v3.25.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair Value Disclosures
The following table presents fair value measurements of investments, by major class, as of June 30, 2025 and December 31, 2024, according to the fair value hierarchy:
As of June 30, 2025Level 1Level 2Level 3
Measured at
Net Asset Value (2)
Total
Assets:
First-Lien Debt
$— $272,752 $1,463,396 $— $1,736,148 
Subordinated Debt (1)
— — 101,193 — 101,193 
Equity Investments— — 13,728 13,236 26,964 
Cash Equivalents115,770 — — — 115,770 
Total Investments and Cash Equivalents
$115,770 $272,752 $1,578,317 $13,236 $1,980,075 
_______________
(1)As of June 30, 2025, Subordinated Debt was further comprised of second lien term loans and/or second lien notes of $54,064, mezzanine debt of $45,952, and structured debt of $1,177.
(2)Certain investments that are measured at fair value using NAV as practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation to the amounts presented in the consolidated statements of assets and liabilities.
As of December 31, 2024Level 1Level 2Level 3Total
Assets:
First-Lien Debt
$— $288,818 $1,270,084 $1,558,902 
Subordinated Debt (1)
— — 102,993 102,993 
Equity Investments— — 19,714 19,714 
Cash Equivalents63,223 — — 63,223 
Total$63,223 $288,818 $1,392,791 $1,744,832 
_______________
(1)As of December 31, 2024, Subordinated Debt was further comprised of second lien term loans and/or second lien notes of $49,896, mezzanine debt of $52,014, and structured debt of $1,083.
The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the following periods:
As of and for the Three Months Ended June 30, 2025
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of March 31, 2025
$1,416,119 $111,897 $20,671 $1,548,687 
Purchase of investments119,231 1,512 1,598 122,341 
Proceeds from principal repayments and sales of investments(53,866)(13,636)— (67,502)
Payment-in-kind interest143 1,495 — 1,638 
Amortization of premium/accretion of discount, net608 91 — 699 
Net realized gain (loss) on investments(2,837)39 — (2,798)
Net change in unrealized appreciation (depreciation) on investments(4,121)(205)691 (3,635)
Transfers out of Level 3 (1)
(13,801)— (9,232)(23,033)
Transfers to Level 3 (1)
1,920 — — 1,920 
Balance as of June 30, 2025$1,463,396 $101,193 $13,728 $1,578,317 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2025$(6,685)$(164)$691 $(6,158)

As of and for the Six Months Ended June 30, 2025
First-Lien Debt
Subordinated DebtEquity InvestmentsTotal
Balance as of January 1, 2025
$1,270,084 $102,993 $19,714 $1,392,791 
Purchase of investments316,850 9,320 1,607 327,777 
Proceeds from principal repayments and sales of investments(110,538)(13,642)— (124,180)
Payment-in-kind interest177 3,006 — 3,183 
Amortization of premium/accretion of discount, net1,644 214 — 1,858 
Net realized gain (loss) on investments(2,613)39 — (2,574)
Net change in unrealized appreciation (depreciation) on investments(10,397)(737)356 (10,778)
Transfers out of Level 3 (1)
(7,980)— (7,949)(15,929)
Transfers to Level 3 (1)
6,169 — — 6,169 
Balance as of June 30, 2025$1,463,396 $101,193 $13,728 $1,578,317 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2025
$(11,162)$(844)$356 $(11,650)
________________
(1) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2025, transfers between Level 3 and Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies, and investments measured at NAV, which are no longer categorized within the fair value hierarchy.
As of and for the Three Months Ended June 30, 2024
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of March 31, 2024$421,782 $100,189 $12,873 $534,844 
Purchase of investments185,542 6,468 1,450 193,460 
Proceeds from principal repayments and sales of investments(21,360)(10,309)(420)(32,089)
Payment-in-kind interest210 818 — 1,028 
Amortization of premium/accretion of discount, net(1,670)69 — (1,601)
Net realized gain (loss) on investments137 — (29)108 
Net change in unrealized appreciation (depreciation) on investments682 (378)568 872 
Transfers out of Level 3 (1)
(24,116)— — (24,116)
Balance as of June 30, 2024$561,207 $96,857 $14,442 $672,506 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2024
$680 $(380)$570 $870 
As of and for the Six Months Ended June 30, 2024
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of January 1, 2024$354,396 $101,930 $10,224 $466,550 
Purchase of investments259,910 6,882 4,552 271,344 
Proceeds from principal repayments and sales of investments(36,794)(13,114)(775)(50,683)
Payment-in-kind interest346 1,566 — 1,912 
Amortization of premium/accretion of discount, net(1,426)143 — (1,283)
Net realized gain (loss) on investments182 74 (30)226 
Net change in unrealized appreciation (depreciation) on investments(1,465)(624)471 (1,618)
Transfers out of Level 3 (1)
(13,942)— — (13,942)
Balance as of June 30, 2024
$561,207 $96,857 $14,442 $672,506 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2024
$(1,355)$(598)$510 $(1,443)
________________
(1) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2024, transfers out of Level 3 to Level 2 were a result of changes in the observability of significant inputs for one portfolio company.
