v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company values financial instruments in accordance with ASC 820, using the techniques and approaches outlined in the Company's valuation guidelines, which are approved by the Board. During the periods ended March 31, 2026 and December 31, 2025, there were no changes to the Company’s valuation techniques or approaches as described herein.
Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Investments measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations as of March 31, 2026 and December 31, 2025.
(in thousands)Balance as of
March 31,
2026		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Description
Cash and cash equivalents
Money Market Fund(1)
$8,080 $8,080 $— $— 
Other assets and liabilities     
Escrow Receivables$114 $— $— $114 
Accounts Payable and Accrued Liabilities(86)— — (86)
Investments   
Senior Secured Debt$4,469,019 $— $— $4,469,019 
Unsecured Debt71,126 — — 71,126 
Preferred Stock53,449 — — 53,449 
Common Stock(2)
78,659 19,575 — 59,084 
Warrants42,507 — 11,631 30,876 
 $4,714,760 $19,575 $11,631 $4,683,554 
Investment Funds & Vehicles measured at Net Asset Value(3)
7,227    
Total Investments, at fair value$4,721,987    
Derivative Instruments(4)
522    
Total Investments including cash and cash equivalents and derivative instruments$4,730,589    
(in thousands)Balance as of
December 31,
2025		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Description
Cash and cash equivalents     
Money Market Fund(1)
$10,250 $10,250 $— $— 
Other assets and liabilities
Escrow Receivables$168 $— $— $168 
Accounts Payable and Accrued Liabilities(87)$— $— (87)
Investments   
Senior Secured Debt$4,209,798 $— $— $4,209,798 
Unsecured Debt69,614 — — 69,614 
Preferred Stock52,735 — — 52,735 
Common Stock(2)
86,275 21,555 — 64,720 
Warrants41,162 — 13,101 28,061 
 $4,459,584 $21,555 $13,101 $4,424,928 
Investment Funds & Vehicles measured at Net Asset Value(3)
7,063    
Total Investments, at fair value$4,466,647    
Derivative Instruments(4)
50 
Total Investments including cash and cash equivalents and derivative instruments$4,476,947 
(1)This investment is included in Cash and cash equivalents in the accompanying Consolidated Statements of Assets and Liabilities.
(2)Common stock includes non-voting security in the form of a promissory note with a lien on shares of issuer's common stock.
(3)In accordance with U.S. GAAP, certain investments are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and are not categorized within the fair value hierarchy as per ASC 820. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying Consolidated Statements of Assets and Liabilities.
(4)Derivative Instruments are carried at fair value and are a Level 2 security within the Company's fair value hierarchy.

