| Fair Value Measurements |
Fair Value Measurements The following tables present the fair value hierarchy of investments and derivatives as of March 31, 2026 and December 31, 2025, categorized by the ASC 820 valuation hierarchy, as previously described: | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | Level 1 | | Level 2 | | Level 3 | | Total | First Lien Debt | $ | — | | $ | 146,128 | | $ | 2,570,274 | | $ | 2,716,402 | Second Lien Debt | — | | 77,589 | | 123,306 | | 200,895 | Preferred Equity | — | | — | | 42,986 | | 42,986 | Common Stocks | — | | — | | 7,347 | | 7,347 | Asset Backed Securities | — | | 16,033 | | — | | 16,033 | Total Investments at fair value | $ | — | | $ | 239,750 | | $ | 2,743,913 | | $ | 2,983,663 | Interest rate swap | — | | 2,450 | | — | | 2,450 | Foreign currency forward contracts | — | | 540 | | — | | 540 | Total | $ | — | | $ | 242,740 | | $ | 2,743,913 | | $ | 2,986,653 |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | Total | First Lien Debt | $ | — | | $ | 174,024 | | $ | 2,442,840 | | $ | 2,616,864 | Second Lien Debt | — | | 91,955 | | 133,945 | | 225,900 | Preferred Equity | | | | | 43,101 | | 43,101 | Common Stocks | | | | | 7,694 | | 7,694 | Total Investments at fair value | $ | — | | $ | 265,979 | | $ | 2,627,580 | | $ | 2,893,559 | Interest rate swap | | | 10,576 | | — | | 10,576 | Foreign currency forward contracts | | | 405 | | — | | 405 | Total | $ | — | | $ | 276,960 | | $ | 2,627,580 | | $ | 2,904,540 |
The following tables present the change in the fair value of financial instruments for the three months ended March 31, 2026 and March 31, 2025, for which Level 3 inputs were used to determine the fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, 2026 | | First Lien Debt | | Second Lien Debt | | Preferred Equity | | Common Stocks | | | | Total Investments | Fair value, beginning of period | $ | 2,442,840 | | $ | 133,945 | | $ | 43,101 | | $ | 7,694 | | | | $ | 2,627,580 | Purchases of investments (1) | 199,930 | | — | | 223 | | — | | | | 200,153 | Proceeds from principal repayments and sales of investments | (68,234) | | — | | — | | — | | | | (68,234) | Accretion of discount/amortization of premium | 1,162 | | 113 | | — | | — | | | | 1,275 | Net realized gain (loss) | 191 | | — | | — | | — | | | | 191 | Net change in unrealized appreciation (depreciation) | (5,615) | | (10,752) | | (338) | | (347) | | | | (17,052) | Transfers into Level 3 (2) | — | | — | | — | | — | | | | — | Transfers out of Level 3 (2) | — | | — | | — | | — | | | | — | Fair value, end of period | $ | 2,570,274 | | $ | 123,306 | | $ | 42,986 | | $ | 7,347 | | | | $ | 2,743,913 | Net change in unrealized appreciation (depreciation) related to financial instruments still held as March 31, 2026 | $ | (5,483) | | $ | (10,750) | | $ | (337) | | $ | (346) | | | | $ | (16,916) |
(1) Purchases include PIK interest, if applicable. (2) Transfers between levels are recognized at the beginning of the year in which the transfers occur. For the three months ended March 31, 2026, there were no transfers into or out of Level 3.
| | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, 2025 | | | | First Lien Debt | | Second Lien Debt | | Equity Investments | | Total Investments | | | Fair value, beginning of period | $ | 1,928,818 | | $ | 50,358 | | $ | 6,176 | | $ | 1,985,352 | | | Purchases of investments (1) | 120,790 | | 29,093 | | 21,792 | | 171,675 | | | Proceeds from principal repayments and sales of investments | (55,527) | | (5,544) | | — | | (61,071) | | | Accretion of discount/amortization of premium | 1,807 | | 184 | | — | | 1,991 | | | Net realized gain (loss) | (2,497) | | — | | — | | (2,497) | | | Net change in unrealized appreciation (depreciation) | (645) | | (385) | | 176 | | (854) | | | Transfers into Level 3 (2) | — | | — | | — | | — | | | Transfers out of Level 3 (2) | (22,334) | | — | | — | | (22,334) | | | Fair value, end of period | $ | 1,970,412 | | | $ | 73,706 | | | $ | 28,144 | | | $ | 2,072,262 | | | | Net change in unrealized appreciation (depreciation) related to financial instruments still held as of March 31, 2025 | $ | (714) | | | $ | (254) | | | $ | 176 | | | $ | (792) | | | | | | | | | | | | | |
(1) Purchases include PIK interest, if applicable. (2) Transfers between levels are recognized at the beginning of the year in which the transfers occur. For the three months ended March 31, 2025, transfers from Level 3 to Level 2 were primarily due to increased price transparency.
