v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 6. Fair Value Measurements

The following tables present the fair value hierarchy of financial instruments, as of December 31, 2025 and December 31, 2024, according to the fair value hierarchy as described in Note 2. Significant Accounting Policies:

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First lien debt

 

$

—

 

 

$

735,729

 

 

$

5,609,414

 

 

$

6,345,143

 

Second lien debt

 

 

—

 

 

 

11,959

 

 

 

18,157

 

 

 

30,116

 

Subordinated debt

 

 

—

 

 

 

—

 

 

 

1,481

 

 

 

1,481

 

Equity and Other Investments

 

 

—

 

 

 

—

 

 

 

14,314

 

 

 

14,314

 

Cash and cash equivalents

 

 

128,658

 

 

 

—

 

 

 

—

 

 

 

128,658

 

Total Portfolio Investments, Cash and Cash Equivalents

 

$

128,658

 

 

$

747,688

 

 

$

5,643,366

 

 

$

6,519,712

 

Percentage of total

 

 

1.97

%

 

 

11.47

%

 

 

86.56

%

 

 

100.00

%

Interest rate swaps

 

$

—

 

 

$

8,060

 

 

$

—

 

 

$

8,060

 

Foreign currency forward contracts

 

$

—

 

 

$

(18,860

)

 

$

—

 

 

$

(18,860

)

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First lien debt

 

$

—

 

 

$

720,868

 

 

$

3,654,487

 

 

$

4,375,355

 

Second lien debt

 

 

—

 

 

 

47,466

 

 

 

42,019

 

 

 

89,485

 

Subordinated debt

 

 

—

 

 

 

—

 

 

 

990

 

 

 

990

 

Equity and Other Investments

 

 

—

 

 

 

—

 

 

 

63,234

 

 

 

63,234

 

Cash and cash equivalents

 

 

109,302

 

 

 

—

 

 

 

—

 

 

 

109,302

 

Total Portfolio Investments, Cash and Cash Equivalents

 

$

109,302

 

 

$

768,334

 

 

$

3,760,730

 

 

$

4,638,366

 

Percentage of total

 

 

2.36

%

 

 

16.56

%

 

 

81.08

%

 

 

100.00

%

Interest rate swaps

 

$

—

 

 

$

(859

)

 

 

 

 

$

(859

)

Foreign currency forward contracts

 

$

—

 

 

$

9,441

 

 

$

—

 

 

$

9,441

 

 

The following tables present changes in the fair value of financial instruments for which Level 3 inputs were used to determine the fair value for the years ended December 31, 2025 and December 31, 2024,:

 

For the Year Ended December 31, 2025

 

 

First Lien Debt

 

 

Second Lien Debt

 

 

Subordinated Debt

 

 

Equity and Other Investments

 

 

Total Investments

 

Fair value, beginning of year

$

3,654,487

 

 

$

42,019

 

 

$

990

 

 

$

63,234

 

 

$

3,760,730

 

Purchase of investments (including PIK)

 

2,517,982

 

 

 

338

 

 

 

444

 

 

 

8,851

 

 

 

2,527,615

 

Proceeds from principal repayments and sales of investments

 

(668,742

)

 

 

(24,250

)

 

 

—

 

 

 

(60,052

)

 

 

(753,044

)

Amortization of premium/accretion of discount, net

 

15,493

 

 

 

141

 

 

 

3

 

 

 

(64

)

 

 

15,573

 

Net realized gain (loss) on investments

 

13,063

 

 

 

407

 

 

 

—

 

 

 

237

 

 

 

13,707

 

Net change in unrealized appreciation (depreciation) on investments

 

24,214

 

 

 

(498

)

 

 

44

 

 

 

2,108

 

 

 

25,868

 

Transfers to Level 3 (1)

 

52,917

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

52,917

 

Fair value, end of period

$

5,609,414

 

 

$

18,157

 

 

$

1,481

 

 

$

14,314

 

 

$

5,643,366

 

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at December 31, 2025

$

27,327

 

 

$

(24

)

 

$

44

 

 

$

2,090

 

 

$

29,437

 
(1)
Transfers are recorded at the beginning of the applicable period at their fair value. For the year ended December 31, 2025, three investments were transferred from Level 2 to Level 3, as valuation coverage on level 2 investments decreased to less than two independent pricing services. For the year ended December 31, 2025, there were zero investments that were transferred from Level 3 to Level 2, as valuation coverage on level 3 investments did not drop below independent pricing service.

