| Summary by Major Security Type of Fair Valuations According to Inputs Used in Valuing Investments |
The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,169,913 |
|
|
$ |
1,169,913 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
39,875 |
|
|
|
39,875 |
|
Cash equivalents |
|
|
41,045 |
|
|
|
— |
|
|
|
— |
|
|
|
41,045 |
|
Total |
|
$ |
41,045 |
|
|
$ |
— |
|
|
$ |
1,209,788 |
|
|
$ |
1,250,833 |
|
The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
941,903 |
|
|
$ |
941,903 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
224 |
|
|
|
224 |
|
Cash equivalents |
|
|
87,815 |
|
|
|
— |
|
|
|
— |
|
|
|
87,815 |
|
Total |
|
$ |
87,815 |
|
|
$ |
— |
|
|
$ |
942,127 |
|
|
$ |
1,029,942 |
|
3.Investment Valuations and Fair Value Measurements (Continued)
|
| Reconciliation of Beginning and Ending Balances for Total Investments |
The following tables provide a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the years ended December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
Equity |
|
|
Total |
|
Balance, January 1, 2025 |
|
$ |
941,903 |
|
|
$ |
224 |
|
|
$ |
942,127 |
|
Purchases, including payments received in-kind |
|
|
657,740 |
|
|
|
19,465 |
|
|
|
677,205 |
|
Sales and paydowns of investments |
|
|
(406,442 |
) |
|
|
(1,789 |
) |
|
|
(408,231 |
) |
Amortization of premium and accretion of discount, net |
|
|
10,049 |
|
|
|
— |
|
|
|
10,049 |
|
Net realized (losses) gains |
|
|
(35 |
) |
|
|
484 |
|
|
|
449 |
|
Net change in unrealized appreciation/(depreciation) |
|
|
(33,302 |
) |
|
|
21,491 |
|
|
|
(11,811 |
) |
Balance, December 31, 2025 |
|
$ |
1,169,913 |
|
|
$ |
39,875 |
|
|
$ |
1,209,788 |
|
Change in net unrealized appreciation/(depreciation) in investments held as of December 31, 2025 |
|
$ |
(32,557 |
) |
|
$ |
21,674 |
|
|
$ |
(10,883 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
Equity |
|
|
Total |
|
Balance, January 1, 2024 |
|
$ |
742,916 |
|
|
$ |
— |
|
|
$ |
742,916 |
|
Purchases, including payments received in-kind |
|
|
465,204 |
|
|
|
41 |
|
|
|
465,245 |
|
Sales and paydowns of investments |
|
|
(259,791 |
) |
|
|
— |
|
|
|
(259,791 |
) |
Amortization of premium and accretion of discount, net |
|
|
8,531 |
|
|
|
— |
|
|
|
8,531 |
|
Net realized gains |
|
|
115 |
|
|
|
— |
|
|
|
115 |
|
Net change in unrealized appreciation/(depreciation) |
|
|
(15,072 |
) |
|
|
183 |
|
|
|
(14,889 |
) |
Balance, December 31, 2024 |
|
$ |
941,903 |
|
|
$ |
224 |
|
|
$ |
942,127 |
|
Change in net unrealized appreciation/(depreciation) in investments held as of December 31, 2024 |
|
$ |
(11,461 |
) |
|
$ |
183 |
|
|
$ |
(11,278 |
) |
|
| Summary of Valuation Techniques and Quantitative Information in Determining Fair value of Level 3 Investments |
The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range |
|
Weighted
Average* |
|
Impact to
Valuation if
Input Increases |
Debt |
|
$ |
878,416 |
|
|
Income Method |
|
Discount Rate |
|
8.0% to 19.1% |
|
11.1% |
|
Decrease |
Debt |
|
$ |
169,177 |
|
|
Market Method |
|
EBITDA Multiple |
|
4.5x to 9.5x |
|
6.8x |
|
Increase |
Debt |
|
$ |
56,008 |
|
|
Market Method |
|
Indicative Bid |
|
99.3% to 99.3% |
|
99.3% |
|
Increase |
Debt |
|
$ |
31,362 |
|
|
Income Method |
|
Discount Rate |
|
15.4% to 18.1% |
|
16.8% |
|
Decrease |
|
|
|
|
|
Market Method |
|
Indicative Bid |
|
101.0% to 101.0% |
|
101.0% |
|
Increase |
Debt |
|
$ |
34,950 |
|
|
Income Method |
|
Discount Rate |
|
13.3% to 27.0% |
|
20.8% |
|
Decrease |
|
|
|
|
|
Market Method |
|
EBITDA Multiple |
|
3.8x to 7.5x |
|
5.9x |
|
Increase |
Equity |
|
$ |
39,625 |
|
|
Income Method |
|
EBITDA Multiple |
|
4.8x to 10.8x |
|
8.1x |
|
Increase |
Equity |
|
$ |
250 |
|
|
Market Method |
|
Revenue Multiple |
|
1.3x to 1.5x |
|
1.4x |
|
Increase |
* Weighted based on fair value The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range |
|
Weighted
Average* |
|
Impact to
Valuation if
Input Increases |
Debt |
|
$ |
889,873 |
|
|
Income Method |
|
Discount Rate |
|
10.3% to 22.2% |
|
13.0% |
|
Decrease |
Debt |
|
$ |
52,030 |
|
|
Market Method |
|
EBITDA Multiple |
|
6.5x to 8.0x |
|
7.1x |
|
Increase |
Equity |
|
$ |
224 |
|
|
Market Method |
|
EBITDA Multiple |
|
5.8x to 7.5x |
|
6.8x |
|
Increase |
* Weighted based on fair value
|