codification (“ASC”), Financial Services — Investment Companies (“ASC 946”), however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in the F3C Joint Venture because the Company does not control the F3C Joint Venture due to allocation of the voting rights among the F3C Joint Venture partners.

The fair value of the Company’s investment in the F3C Joint Venture as of March 31, 2025 and December 31, 2024 was $11.4 million and $13.0 million, respectively.

In August 2022, the Company invested in Series A – Great Lakes Funding II LLC (the “Great Lakes II Joint Venture,” collectively with the F3C Joint Venture the “Joint Ventures”), a joint venture with a third-party financial institution and certain other parties with an investment strategy to underwrite and hold senior, secured unitranche loans made to middle-market companies. The Company treats its investment in the Great Lakes II Joint Venture as a joint venture since affiliated funds of the Adviser collectively control a 50% voting interest in the Great Lakes II Joint Venture.

The Great Lakes II Joint Venture is a Delaware series limited liability company, and pursuant to the terms of the Great Lakes Funding II LLC Limited Liability Company Agreement (the “Great Lakes II LLC Agreement”), prior to the end of the investment period with respect to each series established under the Great Lakes II LLC Agreement, each member of the predecessor series would be offered the opportunity to roll its interests into any subsequent series of the Great Lakes II Joint Venture. The Company does not pay any advisory fees in connection with its investment in the Great Lakes II Joint Venture.

The fair value of the Company’s investment in the Great Lakes II Joint Venture as of March 31, 2025 and December 31, 2024 was $39.1 million and $41.1 million, respectively. Fair value has been determined utilizing the practical expedient pursuant to ASC 820-10. Pursuant to the terms of the Great Lakes II LLC Agreement, the Company generally may not effect any direct or indirect sale, transfer, assignment, hypothecation, pledge or other disposition of or encumbrance upon its interests in the Great Lakes II Joint Venture, except that the Company may sell or otherwise transfer its interests with the consent of the managing members of the Great Lakes II Joint Venture or to an affiliate or a successor to substantially all of the assets of the Company.

As of March 31, 2025 and December 31, 2024, the Company had an unfunded commitment of $8.7 million and $8.2 million to the Great Lakes II Joint Venture, respectively.

The Company follows the provisions of ASC 820: Fair Value, which among other matters, requires enhanced disclosures about investments that are measured and reported at fair value. This standard defines fair value and establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value and expands disclosures about assets and liabilities measured at fair value. ASC 820: Fair Value defines “fair value” as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This fair value definition focuses on an exit price in the principle, or most advantageous market, and prioritizes, within a measurement of fair value, the use of market-based inputs (which may be weighted or adjusted for relevance, reliability and specific attributes relative to the subject investment) over entity-specific inputs. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

ASC 820: Fair Value establishes the following three-level hierarchy, based upon the transparency of inputs to the fair value measurement of an asset or liability as of the measurement date:

Level I – Unadjusted quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities and listed securities. As required by ASC 820: Fair Value, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably affect the quoted price.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. Such inputs may be quoted prices for similar assets or liabilities, quoted markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full character of the financial instrument, or inputs that are derived principally from, or corroborated by, observable market information. Investments which are generally included in this category include illiquid debt securities and less liquid, privately held or restricted equity securities for which some level of recent trading activity has been observed.

Level III – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs may be based on the Company’s own assumptions about how market participants would price the asset or liability or may use Level II inputs, as adjusted, to reflect specific investment attributes relative to a broader market assumption. These inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data for comparable performance or valuation measures (earnings multiples, discount rates, other financial/valuation ratios, etc.) are available, such investments are grouped as Level III if any significant data point that is not also market observable (private company earnings, cash flows, etc.) is used in the valuation methodology.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the investment. A majority of the Company’s investments are classified as Level III. The Company evaluates the source of inputs, including any markets in which its investments are trading, in determining fair value. Inputs that are highly correlated to the specific investment being valued and those derived from reliable or knowledgeable sources will tend to have a higher weighting in determining fair value. The Company’s fair value determinations may include factors such as an assessment of each underlying investment, its current and prospective operating and financial performance, consideration of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, performance factors, and other investment or industry specific market data, among other factors.

