v3.26.1
Derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company enters into derivative financial instruments in the normal course of business from time to time to achieve certain risk management objectives, including managing its interest rate and foreign currency risk exposures. For derivative contracts, the Company enters into netting arrangements with its counterparties. In accordance with authoritative guidance, the Company offsets fair value amounts recognized for derivative instruments with the same counterparty under a master netting arrangement.
Foreign Currency Forwards
The Company may enter into forward currency exchange contracts to reduce the exposure to foreign currency exchange rate fluctuations of the Company and its shareholders, as described in Note 2. The fair value of derivative contracts open as of March 31, 2026 and December 31, 2025 is included on the Consolidated Schedules of Investments by
contract. The Company had no collateral payable as of March 31, 2026 and December 31, 2025. Collateral amounts posted are included in collateral on forward currency exchange contracts on the Consolidated Statements of Assets and Liabilities. Collateral payable is included in collateral payable on forward currency exchange contracts on the Consolidated Statements of Assets and Liabilities.
During the three months ended March 31, 2026 and March 31, 2025, the average notional exposure for foreign currency forward contracts was $125.5 million and $65.8 million, respectively.
Interest Rate Swaps
The Company enters into interest rate swap transactions from time to time to hedge fixed rate debt obligations and certain fixed rate debt investments. The Company’s interest rate swaps are all with one counterparty and are centrally cleared through a registered commodities exchange. Refer to the Consolidated Schedule of Investments for additional disclosure regarding these interest rate swaps.

The following table presents the amounts paid and received on the Company's interest rate swap transactions, excluding upfront fees, as of March 31, 2026 and December 31, 2025:

As of
March 31, 2026
Maturity Date
Notional Amount
Paid
Received
Net
Interest rate swap
9/8/2028
$
300,000 
$
(46,961)
$
44,711 
$
(2,250)

As of December 31, 2025
Maturity Date
Notional Amount
Paid
Received
Net
Interest rate swap
9/9/2028
$
300,000 
$
(42,401)
$
31,661 
$
(10,740)

For the three months ended March 31, 2026 and March 31, 2025, the Company recognized $(8.1) million and $2.1 million, respectively, of unrealized gains (losses) on interest rate swaps designated as hedging instruments is included in the Derivatives at Fair value balance on the Consolidated Statements of Assets and Liabilities. For the three months ended March 31, 2026 and March 31, 2025, this amount is offset by an increase (decrease) of $(8.1) million and $2.1 million, respectively, for a change in the carrying value of the 2024A Notes. The Company did not enter into any interest rate swaps until February 6, 2025. See Note 6 for further information regarding interest rate swap contracts.

The Company is required under the terms of its derivatives agreements to pledge assets as collateral to secure its obligations underlying the derivatives. The amount of collateral required varies over time based on the mark-to-market value, notional amount and remaining term of the derivatives, and may exceed the amount owed by the Company on a mark-to-market basis. Any failure by the Company to fulfill any collateral requirement (e.g., a so-called “margin call”) may result in a default. In the event of a default by a counterparty, the Company would be an unsecured creditor to the extent of any such overcollateralization.

The Company may enter into other derivative instruments and incur other exposures with the same or other counterparties in the future.
The following tables present both gross and net information about derivative instruments in the Consolidated Statements of Assets and Liabilities as of March 31, 2026 and December 31, 2025.
March 31, 2026
Counterparty
Gross
Amount
of Assets
Gross Amount of
(Liabilities)
Net amounts presented in the
Statements of
Assets and Liabilities
Collateral
Received/Pledged(1)
Net
Amounts(2)
State Street Bank and Trust Company
$
540 
$
— 
$
540 
$
— 
$
540 
Morgan Stanley
$
2,450 
$
— 
$
2,450 
$
(2,250)
$
200 
Total
$
2,990 
$
— 
$
2,990 
$
(2,250)
$
740 

December 31, 2025
Counterparty
Gross
Amount
of Assets
Gross Amount of
(Liabilities)
Net amounts presented in the
Statements of
Assets and Liabilities
Collateral
Received/Pledged(1)
Net
Amounts(2)
State Street Bank and Trust Company
$
405 
$
— 
$
405 
$
— 
$
405 
Morgan Stanley
$
10,576 
$
— 
$
10,576 
$
(10,740)
$
(164)
Total
$
10,981 
$
— 
$
10,981 
$
(10,740)
$
241 

(1)Amount excludes excess cash collateral paid.
(2)Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual set off rights under the agreement. Net amount excludes any over-collateralized amounts, if applicable.
The effect of transactions in derivative instruments on the Consolidated Statements of Operations during the three months ended March 31, 2026 was as follows:

For the Three Months Ended
March 31, 2026
Realized gain (loss) on foreign currency forward contracts
$
2,804 
Net change in unrealized gain (loss) on foreign currency forward contracts
135 
Total net realized and unrealized gain (loss) on foreign currency forward contracts
$
2,939 
The effect of transactions in derivative instruments on the Consolidated Statements of Operations during the three months ended March 31, 2025 was as follows:

For the Three Months Ended
March 31, 2025
Realized gain (loss) on foreign currency forward contracts
$
(1,354)
Net change in unrealized gain (loss) on foreign currency forward contracts
(89)
Total net realized and unrealized gain (loss) on foreign currency forward contracts
$
(1,443)