v3.26.1
Taxable/Distributable Income
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Taxable/Distributable Income

Note 11. Taxable/Distributable Income

The tax character of distributions for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Ordinary income (including net short-term capital gains)

 

$

254,641

 

 

$

203,192

 

 

$

94,428

 

Capital gains

 

 

23,369

 

 

 

13,926

 

 

 

2,342

 

Return of capital

 

 

9,943

 

 

 

—

 

 

 

—

 

Total taxable distributions

 

$

287,953

 

 

$

217,118

 

 

$

96,770

 

The components of Accumulated Earnings (Losses) on a tax basis for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Undistributed ordinary income - net

 

$

—

 

 

$

10,941

 

 

$

—

 

Undistributed long-term capital gains

 

 

—

 

 

 

2,336

 

 

 

—

 

Total undistributed earnings

 

 

—

 

 

 

13,277

 

 

 

—

 

Capital loss carryforward

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized earnings (losses) - net

 

 

(25,535

)

 

 

(3,452

)

 

 

(13,859

)

Timing differences

 

 

2,363

 

 

 

(3,880

)

 

 

(1,484

)

Total accumulated earnings (losses) - net

 

$

(23,172

)

 

$

(7,332

)

 

$

(15,343

)

For the years ended December 31, 2025, 2024 and 2023 the Company made the following reclassifications of permanent book to tax basis differences:

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Paid-in capital in excess of par value

 

$

(111

)

 

$

179

 

 

$

773

 

Net distributable earnings (accumulated losses)

 

$

111

 

 

$

(179

)

 

$

(773

)

The following table reconciles net decrease in net assets resulting from operations to total taxable income and gains available for distributions for the years ended December 31, 2025, 2024 and 2023:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Net increase (decrease) in net assets resulting from operations

 

$

262,059

 

 

$

225,308

 

 

$

135,676

 

Net change in unrealized appreciation (depreciation)

 

 

20,390

 

 

 

(16,107

)

 

 

(37,095

)

Unearned performance-based incentive fee on unrealized gains

 

 

(972

)

 

 

5,359

 

 

 

—

 

Basis adjustment for corporate conversion

 

 

84

 

 

 

(256

)

 

 

(795

)

Post October loss deferral

 

 

12,096

 

 

 

(1,461

)

 

 

(1,043

)

Other book-tax differences

 

 

(28,918

)

 

 

17,552

 

 

 

27

 

Total taxable / distributable income

 

$

264,739

 

 

$

230,395

 

 

$

96,770

 

The Company’s aggregate unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Tax cost

 

$

6,396,023

 

 

$

4,542,474

 

 

$

2,209,358

 

Gross unrealized appreciation

 

 

46,209

 

 

 

19,858

 

 

 

19,035

 

Gross unrealized depreciation

 

 

(51,179

)

 

 

(33,268

)

 

 

(31,340

)

Investments at Fair Value

 

$

6,391,054

 

 

$

4,529,064

 

 

$

2,197,053

 

The difference between GAAP-basis tax basis unrealized gains (losses) on our investments is attributable primarily to tax basis significant modifications and a step-up in the cost basis of our investments that happened during the corporate conversion. The net tax unrealized appreciation (depreciation) on investments is $(5.0) million and $(13.4) million as of December 31, 2025 and December 31, 2024, respectively.

Tax Information

During the year ended December 31, 2025, the Company designated approximately 90.82% of its distributions from net investment income as interest related dividends pursuant to Section 871(k) of the Code.

During the year ended December 31, 2025, the Company designated 99.14% of the dividends paid from net investment company taxable income as Section 163(j) Interest Dividends.

Pursuant to Section 852 of the Internal Revenue Code, the Company designated $23.4 million, as capital gain dividends paid during the year ended December 31, 2025.

During the year ended December 31, 2025, the Company designated $2.7 million as short-term capital gain dividends pursuant to Section 871(k) of the Internal Revenue Code.

During the year ended December 31, 2025, the Company designated approximately $9.9 million of distributions as return of capital for federal income tax purposes.