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
Under existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. This accounting guidance emphasizes valuation techniques that maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets.
Level 3: Inputs that are unobservable for an asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
As of March 31, 2026 and December 31, 2025, the Company’s investments were categorized as follows in the fair value hierarchy:
March 31, 2026
Valuation Inputs(Unaudited)December 31, 2025
Level 1—Price quotations in active markets$— $22 
Level 2—Significant other observable inputs13 14 
Level 3—Significant unobservable inputs10,549 11,005 
Investments measured at net asset value(1)
1,707 1,968 
$12,269 $13,009 
____________
(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
As of March 31, 2026 and December 31, 2025, the Company had certain cash equivalents invested in money market accounts
which were categorized as Level 1 in the fair value hierarchy. In addition, the Company had foreign currency forward contracts and interest rate swaps, as described in Note 7, which were categorized as Level 2 in the fair value hierarchy as of March 31, 2026 and December 31, 2025.
The Board of Directors is responsible for overseeing the valuation of the Company’s portfolio investments at fair value as determined in good faith pursuant to the Adviser’s valuation policy. The Board of Directors has designated the Adviser with day-to-day responsibility for implementing the portfolio valuation process set forth in the Adviser’s valuation policy.
The Company’s investments consist primarily of debt investments that were acquired directly from the issuer. Debt investments, for which broker quotes are not available, are valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, the borrower’s ability to adequately service its debt, prevailing interest rates for like investments, expected cash flows, call features, anticipated repayments and other relevant terms of the investments. Except as described below, all of the Company’s equity/other investments are also valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, contractual rights ascribed to such investments, as well as various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in limited instances, book value or liquidation value. An investment that is newly issued and purchased near the date of the financial statements is valued at cost if the Adviser determines that the cost of such investment is the best indication of its fair value. Such investments described above are typically classified as Level 3 within the fair value hierarchy. Investments that are traded on an active public market are valued at their closing price as of the date of the financial statements and are classified as Level 1 within the fair value hierarchy. Except as described above, the Adviser typically values the Company’s other investments by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which are provided by independent third-party pricing services and screened for validity by such services and are typically classified as Level 2 within the fair value hierarchy.
The Adviser periodically benchmarks the bid and ask prices it receives from the third-party pricing services and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Adviser believes that these prices are reliable indicators of fair value. The Adviser reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Adviser’s valuation policy.
The following is a reconciliation for the three months ended March 31, 2026 and 2025 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
 For the Three Months Ended March 31, 2026
 
Senior Secured
Loans—First
Lien
Senior Secured
Loans—Second
Lien
Other Senior
Secured
Debt		Subordinated
Debt		Asset Based FinanceEquity/OtherTotal
Fair value at beginning of period$7,512 $538 $52 $126 $1,694 $1,083 $11,005 
Accretion of discount (amortization of premium)3 1 — 1 — — 5 
Net realized gain (loss)(94)(1)— — 1 (75)(169)
Net change in unrealized appreciation (depreciation)(139)(74)(19)(6)(29)(63)(330)
Purchases503 — — 29 160 60 752 
Paid-in-kind interest21 — — — 4 13 38 
Sales and repayments(506)(5)— (51)(170)(20)(752)
Transfers into Level 3— — — — — — — 
Transfers out of Level 3— — — — — — — 
Fair value at end of period$7,300 $459 $33 $99 $1,660 $998 $10,549 
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date$(255)$(74)$(19)$(5)$(28)$(63)$(444)

 For the Three Months Ended March 31, 2025
 
Senior Secured
Loans—First
Lien
Senior Secured
Loans—Second
Lien
Other Senior
Secured
Debt		Subordinated
Debt		Asset Based FinanceEquity/OtherTotal
Fair value at beginning of period$7,780 $693 $46 $233 $2,102 $1,181 $12,035 
Accretion of discount (amortization of premium)7 1 — — 1 — 9 
Net realized gain (loss)(13)— 1 (10)14 (10)(18)
Net change in unrealized appreciation (depreciation)1 (12)— 16 1 (21)(15)
Purchases1,267 — 19 7 380 47 1,720 
Paid-in-kind interest36 1 — 4 6 17 64 
Sales and repayments(873)— (20)(8)(334)(117)(1,352)
Transfers into Level 3— — — — — — — 
Transfers out of Level 3— — — — — — — 
Fair value at end of period$8,205 $683 $46 $242 $2,170 $1,097 $12,443 
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date$(10)$(11)$— $9 $1 $(44)$(55)
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of March 31, 2026 and December 31, 2025 were as follows:
Type of Investment
Fair Value at
March 31, 2026
(Unaudited)
Valuation
Technique(1)
Unobservable
Input		Range (Weighted Average)
Impact to Valuation from an Increase in Input(2)
Senior Debt$6,058 Discounted Cash FlowDiscount Rate
7.1% - 32.0% (10.5%)
Decrease
1,709 WaterfallEBITDA Multiple
1.4x - 17.1x (8.5x)
Increase
25 Cost
Subordinated Debt61 Discounted Cash FlowDiscount Rate
11.0% - 15.4% (14.4%)
Decrease
29 
Other(3)
9 WaterfallEBITDA Multiple
2.6x - 10.7x (5.7x)
Increase
Asset Based Finance1,013 Discounted Cash FlowDiscount Rate
4.6% - 28.8% (13.0%)
Decrease
425 WaterfallEBITDA Multiple
1.0x - 1.2x (1.1x)
Increase
182 
Other(3)
39 
Cost
1 Indicative Dealer Quotes
6.8% - 6.8% (6.8%)
Increase
Equity/Other521 WaterfallEBITDA Multiple
3.5x - 25.5x (8.8x)
Increase
456 Discounted Cash FlowDiscount Rate
3.5% - 21.1% (12.2%)
Decrease
18 
Cost
3 
Other(3)
Total$10,549 
 
Type of Investment
Fair Value at
December 31, 2025
Valuation
Technique(1)
Unobservable
Input		Range
Impact to Valuation from an Increase in Input(2)
Senior Debt$6,500 Discounted Cash FlowDiscount Rate
4.6% - 24.9% (10.4%)
Decrease
1,400 WaterfallEBITDA Multiple
0.8x - 15.1x (9.5x)
Increase
202 Cost
Subordinated Debt112 Discounted Cash FlowDiscount Rate
9.9% - 15.1% (12.4%)
Decrease
14 WaterfallEBITDA Multiple
2.8x - 15.1x (7.9x)
Increase
Asset Based Finance1,103 Discounted Cash FlowDiscount Rate
4.7% - 43.7% (12.6%)
Decrease
429 WaterfallEBITDA Multiple
1.0x - 1.3x (1.1x)
Increase
Illiquidity Discount
10.0% - 10.0% (10.0%)
Decrease
112 
Other(3)
49 Cost
1 Indicative Dealer Quotes
6.9% - 6.9% (6.9%)
Increase
Equity/Other607 WaterfallEBITDA Multiple
4.5x - 25.5x (9.9x)
Increase
Illiquidity Discount
10.0% - 15.0% (11.2%)
Decrease
457 Discounted Cash FlowDiscount Rate
3.8% - 20.1% (12.1%)
Decrease
19 
Other(3)
Total$11,005 
_______________
(1)Investments using a market quotes valuation technique were primarily valued by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which were provided by independent third-party pricing services and screened for validity by such services. Investments valued using an EBITDA multiple or a revenue multiple pursuant to the market comparables valuation technique may be conducted using an enterprise valuation waterfall analysis.
(2)Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.
(3)Fair value based on expected outcome of proposed corporate transactions and/or other factors.