Affiliates and Controlled Investments

9 Months Ended

Sep. 30, 2025

Investments in and Advances to Affiliates [Abstract]

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.