GLADSTONE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(Unaudited)

	December 31, 2005			September 30, 2005

ASSETS
Investments at fair value (Cost 12/31/2005:$192,181,728; 9/30/2005: $205,375,554)	$	192,625,362		$	200,846,763
Cash and cash equivalents	15,393,252			503,776
Interest receivable – investments in debt securities	958,365			1,406,212
Interest receivable – officers	17,150			27,067
Due from custodian	2,413,120			2,624,074
Due from affiliate	300,638			—
Deferred financing fees	43,750			70,000
Prepaid assets	197,125			177,848
Other assets	157,381			137,354
TOTAL ASSETS	$	212,106,143		$	205,793,094

LIABILITIES
Accounts payable	$	10,784		$	21,893
Interest payable	189,390			183,707
Fees due to affiliate	210,109			391,322
Borrowings under lines of credit	55,723,723			53,034,064
Accrued expenses and deferred liabilities	352,962			350,665
Funds held in escrow	202,164			200,760
Total Liabilities	56,689,132			54,182,411
Net Assets	$	155,417,011		$	151,610,683

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 50,000,000 shares authorized and 11,308,510 and 11,303,510 shares issued and outstanding, respectively	$	11,309		$	11,304
Capital in excess of par value	164,740,025			164,610,873
Notes receivable – officers	(8,722,687		)	(8,745,781		)
Net unrealized appreciation/(depreciation) on investments	443,631			(4,528,791		)
Unrealized depreciation on derivative	(254,639		)	(253,747		)
Realized (loss)/gain on sale of investments	(1,138,345		)	42,250
Distributions less than net investment income	337,717			474,575
Total Net Assets	$	155,417,011		$	151,610,683
Net Assets Per Share	$	13.74		$	13.41

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2005

(UNAUDITED)

Company (1)	Industry	Investment (2)	Cost		Fair Value

Advanced Homecare Management, Inc.	Home health nursing services	Senior Subordinated Term Debt(6)(7) (13.7%, Due 12/2010)	$	7,500,000	$	7,500,000

Allied Extruders, Inc.	Polyethylene film manufacturer	Senior Term Debt (3)(6)	3,900,000		3,909,750
		(12.3%, Due 7/2009)

Badanco Acquisition Corp.	Manufacturing-luggage	Senior Term Debt (6)	6,247,519		6,247,519
		(9.8%, Due 2/2010)
		Senior Term Debt (3)(6)(12)	8,650,000		8,879,225
		(12.8%, Due 2/2010)

Benetech, Inc.	Dust management systems	Senior Term Debt (6)	2,600,000		2,622,750
	for the coal and electric utility	(9.3%, Due 5/2009)
	industries	Senior Term Debt (3) (6)	3,168,750		3,212,320
		(12.3%, Due 5/2009)

Consolidated Bedding, Inc.	Manufacturing-mattresses	Senior Subordinated Term Debt (6)	2,890,155		2,738,895
		(13.0%, Due 3/2009)

Country Road	Service-telecommunications	Senior Subordinated Term Debt	5,957,355		6,060,000
Communications LLC		(6)(7)
Country Road Management, Inc.		(11.6%, Due 7/2013)

Coyne International	Industrial services	Senior Term Debt (3) (5) (6)	6,370,574		6,306,869
Enterprises		(13.0%, PIK 2%, Due 7/2007)

Defiance Stamping	Manufacturing-trucking parts	Senior Term Debt (3)(6)(13)	6,325,000		6,358,649
Company		(12.3%, Due 4/2010)

Doe & Ingalls Management	Distributor-specialty chemicals	Senior Term Debt (6)	5,500,000		5,506,875
LLC		(8.8%, Due 11/2010)
Doe & Ingalls of North		Senior Term Debt (3)(6)	4,500,000		4,500,000
Carolina Operating LLC		(12.3%, Due 11/2010)
Doe & Ingalls of Florida
Operating LLC
Doe & Ingalls of Virginia
Operating LLC

