GLADSTONE CAPITAL CORP
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
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Item 2. Results of Operations
RESULTS OF OPERATIONS
Comparison of the Three Months Ended June 30, 2024 to the Three Months Ended June 30, 2023
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ Change | % Change | |
| INVESTMENT INCOME | ||||
| Interest income | $23,199 | $21,816 | $1,383 | 6.3% |
| Success fee, dividend, and other income | 2,490 | 1,007 | 1,483 | 147.3 |
| Total investment income | 25,689 | 22,823 | 2,866 | 12.6 |
| EXPENSES | ||||
| Base management fee | 3,459 | 3,106 | 353 | 11.4 |
| Loan servicing fee | 2,250 | 2,069 | 181 | 8.7 |
| Incentive fee | 3,076 | 2,919 | 157 | 5.4 |
| Administration fee | 477 | 417 | 60 | 14.4 |
| Interest expense | 5,509 | 5,553 | (44) | (0.8) |
| Amortization of deferred financing costs | 453 | 405 | 48 | 11.9 |
| Other expenses | 922 | 673 | 249 | 37.0 |
| Expenses, before credits from Adviser | 16,146 | 15,142 | 1,004 | 6.6 |
| Credit to base management fee – loan servicing fee | (2,250) | (2,069) | (181) | 8.7 |
| Credits to fees from Adviser – other | (600) | (1,926) | 1,326 | (68.8) |
| Total expenses, net of credits | 13,296 | 11,147 | 2,149 | 19.3 |
| NET INVESTMENT INCOME | 12,393 | 11,676 | 717 | 6.1 |
| NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
| Net realized gain (loss) on investments | 1,417 | 2,911 | (1,494) | (51.3) |
| Net realized gain (loss) on other | 1,898 | 44 | 1,854 | NM |
| Net unrealized appreciation (depreciation) of investments | 3,436 | (2,586) | 6,022 | NM |
| Net unrealized depreciation of other | — | (161) | 161 | (100.0) |
| Net gain (loss) from investments and other | 6,751 | 208 | 6,543 | NM |
| PREFERRED STOCK DIVIDENDS | 88 | — | 88 | NM |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $19,056 | $11,884 | $7,172 | 60.4% |
NM - Not Meaningful
Investment Income
Interest income increased by 6.3% for the three months ended June 30, 2024, as compared to the prior year period. Generally, the level of interest income from investments is directly related to the principal balance of our interest-bearing investment portfolio outstanding during the period multiplied by the weighted-average yield. The weighted average principal balance of our interest-bearing investment portfolio for the three months ended June 30, 2024 was $664.6 million, compared to $644.1 million for the three months ended June 30, 2023, an increase of $20.5 million, or 3.2%. The weighted average yield on our interest-bearing investments is based on the current stated interest rate on interest-bearing investments, which increased to 13.9% for the three months ended June 30, 2024, compared to 13.6% for the three months ended June 30, 2023, inclusive of any allowances on interest receivables made during those periods. The increase in the weighted average yield was driven mainly by increases in interest rates.
As of June 30, 2024, certain of our loans to B+T Group Acquisition, Inc., Edge Adhesives Holdings, Inc,. and WB Xcel Holdings, LLC were on non-accrual status with a debt cost basis of $26.4 million, or 3.9% of the cost basis of all debt investments in our portfolio, and a fair value of $13.9 million, or 2.1% of the fair value of all debt investments in our portfolio. As of September 30, 2023, our loan to Edge Adhesives Holdings, Inc. was on non-accrual status with a debt cost basis of $6.1 million, or 0.9% of the cost basis of all debt investments in our portfolio, and a fair value of $2.9 million, or 0.5% of the fair value of all debt investments in our portfolio.
Other income increased by 147.3% during the three months ended June 30, 2024, as compared to the prior year period, primarily due to increases in prepayment fees and dividend income.
As of June 30, 2024 and September 30, 2023, no single investment represented greater than 10% of the total investment portfolio at fair value.
Expenses
Expenses, net of any non-contractual, unconditional and irrevocable credits to fees from the Adviser, increased $2.1 million, or 19.3%, for the three months ended June 30, 2024, as compared to the prior year period. This increase was primarily due to a $1.7 million increase in the net base management fee earned by the Adviser.
