Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2024

Summary of Ranges of Significant Unobservable Inputs Used to Value Level 3 Assets

The table below presents the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of September 30, 2024 and December 31, 2023.


Level 3 Instruments	Fair Value(1) (2)		Valuation Techniques (3)	Significant Unobservable Inputs	Range of Significant Unobservable Inputs(4)	Weighted Average(5)
As of September 30, 2024
Bank Loans, Corporate Debt, and Other Debt Obligations
1st Lien/Senior Secured Debt	$	2,610,797	Discounted cash flows	Discount Rate	7.4% — 12.0%	9.1%
1st Lien/Last-Out Unitranche		231,075	Discounted cash flows	Discount Rate	8.0% — 10.5%	9.9%
2nd Lien/Senior Secured Debt		22,349	Discounted cash flows	Discount Rate	—	12.3%
Equity
Preferred Stock	$	1,365	Comparable multiples	EV/EBITDA(6)	—	10.0x
Common Stock		5,292	Comparable multiples	EV/EBITDA(6)	10.0x — 13.3x	12.8x
As of December 31, 2023
Bank Loans, Corporate Debt, and Other Debt Obligations
1st Lien/Senior Secured Debt	$	800,680	Discounted cash flows	Discount Rate	9.7% — 11.5%	10.3%
		21,554	Comparable multiples	EV/EBITDA(6)	—	10.0x
1st Lien/Last-Out Unitranche		56,810	Discounted cash flows	Discount Rate	8.9% — 10.7%	10.3%
2nd Lien/Senior Secured Debt		20,017	Discounted cash flows	Discount Rate	—	12.6%

(1)

As of September 30, 2024, included within the fair value of Level 3 assets of $4,273,991 is an amount of $1,403,113 for which the Investment Adviser did not develop the unobservable inputs (examples include single source broker quotations, third party pricing, and prior transactions). The income approach was used in the determination of fair value for $2,864,221 or 67.1% of Level 3 bank loans, corporate debt, and other debt obligations.

(2)

As of December 31, 2023, included within the fair value of Level 3 assets of $1,605,348 is an amount of $706,287 for which the Investment Adviser did not develop the unobservable inputs (examples include single source broker quotations, third party pricing, and prior transactions). The income approach was used in the determination of fair value for $877,507 or 54.7% of Level 3 bank loans, corporate debt, and other debt obligations.

(3)

The fair value of any one instrument may be determined using multiple valuation techniques. For example, market comparable and discounted cash flows may be used together to determine fair value. Therefore, the Level 3 balance encompasses both of these techniques.

(4)

The range for an asset category consisting of a single investment, if any, is not meaningful and therefore has been excluded.

(5)

Weighted average for an asset category consisting of multiple investments is calculated by weighting the significant unobservable input by the relative fair value of the investment. Weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

(6)

Enterprise value of portfolio company as a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”).

Summary of Assets Categorized Within Fair Value Hierarchy

The following is a summary of the Company’s assets categorized within the fair value hierarchy:


	September 30, 2024								December 31, 2023
Assets	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
1st Lien/Senior Secured Debt	$	—	$	998,997	$	3,993,073	$	4,992,070	$	—	$	182,771	$	1,418,647	$	1,601,418
1st Lien/Last-Out Unitranche		—		—		251,912		251,912		—		—		166,684		166,684
2nd Lien/Senior Secured Debt		—		—		22,349		22,349		—		—		20,017		20,017
Preferred Stock		—		—		1,365		1,365		—		—		—		—
Common Stock		—		—		5,292		5,292		—		—		—		—
Investments in Affiliated Money Market Fund		204,149		—		—		204,149		65,977		—		—		65,977
Total	$	204,149	$	998,997	$	4,273,991	$	5,477,137	$	65,977	$	182,771	$	1,605,348	$	1,854,096

Summary of Changes in Fair Value of Level 3 Assets By Investment Type

The below table presents a summary of changes in fair value of Level 3 assets by investment type:


Assets	Beginning Balance		Purchases(1)		Net Realized Gain (Loss)			Net Change in Unrealized Appreciation (Depreciation)			Sales and Settlements(1)			Net Amortization of Premium/ Discount		Transfers In (2)		Transfers Out (2)		Ending Balance		Net Change in Unrealized Appreciation (Depreciation) for assets still held
For the Nine Months Ended September 30, 2024
1st Lien/Senior Secured Debt	$	1,418,647	$	2,750,055	$	(4,149	)	$	19,515		$	(199,617	)	$	8,104	$	518	$	—	$	3,993,073	$	14,251
1st Lien/Last-Out Unitranche		166,684		84,979		—			(110	)		—			359		—		—		251,912		(110	)
2nd Lien/Senior Secured Debt		20,017		1,936		—			358			—			38		—		—		22,349		358
Preferred Stock		—		3,101		—			(1,736	)		—			—		—		—		1,365		(1,736	)
Common Stock		—		5,214		—			78			—			—		—		—		5,292		78
Total assets	$	1,605,348	$	2,845,285	$	(4,149	)	$	18,105		$	(199,617	)	$	8,501	$	518	$	—	$	4,273,991	$	12,841
For the Nine Months Ended September 30, 2023
1st Lien/Senior Secured Debt	$	—	$	824,002	$	2		$	(1,248	)	$	(2,773	)	$	969	$	—	$	—	$	820,952	$	(1,248	)
1st Lien/Last-Out Unitranche		—		54,404		—			(14	)		—			15		—		—		54,405		(14	)
2nd Lien/Senior Secured Debt		—		20,000		—			(6	)		—			6		—		—		20,000		(6	)
Total assets	$	—	$	898,406	$	2		$	(1,268	)	$	(2,773	)	$	990	$	—	$	—	$	895,357	$	(1,268	)

(1)

Purchases may include PIK, securities received in corporate actions and restructurings. Sales and Settlements may include securities delivered in corporate actions and restructuring of investments.

(2)

Transfers in (out) of Level 3, if any, are due to a decrease (increase) in the quantity and reliability of broker quotes obtained by the Investment Adviser.