v3.25.2
Derivatives and Hedging Activities
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities Derivatives and Hedging Activities
Currency Forward Contracts
Since we first originated loans outside the United States in September 2024, we enter into currency forward contracts to help mitigate the impact of changes in foreign currency exchange rates on our investments and financing transactions denominated in currencies other than the U.S. dollar. Despite being economic hedges, we have elected not to treat our foreign currency forwards as hedges for accounting purposes and, therefore, the realized and unrealized gains and losses associated with such instruments are included in gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income. Gain (loss) on foreign currency transactions, net reflects the net financial impact resulting from changes in exchange rates between the time we enter into foreign currency transactions and when they are settled.
The following table illustrates the unrealized foreign exchange impact recognized in the condensed consolidated statements of comprehensive income in the three and six months ended June 30, 2025, of our loans and secured financing arrangements as well as the offsetting gain (loss) on derivative instruments in the periods:
$ in thousandsThree Months Ended June 30, 2025Six Months Ended June 30, 2025
Unrealized foreign exchange gain (loss) on loans$25,479 $36,303 
Unrealized foreign exchange gain (loss) on secured financing facilities(20,404)(29,073)
Gain (loss) on derivative instruments, net(5,362)(7,542)
Net impact of hedged foreign exchange$(287)$(312)
The following table summarizes changes in the notional amount of our currency forward contracts during the six months ended June 30, 2025:
Local Currency
In thousandsNotional Amount as of December 31, 2024AdditionsSettlement,
Termination,
Expiration
or Exercise		Notional Amount as of June 30, 2025Notional Amount as of June 30, 2025
Buy USD / Sell EUR Forward€39,474 €— €(1,717)€37,757 $42,876 
Buy USD / Sell GBP Forward£19,417 £33,834 £(989)£52,262 $70,372 
The table below presents the fair value of our currency forward contracts, as well as their classification on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024:
$ in thousandsFair Value as of
June 30, 2025December 31, 2024
Derivative Assets$— $4,064 
Derivative Liabilities$3,590 $— 
The following table summarizes the effect of currency forward contracts reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2025:
$ in thousandsThree Months Ended June 30, 2025
Derivatives not designated as hedging instrumentsRealized gain (loss) on derivative instruments, netUnrealized gain (loss), netGain (loss) on derivative instruments, net
Currency Forward Contracts$(4)$(5,358)$(5,362)