v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair Value Disclosures
The following tables present fair value measurements of investments, by major class, and cash equivalents as of June 30, 2026 and December 31, 2025, according to the fair value hierarchy:
As of June 30, 2026Level 1Level 2Level 3
Measured at NAV (2)
Total
Assets:
First-Lien Debt$— $10,423 $1,709,082 $— $1,719,505 
Subordinated Debt (1)
— 6,202 133,405 — 139,607 
Equity Investments— — 42,830 16,975 59,805 
Cash Equivalents40,759 — — — 40,759 
Total investments and cash equivalents$40,759 $16,625 $1,885,317 $16,975 $1,959,676 
Derivative asset — 8,534 — — 8,534 
Total$40,759 $25,159 $1,885,317 $16,975 $1,968,210 
______________
(1) Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $61,041, mezzanine debt of $77,229 and $1,337 of structured debt.
(2) Certain investments are measured at fair value using NAV as a practical expedient and 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 statements of assets and liabilities.


As of December 31, 2025
Level 1Level 2Level 3
Measured at NAV (2)
Total
Assets:
First-Lien Debt
$— $8,115 $1,748,505 $— $1,756,620 
Subordinated Debt (1)
— 6,176 155,198 — 161,374 
Equity Investments— — 32,179 12,276 44,455 
Cash Equivalents53,927 — — — 53,927 
Total investments and cash equivalents
$53,927 $14,291 $1,935,882 12,276 $2,016,376 
Derivative asset— 14,965 — — 14,965 
Total$53,927 $29,256 $1,935,882 $12,276 $2,031,341 
_______________
(1) Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $74,262, mezzanine debt of $84,633 and $2,479 of structured debt.
(2) Certain investments are measured at fair value using NAV as a practical expedient and 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 statements of assets and liabilities.
The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the following periods:
As of and for the Three Months Ended June 30, 2026
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of March 31, 2026
$1,766,514 $141,910 $41,372 $1,949,796 
Purchase of investments and other adjustments to cost (1)
18,129 1,828 2,798 22,755 
Proceeds from principal repayments and sales of investments (1)
(56,131)(11,318)— (67,449)
Payment-in-kind interest755 1,519 — 2,274 
Amortization of premium/accretion of discount, net677 82 — 759 
Net realized gain (loss) on investments405 (11,665)— (11,260)
Net change in unrealized appreciation (depreciation) on investments(16,134)11,049 (1,340)(6,425)
Transfers out of Level 3 (2)
(5,133)— — (5,133)
Transfers to Level 3 (2)
— — — — 
Balance as of June 30, 2026
$1,709,082 $133,405 $42,830 $1,885,317 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2026
$(16,081)$10,962 $(1,340)$(6,459)

As of and for the Six Months Ended June 30, 2026
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of December 31, 2025
$1,748,505 $155,198 $32,179 $1,935,882 
Purchase of investments and other adjustments to cost (1)
89,867 5,088 12,158 107,113 
Proceeds from principal repayments and sales of investments (1)
(105,648)(26,455)(112)(132,215)
Payment-in-kind interest1,688 3,708 — 5,396 
Amortization of premium/accretion of discount, net1,618 179 — 1,797 
Net realized gain (loss) on investments(3,117)(11,465)34 (14,548)
Net change in unrealized appreciation (depreciation) on investments(21,341)7,152 (1,429)(15,618)
Transfers out of Level 3 (2)
(2,490)— — (2,490)
Transfers to Level 3 (2)
— — — — 
Balance as of June 30, 2026
$1,709,082 $133,405 $42,830 $1,885,317 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2026
$(25,267)$5,819 $(1,429)$(20,877)
_______________
(1) Includes reorganizations and restructuring of investments.
(2) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2026, transfers into or out of Level 3 were a result of changes in the observability of significant inputs for certain portfolio companies.
