| Fair Value Measurement and Disclosures |
3.Fair Value Measurement and Disclosures The following tables summarize the valuation of the Company’s investments and cash and cash equivalents in the fair value hierarchy levels as of June 30, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
Description |
|
Total |
|
Level I |
|
Level II |
|
Level III |
|
Investments
Measured at NAV(1)(2)(3) |
|
Series I |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
203,353 |
|
$ |
- |
|
$ |
- |
|
$ |
91,266 |
|
$ |
112,087 |
|
Investments in Loans |
|
|
75,961 |
|
|
- |
|
|
4,463 |
|
|
71,498 |
|
|
- |
|
Total Investments |
|
$ |
279,314 |
|
$ |
- |
|
$ |
4,463 |
|
$ |
162,764 |
|
$ |
112,087 |
|
Foreign Currency Contracts |
|
|
(520 |
) |
|
- |
|
|
(520 |
) |
|
|
|
- |
|
Total Derivative Liabilities |
|
$ |
(520 |
) |
$ |
- |
|
$ |
(520 |
) |
$ |
- |
|
$ |
- |
|
Cash and cash equivalents |
|
|
123,709 |
|
|
123,709 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
402,503 |
|
$ |
123,709 |
|
$ |
3,943 |
|
$ |
162,764 |
|
$ |
112,087 |
|
Series II |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
481,458 |
|
$ |
- |
|
$ |
- |
|
$ |
216,081 |
|
$ |
265,377 |
|
Investments in Loans |
|
|
179,847 |
|
|
- |
|
|
10,568 |
|
|
169,279 |
|
|
- |
|
Total Investments |
|
$ |
661,305 |
|
$ |
- |
|
$ |
10,568 |
|
$ |
385,360 |
|
$ |
265,377 |
|
Foreign Currency Contracts |
|
|
(1,315 |
) |
|
- |
|
|
(1,315 |
) |
|
|
|
- |
|
Total Derivative Liabilities |
|
$ |
(1,315 |
) |
$ |
- |
|
$ |
(1,315 |
) |
$ |
- |
|
$ |
- |
|
Cash and cash equivalents |
|
|
294,564 |
|
|
294,564 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
954,554 |
|
$ |
294,564 |
|
$ |
9,253 |
|
$ |
385,360 |
|
$ |
265,377 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
684,811 |
|
$ |
- |
|
$ |
- |
|
$ |
307,347 |
|
$ |
377,464 |
|
Investments in Loans |
|
|
255,808 |
|
|
- |
|
|
15,031 |
|
|
240,777 |
|
|
- |
|
Total Investments |
|
$ |
940,619 |
|
$ |
- |
|
$ |
15,031 |
|
$ |
548,124 |
|
$ |
377,464 |
|
Foreign Currency Contracts |
|
|
(1,835 |
) |
|
- |
|
|
(1,835 |
) |
|
|
|
- |
|
Total Derivative Liabilities |
|
$ |
(1,835 |
) |
$ |
- |
|
$ |
(1,835 |
) |
$ |
- |
|
$ |
- |
|
Cash and cash equivalents |
|
|
418,273 |
|
|
418,273 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
1,357,057 |
|
$ |
418,273 |
|
$ |
13,196 |
|
$ |
548,124 |
|
$ |
377,464 |
|
(1)Included within certain investments measured at NAV were Level III investments. Series I, Series II, and the Company Level III amounts of these investments were $79,941, $189,213, and $269,154, respectively. (2)As of June 30, 2025, Series I, Series II and the Company had unfunded commitments of $77,081, $182,417, and $259,498, respectively, related to investments measured at NAV. (3) The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of assets and liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
Description |
|
Total |
|
Level I |
|
Level II |
|
Level III |
|
Investments
Measured at NAV(1)(2(3)(4) |
|
Series I |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
85,694 |
|
$ |
- |
|
$ |
- |
|
$ |
32,508 |
|
$ |
53,186 |
|
Investments in Loans(3) |
|
|
79,882 |
|
|
- |
|
|
3,995 |
|
|
75,887 |
|
|
- |
|
Investments in Warrants |
|
|
1,076 |
|
|
- |
|
|
- |
|
|
1,076 |
|
|
- |
|
Total Investments |
|
$ |
166,652 |
|
$ |
- |
|
$ |
3,995 |
|
$ |
109,471 |
|
$ |
53,186 |
|
Cash and cash equivalents |
|
|
84,681 |
|
|
84,681 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
251,333 |
|
$ |
84,681 |
|
$ |
3,995 |
|
$ |
109,471 |
|
$ |
53,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Series II |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
239,239 |
|
$ |
- |
|
$ |
- |
|
$ |
90,755 |
|
$ |
148,484 |
|
Investments in Loans(3) |
|
|
223,010 |
|
|
- |
|
|
11,155 |
|
|
211,855 |
|
|
- |
|
Investments in Warrants |
|
|
3,004 |
|
|
- |
