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Fair Value Measurements (Tables) | 3 Months Ended
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Dec. 31, 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 December 31, 2023 (dollars in thousands):
|  | Fair Value Hierarchy as of December 31, 2023 |
Investments: |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Senior Secured First Lien Term Loans |  | $ | - |  |  | $ | 19,996 |  |  | $ | 82,396 |  |  | $ | 102,392 |
Senior Secured Notes |  |  | - |  |  |  | 8,997 |  |  |  | - |  |  |  | 8,997 |
Equity/Warrants |  |  | 22,231 |  |  |  | 6,296 |  |  |  | 81,523 |  |  |  | 110,050 |
Total |  | $ | 22,231 |  |  | $ | 35,289 |  |  | $ | 163,919 |  |  | $ | 221,439 |
Investments measured at net asset value(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 783 |
Total Investments, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 222,222 |
(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, 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 |
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 |
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 three months ended December 31, 2023 (dollars in thousands):
|  | Senior Secured First Lien Term Loans |  |  | Equities/ Warrants |  |  | Total |
Balance as of September 30, 2023 |  | $ | 82,499 |  |  | $ | 82,817 |  |  | $ | 165,316 |
Purchases and other adjustments to cost |  |  | 7,760 |  |  |  | 6,752 |  |  |  | 14,512 |
Sales (including repayments or maturities) |  |  | (8,802 | ) |  |  | (7,852 | ) |  |  | (16,654 | )
Net realized gains/(losses) from investments |  |  | (12 | ) |  |  | 278 |  |  |  | 266 |
Net unrealized gains/(losses) |  |  | 951 |  |  |  | (472 | ) |  |  | 479 |
Transfer in/(out) |  |  | - |  |  |  | - |  |  |  | - |
Balance as of December 31, 2023 |  | $ | 82,396 |  |  | $ | 81,523 |  |  | $ | 163,919 |
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended December 31, 2022 (dollars in thousands):
|  | Senior Secured First Lien Term Loans |  |  | Senior Secured Second Lien Term Loans |  |  | Senior Secured Notes |  |  | Equities/ Warrants |  |  | Total |
Balance as of September 30, 2022 |  | $ | 74,252 |  |  | $ | 2,607 |  |  |  | - |  |  | $ | 69,816 |  |  | $ | 146,675 |
Purchases and other adjustments to cost |  |  | 2,900 |  |  |  | - |  |  |  | - |  |  |  | 4,282 |  |  |  | 7,182 |
Sales (including repayments or maturities) |  |  | (1,046 | ) |  |  | (2,607 | ) |  |  | - |  |  |  | (14,644 | ) |  |  | (18,297 | )
Net realized gains/(losses) from investments |  |  | 3 |  |  |  | 5 |  |  |  | (42 | ) |  |  | - |  |  |  | (34 | )
Net unrealized gains/(losses) |  |  | (1,448 | ) |  |  | (5 | ) |  |  | 1,659 |  |  |  | (391 | ) |  |  | (185 | )
Transfer in/(out) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance as of December 31, 2022 |  | $ | 74,661 |  |  | $ | - |  |  |  | 1,617 |  |  | $ | 59,063 |  |  | $ | 135,341 |
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 December 31, 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 |  | $ | 68,020 |  |  | Income Approach |  | Market Yield |  | 9.0% - 36.0% (14.88%) |  | Decrease
Senior Secured First Lien Term Loans |  |  | 13,520 |  |  | Market Approach |  | EBITDA Multiple |  | 1.6x - 5.0x (2.8x) |  | Increase
Senior Secured First Lien Term Loans |  |  | 856 |  |  | Market Approach |  | LTM EBITDA Multiple |  | 6.3x - 7.3x (6.8x) |  | Increase
Equity/Warrants |  |  | 36,411 |  |  | Cost Approach |  | Collateral Value |  | N/A |  | N/A
Equity/Warrants |  |  | 10,759 |  |  | Market Approach |  | LTM Multiple |  | 6.3x - 7.3x (6.8x) |  | Increase
Equity/Warrants |  |  | 34,124 |  |  | Market Approach |  | EBITDA Multiple |  | 1.3x - 36.8x (4.1x) |  | Increase
Equity/Warrants |  |  | 229 |  |  | Income Approach |  | DLOM (Discount for lack of Marketability) |  | 3.0x - 3.1x (3.1x) |  | Decrease
Total |  | $ | 163,919 |  |  |  |  |  |  |  |  |
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 |  |  |  |  |  |  |  |  |

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