Total interest expense on borrowings and notes payable decreased by $44 thousand, or 0.8%, during the three months ended June 30, 2024 driven by a shift in the composition of our debt outstanding. Interest expense on notes payable increased by $1.1 million period over period with the issuance of our 2028 Notes in August 2023. Interest expense on our Credit Facility decreased by $1.1 million due primarily to a decrease in the weighted average balance outstanding which was $76.8 million during the three months ended June 30, 2024, as compared to $154.3 million in the prior year period, a decrease of 50.2%. The effective interest rate on our Credit Facility, including unused commitment fees incurred, but excluding the impact of deferred financing costs, was 10.5% during the three months ended June 30, 2024, compared to 8.2% during the prior year period. The increase in the effective interest rate was driven primarily by a $0.3 million increase in unused commitment fees during the three months ended June 30, 2024 as compared to the prior year period.
The net base management fee earned by the Adviser increased by $1.7 million, or 142.3%, for the three months ended June 30, 2024, as compared to the prior year period, resulting from a decrease in credits to the base management fee from the Adviser for new deal origination fees and an increase in average total assets subject to the base management fee.
The base management, loan servicing and incentive fees, and associated non-contractual, unconditional and irrevocable credits, are computed quarterly, as described under“Transactions with the Adviser” in Note 4—Related Party Transactions of the Notes to Consolidated Financial Statements and are summarized in the following table:
| Three Months EndedJune 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Average total assets subject to base management fee(A) | $790,629 | $709,943 |
| Multiplied by prorated annual base management fee of 1.75% | 0.4375% | 0.4375% |
| Base management fee(B) | $3,459 | $3,106 |
| Portfolio company fee credit | (575) | (1,894) |
| Syndicated loan fee credit | (25) | (32) |
| Net Base Management Fee | $2,859 | $1,180 |
| Loan servicing fee(B) | 2,250 | 2,069 |
| Credit to base management fee - loan servicing fee(B) | (2,250) | (2,069) |
| Net Loan Servicing Fee | $— | $— |
| Incentive fee(B) | 3,076 | 2,919 |
| Incentive fee credit | — | — |
| Net Incentive Fee | $3,076 | $2,919 |
| Portfolio company fee credit | (575) | (1,894) |
| Syndicated loan fee credit | (25) | (32) |
| Incentive fee credit | — | — |
| Credits to Fees From Adviser - other(B) | $(600) | $(1,926) |
(A)Average total assets subject to the base management fee is defined as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.
(B)Reflected, on a gross basis, as a line item on our Consolidated Statements of Operations.
Net Realized and Unrealized Gain (Loss)
Net Realized Gain (Loss) on Investments
For the three months ended June 30, 2024, we recorded a net realized gain on investments of $1.4 million, which resulted primarily from a $1.5 million realized gain recognized on our investment in Giving Home.
For the three months ended June 30, 2023, we recorded a net realized gain on investments of $2.9 million, which resulted primarily from a $3.7 million realized gain recognized on our investment in PIC 360, LLC in June 2023, partially offset by a $0.8 million realized loss recognized on the exit of our investment in NetFortris Holdings LLC in June 2023.
Net Unrealized Appreciation (Depreciation) of Investments
During the three months ended June 30, 2024, we recorded net unrealized appreciation of investments in the aggregate amount of $3.4 million. The net realized gain (loss) and unrealized appreciation (depreciation) across our investments for the three months ended June 30, 2024 were as follows:
| Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation)Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| Antenna Research Associates, Inc. | $— | $8,555 | $— | $8,555 |
| Lonestar EMS, LLC | — | 1,357 | — | 1,357 |
| NeoGraf Solutions, LLC | — | 973 | — | 973 |
| Tailwind Smith Cooper Intermediate Corporation | — | 792 | — | 792 |
| Quality Environmental Midco, Inc. | — | 673 | — | 673 |
| Sokol & Company Holdings, LLC | — | 514 | — | 514 |
| Giving Home Health Care, LLC | 1,465 | (1,849) | — | (384) |
| Technical Resource Management, LLC | — | (879) | — | (879) |
| HH-Inspire Acquisition, Inc. | — | (943) | — | (943) |
| Edge Adhesives Holdings, Inc. | — | (962) | — | (962) |
| WB Xcel Holdings, LLC | — | (1,125) | — | (1,125) |
| Engineering Manufacturing Technologies, LLC | — | (3,865) | — | (3,865) |
| Other, net (<$500) | (48) | 282 | (87) | 147 |
| Total: | $1,417 | $3,523 | $(87) | $4,853 |
The primary driver of net unrealized appreciation of $3.4 million for the three months ended June 30, 2024 was the improvement in the financial and operational performance of Antenna Research Associates, Inc, partially offset by the decline in the financial and operational performance of Engineering Manufacturing Technologies, LLC.
