XML 41 R30.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Fair Value Measurements (Tables) | 6 Months Ended
--- | ---
Mar. 31, 2024
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 March 31, 2024 (dollars in thousands):
|  | Fair Value Hierarchy as of March 31, 2024 |
Investments: |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Senior Secured First Lien Term Loans |  | $ | - |  |  | $ | 26,626 |  |  | $ | 79,981 |  |  | $ | 106,607 |
Senior Secured Notes |  |  | - |  |  |  | 12,372 |  |  |  | - |  |  |  | 12,372 |
Equity/Warrants |  |  | 23,612 |  |  |  | 6,119 |  |  |  | 70,556 |  |  |  | 100,287 |
Total |  | $ | 23,612 |  |  | $ | 45,117 |  |  | $ | 150,537 |  |  | $ | 219,266 |
Investments measured at net asset value(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 783 |
Total Investments, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 220,049 |
| (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 |
(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.
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 six months ended March 31, 2024 (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 |  |  | 14,352 |  |  |  | 20,098 |  |  |  | 34,450 |
Sales (including repayments or maturities) |  |  | (30,946 | ) |  |  | (22,806 | ) |  |  | (53,752 | )
Net realized gains/(losses) from investments |  |  | (8,676 | ) |  |  | 7,204 |  |  |  | (1,472 | )
Net unrealized gains/(losses) |  |  | 22,752 |  |  |  | (16,757 | ) |  |  | 5,995 |
Transfer in/(out) |  |  | - |  |  |  | - |  |  |  | - |
Balance as of March 31, 2024 |  | $ | 79,981 |  |  | $ | 70,556 |  |  | $ | 150,537 |
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended March 31, 2023 (dollars in thousands):
|  | Senior Secured First Lien Term Loans |  |  | Senior Secured Second Lien Term Loans |  |  | 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 |  |  | 15,443 |  |  |  | - |  |  |  | 8,723 |  |  |  | 1,027 |  |  |  | 25,193 |
Sales (including repayments or maturities) |  |  | (3,657 | ) |  |  | (2,607 | ) |  |  | (18,041 | ) |  |  | - |  |  |  | (24,305 | )
Net realized gains/(losses) from investments |  |  | 85 |  |  |  | 5 |  |  |  | (927 | ) |  |  | - |  |  |  | (837 | )
Net unrealized gains/(losses) |  |  | (2,964 | ) |  |  | (5 | ) |  |  | 7,509 |  |  |  | - |  |  |  | 4,540 |
Transfer in/(out) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance as of March 31, 2023 |  | $ | 83,159 |  |  | $ | - |  |  | $ | 67,080 |  |  | $ | 1,027 |  |  | $ | 151,266 |
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 March 31, 2024 (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 |  | $ | 75,177 |  |  | Income Approach |  | Market Yield |  | 9.0% - 37.5% (15.4%) |  | Decrease
Senior Secured First Lien Term Loans |  |  | 3,958 |  |  | Market Approach |  | EBITDA Multiple |  | 1.6x - 5.0x (4.0x) |  | Increase
Senior Secured First Lien Term Loans |  |  | 846 |  |  | Market Approach |  | LTM EBITDA Multiple |  | 6.3x - 7.3x (6.8x) |  | Increase
Equity/Warrants |  |  | 34,729 |  |  | 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 |  |  | 24,835 |  |  | Market Approach |  | EBITDA Multiple |  | 1.0x - 36.8x (5.8x) |  | Increase
Equity/Warrants |  |  | 133 |  |  | Income Approach |  | DLOM (Discount for lack of Marketability) |  | 29.5% - 29.5% (29.5%) |  | Decrease
Equity/Warrants |  |  | 100 |  |  | Recent Purchase |  | Recent Purchase |  | N/A |  | N/A
Total |  | $ | 150,537 |  |  |  |  |  |  |  |  |
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 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. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueMeasurementsNonrecurringValueMeasurementAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration