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Investments (Tables)
 3 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment Purchases Sales And Principal Payments

Investment purchases, sales and principal payments/paydowns are summarized below for the three months ended September 30, 2024 and September 30, 2023, respectively. These purchase and sale amounts exclude derivative instruments as well as non-cash restructurings.

 

 

For the three months ended
September 30,

 

2024

 

2023

Investment purchases, at cost (including PIK interest)

 

$

15,169,017

 

$

16,535,289

Investment sales and repayments

 

 

14,256,947

 

 

10,317,357
Schedule of Investments

The composition of the Company’s investments as of September 30, 2024, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type

 

Investments at
Amortized Cost

 

 

Percentage of
Total Portfolio

 

Investments at
Fair Value

 

 

Percentage of
Total Portfolio

Senior Secured First Lien Debt Investments

 

$

163,121,808

 

 

80.87

%

 

$

156,818,831

 

 

82.47

%

Equity, Warrants and Other Investments

 

 

38,582,670

 

 

19.13

 

 

 

33,323,328

 

 

17.53

 

Total

 

$

201,704,478

 

 

100.00

%

 

$

190,142,159

 

 

100.00

%

The composition of the Company’s investments as of June 30, 2024, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type

 

Investments at
    Amortized Cost

 

 

Percentage of
Total Portfolio

 

Investments at
Fair Value

 

 

Percentage of
Total Portfolio

Senior Secured First Lien Debt Investments

 

$

166,099,349

 

 

81.23

%

 

$

156,927,316

 

 

85.02

%

Equity, Warrants and Other Investments

 

 

38,369,691

 

 

18.77

 

 

 

27,642,214

 

 

14.98

 

Total

 

$

204,469,040

 

 

100.00

%

 

$

184,569,530

 

 

100.00

%

 
Schedule of Portfolio Composition by Industry Grouping at Fair Value

The Company uses Global Industry Classification Standard (“GICS”) codes to identify the industry groupings in its portfolio. The following table shows the portfolio composition by industry grouping at fair value at September 30, 2024:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Professional Services

 

$

27,726,120

 

14.58

%

Containers & Packaging

 

 

22,265,342

 

11.71

 

Commercial Services & Supplies

 

 

19,659,994

 

10.34

 

Trading Companies & Distributors

 

 

16,686,367

 

8.78

 

Insurance

 

 

14,452,025

 

7.60

 

Specialty Retail

 

 

13,687,101

 

7.20

 

IT Services

 

 

9,584,028

 

5.04

 

Food Products

 

 

8,838,375

 

4.65

 

Household Durables

 

 

7,644,966

 

4.02

 

Diversified Consumer Services

 

 

7,176,260

 

3.77

 

Consumer Staples Distribution & Retail

 

 

5,612,505

 

2.95

 

Health Care Providers & Services

 

 

5,400,000

 

2.84

 

Entertainment

 

 

5,206,106

 

2.74

 

Software

 

 

4,988,490

 

2.62

 

Consumer Services

 

 

4,935,816

 

2.60

 

IT Consulting & Other Services

 

 

3,905,797

 

2.05

 

Construction & Engineering

 

 

3,633,535

 

1.91

 

Automobile Components

 

 

3,421,133

 

1.80

 

Hotels, Restaurants & Leisure

 

 

2,962,612

 

1.56

 

Electronic Equipment, Instruments & Components

 

 

2,355,587

 

1.24

 

Total

 

$

190,142,159

 

100.00

%

The following table shows the portfolio composition by industry grouping at fair value at June 30, 2024:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Commercial Services & Supplies

 

$

24,919,271

 

13.50

%

Professional Services

 

 

20,702,433

 

11.22

 

Trading Companies & Distributors

 

 

16,814,468

 

9.11

 

Containers & Packaging

 

 

13,534,625

 

7.34

 

Food Products

 

 

8,842,781

 

4.79

 

Entertainment

 

 

8,811,199

 

4.77

 

IT Services

 

 

8,681,364

 

4.70

 

