v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company enters into derivative financial instruments in the normal course of business to achieve certain risk management objectives, including managing its interest rate and foreign currency risk exposures.
The net fair value of foreign currency and interest rate derivative contracts are included within Derivative assets at fair value or Derivative liabilities at fair value in the Condensed Consolidated Statements of Assets and Liabilities.
The following tables present the aggregate notional amount and fair value hierarchy of the Company’s derivative financial instruments as of June 30, 2026 and December 31, 2025:
June 30, 2026
Level 1Level 2Level 3Total Fair ValueNotional
Derivative Assets
Foreign currency forward contracts$— $583 $— $583 $166,011 
Interest rate swaps— 2,462 — 2,462 400,000 
Total Derivative assets at fair value$— $3,045 $— $3,045 $566,011 
Derivative Liabilities
Foreign currency forward contracts$— $(102)$— $(102)$62,208 
Interest rate swaps— (28,035)— (28,035)2,750,000 
Total Derivative liabilities at fair value$— $(28,137)$— $(28,137)$2,812,208 
Cash collateral posted$23,389 
December 31, 2025
Level 1Level 2Level 3Total Fair ValueNotional
Derivative Assets
Foreign currency forward contracts$— $137 $— $137 $78,873 
Interest rate swaps— 22,207 — 22,207 1,600,000 
Total Derivative assets at fair value$— $22,344 $— $22,344 $1,678,873 
Derivative Liabilities
Foreign currency forward contracts$— $(822)$— $(822)$143,979 
Interest rate swaps— (1,889)— (1,889)500,000 
Total Derivative liabilities at fair value$— $(2,711)$— $(2,711)$643,979 
Cash collateral posted$11,286 
In the tables above:
•The notional amount represents the absolute value amount of all outstanding derivative contracts.
•All foreign currency derivatives are not designated in hedge relationships.
•All interest rate swaps are designated in fair value hedge relationships.
•The fair value has been presented prior to the application of counterparty netting or cash collateral netting.
The table below presents the impact to the Condensed Consolidated Statements of Operations from derivative assets and derivative liabilities not designated in a qualifying hedge accounting relationship for the three and six months ended June 30, 2026 and June 30, 2025, respectively. The net change in unrealized gains and losses on the derivative assets and derivative liabilities not designated in a qualifying hedge accounting relationship are included within Net change in unrealized appreciation (depreciation) on derivative instruments in the Condensed Consolidated Statements of Operations. The net realized gains and losses on the derivative assets and derivative liabilities not designated in a qualifying hedge accounting relationship are included within Net realized gain (loss) on derivative instruments in the Condensed Consolidated Statements of Operations.
For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
Unrealized appreciation (depreciation)
Foreign currency forward contracts$(1,777)$(3,126)$1,166 $(5,047)
Net change in unrealized appreciation (depreciation)$(1,777)$(3,126)$1,166 $(5,047)
Realized gain (loss)
Foreign currency forward contracts$3,554 $(7,673)$5,396 $(9,727)
Net realized gain (loss)$3,554 $(7,673)$5,396 $(9,727)
Offsetting of Derivative Instruments
The Company has elected to offset cash collateral posted to or received from its counterparty against the net fair value of derivative instruments with that counterparty. The following tables present the offsetting of the Company’s derivative financial instruments as of June 30, 2026 and December 31, 2025:
As of June 30, 2026
CounterpartyDerivative Assets Subject to Master Netting AgreementDerivatives Available for OffsetCash Collateral OffsetNet Amount Derivative Asset
Cash Collateral Received (1)
Cash Collateral Received Not Offset (2)
SMBC Capital Markets, Inc.$2,462 $— $— $2,462 $— $— 
Wells Fargo Bank, N.A.583 (583)— — — — 
$3,045 $(583)$— $2,462 $— $— 
CounterpartyDerivative Liabilities Subject to Master Netting AgreementDerivatives Available for OffsetCash Collateral OffsetNet Amount Derivative Liabilities
Cash Collateral Posted (1)
Cash Collateral Posted Not Offset (2)
SMBC Capital Markets, Inc.$— $— $— $— $1,837 $1,837 
Wells Fargo Bank, N.A.(28,137)583 21,552 (6,002)21,552 — 
$(28,137)$583 $21,552 $(6,002)$23,389 $1,837 
As of December 31, 2025
CounterpartyDerivative Assets Subject to Master Netting AgreementDerivatives Available for OffsetCash Collateral OffsetNet Amount Derivative Asset
Cash Collateral Received (1)
Cash Collateral Received Not Offset (2)
SMBC Capital Markets, Inc.$8,251 $— $— $8,251 $— $— 
Wells Fargo Bank, N.A.14,093 (2,711)— 11,382 — — 
$22,344 $(2,711)$— $19,633 $— $— 
CounterpartyDerivative Liabilities Subject to Master Netting AgreementDerivatives Available for OffsetCash Collateral OffsetNet Amount Derivative Liabilities
Cash Collateral Posted (1)
Cash Collateral Posted Not Offset (2)
SMBC Capital Markets, Inc.$— $— $— $— $1,805 $1,805 
Wells Fargo Bank, N.A.(2,711)2,711 — — 9,481 9,481 
$(2,711)$2,711 $— $— $11,286 $11,286 
(1)No non-cash collateral has been posted to or received from counterparties related to derivative assets or derivative liabilities.
(2)Cash collateral posted to or received from counterparties has been offset against the derivative position with those counterparties to the extent an amount is available to be offset. Cash collateral posted to or received from counterparties in excess of the net derivative positions and not offset is recorded in the Condensed Consolidated Statements of Assets and Liabilities as Receivable from Broker or Payable to Broker, respectively.
Hedging
The Company designated certain interest rate swaps as the hedging instrument in a qualifying fair value hedge accounting relationship.
The table below presents the impact to the Condensed Consolidated Statements of Operations from derivative assets and liabilities designated in a qualifying hedge accounting relationship for the three and six months ended June 30, 2026 and June 30, 2025, respectively.
For derivative instruments designated in qualifying hedge relationships, the change in fair value of the hedging instrument and hedged item is recorded in Interest expense and recognized as components of Interest expense in the Condensed Consolidated Statements of Operations.
For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
Interest rate swaps$(27,338)$10,369 $(46,177)$25,778 
Hedged items26,138 (10,373)45,636 (24,658)
The table below presents the carrying value of unsecured borrowings as of June 30, 2026 and December 31, 2025 that are designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values:
June 30, 2026December 31, 2025
DescriptionCarrying ValueCumulative Hedging AdjustmentsCarrying ValueCumulative Hedging Adjustments
Unsecured notes$3,080,780 $(26,227)$2,091,290 $19,408