Finn Corporation	Manufacturing-landscape	Common Stock Warrants	37,000		694,057
	equipment

Gammill, Inc.	Designer and assembler of	Senior Term Debt (6)	3,389,696		3,385,459
	quilting machines and	(9.5%, Due 12/2008)
	accessories	Senior Term Debt (3) (6)	4,631,250		4,602,305
		(12.0%, Due 12/2008)

Global Materials	Manufacturing-steel wool	Senior Term Debt (3) (6)	5,450,000		5,422,750
Technologies, Inc.	products and metal fibers	(13.3%, Due 11/2009)

Infor Global Solutions Ltd.	Enterprise application	Senior Subordinated Term Debt (7)	6,828,000		6,947,500
	solutions	(11.8%, Due 5/2012)

John Henry Holdings, Inc.	Manufacturing-packaging	Senior Subordinated Term Debt(6)(7)	7,069,330		6,993,500
	products	(11.5%, Due 6/2011)

Company (1)	Industry	Investment (2)	Cost	Fair Value

Mistras Holdings Corp.	Nondestructive testing	Senior Term Debt (3) (6)	9,666,666	9,437,083
	instruments, systems	(10.5%, Due 8/2008)
	and services	Senior Term Debt (3) (6)	5,333,334	5,200,001
		(12.5%, Due 8/2008)

Northern Contours	Manufacturing-veneer and	Senior Subordinated Term Debt (6)	7,000,000	7,000,000
Northern Contours	laminate components	(11.3%, Due 5/2010)
of Kentucky, Inc.
Norcon Holding LLC
Norcon Lewis LLC

Penn Engineering &	Manufacturing-fractional	Senior Subordinated Term Debt (7)	5,009,167	5,050,000
Manufacturing Corp.	horsepower engines	(10.5%, Due 5/2012)
PN Merger Sub Inc.
PEM Holding Co.

Polar Corporation	Manufacturing-trailer parts	Senior Subordinated Term Debt(6)(7)	10,012,391	10,030,346
		(10.9%, Due 6/2010)

Puerto Rico Cable	Service-telecommunications	Senior Subordinated Term Debt(6)(7)	7,075,780	7,105,000
Acquisition Company, Inc.		(10.8%, Due 1/2012)

Santana Plastics	Manufacturing-polyethylene	Senior Term Debt (3)(6)	5,925,000	5,925,000
	bathroom partitions	(12.3%, Due 11/2009)
		Senior Term Debt (4)(6)	1,925,625	1,925,625
		(13.0%, Due 11/2009)

SCPH Holdings, Inc.	Manufacturing-underwater	Credit Facility (9)	—	—
Sea Con Phoenix, Inc.	and harsh environment	(8.8%, Due 3/2006)
Phoenix Optix, Inc.	components	Senior Term Debt (6)	3,150,000	3,150,000
		(9.3%, Due 2/2010)
		Senior Term Debt (3)(6)	3,000,000	3,000,000
		(12.3%, Due 2/2010)

SCS Acquisition Corp.	Service-chemically treated	Credit Facility (10)	—	—
	equipment distribution	Senior Term Debt (8)(11)	6,625,000	6,625,000
		(8.4%, Due 12/2011)
		Senior Term Debt (3)(8)(11)	6,625,000	6,625,000
		(10.4%, Due 12/2011)

Survey Sampling	Service-telecommunications	Senior Subordinated Term Debt(6)(7)	2,263,568	2,264,063
		(11.8%, Due 5/2012)

Tech Lighting LLC	Manufacturing-low voltage	Senior Subordinated Term Debt(6)(7)	9,011,837	9,045,000
	lighting systems	(11.5%, Due 10/2010)

Visual Edge Technology, Inc.	Service-office supplies	Senior Subordinated Term Debt (6)	5,000,000	5,000,000
Graphic Enterprises, Inc.	distribution	(12.3%, Due 8/2011)
Copeco, Inc.