|
|
- |
|
|
3,004 |
|
|
- |
|
Total Investments |
|
$ |
465,253 |
|
$ |
- |
|
$ |
11,155 |
|
$ |
305,614 |
|
$ |
148,484 |
|
Cash and cash equivalents |
|
|
236,861 |
|
|
236,861 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
702,114 |
|
$ |
236,861 |
|
$ |
11,155 |
|
$ |
305,614 |
|
$ |
148,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
324,933 |
|
$ |
- |
|
$ |
- |
|
$ |
123,263 |
|
$ |
201,670 |
|
Investments in Loans(3) |
|
|
302,892 |
|
|
- |
|
|
15,150 |
|
|
287,742 |
|
|
- |
|
Investments in Warrants |
|
|
4,080 |
|
|
- |
|
|
- |
|
|
4,080 |
|
|
- |
|
Total Investments |
|
$ |
631,905 |
|
$ |
- |
|
$ |
15,150 |
|
$ |
415,085 |
|
$ |
201,670 |
|
Cash and cash equivalents |
|
|
321,542 |
|
|
321,542 |
|
|
- |
|
|
- |
|
|
- |
|
Total |
|
$ |
953,447 |
|
$ |
321,542 |
|
$ |
15,150 |
|
$ |
415,085 |
|
$ |
201,670 |
|
(1)Included within certain investments measured at NAV were Level III investments. Series I, Series II, and the Company Level III amounts of these investments were $30,248, $84,447, and $114,695, respectively. (2)As of December 31, 2024, Series I, Series II, and the Company had unfunded commitments of $7,975, $22,265 and $30,240 respectively, related to investments measured at NAV. (3)The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of assets and liabilities. (4)On October 23, 2024, the Company entered into a Sale and Purchase Agreement to sell its interest in Yondr Group, L.P. As of December 31, 2024, the sale was subject to conditions to complete. Transfers of investments between levels, if any, shall be recorded at the end of the period. There were no transfers in or out of the Company’s investments that are classified as Level III investments for the three and six months ended June 30, 2025. The following tables show changes in the fair value of our Level III investment during the three and six months ended June 30, 2025:
|
|
|
|
|
Description |
|
Level III Investments |
|
Series I |
|
|
|
Balance as of December 31, 2024 |
|
$ |
109,471 |
|
Purchases, including capitalized PIK and rebalancing transaction |
|
|
67,779 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
591 |
|
Sale and syndication |
|
|
(71 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2025 |
|
$ |
177,770 |
|
Purchases, including capitalized PIK and rebalancing transaction |
|
$ |
24,525 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
(1,657 |
) |
Sale and syndication |
|
|
(37,874 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2025 |
|
$ |
162,764 |
|
Series II |
|
|
|
Balance as of December 31, 2024 |
|
$ |
305,614 |
|
Purchases, including capitalized PIK and rebalancing transaction |
|
|
135,806 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
1,505 |
|
Sales and syndication |
|
|
(177 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2025 |
|
$ |
442,748 |
|
Purchases, including capitalized PIK and rebalancing transaction |
|
$ |
40,366 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
(5,864 |
) |
Sales and syndication |
|
|
(91,890 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2025 |
|
$ |
385,360 |
|
Total |
|
|
|
Balance as of December 31, 2024 |
|
$ |
415,085 |
|
Purchases, including capitalized PIK |
|
|
203,585 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
2,096 |
|
Sales and syndication |
|
|
(248 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2025 |
|
$ |
620,518 |
|
Purchases, including capitalized PIK |
|
$ |
64,891 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
(7,521 |
) |
Sales and syndication |
|
|
(129,764 |
) |
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2025 |
|
$ |
548,124 |
|
