v3.26.1
Joint Venture
 3 Months Ended
Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Joint Venture Joint Venture
On June 1, 2023, the Company entered into a limited liability company agreement (as amended, the “LLC Agreement”) with the Capital One Member (“COM”) to establish a joint venture to make certain unitranche loans to U.S. middle-market companies. The joint venture is called ULTRA III, LLC (“ULTRA III”). The Company and COM will provide capital to ULTRA III in the form of membership interests. The initial maximum investment amounts in ULTRA III for the Company and COM were approximately $200.0 million and $28.6 million, respectively, which correspond to initial membership interests of approximately 87.5% and 12.5%, respectively. The LLC Agreement is effective as of June 1, 2023. The initial term of ULTRA III is 11 years from the commencement of operations, and will continue until an event of termination occurs. The Company’s investment in ULTRA III cannot be transferred without the consent of the anchor members unless such investment is transferred to an affiliate and satisfies certain representations and warranties or in certain other limited circumstances.

On February 1, 2024, the Company entered into an amendment to the LLC Agreement with COM to increase the maximum investment amounts for the Company and COM in ULTRA III to $400.0 million and $57.1 million, respectively. The LLC Agreement was subsequently amended on October 9, 2024, which increased the maximum investment amounts for the Company and COM in ULTRA III to $550.0 million and $78.6 million, respectively. The LLC Agreement was subsequently amended on November 21, 2025, which further increased the maximum investment amounts for the Company and COM in ULTRA III to $750.0 million and $107.1 million, respectively. The increased investment amounts for the Company and COM correspond to membership interests of 87.5% and 12.5%, respectively.

The Company and COM may, from time-to-time, make additional contributions of capital or may receive returns of capital from ULTRA III. As of March 31, 2026 and December 31, 2025, the Company had made capital contributions (net of returns of capital) of $433.7 million and $414.5 million, respectively, and COM had made capital contributions (net of returns of capital) of $62.0 million and $59.2 million, respectively. As of March 31, 2026 and December 31, 2025, $305.1 million and $325.2 million, respectively, of capital remained uncalled from the Company and $43.6 million and $46.5 million, respectively, of capital remained uncalled from COM. As of March 31, 2026 and December 31, 2025, the Company and COM’s membership interests are 87.5% and 12.5%, respectively, for both periods.

All portfolio decisions and generally all other decisions in respect of ULTRA III must be approved by a credit committee of ULTRA III consisting of representatives of the Company and COM (generally with approval from a representative of each required). A Capital One entity is providing a senior revolving financing facility to ULTRA III. COM receives sourcing fees in connection with investments made by ULTRA III that are sourced by COM. Due to the deal sourcing arrangement for ULTRA III, the percentage of upfront fees that are paid to COM is substantially greater than its percentage membership interest in ULTRA III (the “Effective Sourcing Fee”). In this regard, for the three months ended March 31, 2026 and 2025, the Company, through its investment in ULTRA III, paid an Effective Sourcing Fee to COM of $0.4 million and $0.0 million, respectively.

The Company has determined that ULTRA III is an investment company under ASC 946, and in accordance with ASC 946, the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. The Company and COM have equal voting rights with respect to the joint venture. The Company will not consolidate the assets and liabilities of the ULTRA III joint venture.

The Company’s investment in ULTRA III is disclosed on the Company’s Consolidated Schedules of Investments as of March 31, 2026 and December 31, 2025.
The following table presents the schedule of investments of ULTRA III as of March 31, 2026:

Company(1)
.
Reference Rate and Spread(2)
.
Interest Rate(2)
.Maturity Date.Par Amount/Units.
Amortized Cost(3)
.Fair Value.Percentage of Net Assets
First Lien Debt
Commercial Services & Supplies
Sentinel Buyer Corp. (4)(6)(8)SF +5.00%8.67%11/6/2032$230,800 $228,624 $229,298 
Sentinel Buyer Corp. (4)(5)(6)11/6/203219,200 (187)(125)
228,437 229,173 47.05 %
Electronic Equipment, Instruments & Components
Bright Light Buyer, Inc. (4)(7)(8)SF +6.00%9.67%11/8/2029235,380 231,844 235,381 
231,844 235,381 48.32 %
Health Care Equipment & Supplies
EHOB, LLC (4)(7)(9)SF +4.50%8.20%12/18/202990,446 89,187 90,446 
89,187 90,446 18.57 %
Health Care Providers & Services
Compsych Investments Corp (4)(6)(9)SF +4.75%8.42%7/22/2031149,482 148,915 149,482 
Compsych Investments Corp (4)(5)(6)7/22/203143,333 (190)— 
Emerus Holdings, Inc. (4)(7)(9)SF +6.25%9.95%7/2/2029248,438 245,542 245,375 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.45%6/21/2031128,444 127,007 127,160 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.40%6/21/203134,281 33,865 33,938 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.42%6/21/203151,562 51,095 51,046 
FH BMX Buyer, Inc. (4)(5)(6)(9)SF +4.75%8.45%6/21/203149,978 18,740 18,722 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.45%6/21/203189,200 88,308 88,308 
Rsource Holdings, LLC (4)(6)(10)SF +4.75%8.35%11/10/2031172,813 170,737 167,758 
Rsource Holdings, LLC (4)(5)(6)11/10/203150,000 (675)(1,462)
883,344 880,327 180.73 %
Software
Brandt Information Services, LLC (4)(6)(8)SF +4.75%8.42%5/31/2030114,138 112,949 112,857 
Brandt Information Services, LLC (4)(6)(8)SF +4.75%8.42%5/31/203040,000 39,647 39,551 
Brandt Information Services, LLC (4)(5)(6)(8)SF +4.75%8.42%5/31/203050,000 23,378 23,439 
175,974 175,847 36.10 %
Total First Lien Debt$1,608,786 $1,611,174 330.77 %
Total Investment Portfolio$1,608,786 $1,611,174 330.77 %
Cash
Cash$49,783 $49,783 
Total Cash$49,783 $49,783 10.22 %
Total Investment Portfolio and Cash$1,658,569 $1,660,957 340.99 %
(1)Unless otherwise indicated, issuers of debt and equity investments held by the Company are denominated in dollars. All debt investments are income producing unless otherwise indicated. Certain portfolio company investments are subject to contractual restrictions on sales. The total par amount is presented for debt investments.
(2)The investments bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate (“SOFR” or “SF”), which reset, monthly, quarterly or semiannually. For each such investment, the Company has provided the spread over SOFR and the current contractual interest rate in effect at March 31, 2026. Certain investments are subject to a SOFR interest rate floor, or rate cap. SOFR based contracts may include a credit spread adjustment, which is included within the stated all-in interest rate, if applicable, that is charged in addition to the base rate and the stated spread.
(3)The cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method in accordance with U.S. GAAP.
(4)These investments were valued using unobservable inputs and are considered Level 3 investments. Fair value was determined in good faith by the Adviser as the Company’s valuation designee, subject to the oversight of the Board of Trustees (the “Board”) (see Note 2 and Note 5), pursuant to the Company’s valuation policy.
(5)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may be subject to unused commitment fees. Negative cost and fair value results from unamortized fees, which are capitalized to the investment cost. The unfunded loan commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the ULTRA III unfunded commitments:
InvestmentsCommitment TypeUnfunded CommitmentFair Value
Brandt Information Services, LLC1st Lien Senior Secured Delayed Draw Loan$26,000 $(292)
Compsych Investments Corp1st Lien Senior Secured Delayed Draw Loan43,333 — 
FH BMX Buyer, Inc.1st Lien Senior Secured Delayed Draw Loan30,756 (308)
Rsource Holdings, LLC1st Lien Senior Secured Delayed Draw Loan50,000 (1,462)
Sentinel Buyer Corp.1st Lien Senior Secured Delayed Draw Loan19,200 (125)
Total$169,289 $(2,187)

(6)The interest rate floor on these investments as of March 31, 2026 was 0.75%.
(7)The interest rate floor on these investments as of March 31, 2026 was 1.00%.
(8)The interest rate on these loans is subject to 1 month SOFR, which as of March 31, 2026 was 3.66%.
(9)The interest rate on these loans is subject to 3 month SOFR, which as of March 31, 2026 was 3.68%.
(10)The interest rate on these loans is subject to 6 month SOFR, which as of March 31, 2026 was 3.70%.
The following table presents the schedule of investments of ULTRA III as of December 31, 2025:

Company(1)
.
Reference Rate and Spread(2)
.
Interest Rate(2)
.Maturity Date.Par Amount/Units.
Amortized Cost(3)
.Fair Value.Percentage of Net Assets
First Lien Debt
Commercial Services & Supplies
Sentinel Buyer Corp. (4)(6)(8)SF +5.00%8.72%11/6/2032$230,800 $228,542 $228,542 
Sentinel Buyer Corp. (4)(5)(6)11/6/203219,200 (190)(188)
228,352 228,354 47.93 %
Electronic Equipment, Instruments & Components
Bright Light Buyer, Inc. (4)(7)(8)SF +6.00%9.72%11/8/2029235,994 232,206 235,993 
232,206 235,993 49.54 %
Health Care Equipment & Supplies
EHOB, LLC (4)(7)(9)SF +4.50%8.17%12/18/2029102,946 101,417 103,976 
101,417 103,976 21.83 %
Health Care Providers & Services
Compsych Investments Corp (4)(6)(9)SF +4.75%8.61%7/22/2031149,861 149,267 151,360 
Compsych Investments Corp (4)(5)(6)7/22/203143,333 (194)433 
Emerus Holdings, Inc. (4)(7)(9)SF +6.25%9.92%7/2/2029157,600 155,225 156,034 
Emerus Holdings, Inc. (4)(7)(9)SF +6.25%9.92%7/2/202992,400 91,482 91,482 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.42%6/21/2031128,770 127,261 129,338 
FH BMX Buyer, Inc. (4)(6)(9)SF +4.75%8.53%6/21/203134,367 33,931 34,519 
FH BMX Buyer, Inc. (4)(5)(6)(9)SF +4.75%8.64%6/21/203151,654 36,328 37,042 
FH BMX Buyer, Inc. (4)(5)(6)6/21/203149,978 (493)221 
Rsource Holdings, LLC (4)(6)(10)SF +5.00%8.60%11/10/2031173,250 171,077 168,890 
Rsource Holdings, LLC (4)(5)(6)11/10/203150,000 (689)(1,258)
763,195 768,061 161.22 %
Software
Brandt Information Services, LLC (4)(6)(8)SF +4.75%8.47%5/31/2030114,138 112,879 114,047 
Brandt Information Services, LLC (4)(6)(8)SF +4.75%8.47%5/31/203040,000 39,626 39,968 
Brandt Information Services, LLC (4)(5)(6)(8)SF +4.75%8.58%5/31/203050,000 23,353 23,961 
175,858 177,976 37.36 %
Total First Lien Debt$1,501,028 $1,514,360 317.88 %
Total Investment Portfolio$1,501,028 $1,514,360 317.88 %
Cash
Cash$37,543 $37,543 
Total Cash$37,543 $37,543 7.88 %
Total Investment Portfolio and Cash$1,538,571 $1,551,903 325.76 %
(1)Unless otherwise indicated, issuers of debt and equity investments held by the Company are denominated in dollars. All debt investments are income producing unless otherwise indicated. Certain portfolio company investments are subject to contractual restrictions on sales. The total par amount is presented for debt investments.
(2)The investments bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate (“SOFR” or “SF”), which reset, monthly, quarterly or semiannually. For each such investment, the Company has provided the spread over SOFR and the current contractual interest rate in effect at December 31, 2025. Certain investments are subject to a SOFR interest rate floor, or rate cap. SOFR based contracts may include a credit spread adjustment, which is included within the stated all-in interest rate, if applicable, that is charged in addition to the base rate and the stated spread.
(3)The cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method in accordance with U.S. GAAP.
(4)These investments were valued using unobservable inputs and are considered Level 3 investments. Fair value was determined in good faith by the Adviser as the Company’s valuation designee, subject to the oversight of the Board of Trustees (the “Board”) (see Note 2 and Note 5), pursuant to the Company’s valuation policy.
(5)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may be subject to unused commitment fees. Negative cost and fair value results from unamortized fees, which are capitalized to the investment cost. The unfunded loan commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the ULTRA III unfunded commitments:

InvestmentsCommitment TypeUnfunded CommitmentFair Value
Brandt Information Services, LLC1st Lien Senior Secured Delayed Draw Loan$26,000 $(21)
Compsych Investments Corp1st Lien Senior Secured Delayed Draw Loan43,333 433 
FH BMX Buyer, Inc.1st Lien Senior Secured Delayed Draw Loan14,840 66 
FH BMX Buyer, Inc.1st Lien Senior Secured Delayed Draw Loan49,978 221 
Rsource Holdings, LLC1st Lien Senior Secured Delayed Draw Loan50,000 (1,258)
Sentinel Buyer Corp.1st Lien Senior Secured Delayed Draw Loan19,200 (188)
Total$203,351 $(747)

(6)The interest rate floor on these investments as of December 31, 2025 was 0.75%.
(7)The interest rate floor on these investments as of December 31, 2025 was 1.00%.
(8)The interest rate on these loans is subject to 1 month SOFR, which as of December 31, 2025 was 3.69%.
(9)The interest rate on these loans is subject to 3 month SOFR, which as of December 31, 2025 was 3.65%.
(10)The interest rate on these loans is subject to 6 month SOFR, which as of December 31, 2025 was 3.57%.
The following table presents the selected statements of assets and liabilities information of ULTRA III as of March 31, 2026 and December 31, 2025:

March 31, 2026December 31, 2025
ASSETS(Unaudited)
Investments at fair value (amortized cost of $1,608,786 and $1,501,028 at March 31, 2026 and December 31, 2025, respectively)
$1,611,174 $1,514,360 
Cash49,783 37,543 
Interest receivable5,103 9,546 
Total assets$1,666,060 $1,561,449 
LIABILITIES
Debt$1,161,129 $1,068,394 
Interest payable and other liabilities17,829 16,661 
Total liabilities1,178,958 1,085,055 
MEMBERS’ EQUITY
Members’ Equity487,102 476,394 
Total Members’ Equity487,102 476,394 
Total liabilities and members’ equity$1,666,060 $1,561,449 
The following table presents the selected statements of operations information of ULTRA III for the three months ended March 31, 2026 and 2025 (Unaudited):

Three Months Ended March 31,
20262025
Investment income:
Interest income$35,583 $27,628 
Total investment income35,583 27,628 
Expenses:
Interest expense17,014 13,636 
Other expenses840 655 
Total expenses17,854 14,291 
Net investment income17,729 13,337 
Net realized and change in unrealized gain (loss) on investments
Net realized gain (loss) on investments— — 
Net change in unrealized appreciation (depreciation) on investments(10,944)1,423 
Net realized and change in unrealized gain (loss) on investments(10,944)1,423 
Net increase (decrease) in net assets resulting from operations$6,785 $14,760