Company (1)	Industry	Investment (2)	Cost		Fair Value

Woven Electronics	Custom electrical cable	Senior Term Debt (4) (6) (14)	8,344,999		8,675,962
Corporation	assemblies	(11.5%, Due 3/2009)

Xspedius Communications	Service-telecommunications	Senior Subordinated Term Debt (6)	5,198,732		4,678,859
LLC		(14.8%, Due 3/2010)

Total:			$	192,181,728	$	192,625,362

(1) We do not “Control,” and are not an “Affiliate” of, any of our portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, we would “Control” a portfolio company if we owned 25% or more of its voting securities and would be an “Affiliate” of a portfolio company if we owned 5% or more of its voting securities.

(2) Percentage represents interest rates in effect at December 31, 2005 and due date represents the contractual maturity date.

(3) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(4) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt, however the debt is junior to another Last Out Tranche.

(5) Has some paid in kind (PIK) interest. Refer to Note 9 “Payment in Kind Interest” hereto and Note 2 “Summary of Significant Accounting Policies” of the Company’s Form 10-K for the fiscal year ended September 30, 2005.

(6) Fair value was based on valuation prepared and provided by Standard & Poor’s Loan Evaluation Services.

(7) Marketable securities, such as syndicated loans, are valued based on the indicative bid price, as of December 30, 2005, from the respective originating syndication agent’s trading desk.

(8) Investment was valued at cost due to recent acquisition.

(9) Availability under the credit facility totals $500,000. There were no borrowings outstanding at December 31, 2005.

(10) Availability under the credit facility totals $2,500,000. There were no borrowings outstanding at December 31, 2005.

(11) Availability under the debt facility totals $7,500,000. The outstanding balance of the debt facility was $6,625,000 at December 31, 2005.

(12) Includes a success fee with a $147,725 fair value and no cost basis.

(13) Includes a success fee with a $33,649 fair value and no cost basis.

(14) Includes a success fee with a $247,513 fair value and no cost basis.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

AS OF SEPTEMBER 30, 2005

Company (1)	Industry	Investment (2)	Cost		Fair Value

Advanced Homecare Management, Inc.	Home health nursing services	Senior Subordinated Term Debt (6) (12.6%, Due 12/2010)	$	7,500,000	$	7,500,000

Allied Extruders, Inc.	Polyethylene film manufacturer	Senior Term Debt (3)	3,950,000		3,964,813
		(12.3%, Due 7/2009)

ARI Holdings, Inc. (11) (12)	Manufacturing-auto parts	Senior Term Debt	3,933,939		2,880,000
		(12.8%, Due 2/2008)

Badanco Acquisition Corp.	Manufacturing-luggage	Senior Term Debt (6)	6,615,019		6,615,019
		(9.2%, Due 2/2010)
		Senior Term Debt (3)(6)	8,650,000		8,650,000
		(12.2%, Due 2/2010)

Benetech, Inc.	Dust management systems for the	Senior Term Debt (6)	2,762,500		2,783,219
	coal and electric utility industries	(8.7%, Due 5/2009)
		Senior Term Debt (3) (6)	3,209,375		3,249,492
		(11.7%, Due 5/2009)

Consolidated Bedding, Inc.	Manufacturing-mattresses	Senior Subordinated Term Debt (6)	2,927,382		2,898,968
		(13.0%, Due 3/2009)

Country Road	Service-telecommunications	Senior Subordinated Term Debt	5,955,942		6,060,000
Communications LLC		(11.6%, Due 7/2013)
Country Road Management, Inc.