Household Durables

 

 

7,625,716

 

4.13

 

Insurance

 

 

7,406,155

 

4.01

 

Chemicals

 

 

7,206,650

 

3.90

 

Diversified Consumer Services

 

 

7,194,708

 

3.90

 

Specialty Retail

 

 

6,665,397

 

3.61

 

Automotive Retail

 

 

5,678,135

 

3.08

 

Health Care Providers & Services

 

 

5,400,000

 

2.93

 

Consumer Staples Distribution & Retail

 

 

5,341,899

 

2.89

 

Software

 

 

5,044,158

 

2.73

 

Consumer Services

 

 

4,923,445

 

2.67

 

Paper Packaging

 

 

4,914,784

 

2.66

 

Construction & Engineering

 

 

3,662,626

 

1.99

 

Human Resources & Employment Services

 

 

2,985,000

 

1.62

 

Hotels, Restaurants & Leisure

 

 

2,947,612

 

1.60

 

Electronic Equipment, Instruments & Components

 

 

2,645,950

 

1.43

 

Automobile Components

 

 

2,621,154

 

1.42

 

Total

 

$

184,569,530

 

100.00

%
Schedule of Portfolio Composition by Geographic Grouping at Fair Value

The following table shows the portfolio composition by geographic grouping at fair value at September 30, 2024:

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

63,387,312

 

33.34

%

U.S. West

 

 

50,938,244

 

26.79

 

U.S. Southeast

 

 

25,895,888

 

13.62

 

U.S. Midwest

 

 

25,648,537

 

13.49

 

U.S. Southwest

 

 

14,347,872

 

7.54

 

U.S. Mid-Atlantic

 

 

6,765,446

 

3.56

 

International

 

 

3,158,860

 

1.66

 

Total

 

$

190,142,159

 

100.00

%

 

The following table shows the portfolio composition by geographic grouping at fair value at June 30, 2024:

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

58,910,596

 

31.92

%

U.S. West

 

 

56,404,520

 

30.56

 

U.S. Southeast

 

 

31,435,714

 

17.03

 

U.S. Midwest

 

 

24,434,485

 

13.24

 

U.S. Mid-Atlantic

 

 

6,717,548

 

3.64

 

U.S. Southwest

 

 

3,416,612

 

1.85

 

International

 

 

3,250,055

 

1.76

 

Total

 

$

184,569,530

 

100.00

%
Schedule of Fair Value Measurements of Assets

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets measured at fair value as of September 30, 2024:

 

 

Level 1

 

Level 2

 

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

 

$

156,818,831

 

$

156,818,831

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

 

33,323,328

 

 

33,323,328

Total Investments

 

$

—

 

$

—

 

 

$

190,142,159

 

$

190,142,159

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets measured at fair value as of June 30, 2024:

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

$

156,927,316

 

$

156,927,316

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

27,642,214

 

 

27,642,214

Total Investments

 

$

—

 

$

—

 

$

184,569,530

 

$

184,569,530
Reconciliation of Investments Measured at Fair value on a recurring basis using 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 September 30, 2024:

 

 

Senior Secured
First Lien
Debt Investments

 

Senior Secured
Second Lien
Debt Investments

 

Unsecured
Debt
Investments

 

Equity, Warrants
and Other
Investments

 

Total
Investments

Fair value at June 30, 2024

 

$

156,927,316

 

$

—

 

$

—

 

$

27,642,214

 

$

184,569,530

Purchases (including PIK interest)

 

 

14,956,037

 

 

—

 

 

—

 

 

212,980

 

 

15,169,017

Sales and repayments

 

 

(14,256,947)

 

 

—

 

 

—

 

 

—

 

 

(14,256,947)

Amortization

 

 

379,873

 

 

—

 

 

—

 

 

—

 

 

379,873

Net realized gains (losses)

 

 

(4,056,505)

 

 

—

 

 

—

 

 

—

 

 

(4,056,505)

Transfers in

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers out

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Net change in unrealized appreciation (depreciation)

 

 

2,869,057

 

 

—

 

 

—

 

 

5,468,134

 

 

8,337,191

Fair value at September 30, 2024

 

$

156,818,831

 

$

—

 

$

—

 

$

33,323,328

 

$

190,142,159

Change in unrealized appreciation (depreciation) relating to assets still held as of September 30, 2024

 

$

2,869,062

 

$

—

 

$

—

 

$

5,468,134

 

$

8,337,196

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended September 30, 2023:

 

Senior Secured
First Lien
Debt Investments

 

Senior Secured
Second Lien
Debt Investments

 

Unsecured
Debt
Investments

 

Equity, Warrants
and Other
Investments

 

Total
Investments

Fair value at June 30, 2023

 

$

196,370,955

 

$

—

 

$

—

 

$

23,740,374

 

$

220,111,329

Purchases (including PIK interest)

 

 

16,347,037

 

 

—

 

 

—

 

 

188,252

 

 

16,535,289

Sales and repayments

 

 

(10,317,357)

 

 

—

 

 

—

 

 

—

 

 

(10,317,357)

Amortization

 

 

387,051

 

 

—

 

 

—

 

 

—

 

 

387,051

Net realized gains (losses)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers in

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers out

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Net change in unrealized (depreciation) appreciation

 

 

(2,468,110)

 

 

—

 

 

—

 

 

(843,919)

 

 

(3,312,029)

Fair value at September 30, 2023

 

$

200,319,576

 

$

—

 

$

—

 

$

23,084,707

 

$

223,404,283

Change in unrealized appreciation (depreciation) relating to assets still held as of September 30, 2023

 

$

(2,468,109)

 

$

—

 

$

—

 

$

(843,919)

 

$

(3,312,028)
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements.

 

 

Fair Value as of September 30, 2024

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

Range

Senior Secured First Lien Debt Investments

 

$

110,044,371

 

 Income Approach

 

 Market Yields

 

11.8%

 

 

8.8%-16.3%

Senior Secured First Lien Debt Investments

 

 

15,794,000

 

 Market Comparable Approach

 

 EBITDA Multiple

 

9.7x

 

 

3.8x-14.1x

Senior Secured First Lien Debt Investments

 

 

—

 

 Market Comparable Approach

 

 Revenue Multiple

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

23,620,291

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

7,360,169

 

 Recovery Analysis

 

 Recovery Amount*

 

N/A

 

 

N/A

Equity, Warrants, and Other Investments

 

 

6,473,600

 

 Income Approach

 

 Market Yields

 

15.8%

 

 

15.8%

Equity, Warrants, and Other Investments

 

 

26,849,728

 

 Market Comparable Approach

 

 EBITDA multiple

 

10.8x

 

 

3.8x-19.8x

Equity, Warrants, and Other Investments

 

 

—

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

 

* Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values.

 

 

Fair Value as of
June 30, 2024

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

 

Range

Senior Secured First Lien Debt Investments

 

$

118,225,491

 

Income Approach

 

Market Yields

 

13.8%

 

 

10.3% - 22.8%

Senior Secured First Lien Debt Investments

 

 

10,365,103

 

Market Comparable Approach

 

EBITDA Multiple

 

9.3x

 

 

4.5x – 13.3x

Senior Secured First Lien Debt Investments

 

 

—

 

Market Comparable Approach

 

Revenue Multiple

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

15,863,655

 

Recent Transaction

 

Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

12,473,067

 

Recovery Analysis

 

Recovery Amount

 

N/A

 

 

N/A

Equity, Warrants and Other Investments

 

 

6,126,488

 

Income Approach

 

Market Yields

 

16.5%

 

 

16.5%

Equity, Warrants and Other Investments

 

 

21,515,726

 

Market Comparable Approach

 

EBITDA multiple

 

10.3x

 

 

4.5x – 18.2x

Equity, Warrants and Other Investments

 

 

—

 

Recent Transaction

 

Recent Transaction

 

N/A

 

 

N/A