Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS (Tables)

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INVESTMENTS (Tables)
 3 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of June 30, 2024 and March 31, 2024, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of June 30, 2024:
Secured first lien debt
 $ 463,219  $ —  $ —  $ 463,219 
Secured second lien debt
 137,827  —  —  137,827 
Preferred equity
 212,591  —  —  212,591 
Common equity/equivalents
 85,501  — 

—  85,501 
Total Investments as of June 30, 2024
 $ 899,138  $ —  $ —  $ 899,138 
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of March 31, 2024:
Secured first lien debt
 $ 474,856  $ —  $ —  $ 474,856 
Secured second lien debt
 138,703  —  —  138,703 
Preferred equity
 213,480  —  —  213,480 
Common equity/equivalents
 93,465  —  18 
(A)
 93,447 
Total Investments as of March 31, 2024
 $ 920,504  $ —  $ 18  $ 920,486 
(A)Fair value was determined based on the closing market price of shares of Funko, Inc. (our units in Funko could be converted into common shares of Funko, Inc.) at the reporting date less a discount for lack of marketability, as our investment was subject to certain restrictions.
The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of June 30, 2024 and March 31, 2024, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:
Total Recurring Fair Value Measurements
Reported in Consolidated Statements
of Assets and Liabilities
Valued Using Level 3 Inputs
June 30, 2024 March 31, 2024
Non-Control/Non-Affiliate Investments
Secured first lien debt $ 313,758  $ 324,348 
Secured second lien debt 93,340  93,340 
Preferred equity 158,924  162,522 
Common equity/equivalents(A)
41,254  42,005 
Total Non-Control/Non-Affiliate Investments 607,276  622,215 
Affiliate Investments
Secured first lien debt 147,999  147,603 
Secured second lien debt 44,487  45,363 
Preferred equity 53,667  50,958 
Common equity/equivalents 44,247  51,442 
Total Affiliate Investments 290,400  295,366 
Control Investments
Secured first lien debt 1,462  2,905 
Secured second lien debt —  — 
Preferred equity —  — 
Common equity/equivalents —  — 
Total Control Investments 1,462  2,905 
Total investments at fair value using Level 3 inputs $ 899,138  $ 920,486 
(A)Excludes our investment in Funko as of March 31, 2024 with a fair value of $18 thousand, which was valued using Level 2 inputs.
Schedule of Fair Value Measurement Inputs and Valuation Techniques The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. The weighted-average calculations in the table below are based on the principal balances for all debt-related calculations and on the cost basis for all equity-related calculations for the particular input.
Quantitative Information about Level 3 Fair Value Measurements
Fair Value as of Valuation
Technique/
Methodology		 Unobservable
Input		 Range / Weighted-Average as of
June 30,
2024		 March 31,
2024		 June 30,
2024		 March 31,
2024
Secured first
lien debt		 $ 463,219  $ 474,856  TEV EBITDA multiple
4.1x – 8.3x /
6.3x
4.2x – 8.8x /
6.4x
EBITDA
$215 – $23,739 /
$10,446
$1,091 – $23,547 / $10,509
Revenue multiple
0.3x – 0.6x /
0.4x
0.3x – 0.6x /
0.4x
Revenue
$30,240 – $91,494 /
$75,374
$31,586 – $93,916 / $77,580
Secured second
lien debt		 112,827  113,703  TEV EBITDA multiple
5.0x – 7.3x /
 6.2x
5.1x – 15.0x /
7.0x
EBITDA
$5,980 – $23,050 /
$14,355
$5,648 – $23,003 / $14,192
25,000  25,000  Yield Analysis Discount Rate
13.8% – 13.8% / 13.8%
13.8% – 13.8% / 13.8%
Preferred
equity		 212,591  213,480  TEV EBITDA multiple
4.1x – 8.3x /
6.0x
4.2x – 8.8x /
6.1x
EBITDA
$215 – $23,739 /
$9,564
$1,091 – $23,547 / $9,502
Revenue multiple
0.3x – 0.6x /
0.4x
0.3x – 0.6x /
0.4x
Revenue
$30,240 – $91,494 /
$73,002
$31,586 – $93,916 / $75,099
Common equity/
equivalents(A)
85,501  93,447  TEV EBITDA multiple
5.0x – 7.3x /
6.2x
5.0x – 15.0x /
6.4x
EBITDA
$825 – $64,876 /
$23,827
$1,154 – $63,269 / $23,615
Total $ 899,138  $ 920,486 
(A)Fair value as of March 31, 2024 excludes our investment in Funko with a fair value of $18 thousand, which was valued using Level 2 inputs.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three months ended June 30, 2024 and 2023 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