Coyne International	Industrial services	Senior Term Debt (3) (5) (6)	6,375,052		6,367,083
Enterprises		(13.0%, PIK 2%, Due 7/2007)

Defiance Stamping	Manufacturing-trucking parts	Senior Term Debt (3)	6,325,000		6,332,906
Company		(11.7%, Due 4/2010)

Finn Corporation	Manufacturing-landscape equipment	Senior Subordinated Term Debt (6)	10,500,000		7,350,000
		(13.0%, Due 2/2006)
		Common Stock Warrants	37,000		682,114

Gammill, Inc.	Designer and assembler of quilting	Senior Term Debt (6)	3,771,427		3,771,427
	machines and accessories	(9.5%, Due 12/2008)
		Senior Term Debt (3) (6)	4,690,625		4,667,172
		(12.0%, Due 12/2008)

Global Materials	Manufacturing-steel wool	Senior Term Debt (3) (6)	5,500,000		5,486,250
Technologies, Inc.	products and metal fibers	(13.0%, Due 11/2009)

Infor Global Solutions Ltd.	Enterprise application solutions	Senior Subordinated Term Debt (7)	6,821,250		7,070,000
		(11.0%, Due 4/2012)

John Henry Holdings, Inc.	Manufacturing-packaging	Senior Subordinated Term Debt(6)	7,067,923		7,064,500
	products	(11.0%, Due 6/2011)

Company (1)	Industry	Investment (2)	Cost	Fair Value

Marcal Paper Mills, Inc. (12)	Manufacturing-paper products	Senior Subordinated Term Debt (6)	6,275,000	6,149,500
		(13.0%, Due 12/2006)
		First Mortgage Loan (5)	9,277,877	9,277,877
		(16%, PIK 1%, Due 12/2006)

Mistras Holdings Corp.	Nondestructive testing	Senior Term Debt (3) (6)	9,666,666	9,461,249
	instruments, systems	(10.5%, Due 8/2008)
	and services	Senior Term Debt (3) (6)	4,833,334	4,724,584
		(12.5%, Due 8/2008)
		Senior Term Debt (3) (6)	1,000,000	982,500
		(13.5%, Due 8/2008)

Northern Contours	Manufacturing-veneer and	Senior Subordinated Term Debt (8)	7,000,000	7,000,000
Northern Contours	laminate components	(10.7%, Due 5/2010)
of Kentucky, Inc.
Norcon Holding LLC
Norcon Lewis LLC

Penn Engineering &	Manufacturing-fractional	Senior Subordinated Term Debt (8)	5,009,524	5,050,000
Manufacturing Corp.	horsepower engines	(10.0%, Due 5/2012)
PN Merger Sub Inc.
PEM Holding Co.

Polar Corporation	Manufacturing-trailer parts	Senior Subordinated Term Debt (6)	8,609,566	8,627,500
		(10.3%, Due 6/2010)

Puerto Rico Cable	Service-telecommunications	Senior Subordinated Term Debt	5,050,182	5,075,000
Acquisition Company, Inc.		(10.3%, Due 1/2012)

Regency Gas Services LLC	Midstream gas gathering and	Senior Subordinated Term Debt (7)	5,029,188	5,037,500
	processing	(9.9%, Due 12/2010)

Santana Plastics	Manufacturing-polyethylene	Senior Term Debt (3)(6)	6,000,000	6,007,500
	bathroom partitions	(11.7%, Due 11/2009)
		Senior Term Debt (4)(6)	1,950,000	1,952,438
		(13.0%, Due 11/2009)

SCPH Holdings, Inc.	Manufacturing-underwater and	Credit Facility (9)	—	—
Sea Con Phoenix, Inc.	harsh environment components	(8.0%, Due 3/2006)
Phoenix Optix, Inc.		Senior Term Debt (3)(6)	3,237,500	3,241,547
		(8.7%, Due 2/2010)
		Senior Term Debt (6)	3,000,000	3,003,750
		(12.0%, Due 2/2010)

Survey Sampling	Service-telecommunications	Senior Subordinated Term Debt (6)	4,514,105	4,539,375
		(11.0%, Due 5/2012)

Tech Lighting LLC	Manufacturing-low voltage	Senior Subordinated Term Debt (6)	9,012,452	9,067,500
	lighting systems	(10.4%, Due 10/2010)

Visual Edge Technology, Inc.	Service-office supplies distribution	Senior Subordinated Term Debt	5,000,000	5,000,000
Graphic Enterprises, Inc.		(11.7%, Due 8/2011)
Copeco, Inc.