The total change in unrealized appreciation included in the Consolidated Statements of Operations within net change in unrealized appreciation/(depreciation) from investments attributable to Level III investments still held at June 30, 2025 for the three months ended June 30, 2025 for Series I, Series II, and the Company were $(1,657), $(5,864), and $(7,521), respectively; and for the six months ended June 30, 2025 for Series I, Series II, and the Company were $(1,066), $(4,359), and $(5,425), respectively. There were no transfers in or out of the Company’s investments that are classified as Level III investments for the three and six months ended June 30, 2024. The following table shows the change in the fair value of our Level III investment during the three and six months ended June 30, 2024:
|
|
|
|
|
Description |
|
Level III Investments |
|
Series I |
|
|
|
Balance as December 31, 2023 |
|
$ |
20,442 |
|
Purchases, including capitalized Paid-in-Kind Interest |
|
|
16,799 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
369 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2024 |
|
$ |
37,610 |
|
Purchases, including capitalized PIK |
|
|
27,581 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
1,391 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2024 |
|
$ |
66,582 |
|
Series II |
|
|
|
Balance as December 31, 2023 |
|
$ |
94,975 |
|
Purchases, including capitalized Paid-in-Kind Interest |
|
|
56,563 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
1,242 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2024 |
|
$ |
152,780 |
|
Purchases, including capitalized PIK |
|
|
82,213 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
4,070 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2024 |
|
$ |
239,063 |
|
Total |
|
|
|
Balance as December 31, 2023 |
|
$ |
115,417 |
|
Purchases, including capitalized Paid-in-Kind Interest |
|
|
73,362 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
1,611 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of March 31, 2024 |
|
$ |
190,390 |
|
Purchases, including capitalized PIK |
|
|
109,794 |
|
Net change in unrealized appreciation/(depreciation) from investments |
|
|
5,461 |
|
Transfers out of Level III |
|
|
- |
|
Transfers into Level III |
|
|
- |
|
Balance as of June 30, 2024 |
|
$ |
305,645 |
|
The total change in unrealized appreciation included in the Consolidated Statements of Operations within net change in unrealized appreciation/(depreciation) from investments attributable to Level III investments still held at June 30, 2024 for the three months ended June 30, 2024 for Series I, Series II, and the Company were $1,391, $4,070, and $5,461, respectively; and for the six months ended June 30, 2024 for Series I, Series II, the Company were $1,760, $5,312, and $7,072, respectively. The following tables provide quantitative measure used to determine the fair values of the Level III investments as of June 30, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
Asset Type |
|
Level III Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Input |
Series I |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
91,266 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.50% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
|
|
|
|
|
|
|
Exit Cap Rate |
|
7.50% |
|
|
|
|
|
Transaction Price |
|
N/A |
|
N/A |
Investments in Loans |
|
|
71,498 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.88% - 18.20% |
|
|
|
|
|
Transaction Price(1) |
|
Weighted Average Price |
|
96.31% -101.25% |
|
|
|
|
|
|
|
N/A |
|
N/A |
Total |
|
$ |
162,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series II |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
216,081 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.50% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
|
|
|
|
|
|
|
Exit Cap Rate |
|
7.50% |
|
|
|
|
|
Transaction Price |
|
N/A |
|
N/A |
Investments in Loans |
|
|
169,279 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.88% - 18.20% |
|
|
|
|
|
Transaction Price(1) |
|
Weighted Average Price |