The following tables summarize the fair value of investments by fair value hierarchy levels provided by ASC 820: Fair Value as of March 31, 2025 (unaudited) and December 31, 2024, respectively:


	As of March 31, 2025
($ in thousands)	Level I		Level II		Level III		NAV		Total
First Lien Debt	$	—	$	—	$	294,379	$	—	$	294,379
Second Lien Debt		—		—		28,724		—		28,724
Subordinated Debt		—		—		1,740		—		1,740
Equity		—		—		26,218		—		26,218
Collateralized Loan Obligations		—		—		4,639		—		4,639
Joint Ventures		—		—		11,381		39,110		50,491
Derivatives		—		—		232		—		232
Total	$	—	$	—	$	367,313	$	39,110	$	406,423


	As of December 31, 2024
($ in thousands)	Level I		Level II		Level III		NAV		Total
First Lien Debt	$	—	$	—	$	289,957	$	—	$	289,957
Second Lien Debt		—		—		28,996		—		28,996
Subordinated Debt		—		—		1,740		—		1,740
Equity		—		—		24,762		—		24,762
Collateralized Loan Obligations		—		—		5,193		—		5,193
Joint Ventures		—		—		13,015		41,138		54,153
Derivatives		—		—		220		—		220
Total	$	—	$	—	$	363,883	$	41,138	$	405,021

As a BDC, the Company is required to invest primarily in the debt and equity of non-public companies for which there is little, if any, market-observable information. As a result, a significant portion of the Company’s investments at any given time will likely be deemed Level III investments. Investment values derived by a third-party pricing service are generally deemed to be Level III values.

Subject to the limitations noted above, values derived for debt and equity securities using comparable public/private companies generally utilize market-observable data from such comparables and specific, non-public and non-observable financial measures (such as earnings or cash flows) for the private, underlying company/issuer. Such non-observable company/issuer data is typically provided on a monthly or quarterly basis, is certified as correct by the management of the company/issuer and/or audited by an independent accounting firm on an annual basis. Since such private company/issuer data is not publicly available it is not deemed market-observable data and, as a result, such investment values are grouped as Level III assets.

The Company’s policy for determining transfers between levels is based solely on the previously defined three-level hierarchy for fair value measurement. Transfers between the levels of the fair value hierarchy are separately noted in the tables below and the reason for such transfer described in each table’s respective footnotes. Certain information relating to investments measured at fair value for which the Company has used unobservable inputs to determine fair value is as follows:


	For the Three Months Ended March 31, 2025
($ in thousands)	First Lien Debt			Second Lien Debt			Subordinated Debt			Equity			Collateralized Loan Obligations			Joint Ventures			Derivatives		Total
Balance, December 31, 2024	$	289,957		$	28,996		$	1,740		$	24,762		$	5,193		$	13,015		$	220	$	363,883
Net accretion		685			13			1			—			78			—			—		777
Purchases		19,892			290			—			179			-			—			—		20,361
Sales/Paydowns/Return of Capital		(13,204	)		—			(26	)		(169	)		(1,397	)		(360	)		—		(15,156	)
Total realized gain (loss) included in earnings		(98	)		(46	)		—			169			(198	)		—			—		(173	)
Change in unrealized gain (loss) included in earnings		(2,853	)		(529	)		25			1,277			963			(1,274	)		12		(2,379	)
Balance, March 31, 2025	$	294,379		$	28,724		$	1,740		$	26,218		$	4,639		$	11,381		$	232	$	367,313
Changes in unrealized gains (losses) included in earnings related to investments still held at reporting date	$	(5,560	)	$	(529	)	$	(9	)	$	1,277		$	963		$	(1,274	)	$	12	$	(5,120	)


