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Fair Value Measurements (Tables)

3 Months Ended

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

X

- Definition

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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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