Company (1)	Industry	Investment (2)	Cost		Fair Value

Woven Electronics	Custom electrical cable	Senior Term Debt (4) (6) (10)	8,344,999		8,776,435
Corporation	assemblies	(11.5%, Due 3/2009)

Xspedius Communications	Service-telecommunications	Senior Subordinated Term Debt (6)	5,972,727		4,479,545
LLC		(14.3%, Due 3/2010)

Total:			$	205,375,554	$	200,846,763

(2) Percentage represents interest rates in effect at September 30, 2005 and due date represents the contractual maturity date.

(3) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(5) Has some paid in kind (PIK) interest. Refer to Note 2 “Summary of Significant Accounting Policies” of the Company’s Form 10-K for the fiscal year ended September 30, 2005.

(6) Fair value was based on valuation prepared and provided by Standard & Poor’s Loan Evaluation Services.

(7) Marketable securities, such as syndicated loans, are valued based on the indicative bid price, as of September 30, 2005, from the respective originating syndication agent’s trading desk.

(8) Investment was valued at cost due to recent acquisition.

(9) Availability under the credit facility totals $500,000. There were no borrowings outstanding at September 30, 2005.

(10) Includes a success fee with a $347,986 fair value and no cost basis.

(11) Non-income producing at September 30, 2005.

(12) Subsequent to September 30, 2005, the entire investment in the portfolio company was sold at the fair value reflected herein.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended December 31, 2005			Three Months Ended December 31, 2004

INVESTMENT INCOME
Interest income – investments	$	5,847,107		$	5,707,343
Interest income – cash and cash equivalents	8,912			16,340
Interest income – notes receivable from employees	107,093			114,718
Prepayment fees and other income	67,207			240,000
Total investment income	6,030,319			6,078,401

EXPENSES
Loan servicing (Refer to Note 12)	715,415			530,952
Management fee (Refer to Notes 12 and 15)	268,701			327,302
Professional fees	122,466			238,722
Amortization of deferred financing fees	26,250			91,912
Interest expense	652,078			171,730
Stockholder related costs	128,935			71,769
Directors fees	24,000			27,000
Insurance expense	50,777			46,272
Stock option compensation	43,257			—
General and administrative exepnses	55,789			43,160
Expenses before credit from Gladstone Management	2,087,668			1,548,819
Credit to management fee for fees collected by Gladstone Management
(Refer to Note 15)	(550,000		)	(286,500		)
Total expenses net of credit to management fee	1,537,668			1,262,319

NET INVESTMENT INCOME BEFORE INCOME TAXES	4,492,651			4,816,082
Income tax expense	50,237			138,678
NET INVESTMENT INCOME	4,442,414			4,677,404

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Realized (loss)/gain on sale of investments	(1,180,595		)	9,750
Unrealized depreciation on derivative	(892		)	(24,811		)
Net unrealized appreciation on investments	4,972,422			282,605
Net gain on investments	3,790,935			267,544

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	8,233,349		$	4,944,948

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:
Basic	$	0.73		$	0.44
Diluted	$	0.71		$	0.43

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic	11,306,510			11,278,510
Diluted	11,573,620			11,615,796

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(UNAUDITED)

	Three Months Ended December 31,
	2005			2004
Operations:
Net investment income	$	4,442,414		$	4,677,404
Net realized (loss)/gain on sale of investments	(1,180,595		)	9,750
Unrealized depreciation on derivatives	(892		)	(24,811		)
Net unrealized appreciation on investments	4,972,422			282,605
Net increase in net assets from operations	8,233,349			4,944,948

Capital transactions:
Distributions to stockholders	(4,579,272		)	(4,060,263		)
Stock option compensation	43,257			—
Issuance of common stock under stock option plan	85,900			—
Repayment of principal on employee notes	23,094			150,000
Shelf offering costs	—			(111,233		)
Decrease in net assets from capital share transactions	(4,427,021		)	(4,021,496		)

