v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 5. Fair Value of Financial Instruments

Investments

The following table presents fair value measurements of investments as of June 30, 2025 (in thousands):

Fair Value Hierarchy

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Unitranche First Lien

$

-

 

 

$

-

 

 

$

277,560

 

 

$

277,560

 

Equity

 

—

 

 

 

—

 

 

 

10,010

 

 

 

10,010

 

Total Investments

$

—

 

 

$

—

 

 

$

287,570

 

 

$

287,570

 

 

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the six months ended June 30, 2025, based off of the fair value hierarchy as of June 30, 2025 ($ in thousands):

 

 

Unitranche
First Lien

 

Equity

 

 

Total

 

Balance as of December 31, 2024

 

$

-

 

$

-

 

 

$

-

 

Amortized discounts/premiums

 

 

103

 

 

-

 

 

 

103

 

Paid in-kind interest

 

 

1,084

 

 

-

 

 

 

1,084

 

Net change in unrealized appreciation (depreciation)

 

 

1,206

 

 

(439

)

 

 

767

 

Purchases of investments

 

 

275,535

 

 

10,449

 

 

 

285,984

 

Sales/principal repayments/paydowns

 

 

(368

)

 

-

 

 

 

(368

)

Balance as of June 30, 2025

 

$

277,560

 

$

10,010

 

 

$

287,570

 

Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2025

 

$

1,206

 

$

(439

)

 

$

767

 

The following tables present the fair value of Level 3 investments and the ranges of significant unobservable inputs used to value the Company’s Level 3 investments as of June 30, 2025. These ranges represent the significant unobservable inputs that were used in the valuation of each type of investment. These inputs are not representative of the inputs that could have been used in the valuation of any one investment. For example, the highest market yield presented in the table for Unitranche First Lien investments is appropriate for valuing a specific investment but may not be appropriate for valuing any other investment. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 investments.

 

Security Type

 

Fair Value as of
June 30, 2025
(in thousands)

 

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Avg)

Unitranche First Lien

 

$

141,480

 

 

Discounted Cash Flow

 

Discount Rate

 

 

9.7

%

-

 

9.7

%

(9.7%)

 

 

68,514

 

 

Broker Quoted

 

Broker Quote

 

 

 

 

N/A

 

 

 

 

 

67,566

 

 

Transactions Precedent

 

Transaction Price

 

 

 

 

N/A

 

 

 

$

277,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

7,152

 

 

Enterprise Value

 

Comparable EBITDA Multiple

 

 

18.7

x

-

 

18.7

x

(18.7x)

 

 

 

2,858

 

 

Transactions Precedent

 

Transaction Price

 

 

 

 

N/A

 

 

 

$

10,010

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

287,570