 

 

For the Year Ended December 31, 2024

 

 

First Lien Debt

 

 

Second Lien Debt

 

 

Subordinated Debt

 

 

Equity and Other Investments

 

 

Total Investments

 

Fair value, beginning of period

$

1,200,165

 

 

$

130,876

 

 

$

—

 

 

$

27,892

 

 

$

1,358,933

 

Purchase of investments (including PIK)

 

2,925,154

 

 

 

337

 

 

 

990

 

 

 

31,501

 

 

 

2,957,982

 

Proceeds from principal repayments and sales of investments

 

(438,236

)

 

 

(88,699

)

 

 

—

 

 

 

—

 

 

 

(526,935

)

Amortization of premium/accretion of discount, net

 

9,013

 

 

 

332

 

 

 

—

 

 

 

50

 

 

 

9,395

 

Net realized gain (loss) on investments

 

5,786

 

 

 

1,537

 

 

 

—

 

 

 

—

 

 

 

7,323

 

Net change in unrealized appreciation (depreciation) on investments

 

2,435

 

 

 

(272

)

 

 

—

 

 

 

3,791

 

 

 

5,954

 

Transfers out of Level 3 (1)

 

(52,465

)

 

 

(46,886

)

 

 

—

 

 

 

—

 

 

 

(99,351

)

Transfers to Level 3 (1)

 

2,635

 

 

 

44,794

 

 

 

—

 

 

 

—

 

 

 

47,429

 

Fair value, end of period

$

3,654,487

 

 

$

42,019

 

 

$

990

 

 

$

63,234

 

 

$

3,760,730

 

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held at December 31, 2024

$

3,789

 

 

$

479

 

 

$

—

 

 

$

3,790

 

 

$

8,058

 
(1)
Transfers are recorded at the beginning of the applicable period at their fair value. For the year ended December 31, 2024, four investments were transferred from Level 3 to Level 2, as valuation coverage on level 3 investments increased to more than one independent pricing service. For the year ended December 31, 2024, two investments were transferred from Level 2 to Level 3, as valuation coverage decreased to less than two independent pricing services.

The Company generally employs the Income Based Approach (as described below) to estimate the fair value of the investment. Additionally, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company or any applicable collateral, in order to evaluate coverage of the Company’s debt investment.

Income Based Approach: The Company may use a discounted cash flow analysis to estimate the fair value of the investment, specifically the yield method. Projected cash flows represent the relevant investment’s contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment’s expected maturity date. These cash flows are discounted at a rate that is calibrated to the initial transaction and monitored over time to adjust for changes in observed market spreads and yields since the issuance of the investment as well as changes in company specific factors. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement.

Market Based Approach: The Company may estimate the total enterprise value of each portfolio company by utilizing cash flow (typically EBITDA or revenue, or the relevant industry metric) multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company multiples to the portfolio company’s latest twelve month EBITDA, revenue or other applicable metric to calculate the enterprise value of the portfolio company. The Company may also consider projected multiples in the assessment if applicable.

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments as of December 31, 2025 and December 31, 2024, respectively. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.

