FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

FAIR VALUE MEASUREMENTS

Schedule of investments measured at fair value

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2025:


		Level 1			Level 2			Level 3			Total
First lien secured loans		$	—		$	—		$	429,573		$	429,573
Second lien secured loans			—			—			4,839			4,839
Unsecured loans			—			—			1,286			1,286
Subordinated Note to STRS JV			—			—			84,416			84,416
Equity (excluding STRS JV)			—			—			36,933			36,933
Equity in STRS JV⁽¹⁾			—			—			—			21,602
Total investments		$	—		$	—		$	557,047		$	578,649

(1)

The Company’s equity investment in STRS JV is measured using the net asset value per share as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy. 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 statements of assets and liabilities.

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2024:


		Level 1			Level 2			Level 3			Total
First lien secured loans		$	—		$	—		$	502,693		$	502,693
Second lien secured loans			—			—			8,342			8,342
Unsecured loans			—			—			1,175			1,175
Subordinated Note to STRS JV			—			—			84,416			84,416
Equity (excluding STRS JV)			—			—			22,846			22,846
Equity in STRS JV⁽¹⁾			—			—			—			22,741
Total investments		$	—		$	—		$	619,472		$	642,213

(1)

The Company’s equity investment in STRS JV is measured using the NAV per share as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy. 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 statements of assets and liabilities.

Schedule of changes in investments measured at fair value using Level 3 inputs


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Year ended December 31, 2025		Loans			Loans			Loans			JV			Equity			Investments
Fair value, beginning of period		$	502,693		$	8,342		$	1,175		$	84,416		$	22,846		$	619,472
Funding of investments			190,001			1,520			—			—			218			191,739
Non-cash interest income			1,872			167			111			—			—			2,150
Accretion of discount			3,508			48			—			—			—			3,556
Proceeds from paydowns and sales			(244,179)			(5,193)			—			—			(355)			(249,727)
Conversions			(12,082)			—			—			—			12,082			—
Realized gains (losses)			(35,424)			—			—			—			41			(35,383)
Net unrealized appreciation (depreciation)			23,184			(45)			—			—			2,101			25,240
Fair value, end of period		$	429,573		$	4,839		$	1,286		$	84,416		$	36,933		$	557,047
Change in unrealized appreciation (depreciation) on investments still held as of December 31, 2025		$	(4,730)		$	—		$	(6)		$	—		$	(206)		$	(4,942)


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Year ended December 31, 2024		Loans			Loans			Notes			JV			Equity			Investments
Fair value, beginning of period		$	553,085		$	19,039		$	167		$	84,416		$	16,679		$	673,386
Funding of investments			206,830			—			—			—			453			207,283
Non-cash interest income			6,786			380			94			—			—			7,260
Accretion of discount			4,084			22			5			—			—			4,111
Proceeds from paydowns and sales			(241,304)			(2,039)			—			—			(1,403)			(244,746)
Conversions			(8,852)			(11,769)			886			—			19,735			—
Realized gains (losses)			(10,985)			(5,817)			—			—			(1,886)			(18,688)
Net unrealized appreciation (depreciation)			(6,951)			8,526			23			—			(10,732)			(9,134)
Fair value, end of period		$	502,693		$	8,342		$	1,175		$	84,416		$	22,846		$	619,472
Change in unrealized appreciation (depreciation) on investments still held as of December 31, 2024		$	(17,190)		$	259		$	23		$	—		$	(10,151)		$	(27,059)

Schedule of Quantitative information about Level 3 fair value measurements


			Fair Value as of		Valuation		Unobservable		Range
Investment Type			December 31, 2025		Techniques		Inputs		(Weighted Average)⁽¹⁾
First lien secured loans		$	358,708		Discounted cash flow analysis		Discount Rate		7.9% - 33.5% (11.2%)
			51,846		Recent transaction		Transaction Price		96.8 - 99.6 (98.3)
			17,290		Enterprise value analysis		EBITDA Multiple		5.5 - 8.2 (7.4)
			1,729		Enterprise value analysis		Revenue Multiple		0.9 - 0.9 (0.9)
Second lien secured loans			3,404		Discounted cash flow analysis		Discount rate		9.5% - 9.5% (9.5%)
			1,435		Recent transaction		Transaction Price		91.4 - 91.4 (91.4)
Unsecured loans			1,286		Discounted cash flow analysis		Discount rate		13.1% - 13.3% (13.2%)
Subordinated Notes to STRS JV			84,416		Enterprise value analysis		n/a		n/a
Common equity			21,572		Enterprise value analysis		EBITDA multiple		6.5 - 12.9 (8.6)
			9,144		Enterprise value analysis		Revenue Multiple		0.9 - 2.3 (2.3)
Preferred equity			5,815		Enterprise value analysis		EBITDA multiple		6.5 - 10.0 (6.9)
Warrant			197		Option Pricing Model		Volatility		27.0% - 27.0% (27.0%)
			205		Enterprise value analysis		EBITDA Multiple		7.4 - 7.4 (7.4)
Total Level 3 Investments		$	557,047

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


			Fair Value as of		Valuation		Unobservable		Range
Investment Type			December 31, 2024		Techniques		Inputs		(Weighted Average)⁽¹⁾
First lien secured loans		$	439,577		Discounted cash flow analysis		Discount Rate		7.7% - 26.8% (13.1%)
			19,554		Recent transaction		Transaction Price		98.0 - 100.0 (98.5)
			22,923		Enterprise value analysis		EBITDA Multiple		5.8 - 8.0 (6.9)
			1,635		Enterprise value analysis		Revenue Multiple		1.4 - 1.4 (1.4)
			9,104		Expected repayment		Transaction Price		103.0 - 103.0 (103.0)
			373		Collateral analysis		Recovery Rate		0.0 - 15.0 (15.0)
			9,453		Market quotations		Broker quoted price		96.8 - 96.8 (96.8)
			74		Option pricing Model		Volatility		16.0 - 16.0 (16.0)
Second lien secured loans			8,342		Discounted cash flow analysis		Discount rate		11.7% - 12.5% (12.0%)
Unsecured loans			1,175		Discounted cash flow analysis		Discount rate		12.3% - 12.9% (12.6%)
Subordinated Notes to STRS JV			84,416		Enterprise value analysis		n/a		n/a
Common equity			10,728		Enterprise value analysis		EBITDA multiple		5.3 - 13.7 (9.8)
			9,132		Enterprise value analysis		Revenue Multiple		1.4 - 2.0 (2.0)
Preferred equity			2,916		Enterprise value analysis		EBITDA multiple		6.5 - 12.1 (7.5)
Warrant			70		Enterprise value analysis		EBITDA multiple		5.5 - 5.5 (5.5)
Total Level 3 Investments		$	619,472

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

Schedule of principal amount and fair value of the Company's borrowings


				As of December 31, 2025						As of December 31, 2024
		Fair
		Value Level		Principal Amount Outstanding			Fair Value			Principal Amount Outstanding			Fair Value
2025 CLO Notes		3		$	174,000		$	174,000		$	—		$	—
JPM Credit Facility		3			—			—			161,493			160,745
5.375% 2025 Notes		3			—			—			40,000			39,594
5.375% 2026 Notes		3			10,000			9,948			10,000			9,765
4.000% 2026 Notes		3			75,000			73,649			75,000			71,342
5.625% 2027 Notes		3			10,000			9,941			10,000			9,719
4.250% 2028 Notes		3			25,000			23,865			25,000			22,911
7.875% 2028 Notes		3			34,500			34,500			34,500			34,500
				$	328,500		$	325,903		$	355,993		$	348,576

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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