The table below presents a reconciliation of changes for all financial assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3) for the three months ended March 31, 2026 and 2025.
(in thousands)Balance as of
January 1, 2026
Net Realized
Gains (Losses)(1)
Net Change in
Unrealized
Appreciation
(Depreciation)(2)
Purchases(5)
Capitalized PIK InterestSales
Repayments(6)
Gross
Transfers
into
Level 3(3)*
Gross
Transfers
out of
Level 3(3)*
Balance as of
March 31, 2026
Investments
Senior Secured Debt$4,209,798 $— $(34,788)$524,980 $11,879 $(7,500)$(235,350)$— $— $4,469,019 
Unsecured Debt69,614 — (2,391)3,036 867 — — — — 71,126 
Preferred Stock52,735 77 (3,148)6,056 — (2,271)— — — 53,449 
Common Stock64,720 (1,910)(4,074)648 — (300)— — — 59,084 
Warrants28,061 (68)1,920 1,012 — (49)— — — 30,876 
Other Assets and Liabilities             
Escrow Receivables168 (33)— 22 — (43)— — — 114 
Accounts Payable and Accrued Liabilities(87)— — 1 — — — — — (86)
Total$4,425,009 $(1,934)$(42,481)$535,755 $12,746 $(10,163)$(235,350)$— $— $4,683,582 
(in thousands)Balance as of
January 1, 2025
Net Realized
Gains (Losses)(1)
Net Change in
Unrealized
Appreciation
(Depreciation)(2)
Purchases(5)
Capitalized PIK InterestSales
Repayments(6)
Gross
Transfers
into
Level 3(4)*
Gross
Transfers
out of
Level 3(4)*
Balance as of
March 31, 2025
Investments              
Senior Secured Debt$3,419,044 $(48)$(25,181)$416,157 $12,673 $— $(148,147)$— $— $3,674,498 
Unsecured Debt75,557 — 65 63 1,273 — — — (12,222)64,736 
Preferred Stock53,802 — (3,953)2,813 — — — — — 52,662 
Common Stock44,593 (670)(2,014)— — (331)— 17,316 — 58,894 
Warrants21,823 (63)(1,527)352 — — — — — 20,585 
Other Assets and Liabilities             
Escrow and Other Investment Receivables152 56 — 1,814 — (56)— — — 1,966 
Accounts Payable and Accrued Liabilities(1,012)— 358 44 — (362)— — — (972)
Total$3,613,959 $(725)$(32,252)$421,243 $13,946 $(749)$(148,147)$17,316 $(12,222)$3,872,369 
* The Company recognizes transfers as of the transaction date.
(1)Included in net realized gains (losses) in the accompanying Consolidated Statements of Operations.
(2)Included in net change in unrealized appreciation (depreciation) in the accompanying Consolidated Statements of Operations.
(3)There were no transfers into or out of Level 3 during the three months ended March 31, 2026.
(4)Transfers out of Level 3 during the three months ended March 31, 2025 related to the conversion of the Company's Level 3 debt investments in the Adviser Subsidiary and Carbon Health Technologies, Inc., into common stock Level 3 investments. Transfers into Level 3 during the three months ended March 31, 2025 included the conversion of 23andMe, Inc. Level 1 common stock into Level 3 common stock due to bankruptcy and delisting.
(5)Amounts listed above are inclusive of loan origination fees received at the inception of the loan which are deferred and amortized into fee income as well as the accretion of existing loan discounts and fees during the period. Escrow receivable purchases may include additions due to proceeds held in escrow from the liquidation of Level 3 investments. Amounts are net of purchases assigned to the Adviser Funds.
(6)Amounts listed above include the acceleration and payment of loan discounts and loan fees due to early payoffs or restructures along with regularly scheduled amortization.
The following table presents the net unrealized appreciation (depreciation) recorded for debt, preferred stock, common stock and warrant Level 3 investments relating to assets still held at the reporting date.
(in millions)Three Months Ended March 31,
20262025
Debt investments
$(33.4)$(23.4)
Preferred stock
(3.1)(4.0)
Common stock
(6.0)(2.3)
Warrant investments
1.9 (1.6)
The following tables provide quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2026 and December 31, 2025. In addition to the techniques and inputs noted in the tables below, according to the Company’s valuation guidelines, the Company may also use other valuation techniques and methodologies when determining the Company’s fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements. See the accompanying Consolidated Schedule of Investments for the fair value of the Company’s investments. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Summary of Significant Accounting Policies”. The significant unobservable input used in the fair value measurement of the Company’s escrow receivables is the amount recoverable at the contractual maturity date of the escrow receivable.
Investment Type - Level 3
Debt Investments		Fair Value as of
March 31, 2026
(in thousands)		Valuation
Techniques/ Methodologies
Unobservable Input(1)
Range
Weighted
Average(2)
Pharmaceuticals$721,599 Market Comparable CompaniesHypothetical Market Yield
9.40% - 17.06%
11.90%
  Premium/(Discount)
(2.00%) - 2.00%
(0.81%)
Technology1,719,485 Market Comparable CompaniesHypothetical Market Yield
9.39% - 18.84%
12.96%
  Premium/(Discount)
(2.75%) - 6.00%
0.04%
 29,462 Convertible Note AnalysisProbability weighting of alternative outcomes
5.00% - 95.00%
90.46%
24,889 
Liquidation(3)
Probability weighting of alternative outcomes
5.00% - 95.00%
61.59%
Medical Devices74,905 Market Comparable CompaniesHypothetical Market Yield
12.45% - 13.98%
13.42%
Premium/(Discount)
(0.25%) - 0.50%
0.11%
Lower Middle Market894,810 Market Comparable CompaniesHypothetical Market Yield
10.89% - 20.07%
13.91%
  Premium/(Discount)
(1.50%) - 4.50%
0.21%
Debt Investments for which Cost Approximates Fair Value
 479,165 Debt Investments originated within 6 months  
 348,464 
Imminent Payoffs(4)
  
