| Fair Value Measurements |
Note 6. Fair Value Measurements The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below: Level 1 — unadjusted quoted prices in active markets for identical investments Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.) Level 3 — unobservable inputs (including the Fund’s own assumptions based on the best information available) The following is a summary of the inputs used, as of March 31, 2026 and December 31, 2025, involving the Fund’s assets carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities.
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March 31, 2026 |
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|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First Lien Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,613,816,643 |
|
|
$ |
1,613,816,643 |
|
Unsecured Debt |
|
|
— |
|
|
|
— |
|
|
|
598,199 |
|
|
|
598,199 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
21,241,776 |
|
|
|
21,241,776 |
|
Mutual Funds |
|
|
26,887,322 |
|
|
|
— |
|
|
|
— |
|
|
|
26,887,322 |
|
Total Investments |
|
$ |
26,887,322 |
|
|
$ |
— |
|
|
$ |
1,635,656,618 |
|
|
$ |
1,662,543,940 |
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December 31, 2025 |
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|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First Lien Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,600,336,929 |
|
|
$ |
1,600,336,929 |
|
Unsecured Debt |
|
|
— |
|
|
|
— |
|
|
|
103,631 |
|
|
|
103,631 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
20,153,337 |
|
|
|
20,153,337 |
|
Mutual Funds |
|
|
19,087,624 |
|
|
|
— |
|
|
|
— |
|
|
|
19,087,624 |
|
Total Investments |
|
$ |
19,087,624 |
|
|
$ |
— |
|
|
$ |
1,620,593,897 |
|
|
$ |
1,639,681,521 |
|
The following tables provide a reconciliation of the beginning and ending balances for investments for which fair value was determined using Level 3 inputs for the three months ended March 31, 2026 and 2025:
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Three Months Ended March 31, 2026 |
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First Lien Debt |
|
|
Unsecured Debt |
|
|
Equity |
|
|
Total Investments |
|
Fair value, beginning of period |
|
$ |
1,600,336,929 |
|
|
$ |
103,631 |
|
|
$ |
20,153,337 |
|
|
$ |
1,620,593,897 |
|
Purchases of investments |
|
|
123,708,372 |
|
|
|
600,699 |
|
|
|
938,017 |
|
|
|
125,247,088 |
|
Proceeds from principal repayments and sales of investments |
|
|
(110,445,611 |
) |
|
|
(128,340 |
) |
|
|
— |
|
|
|
(110,573,951 |
) |
Accretion of discount/ amortization of premium |
|
|
2,841,267 |
|
|
|
150 |
|
|
|
— |
|
|
|
2,841,417 |
|
Net realized gain (loss) |
|
|
420,424 |
|
|
|
— |
|
|
|
25,941 |
|
|
|
446,365 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(3,044,738 |
) |
|
|
22,059 |
|
|
|
124,481 |
|
|
|
(2,898,198 |
) |
Fair value, end of period |
|
$ |
1,613,816,643 |
|
|
$ |
598,199 |
|
|
$ |
21,241,776 |
|
|
$ |
1,635,656,618 |
|
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of March 31, 2026 |
|
$ |
(5,103,589 |
) |
|
$ |
(2,650 |
) |
|
$ |
124,481 |
|
|
$ |
(4,981,758 |
) |
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Three Months Ended March 31, 2025 |
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First Lien Debt |
|
|
Second Lien Debt |
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|
Equity |
|
|
Total Investments |
|
Fair value, beginning of period |
|
$ |
1,525,175,632 |
|
|
$ |
37,433,922 |
|
|
$ |
18,047,546 |
|
|
$ |
1,580,657,100 |
|
Purchases of investments |
|
|
77,649,013 |
|
|
|
590,949 |
|
|
|
616,591 |
|
|
|
78,856,553 |
|
Proceeds from principal repayments and sales of investments |
|
|
(19,499,606 |
) |
|
|
(10,000,000 |
) |
|
|
— |
|
|
|
(29,499,606 |
) |
Accretion of discount/ amortization of premium |
|
|
1,735,149 |
|
|
|
285,112 |
|
|
|
— |
|
|
|
2,020,261 |
|
Net realized gain (loss) |
|
|
(12,596 |
) |
|
|
— |
|
|
|
— |
|
|
|
(12,596 |
) |
Net change in unrealized appreciation (depreciation) |
|
|
(6,057,264 |
) |
|
|
(2,551,511 |
) |
|
|
(1,145,575 |
) |
|
|
(9,754,350 |
) |
Fair value, end of period |
|
$ |
1,578,990,328 |
|
|
$ |
25,758,472 |
|
|
$ |
17,518,562 |
|
|
$ |
1,622,267,362 |
|
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of March 31, 2025 |
|
$ |
(6,057,804 |
) |
|
$ |
(2,266,399 |
) |
|
$ |
(1,145,575 |
) |
|
$ |
(9,469,778 |
) |
