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Affiliates and Controlled Investments | 9 Months Ended
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Sep. 30, 2025
Investments in and Advances to Affiliates [Abstract] |
Affiliated and Controlled Investments | 10. AFFILIATED AND CONTROLLED INVESTMENTS Affiliated investments are defined by the Investment Company Act, whereby the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities and the investments are not classified as controlled investments. The aggregate fair value of non-controlled, affiliated investments at September 30, 2025 represented 0% of the Company’s net assets. Controlled investments are defined by the Investment Company Act, whereby the Company owns more than 25% of the portfolio company’s outstanding voting securities or maintains the ability to nominate greater than 50% of the board representation. The aggregate fair value of controlled investments at September 30, 2025 represented 60% of the Company’s net assets. Fair value as of September 30, 2025 along with transactions during the nine months ended September 30, 2025 in these affiliated investments and controlled investments was as follows:
|  | For the Nine Months Ended September 30, 2025 |
Issue(1) |  | Fair value at December 31, 2024 |  |  | Gross Additions(2) |  |  | Gross Reductions(3) |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Fair value at September 30, 2025 |  |  | Interest Income |  |  | Fee Income |  |  | Dividend Income |
Non-Controlled, Affiliated Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PFS Holdings Corp. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity (5.05% of class) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Totals |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Controlled Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Great Elm Specialty Finance, LLC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Subordinated Note |  |  | 29,733 |  |  |  | 2,325 |  |  |  | 6,733 |  |  |  | - |  |  |  | - |  |  |  | 25,325 |  |  |  | 2,528 |  |  |  | - |  |  |  | - |
Equity (87.5% of class) |  |  | 13,482 |  |  |  | - |  |  |  | 567 |  |  |  | - |  |  |  | 455 |  |  |  | 13,370 |  |  |  | - |  |  |  | - |  |  |  | 644 |
|  |  | 43,215 |  |  |  | 2,325 |  |  |  | 7,300 |  |  |  | - |  |  |  | 455 |  |  |  | 38,695 |  |  |  | 2,528 |  |  |  | - |  |  |  | 644 |
CLO Formation JV, LLC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity (71.25% of class) |  |  | 40,089 |  |  |  | 13,611 |  |  |  | 966 |  |  |  | - |  |  |  | (7,337 | ) |  |  | 45,397 |  |  |  | - |  |  |  | - |  |  |  | 8,601 |
|  |  | 40,089 |  |  |  | 13,611 |  |  |  | 966 |  |  |  | - |  |  |  | (7,337 | ) |  |  | 45,397 |  |  |  | - |  |  |  | - |  |  |  | 8,601 |
Totals |  | $ | 83,304 |  |  | $ | 15,936 |  |  | $ | 8,266 |  |  | $ | - |  |  | $ | (6,882 | ) |  | $ | 84,092 |  |  | $ | 2,528 |  |  | $ | - |  |  | $ | 9,245 |
(1) Non-unitized equity investments are disclosed with percentage ownership in lieu of quantity. (2) Gross additions include increases resulting from new or additional portfolio investments, capitalized PIK income, accretion of discounts and the exchange of one or more existing securities for one or more new securities. (3) Gross reductions include decreases resulting from principal collections related to investment repayments or sales and the exchange of one or more existing securities for one or more new securities. In accordance with SEC Regulation S-X (“S-X”) Rules 3-09 and 4-08(g), the Company must determine which of its unconsolidated controlled portfolio companies, if any, are considered to be "significant subsidiaries." After performing this analysis, the Company determined that CLO Formation JV, LLC ("CLO JV") is a significant subsidiaries for the three and nine months ended September 30, 2025 under at least one of the conditions of S-X Rule 1-02(w). Selected unaudited financial information of CLO JV as of and for the three and nine months ended September 30, 2025 has been included below.
Balance Sheet |  | September 30, 2025 |  |  | December 31, 2024 |
Total Assets |  | $ | 63,772 |  |  | $ | 56,398 |
Total Liabilities |  |  | 70 |  |  |  | 124 |
Net Equity |  | $ | 63,702 |  |  | $ | 56,274 |
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
Statement of Operations |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total Revenues |  | $ | 2,701 |  |  | $ | 2,811 |  |  | $ | 9,035 |  |  | $ | 3,293 |
Total Expenses |  |  | (33 | ) |  |  | 19 |  |  |  | 57 |  |  |  | 52 |
Net Income |  | $ | 2,734 |  |  | $ | 2,792 |  |  | $ | 8,978 |  |  | $ | 3,241 |
Realized Gain (Loss) |  |  | - |  |  |  | 34 |  |  |  | (410 | ) |  |  | 34 |
Unrealized Gain |  |  | (5,129 | ) |  |  | 2,375 |  |  |  | (6,817 | ) |  |  | 2,382 |
Net Results |  | $ | (2,395 | ) |  | $ | 5,201 |  |  | $ | 1,751 |  |  | $ | 5,657 |
(1) Operations commenced on April 23, 2024. The following table shows the schedule of investments of CLO JV as of September 30, 2025:
Portfolio Company |  | Interest Rate(1) |  | Initial Acquisition Date |  | Maturity Date |  | Quantity/Par |  |  | Amortized Cost |  |  | Fair Value |
CLO Subordinated Notes(2)(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Apex Credit CLO 2024-I Ltd |  | 19.5% |  | 04/24/24 |  | 04/20/36 |  |  | 14,957 |  |  | $ | 9,782 |  |  | $ | 9,604 |
Apex Credit CLO 2024-II Ltd |  | 18.1% |  | 07/02/24 |  | 07/25/37 |  |  | 34,550 |  |  |  | 26,518 |  |  |  | 22,906 |
Apex Credit CLO 12 Ltd |  | 19.7% |  | 11/01/24 |  | 04/20/38 |  |  | 32,932 |  |  |  | 29,994 |  |  |  | 27,630 |
Total Investments (94.4% of net assets) |  |  |  |  |  |  |  |  |  |  |  | 66,294 |  |  |  | 60,140 |
The following table shows the schedule of investments of CLO JV as of December 31, 2024:
Portfolio Company |  | Interest Rate(1) |  | Initial Acquisition Date |  | Maturity Date |  | Quantity/Par |  |  | Amortized Cost |  |  | Fair Value |
CLO Subordinated Notes(2)(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Apex Credit CLO 2024-I Ltd |  | 22.3% |  | 04/24/24 |  | 04/20/36 |  |  | 14,957 |  |  | $ | 10,994 |  |  | $ | 11,990 |
Apex Credit CLO 2024-II Ltd |  | 17.4% |  | 07/02/24 |  | 07/25/37 |  |  | 34,550 |  |  |  | 31,095 |  |  |  | 30,561 |
|  |  |  |  |  |  |  |  |  |  |  | 42,089 |  |  |  | 42,551 |
Loan Accumulation Facility(2)(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Apex Credit CLO 12 Ltd |  | n/a |  | 11/01/24 |  | 05/23/26 |  |  | 11,300 |  |  |  | 11,300 |  |  |  | 11,502 |
Total Investments (96.1% of net assets) |  |  |  |  |  |  |  |  |  |  |  | 53,389 |  |  |  | 54,053 |
(1) The CLO subordinated notes are considered equity positions in CLO vehicles. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying vehicle's securities less contractual payments to debt holders and expenses. The estimated yield indicated is based on the ending investment cost, as well as, a current projection of the future cash flows. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized. (2) All investments in CLO subordinated notes and loan accumulation facilities are in the structured finance industry. (3) These investments were valued using unobservable inputs and are considered Level 3 investments.

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column A)(Footnote 1)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 + Details
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