Quarterly report [Sections 13 or 15(d)]

INVESTMENTS (Tables)

v3.25.2
INVESTMENTS (Tables)
 9 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of June 30, 2025 and September 30, 2024, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 Fair Value
As of June 30, 2025:
Secured first lien debt
 $ —  $ —  $ 529,149  $ 529,149 
Secured second lien debt
 —  —  144,299  144,299 
Unsecured debt
 —  —  354 

354 
Preferred equity
 —  —  25,717 

25,717 
Common equity/equivalents
 — 

—  46,695  46,695 
Total
 $ —  $ —  $ 746,214  $ 746,214 
Investments measured at NAV(A)
—  —  —  5,046 
Total Investments as of June 30, 2025
 $ —  $ —  $ 746,214  $ 751,260 
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 Fair Value
As of September 30, 2024:
Secured first lien debt
 $ —  $ —  $ 554,937  $ 554,937 
Secured second lien debt
 —  —  113,716  113,716 
Unsecured debt
 —  — 

32 

32 
Preferred equity
 —  — 

31,346 

31,346 
Common equity/equivalents
 — 

—  96,191  96,191 
Total
 $ —  $ —  $ 796,222  $ 796,222 
Investments measured at NAV(A)
—  —  —  38 
Total Investments as of September 30, 2024
 $ —  $ —  $ 796,222  $ 796,260 
(A)Includes our investments in Gladstone Alternative and Leeds as of June 30, 2025 and our investment in Leeds as of September 30, 2024. Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this quarterly report.
The following table presents our portfolio investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy and carried at fair value as of June 30, 2025 and September 30, 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
Using Significant Unobservable Inputs (Level 3)
June 30, 2025 September 30, 2024
Non-Control/Non-Affiliate Investments
Secured first lien debt $ 458,578  $ 540,661 
Secured second lien debt 135,507  105,169 
Unsecured debt 20  32 
Preferred equity 18,126  27,247 
Common equity/equivalents 26,736 
(A)
 77,757 
(B)
Total Non-Control/Non-Affiliate Investments
 $ 638,967  $ 750,866 
Affiliate Investments
Secured first lien debt $ 245  $ 380 
Preferred equity 7,591  4,099 
Common equity/equivalents 3,748  2,959 
Total Affiliate Investments $ 11,584  $ 7,438 
Control Investments
Secured first lien debt $ 70,326  $ 13,896 
Secured second lien debt 8,792  8,547 
Unsecured debt 334  — 
Common equity/equivalents 16,211  15,475 
Total Control Investments
 $ 95,663  $ 37,918 
Total Investments at Fair Value Using Level 3 Inputs $ 746,214  $ 796,222 
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

Range / Weighted Average as of

June 30,
2025		 September 30,
2024
Valuation
Techniques/
Methodologies
Unobservable
Input
 June 30,
2025		 September 30,
2024


Secured first lien debt
 $ 455,368  $ 464,090 
Yield Analysis
 Discount Rate
10.5% - 18.0%
/ 12.0%
10.8% - 17.3%
/ 12.6%

73,781  90,847 
TEV
EBITDA multiple
4.5x – 7.2x
/ 6.3x
4.1x – 13.9x
/ 10.0x


EBITDA
$408 - $4,591
/ $3,330
$3,020 - $16,211
/ $10,309


Revenue multiple
0.6x – 0.7x
/ 0.7x
0.2x – 4.6x
/ 2.1x


Revenue
$11,320 - $21,248
/ $14,719
$6,336 - $21,118
/ $13,981


Secured second lien debt
 131,824  101,928 
Yield Analysis
 Discount Rate
11.9% - 15.4%
/ 13.4%
12.2% - 16.0%
/ 14.1%

3,683  3,241 
Market Quote
 IBP
100.0% - 100.0%
/ 100.0%
88.0% - 88.0%
/ 88.0%

8,792  8,547 
TEV
 EBITDA multiple
5.4x – 5.4x
/ 5.4x
5.4x – 5.4x
/ 5.4x


EBITDA
$2,463 - $2,463
/ $2,463
$3,343 - $3,343
/ $3,343


Unsecured debt
 354  32 
TEV
EBITDA multiple
7.2x – 7.2x
/ 7.2x
0.0x – 0.0x
/ 0.0x
EBITDA
$4,591 - $4,591
/ $4,591
$0 - $0
/ $0
Revenue multiple
1.0x – 1.0x
/ 1.0x
1.0x – 1.0x
/ 1.0x


