
	As of

	June 30, 2025				December 31, 2024
	Amortized Cost(1)		Fair Value		Amortized Cost(1)		Fair Value
First lien senior secured loans(2)	$	16,827	$	16,547	$	15,519	$	15,179
Second lien senior secured loans	1,609		1,523		1,935		1,847
Subordinated certificates of the SDLP(3)	1,063		1,052		1,263		1,192
Senior subordinated loans	1,456		1,388		1,384		1,351
Preferred equity	2,753		2,642		2,667		2,649
Ivy Hill Asset Management, L.P.(4)	1,856		2,081		1,701		1,915
Other equity	2,017		2,653		1,905		2,587
Total	$	27,581	$	27,886	$	26,374	$	26,720

(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $10,650 and $10,489 respectively, as of June 30, 2025, and $8,772 and $8,624, respectively, as of December 31, 2024.

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 19 and 20 different borrowers as of June 30, 2025 and December 31, 2024, respectively.

The Company uses GICS for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of June 30, 2025 and December 31, 2024 were as follows:


	As of

	June 30, 2025		December 31, 2024
Industry
Software and Services	23.5	%	24.5	%
Health Care Equipment and Services	12.9		12.0
Financial Services(1)	10.2		9.9
Commercial and Professional Services	9.9		9.4
Insurance	6.4		5.9
Consumer Distribution and Retail	4.7		5.7
Consumer Services	4.6		5.1
Sports, Media and Entertainment	4.5		4.6
Investment Funds and Vehicles(2)	3.8		4.6
Independent Power and Renewable Electricity Producers	3.8		3.7
Capital Goods	3.2		2.7
Pharmaceuticals, Biotechnology and Life Sciences	2.5		2.6
Materials	2.2		1.2
Consumer Durables and Apparel	2.2		2.3
Food and Beverage	1.8		1.8
Other	3.8		4.0
Total	100.0	%	100.0	%

(2)Includes the Company’s investment in the SDLP (as defined below), which had made first lien senior secured loans to 19 and 20 different borrowers as of June 30, 2025 and December 31, 2024, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.

Ivy Hill Asset Management, L.P. (“IHAM”), a wholly owned portfolio company of the Company, is an asset manager and an SEC-registered investment adviser. As of June 30, 2025, IHAM had assets under management of approximately $13.1 billion. As of June 30, 2025, IHAM managed 21 vehicles (the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of June 30, 2025 and December 31, 2024 was $2,652 and $2,237, respectively. For the three and six months ended June 30, 2025, IHAM had management and incentive fee income of $12 and $24, respectively, and investment-related income of $52 and $110, respectively, which included net realized gains or losses on investments and other transactions. For the three and six months ended June 30, 2024, IHAM had management and incentive fee income of $14 and $28, respectively, and investment-related income of $92 and $191, respectively, which included net realized gains or losses on investments and other transactions.

From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, the Company. For any such sales or purchases by the IHAM Vehicles to or from the Company, the IHAM Vehicle must obtain approval from third parties unaffiliated with the Company or IHAM, as applicable. During the six months ended June 30, 2025 and 2024, IHAM or certain of the IHAM Vehicles purchased $1,371 and $35, respectively, of loans from the Company. For the six months ended June 30, 2025 and 2024, the Company recognized $0 of net realized gains and $1 of net realized losses, respectively, from these sales. During the six months ended June 30, 2025, IHAM or certain IHAM Vehicles did not sell any investments to the Company. During the six months ended June 30, 2024, IHAM or certain IHAM vehicles sold $32 of investments to the Company.

(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the regular dividend received by the Company related to the Company’s equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.

IHAM is party to an administration agreement, referred to herein as the “IHAM administration agreement,” with Ares Operations. Pursuant to the IHAM administration agreement, Ares Operations provides IHAM with, among other things, office facilities, equipment, clerical, bookkeeping and record keeping services, services relating to the marketing and sale of interests in vehicles managed by IHAM, services of, and oversight of, custodians, depositories, accountants, attorneys, underwriters and such other persons in any other capacity deemed to be necessary. Under the IHAM administration agreement, IHAM reimburses Ares Operations for all of the actual costs associated with such services, including Ares Operations’ allocable portion of the compensation, rent and other expenses of its officers, employees and respective staff in performing its obligations under the IHAM administration agreement.

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024 are presented below.

In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.

When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the Consolidated IHAM Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, the Company believes an assessment of IHAM's business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.