During the three months ended June 30, 2023, we recorded net unrealized depreciation of investments in the aggregate amount of $2.6 million. The net realized gain (loss) and unrealized appreciation (depreciation) across our investments for the three months ended June 30, 2023 were as follows:
| Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation)Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| FES Resources Holdings LLC | $— | $2,718 | $— | $2,718 |
| Defiance Integrated Technologies, Inc. | — | 1,951 | — | 1,951 |
| Giving Home Health Care, LLC | — | 1,443 | — | 1,443 |
| Antenna Research Associates, Inc. | — | 1,414 | — | 1,414 |
| Triple H Food Processors, LLC | — | 509 | — | 509 |
| NetFortris Holdings LLC | (789) | — | 526 | (263) |
| PIC 360, LLC | 3,700 | — | (4,262) | (562) |
| Salvo Technologies, Inc. | — | (669) | — | (669) |
| B+T Group Acquisition Inc. | — | (1,225) | — | (1,225) |
| NeoGraf Solutions, LLC | — | (1,957) | — | (1,957) |
| WB Xcel Holdings, LLC | — | (2,672) | — | (2,672) |
| Other, net (<$500) | — | (242) | (120) | (362) |
| Total: | $2,911 | $1,270 | $(3,856) | $325 |
The primary driver of net unrealized depreciation of $2.6 million for the three months ended June 30, 2023 was the reversal of unrealized appreciation associated with our investment in PIC 360, LLC and the decline in the financial and operational performance of WB Xcel Holdings, LLC and NeoGraf Solutions, LLC, partially offset by the improvement in the financial and operational performance of FES Resources Holdings LLC and Defiance Integrated Technologies, Inc.
Net Realized Gain on Other
During the three months ended June 30, 2024 and June 30, 2023, we recorded a net realized gain on other of $1.9 million and $44 thousand, respectively. The current period gain resulted primarily from proceeds received associated with a legacy investment and the prior period gain was associated with escrows received.
Net Unrealized Appreciation of Other
During the three months ended June 30, 2023, we recorded $0.2 million of unrealized appreciation related to a change in the fair value of our Credit Facility. No such amounts were recorded during the three months ended June 30, 2024.
