Investments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Investments and Fair Value Measurements [Abstract]

Investment Portfolio at Cost and Fair Value

The composition of the Company’s investment portfolio at cost and fair value as of June 30, 2025 and December 31, 2024 were as follows:


	June 30, 2025							December 31, 2024
	Amortized Cost		Fair Value		% of Total Investments at Fair Value			Amortized Cost		Fair Value		% of Total Investments at Fair Value
First lien debt	$	901,927,331	$	904,946,788		90.58	%	$	662,123,702	$	663,933,579		87.76	%
Second lien debt		75,323,056		76,975,283		7.70	%		73,104,525		75,443,518		9.97	%
Equity		15,878,199		17,231,707		1.72	%		15,878,199		17,146,234		2.27	%
Total investments	$	993,128,586	$	999,153,778		100.00	%	$	751,106,426	$	756,523,331		100.00	%

The industry composition of investments based on fair value as of June 30, 2025 and December 31, 2024 were as follows:


	June 30, 2025			December 31, 2024
Oil, Gas & Consumable Fuels		10.32	%		4.34	%
Health Care Providers & Services		9.35			3.25
Building Products(1)		8.56			11.15
Entertainment		8.37			—
Electrical Equipment		7.16			4.47
Electric Utilities		6.26			5.04
Household Durables		5.33			7.14
Hotels, Restaurants & Leisure		5.12			5.96
Specialty Retail		5.07			5.77
Machinery		4.30			6.42
Automobile Components		4.14			5.42
Construction & Engineering		3.86			7.09
Commercial Services & Supplies		3.84			4.99
IT Services		3.70			5.45
Trading Companies & Distributors		3.07			4.18
Aerospace & Defense		2.62			2.69
Automobiles		1.91			2.68
Independent Power and Renewable Electricity Producers		1.90			2.94
Textiles, Apparel & Luxury Goods		0.96			1.29
Chemicals		0.61			0.37
Containers & Packaging		0.60			0.79
Professional Services		0.52			0.41
Personal Care Products		0.40			0.71
Gas Utilities		0.39			—
Software		0.34			0.71
Air Freight & Logistics		0.26			0.35
Distributors		0.23			0.26
Household Products		0.23			0.67
Insurance		0.20			0.26
Food Products		0.17			—
Metals & Mining		0.12			0.39
Ground Transportation		0.09			0.13
Energy Equipment & Services		—			3.99
Diversified Consumer Services		—			0.26
Technology Hardware, Storage & Peripherals		—			0.24
Construction Materials		—			0.19
Total		100.00	%		100.00	%

(1)

The industry classification for the issuer Globe Electric Company Inc was changed from Household Durables to Building Products as of March 31, 2025. This change was applied retrospectively to the December 31, 2024 Consolidated Schedule of Investments.

The geographic composition of investments at cost and fair value as of June 30, 2025 and December 31, 2024 were as follows:


	June 30, 2025										December 31, 2024
	Amortized Cost		Fair Value		% of Total Investments at Fair Value			Fair Value as % of Net Assets			Amortized Cost		Fair Value		% of Total Investments at Fair Value			Fair Value as % of Net Assets
United States	$	879,067,175	$	882,786,472		88.36	%		155.85	%	$	645,248,857	$	651,040,720		86.06	%		145.63	%
Canada		95,200,003		95,826,116		9.59	%		16.92	%		88,461,009		88,668,828		11.72	%		19.83	%
Germany		17,422,007		19,120,348		1.91	%		3.38	%		17,396,560		16,813,783		2.22	%		3.76	%
United Kingdom		1,439,401		1,420,842		0.14	%		0.25	%		—		—		—			—
Total	$	993,128,586	$	999,153,778		100.00	%		176.40	%	$	751,106,426	$	756,523,331		100.00	%		169.22	%

Fair Value Hierarchy of Investments

The following tables present the fair value hierarchy of the Company’s investment portfolio as of June 30, 2025 and December 31, 2024:


	June 30, 2025
Assets	Level 1		Level 2		Level 3		Total
First Lien Debt	$	—	$	122,514,557	$	782,432,231	$	904,946,788
Second Lien Debt		—		—		76,975,283		76,975,283
Equity		629,816		—		—		629,816
Subtotal	$	629,816	$	122,514,557	$	859,407,514	$	982,551,887
Investment measured at net asset value(1)								16,601,891
Total investments							$	999,153,778

(1)

The Company, as a practical expedient, estimates the fair value of its investment in KKR Tinder TFC Aggregator L.P. using the net asset value of the Company’s members’ interest in the entity. As such, the fair value has not been classified within the fair value hierarchy.


