Quarterly report [Sections 13 or 15(d)]

INVESTMENTS (Tables)

v3.26.1
INVESTMENTS (Tables)
 3 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investments by Security Type at Fair Value and Investments Valued Using Level 3 Inputs
As of June 30, 2026 and March 31, 2026, 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, 2026:
Secured first lien debt
 $ —  $ —  $ 564,631  $ 564,631 
Secured second lien debt
 —  —  102,789  102,789 
Preferred equity
 —  —  429,510  429,510 
Common equity/equivalents
 — 

—  180,145  180,145 
Total $ —  $ —  $ 1,277,075  $ 1,277,075 
Investments measured at NAV (A)
—  —  —  4,945 
Total Investments
 $ —  $ —  $ 1,277,075  $ 1,282,020 
Cash equivalents 25  —  —  25 
Total Investments and Cash Equivalents as of June 30, 2026
 $ 25  $ —  $ 1,277,075  $ 1,282,045 

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 March 31, 2026:
Secured first lien debt
 $ —  $ —  $ 570,602  $ 570,602 
Secured second lien debt
 —  —  99,197  99,197 
Preferred equity
 —  —  426,949  426,949 
Common equity/equivalents
 —  —  207,495  207,495 
Total $ —  $ —  $ 1,304,243  $ 1,304,243 
Investments measured at NAV (A)
—  —  —  5,005 
Total Investments $ —  $ —  $ 1,304,243  $ 1,309,248 
Cash equivalents 25  —  —  25 
Total Investments and Cash Equivalents as of March 31, 2026
 $ 25  $ —  $ 1,304,243  $ 1,309,273 
(A)Includes our investment in Gladstone Alternative as of June 30, 2026 and March 31, 2026. 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 investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of June 30, 2026 and March 31, 2026, 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, 2026 March 31, 2026
Non-Control/Non-Affiliate Investments
Secured first lien debt $ 368,906  $ 374,285 
Secured second lien debt 100,389  97,397 
Preferred equity 294,724  304,782 
Common equity/equivalents 180,145  207,495 
Total Non-Control/Non-Affiliate Investments 944,164  983,959 
Affiliate Investments
Secured first lien debt 195,221  195,704 
Secured second lien debt 2,400  1,800 
Preferred equity 134,786  122,167 
Common equity/equivalents (A)
—  — 
Total Affiliate Investments 332,407  319,671 
Control Investments
Secured first lien debt 504  613 
Secured second lien debt —  — 
Preferred equity —  — 
Common equity/equivalents —  — 
Total Control Investments 504  613 
Total investments at fair value using Level 3 inputs $ 1,277,075  $ 1,304,243 
(A)Excludes our investment in Gladstone Alternative as of June 30, 2026 and March 31, 2026 with a fair value of $4.9 million and $5.0 million, respectively, which was valued using NAV as a practical expedient.
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. Significant level 3 inputs were weighted by the relative fair value of the investments.
Quantitative Information about Level 3 Fair Value Measurements
Fair Value as of Valuation
Technique/
Methodology		 Unobservable
Input		 Range / Weighted-Average as of
June 30, 2026 March 31, 2026 June 30, 2026 March 31, 2026
Secured first
lien debt		 $ 564,631  $ 570,602  TEV EBITDA multiple
3.8x – 9.0x /
6.5x
3.6x – 8.7x /
6.4x
EBITDA
$367 – $39,298 /
$11,867
$430 – $28,973 / $11,991
Revenue multiple
0.4x – 0.6x /
0.4x
0.3x – 0.6x /
0.5x
Revenue
$20,670 – $92,487 /
$72,978
$21,768 – $99,974 / $62,789
Secured second
lien debt		 102,789  99,197  TEV EBITDA multiple
5.2x – 9.2x /
 7.9x
5.0x – 10.3x /
7.6x
EBITDA
$3,177 – $51,487 /
$30,610
$3,000 – $44,315 / $19,510
Preferred
equity		 429,510  426,949  TEV EBITDA multiple
3.8x – 9.0x /
6.2x
3.6x – 8.7x /
6.4x
EBITDA
$367 – $39,298 /
$18,946
$430 – $28,973 / $9,870
Revenue multiple
0.4x – 0.6x /
0.4x
0.3x – 0.6x /
0.4x
Revenue
$20,670 – $92,487 /
$92,487
$21,768 – $99,974 / $76,364
Common equity/
equivalents		 180,145  207,495  TEV EBITDA multiple
5.0x – 9.2x /
9.0x
5.0x – 10.3x /
9.0x
EBITDA
$1,647 – $51,487 /
$48,426
$1,210 – $44,315 / $32,353
Total $ 1,277,075  $ 1,304,243 
Schedule of Changes in Level 3 Fair Value Measurements of Investments
The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three months ended June 30, 2026 and 2025 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, 2026:
Fair value as of March 31, 2026
 $ 570,602  $ 99,197  $ 426,949  $ 207,495  $ 1,304,243 
Total gain (loss):
Net realized gain (loss)(A)
(9,000) —  —  —  (9,000)
Net unrealized (depreciation) appreciation(B)
(592) 2,992  2,561  (27,350) (22,389)
Reversal of previously recorded depreciation upon realization(B)
3,621  —  —  —  3,621 
New investments, repayments and settlements(C):
Issuances / originations
 —  600  —  —  600 
Settlements / repayments