 206,075 Debt Investments Maturing in Less than One Year
41,291 Debt Investments in Wholly-Owned Subsidiaries
 $4,540,145 Total Level 3 Debt Investments
Escrow Receivables114 Expected Proceeds
Accounts Payable and Accrued Liabilities(86)
Liquidation(3)
Probability weighting of alternative outcomes
10.00% - 50.00%
44.84%
$4,540,173 Total Level 3 Debt Investments and Other Assets (Liabilities)
(1)The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The premiums/(discounts) relate to company specific characteristics such as underlying investment performance, security liens, and other characteristics of the investment. Significant increases (decreases) in the inputs in isolation may result in a significantly lower (higher) fair value measurement, depending on the materiality of the investment.
Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:
•Pharmaceuticals, above, is comprised of debt investments in the “Biotechnology Tools” and “Drug Discovery & Development” industries.
•Technology, above, is comprised of debt investments in the “Application Software”, “Communications & Networking”, “Consumer & Business Services”, “Defense Technologies”, “Electronics & Computer Hardware”, “Healthcare Services, Other”, “Information Services”, “Manufacturing Technology”, “Space Technologies”, and “System Software” industries.
•Medical Devices, above, is comprised of debt investments in the “Medical Devices & Equipment” industry.
•Lower Middle Market, above, is comprised of debt investments in the “Application Software”, “Consumer & Business Products”, “Consumer & Business Services”, “Diversified Financial Services”, “Healthcare Services, Other”, and “Sustainable and Renewable Technology” industries.
(2)The weighted averages are calculated based on the fair market value of each investment.
(3)The significant unobservable input used in the fair value measurement of impaired debt securities and other investment receivables (payables) is the probability weighting of alternative outcomes.
(4)Imminent Payoffs represent debt investments that the Company expects to be repaid within the next three months, prior to their scheduled maturity date.
Investment Type - Level 3
Debt Investments
Fair Value as of
December 31, 2025
(in thousands)		Valuation Techniques/ Methodologies
Unobservable Input(1)
Range
Weighted
Average(2)
Pharmaceuticals$777,671 Market Comparable CompaniesHypothetical Market Yield
9.01% - 15.39%
11.97%
  Premium/(Discount)
(2.50%) - 2.00%
(0.34%)
Technology1,779,826 Market Comparable CompaniesHypothetical Market Yield
9.58% - 17.46%
12.30%
  Premium/(Discount)
(1.50%) - 4.50%
0.22%
 30,986 Convertible Note AnalysisProbability weighting of alternative outcomes
1.00% - 70.00%
51.23%
 73,268 
Liquidation(3)
Probability weighting of alternative outcomes
10.00% - 90.00%
76.29%
Sustainable and Renewable Technology30,201 Market Comparable CompaniesHypothetical Market Yield
15.89% - 16.25%
16.04%
   Premium/(Discount)
0.75% - 0.75%
0.75%
Medical Devices74,771 Market Comparable CompaniesHypothetical Market Yield
12.18% - 14.21%
13.36%
Premium/(Discount)
(0.25%) - 0.50%
0.11%
Lower Middle Market814,412 Market Comparable CompaniesHypothetical Market Yield
10.30% - 18.73%
13.60%
   Premium/(Discount)
(0.50%) - 4.00%
0.60%
Debt Investments for which Cost Approximates Fair Value
 403,710 Debt Investments originated within 6 months  
 7,711 
Imminent Payoffs(4)
  
