v3.25.4
Income Tax
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax

Note 9. Income Tax

For income tax purposes, dividends paid and distributions made to the Company’s shareholders are reported by the Company to the shareholders as ordinary income, capital gains, or a combination thereof. The tax character of distributions during the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Distributions paid from:

 

 

 

 

 

 

 

 

 

 

Ordinary Income

 

$

 

60,442

 

 

$

 

21,941

 

 

$

 

1,358

 

Net Long-Term Capital Gains

 

 

 

913

 

 

 

 

905

 

 

 

 

843

 

Total Taxable Distributions

 

$

 

61,355

 

 

$

 

22,846

 

 

$

 

2,201

 

 

The following reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2025, 2024 and 2023:

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net increase (decrease) in net assets resulting from operations

 

$

 

71,202

 

 

 

 

28,360

 

 

 

 

2,784

 

Net change in unrealized appreciation

 

 

 

(8,828

)

 

 

 

(2,647

)

 

 

 

196

 

Expenses not currently deductible

 

 

 

597

 

 

 

 

298

 

 

 

 

64

 

Income for tax but not book

 

 

 

1,750

 

 

 

 

792

 

 

 

 

62

 

Taxable/Distributable Income (1)

 

$

 

64,721

 

 

 

 

26,803

 

 

 

 

3,106

 

 

(1)
The calculation of estimated 2025 taxable income includes a number of estimated inputs, including information received from third parties and, as a result, actual 2025 taxable income will not be finally determined until the Company’s 2025 tax return is filed in 2026 (and, therefore, such estimate is subject to change).

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.

Capital losses in excess of capital gains earned in a tax year may generally be carried forward indefinitely by the Company and used to offset capital gains, subject to certain limitations. As of December 31, 2025 and 2024, the Company has a short-term capital loss carryforward of $0.0 million and $0.0 million and a long-term capital loss carryforward of $0.0 million and $0.0 million, respectively.

As of December 31, 2025, 2024 and 2023, the Company’s aggregate unrealized appreciation and depreciation on investments and forward currency exchange contracts based on cost for U.S. federal income tax purposes was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Tax cost

 

$

 

1,666,095

 

 

 

 

717,624

 

 

 

 

192,883

 

Gross unrealized appreciation

 

 

 

24,073

 

 

 

 

7,434

 

 

 

 

2,700

 

Gross unrealized depreciation

 

 

 

(8,338

)

 

 

 

(6,409

)

 

 

 

(2,829

)

Net unrealized appreciation on investments

 

$

 

15,735

 

 

 

 

1,025

 

 

 

 

(129

)

 

ASC Topic 740 ((Accounting for Uncertainty in Income Taxes (“ASC 740”)) provides guidance on the accounting for and disclosure of uncertainty in tax position. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Based on its analysis of its tax position for all open tax years (the current and prior years, as applicable), the Company

has concluded that it does not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740. Such open tax years remain subject to examination and adjustment by tax authorities. As of December 31, 2025, all tax filings of the Company since 2022 remain subject to examination by tax authorities.

The Company has determined that there were no tax positions which met the recognition and measurement requirements of the relevant accounting standards and therefore, the Company did not record an expense related to uncertain positions on the Company’s consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023.