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