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Investments
 9 Months Ended
Jun. 30, 2025
Investments [Abstract]  
Investments

Note 3. Investments

 

The composition of our investments as of June 30, 2025 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands): 

 

   Amortized Cost   Percentage   Fair Value   Percentage 
Senior Secured First Lien Term Loans  $128,208    40.2%  $119,867    40.6%
Senior Secured Notes   17,156    5.4    17,528    6.0 
Fund Investment   1,746    0.5    1,650    0.6 
Equity/Warrants   171,695    53.9    155,394    52.8 
Total Investments  $318,805    100.0%  $294,439    100.0%

 

 

The composition of our investments as of September 30, 2024 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands): 

 

   Amortized Cost   Percentage   Fair Value   Percentage 
Senior Secured First Lien Term Loans  $129,957    49.8%  $113,990    50.0%
Senior Secured Notes   18,127    7.0    18,476    8.1 
Fund Investment   1,746    0.7    1,525    0.7 
Equity/Warrants   110,930    42.5    93,925    41.2 
Total Investments  $260,760    100.0%  $227,916    100.0%

 

In connection with certain of the Company’s investments, the Company receives warrants that are obtained for the objective of increasing the total investment returns and are not held for hedging purposes. At June 30, 2025 and September 30, 2024, the total fair value of warrants was $803.0 thousand and $82.7 thousand, respectively, and were included in investments at fair value on the Consolidated Statements of Assets and Liabilities. During the three months ended June 30, 2025, the Company did not acquire any additional warrants in an existing portfolio company. During the nine months ended June 30, 2025, the Company acquired one warrant in an existing portfolio company. During the three and nine months ended June 30, 2024, the Company did not acquire any additional warrants in an existing portfolio company.

 

For the three and nine months ended June 30, 2025, there was $434.7 thousand and $(59.0) thousand, respectively, in unrealized/(depreciation) related to warrants and was recorded on the Consolidated Statements of Operations as net unrealized appreciation/(depreciation) on investments. For the three and nine months ended June 30, 2024, there was $34.8 thousand and $108.1 thousand, respectively, in unrealized depreciation related to warrants and was recorded on the Consolidated Statements of Operations as net unrealized appreciation/(depreciation) on investments. The warrants are received in connection with individual investments and are not subject to master netting arrangements. 

 

The following table shows the portfolio composition by industry grouping at fair value at June 30, 2025 (dollars in thousands):

 

   Fair Value   Percentage 
         
Services: Business  $53,103    17.9%
Insurance   48,429    16.3 
Real Estate   40,770    13.8 
Services: Consumer   37,581    12.8 
Aerospace & Defense   25,239    8.6 
Hotel, Gaming & Leisure   24,891    8.5 
High Tech Industries   17,592    6.0 
Construction & Building   16,058    5.5 
Automotive   10,291    3.5 
Metals & Mining   8,763    3.0 
Consumer Discretionary   5,155    1.8 
Media: Broadcasting & Subscription   4,917    1.7 
Banking   1,650    0.6 
Total  $294,439    100.0%

The following table shows the portfolio composition by industry grouping at fair value at September 30, 2024 (dollars in thousands):

 

   Fair Value   Percentage 
         
Real Estate  $50,162    22.0%
Services: Business   46,706    20.5 
Services: Consumer   28,121    12.3 
Hotel, Gaming & Leisure   24,253    10.6 
Construction & Building   17,095    7.5 
High Tech Industries   12,352    5.5 
Automotive   12,316    5.4 
Metals & Mining   12,161    5.3 
Media: Broadcasting & Subscription   9,003    4.0 
Energy: Oil & Gas   4,333    1.9 
Packaging   3,505    1.5 
Consumer Discretionary   3,456    1.5 
Aerospace & Defense   2,827    1.2 
Banking   1,525    0.7 
Insurance   101    0.1 
Total  $227,916    100.0%

 

The Company invests in portfolio companies principally located in the United States. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.