	For the Three Months Ended March 31, 2024
($ in thousands)	First Lien Debt			Second Lien Debt			Subordinated Debt			Equity Securities			Collateralized Loan Obligations			Joint Ventures			Derivatives		Total
Balance, December 31, 2023	$	289,295		$	23,232		$	1,225		$	20,533		$	8,968		$	14,275		$	—	$	357,528
Transfers out of Level III¹		(9,239	)		—			—			—			—			—			—		(9,239	)
Transfers into Level III²		6,433			—			—			—			—			—			—		6,433
Net accretion		448			(4	)		—			—			556			—			—		1,000
Purchases		33,205			713			459			2,797			—			—			—		37,174
Sales/Paydowns/Return of Capital		(22,107	)		—			(459	)		(503	)		(392	)		(968	)		—		(24,429	)
Total realized gain (loss) included in earnings		(1,241	)		—			(419	)		503			(505	)		—			—		(1,662	)
Change in unrealized gain (loss) included in earnings		427			(2,221	)		406			98			(78	)		216			—		(1,152	)
Balance, March 31, 2024	$	297,221		$	21,720		$	1,212		$	23,428		$	8,549		$	13,523		$	—	$	365,653
Changes in unrealized gains (losses) included in earnings related to investments still held at reporting date	$	427		$	(2,221	)	$	406		$	98		$	(78	)	$	216		$	—	$	(1,152	)

(1)

Transfers out of Level III represent a transfer of $9.2 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were observable as of March 31, 2024.

(2)

Transfers into Level III represent a transfer of $6.4 million relating to debt securities for which pricing inputs, other than their quoted prices in active markets were unobservable as of March 31, 2024.

As of March 31, 2025, the Company’s Level III portfolio investments had the following valuation techniques and significant inputs (dollars in thousands):


Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Range of Inputs (Weighted Average)(1)
First Lien Debt	$	31,742	Market	Broker/Dealer Quotes	N/A
		219,462	Income	Required Rate of Return	7.2% – 19.7% (11.4%)
				Stock Price Time to Exit (Years) Volatility	$892.0 1.8 49.0%
		43,175	Enterprise Market Value	Revenue Multiple	0.4x - 1.4x (0.8x)
				EBITDA Multiple	6.0x - 6.3x (6.1x)
				Recovery Percentage	100.0%
Second Lien Debt		9,070	Market	Broker/Dealer Quotes	N/A
		19,654	Income	Required Rate of Return	15.4% - 16.6% (15.7%)
Subordinated Debt		1,212	Enterprise Market Value	Recovery Percentage	19.4%
		528	Income	Required Rate of Return	10.5%
Equity		4,048	Income	Required Rate of Return	17.6%
				Stock Price Time to Exit (Years) Volatility	$111.8 - $43,280.0 ($9,343.4) 2.0 - 4.7 (3.2) 35.0% - 58.6% (53.1%)
		21,846	Enterprise Market Value	Book Value Multiple	0.7x - 1.0x (0.8x)
				EBITDA Multiple	0.1x - 17.8x (7.7x)
				Revenue Multiple	2.7x
		324	Market Approach	Recent Transaction Bid	$0.4
Collateralized Loan Obligations		4,639	Income	Discount Rate	0.0% - 17.3% (11.7%)
				Probability of Default	2.0% - 2.3% (2.1%)
				Recovery Rate	70.0%
				Prepayment Rate	20.0%
Joint Ventures		11,381	Discounted Cash Flow	Discount Rate	19.3%
				Probability of Default	4.5%
				Recovery Rate	70.0%
				Prepayment Rate	20.0%
Derivatives		232	Enterprise Market Value	Book Value Multiple	0.4x - 0.7x (0.5x)
				EBITDA Multiple	13.0x - 13.0x (0.0x)
				Discount Rate	40.0%
Total Level III Investments	$	367,313

(1) The weighted averages disclosed in the table above were weighted by their relative fair value.