Significant Unobservable Inputs
ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of June 30, 2025 and December 31, 2024 were as follows:
Investment TypeFair Value at June 30, 2025Valuation TechniquesUnobservable InputsRangesWeighted Average
First-Lien Debt$1,308,161 Yield MethodMarket Yield Discount Rate5.31 %16.31 %9.10 %
First-Lien Debt19,924 Market ApproachEBITDA Multiple4.75x9.75x9.32x
First-Lien Debt2,057 Market ApproachRevenue Multiple0.40x12.00x3.02x
Subordinated Debt94,615 Yield MethodMarket Yield Discount Rate11.82 %26.00 %15.12 %
Subordinated Debt5,070 Market ApproachEBITDA Multiple10.75x14.00x11.69x
Equity Investments11,670 Market ApproachEBITDA Multiple4.75x20.00x11.93x
Equity Investments 213Market ApproachRevenue Multiple0.40x10.00x7.61x
Equity Investments 700Yield MethodMarket Yield Discount Rate8.36 %15.81 %8.41 %
Total$1,442,410 
First Lien Debt in the amount of $133,254, Subordinated Debt in the amount of $1,508, and equity investments in the amount of $1,145 at June 30, 2025 have been excluded from the table above as the investments are valued using recent transaction price.
Investment TypeFair Value at December 31, 2024Valuation TechniquesUnobservable InputsRangesWeighted Average
First-Lien Debt$1,153,845 Yield MethodImplied Discount Rate5.83 %19.20 %9.80 %
First-Lien Debt8,969 Market ApproachEBITDA Multiple8.00x15.50x12.59x
Subordinated Debt95,793 Yield MethodImplied Discount Rate11.82 %25.00 %15.20 %
Subordinated Debt1,765 Market ApproachEBITDA Multiple14.00x14.00x14.00x
Equity Investments15,272 Market ApproachEBITDA Multiple8.00x22.00x12.98x
Equity Investments166 Market ApproachARR Multiple5.00x5.00x5.00x
Equity Investments657 Yield MethodImplied Discount Rate8.00 %16.06 %13.79 %
Total$1,276,467 
First Lien Debt in the amount of $107,270, Subordinated Debt in the amount of $5,435, and equity investments in the amount of $3,619 at December 31, 2024 have been excluded from the table above as the investments are valued using recent transaction price.
Debt investments are generally valued using the yield method. Under the yield method, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to its total enterprise value, and the rights and remedies of the Fund’s investment within the portfolio company’s capital structure. Debt investments also may be valued using a market approach. The market approach utilizes market value (EBITDA) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. Certain factors are considered when selecting the appropriate companies whose multiples are used in the valuation. These factors may include the type of organization, similarity to the business being valued and relevant risk factors, as well as size, profitability and growth expectations. A recent transaction, if applicable, also may be factored into the valuation if the transaction price is believed to be an indicator of value.
Equity investments are generally valued using a market approach, which utilizes market value multiples (EBITDA or revenue) of publicly traded comparable companies and available precedent sales transactions of comparable companies. The selected multiple is used to estimate the enterprise value of the underlying investment.
The significant unobservable input used in the yield method is a discount rate based on comparable market yields. Significant increases in discount rates in isolation would result in a significantly lower fair value measurement. The significant unobservable input used in the market approach is the performance multiple, which may include a revenue multiple, EBITDA multiple, or forward-looking metrics. The multiple is used to estimate the enterprise value of the underlying investment. An increase or decrease in the multiple would result in an increase or decrease, respectively, in the fair value.
Alternative valuation methodologies may be used as deemed appropriate for debt or equity investments and may include, but are not limited to, a market approach, income approach, or liquidation (recovery) approach.
Weighted average inputs are calculated based on the relative fair value of the investments.
Financial Instruments disclosed but not carried at fair value
The carrying value and fair value of the Fund’s debt obligations were as follows:
June 30, 2025December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
Bank of America Credit Facility$176,500 $176,500 $325,000 $325,000 
Scotiabank Credit Facility36,139 36,139 278,500 

278,500 
SMBC Revolving Credit Facility21,000 21,000 — — 
2024 Debt306,000 306,746 306,000 307,609 
2025 Debt355,000 355,510 — — 
Total
$894,639 $895,895 $909,500 $911,109 
The carrying value of the Fund's credit facilities approximates their fair value. These fair value measurements were based on significant inputs not observable and thus represent Level 3 measurements.
The fair value of the 2024 Debt and 2025 Debt (as defined in Note 6) was based on market quotations(s) received from broker/dealer(s). The fair value measurement was based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly and thus represent Level 2 measurements.