Total increase in net assets	3,806,328			923,452
Net assets at beginning of year	151,610,683			152,226,655
Net assets at end of year	$	155,417,011		$	153,150,107

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended December 31,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES

Net increase in net assets resulting from operations	$	8,233,349		$	4,944,948
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net amortization of premiums and discounts	32,641			455
Amortization of deferred financing fees	26,250			91,912
Stock compensation	43,257			—
Realized loss on investments	1,180,595			—
Unrealized depreciation on derivative	892			24,811
Change in net unrealized appreciation	(4,972,422		)	(282,605		)
Decrease (increase) in interest receivable	457,764			(67,382		)
Decrease in funds due from custodian	210,954			31,270
(Increase) decrease in prepaid assets	(19,277		)	1,958
(Increase) decrease in due from affiliate	(300,638		)	30,401
Increase in other assets	(20,919		)	(40,097		)
(Decrease) increase in accounts payable	(11,109		)	137,112
Increase (decrease) in interest payable	5,683			(22,189		)
Increase (decrease) in accrued expenses and deferred liabilities	2,297			(633,367		)
(Decrease) increase in fees due to affiliate	(181,213		)	36,400
Increase in funds held in escrow	1,404			—
Increase in investment balance due to payment in kind interest	(33,022		)	(140,090		)
Net cash provided by operating activities	4,656,486			4,113,537

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of investments	(26,688,457		)	(46,949,500		)
Principal repayments on investments	38,702,066			25,975,707
Repayment of repurchase agreements	—			(21,345,997		)
Receipt of principal on notes receivable - employees	23,094			150,000
Net cash provided by (used in) investing activities	12,036,703			(42,169,790		)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings from the lines of credit	41,925,000			50,400,000
Repayments on the lines of credit	(39,235,341		)	(50,743,547		)
Distributions paid	(4,579,272		)	(4,060,263		)
Exercise of employee stock options	85,900			—
Shelf offering costs	—			(111,233		)
Net cash used in financing activities	(1,803,713		)	(4,515,043		)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1)	14,889,476			(42,571,296		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	503,776			65,954,840
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	15,393,252		$	23,383,544

CASH PAID DURING PERIOD FOR INTEREST	$	646,934		$	139,763
CASH PAID DURING PERIOD FOR INCOME TAXES	$	—		$	138,678

(1) Cash and cash equivalents consist of demand deposits and highly liquid investments with original maturities of three months or less when purchased.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART TO THESE CONSOLIDATED FINANCIAL STATEMENTS.

MARYLAND		54-2040781
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1521 WESTBRANCH DRIVE, SUITE 200
MCLEAN, VIRGINIA 22102
(Address of principal executive office)

(703) 287-5800
(Registrant’s telephone number, including area code)

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Consolidated Statements of Assets and Liabilities as of December 31, 2005 and September 30, 2005
	Consolidated Schedules of Investments as of December 31, 2005 and September 30, 2005
	Consolidated Statements of Operations for the three months ended December 31, 2005 and December 31, 2004
	Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2005 and December 31, 2004
	Consolidated Statements of Cash Flows for the three months ended December 31, 2005 and December 31, 2004
	Financial Highlights for the three months ended December 31, 2005 and December 31, 2004
	Notes to Consolidated Financial Statements

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Overview
	Results of Operations
	Liquidity and Capital Resources

Item 3.	Quantitative and Qualitative Disclosure About Market Risk

Item 4.	Controls and Procedures

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.	Defaults Upon Senior Securities

Item 4.	Submission of Matters to a Vote of Security Holders

Item 5.	Other Information

Item 6.	Exhibits

SIGNATURES

	Three Months Ended December 31, 2005		Three Months Ended December 31, 2004

Per Share Data (1)
Net asset value at beginning of period	$	13.41	$	13.50
Income from investment operations:
Net investment income (2)	0.39