Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Summary of Company's Assets Measured at Fair Value by Investment Type on a Recurring Basis

The Company’s assets measured at fair value by investment type on a recurring basis as of June 30, 2026 were as follows (in thousands):


	Fair Value Measurements at Reporting Date Using
	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Measured at
Assets	(Level 1)		(Level 2)		(Level 3)		Net Asset Value(1)		Total
Debt	$	—	$	—	$	2,437,325	$	—	$	2,437,325
Equity		1,678		—		182,966		29,810		214,454
Warrants		—		—		80,522		—		80,522
Total Investments at fair value		1,678		—		2,700,813		29,810		2,732,301
Cash and Cash Equivalents		22,177		—		—		—		22,177
Derivative Instruments		—		1,583		—		—		1,583
Total Investments including cash and cash equivalents and derivative instruments	$	23,855	$	1,583	$	2,700,813	$	29,810	$	2,756,061

(1)

In accordance with ASC 820, certain equity investments in Multi-Sector Holdings are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value, and thus have not been classified in the fair value hierarchy.

The Company’s assets measured at fair value by investment type on a recurring basis as of December 31, 2025 were as follows (in thousands):


	Fair Value Measurements at Reporting Date Using
	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Measured at
Assets	(Level 1)		(Level 2)		(Level 3)		Net Asset Value(1)		Total
Debt	$	—	$	—	$	2,199,964	$	—	$	2,199,964
Equity		—		—		108,342		31,843		140,185
Warrants		—		—		77,926		—		77,926
Total Investments at fair value		—		—		2,386,232		31,843		2,418,075
Cash and Cash Equivalents		19,110		—		—		—		19,110
Derivative Instruments		—		8		—		—		8
Total Investments including cash and cash equivalents	$	19,110	$	8	$	2,386,232	$	31,843	$	2,437,193

(1)

Summary of Significant Unobservable Inputs Used to Measure The Fair Value Of The Level 3 Portfolio Investments

The following table provides a summary of the significant unobservable inputs used to measure the fair value of the Level 3 portfolio investments as of June 30, 2026.


	Fair Value as of
	June 30, 2026		Valuation Techniques/	Unobservable		Weighted
Investment Type	(in thousands)		Methodologies	Inputs (1)	Range	Average (2)

Debt investments	$	1,972,326	Discounted Cash Flows	Hypothetical Market Yield	5.7% - 27.2%		13.5	%

		403,942	Cost approximates fair value (6)	n/a	n/a	n/a

		15,081	Transaction Precedent (7)	Transaction Price	n/a	n/a

		18,728	Scenario Analysis	Probability Weighting of Alternative Outcomes	15.0% - 85.0%	n/a

		27,248	Enterprise Value (8)	Performance Multiple (3)	0.8x - 2.9x		1.2	x

Equity investments		129,328	Market Approach	Performance Multiple (3)	0.4x - 13.1x		3.5	x
				Volatility (5)	39.5% - 103.3%		57.8	%
				Risk-Free Interest Rate	3.9% - 4.2%		4.2	%
				Estimated Time to Exit (in years)	1.0 - 4.5		3.0

		31,067	Cost approximates fair value (6)	n/a	n/a	n/a

		22,571	Discounted Cash Flows	Hypothetical Market Yield	13.8% - 14.8%		14.1	%

Warrants		76,253	Market Approach	Performance Multiple (3)	0.1x - 22.9x		3.8	x
				Company Specific Adjustment (4)	n/a	n/a
				Volatility (5)	38.8% - 134.8%		64.4	%
				Risk-Free Interest Rate	3.9% - 4.2%		4.1	%
				Estimated Time to Exit (in years)	1.5 - 4.5		2.7

		4,269	Black Scholes	Volatility (5)	61.7% - 124.7%		99.4	%
				Discount for Lack of Marketability	n/a	n/a
				Risk-Free Interest Rate	4.2% - 4.4%		4.3	%
				Estimated Time to Exit (in years)	4.2 - 9.3		7.7

Total Level 3 Investments	$	2,700,813

(1)

The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The significant unobservable inputs used in the fair value measurement of the Company’s equity and warrant securities are performance multiples and portfolio company specific adjustment factors. Additional inputs used in the option pricing model include industry volatility, risk free interest rate and estimated time to exit. Significant increases (decreases) in the inputs in isolation would result in a significantly higher (lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing, merger or acquisition events near the measurement date.

(2)

Weighted averages are calculated based on the fair value of each investment.

(3)

Represents amounts used when the Company has determined that market participants would use such revenue and/or EBITDA multiples when pricing the investments.

(4)

Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.

(5)

Represents the range of industry volatility used by market participants when pricing the investment.

(6)

Includes debt investments originated within the past three months, for which cost approximates fair value, unless events have occurred during the period that would indicate a different valuation is warranted.

(7)

Represents investments where there is an observable transaction or pending event for the investment.

(8)

Represents debt investments where fair value is determined by establishing the total enterprise value of the portfolio company and allocating value to individual securities based on their respective liquidation preference within the capital structure.

The following table provides a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of December 31, 2025.