Comparison of the Nine Months Ended June 30, 2024 to the Nine Months Ended June 30, 2023
| Nine Months Ended June 30, | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ Change | % Change | |
| INVESTMENT INCOME | ||||
| Interest income | $69,910 | $59,761 | $10,149 | 17.0% |
| Success fee, dividend, and other income | 2,997 | 2,917 | 80 | 2.7 |
| Total investment income | 72,907 | 62,678 | 10,229 | 16.3 |
| EXPENSES | ||||
| Base management fee | 10,143 | 8,833 | 1,310 | 14.8 |
| Loan servicing fee | 6,638 | 5,866 | 772 | 13.2 |
| Incentive fee | 8,729 | 7,508 | 1,221 | 16.3 |
| Administration fee | 1,400 | 1,237 | 163 | 13.2 |
| Interest expense | 16,273 | 15,091 | 1,182 | 7.8 |
| Amortization of deferred financing costs | 1,323 | 1,164 | 159 | 13.7 |
| Other expenses | 2,563 | 1,894 | 669 | 35.3 |
| Expenses, before credits from Adviser | 47,069 | 41,593 | 5,476 | 13.2 |
| Credit to base management fee – loan servicing fee | (6,638) | (5,866) | (772) | 13.2 |
| Credits to fees from Adviser – other | (2,628) | (3,082) | 454 | (14.7) |
| Total expenses, net of credits | 37,803 | 32,645 | 5,158 | 15.8 |
| NET INVESTMENT INCOME | 35,104 | 30,033 | 5,071 | 16.9 |
| NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
| Net realized gain (loss) on investments | 1,895 | 12,633 | (10,738) | (85.0) |
| Net realized gain (loss) on other | 3,850 | 322 | 3,528 | NM |
| Net unrealized appreciation (depreciation) of investments | 21,936 | (13,420) | 35,356 | NM |
| Net unrealized depreciation of other | — | — | — | NM |
| Net gain (loss) from investments and other | 27,681 | (465) | 28,146 | NM |
| PREFERRED STOCK DIVIDENDS | 96 | — | 96 | NM |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $62,689 | $29,568 | $33,121 | 112.0% |
NM - Not Meaningful
Investment Income
Interest income increased by 17.0% for the nine months ended June 30, 2024, as compared to the prior year period. The weighted average principal balance of our interest-bearing investment portfolio for the nine months ended June 30, 2024 was $667.5 million, compared to $612.5 million for the nine months ended June 30, 2023, an increase of $55.0 million, or 9.0%. The weighted average yield on our interest-bearing investments is based on the current stated interest rate on interest-bearing investments, which increased to 13.9% for the nine months ended June 30, 2024, compared to 13.0% for the nine months ended June 30, 2023, inclusive of any allowances on interest receivables made during those periods. The increase in the weighted average yield was driven mainly by increases in interest rates.
As of June 30, 2024, certain of our loans to B+T Group Acquisition, Inc., Edge Adhesives Holdings, Inc. and WB Xcel Holdings, LLC were on non-accrual status with a debt cost basis of $26.4 million, or 3.9% of the cost basis of all debt investments in our portfolio, and a fair value of $13.9 million, or 2.1% of the fair value of all debt investments in our portfolio. As of September 30, 2023, our loan to Edge Adhesives Holdings, Inc. was on non-accrual status with a debt cost basis of $6.1 million, or 0.9% of the cost basis of all debt investments in our portfolio, and a fair value of $2.9 million, or 0.5% of the fair value of all debt investments in our portfolio.
Other income increased by 2.7% during the nine months ended June 30, 2024, as compared to the prior year period, primarily due to an increase in prepayment fees, partially offset by decreases in dividend income and success fees.
Expenses
Expenses, net of any non-contractual, unconditional and irrevocable credits to fees from the Adviser, increased $5.2 million, or 15.8%, for the nine months ended June 30, 2024, as compared to the prior year period. This increase was primarily due to a $1.9 million increase in the net base management fee earned by the Adviser, a $1.2 million increase in interest expense, and a $1.1 million increase in the net incentive fee earned by the Adviser.
Total interest expense on borrowings and notes payable increased by $1.2 million, or 7.8%, during the nine months ended June 30, 2024 driven by a shift in the composition of our debt outstanding. Interest expense on notes payable increased by $3.3 million period over period with the issuance of our 2028 Notes in August 2023. Interest expense on our Credit Facility decreased by $2.1 million due primarily to a decrease in the weighted average balance outstanding which was $71.8 million during the nine months ended June 30, 2024, as compared to $136.4 million in the prior year period, a decrease of 47.4%. The effective interest rate on our Credit Facility, including unused commitment fees incurred, but excluding the impact of deferred financing costs, was 10.7% during the nine months ended June 30, 2024, compared to 7.7% during the prior year period. The increase in the effective interest rate was driven primarily by a $0.7 million increase in unused commitment fees during the nine months ended June 30, 2024 as compared to the prior year period.
The net base management fee earned by the Adviser increased by $1.9 million, or 32.3%, for the nine months ended June 30, 2024, as compared to the prior year period, resulting from an increase in average total assets subject to the base management fee and a decrease in credits to the base management fee from the Adviser for new deal origination fees.