	December 31, 2024
Assets	Level 1		Level 2		Level 3		Total
First Lien Debt	$	—	$	132,260,957	$	531,672,622	$	663,933,579
Second Lien Debt		—		—		75,443,518		75,443,518
Equity		918,663		—		—		918,663
Subtotal	$	918,663	$	132,260,957	$	607,116,140	$	740,295,760
Investment measured at net asset value(1)								16,227,571
Total investments							$	756,523,331

(1)

Fair Value of Investments

The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the three and six months ended June 30, 2025 and June 30, 2024, respectively:


	First Lien Debt			Second Lien Debt			Total
Balance as of March 31, 2025	$	621,187,775		$	76,315,930		$	697,503,705
Purchases of investments		212,151,503			273,761			212,425,264
Proceeds from principal pre-payments and sales of investments		(71,275,923	)		—			(71,275,923	)
Payment-in-kind		529,517			813,637			1,343,154
Net accretion of discount on investments		2,301,821			182,994			2,484,815
Net realized gain (loss)		419,390			—			419,390
Net change in unrealized appreciation/(depreciation)		5,091,087			(611,039	)		4,480,048
Transfers into Level 3		18,615,493			—			18,615,493
Transfers out of Level 3		(6,588,432	)		—			(6,588,432	)
Balance as of June 30, 2025	$	782,432,231		$	76,975,283		$	859,407,514

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	4,032,931		$	(611,039	)	$	3,421,892


	First Lien Debt			Second Lien Debt			Total
Balance as of December 31, 2024	$	531,672,622		$	75,443,518		$	607,116,140
Purchases of investments		353,276,519			273,761			353,550,280
Proceeds from principal pre-payments and sales of investments		(113,860,187	)		—			(113,860,187	)
Payment-in-kind		1,013,699			1,588,770			2,602,469
Net accretion of discount on investments		3,831,807			355,999			4,187,806
Net realized gain (loss)		1,869,187			—			1,869,187
Net change in unrealized appreciation/(depreciation)		3,383,835			(686,765	)		2,697,070
Transfers into Level 3		6,269,653			—			6,269,653
Transfers out of Level 3		(5,024,904	)		—			(5,024,904	)
Balance as of June 30, 2025	$	782,432,231		$	76,975,283		$	859,407,514

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	4,177,151		$	(686,765	)	$	3,490,386

Level 2 investments are valued using prices obtained from pricing services. The Company had $12,027,061 and $1,244,749 in transfers into Level 3 on a net basis during the three and six months ended June 30, 2025, respectively.


	First Lien Debt			Second Lien Debt			Total
Balance as of March 31, 2024	$	215,939,500		$	19,803,414		$	235,742,914
Purchases of investments		140,921,962			—			140,921,962
Proceeds from principal pre-payments and sales of investments		(31,046,387	)		—			(31,046,387	)
Payment-in-kind		465,108			692,137			1,157,245
Net accretion of discount on investments		835,950			119,644			955,594
Net realized gain (loss)		282,797			—			282,797
Net change in unrealized appreciation/(depreciation)		171,879			(43,301	)		128,578
Transfers into Level 3		9,255,423			—			9,255,423
Transfers out of Level 3		(990,000	)		—			(990,000	)
Balance as of June 30, 2024	$	335,836,232		$	20,571,894		$	356,408,126

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	171,879		$	(43,301	)	$	128,578


	First Lien Debt			Second Lien Debt			Total
Balance as of December 31, 2023	$	138,418,209		$	19,050,076		$	157,468,285
Purchases of investments		239,317,012			—			239,317,012
Proceeds from principal pre-payments and sales of investments		(36,529,551	)		—			(36,529,551	)
Payment-in-kind		766,126			1,373,534			2,139,660
Net accretion of discount on investments		1,257,980			233,496			1,491,476
Net realized gain (loss)		300,109			—			300,109
Net change in unrealized appreciation/(depreciation)		520,025			(85,212	)		434,813
Transfers into Level 3		1,981,667			—			1,981,667
Transfers out of Level 3		(10,195,345	)		—			(10,195,345	)
Balance as of June 30, 2024	$	335,836,232		$	20,571,894		$	356,408,126

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	520,025		$	(85,212	)	$	434,813

Valuation Techniques and Significant Unobservable Inputs of Level 3 Investments

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of June 30, 2025 and December 31, 2024 were as follows:


Investment Type	Fair Value as of June 30, 2025		Valuation Technique	Unobservable Input	Range	Weighted Average (1)
Second Lien Debt	$	76,975,283	Discounted cash flow	Discount rate	11.42% - 15.50%	12.71%
First Lien Debt		751,691,914	Discounted cash flow	Discount rate	8.55% - 16.50%	10.89%
		30,740,317	Market quotations	Broker quoted price	96.50 - 100.13		99.07
		859,407,514

(1)

Unobservable inputs were weighted by the relative fair value of investments.


Investment Type	Fair Value as of December 31, 2024		Valuation Technique	Unobservable Input	Range	Weighted Average (2)
Second Lien Debt	$	75,443,518	Discounted cash flow	Discount rate	11.75% - 15.50%	12.86%
First Lien Debt		450,508,252	Discounted cash flow	Discount rate	9.34% - 17.00%	11.56%
		16,682,655	Market quotations	Broker quoted price	98.25 - 101.00		99.94
		64,481,715	Transactional Value(1)	N/A	N/A	N/A
	$	607,116,140

(1)

Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio companies since the transaction date.

(2)

Unobservable inputs were weighted by the relative fair value of investments.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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