| Summary of investment portfolio at cost and fair value |
The following is a summary of the composition of the Company’s investment portfolio at cost and fair value as of June 30, 2025 and December 31, 2024:
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June 30, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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First Lien Debt |
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$ |
— |
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$ |
232,738 |
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$ |
425,101 |
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$ |
657,839 |
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Second Lien Debt |
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— |
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— |
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|
291 |
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|
291 |
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Warrant |
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— |
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— |
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5 |
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|
5 |
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Total Investments |
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$ |
— |
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$ |
232,738 |
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$ |
425,397 |
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$ |
658,135 |
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Percentage of Total |
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0.00 |
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% |
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35.36 |
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% |
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64.64 |
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% |
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100.00 |
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% |
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December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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First Lien Debt |
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$ |
— |
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$ |
321,304 |
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$ |
332,589 |
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$ |
653,893 |
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Warrant |
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|
— |
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— |
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|
32 |
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32 |
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Total Investments |
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$ |
— |
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$ |
321,304 |
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$ |
332,621 |
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$ |
653,925 |
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Percentage of Total |
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0.00 |
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% |
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49.13 |
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% |
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50.87 |
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% |
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100.00 |
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% |
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| Summary of reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs |
The following table provides a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended June 30, 2025:
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Three Months Ended June 30, 2025 |
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First Lien Loan |
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Second Lien Loan |
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Warrant |
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Total Investments |
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Fair value, beginning of period |
$ |
364,707 |
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$ |
456 |
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$ |
— |
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$ |
365,163 |
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Purchase of investments (including PIK) |
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69,426 |
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17 |
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— |
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69,443 |
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Proceeds from principal repayments and sales of investments |
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(5,674 |
) |
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(8 |
) |
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— |
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(5,682 |
) |
Amortization of premium/accretion of discount, net |
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319 |
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20 |
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— |
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339 |
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Net realized gain (loss) on investments |
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58 |
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— |
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— |
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58 |
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Net change in unrealized appreciation (depreciation) on investments |
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(713 |
) |
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(194 |
) |
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5 |
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(902 |
) |
Restructures |
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— |
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— |
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— |
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— |
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Transfers out of Level 3 |
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(9,298 |
) |
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— |
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— |
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(9,298 |
) |
Transfers into Level 3 |
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6,276 |
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— |
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— |
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6,276 |
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Fair value, end of period |
$ |
425,101 |
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$ |
291 |
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$ |
5 |
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$ |
425,397 |
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Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at June 30, 2025 |
$ |
(715 |
) |
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$ |
(194 |
) |
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$ |
5 |
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$ |
(904 |
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Six Months Ended June 30, 2025 |
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First Lien Loan |
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Second Lien Loan |
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Warrant |
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Total Investments |
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Fair value, beginning of period |
$ |
332,589 |
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$ |
— |
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$ |
32 |
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$ |
332,621 |
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Purchase of investments (including PIK) |
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137,931 |
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34 |
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— |
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137,965 |
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Proceeds from principal repayments and sales of investments |
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(35,310 |
) |
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(8 |
) |
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— |
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(35,318 |
) |
Amortization of premium/accretion of discount, net |
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886 |
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25 |
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— |
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|
911 |
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Net realized gain (loss) on investments |
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(883 |
) |
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— |
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— |
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(883 |
) |
Net change in unrealized appreciation (depreciation) on investments |
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624 |
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(288 |
) |
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(27 |
) |
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|
309 |
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Restructures |
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(528 |
) |
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|
528 |
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— |
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— |
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Transfers out of Level 3 |
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(23,452 |
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— |
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— |
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(23,452 |
) |
Transfers into Level 3 |
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13,244 |
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— |
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— |
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13,244 |
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Fair value, end of period |
$ |
425,101 |
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$ |
291 |
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$ |
5 |
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$ |
425,397 |
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Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at June 30, 2025 |
$ |
(1,350 |
) |
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$ |
(288 |
) |
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$ |
(26 |
) |
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$ |
(1,664 |
) |
The following table provides a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended June 30, 2024:
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Three Months Ended June 30, 2024 |
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First Lien Loan |
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Warrant |
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Total Investments |
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Fair value, beginning of period |
$ |
124,071 |
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$ |
2 |
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$ |
124,073 |
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Purchase of investments (including PIK) |
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85,010 |
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— |
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85,010 |
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Proceeds from principal repayments and sales of investments |
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(1,165 |
) |
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— |
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(1,165 |
) |
Amortization of premium/accretion of discount, net |
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173 |
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— |
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|
173 |
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Net realized gain (loss) on investments |
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(2 |
) |
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— |
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(2 |
) |
Net change in unrealized appreciation (depreciation) on investments |
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11 |
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2 |
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13 |
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Transfers out of Level 3 |
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(2,258 |
) |
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— |
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(2,258 |
) |
Transfers to Level 3 |
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7,913 |
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— |
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|
7,913 |
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Fair value, end of period |
$ |
213,753 |
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$ |
4 |
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$ |
213,757 |
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Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at June 30, 2024 |
$ |
37 |
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$ |
2 |
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$ |
39 |
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Six Months Ended June 30, 2024 |
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First Lien Loan |
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Warrant |
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Total Investments |
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Fair value, beginning of period |
$ |
65,862 |
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$ |
2 |
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$ |
65,864 |
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Purchase of investments (including PIK) |
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153,767 |
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— |
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153,767 |
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Proceeds from principal repayments and sales of investments |
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(1,254 |
) |
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— |
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(1,254 |
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Amortization of premium/accretion of discount, net |
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278 |
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— |
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|
278 |
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Net realized gain (loss) on investments |
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(2 |
) |
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— |
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(2 |
) |
Net change in unrealized appreciation (depreciation) on investments |
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40 |
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2 |
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|
42 |
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Transfers out of Level 3 |
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(4,938 |
) |
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— |
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(4,938 |
) |
Fair value, end of period |
$ |
213,753 |
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$ |
4 |
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$ |
213,757 |
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Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at June 30, 2024 |
$ |
39 |
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$ |
2 |
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$ |
41 |
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| Summary of quantitative information about the significant unobservable inputs of the Company's Level 3 financial instruments |
The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments as of June 30, 2025 and December 31, 2024. These tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.
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June 30, 2025 |
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Range |
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Fair Value |
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Valuation Technique |
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Unobservable Input |
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Low |
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High |
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Weighted Average (1) |
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First lien debt (2) |
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$ |
351,162 |
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Discounted cash flows (income approach) |
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Comparative Yield |
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8.45 |
% |
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18.54 |
% |
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10.28 |
% |
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31,153 |
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Recoverability |
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Collateral Value |
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$22.4mm |
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$425.6mm |
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$188.0mm |
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382,315 |
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Warrant |
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|
5 |
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Option pricing model |
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Volatility |
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50.00 |
% |
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80.00 |
% |
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65.00 |
% |
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Time Horizon (years) |
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1.0 yrs |
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5.0 yrs |
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3.0 yrs |
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Total |
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$ |
382,320 |
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(1)Weighted averages are calculated based on fair value of investments. (2)Excluded from the presentation is $42,786 in first lien senior secured debt and $291 in second lien senior secured debt for which the Valuation Designee did not develop the unobservable inputs for the determination of fair value (examples include insufficient liquidity and single source quotation).
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December 31, 2024 |
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Range |
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Fair Value |
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Valuation Technique |
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Unobservable Input |
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Low |
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High |
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Weighted Average (1) |
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First lien debt (2) |
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$ |
247,699 |
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Discounted cash flows (income approach) |
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Comparative Yield |
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|
8.56 |
% |
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14.23 |
% |
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10.40 |
% |
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|
22,492 |
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Recoverability |
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Collateral Value |
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$19.6mm |
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$367.9mm |
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$132.3mm |
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270,191 |
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Warrant |
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|
32 |
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Option pricing model |
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Volatility |
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78.00 |
% |
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|
88.00 |
% |
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83.00 |
% |
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Time Horizon (years) |
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5.0 yrs |
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10.0 yrs |
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7.5 yrs |
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Total |
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$ |
270,223 |
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(1)Weighted averages are calculated based on fair value of investments. (2)Excluded from the presentation is $62,398 in first lien senior secured debt for which the Valuation Designee did not develop the unobservable inputs for the determination of fair value (examples include insufficient liquidity and single source quotation).
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