 248,601 Debt Investments Maturing in Less than One Year
38,255 Debt Investments in Wholly-Owned Subsidiaries
 $4,279,412 Total Level 3 Debt Investments
Escrow Receivables168 Expected Proceeds
Accounts Payable and Accrued Liabilities(87)
Liquidation(3)
Probability weighting of alternative outcomes
10.00% - 50.00%
44.84%
$4,279,493 Total Level 3 Debt Investments and Other Assets (Liabilities)
(1)The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The premiums/(discounts) relate to company specific characteristics such as underlying investment performance, security liens, and other characteristics of the investment. Significant increases (decreases) in the inputs in isolation may result in a significantly lower (higher) fair value measurement, depending on the materiality of the investment.
Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:
•Pharmaceuticals, above, is comprised of debt investments in the “Drug Discovery & Development”, “Biotechnology Tools”, and “Healthcare Services, Other” industries.
•Technology, above, is comprised of debt investments in the “Communications & Networking”, “Information Services”, “Consumer & Business Services”, “Media/Content/Info”, “Space Technologies”, “Defense Technologies”, “Manufacturing Technology”, “Electronics & Computer Hardware”, “Application Software”, and “System Software” industries.
•Sustainable and Renewable Technology, above, is comprised of debt investments in the “Sustainable and Renewable Technology” industry.
•Medical Devices, above, is comprised of debt investments in the “Medical Devices & Equipment” industry.
•Lower Middle Market, above, is comprised of debt investments in the “Healthcare Services – Other”, “Consumer & Business Services”, “Diversified Financial Services”, “Sustainable and Renewable Technology”, “Consumer & Business Products”, and “Application Software” industries.
(2)The weighted averages are calculated based on the fair market value of each investment.
(3)The significant unobservable input used in the fair value measurement of impaired debt securities and other investment receivables (payables) is the probability weighting of alternative outcomes.
(4)Imminent payoffs represent debt investments that the Company expects to be repaid within the next three months, prior to their scheduled maturity date.
Investment Type - Level 3 Equity and Warrant InvestmentsFair Value as of
March 31, 2026
(in thousands)		Valuation Techniques/
Methodologies
Unobservable Input(1)
Range
Weighted Average(5)
Equity Investments$46,476 Market Comparable Companies
Revenue Multiple(2)
0.1x - 9.2x
3.1x
  
Tangible Book Value Multiple(2)
1.6x - 1.6x
1.6x
  
Discount for Lack of Marketability(3)
14.80% - 91.85%
27.83%
 12,236 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(92.01%) - 1.35%
(22.88%)
 46,127 Discounted Cash Flow
Discount Rate(7)
11.29% - 35.31%
32.99%
 7,694 
Other(6)
   
Warrant Investments17,501 Market Comparable Companies
Revenue Multiple(2)
0.5x - 12.7x
3.7x
  
Discount for Lack of Marketability(3)
14.80% - 35.70%
25.15%
 11,967 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(65.94%) - 102.93%
18.43%
1,408 
Other(6)
Total Level 3 Equity and Warrant Investments$143,409     
(1)The significant unobservable inputs used in the fair value measurement of the Company’s warrant and equity securities are revenue and/or earnings multiples (e.g. EBITDA, EBT, ARR), market equity adjustment factors, discount rate, and discounts for lack of marketability. Significant increases/(decreases) in the inputs in isolation would result in a significantly higher/(lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing or merger/acquisition events near the measurement date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.
(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.
(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.
(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.
(5)Weighted averages are calculated based on the fair market value of each investment.
(6)The fair market value of these investments is derived based on recent private market and merger and acquisition transaction prices.
(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.
Investment Type - Level 3 Equity and Warrant InvestmentsFair Value as of
December 31, 2025
(in thousands)		Valuation Techniques/
Methodologies
Unobservable Input(1)
Range
Weighted Average(5)
Equity Investments$48,874 Market Comparable Companies
Revenue Multiple(2)
0.1x - 12.3x
4.5x
  
Tangible Book Value Multiple(2)
1.7x - 1.7x
1.7x
  
Discount for Lack of Marketability(3)
9.44% - 92.30%
26.25%
 7,702 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(89.31%) - 70.57%
(7.13%)
 51,250 Discounted Cash Flow
Discount Rate(7)
11.14% - 33.18%
30.09%
 9,629 
Other(6)
   
Warrant Investments19,318 Market Comparable Companies
Revenue Multiple(2)
0.3x - 13.0x
5.5x
  
