v3.25.2
INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investments
As of June 30, 2025 and December 31, 2024, investments consisted of the following:

 As of
June 30, 2025December 31, 2024
Amortized Cost(1)Fair ValueAmortized Cost(1)Fair Value
First lien senior secured loans(2)$16,827 $16,547 $15,519 $15,179 
Second lien senior secured loans1,609 1,523 1,935 1,847 
Subordinated certificates of the SDLP(3)1,063 1,052 1,263 1,192 
Senior subordinated loans1,456 1,388 1,384 1,351 
Preferred equity2,753 2,642 2,667 2,649 
Ivy Hill Asset Management, L.P.(4)1,856 2,081 1,701 1,915 
Other equity2,017 2,653 1,905 2,587 
Total$27,581 $27,886 $26,374 $26,720 
________________________________________

(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
    
(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.

(4)Includes the Company’s subordinated loan and equity investments in IHAM (as defined below), as applicable.
  
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, 2025December 31, 2024
Industry
Software and Services23.5 %24.5 %
Health Care Equipment and Services12.9 12.0 
Financial Services(1)10.2 9.9 
Commercial and Professional Services9.9 9.4 
Insurance6.4 5.9 
Consumer Distribution and Retail4.7 5.7 
Consumer Services4.6 5.1 
Sports, Media and Entertainment4.5 4.6 
Investment Funds and Vehicles(2)3.8 4.6 
Independent Power and Renewable Electricity Producers3.8 3.7 
Capital Goods3.2 2.7 
Pharmaceuticals, Biotechnology and Life Sciences2.5 2.6 
Materials2.2 1.2 
Consumer Durables and Apparel2.2 2.3 
Food and Beverage1.8 1.8 
Other3.8 4.0 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in IHAM.

(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.

 As of
June 30, 2025December 31, 2024
Geographic Region
West(1)22.3 %25.2 %
Midwest21.8 20.9 
Southeast18.2 19.3 
Mid-Atlantic16.6 16.1 
Northeast(2)14.7 12.2 
International6.4 6.3 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in the SDLP, which represented 3.8% and 4.5% of the total investment portfolio at fair value as of June 30, 2025 and December 31, 2024, respectively.

(2)Includes the Company’s investment in IHAM, which represented 7.4% and 7.1% of the total investment portfolio at fair value as of June 30, 2025 and December 31, 2024, respectively.
The amortized cost and fair value of the Company’s investment in IHAM as of June 30, 2025 and December 31, 2024 were as follows:
As of
June 30, 2025December 31, 2024
Amortized CostFair ValueAmortized CostFair Value
Subordinated loan(1)
$155 $155 $— $— 
Equity
1,701 1,926 1,701 1,915 
Total investment in IHAM$1,856 $2,081 $1,701 $1,915 
_______________________________________________________________________________

(1)The Company has provided a commitment to fund up to $500 to IHAM, of which the availability is solely at the Company’s discretion.
Below is a summary of the SDLP’s portfolio.
As of
June 30, 2025December 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 SDLP19 20 
Commitments to fund delayed draw loans(3)$339 $489 
___________________________________________________________________________

(1)At principal amount.
(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.
(3)As discussed above, these commitments have been approved by the investment committee of the SDLP.
Schedule of Dividend and Interest Income
The interest income and dividend income that the Company earned from IHAM for the three and six months ended June 30, 2025 and 2024 were as follows:

For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
Interest income
$1 $— $1 $1 
Dividend income
$73 $69 $146 $135 
The interest income from the Company’s investment in the SDLP Certificates and capital structuring service fees and other income earned for the three and six months ended June 30, 2025 and 2024 were as follows:

For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
Interest income
$38 $45 $76 $88 
Capital structuring service fees and other income
$2 $2 $5 $5 
Schedule of Funded Capital and Unfunded Capital Commitments of the SDLP
The yields at amortized cost and fair value of the Company’s investments in IHAM as of June 30, 2025 and December 31, 2024 were as follows:
 As of
June 30, 2025December 31, 2024
 Amortized CostFair ValueAmortized CostFair Value
Equity(1)
17.2 %15.2 %16.7 %14.8 %
_______________________________________________________________________________

(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.
Below is a summary of the funded capital and unfunded capital commitments of the SDLP.
 As of
June 30, 2025December 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 
___________________________________________________________________________
(1)At principal amount.

