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Fair Value Measurements (Tables)

9 Months Ended

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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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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