Discount for Lack of Marketability(3)
13.28% - 36.40%
26.90%
 8,283 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(60.90%) - 87.40%
26.66%
 460 
Other(6)
Total Level 3 Equity and Warrant Investments$145,516     
(1)The significant unobservable inputs used in the fair value measurement of the Company’s warrant and equity securities are revenue and/or earnings multiples (e.g. EBITDA, EBT, ARR), market equity adjustment factors, discount rate, and discounts for lack of marketability. Significant increases/(decreases) in the inputs in isolation would result in a significantly higher/(lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing or merger/acquisition events near the measurement date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.
(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.
(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.
(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.
(5)Weighted averages are calculated based on the fair market value of each investment.
(6)The fair market value of these investments is derived based on recent private market and merger and acquisition transaction prices.
(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.
The Company believes that the carrying amounts of its financial instruments, other than investments and debt, which consist of cash and cash equivalents, receivables including escrow receivables, accounts payable and accrued liabilities, approximate the fair values of such items due to the short maturity of such instruments. The debt obligations of the Company are recorded at amortized cost and not at fair value on the Consolidated Statements of Assets and Liabilities. The fair value of the Company’s outstanding debt obligations are based on observable market trading prices or quotations and unobservable market rates as applicable for each instrument.
The following tables provide additional information about the approximate fair value and level in the fair value hierarchy of the Company’s outstanding borrowings as of March 31, 2026 and December 31, 2025:
(in thousands)March 31, 2026
DescriptionCarrying
Value		Approximate
Fair Value		Identical Assets
(Level 1)		Observable Inputs
(Level 2)		Unobservable Inputs
(Level 3)		Market Quotations (Level 2)*
SBA Debentures (1)
$341,301 $333,445 $— $— $333,445 $— 
September 2026 Notes324,548 321,090 — 321,090 — 0.988 
January 2027 Notes348,928 344,127 — 344,127 — 0.983 
2028 Convertible Notes281,076 280,152 — 280,152 — 0.974 
February 2029 Notes294,267 294,756 — 294,756 — 0.983 
June 2030 Notes343,104 344,617 — 344,617 — 0.985 
2031 Asset-Backed Notes64,466 63,325 — 63,325 — 0.982 
2033 Notes (2)
39,178 39,648 — 39,648 — 0.991 
MUFG Bank Facility (3)
220,000 220,000 — — 220,000 — 
SMBC Facility (3)
282,164 282,307 — — 282,307 — 
Total$2,539,032 $2,523,467 $— $1,687,715 $835,752 
* Level 2 market quotations are the observable market quotations per dollar at par value on the last trading day of the quarter ended March 31, 2026.
(1)The fair values of the SBA debentures (as defined in "Note 5 - Debt") are calculated based on the net present value of payments over the term of the notes using estimated market rates for similar notes and remaining terms.
(2)As of March 31, 2026, the 2033 Notes (as defined in “Note 5 - Debt”) were trading on the New York Stock Exchange (“NYSE”) at $24.78 per unit at par value. The par value at underwriting for the 2033 Notes was $25.00 per unit.
(3)The fair values of the outstanding debt under the MUFG Bank Facility and the SMBC Facility (each as defined in “Note 5 - Debt”) are equal to their outstanding principal balances as of March 31, 2026.
(in thousands)December 31, 2025
DescriptionCarrying
Value		Approximate
Fair Value		Identical Assets
(Level 1)
Observable Inputs
(Level 2) (1)
Unobservable Inputs
(Level 3) (2)
SBA Debentures$341,012 $335,905 $— $— $335,905 
March 2026 A Notes49,984 50,615 — — 50,615 
March 2026 B Notes49,983 50,627 — — 50,627 
September 2026 Notes324,302 320,186 — — 320,186 
January 2027 Notes348,596 346,365 — — 346,365 
2028 Convertible Notes280,412 286,870 — 286,870 — 
June 2030 Notes342,694 352,274 — — 352,274 
2031 Asset-Backed Notes64,530 63,486 — 63,486 — 
2033 Notes39,151 40,784 — 40,784 — 
MUFG Bank Facility (3)
168,000 168,000 — — 168,000 
SMBC Facility (3)
277,780 277,934 — — 277,934 
Total$2,286,444 $2,293,046 $— $391,140 $1,901,906 
(1)The Company estimated the fair value of its debt instruments classified within Level 2 using observable market quotations on the last trading day of the quarter ended December 31, 2025. Based on such market quotations, the 2031 Asset-Backed Notes were quoted for 0.982 and the
2028 Convertible Notes were quoted for 0.998 per dollar at par value. As of December 31, 2025, the 2033 Notes were trading on the NYSE at $25.49 per unit at par value. The par value at underwriting for the 2033 Notes was $25.00 per unit.
(2)As of December 31, 2025, the fair values of the SBA debentures, March 2026 A Notes, March 2026 B Notes, September 2026 Notes, January 2027 Notes, and June 2030 Notes (each as defined in “Note 5 - Debt”) are calculated based on the net present value of payments over the term of the notes using estimated market rates for similar notes and remaining terms.
(3)The fair values of the outstanding debt under the MUFG Bank Facility and the SMBC Facility are equal to their outstanding principal balances as of December 31, 2025.