The base management, loan servicing and incentive fees, and associated non-contractual, unconditional and irrevocable credits, are computed quarterly, as described under“Transactions with the Adviser” in Note 4—Related Party Transactions of the Notes to Consolidated Financial Statements and are summarized in the following table:
| Nine Months EndedJune 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Average total assets subject to base management fee(A) | $772,800 | $672,990 |
| Multiplied by prorated annual base management fee of 1.75% | 1.3125% | 1.3125% |
| Base management fee(B) | $10,143 | $8,833 |
| Portfolio company fee credit | (2,451) | (2,987) |
| Syndicated loan fee credit | (83) | (95) |
| Net Base Management Fee | $7,609 | $5,751 |
| Loan servicing fee(B) | 6,638 | 5,866 |
| Credit to base management fee - loan servicing fee(B) | (6,638) | (5,866) |
| Net Loan Servicing Fee | $— | $— |
| Incentive fee(B) | 8,729 | 7,508 |
| Incentive fee credit | (94) | — |
| Net Incentive Fee | $8,635 | $7,508 |
| Portfolio company fee credit | (2,451) | (2,987) |
| Syndicated loan fee credit | (83) | (95) |
| Incentive fee credit | (94) | — |
| Credits to Fees From Adviser - other(B) | $(2,628) | $(3,082) |
(A)Average total assets subject to the base management fee is defined as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.
(B)Reflected, on a gross basis, as a line item on our Consolidated Statements of Operations.
Net Realized and Unrealized Gain (Loss)
Net Realized Gain (Loss) on Investments
For the nine months ended June 30, 2024, we recorded a net realized gain on investments of $1.9 million, which resulted primarily from a $1.5 million realized gain recognized on our investment in Giving Home, a $0.3 million realized gain recognized on the sale of our investment in PIC 360, LLC, and a $0.2 million realized gain recognized on our investment in Trowbridge.
For the nine months ended June 30, 2023, we recorded a net realized gain on investments of $12.6 million, which resulted primarily from a $5.9 million realized gain recognized on the sale of our investment in Targus Cayman HoldCo, Ltd. in October 2022, a $4.4 million realized gain recognized on our investment in Leeds Novamark Capital I, L.P. in November 2022, and a $3.7 million realized gain recognized on our investment in PIC 360, LLC in June 2023.
Net Unrealized Appreciation (Depreciation) of Investments
During the nine months ended June 30, 2024, we recorded net unrealized appreciation of investments in the aggregate amount of $21.9 million. The net realized gain (loss) and unrealized appreciation (depreciation) across our investments for the nine months ended June 30, 2024 were as follows:
| Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation)Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| Antenna Research Associates, Inc. | $— | $16,629 | $— | $16,629 |
| Lonestar EMS, LLC | — | 8,217 | — | 8,217 |
| MCG Energy Solutions, LLC | — | 3,558 | — | 3,558 |
| Salt & Straw, LLC | — | 3,132 | — | 3,132 |
| Giving Home Health Care, LLC | 1,465 | (376) | — | 1,089 |
| Café Zupas | — | 996 | — | 996 |
| Encore Dredging Holdings, LLC | — | 856 | — | 856 |
| TNCP Intermediate HoldCo, LLC | — | 856 | — | 856 |
| 8th Avenue Food & Provisions, Inc. | — | 800 | — | 800 |
| Ohio Armor Holdings, LLC | — | 726 | — | 726 |
| Tailwind Smith Cooper Intermediate Corporation | — | 683 | — | 683 |
| Quality Environmental Midco, Inc. | — | 673 | — | 673 |
| Viva Railings, L.L.C. | — | 653 | — | 653 |
| Sokol & Company Holdings, LLC | — | 650 | — | 650 |
| Leadpoint Business Services, LLC | — | 611 | — | 611 |
| Canopy Safety Brands, LLC | — | 535 | — | 535 |
| NeoGraf Solutions, LLC | — | 451 | — | 451 |
| SpaceCo Holdings, LLC | — | 432 | — | 432 |
| OCI, LLC | — | 405 | — | 405 |
| Imperative Holdings Corporation | — | 374 | — | 374 |
| Fix-It Group, LLC | — | 334 | — | 334 |
| ALS Education, LLC | — | 317 | — | 317 |
| DKI Ventures, LLC | — | (662) | — | (662) |
| Technical Resource Management, LLC | — | (939) | — | (939) |
| Engineering Manufacturing Technologies, LLC | — | (1,872) | — | (1,872) |
| Edge Adhesives Holdings, Inc. | — | (1,920) | — | (1,920) |
| B+T Group Acquisition Inc. | — | (2,368) | — | (2,368) |
| HH-Inspire Acquisition, Inc. | — | (2,552) | — | (2,552) |
| WB Xcel Holdings, LLC | — | (4,454) | — | (4,454) |
| FES Resources Holdings LLC | — | (4,670) | — | (4,670) |
| Other, net (<$500) | 430 | (37) | (102) | 291 |
| Total: | $1,895 | $22,038 | $(102) | $23,831 |
The primary driver of net unrealized appreciation of $21.9 million for the nine months ended June 30, 2024 was the improvement in the financial and operational performance of Antenna Research Associates, Inc. and Lonestar EMS, LLC, partially offset by the decline in the financial and operational performance of FES Resources Holdings LLC and WB Xcel Holdings, LLC.
