SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments considered necessary for the fair presentation of the consolidated financial statements have been included. The Company is an investment company for the purposes of accounting and financial reporting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies (“ASC 946”). Interim financial statements are prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim periods presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2026. |
| Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It also requires management to exercise judgment in the process of applying the Company’s accounting policies. Actual results could differ from those estimates. |
| Consolidation | Consolidation As provided under ASC 946 and Regulation S-X, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, BDC CA Lender, LLC, VCSL Funding 1 LLC (“VCSL Funding 1”), VCSL Funding 2 LLC, VCP RRL ABS V, LLC, VCP RRL ABS V Investor, LLC (“ABS V Investor”) and VCSL Equity Company, LLC. All significant intercompany balances and transactions have been eliminated. |
| Investments | Investments Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized appreciation or depreciation previously recognized, and includes investments charged off during the period, net of recoveries. Net change in unrealized appreciation or depreciation on investments as presented in the accompanying Consolidated Statements of Operations reflects the net change in the fair value of investments, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized. See Note 4. Fair Value Measurements, for further information about fair value measurements. |
| Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits and highly liquid investments (e.g., money market funds, U.S. treasury notes) with original maturities of three months or less. Cash and cash equivalents are denominated in U.S. dollars and are carried at cost, which approximates fair value. The Company deposits its cash and cash equivalents with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.
Restricted cash and cash equivalents include amounts that are collected and are held by trustees who have been appointed as custodians of the assets securing certain of the Company’s financing transactions. Restricted cash and cash equivalents are held by the trustees for payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted cash also includes amounts for capital received in advance of the closing date. |
| Derivative instruments | Derivative instruments The Company follows the guidance in ASC Topic 815, Derivatives and Hedging, when accounting for derivative instruments. The Company designated interest rate swaps as the hedging instruments in qualifying fair value hedge accounting relationships, and as a result, the change in fair value of the hedging instruments and hedged items is recorded as interest expense and included in interest expense and credit facility fees in the accompanying Consolidated Statements of Operations. The fair value of the interest rate swaps is recorded on the Consolidated Statements of Assets and Liabilities as a component of “Net unrealized appreciation on derivatives” or “Net unrealized depreciation on derivatives” by counterparty on a net basis across all derivative instruments when a master netting agreement is in place, not taking into account collateral posted which is recorded separately, if applicable. Refer to Note 3. Derivatives and Note 6. Borrowings for more information regarding the interest rate swaps. |
| Revenue Recognition | Revenue Recognition Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective interest method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rates, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. As of June 30, 2026 and December 31, 2025, there were four and one loans, respectively, in the portfolio that earned PIK income. For the three and six months ended June 30, 2026, the Company earned $1,555 and $3,068 of PIK interest income, respectively. For the three and six months ended June 30, 2025, the Company earned $241 and $292 of PIK interest income, respectively. For the three and six months ended June 30, 2026, the Company capitalized $0 and $2,777 of PIK interest income, respectively. For the three and six months ended June 30, 2025, the Company capitalized $241 and $292 of PIK interest income, respectively. Loans are generally placed on non-accrual status when interest and/or principal payments become materially past due and there is reasonable doubt that principal or interest will be collected in full. When a loan is placed on non-accrual status, the recognition of interest income generally ceases, and accrued but unpaid interest is generally reversed. Accrued interest receivable is generally not carried as an asset once a loan is placed on non-accrual status unless collection is considered probable under applicable U.S. GAAP guidance. The Company remains contractually entitled to any interest that continues to accrue under the terms of the loan. Cash receipts received on non-accrual loans are recognized as interest income only when collection of the loan’s principal is reasonably assured. Otherwise, such cash receipts are applied as a reduction of the loan’s recorded investment. A non-accrual loan may be restored to accrual status when past-due principal and interest are paid or when there is no longer reasonable doubt that principal and interest will be collected in full and, in the Company’s judgment, the loan is likely to remain current. The Company may make exceptions to its non-accrual policy when a loan has sufficient collateral value or is in the process of collection. Accrued interest is written off when it becomes probable that the interest will not be collected, and the amount of uncollectible interest can be reasonably estimated. The Company did not have any loans on non-accrual status as of June 30, 2026 or December 31, 2025. Other income may include income such as consent, waiver, amendment, unused, underwriting, arranger and prepayment fees associated with the Company’s investment activities as well as any fees for managerial assistance services rendered by the Company to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. For the three and six months ended June 30, 2026, the Company earned $380 and $3,574, respectively, in other income, primarily from prepayment fees and unused fees. For the three and six months ended June 30, 2025, the Company earned $190 and $478, respectively, in other income, primarily from unused fees. Dividend income on equity securities in limited liability companies, partnerships, and other private entities, is recorded as dividend on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on preferred equity is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. To the extent a preferred equity investment contains PIK provisions, PIK dividends, computed at the contractual rates, are accrued, recorded as dividend income and added to the principal balance of the preferred equity. PIK dividends added to the principal balance are generally collected upon redemption of the equity. For the three and six months ended June 30, 2026, the Company earned $1,066 and $2,070, respectively, in dividend income. For the three and six months ended June 30, 2025, the Company earned $193 and $384, respectively, in dividend income.
Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. |
| Offering Costs | Offering Costs Offering costs associated with the Private Offering and in excess of the Expense Support Agreement (defined below in Note 5. Related Party Transactions) will be borne by the Company. These offering costs are capitalized as deferred offering costs on the Consolidated Statements of Assets and Liabilities and amortized over a twelve-month period. These costs consist primarily of legal fees and other fees incurred in connection with the Private Offering. Refer to Note 5. Related Party Transactions for further details on the Expense Support Agreement. For the three and six months ended June 30, 2026, the Company incurred $1 and $185 of offering costs, and amortized $138 and $312 of offering costs, respectively. For the three and six months ended June 30, 2025, the Company incurred $51 and $293 of offering costs, and amortized $86 and $107 of offering costs, respectively. |
| Deferred Financing Costs, Interest Expense, and Credit Facility Fees | Deferred Financing Costs, Interest Expense, and Credit Facility Fees Interest expense and unused commitment fees on the Company’s borrowings are recorded on an accrual basis. Unused commitment fees are included in interest expense and credit facility fees in the accompanying Consolidated Statements of Operations. Deferred financing costs represent capitalized fees and other direct incremental costs incurred in connection with the Company’s borrowings. These amounts are amortized on a straight-line basis over the expected term of the credit facility. The unamortized balance of such costs is included in prepaid expenses and other assets in the accompanying Consolidated Statements of Assets and Liabilities. The amortization of such costs is included in interest expense and credit facility fees in the accompanying Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, the Company had $8,345 and $5,694 of unamortized deferred financing costs, respectively. Amortization expense for deferred financing costs for the three and six months ended June 30, 2026, was $1,043 and $1,881, respectively. Amortization expense for deferred financing costs for the three and six months ended June 30, 2025, was $427 and $824, respectively. |
| Expenses | Expenses The Company is responsible for software costs, insurance costs and other expenses related to the Company’s operations. Such expenses, including expenses incurred and paid by the Adviser on behalf of the Company, are generally expected to be reimbursed by the Company. Costs incurred for annual subscriptions and insurance policies are generally recorded as a deferred charge and are amortized using the straight-line method over the term of the subscription or policy period. Deferred costs related to the Company’s directors and officers liability insurance are presented in prepaid expenses and other assets on the Company’s Consolidated Statements of Assets and Liabilities. |
| Allocation of Income, Expenses, Gains and Losses | Allocation of Income, Expenses, Gains and Losses Income, expenses (other than those attributable to a specific class of Common Stock), gains and losses are allocated to each class of Common Stock based on the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class of Common Stock are charged against the operations of that class. |
| Distributions | Distributions Distributions to stockholders are recorded on the record date. All distributions will be paid at the discretion of the Board and will depend on the Company’s earnings, financial condition, maintenance of the Company’s tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as the Board may deem relevant from time to time. Although the gross distribution per share is generally equivalent for each class of Common Stock, the net distribution for each class of Common Stock is reduced for any class-specific expenses, including distribution and shareholder servicing fees, if any. |
| Income Taxes | Income Taxes The Company has elected to be treated as a RIC under the Code. So long as the Company maintains its status as a RIC, it generally will not pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it timely distributes (or is deemed to distribute) at least annually to its stockholders as dividends. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements of the Company. Rather, any tax liability related to income earned and distributed by the Company would represent obligations of the Company’s investors. To qualify for and maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must also annually distribute dividends for U.S. federal income tax purposes to its stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of its investment company taxable income, determined without regard to any deduction for dividends paid. Depending on the level of taxable income earned in a tax year, the Company can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such taxable income, as required. To the extent that the Company determines that the estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, the Company accrues excise tax on estimated excess taxable income. The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as tax benefits or expenses in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax laws, regulations and interpretations thereof. |
| Functional Currency | Functional Currency The functional currency of the Company is the U.S. dollar, and all transactions were in U.S. dollars. |
| Earnings per Share of Common Stock | Earnings per Share of Common Stock The Company computes earnings per share of Common Stock in accordance with ASC 260, Earnings Per Share (“ASC 260”). Basic earnings per share of Common Stock is calculated by dividing the net increase (decrease) in net assets resulting from operations attributable to common stock by the weighted average number of shares of Common Stock outstanding. Diluted earnings per share of Common Stock reflects the assumed conversion of all dilutive securities. |
| Segment Reporting | Segment Reporting In accordance with ASC Topic 280 - Segment Reporting, the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales or transfers of assets. |
| Recent Accounting Updates | Recent Accounting Updates In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU No. 2023-09 requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation and additional details on income taxes paid. ASU No. 2023-09 is effective on a prospective basis, with the option for retrospective application. The Company adopted ASU 2023-09 effective December 31, 2025 and concluded that the application of this guidance did not have any material impact on its consolidated financial statements. |