 —  —  —  —  — 
Sales
 —  —  —  —  — 
Transfers
 —  —  —  —  — 
Fair value as of June 30, 2026
 $ 564,631  $ 102,789  $ 429,510  $ 180,145  $ 1,277,075 
Change in unrealized (depreciation) appreciation attributable to investments still held at June 30, 2026
 $ (592) $ 2,992  $ 2,561  $ (27,350) $ (22,389)
Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
 Total
Three Months Ended June 30, 2025:
Fair value as of March 31, 2025
 $ 514,334  $ 103,580  $ 302,163  $ 54,268  $ 974,345 
Total gain (loss):
Net realized gain (loss)(A)
—  —  —  —  — 
Net unrealized (depreciation)
appreciation (B)
1,152  376  (3,683) 1,073  (1,082)
Reversal of previously recorded (appreciation) depreciation upon realization(B)
—  —  —  —  — 
New investments, repayments and settlements(C):
Issuances / originations
 45,941  —  16,901  —  62,842 
Settlements / repayments
 (4,370) —  —  —  (4,370)
Sales
 —  —  —  —  — 
Transfers(D)
—  (10,616) 10,616  —  — 
Fair value as of June 30, 2025
 $ 557,057  $ 93,340  $ 325,997  $ 55,341  $ 1,031,735 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2025
 $ 1,152  $ 376  $ (3,683) $ 1,073  $ (1,082)
Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2026 and 2025.
(B)Included in net unrealized (depreciation) appreciation of investments on our accompanying Consolidated Statements of Operations for the respective three months ended June 30, 2026 and 2025.
(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)Transfers represent secured second lien debt of PSI Molded Plastics, Inc. ("PSI Molded") with a total cost basis of $10.6 million, which was converted to preferred equity in June 2025.
Schedule of Investment Concentrations
The following table summarizes our investments by security type as of June 30, 2026 and March 31, 2026:
June 30, 2026 March 31, 2026
Cost Fair Value Cost Fair Value
Secured first lien debt $ 584,008  55.9  % $ 564,631  44.0  % $ 593,008  56.3  % $ 570,602  43.6  %
Secured second lien debt 153,440  14.7  % 102,789  8.1  % 152,840  14.5  % 99,197  7.6  %
Total debt 737,448  70.6  % 667,420  52.1  % 745,848  70.8  % 669,799  51.2  %
Preferred equity 257,403  24.7  % 429,510  33.5  % 257,403  24.5  % 426,949  32.6  %
Common equity/equivalents 49,597  4.7  % 185,090  14.4  % 49,597  4.7  % 212,500  16.2  %
Total equity/equivalents 307,000  29.4  % 614,600  47.9  % 307,000  29.2  % 639,449  48.8  %
Total investments
 $ 1,044,448  100.0  % $ 1,282,020  100.0  % $ 1,052,848  100.0  % $ 1,309,248  100.0  %
Investments at fair value consisted of the following industry classifications as of June 30, 2026 and March 31, 2026:
June 30, 2026 March 31, 2026
Fair Value Percentage of
Total Investments		 Fair Value Percentage of Total Investments
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) $ 222,005  17.3 % $ 258,692  19.8 %
Diversified/Conglomerate Services 194,037  15.1 % 189,148  14.4 %
Home and Office Furnishings, Housewares, and Durable Consumer Products 173,346  13.5 % 166,553  12.7 %
Aerospace and Defense 169,054  13.2 % 174,542  13.4 %
Oil and Gas 123,550  9.6 % 125,605  9.6 %
Leisure, Amusement, Motion Pictures, and Entertainment 110,550  8.6 % 105,339  8.0 %
Buildings and Real Estate 64,830  5.1 % 68,987  5.3 %
Electronics 62,968  4.9 % 62,723  4.8 %
Chemicals, Plastics, and Rubber 52,499  4.1 % 49,715  3.8 %
Healthcare, Education, and Childcare 41,823  3.3 % 41,630  3.2 %
Mining, Steel, Iron and Non-Precious Metals 40,574  3.2 % 37,713  2.9 %
Telecommunications 7,459  0.6 % 7,942  0.6 %
Other < 2.0% 19,325  1.5 % 20,659  1.5 %
Total investments $ 1,282,020  100.0 % $ 1,309,248  100.0 %
Investments at fair value were included in the following geographic regions of the U.S. and Canada as of June 30, 2026 and March 31, 2026:
June 30, 2026 March 31, 2026
Location Fair Value Percentage of
Total Investments		 Fair Value Percentage of
Total Investments
United States
South
 $ 616,300  48.1  % $ 649,436  49.6  %
West
 224,589  17.5  % 227,294  17.3  %
Midwest
 218,088  17.0  % 216,726  16.6  %
Northeast
 199,303  15.5  % 193,837  14.8  %
Canada 23,740  1.9  % 21,955  1.7  %
Total investments $ 1,282,020  100.0  % $ 1,309,248  100.0  %
Schedule of Investment Principal Repayments
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, 2026:

Amount
For the remaining nine months ending March 31, 2027
 $ 40,340 
For the fiscal years ending March 31:
2028 111,442 
2029 288,690 
2030 159,506 
2031 137,470 
Thereafter — 
Total contractual repayments $ 737,448 
Investments in equity securities 307,000 
Total cost basis of investments held as of June 30, 2026:
 $ 1,044,448