 

The following table shows the portfolio composition by geographic location at fair value at June 30, 2025 (dollars in thousands):

 

   Fair Value   Percentage 
Southeast  $107,519    36.4%
Northeast   104,982    35.7 
West   31,670    10.8 
Midwest   21,709    7.4 
Southwest   15,575    5.3 
Mid-Atlantic   321    0.1 
International   12,663    4.3 
Total  $294,439    100.0%

 

The following table shows the portfolio composition by geographic location at fair value at September 30, 2024 (dollars in thousands):

 

   Fair Value   Percentage 
Northeast  $87,269    38.3%
Southeast   61,276    26.9 
Midwest   34,648    15.2 
West   31,951    14.0 
Southwest   2,749    1.2 
Mid-Atlantic   375    0.2 
International   9,648    4.2 
Total  $227,916    100.0%

Transactions With Affiliated/Controlled Companies

 

The Company had investments in portfolio companies designated as Affiliated Investments and Controlled Investments under the 1940 Act. Transactions with Affiliated Investments and Controlled Investments during the nine months ended June 30, 2025 and 2024 were as follows:

 

Name of Investment(1)(2)  Type of Investment  Fair Value at September 30, 2024   Purchases/
(Sales) of or
Advances/
(Distributions)		   Transfers In/(Out)
 of Affiliates		   Unrealized Gain/(Loss)   Realized
Gain/(Loss)		   Fair Value at
June 30, 2025		   Earned
Income		   Fee/Other Income 
Affiliated Investments                                
Black Angus Steakhouses, LLC  Senior Secured First Lien Delayed Draw Term Loan  $751,207   $(243,889)  $
-
   $124,542    (631,860)  $
               -
   $
           -
   $
            -
 
   Senior Secured First Lien Term Loan   
-
    
-
    
-
    7,767,533    (7,767,533)   
-
    
-
    
-
 
   Senior Secured First Lien Super Priority DDTL   1,647,776    
-
    
-
    273,184    (1,920,960)   
-
    
-
    
-
 
FST Holdings Parent, LLC  Equity   12,351,802    8,289    
-
    (767,757)   
-
    11,592,334    254,231    
-
 
Total Affiliated Investments  $14,750,785   $(235,600)  $
-
   $7,397,502   $(10,320,353)  $11,592,334   $254,231   $
-
 

 

Name of Investment(1)(2)  Type of Investment  Fair Value at September 30, 2024   Purchases/
(Sales) of or
Advances/
(Distributions)		   Transfers In/(Out)
 of Controlled		   Unrealized Gain/(Loss)   Realized
Gain/(Loss)		   Fair Value at
June 30, 2025		   Earned Income   Fee/Other Income 
Controlled Investments                                
ECC Capital Corp.  Senior Secured First Lien Term Loan  $7,422,012   $
                   -
   $
                 -
   $
             -
   $
                   -
   $7,422,012   $538,943   $
             -
 
   Equity   4,872,000    
-
    
-
    1,596,000    
-
    6,468,000    
-
    161,611 
FlexFIN, LLC  Equity Interest   36,683,045    (438,043)   
-
    
-
    
-
    36,245,002    3,597,022    
-
 
NSG Captive, Inc.  Equity   101,000    49,154,076    
-
    (826,575)   
-
    48,428,501    
-
    391,271 
NVTN LLC  Senior Secured First Lien Delayed Draw Term Loan   5,500,000    4,700,000    
-
    
-
    
-
    10,200,000    575,494    
-
 
   Senior Secured First Lien Term Loan B   16,353,590    
-
    
-
    (1,662,214)   
-
    14,691,376    708,477    
-
 
Total Controlled Investments  $70,931,647   $53,416,033   $
-
   $(892,789)  $
-
   $123,454,891   $5,419,936   $552,882 
Name of Investment(1)(2)  Type of Investment  Fair Value at September 30, 2023   Purchases/
(Sales) of or
Advances/
(Distributions)		   Transfers In/(Out)
 of Affiliates		   Unrealized Gain/(Loss)   Realized
Gain/(Loss)		   Fair Value at
June 30, 2024		   Earned
Income		 
Affiliated Investments                            
1888 Industrial Services, LLC  Senior Secured First Lien Term Loan C  $751,479   $(1,096,561)  $(196,411)  $439,778   $101,715   $
-
   $48,327 
   Senior Secured First Lien Term Loan A   
-
    
-
    
-
    9,473,068    (9,473,068)   
-
    
-
 
   Revolving Credit Facility   4,632,177    (5,112,074)   
-
    
-
    479,897    
-
    158,674 
Black Angus Steakhouses, LLC  Senior Secured First Lien Delayed Draw Term Loan   875,749    
-
    