Significant Unobservable Inputs In accordance with ASC 820, the following tables provide quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of March 31, 2026 and December 31, 2025. 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. | | | | | | | | | | | | | | | | March 31, 2026 | | Fair Value | Valuation Techniques | Unobservable Input | Range/Input (Weighted Average) (1) | First Lien Debt | $ | 2,500,612 | | Discounted cash flow | Comparative Yield | 7.6% - 16.6% (9.1%) | First Lien Debt | 22,005 | Market Comparable Companies | EBITDA Multiple | 6x - 7x (6.6x) | First Lien Debt | 40,018 | Precedent transactions | Transaction Price | N/A | First Lien Debt | 7,639 | Discounted cash flow | Discount Rate | 8.0% | Total First Lien Debt | $ | 2,570,274 | | | | Second Lien Debt | 123,306 | Discounted cash flow | Comparative Yield | 9.3% - 23.4% (15.0%) | Total Second Lien Debt | $ | 123,306 | | | | Preferred Equity | 31,817 | Discounted cash flow | Comparative Yield | 12.6% - 17.7% (13.7%) | Preferred Equity | 523 | Market Comparable Companies | EBITDA Multiple | 8.1x - 9.0x (8.5x) | Preferred Equity | 10,646 | Discounted cash flow | Discount Rate | 15.5% | Total Preferred Equity | $ | 42,986 | | | | Common Stocks | 2,173 | Market Comparable Companies | EBITDA Multiple | 9.0x - 11.5x (11.3x) | Common Stocks | 320 | Precedent transactions | Transaction Price | N/A | Common Stocks | 4,854 | Discounted cash flow | Discount Rate | 23.3% | Total Common Stocks | $ | 7,347 | | | | | | | | | | | | | | Total | $ | 2,743,913 | | | |
| | | | | | | | | | | | | | | | December 31, 2025 | | Fair Value | Valuation Techniques | Unobservable Input | Range/Input (Weighted Average) (1) | First Lien Debt | $ | 2,272,969 | | Discounted cash flow | Comparative Yield | 7.4% - 16.2% (9.0%) | First Lien Debt | 13,079 | Market Comparable Companies | EBITDA Multiple | 7.0x | First Lien Debt | 149,153 | Precedent transactions | Transaction Price | N/A | First Lien Debt | 7,639 | Discounted cash flow | EBITDA Multiple | 12.0x | Total First Lien Debt | $ | 2,442,840 | | | | Second Lien Debt | 133,945 | Discounted cash flow | Comparative Yield | 9.0% - 15.1% (11.9%) | Total Second Lien Debt | $ | 133,945 | | | | Preferred Equity | 32,137 | Discounted cash flow | Comparative Yield | 12.6% - 20.6% (13.8%) | Preferred Equity | 321 | Market Comparable Companies | EBITDA Multiple | 10.0x | Preferred Equity | 10,643 | Discounted cash flow | EBITDA Multiple | 7.0x | Total Preferred Equity | $ | 43,101 | | | | Common Stocks | 2,470 | Market Comparable Companies | EBITDA Multiple | 10.0x - 12.5x (11.9x) | Common Stocks | 370 | Precedent transactions | Transaction Price | N/A | Common Stocks | 4,854 | Discounted cash flow | Discount Rate | 23.9% | Total Common Stocks | $ | 7,694 | | | | Total | $ | 2,627,580 | | | |
(1) Weighted averages are calculated based on fair value of investments.
The Company used the income approach to determine the fair value of certain Level 3 assets as of March 31, 2026 and December 31, 2025. The significant unobservable inputs used in the income approach is the comparative yield and discount rate. The comparative yield and discount rate is used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield or discount rate would result in a decrease/increase, respectively, in the fair value. An increase/decrease in the EBITDA multiple would result in an increase/decrease, respectively, in the fair value. Financial instruments disclosed but not carried at fair value
The following table presents the fair value of the Company's debt obligations as of March 31, 2026 and December 31, 2025: | | | | | | | | | | | | | As of | | March 31, 2026 | | December 31, 2025 | JPM Credit Facility | $ | 756,146 | | $ | 776,146 | BNP Credit Facility | 316,500 | | 261,500 | 2024A Senior Notes | 302,450 | | 310,576 | CIBC Credit Facility | 96,000 | | 96,000 | Total Debt | $ | 1,471,096 | | $ | 1,444,222 |
The carrying values of the debt obligations (Note 6) generally approximate their respective fair values. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, if applicable, or market quotes, if available. Excluding the impact of unamortized deferred financing costs, the carrying value of the 2024A Senior Notes approximate their respective fair value due to their inclusion of the effective portion of the fair value of the interest rate swap, as further discussed in Note 7. Derivative Instruments to these consolidated financial statements.
The carrying value of other financial assets and liabilities approximates their fair value based on the short term nature of these items. The fair value of the debt obligations within the credit facilities and the 2024A Senior Notes would be categorized as Level 2 and Level 3, respectively, under the ASC 820-10 hierarchy.
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