| Fair Value Measurements |
5. FAIR VALUE MEASUREMENTS The following is a summary of the Company’s assets categorized within the fair value hierarchy as of March 31, 2025 and December 31, 2024 (amounts in thousands):
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March 31, 2025 |
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Assets |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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First Lien Senior Secured Debt |
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$ |
— |
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$ |
— |
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$ |
901,723 |
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$ |
901,723 |
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First Lien Last Out Unitranche Debt |
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— |
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— |
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20,347 |
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20,347 |
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Common Equity |
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— |
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— |
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|
348 |
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|
348 |
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Cash and Cash Equivalents |
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62,099 |
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— |
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— |
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62,099 |
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Total Portfolio Investments, Cash and Cash
Equivalents |
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$ |
62,099 |
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$ |
— |
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$ |
922,418 |
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$ |
984,517 |
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December 31, 2024 |
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Assets |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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First Lien Secured |
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$ |
— |
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$ |
— |
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$ |
665,741 |
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$ |
665,741 |
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Common Equity |
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— |
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— |
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400 |
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|
400 |
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Cash and Cash Equivalents |
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12,923 |
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— |
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— |
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12,923 |
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Total Portfolio Investments, Cash and Cash Equivalents |
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$ |
12,923 |
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$ |
— |
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$ |
666,141 |
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$ |
679,064 |
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The below table presents a summary of changes in fair value of Level 3 assets by investment type for the three months ended March 31, 2025 (amounts in thousands):
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Three Months Ended March 31, 2025: |
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First Lien
Senior Secured Debt |
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First Lien Last Out Unitranche Debt |
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Common Equity |
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Total |
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Fair value, beginning of period |
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$ |
665,741 |
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$ |
— |
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$ |
400 |
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$ |
666,141 |
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Purchase of investments (including, PIK, if any) |
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|
242,655 |
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20,347 |
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— |
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263,002 |
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Proceeds from principal repayments and sales of
investments |
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(7,615 |
) |
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— |
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— |
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(7,615 |
) |
Amortization of premium/accretion of discount, net |
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571 |
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25 |
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— |
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596 |
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Receipt of paid-in-kind interest |
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511 |
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— |
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— |
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511 |
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Net realized gain (loss) on investments |
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— |
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— |
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— |
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— |
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Net change in unrealized appreciation (depreciation
on investments |
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(140 |
) |
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(25 |
) |
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(52 |
) |
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(217 |
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Transfers out of Level 3 |
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— |
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— |
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— |
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— |
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Transfers to Level 3 |
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— |
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— |
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— |
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— |
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Fair value, end of period |
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$ |
901,723 |
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$ |
20,347 |
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$ |
348 |
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$ |
922,418 |
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Net change in unrealized appreciation (depreciation) on non
-controlled/ non-affiliated company investments still held
at March 31, 2025 |
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(140 |
) |
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(25 |
) |
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(52 |
) |
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(217 |
) |
The below table presents a summary of changes in fair value of Level 3 assets by investment type for the three months ended March 31, 2024 (amounts in thousands):
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Three Months Ended March 31, 2024: |
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First Lien
Senior Secured |
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Total |
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Fair value, beginning of period |
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$ |
52,566 |
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$ |
52,566 |
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Purchase of investments (including, PIK, if any) |
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62,453 |
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62,453 |
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Proceeds from principal repayments and sales of
investments |
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— |
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— |
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Amortization of premium/accretion of discount, net |
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49 |
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49 |
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Net realized gain (loss) on investments |
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— |
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— |
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Net change in unrealized appreciation (depreciation) on
investments |
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(221 |
) |
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(221 |
) |
Receipt of paid-in-kind interest |
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— |
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— |
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Transfers out of Level 3 |
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— |
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— |
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Transfers to Level 3 |
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— |
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— |
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Fair value, end of period |
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$ |
114,847 |
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$ |
114,847 |
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Net change in unrealized appreciation (depreciation) on non
-controlled/ non-affiliated company investments still held
at March 31, 2024 |
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$ |
(221 |
) |
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$ |
(221 |
) |
The tables below present the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of March 31, 2025 and December 31, 2024, respectively (amounts in thousands). These ranges represent the significant unobservable inputs that were used in the valuation of each type of instrument, but they do not represent a range of values for any one instrument.
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Asset Class |
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Fair
Value as of
March 31,
2025 |
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Valuation
Techniques |
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Significant
Unobservable Inputs |
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Range of Significant
Unobservable
Inputs |
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Weighted
Average(1) |
First Lien Senior Secured Debt |
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$ |
901,723 |
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Income Approach |
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Discount Rate |
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8.87% - 18.69% |
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10.89% |
First Lien Last Out Unitranche Debt |
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20,347 |
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Income Approach |
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Discount Rate |
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9.90% |
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N/A |
Common Equity |
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|
348 |
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Market Approach |
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EBITDA Multiple |
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15.0x |
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N/A |
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$ |
922,418 |
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Asset Class |
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Fair
Value as of
December 31,
2024 |
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Valuation
Techniques |
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Significant
Unobservable Inputs |
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Range of Significant
Unobservable
Inputs |
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Weighted
Average(1) |
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First Lien Senior Secured |
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$ |
665,741 |
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Income Approach |
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Discount Rate |
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9.11% - 12.92% |
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10.67 |
% |
Common Equity |
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|
400 |
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Transactional Value |
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Cost |
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N/A |
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N/A |
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$ |
666,141 |
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(1)Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category. |