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Fair Value Measurements (Tables) | 9 Months Ended
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Jun. 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 June 30, 2023 (dollars in thousands):
|  | Fair Value Hierarchy as of June 30, 2023 |
Investments: |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Senior Secured First Lien Term Loans |  | $ | - |  |  | $ | 18,836 |  |  | $ | 86,125 |  |  | $ | 104,961 |
Senior Secured Notes |  |  | - |  |  |  | 2,138 |  |  |  | - |  |  |  | 2,138 |
Unsecured Debt |  |  | - |  |  |  | - |  |  |  | 161 |  |  |  | 161 |
Equity/Warrants |  |  | 28,321 |  |  |  | 6,175 |  |  |  | 75,969 |  |  |  | 110,465 |
Total |  | $ | 28,321 |  |  | $ | 27,149 |  |  | $ | 162,255 |  |  | $ | 217,725 |
Investments measured at net asset value(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 962 |
Total Investments, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 218,687 |
(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.
|  | 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 nine months ended June 30, 2023 (dollars in thousands):
|  | Senior Secured First Lien Term Loans |  |  | Senior Secured Second Lien Term Loans |  |  | Unsecured Debt |  |  | Equities/ Warrants |  |  | Fund Investment |  |  | Total |
Balance as of September 30, 2022 |  | $ | 74,252 |  |  | $ | 2,607 |  |  | $ | - |  |  | $ | 69,816 |  |  | $ | - |  |  | $ | 146,675 |
Purchases and other adjustments to cost |  |  | 22,722 |  |  |  | - |  |  |  | - |  |  |  | 17,883 |  |  |  | 1,027 |  |  |  | 41,632 |
Sales (including repayments or maturities) |  |  | (7,256 | ) |  |  | (2,607 | ) |  |  | (30 | ) |  |  | (23,858 | ) |  |  | - |  |  |  | (33,751 | )
Net realized gains/(losses) from investments |  |  | 105 |  |  |  | 5 |  |  |  | 1 |  |  |  | (927 | ) |  |  | - |  |  |  | (816 | )
Net unrealized gains/(losses) |  |  | (3,698 | ) |  |  | (5 | ) |  |  | 190 |  |  |  | 13,055 |  |  |  | (65 | ) |  |  | 9,477 |
Transfer in/(out) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance as of June 30, 2023 |  | $ | 86,125 |  |  | $ | - |  |  | $ | 161 |  |  | $ | 75,969 |  |  | $ | 962 |  |  | $ | 163,217 |
|  | Senior Secured First Lien Term Loans |  |  | Senior Secured Second Lien Term Loans |  |  | Senior Secured Notes |  |  | Unsecured Debt |  |  | Equities/ Warrants |  |  | Total |
Balance as of September 30, 2021 |  | $ | 61,934 |  |  | $ | 2,490 |  |  | $ | 2,500 |  |  | $ | - |  |  | $ | 48,889 |  |  | $ | 115,813 |
Purchases and other adjustments to cost |  |  | 44,145 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 55,437 |  |  |  | 99,582 |
Sales (including repayments or maturities) |  |  | (47,936 | ) |  |  | - |  |  |  | - |  |  |  | (1,280 | ) |  |  | (47,207 | ) |  |  | (96,423 | )
Net realized gains/(losses) from investments |  |  | (21,737 | ) |  |  | - |  |  |  | - |  |  |  | (99 | ) |  |  | 36,601 |  |  |  | 14,765 |
Net unrealized gains/(losses) |  |  | 27,398 |  |  |  | 111 |  |  |  | (2,500 | )(1) |  |  | 1,379 |  |  |  | (32,998 | )(1) |  |  | (6,610 | )
Transfer in/(out) |  |  | (5,248 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (5,248 | )
Balance as of June 30, 2022 |  | $ | 58,556 |  |  | $ | 2,601 |  |  | $ | - |  |  | $ | - |  |  | $ | 60,722 |  |  | $ | 121,879 |
(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 June 30, 2023 (dollars in thousands):
|  | Fair Value |  |  | Valuation Methodology |  | Unobservable Input |  | Range (Weighted Average)
Senior Secured First Lien Term Loans |  | $ | 74,666 |  |  | Market Approach |  | Market Yield |  | 8.50% - 32.0% (13.4%)
Senior Secured First Lien Term Loans |  |  | 764 |  |  | Market Approach |  | Revenue Multiple |  | 0.3x - 0.3x (0.3x)
Senior Secured First Lien Term Loans |  |  | 9,830 |  |  | Market Approach |  | EBITDA Multiple |  | 1.7x - 5.0x (3.1x)
Senior Secured First Lien Term Loans |  |  | 865 |  |  | Market Approach |  | LTM EBITDA Multiple |  | 5.75x - 6.75x (6.25x)
Senior Secured Notes |  |  | - |  |  | Market Approach (Guideline Comparable) |  | EBITDA Multiple |  | 21.0x - 22.0x (21.5x)
Unsecured Debt |  |  | 161 |  |  | Cost Approach |  | Transaction |  | N/A
Equity/Warrants |  |  | 34,125 |  |  | Cost Approach |  | Replacement Cost |  | N/A
Equity/Warrants |  |  | 12,278 |  |  | Income Approach |  | Market Yield |  | 11.5% - 13.0% (5.3%)
Equity/Warrants |  |  | 11,674 |  |  | Market Approach |  | LTM Multiple |  | 5.8x - 6.8x (6.3x)
Equity/Warrants |  |  | 9,422 |  |  | Market Approach |  | EBITDA Multiple |  | 1.8x - 38.6x (5.9x)
Equity/Warrants |  |  | 8,000 |  |  | Recent Purchase |  | Purchase Price |  | N/A - N/A (N/A)
Equity/Warrants |  |  | 65 |  |  | Market Approach |  | Sum of the Parts/Estimated proceeds |  | 3.9x – 4.1x (4.0x)
Equity/Warrants |  |  | 405 |  |  | Income Approach |  | DLOM (Discount for lack of Marketability) |  | 3.0x - 3.2x (3.1x)
Total |  | $ | 162,255 |  |  |  |  |  |  |
|  | 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 |  |  | Income 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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