The information used in the above reconciliation represents period to date activity for any investments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. Transfers in or out of Level 3 represent the beginning value of any security or instrument where a change in the pricing level occurred from the beginning to the end of the period. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions, corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in net gain (loss) on the Fund’s consolidated statements of operations. The following provides information on Level 3 securities held by the Fund that were valued as of March 31, 2026 and December 31, 2025 based on unobservable inputs:
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March 31, 2026 |
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Range |
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Fair Value |
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Valuation Technique |
|
Unobservable Input |
|
Low |
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High |
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Weighted Average |
|
|
Impact to Valuation from
an Increase in Input* |
First Lien Debt |
|
$ |
1,613,816,643 |
|
|
Market approach |
|
Transaction price |
|
$ |
98.00 |
|
|
$ |
99.75 |
|
|
$ |
98.95 |
|
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Increase |
|
|
|
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|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
0.3 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
Increase |
|
|
|
|
|
Discounted cash flow |
|
Yield |
|
|
8.2 |
% |
|
|
22.5 |
% |
|
|
10.2 |
% |
|
Decrease |
Unsecured Debt |
|
|
598,199 |
|
|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
1.3 |
|
|
Increase |
|
|
|
|
|
Discounted cash flow |
|
Yield |
|
|
15.2 |
% |
|
|
15.2 |
% |
|
|
15.2 |
% |
|
Decrease |
Equity |
|
|
21,241,776 |
|
|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
0.6 |
|
|
|
1.3 |
|
|
|
1.3 |
|
|
Increase |
|
|
|
|
|
Market comparable |
|
Enterprise value/EBITDA multiple (EV/EBITDA) |
|
|
5.3 |
|
|
|
17.3 |
|
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|
10.8 |
|
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Increase |
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|
Book value |
|
Discount rate |
|
|
4.3 |
% |
|
|
4.3 |
% |
|
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4.3 |
% |
|
Decrease |
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Book value |
|
Book value multiple |
|
|
1.0 |
|
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|
1.0 |
|
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|
1.0 |
|
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Increase |
Total |
|
$ |
1,635,656,618 |
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December 31, 2025 |
|
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Range |
|
|
|
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|
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|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Low |
|
|
High |
|
|
Weighted Average |
|
|
Impact to Valuation from
an Increase in Input* |
First Lien Debt |
|
$ |
1,600,336,929 |
|
|
Market approach |
|
Transaction price |
|
$ |
99.00 |
|
|
$ |
99.50 |
|
|
$ |
99.00 |
|
|
Increase |
|
|
|
|
|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
0.3 |
|
|
|
1.2 |
|
|
|
1.1 |
|
|
Increase |
|
|
|
|
|
Discounted cash flow |
|
Yield |
|
|
7.9 |
% |
|
|
19.5 |
% |
|
|
10.1 |
% |
|
Decrease |
Unsecured Debt |
|
|
103,631 |
|
|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
Increase |
Equity |
|
|
20,153,337 |
|
|
Market approach |
|
Transaction price |
|
$ |
— |
|
|
$ |
1,000.00 |
|
|
$ |
1,000.00 |
|
|
Increase |
|
|
|
|
|
Market approach |
|
Discount rate |
|
|
40.0 |
% |
|
|
40.0 |
% |
|
|
40.0 |
% |
|
Decrease |
|
|
|
|
|
Market approach |
|
Net Asset Value |
|
$ |
1,223.00 |
|
|
$ |
1,223.00 |
|
|
$ |
1,223.00 |
|
|
Increase |
|
|
|
|
|
Market comparable |
|
Enterprise value/Revenue multiple (EV/R) |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
Increase |
|
|
|
|
|
Market comparable |
|
Enterprise value/EBITDA multiple (EV/EBITDA) |
|
|
5.3 |
|
|
|
17.5 |
|
|
|
11.0 |
|
|
Increase |
Total |
|
$ |
1,620,593,897 |
|
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* Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Financial Instruments Not Carried at Fair Value Debt The carrying value of the Fund’s debt, which would be categorized as Level 3 within the fair value hierarchy, as of March 31, 2026 and December 31, 2025, approximates fair value.
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