During the nine months ended June 30, 2023, we recorded net unrealized depreciation of investments in the aggregate amount of $13.4 million. The net realized gain (loss) and unrealized appreciation (depreciation) across our investments for the nine months ended June 30, 2023 were as follows:
| Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation)Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| FES Resources Holdings LLC | $— | $3,619 | $— | $3,619 |
| Giving Home Health Care, LLC | — | 2,324 | — | 2,324 |
| HH-Inspire Acquisition, Inc. | — | 2,439 | (200) | 2,239 |
| Antenna Research Associates, Inc. | — | 2,080 | — | 2,080 |
| Encore Dredging Holdings, LLC | — | 1,508 | — | 1,508 |
| Defiance Integrated Technologies, Inc. | — | 1,492 | — | 1,492 |
| Imperative Holdings Corporation | 510 | 327 | — | 837 |
| Triple H Food Processors, LLC | — | 654 | — | 654 |
| TNCP Intermediate HoldCo, LLC | — | 591 | — | 591 |
| PIC 360, LLC | 3,700 | 1,064 | (4,262) | 502 |
| Targus Cayman HoldCo, Ltd. | 5,916 | — | (5,916) | — |
| Circuitronics EMS Holdings LLC | (921) | — | 921 | — |
| NetFortris Holdings LLC | (789) | (206) | 526 | (469) |
| 8th Avenue Food & Provisions, Inc. | — | (574) | — | (574) |
| Leeds Novamark Capital I, L.P. | 4,406 | 37 | (5,018) | (575) |
| DKI Ventures, LLC | — | (1,005) | — | (1,005) |
| Salvo Technologies, Inc. | — | (1,131) | — | (1,131) |
| NeoGraf Solutions, LLC | — | (1,957) | — | (1,957) |
| Engineering Manufacturing Technologies, LLC | — | (2,590) | — | (2,590) |
| B+T Group Acquisition Inc. | — | (3,643) | — | (3,643) |
| WB Xcel Holdings, LLC | — | (4,546) | — | (4,546) |
| Other, net (<$500) | (189) | (339) | 385 | (143) |
| Total: | $12,633 | $144 | $(13,564) | $(787) |
The primary drivers of net unrealized depreciation of $13.4 million for the nine months ended June 30, 2023 were the reversal of unrealized appreciation associated with the exit of our investment in Targus Cayman HoldCo, Ltd., the reversal of unrealized appreciation associated with our investment in PIC 360, LLC, and the sale of underlying assets within Leeds Novamark Capital I, L.P. as well as the decrease in comparable transaction multiples used to estimate the fair value of certain of our other portfolio companies, and the decline in the financial and operational performance of certain of our other portfolio companies.
Net Realized Gain (Loss) on Other
During the nine months ended June 30, 2024 and June 30, 2023, we recorded a net realized gain on other of $3.9 million and $0.3 million, respectively. The current period gain resulted primarily from proceeds received associated with a legacy investment and the prior period gain was associated with escrows received.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.