Revenue
$5,202 - $5,202
/ $5,202
$7,834 - $7,834
/ $7,834


Preferred and common equity / equivalents(A)
72,412  127,537 
TEV
 EBITDA multiple
4.1x – 14.7x
/ 7.3x
4.1x – 13.9x
/ 8.0x


EBITDA
$408 -$143,118
/ $8,787
$1,182 -$144,458
/ $10,847


Revenue multiple
0.6x – 1.0x
/ 0.7x
0.2x– 4.6x
/ 2.0x


Revenue
$5,202 -$21,248
/ $13,175
$4,672 -$21,118
/ $12,587
Total Level 3 Investments, at Fair Value
 $ 746,214  $ 796,222 
Schedule of Fair Value Measurements Using Significant Unobservable Inputs
The following tables provide the changes in fair value, broken out by security type, during the three and nine months ended June 30, 2025 and 2024 for all investments for which we determine fair value using unobservable (Level 3) inputs.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended June 30, 2025 Secured
First Lien
Debt		 Secured
Second Lien
Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of March 31, 2025 $ 541,524  $ 144,970  $ 335  $ 25,031  $ 45,765  $ 757,625 
Total gains (losses):
Net realized gain (loss)(A)
(4,439) —  —  —  731  (3,708)
Net unrealized appreciation (depreciation)(B)
815  (355) 7  686  (7,570) (6,417)
Reversal of prior period net depreciation (appreciation) on realization(B)
6,053  295  —  —  —  6,348 
New investments, repayments and settlements: (C)
Issuances/originations
 73,889  130  12  —  —  74,031 
Settlements/repayments
 (80,193) (741) —  —  —  (80,934)
Net proceeds from sales
 —  —  —  —  (731) (731)
Transfers
 (8,500) —  —  —  8,500  — 
Fair Value as of June 30, 2025
 $ 529,149  $ 144,299  $ 354  $ 25,717  $ 46,695  $ 746,214 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Nine months ended June 30, 2025 Secured
First Lien
Debt		 Secured
Second
Lien Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of September 30, 2024 $ 554,937  $ 113,716  $ 32  $ 31,346  $ 96,191  $ 796,222 
Total gains (losses):
Net realized gain (loss)(A)
(8,513) —  —  5,404  64,827  61,718 
Net unrealized appreciation (depreciation)(B)
(10,011) (252) (23) 7,513  6,432  3,659 
Reversal of prior period net depreciation (appreciation) on realization(B)
9,612  295  —  (5,404) (60,010) (55,507)
New investments, repayments and settlements: (C)
Issuances/originations
 212,754  47,827  345  6,262  915  268,103 
Settlements/repayments
 (221,130) (17,287) —  —  —  (238,417)
Net proceeds from sales
 —  —  —  (19,404) (70,160) (89,564)
Transfers (8,500) —  —  —  8,500  — 
Fair Value as of June 30, 2025
 $ 529,149  $ 144,299  $ 354  $ 25,717  $ 46,695  $ 746,214 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended June 30, 2024 Secured
First Lien
Debt		 Secured
Second Lien
Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of March 31, 2024 $ 563,849  $ 140,409  $ 33  $ 32,598  $ 54,435  $ 791,324 
Total gains (losses):
Net realized gain (loss)(A)
(50) —  —  —  1,465  1,415 
Net unrealized appreciation (depreciation)(B)
(6,748) 727  —  367  9,213  3,559 
Reversal of prior period net depreciation (appreciation) on realization(B)
(33) (58) —  —  —  (91)
New investments, repayments and settlements: (C)
Issuances/originations
 26,964  20,132  —  —  750  47,846 
Settlements/repayments
 (41,749) (43,335) —  —  —  (85,084)
Net proceeds from sales
 50  —  —  —  (1,484) (1,434)
Fair Value as of June 30, 2024
 $ 542,283  $ 117,875  $ 33  $ 32,965  $ 64,379  $ 757,535 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Nine months ended June 30, 2024 Secured
First Lien
Debt		 Secured
Second
Lien Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of September 30, 2023 $ 510,701  $ 127,854  $ 24  $ 26,855  $ 39,128  $ 704,562 
Total gains (losses):
Net realized gain (loss)(A)
(50) —  —  219  1,724  1,893 