 Secured
First Lien
Debt		 Secured
Second Lien
Debt
Preferred
Equity
 Common
Equity/
Equivalents		 Total
Three Months ended June 30, 2024:
Fair value as of March 31, 2024
 $ 474,856  $ 138,703  $ 213,480  $ 93,447  $ 920,486 
Total gain (loss):
Net realized gain (loss)(A)
—  —  —  —  — 
Net unrealized appreciation (depreciation)(B)
(9,235) (876) (889) (7,946) (18,946)
Reversal of previously recorded (appreciation) depreciation upon realization(B)
—  —  —  —  — 
New investments, repayments and settlements(C):
Issuances / originations
 598  —  —  —  598 
Settlements / repayments
 (3,000) —  —  —  (3,000)
Sales
 —  —  —  —  — 
Transfers
 —  —  —  —  — 
Fair value as of June 30, 2024
 $ 463,219  $ 137,827  $ 212,591  $ 85,501  $ 899,138 
Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
 Total
Three Months ended June 30, 2023:
Fair value as of March 31, 2023
 $ 437,517  $ 75,734  $ 222,585  $ 17,680  $ 753,516 
Total gain (loss):
Net realized gain (loss)(A)
—  —  273  882  1,155 
Net unrealized appreciation (depreciation)(B)
(2) 4,060  (11,602) 6,813  (731)
Reversal of previously recorded (appreciation) depreciation upon realization(B)
—  —  —  (93) (93)
New investments, repayments and settlements(C):
Issuances / originations
 14,700  25,000  3,275  5,000  47,975 
Settlements / repayments
 —  —  —  —  — 
Sales(D)
—  —  (273) (1,502) (1,775)
Transfers
 —  —  —  —  — 
Fair value as of June 30, 2023
 $ 452,215  $ 104,794  $ 214,258  $ 28,780  $ 800,047 
Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2024 and 2023.
(B)Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2024 and 2023.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, the amortization of discounts and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs, and other cost-basis adjustments.
(D)The three months ended June 30, 2023 includes $0.3 million of proceeds from the recapitalization of Old World Christmas, Inc. ("Old World").
Schedule of Investment Holdings
The following table summarizes our investments by security type as of June 30, 2024 and March 31, 2024:
June 30, 2024 March 31, 2024
Cost Fair Value Cost Fair Value
Secured first lien debt $ 511,022  60.0  % $ 463,219  51.5  % $ 513,425  60.1  % $ 474,856  51.6  %
Secured second lien debt 144,958  17.0  % 137,827  15.3  % 144,958  16.9  % 138,703  15.0  %
Total debt 655,980  77.0  % 601,046  66.8  % 658,383  77.0  % 613,559  66.6  %
Preferred equity 145,070  17.0  % 212,591  23.7  % 145,070  17.0  % 213,480  23.2  %
Common equity/equivalents 50,816  6.0  % 85,501  9.5  % 50,837  6.0  % 93,465  10.2  %
Total equity/equivalents 195,886  23.0  % 298,092  33.2  % 195,907  23.0  % 306,945  33.4  %
Total investments
 $ 851,866  100.0  % $ 899,138  100.0  % $ 854,290  100.0  % $ 920,504  100.0  %
Investments at fair value consisted of the following industry classifications as of June 30, 2024 and March 31, 2024:
June 30, 2024 March 31, 2024
Fair Value Percentage of
Total Investments		 Fair Value Percentage of Total Investments
Diversified/Conglomerate Services $ 239,139  26.6  % $ 264,535  28.7  %
Home and Office Furnishings, Housewares, and Durable Consumer Products 165,201  18.5  % 160,038  17.3  %
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) 92,527  10.3  % 92,781  10.1  %
Hotels, Motels, Inns, and Gaming 73,646  8.2  % 77,366  8.4  %
Buildings and Real Estate 61,504  6.8  % 60,431  6.6  %
Oil and Gas 52,818  5.9  % 51,171  5.6  %
Healthcare, Education, and Childcare 49,767  5.5  % 49,638  5.4  %
Leisure, Amusement, Motion Pictures, and Entertainment 39,814  4.4  % 39,350  4.3  %
Mining, Steel, Iron and Non-Precious Metals 34,504  3.8  % 30,537  3.3  %
Aerospace and Defense 29,067  3.2  % 29,064  3.2  %
Chemicals, Plastics, and Rubber 19,487  2.2  % 20,363  2.2  %
Printing and Publishing 14,117  1.6  % 14,238  1.5  %
Cargo Transport 13,000  1.4  % 13,500  1.5  %
Telecommunications 9,197  1.0  % 9,002  1.0  %
Other < 2.0% 5,350  0.6  % 8,490  0.9  %
Total investments $ 899,138  100.0  % $ 920,504  100.0  %
Investments at fair value were included in the following geographic regions of the U.S. as of June 30, 2024 and March 31, 2024:
June 30, 2024 March 31, 2024
Location Fair Value Percentage of
Total Investments		 Fair Value Percentage of
Total Investments
South
 $ 337,009  37.5  % $ 346,838  37.7  %
West
 221,102  24.6  % 223,871  24.3  %
Northeast
 200,803  22.3  % 207,870  22.6  %
Midwest
 140,224  15.6  % 141,925  15.4  %
Total investments $ 899,138  100.0  % $ 920,504  100.0  %
Schedule of Investments Classified by Contractual Maturity Date
The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of June 30, 2024:

Amount
For the remaining nine months ending March 31, 2025
 $ 72,270 
For the fiscal years ending March 31:
2026 206,310 
2027 185,775 
2028 66,231 
2029 100,394 
Thereafter 25,000 
Total contractual repayments $ 655,980 
Investments in equity securities 195,886 
Total cost basis of investments held as of June 30, 2024:
 $ 851,866