	Fair Value as of
	December 31, 2025			Valuation Techniques/	Unobservable		Weighted
Investment Type	(in thousands)			Methodologies	Inputs (1)	Range	Average (2)

Debt investments	$		1,682,044	Discounted Cash Flows	Hypothetical Market Yield	3.8% - 36.5%		14.2	%

			442,889	Cost approximates fair value (6)	n/a	n/a	n/a

			22,258	Transaction Precedent (7)	Transaction Price	n/a	n/a

			39,888	Scenario Analysis	Probability Weighting of Alternative Outcomes	10.0% - 85.0%	n/a

			12,885	Enterprise Value (8)	n/a	n/a	n/a

Equity investments			82,042	Market Approach	Revenue Multiple (3)	0.3x - 47.5x		4.1	x
					Volatility (5)	40.2% - 105.6%		53.4	%
					Risk-Free Interest Rate	3.5% - 3.6%		3.5	%
					Estimated Time to Exit (in years)	0.5 - 3.8		2.4

			26,300	Cost approximates fair value (6)	n/a	n/a	n/a

Warrants			74,533	Market Approach	Revenue Multiple (3)	0.1x - 47.5x		10.4	x
					Company Specific Adjustment (4)	n/a	n/a
					Volatility (5)	35.5% - 140.9%		59.9	%
					Risk-Free Interest Rate	3.5% - 3.9%		3.5	%
					Estimated Time to Exit (in years)	1.0 - 4.5		2.4

			3,393	Black Scholes	Volatility (5)	61.2% - 128.0%		90.4	%
					Discount for Lack of Marketability	n/a	n/a
					Risk-Free Interest Rate	3.7% - 4.2%		4.0	%
					Estimated Time to Exit (in years)	4.7 - 9.8		7.8

Total Level 3 Investments		$	2,386,232

(1)

The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The significant unobservable inputs used in the fair value measurement of the Company’s equity and warrant securities are revenue multiples and portfolio company specific adjustment factors. Additional inputs used in the option pricing model include industry volatility, risk free interest rate and estimated time to exit. Significant increases (decreases) in the inputs in isolation would result in a significantly higher (lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing, merger or acquisition events near the measurement date.

(2)

Weighted averages are calculated based on the fair value of each investment.

(3)

Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.

(4)

Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.

(5)

Represents the range of industry volatility used by market participants when pricing the investment.

(6)

(7)

Represents investments where there is an observable transaction or pending event for the investment.

(8)

The Company determined the value of its subordinated note of Senior Credit Corp 2022 LLC based on the total assets less the total liabilities senior to the subordinated notes held at Senior Credit Corp 2022 LLC in an amount not exceeding par value under the Enterprise Value technique.

Summary of Changes In Fair Value of Company's Level 3 Debt

The following table provides a summary of changes in the fair value of the Company’s Level 3 debt, including loans and equipment financings (collectively “Debt”), equity and warrant portfolio investments for the six months ended June 30, 2026 (in thousands):


	Type of Investment
	Debt			Equity			Warrants			Total
Fair Value as of December 31, 2025	$	2,199,964		$	108,342		$	77,926		$	2,386,232
Purchases, net of deferred fees		860,436			52,651			3,919			917,006
Non-cash conversions (1)		(25,912	)		25,919			(7	)		—
Proceeds from sales and paydowns		(599,010	)		(12,828	)		(1,544	)		(613,382	)
Accretion of OID, EOT, and PIK payments		29,308			259			—			29,567
Net realized gain/(loss)		(11,420	)		2,974			(2,248	)		(10,694	)
Net change in unrealized appreciation/(depreciation)		(16,041	)		5,649			2,476			(7,916	)
Fair Value as of June 30, 2026	$	2,437,325		$	182,966		$	80,522		$	2,700,813

Net change in unrealized appreciation/(depreciation) on Level 3 investments still held as of June 30, 2026	$	(26,097	)	$	4,486		$	662		$	(20,949	)

(1)

The non-cash conversion includes the conversion of debt positions and exercise of warrant positions to equity positions during the six months ended June 30, 2026.

* During the six months ended June 30, 2026, there were no transfers into or out of Level 3.

The following table provides a summary of changes in the fair value of the Company’s Level 3 debt, equity and warrant portfolio investments for the year ended December 31, 2025 (in thousands):


	Type of Investment
	Debt			Equity			Warrants			Total
Fair Value as of December 31, 2024	$	1,602,131		$	56,584		$	51,454		$	1,710,169
Purchases, net of deferred fees		1,396,567			36,056			20,581			1,453,204
Non-cash conversion (1)		(4,640	)		4,751			(111	)		—
Proceeds from sales and paydowns		(809,842	)		(4,000	)		(5,323	)		(819,165	)
Accretion of OID, EOT, and PIK payments		50,593			87			—			50,680
Net realized gain/(loss)		(62,262	)		(679	)		(1,173	)		(64,114	)
Net change in unrealized appreciation/(depreciation)		27,417			15,543			12,498			55,458
Fair Value as of December 31, 2025	$	2,199,964		$	108,342		$	77,926		$	2,386,232

Net change in unrealized appreciation/(depreciation) on Level 3 investments still held as of December 31, 2025	$	(9,319	)	$	13,717		$	12,442		$	16,840

(1)

The non-cash conversion includes the conversion of debt positions and exercise of warrant positions to equity positions during the year ended December 31, 2025.

* During the year ended December 31, 2025, there were no transfers into or out of Level 3.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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