	As of June 30, 2025
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Balance Sheet Information:
Assets

Investments at fair value(2)	$	2,619	$	9,733	$	(2,511)	$	9,841
Cash and cash equivalents	7		562		—		569
Other assets	68		79		(61)		86




Total assets	$	2,694	$	10,374	$	(2,572)	$	10,496

Liabilities
Debt	$	708	$	7,427	$	—	$	8,135
Subordinated note from ARCC	155		—		—		155
Subordinated notes(3)	—		1,119		(791)		328
Other liabilities	19		176		(13)		182




Total liabilities	882		8,722		(804)		8,800
Equity
Contributed capital	1,701		—		—		1,701
Accumulated earnings	146		—		—		146
Net unrealized losses on investments and foreign currency transactions(4)	(35)		—		—		(35)
Non-controlling interests in Consolidated IHAM Vehicles(5)	—		1,652		(1,768)		(116)


Total equity	1,812		1,652		(1,768)		1,696
Total liabilities and equity	$	2,694	$	10,374	$	(2,572)	$	10,496


	As of December 31, 2024
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Balance Sheet Information:
Assets

Investments at fair value(2)	$	2,160	$	8,098	$	(2,086)	$	8,172
Cash and cash equivalents	9		967		—		976

Other assets	60		122		(54)		128




Total assets	$	2,229	$	9,187	$	(2,140)	$	9,276

Liabilities

Debt	$	406	$	6,550	$	—	$	6,956

Subordinated notes(3)	—		1,025		(714)		311

Other liabilities	16		266		(13)		269




Total liabilities	422		7,841		(727)		7,536
Equity
Contributed capital	1,700		—		—		1,700
Accumulated earnings	186		—		—		186
Net unrealized losses on investments and foreign currency transactions(4)	(79)		—		—		(79)
Non-controlling interests in Consolidated IHAM Vehicles(5)	—		1,346		(1,413)		(67)


Total equity	1,807		1,346		(1,413)		1,740
Total liabilities and equity	$	2,229	$	9,187	$	(2,140)	$	9,276

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of June 30, 2025 and December 31, 2024 was $2,652 and $2,237, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of June 30, 2025 and December 31, 2024 was $10,027 and $8,343, respectively.

(4)As of June 30, 2025 and December 31, 2024, net unrealized losses of $49 and $70, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.


	For the Three Months Ended June 30, 2025
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Statement of Operations Information:
Revenues

Investment income	$	77	$	232	$	(76)	$	233
Management fees and other income	12		2		(12)		2



Total revenues	89		234		(88)		235
Expenses

Interest expense	14		120		—		134
Distributions to subordinated notes	—		32		(23)		9
Management fees and other expenses	4		14		(12)		6




Total expenses	18		166		(35)		149
Net operating income	71		68		(53)		86


Net realized losses on investments and foreign currency	(22)		(1)		21		(2)
Net realized gain on extinguishment of debt	—		23		(23)		—
Net unrealized gains (losses) on investments, foreign currency and other transactions	19		(32)		(12)		(25)



Total net realized and unrealized losses on investments, foreign currency and other transactions	(3)		(10)		(14)		(27)
Net income	68		58		(67)		59

Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles	—		58		(67)		(9)
Net income attributable to Ivy Hill Asset Management, L.P.	$	68	$	—	$	—	$	68


	For the Six Months Ended June 30, 2025
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Statement of Operations Information:
Revenues

Investment income	$	144	$	449	$	(141)	$	452
Management fees and other income	24		4		(23)		5



Total revenues	168		453		(164)		457
Expenses

Interest expense	23		238		—		261
Distributions to subordinated notes	—		64		(46)		18
Management fees and other expenses	8		28		(23)		13




Total expenses	31		330		(69)		292
Net operating income	137		123		(95)		165


Net realized losses on investments and foreign currency	(31)		(56)		21		(66)
Net realized gains (losses) on extinguishment of debt	—		22		(23)		(1)
Net unrealized gains (losses) on investments, foreign currency and other transactions	44		(19)		(21)		4



Total net realized and unrealized gains (losses) on investments, foreign currency and other transactions	13		(53)		(23)		(63)
Net income	150		70		(118)		102

Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles	—		70		(118)		(48)
Net income attributable to Ivy Hill Asset Management, L.P.	$	150	$	—	$	—	$	150


	For the Three Months Ended June 30, 2024
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Statement of Operations Information:
Revenues

Investment income	$	92	$	259	$	(90)	$	261
Management fees and other income	14		3		(13)		4



Total revenues	106		262		(103)		265
Expenses

Interest expense	10		143		—		153
Distributions to subordinated notes	—		52		(40)		12
Management fees and other expenses	3		15		(13)		5




Total expenses	13		210		(53)		170
Net operating income	93		52		(50)		95


Net realized gains (losses) on investments and foreign currency	—		(16)		—		(16)

Net unrealized losses on investments, foreign currency and other transactions	(16)		(14)		10		(20)