Net unrealized appreciation (depreciation)(B)
(1,750) 2,270  9  (3,270) 24,804  22,063 
Reversal of prior period net depreciation (appreciation) on realization(B)
(52) 99  —  130  (283) (106)
New investments, repayments and settlements: (C)
Issuances/originations
 106,939  35,494  —  10,000  750  153,183 
Settlements/repayments
 (73,555) (47,842) —  —  —  (121,397)
Net proceeds from sales
 50  —  —  (969) (1,744) (2,663)
Fair Value as of June 30, 2024
 $ 542,283  $ 117,875  $ 33  $ 32,965  $ 64,379  $ 757,535 
(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(B)Included in net unrealized appreciation (depreciation) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, accretion of discounts, PIK, 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.
Schedule of Investment Holdings
The following table outlines our investments by security type as of June 30, 2025 and September 30, 2024:
June 30, 2025 September 30, 2024
Cost Fair Value Cost Fair Value
Secured first lien debt $ 555,347  71.4  % $ 529,149  70.4  % $ 580,736  75.3  % $ 554,937  69.7  %
Secured second lien debt 144,231  18.5  144,299  19.2  113,691  14.8  113,716  14.3 
Unsecured debt 543  0.1  354  0.1  198  0.0  32  0.0 
Total debt investments 700,121  90.0  673,802  89.7  694,625  90.1  668,685  84.0 
Preferred equity 37,279  4.8  25,717  3.4  45,017  5.8  31,346  3.9 
Common equity/equivalents 40,451  5.2  51,741  6.9  31,369  4.1  96,229  12.1 
Total equity investments
 77,730  10.0  77,458  10.3  76,386  9.9  127,575  16.0 
Total Investments
 $ 777,851  100.0  % $ 751,260  100.0  % $ 771,011  100.0  % $ 796,260  100.0  %
Our investments at fair value consisted of the following industry classifications as of June 30, 2025 and September 30, 2024:
June 30, 2025 September 30, 2024
Industry Classification Fair Value Percentage of
Total
Investments		 Fair Value Percentage of
Total
Investments
Healthcare, Education, and Childcare $ 272,883  36.3  % $ 101,707  12.8  %
Diversified/Conglomerate Manufacturing 174,470  23.2  160,264  20.1 
Diversified/Conglomerate Service 110,727  14.7  179,032  22.5 
Beverage, Food, and Tobacco 56,001  7.5  88,327  11.1 
Automobile 27,147  3.6  28,286  3.6 
Machinery 25,831  3.4  21,816  2.7 
Cargo Transportation 20,000  2.7  20,200  2.5 
Oil and Gas 18,463  2.5  20,554  2.6 
Aerospace and Defense 16,975  2.3  153,096  19.2 
Personal and Non-Durable Consumer Products 12,743  1.7  13,586  1.7 
Printing and Publishing 5,445  0.7  4,312  0.5 
Other, < 2.0%
 10,575  1.4  5,080  0.7 
Total Investments $ 751,260  100.0  % $ 796,260  100.0  %
Our investments at fair value were included in the following U.S. geographic regions as of June 30, 2025 and September 30, 2024:
June 30, 2025 September 30, 2024
Location
Fair Value
Percentage of
Total
Investments
Fair Value
Percentage of
Total Investments
South $ 247,674  33.0  % $ 314,010  39.4  %
Midwest 229,178  30.5  192,897  24.2 
West 218,612  29.1  249,082  31.3 
Northeast 55,796  7.4  40,271  5.1 
Total Investments $ 751,260  100.0  % $ 796,260  100.0  %
Schedule of Contractual Principal Repayment and Maturity
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, 2025:
Amount
For the remaining three months ending September 30:
2025(A)
$ 4,951 
For the fiscal years ending September 30:
 2026 71,503 

2027 160,622 

2028 204,797 

2029 105,614 

Thereafter 153,214 

Total contractual repayments
 $ 700,701 

Adjustments to cost basis of debt investments (580)

Investments in equity securities 77,730 

Investments held as of June 30, 2025 at cost:
 $ 777,851 
(A)Includes debt investments with contractual principal amounts totaling $0.5 million for which the maturity date has passed as of June 30, 2025.