 

December 31, 2025

 

 

 

 

 

 

 

 

 

Range

 

 

 

 

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input (1)

 

Low

 

 

High

 

 

Weighted Average (2)

 

First lien debt

 

$

5,296,337

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

5.95

%

 

 

16.79

%

 

 

9.71

%

 

 

 

127,215

 

 

Recent Transaction

 

Transaction Price

 

 

96.50

 

 

 

98.02

 

 

 

96.87

 

 

 

 

5,423,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second lien debt

 

 

18,157

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

12.07

%

 

 

13.07

%

 

 

12.57

%

Subordinated debt

 

 

1,481

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

11.66

%

 

 

13.78

%

 

 

12.42

%

Preferred equity

 

 

8,162

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

17.80

%

 

 

18.80

%

 

 

18.30

%

 

 

 

4,255

 

 

Recent Transaction

 

Transaction Price

 

 

32.08

 

 

 

100.00

 

 

 

87.58

 

 

 

 

12,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

 

1,896

 

 

Recent Transaction

 

Transaction Price

 

 

514.28

 

 

 

514.28

 

 

 

514.28

 

Total

 

$

5,457,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

Range

 

 

 

 

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input (1)

 

Low

 

 

High

 

 

Weighted Average (2)

 

First lien debt

 

$

3,396,459

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

7.72

%

 

 

16.69

%

 

 

10.62

%

 

 

 

242,563

 

 

Recent Transaction

 

Transaction Price

 

 

98.00

 

 

 

99.25

 

 

 

98.18

 

 

 

 

3,639,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second lien debt

 

 

42,019

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

10.45

%

 

 

13.82

%

 

 

11.95

%

Subordinated debt

 

 

990

 

 

Recent Transaction

 

Transaction Price

 

 

99.00

 

 

 

99.00

 

 

 

99.00

 

Preferred equity

 

 

63,155

 

 

Market Yield Analysis

 

Market Yield Discount Rates

 

 

9.33

%

 

 

9.33

%

 

 

15.54

%

 

 

 

 

 

Black-Scholes

 

Volatility

 

 

34.20

%

 

 

34.20

%

 

 

34.20

%

Warrants

 

 

79

 

 

Black-Scholes

 

Volatility

 

 

29.13

%

 

 

29.13

%

 

 

29.13

%

Total

 

$

3,745,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
The Company generally uses prices provided by an independent pricing service, or directly from an independent broker, which are indicative prices on or near the valuation date as the primary basis for the fair valuation determinations for quoted senior secured bonds and loans. Since these prices are non-binding, they may not be indicative of fair value. Each quoted price is evaluated by the Adviser in conjunction with additional information compiled by it, including financial performance, recent business developments and various other factors. Investments with fair values determined in this manner were not included in the table above. As of December 31, 2025 and December 31, 2024, the Company had investments of this nature measured at fair value totaling $185.9 million and $15.5 million, respectively.
(2)
Weighted averages are calculated based on fair value of investments.

Financial Instruments Disclosed, But Not Carried at Fair Value

Debt

The fair value of the Company’s variable interest Credit Facilities, which would be categorized as Level 3 investments within the fair value hierarchy, as of both December 31, 2025 and December 31, 2024, respectively, approximate their carrying value. The fair value of the Company's Series A Notes, Series C Notes, Series F Notes, and 2030 Notes (see Note 7. Borrowings) is based on vendor pricing received by the Company, which is considered a Level 3 input.

The following table presents the fair value of the Company’s Series A Notes, Series C Notes, Series F Notes, 2030 Notes, and 2031 Notes as of December 31, 2025 and December 31, 2024:

 

December 31, 2025

 

 

Outstanding Principal

 

 

Fair Value

 

Series A Notes

$

69,000

 

 

$

70,030

 

Series C Notes

 

116,000

 

 

 

119,993

 

Series F Notes

 

165,000

 

 

 

168,293

 

2030 Notes

 

500,000

 

 

 

507,012

 

2031 Notes

 

400,000

 

 

 

397,707

 

Total

$

1,250,000

 

 

$

1,263,035

 

 

 

 

December 31, 2024

 

 

Outstanding Principal

 

 

Fair Value

 

Series A Notes

$

69,000

 

 

$

68,914

 

Series C Notes

 

116,000

 

 

 

115,420

 

Series F Notes

 

165,000

 

 

 

164,175

 

Total

$

350,000

 

 

$

348,509

 

Other

The carrying amounts of the Company’s assets and liabilities, other than investments at fair value and debt, approximate fair value. These financial instruments are categorized as Level 3 within the hierarchy.