| Fair Value Measurement |
6. Fair Value Measurement The following table summarizes the fair value of the Company’s investments as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets at Fair Value as of December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Practical |
|
|
|
|
Assets |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Expedient |
|
|
Total |
|
First Lien Senior Secured |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,903,414 |
|
|
$ |
— |
|
|
$ |
2,903,414 |
|
Second Lien Senior Secured |
|
|
— |
|
|
|
— |
|
|
|
5,460 |
|
|
|
— |
|
|
|
5,460 |
|
Subordinated Notes* |
|
|
— |
|
|
|
— |
|
|
|
49,318 |
|
|
|
— |
|
|
|
49,318 |
|
Preferred Equity |
|
|
— |
|
|
|
|
|
|
499 |
|
|
|
— |
|
|
|
499 |
|
Limited Partnership Interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,937 |
|
|
|
49,937 |
|
Total assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,958,691 |
|
|
$ |
49,937 |
|
|
$ |
3,008,628 |
|
The Company's Interest Rate Swaps are considered Level 2 in the fair value hierarchy The following table summarizes the fair value of the Company’s investments as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets at Fair Value as of December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Practical |
|
|
|
|
Assets |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Expedient |
|
|
Total |
|
First Lien Senior Secured |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,532,466 |
|
|
$ |
— |
|
|
$ |
1,532,466 |
|
Second Lien Senior Secured |
|
|
— |
|
|
|
— |
|
|
|
4,467 |
|
|
|
— |
|
|
|
4,467 |
|
CLO* |
|
|
— |
|
|
|
— |
|
|
|
4,994 |
|
|
|
— |
|
|
|
4,994 |
|
Limited Partnership Interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,615 |
|
|
|
28,615 |
|
Total assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,541,927 |
|
|
$ |
28,615 |
|
|
$ |
1,570,542 |
|
* CLOs are included as Subordinated Notes for the fiscal year ended 2025. The below table presents a summary of changes in fair value of Level 3 assets by investment type for the year ended December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Secured |
|
|
Second Lien
Senior Secured |
|
|
Subordinated
Notes |
|
|
Preferred
Equity |
|
|
Total |
|
Balance at fair value as of December 31, 2024 |
|
$ |
1,532,466 |
|
|
$ |
4,467 |
|
|
$ |
4,994 |
|
|
$ |
— |
|
|
$ |
1,541,927 |
|
Net Purchases |
|
|
1,738,566 |
|
|
|
1,037 |
|
|
|
58,631 |
|
|
|
1,989 |
|
|
|
1,800,223 |
|
Net Sales, Exits and Repayments |
|
|
(370,311 |
) |
|
|
(23 |
) |
|
|
(14,850 |
) |
|
|
— |
|
|
|
(385,184 |
) |
PIK |
|
|
3,066 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,066 |
|
Accreted Discounts / Amortized Premiums |
|
|
5,350 |
|
|
|
5 |
|
|
|
5 |
|
|
|
— |
|
|
|
5,360 |
|
Net Change in Unrealized Appreciation / (Depreciation) |
|
|
(5,723 |
) |
|
|
(26 |
) |
|
|
538 |
|
|
|
(1,490 |
) |
|
|
(6,701 |
) |
Transfers into Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers out of Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance at fair value as of December 31, 2025 |
|
$ |
2,903,414 |
|
|
$ |
5,460 |
|
|
$ |
49,318 |
|
|
$ |
499 |
|
|
$ |
2,958,691 |
|
Change in Unrealized Appreciation / (Depreciation)
for Level 3 Assets Still Held as of December 31, 2025 |
|
$ |
(7,366 |
) |
|
$ |
(21 |
) |
|
$ |
538 |
|
|
$ |
(1,490 |
) |
|
$ |
(8,339 |
) |
The below table presents a summary of changes in fair value of Level 3 assets by investment type for the year ended December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Secured |
|
|
Second Lien
Senior Secured |
|
|
CLO
Warehouse |
|
|
Subordinated
Notes |
|
|
Total |
|
Balance at fair value as of December 31, 2023 |
|
$ |
531,616 |
|
|
$ |
4,494 |
|
|
$ |
29,250 |
|
|
$ |
— |
|
|