Total net realized and unrealized losses on investments, foreign currency and other transactions	(16)		(30)		10		(36)
Net income	77		22		(40)		59

Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles	—		22		(40)		(18)
Net income attributable to Ivy Hill Asset Management, L.P.	$	77	$	—	$	—	$	77


	For the Six Months Ended June 30, 2024
	IHAM		Consolidated IHAM Vehicles(1)		Eliminations		Consolidated
Selected Statement of Operations Information:
Revenues

Investment income	$	186	$	533	$	(182)	$	537
Management fees and other income	28		6		(26)		8



Total revenues	214		539		(208)		545
Expenses

Interest expense	20		293		—		313
Distributions to subordinated notes	—		105		(77)		28
Management fees and other expenses	7		33		(26)		14




Total expenses	27		431		(103)		355
Net operating income	187		108		(105)		190


Net realized gains (losses) on investments and foreign currency	5		(74)		(9)		(78)
Net realized loss on extinguishment of debt	—		(1)		—		(1)
Net unrealized gains (losses) on investments, foreign currency and other transactions	(33)		47		30		44



Total net realized and unrealized losses on investments, foreign currency and other transactions	(28)		(28)		21		(35)
Net income	159		80		(84)		155
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles	—		80		(84)		(4)
Net income attributable to Ivy Hill Asset Management, L.P.	$	159	$	—	$	—	$	159

The Company has established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. The joint venture is called the Senior Direct Lending Program, LLC (the “Senior Direct Lending Program” or the “SDLP”). In July 2016, the Company and Varagon and its clients completed the initial funding of the SDLP. The SDLP may generally commit and hold individual loans of up to $450. The Company may directly co-invest with the SDLP to accommodate larger transactions. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required).

The Company provides capital to the SDLP in the form of subordinated certificates (the “SDLP Certificates”), and Varagon and its clients provide capital to the SDLP in the form of senior notes, intermediate funding notes and the SDLP Certificates. As of June 30, 2025 and December 31, 2024, the Company and a client of Varagon owned 87.5% and 12.5%, respectively, of the outstanding SDLP Certificates.

As of June 30, 2025 and December 31, 2024, the Company and Varagon and its clients had agreed to make capital available to the SDLP of $6,150 and $6,150, respectively, in the aggregate, of which $1,444 and $1,444, respectively, is to be made available from the Company. The Company will continue to provide capital to the SDLP in the form of the SDLP Certificates, and Varagon and its clients will provide capital to the SDLP in the form of senior notes, intermediate funding notes and the SDLP Certificates. This capital will only be committed to the SDLP upon approval of transactions by the investment committee of the SDLP as discussed above. Below is a summary of the funded capital and unfunded capital commitments of the SDLP.


	As of
	June 30, 2025		December 31, 2024
Total capital funded to the SDLP(1)	$	4,572	$	5,054
Total capital funded to the SDLP by the Company(1)	$	1,231	$	1,310
Total unfunded capital commitments to the SDLP(2)	$	339	$	489
Total unfunded capital commitments to the SDLP by the Company(2)	$	86	$	119

The SDLP Certificates pay a coupon equal to Secured Overnight Financing Rate (“SOFR”) plus 8.0% and also entitle the holders thereof to receive a portion of the excess cash flow from the loan portfolio, after expenses, which may result in a return to the holders of the SDLP Certificates that is greater than the stated coupon. The SDLP Certificates are junior in right of payment to the senior notes and intermediate funding notes.

The amortized cost and fair value of the SDLP Certificates held by the Company and the Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of June 30, 2025 and December 31, 2024 were as follows:


	As of

	June 30, 2025						December 31, 2024
	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Investment in the SDLP Certificates	$	1,063		$	1,052		$	1,263		$	1,192
Yield on the investment in the SDLP Certificates	12.0		%	12.1		%	12.4		%	13.2		%

As of June 30, 2025 and December 31, 2024, the SDLP’s portfolio was comprised entirely of first lien senior secured loans to U.S. middle-market companies and were in industries similar to the companies in the Company’s portfolio. As of June 30, 2025, one of the loans in the SDLP portfolio was on non-accrual status. As of December 31, 2024, two of the loans in the SDLP portfolio were on non-accrual status. Below is a summary of the SDLP’s portfolio.


	As of

	June 30, 2025		December 31, 2024
Total first lien senior secured loans(1)(2)	$	4,415	$	4,759

Largest loan to a single borrower(1)	$	420	$	400
Total of five largest loans to borrowers(1)	$	1,711	$	1,692
Number of borrowers in the SDLP	19		20
Commitments to fund delayed draw loans(3)	$	339	$	489

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of June 30, 2025 and December 31, 2024, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $3,452 and $3,937, respectively.