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Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2023

Fair Value Measurements [Abstract]

Schedule of Fair Value Measurements of Our Investments

The following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of September 30, 2023 (dollars in thousands):

		Fair Value Hierarchy as of September 30, 2023
Investments:		Level 1				Level 2				Level 3				Total
Senior Secured First Lien Term Loans		$	-			$	20,505			$	82,499			$	103,004
Senior Secured Notes			-				8,922				-				8,922
Unsecured Debt			-				-				-				-
Equity/Warrants			24,709				6,217				82,817				113,743
Total		$	24,709			$	35,644			$	165,316			$	225,669
Investments measured at net asset value(1)															792
Total Investments, at fair value														$	226,461

(1) Certain investments that are measured at fair value using NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Consolidated Statements of Assets and Liabilities.

The following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of September 30, 2022 (dollars in thousands):

		Fair Value Hierarchy as of September 30, 2022
Investments:		Level 1				Level 2				Level 3				Total
Senior Secured First Lien Term Loans		$	-			$	13,996			$	74,252			$	88,248
Senior Secured Second Lien Term Loans			-				-				2,607				2,607
Senior Secured Notes			-				1,659				-				1,659
Unsecured Debt			-				-				-				-
Equity/Warrants			24,750				5,877				69,816				100,443
Total		$	24,750			$	21,532			$	146,675			$	192,957

Schedule of Investments that Use Level 3 Inputs

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended September 30, 2023 (dollars in thousands):

		Senior Secured First Lien Term Loans				Senior Secured Second Lien Term Loans				Unsecured Debt				Equities/ Warrants				Total
Balance as of September 30, 2022		$	74,252			$	2,607			$	-			$	69,816			$	146,675
Purchases and other adjustments to cost			23,481				-				-				29,571				53,052
Sales (including repayments or maturities)			(12,840	)			(2,607	)			(191	)			(33,213	)			(48,851	)
Net realized gains/(losses) from investments			162	)			5				9				(9,574	)			(9,398	)
Net unrealized gains/(losses)			(2,556	)			(5	)			182				26,217				23,838
Transfer in/(out)			-				-				-				-				-
Balance as of September 30, 2023		$	82,499			$	-			$	-			$	82,817			$	165,316

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended September 30, 2022 (dollars in thousands):

		Senior Secured First Lien Term Loans				Senior Secured Second Lien Term Loans				Secured Debt				Unsecured Debt				Equities/ Warrants(1)				Total
Balance as of September 30, 2021		$	61,934			$	2,490			$	2,500			$	-			$	48,889			$	115,813
Purchases and other adjustments to cost			59,179				-				-				-				71,111				130,290
Sales			(58,333	)			-				-				(1,280	)			(52,938	)			(112,551	)
Net realized gains/(losses) from investments			(23,917	)			-				-				(99	)			36,101				12,085
Net unrealized gains/(losses)			35,189				117				(2,500	)(1)			1,379				(33,347	)(1)			838
Transfer in/(out)			200				-				-				-				-				200
Balance as of September 30, 2022		$	74,252			$	2,607			$	-			$	-			$	69,816			$	146,675

(1) FlexFIN, LLC was reclassed as an Equity from Secured Debt during the quarter ended December 31, 2021.

Schedule of Quantitative Information About Level 3 Fair Value Measurements of Our Investments

The following table presents the quantitative information about Level 3 fair value measurements of our investments, as of September 30, 2023 (dollars in thousands):

Fair Value

Valuation Methodology

Unobservable Input

Range (Weighted Average)

Impact to Valuation From An Increase In Input

Senior Secured First Lien Term Loans

$

69,943

Income Approach

Market Yield

8.50% - 32.0% (13.78%)

Decrease

Senior Secured First Lien Term Loans

751

Market Approach

Revenue Multiple

0.3x - 0.3x (0.3x)

Increase

Senior Secured First Lien Term Loans

10,939

Market Approach

EBITDA Multiple

1.7x - 5.0x (3.1x)

Increase

Senior Secured First Lien Term Loans

866

Market Approach

LTM EBITDA Multiple

5.8x - 6.8x (6.3x)

Increase

Equity/Warrants

38,870

Cost Approach

Collateral Value

N/A

N/A

Equity/Warrants

11,734

Market Approach

LTM Multiple

5.8x – 6.8x (6.3x)

Increase

Equity/Warrants

22,007

Market Approach

EBITDA Multiple

1.8x – 36.8x (2.8x)

Increase

Equity/Warrants

10,000

Recent Purchase

Purchase Price

N/A – N/A (N/A)

N/A

Equity/Warrants

206

Income Approach

DLOM (Discount for lack of Marketability)

3.0x – 3.2x (3.1x)

Decrease

Total

$

165,316

The following table presents the quantitative information about Level 3 fair value measurements of our investments, as of September 30, 2022 (dollars in thousands):

		Fair Value				Valuation Methodology		Unobservable Input		Range (Weighted Average)
Senior Secured First Lien Term Loans		$	65,428			Income Approach		Market Yield		8.50% - 24.00% (10.57%)
Senior Secured First Lien Term Loans			3,807			Market Approach		EBITDA Multiple		4.0x – 5.0x (4.5x)
Senior Secured First Lien Term Loans			4,152			Market Approach		Revenue Multiple		0.2x – 0.3x (2.5x)
Senior Secured First Lien Term Loans			865			Income Approach		Market Spread		5.75% - 6.25% (6.00%)
Senior Secured Second Lien Term Loans			2,607			Market Approach		EBITDA Multiple		9.0x – 10.0x (9.5x)
Equity/Warrants			47,138			Cost Approach		Replacement Cost		N/A
Equity/Warrants			11,444			Market Approach		EBITDA Multiple		2.0x – 21.0x (17.4x)
Equity/Warrants			9,951			Market Approach		Market Yield		8.50% - 13.25% (12.75%)
Equity/Warrants			1,283			Market Approach		Sum of the Parts/Estimated Proceeds		8.1x – 11.4x (9.8x)
Total		$	146,675

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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