As of and for the Three Months Ended June 30, 2025
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of March 31, 2025$1,853,071 $153,517 $35,117 $2,041,705 
Purchase of investments and other adjustments to cost (1)
78,636 2,392 2,868 83,896 
Proceeds from principal repayments and sales of investments (1)
(137,788)(4,223)— (142,011)
Payment-in-kind interest436 1,828 — 2,264 
Amortization of premium/accretion of discount, net900 123 — 1,023 
Net realized gain (loss) on investments(10,821)50 — (10,771)
Net change in unrealized appreciation (depreciation) on investments5,744 (2,375)108 3,477 
Transfers out of Level 3 (2)
(2,538)— (2,564)(5,102)
Transfers to Level 3 (2)
3,082 8,694 — 11,776 
Balance as of June 30, 2025
$1,790,722 $160,006 $35,529 $1,986,257 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2025$(4,449)$(2,321)$108 $(6,662)

As of and for the Six Months Ended June 30, 2025
First-Lien DebtSubordinated DebtEquity InvestmentsTotal
Balance as of December 31, 2024
$1,806,850 $150,779 $36,598 $1,994,227 
Purchase of investments and other adjustments to cost (1)
223,580 9,451 2,884 235,915 
Proceeds from principal repayments and sales of investments (1)
(242,424)(9,463)(252)(252,139)
Payment-in-kind interest861 3,768 — 4,629 
Amortization of premium/accretion of discount, net2,294 306 — 2,600 
Net realized gain (loss) on investments(9,938)105 149 (9,684)
Net change in unrealized appreciation (depreciation) on investments(4,291)(3,298)(2,197)(9,786)
Transfers out of Level 3 (2)
— — (1,653)(1,653)
Transfers to Level 3 (2)
13,790 8,358 — 22,148 
Balance as of June 30, 2025
$1,790,722 $160,006 $35,529 $1,986,257 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2025$(6,959)$(3,260)$(2,197)$(12,416)
_______________
(1) Includes reorganizations and restructuring of investments.
(2) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2025, transfers into or out of Level 3 were a result of changes in the observability of significant inputs for certain portfolio companies.
Significant Unobservable Inputs
ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of June 30, 2026 and December 31, 2025 were as follows:
Investment Type
Fair Value at June 30, 2026
Valuation TechniquesUnobservable InputsRangesWeighted Average
First-Lien Debt$1,628,254 Yield MethodMarket Yield Discount Rates7.69%24.50%9.96%
First-Lien Debt34,498 Market ApproachEBITDA Multiple4.50x11.50x7.73x
First-Lien Debt7,376 Market ApproachRevenue Multiple0.30x0.65x0.50x
Subordinated Debt118,101 Yield MethodMarket Yield Discount Rates10.37%20.57%14.87%
Subordinated Debt7,775 Market ApproachEBITDA Multiple10.00x10.00x10.00x
Subordinated Debt2,436 Black-ScholesEBITDA Multiple0.90x10.35x6.97x
Subordinated Debt4,113 Yield MethodMarket Yield Discount Rates22.50%22.50%22.50%
Market ApproachEBITDA Multiple10.35x10.35x10.35x
Equity1,508 Yield MethodMarket Yield Discount Rates8.90%16.41%15.49%
Equity38,472 Market ApproachEBITDA Multiple4.50x19.25x11.84x
Equity141 Black-ScholesEBITDA Multiple6.01x12.50x6.01x
Total$1,842,674 
First-Lien Debt, Subordinated Debt, and Equity investments in the amount of $38,954, $980, and $2,709, respectively, at June 30, 2026 have been excluded from the table above as these investments are valued using a recent transaction price.