-
    
-
    
-
    875,749    
-
 
   Senior Secured First Lien Term Loan   1,459,249    
-
    
-
    (1,008,883)   
-
    450,366    
-
 
   Senior Secured First Lien Super Priority DDTL   1,920,960    
-
    
-
    
-
    
-
    1,920,960    
-
 
FST Holdings Parent, LLC  Equity   10,000,003    
-
    
-
    1,160,749    
-
    11,160,752    
-
 
Maritime Wireless Holdings LLC  Senior Secured First Lien Term Loan B   7,500,000    (7,373,166)   
-
    (126,834)   
-
    
-
    535,857 
   Equity   10,150,000    (11,900,000)   
-
    (5,150,000)   6,900,000    
-
    
-
 
Total Affiliated Investments     $37,289,617   $(25,481,801)  $(196,411)  $4,787,878   $(1,991,456)  $14,407,827   $742,858 

 

Name of Investment(1)(2)  Type of Investment  Fair Value at September 30, 2023   Purchases/
(Sales) of or
Advances/
(Distributions)		   Transfers In/(Out)
 of Controlled		   Unrealized Gain/(Loss)   Realized
Gain/(Loss)		   Fair Value at
June 30, 2024		   Earned Income 
Controlled Investments                            
ECC Capital Corp.  Senior Secured Promissory Note  $
-
   $10,422,012   $
-
   $
-
    
-
   $10,422,012   $482,173 
   Equity   
-
    4,251,084    
-
    (1,311,084)   
-
    2,940,000    
-
 
FlexFIN, LLC  Equity Interest   38,870,711    (4,162,202)   
-
    
-
    
-
    34,708,509    3,216,298 
Kemmerer Operations, LLC  Senior Secured First Lien Term Loan   3,383,877    5,769,816    (9,153,693)   
-
    
-
    
-
    268,831 
   Equity   9,133,052    (10,378,988)   
-
    (7,296,895)   8,542,831    
-
    
-
 
NSG Captive, Inc.  Equity   
-
    100,000    
-
    
-
    
-
    100,000    
-
 
NVTN LLC  Senior Secured First Lien Delayed Draw Term Loan   7,214,856    (1,693,577)   
-
    (21,279)   
-
    5,500,000    868,449 
   Senior Secured First Lien Term Loan B   5,037,547    
-
    
-
    11,874,210    
-
    16,911,757    214,286 
   Equity   
-
    11,900,000    
-
    (11,900,000)   
-
    
-
    
-
 
Total Controlled Investments     $63,640,043   $16,208,145   $(9,153,693)  $(8,655,048)  $8,542,831   $70,582,278   $5,050,037 

 

(1) The par amount and additional detail are shown in the Consolidated Schedules of Investments.

 

(2) Securities with a zero value at the beginning and end of the period, and those that had no transaction activity were excluded from the roll forward.

 

Purchases/(sales) of or advances to/(distributions) from Affiliated Investments and Controlled Investments represent the proceeds from sales and settlements of investments, purchases, originations and participations, investment increases due to PIK interest as well as net amortization of premium/(discount) on investments and are included in the purchases and sales presented on the Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024. Transfers in/(out) of Affiliated Investments and Controlled Investments represent the fair value for the month an investment became or was removed as an Affiliated Investment or a Controlled Investment. Income received from Affiliated Investments and Controlled Investments is included in total investment income on the Consolidated Statements of Operations for the three and nine months ended June 30, 2025 and 2024.

Unconsolidated Significant Subsidiaries

 

In accordance with the SEC’s Regulation S-X and GAAP, the Company evaluated and determined that it had one subsidiary, FlexFIN, LLC, for which the Company owned 50%, that is deemed to be a “significant subsidiary” as of June 30, 2025 for which summarized financial information is presented below (dollars in thousands):

 

Balance Sheet  June 30,
2025
(Unaudited)		   September 30,
2024
(Audited)		 
Total Assets  $51,239   $51,634 
Total Liabilities   14,325    15,206 

 

Income Statement  For the
Nine Months Ended
June 30,
2025
(Unaudited)		   For the Year Ended
September 30,
2024
(Audited)		 
Total Income  $4,838   $4,955 
Total Expenses   1,399    1,028 
Net Income  $3,439   $3,927