Note 4. Fair Value Measurements

Fair Value Disclosures

The following table presents fair value measurements of investments by major class, cash equivalents and derivatives as of December 31, 2025, according to the fair value hierarchy:


	Fair Value Measurements
		Level 1			Level 2				Level 3			Measured at Net Asset Value			Total
Investments:
First Lien Senior Secured Loan	$	—		$		71,500		$		1,396,254	$	—		$		1,467,754
Second Lien Senior Secured Loan		—			—					18,749		—				18,749
Subordinated Debt		—			—					103,961		—				103,961
Preferred Equity		—			—					24,362		—				24,362
Equity Interest		—			—					37,894		—				37,894
Warrants		—			—					1,233		—				1,233
Subordinated Note Investment Vehicles (1)		—			—					20,240		—				20,240
Preferred Equity in Interest Investment Vehicles (1)		—			—				—				87			87
Equity Interest in Investment Vehicles (1)		—			—				—				6,978			6,978
Total Investments	$	—		$		71,500		$		1,602,693	$		7,065	$		1,681,258
Cash equivalents	$		27,779	$	—			$	—		$	—		$		27,779
Forward currency exchange contracts (liability)	$	—		$		(2,781	)	$	—		$	—		$		(2,781	)
Interest rate swap	$	—		$		447		$	—		$	—		$		447

(1) Includes debt and equity investment in SLP II.

The following table presents fair value measurements of investments by major class, cash equivalents and derivatives as of December 31, 2024, according to the fair value hierarchy:


	Fair Value Measurements
		Level 1			Level 2			Level 3			Measured at Net Asset Value			Total
Investments:
First Lien Senior Secured Loan	$		-	$		24,370	$		661,476	$		-	$		685,846
Preferred Equity			-			-			14,694			-			14,694
Equity Interest			-			-			10,984			-			10,984
Warrants			-			-			628			-			628
Subordinated Debt			-			-			5,147			-			5,147
Total Investments	$		-	$		24,370	$		692,929	$		-	$		717,299
Cash equivalents	$		7,921	$		-	$		-	$		-	$		7,921
Forward currency exchange contracts asset	$		-	$		1,492	$		-	$		-	$		1,492

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2025:


	First Lien			Second Lien													Subordinated
	Senior			Senior													Notes in
	Secured			Secured			Subordinated		Preferred			Equity					Investment		Total
	Loans			Loans			Debt		Equity			Interests			Warrants		Vehicles (1)		Investments
Balance as of January 1, 2025	$	661,476		$	—		$	5,147	$	14,694		$	10,984		$	628	$	—	$	692,929
Purchases of investments and other adjustments to cost		994,124			18,749			83,996		13,466			18,937			—		20,240		1,149,512
Paid-in-kind interest income		3,000			—			8,414		923			—			—		—		12,337
Net accretion of discounts (amortization of premiums)		3,000			8			163		2			—			—		—		3,173
Principal repayments and sales of investments		(271,451	)		—			—		(750	)		(277	)		—		—		(272,478	)
Net change in unrealized appreciation on investments		4,950			(8	)		1,173		1,095			8,250			605		—		16,065
Net realized gain on investments		1,155			—			—		—			—			—		—		1,155
Reclassifications		—			—			5,068		(5,068	)		—			—		—		—
Balance as of December 31, 2025	$	1,396,254		$	18,749		$	103,961	$	24,362		$	37,894		$	1,233	$	20,240	$	1,602,693
Change in unrealized appreciation attributable to investments still held at December 31, 2025	$	5,186		$	(8	)	$	1,173	$	1,095		$	8,250		$	605	$	—	$	16,301

(1) Represents debt investment in SLP II.

Transfers between levels, if any, are recognized at the beginning of the quarter in which transfers occur. For the year ended December 31, 2025, there were no transfers in and out of Level 3.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2024:


	First Lien
	Senior
	Secured			Equity			Preferred				Subordinated							Total
	Loans			Interests			Equity				Debt				Warrants			Investments
Balance as of January 1, 2024	$	188,789		$	90	$		3,875		$		—		$		—	$		192,754
Purchases of investments and other adjustments to cost		534,738			9,439			23,772				5,397				—			573,346
Paid-in-kind interest income		503			—			1,414				2				—			1,919
Net accretion of discounts (amortization of premiums)		1,286			—			—				—				—			1,286
Principal repayments and sales of investments		(62,497	)		—			(15,000	)			—				—			(77,497	)
Net change in unrealized appreciation on investments		(2,029	)		1,455			333				(252	)			628			135
Net realized gain on investments		686			—			300				—				—			986
Balance as of December 31, 2024	$	661,476		$	10,984	$		14,694		$		5,147		$		628	$		692,929
Change in unrealized appreciation attributable to investments still held at December 31, 2024	$	(2,006	)	$	1,456	$		333		$		(252	)	$		628	$		159

Transfers between levels, if any, are recognized at the beginning of the quarter in which transfers occur. For the year ended December 31, 2024, there were no transfers in and out of Level 3.

