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Affiliates and Controlled Investments
 6 Months Ended
Jun. 30, 2026
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 June 30, 2026 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 June 30, 2026 represented 73% of the Company’s net assets.

Fair value as of June 30, 2026 along with transactions during the six months ended June 30, 2026 in these affiliated investments and controlled investments were as follows:

 

 

For the Six Months Ended June 30, 2026

 

Issue(1)

 

Fair value at December 31, 2025

 

 

Gross Additions(2)

 

 

Gross Reductions(3)

 

 

Net Realized
Gain (Loss)

 

 

Change in Unrealized
Appreciation (Depreciation)

 

 

Fair value at June 30, 2026

 

 

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

 

 

25,325

 

 

 

3,550

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28,875

 

 

 

1,711

 

 

 

-

 

 

 

-

 

Equity (87.5% of class)

 

 

13,137

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,500

)

 

 

11,637

 

 

 

-

 

 

 

-

 

 

 

56

 

 

 

 

38,462

 

 

 

3,550

 

 

 

-

 

 

 

-

 

 

 

(1,500

)

 

 

40,512

 

 

 

1,711

 

 

 

-

 

 

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CLO Formation JV, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (71.25% of class)

 

 

41,425

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,841

)

 

 

37,584

 

 

 

-

 

 

 

-

 

 

 

5,059

 

 

 

 

41,425

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,841

)

 

 

37,584

 

 

 

-

 

 

 

-

 

 

 

5,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alpha Edison Quantum II, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (93.70% of class)

 

 

-

 

 

 

2,900

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,900

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

2,900

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,900

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

79,887

 

 

$

6,450

 

 

$

-

 

 

$

-

 

 

$

(5,341

)

 

$

80,996

 

 

$

1,711

 

 

$

-

 

 

$

5,115

 
(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”) and Great Elm Specialty Finance, LLC (“GESF”) are significant subsidiaries for the six months ended June 30, 2026 under at least one of the conditions of S-X Rule 1-02(w).

Selected unaudited financial information of CLO JV for the six months ended June 30, 2026 and 2025 has been included below:

Statement of Operations

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total Revenues

 

 

3,135

 

 

 

4,627

 

 

 

5,338

 

 

 

6,334

 

Total Expenses

 

 

15

 

 

 

45

 

 

 

17

 

 

 

90

 

Net Income

 

 

3,120

 

 

 

4,582

 

 

 

5,321

 

 

 

6,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized Gain (Loss)

 

 

-

 

 

 

(410

)

 

 

-

 

 

 

(410

)

Unrealized Gain (Loss)

 

 

456

 

 

 

(2,012

)

 

 

(3,613

)

 

 

(1,688

)

Net Results

 

 

3,576

 

 

 

2,160

 

 

 

1,708

 

 

 

4,146

 

Selected unaudited financial information of GESF for the six months ended June 30, 2026 and 2025 has been included below:

Statement of Operations

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Gross revenues

 

 

3,233

 

 

 

2,169

 

 

 

5,697

 

 

 

4,025

 

Other income (expense)

 

 

(3,400

)

 

 

(1,994

)

 

 

(5,259

)

 

 

(4,352

)

Net profit (loss) from operations

 

 

(167

)

 

 

175

 

 

 

438

 

 

 

(327

)