As of December 31, 2024, the Company’s Level III portfolio investments had the following valuation techniques and significant inputs (dollars in thousands):


Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Range of Inputs (Weighted Average)(1)
First Lien Debt	$	47,177	Enterprise Value	Average EBITDA Multiple	0.1x - 9.0x (4.7x)
				Average Revenue Multiple	0.2x - 1.4x (1.1x)
		214,658	Income Approach	Implied Discount Rate	7.3% - 37.8% (11.6%)
		28,122	Market	Broker/Dealer Quotes	N/A
Second Lien Debt		20,980	Income Approach	Implied Discount Rate	8.2% - 19.5% (15.8%)
		8,016	Market	Broker/Dealer Quotes	N/A
Subordinated Debt		528	Income Approach	Implied Discount Rate	15.4%
		1,212	Enterprise Value	Recovery Percentage	19.4%
Equity		24,519	Enterprise Value	Average EBITDA Multiple	0.1x - 18.0x (6.2x)
				Average Revenue Multiple	1.4x - 1.4x (0.0x)
				Book value of equity (asset)	1.0x
				Book Value Multiple	0.5x
				Time Horizon	3.3 - 4.9 (3.7)
		243	Income Approach	Implied Discount Rate	17.8%
Collateralized Loan Obligations		5,193	Discounted Cash Flow	Discount Rate	15.9% - 18.2% (9.6%)
				Probability of Default	1.8% - 2.5% (2.0%)
				Recovery Rate	65.0% - 75.0% (70.0%)
				Prepayment Rate	15.0% - 25.0% (20.0%)
Joint Ventures		13,015	Discounted Cash Flow	Discount Rate	18.1% - 19.7% (18.9%)
				Probability of Default	2.8% - 3.3% (3.0%)
				Recovery Rate	65.0% - 75.0% (70.0%)
				Prepayment Rate	15.0% - 25.0% (20.0%)
Derivatives		220	Enterprise Value	Average EBITDA Multiple	14.5x - 14.5x (0.0x)
				Average Revenue Multiple	1.4x - 1.4x (0.0x)
				Book Value Multiple	0.5x
				Discount Rate	40.0%
Total Level III Investments	$	363,883

(1) The weighted averages disclosed in the table above were weighted by their relative fair value.

The significant unobservable inputs used in the fair value measurement of the Company’s debt securities may include, among other things, broad market indices, the comparable yields of similar investments in similar industries, effective discount rates, average EBITDA multiples, and weighted average cost of capital. Significant increases or decreases in such comparable yields would result in a significantly lower or higher fair value measurement, respectively.

The significant unobservable inputs used in the fair value measurement of the Company’s equity securities include the EBITDA multiple of similar investments in similar industries and the weighted average cost of capital. Significant increases or decreases in such inputs would result in a significantly lower or higher fair value measurement.

Significant unobservable inputs used in the fair value measurement of the Company’s CLO Fund Securities include default rates, recovery rates, prepayment rates, spreads, and the discount rate by which to value the resulting underlying cash flows. Such assumptions can vary significantly, depending on market data sources which often vary in depth and level of analysis, understanding of the CLO market, detailed or broad characterization of the CLO market and the application of such data to an appropriate framework for analysis. The application of data points are based on the specific attributes of each individual CLO Fund Security’s underlying assets, historic, current and prospective performance, vintage, and other quantitative and qualitative factors that would be evaluated by market participants. The Company evaluates the source of market data for reliability as an indicative market input, consistency amongst other inputs and results and also the context in which such data is presented. Significant increases or decreases in probability of default and loss severity inputs in isolation would result in a significantly lower or higher fair value measurement, respectively. In general, a change in the assumption of the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity in an event of default. Significant increases or decreases in the discount rate in isolation would result in a significantly lower or higher fair value measurement.

The Company’s investment in the F3C Joint Venture is carried at fair value based upon the fair value of the investments held by the F3C Joint Venture.

The Company values derivative contracts using various pricing models that take into account the terms of the contract (including notional amount and contract maturity) and observable and unobservable inputs such as interest rates and changes in fair value of the reference asset.