(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
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, 2025December 31, 2024
Amortized CostFair ValueAmortized CostFair Value
Investment in the SDLP Certificates$1,063 $1,052 $1,263 $1,192 
Yield on the investment in the SDLP Certificates12.0 %12.1 %12.4 %13.2 %
Schedule of Selected Financial Information 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
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,619 $9,733 $(2,511)$9,841 
Cash and cash equivalents7 562 — 569 
Other assets68 79 (61)86 
Total assets$2,694 $10,374 $(2,572)$10,496 
Liabilities
Debt$708 $7,427 $— $8,135 
Subordinated note from ARCC155 — — 155 
Subordinated notes(3)— 1,119 (791)328 
Other liabilities19 176 (13)182 
Total liabilities882 8,722 (804)8,800 
Equity
Contributed capital1,701 — — 1,701 
Accumulated earnings146 — — 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 equity1,812 1,652 (1,768)1,696 
Total liabilities and equity$2,694 $10,374 $(2,572)$10,496 

As of December 31, 2024
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,160 $8,098 $(2,086)$8,172 
Cash and cash equivalents9 967 — 976 
Other assets60 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 liabilities16 266 (13)269 
Total liabilities422 7,841 (727)7,536 
Equity
Contributed capital1,700 — — 1,700 
Accumulated earnings186 — — 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 equity1,807 1,346 (1,413)1,740 
Total liabilities and equity$2,229 $9,187 $(2,140)$9,276 
________________________________________
(1)Consolidated for GAAP purposes only.

(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.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(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.

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $185 and $171 as of June 30, 2025 and December 31, 2024, respectively.

For the Three Months Ended June 30, 2025
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$77 $232 $(76)$233 
Management fees and other income12 2 (12)2 
Total revenues89 234 (88)235 
Expenses
Interest expense14 120 — 134 
Distributions to subordinated notes— 32 (23)9 
Management fees and other expenses4 14 (12)6 
Total expenses18 166 (35)149 
Net operating income71 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 transactions19 (32)(12)(25)
Total net realized and unrealized losses on investments, foreign currency and other transactions (3)(10)(14)(27)
Net income68 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
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$144 $449 $(141)$452 
Management fees and other income24 4 (23)5 
Total revenues168 453 (164)457 
Expenses
Interest expense23 238 — 261 
Distributions to subordinated notes— 64 (46)18 
Management fees and other expenses8 28 (23)13 
Total expenses31 330 (69)292 
Net operating income137 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 transactions44 (19)(21)4 
Total net realized and unrealized gains (losses) on investments, foreign currency and other transactions13 (53)(23)(63)
Net income150 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
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$92 $259 $(90)$261 
Management fees and other income14 3 (13)4 
Total revenues106 262 (103)265 
Expenses
Interest expense10 143 — 153 
Distributions to subordinated notes— 52 (40)12 
Management fees and other expenses3 15 (13)5 
Total expenses13 210 (53)170 
Net operating income93 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 income77 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
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$186 $533 $(182)$537 
Management fees and other income28 6 (26)8 
Total revenues214 539 (208)545 
Expenses
Interest expense20 293 — 313 
Distributions to subordinated notes— 105 (77)28 
Management fees and other expenses7 33 (26)14 
Total expenses27 431 (103)355 
Net operating income187 108 (105)190 
Net realized gains (losses) on investments and foreign currency5 (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 income159 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 
____________________________________

(1)Consolidated for GAAP purposes only.