$ |
565,360 |
|
Net Purchases |
|
|
1,148,365 |
|
|
|
(21 |
) |
|
|
21,548 |
|
|
|
4,994 |
|
|
|
1,174,886 |
|
In-Kind Contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Sales, Exits and Repayments |
|
|
(153,681 |
) |
|
|
(46 |
) |
|
|
(50,798 |
) |
|
|
— |
|
|
|
(204,525 |
) |
PIK |
|
|
1,063 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,063 |
|
Accreted Discounts / Amortized Premiums |
|
|
4,207 |
|
|
|
20 |
|
|
|
— |
|
|
|
— |
|
|
|
4,227 |
|
Net Realized Gain/(Loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Change in Unrealized Appreciation / (Depreciation) |
|
|
896 |
|
|
|
20 |
|
|
|
— |
|
|
|
— |
|
|
|
916 |
|
Transfers into Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers out of Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance at fair value as of December 31, 2024 |
|
$ |
1,532,466 |
|
|
$ |
4,467 |
|
|
$ |
— |
|
|
$ |
4,994 |
|
|
$ |
1,541,927 |
|
Change in Unrealized Appreciation / (Depreciation)
for Level 3 Assets Still Held as of December 31, 2024 |
|
$ |
1,643 |
|
|
$ |
(4 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,638 |
|
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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation from |
|
|
Fair Value |
|
|
|
|
|
|
|
|
|
|
Increase in |
|
|
as of |
|
|
Valuation |
|
Unobservable |
|
Range / |
|
Weighted |
|
Unobservable |
|
|
December 31, 2025 |
|
|
Techniques |
|
Input |
|
Percentage |
|
Average (1) |
|
Input |
First Lien Senior Secured Debt |
|
$ |
2,797,561 |
|
|
Yield Method |
|
Market Yield Discount Spreads |
|
3.37% - 27.84% |
|
5.77% |
|
Decrease |
First Lien Senior Secured Debt |
|
|
102,299 |
|
|
Recent Transactions |
|
Transaction Price |
|
$98.00 - $100.00 |
|
$98.93 |
|
Increase |
First Lien Senior Secured Debt |
|
|
3,554 |
|
|
Market Approach |
|
Market Multiple |
|
0.3x - 10.9x |
|
5.6x |
|
Increase |
Second Lien Senior Secured Debt |
|
|
5,460 |
|
|
Yield Method |
|
Market Yield Discount Spreads |
|
5.18% - 6.18% |
|
5.68% |
|
Decrease |
Subordinated Notes |
|
|
16,580 |
|
|
Yield Method |
|
Market Yield Discount Spreads |
|
15.00% |
|
15.00% |
|
Decrease |
|
|
|
32,738 |
|
|
Discounted Cash Flows |
|
Annual Default Rate |
|
2.00% - 3.00% |
|
2.54% |
|
Decrease |
|
|
|
|
|
|
|
Annual Prepayment Rate |
|
20.00% |
|
20.00% |
|
Decrease |
|
|
|
|
|
|
|
Reinvestment Spread |
|
3.20% - 5.05% |
|
4.18% |
|
Decrease |
|
|
|
|
|
|
|
Reinvestment Price |
|
$99.00 - $99.50 |
|
$99.23 |
|
Decrease |
|
|
|
|
|
|
|
Recovery Rate |
|
65.00% |
|
65.00% |
|
Increase |
|
|
|
|
|
|
|
Expected Yield |
|
11.00% - 20.50% |
|
15.98% |
|
Decrease |
Preferred Equity |
|
|
499 |
|
|
Market Approach |
|
Market Multiple |
|
0.3x - 10.9x |
|
5.6x |
|
Increase |
Total Assets |
|
$ |
2,958,691 |
|
|
|
|
|
|
|
|
|
|
|
(1)Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation from |
|
|
Fair Value |
|
|
|
|
|
|
|
|
|
|
Increase in |
|
|
as of |
|
|
Valuation |
|
Unobservable |
|
Range / |
|
Weighted |
|
Unobservable |
|
|
December 31, 2024 |
|
|
Techniques |
|
Input |
|
Percentage |
|
Average (1) |
|
Input |
First Lien Senior Secured Debt |
|
$ |
1,393,652 |
|
|
Yield Method |
|
Market Yield Discount Spreads |
|
3.26%-15.14% |
|
6.05% |
|
Decrease |
First Lien Senior Secured Debt |
|
|
138,814 |
|
|
Recent Transactions |
|
Transaction Price |
|
$98.00-$101.00 |
|
$98.95 |
|
Increase |
CLO |
|
|
4,994 |
|
|
Recent Transactions |
|
Transaction Price |
|
$87.37 |
|
$87.37 |
|
Increase |
Second Lien Senior Secured Debt |
|
|
4,467 |
|
|
Yield Method |
|
Market Yield Discount Spreads |
|
5.15%-6.29% |
|
5.72% |
|
Decrease |
Total Assets |
|
$ |
1,541,927 |
|
|
|
|
|
|
|
|
|
|
|
(1)Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category. |