|
96.31% -101.25% |
|
|
|
|
|
|
|
N/A |
|
N/A |
Total |
|
$ |
385,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
307,347 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.50% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
|
|
|
|
|
|
|
Exit Cap Rate |
|
7.50% |
|
|
|
|
|
Transaction Price |
|
N/A |
|
N/A |
Investments in Loans |
|
|
240,777 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.88% - 18.20% |
|
|
|
|
|
Transaction Price(1) |
|
Weighted Average Price |
|
96.31% -101.25% |
|
|
|
|
|
|
|
N/A |
|
N/A |
Total |
|
$ |
548,124 |
|
|
|
|
|
|
|
(1)As of June 30, 2025, none of Series I, Series II, or the Company earned or capitalized any PIK income on investments in loans valued using Transaction Price. For the six months ended June 30, 2025, Series I, Series II and the Company, earned and capitalized PIK income of $3,553, $8,849, and $12,402 respectively.
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
Asset Type |
|
Level III Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Input |
Series I |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
32,508 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
15.00% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
Investments in Loans(3) |
|
|
75,887 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.18% - 10.66% |
|
|
|
|
|
Transaction Price (1) |
|
N/A |
|
N/A |
Investments in Warrants |
|
|
1,076 |
|
|
Transaction Price |
|
N/A |
|
N/A |
Total |
|
$ |
109,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series II |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
90,755 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
15.00% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
Investments in Loans(3) |
|
|
211,855 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.18% - 10.66% |
|
|
|
|
|
Transaction Price (1) |
|
N/A |
|
N/A |
Investments in Warrants |
|
|
3,004 |
|
|
Transaction Price |
|
N/A |
|
N/A |
Total |
|
$ |
305,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Investments in Partnership Investment Vehicle |
|
$ |
123,263 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
15.00% - 15.10% |
|
|
|
|
|
|
|
Terminal Multiple |
|
8.5x - 14.3x |
Investments in Loans(3) |
|
|
287,742 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.18% - 10.66% |
|
|
|
|
|
Transaction Price (1) |
|
N/A |
|
N/A |
Investments in Warrants |
|
|
4,080 |
|
|
Transaction Price |
|
N/A |
|
N/A |
Total |
|
$ |
415,085 |
|
|
|
|
|
|
|
(1)The Investments in Loans valued at Transaction Price include certain loans held by the Company that, pursuant to their contractual terms, produce PIK income. PIK income computed at the contractual rate is accrued into income and reflected as a receivable up to the capitalization date. For the year ended December 31, 2024, Series I, Series II and the Company, earned and capitalized PIK income of $3,182, $9,313, and $12,495, respectively. Unconsolidated Significant Subsidiary The following table presents summarized financial information of the applicable significant subsidiaries in which the Company, Series I, and Series II has an indirect equity interest for the six months ended June 30, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2025(1) |
|
For the six months ended June 30, 2024 |
|
Total Revenue |
$ |
|
136,856 |
|
$ |
|
105,921 |
|
Gross profit |
|
|
57,316 |
|
|
|
46,525 |
|
Income (loss) before taxes |
|
|
(22,049 |
) |
|
|
(46,347 |
) |
Net income (loss) |
|
|
(20,046 |
) |
|
|
(46,489 |
) |
(1) As of June 30, 2025, none of the assets meets the criteria to be classified as Unconsolidated Significant Subsidiary. The summarized financial information presented for the six month ended June 30, 2025 is included solely for comparative purposes. The summarized financial information above does not represent the Company’s proportionate share.
|