Investment Type
Fair Value at December 31, 2025
Valuation TechniquesUnobservable InputsRangesWeighted Average
First-Lien Debt$1,679,774 Yield MethodMarket Yield Discount Rates7.45%18.14%9.24%
First-Lien Debt28,547 Market ApproachEBITDA Multiple6.00x10.93x7.93x
First-Lien Debt6,483 Market ApproachRevenue Multiple0.33x1.50x0.81x
Subordinated Debt139,506 Yield MethodMarket Yield Discount Rates10.60%22.50%15.08%
Subordinated Debt10,357 Market ApproachEBITDA Multiple10.40x10.40x10.40x
Subordinated Debt2,920 Black-ScholesEBITDA Multiple1.05x10.00x6.21x
Equity1,487 Yield MethodMarket Yield Discount Rates8.63%16.41%15.28%
Equity29,724 Market ApproachEBITDA Multiple6.00x19.00x12.65x
Total$1,898,798 
First-Lien Debt, Subordinated Debt, and Equity investments in the amount of $33,701, $2,415, and $968, respectively, at December 31, 2025 have been excluded from the table above as these investments are valued using a recent transaction price.
Debt investments are generally valued using the yield method. Under the yield method, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected remaining life, portfolio company performance since the initial investment date, and other terms and risks associated with the investment. Among other factors, key risk determinants include the amount of leverage used by the portfolio company relative to its total enterprise value, current and projected financial performance of the portfolio company, and the rights and remedies of the Company’s investment within the portfolio company’s capital structure. Debt investments also may be valued using a market approach. The market approach utilizes market value (EBITDA) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. Certain factors are considered when selecting the appropriate companies, including the type of organization, similarity to the business being valued, relevant risk factors, relative size, profitability and growth expectations. Adjustments may be applied to comparable company multiples to reflect differences in size, liquidity, growth prospects, or other company-specific factors. A recent transaction, if applicable, also may be considered in the valuation if the transaction price is believed to be representative of fair value.
Equity investments are generally valued using a market approach, which utilizes market value (EBITDA or revenue) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The selected multiple is used to estimate the enterprise value of the underlying portfolio company, from which the fair value of the Company's investment is derived after giving consideration to the portfolio company's capital structure, including the seniority and terms of all outstanding debt and equity securities.
The significant unobservable input used under the yield method is a discount rate based on comparable market yields for similar investments. Significant increases or decreases in discount rates in isolation would result in a significantly lower or higher fair value measurement, respectively. The significant unobservable input used in the market approach is the performance multiple, which may include a revenue multiple, EBITDA multiple, or forward-looking metrics. The multiple is used to estimate the enterprise value of the underlying portfolio company. An increase or decrease in the multiple would result in an increase or decrease, respectively, in the fair value.
Alternative valuation methodologies may be used as deemed appropriate, and may include, but are not limited to, a market approach, income approach, or liquidation (recovery) approach. The selection of an alternative methodology may reflect investment-specific circumstances or market conditions that warrant consideration of additional valuation approaches.
Weighted average inputs are calculated based on the relative fair value of the investments within each investment category.
Financial Instruments disclosed but not carried at fair value
The carrying value and fair value of the Company’s debt obligations were as follows:
June 30, 2026
December 31, 2025
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Revolving Credit Facility$46,500 $46,500 $66,000 $66,000 
2025 Debt /CLO-I
320,767 319,687 321,083 321,211 
2026 Debt/ CLO-II
213,000 212,392 213,286 214,003 
2024 Debt/ CLO-III
213,250 213,250 213,750 214,322 
2030 Notes303,407300,369 309,915 308,049 
Total$1,096,924 $1,092,198 $1,124,034 $1,123,585 
______________
(1) Carrying value on the consolidated statements of assets and liabilities are net of deferred financing, issuance costs, and unamortized discount. Carrying value of the 2030 Notes reflects the cumulative hedging adjustments.
The carrying value of the Company's credit facilities approximates their fair value. These fair value measurements were based on significant inputs that are not observable and thus represent Level 3 measurements.
The fair value of the debt securitizations and 2030 Notes were based on market quotations(s) received from broker/dealer(s). These fair value measurements were based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly, and thus represent Level 2 measurements.