v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
(10)
INCOME TAXES

For income tax purposes, distributions made to holders of the Company’s unitholders are reported as ordinary income, capital gains, or a combination thereof. The tax character of distributions made for the year ended December 31, 2025 and December 31, 2024, and for the period from November 30, 2022 (inception) to December 31, 2023, were as follows:

 

 

 

For the Year Ended

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Distributions paid from:

 

 

 

 

 

 

 

 

 

Ordinary income (including net short-term capital gains)

 

$

24,186

 

 

$

11,577

 

 

$

1,340

 

Net long-term capital gains

 

 

60

 

 

 

—

 

 

 

—

 

Total taxable distributions

 

$

24,246

 

 

$

11,577

 

 

$

1,340

 

 

Taxable income generally differs from net increase in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

For the year ended December 31, 2025, the Company estimated U.S. federal taxable income exceeded its distributions made from such taxable income during the year; consequently, the Company has elected to carry forward the excess for distribution to holders of the Company’s Units in 2026. The amount carried forward to 2026 is estimated to be approximately $0, although these amounts will not be finalized until the 2025 tax returns are filed in 2026.

The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book-to-tax treatment of net operating losses, distribution re-designations and timing of the deductibility of certain business expenses, as applicable. To the extent these differences are permanent, they are charged or credited to additional paid-in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate.

The book-to-tax differences relating to distributions made to the Company’s holders of Units resulted in reclassifications among certain capital accounts as follows:

 

 

 

As of

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2025

 

Paid-in capital in excess of par value

 

$

(101

)

 

$

(52

)

 

$

(202

)

Total distributable earnings (loss)

 

$

101

 

 

$

52

 

 

$

202

 

 

The cost and unrealized gain (loss) on the Company’s consolidated financial instruments, as calculated on a tax basis, at December 31, 2025, December 31, 2024, and December 31, 2023 were as follows:

 

 

 

As of

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Gross unrealized appreciation

 

$

2,374

 

 

$

1,839

 

 

$

271

 

Gross unrealized depreciation

 

 

(2,520

)

 

 

(460

)

 

 

(112

)

Net unrealized appreciation (depreciation)

 

$

(146

)

 

$

1,379

 

 

$

159

 

Tax cost of investments at year end

 

$

573,586

 

 

$

268,579

 

 

$

51,386

 

 

 

 

At December 31, 2025, the Company had available for federal income tax purposes unused capital losses of approximately $98, of which $0 are short-term and $98 are long-term, that do not have an expiration date.

 

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Company for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.