Significant Unobservable Inputs

ASC 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably available to the Company and as such, the disclosures provided below exclude those investments valued in that manner.

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of December 31, 2025 were as follows:


	As of December 31, 2025
				Significant
	Fair Value of			Unobservable	Range of Significant
	Level 3 Assets (1)		Valuation Technique	Inputs	Unobservable Inputs(3)						Weighted Average (2)
First Lien Senior Secured	$	1,177,789	Discounted cash flows	Comparative Yield		5.3	%	—	16.2	%	9.6		%
First Lien Senior Secured		9,346	Comparable company multiple	EBITDA Multiple				—				13.7	x
Second Lien Senior Secured		18,749	Discounted Cash Flows	Comparative Yield				—				12.9	%
Subordinated Note Investment Vehicles		20,240	Collateral Coverage	Recovery Rate				—				100.0	%
Subordinated		91,935	Discounted cash flows	Comparative Yield		13.2	%	—	18.3	%	16.7		%
Equity Interest		143	Comparable company multiple	Book Value Multiple				—				1.0	x
Equity Interest		26,060	Comparable company multiple	EBITDA Multiple		4.0	x	—	23.5	x	12.5		x
Equity Interest		1,277	Comparable company multiple	Revenue Multiple				—				9.3	x
Preferred equity		11,238	Comparable company multiple	EBITDA Multiple		10.3	x	—	16.5	x	14.6		x
Preferred equity		463	Comparable company multiple	Revenue Multiple				—				9.3	x
Preferred equity		7,638	Comparable company multiple	Book Value Multiple				—				1.0	x
Warrants		532	Comparable Company Multiple	Revenue Multiple				—				3.8	x
Warrants		701	Discounted Cash Flows	Discount Rate				—				25.0	%
Total investments	$	1,366,111

(1)

Included within the Level 3 assets of $1,602,693 is an amount of $236,582 for which the Advisor did not develop the unobservable inputs for the determination of fair value (examples include single source quotation and prior or pending transactions such as investments originated in the quarter or imminent payoffs).

(2)

Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.

(3)

The range for an asset category consisting of a single investment, if any, is not meaningful and therefore has been excluded.

The Company used the income approach and market approach to determine the fair value of certain Level 3 assets as of December 31, 2025. The significant unobservable inputs used in the income approach are the comparative yield and discount rate. The comparative yield and discount rate are used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield or discount rate would result in a decrease/increase, respectively, in the fair value. The significant unobservable input used in the market approach is the comparable company multiple. The multiple is used to estimate the enterprise value of the underlying investment. An increase/decrease in the multiple would result in an increase/decrease, respectively, in the fair value.

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of December 31, 2024 were as follows:


	As of December 31, 2024
				Significant
	Fair Value of			Unobservable	Range of Significant
	Level 3 Assets (1)		Valuation Technique	Inputs	Unobservable Inputs(3)							Weighted Average (2)
First Lien Senior Secured Loans	$	480,049	Discounted cash flows	Comparative Yields		8.2	%	—		16.6	%		10.7	%
Subordinated		45	Discounted cash flows	Comparative Yields				—					16.6	%
Equity Interest		7,333	Comparable company multiple	EBITDA Multiple		3.8	x	—		24.0	x		11.6	x
Equity Interest		238	Comparable company multiple	Revenue Multiple				—					9.2	x
Preferred equity		4,518	Comparable company multiple	EBITDA Multiple		10.0	x	—	15.3		x		12.3	x
Preferred equity		107	Comparable company multiple	Revenue Multiple				—					9.2	x
Warrants		628	Discounted Cash Flows	Discount Rate				—					25.0	%
Total investments	$	492,918

(1)

Included within the Level 3 assets of $692,929 is an amount of $200,011 for which the Advisor did not develop the unobservable inputs for the determination of fair value (examples include single source quotation and prior or pending transactions such as investments originated in the quarter or imminent payoffs).

(2)

Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.

(3)

The range for an asset category consisting of a single investment, if any, is not meaningful and therefore has been excluded.

The Company used the income approach and market approach to determine the fair value of certain Level 3 assets as of December 31, 2024. The significant unobservable inputs used in the income approach are the comparative yield and discount rate. The comparative yield and discount rate are used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield or discount rate would result in a decrease/increase, respectively, in the fair value. The significant unobservable input used in the market approach is the comparable company multiple. The multiple is used to estimate the enterprise value of the underlying investment. An increase/decrease in the multiple would result in an increase/decrease, respectively, in the fair value.

Debt Not Carried at Fair Value

Fair value is estimated by using market quotations or discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, or market quotes, if available. If the Company’s debt obligations were carried at fair value, the fair value and level would have been as follows:


		As of
	Level	December 31, 2025		December 31, 2024
GS Revolving Credit Facility	3	$	180,669	$	190,060
JPM Revolving Credit Facility	3		217,053		116,041
SMBC Revolving Credit Facility	3		120,000		72,000
2025 Senior Notes, Tranche A	2		110,909		-
2025 Senior Notes, Tranche B	2		166,453		-
Total Debt		$	795,084	$	378,101

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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