FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENTS

Schedule of investments measured at fair value

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of June 30, 2026:


		Level 1			Level 2			Level 3			Total
First lien secured loans		$	—		$	—		$	413,701		$	413,701
Second lien secured loans			—			—			4,977			4,977
Unsecured loans			—			—			1,345			1,345
Subordinated Note to STRS JV			—			—			86,256			86,256
Equity (excluding STRS JV)			—			—			40,562			40,562
Equity in STRS JV⁽¹⁾			—			—			—			22,361
Total investments		$	—		$	—		$	546,841		$	569,202

(1)

The Company’s equity investment in STRS JV is measured using the net asset value per share as a practical expedient for fair value, and thus has not been classified 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 table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2025:


		Level 1			Level 2			Level 3			Total
First lien secured loans		$	—		$	—		$	429,573		$	429,573
Second lien secured loans			—			—			4,839			4,839
Unsecured loans			—			—			1,286			1,286
Subordinated Note to STRS JV			—			—			84,416			84,416
Equity (excluding STRS JV)			—			—			36,933			36,933
Equity in STRS JV⁽¹⁾			—			—			—			21,602
Total investments		$	—		$	—		$	557,047		$	578,649

(1)

The Company’s equity investment in STRS JV is measured using the net asset value per share as a practical expedient for fair value, and thus has not been classified 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.

Schedule of changes in investments measured at fair value using Level 3 inputs

The following table presents the changes in investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2026:


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Three months ended June 30, 2026		Loans			Loans			Loans			JV			Equity			Investments
Fair value, beginning of period		$	394,911		$	4,944		$	1,315		$	84,416		$	36,201		$	521,787
Funding of investments			30,079			—			—			1,840			130			32,049
Non-cash interest income			468			29			30			—			—			527
Accretion of discount			424			5			1			—			—			430
Proceeds from paydowns and sales			(13,000)			—			—			—			—			(13,000)
Realized gains (losses)			1			—			—			—			—			1
Net unrealized appreciation (depreciation)			818			(1)			(1)			—			4,231			5,047
Fair value, end of period		$	413,701		$	4,977		$	1,345		$	86,256		$	40,562		$	546,841
Change in unrealized appreciation (depreciation) on investments still held as of June 30, 2026		$	493		$	—		$	(2)		$	—		$	4,237		$	4,728


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Six months ended June 30, 2026		Loans			Loans			Loans			JV			Equity			Investments
Fair value, beginning of period		$	429,573		$	4,839		$	1,286		$	84,416		$	36,933		$	557,047
Funding of investments			58,188			—			—			1,840			144			60,172
Non-cash interest income			1,031			56			59			—			—			1,146
Accretion of discount			1,160			11			2			—			—			1,173
Proceeds from paydowns and sales			(71,894)			—			—			—			—			(71,894)
Realized gains (losses)			(4,335)			—			—			—			—			(4,335)
Net unrealized appreciation (depreciation)			(22)			71			(2)			—			3,485			3,532
Fair value, end of period		$	413,701		$	4,977		$	1,345		$	86,256		$	40,562		$	546,841
Change in unrealized appreciation (depreciation) on investments still held as of June 30, 2026		$	(2,947)		$	72		$	(3)		$	—		$	3,490		$	612

The following table presents the changes in investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2025:


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Three months ended June 30, 2025		Loans			Loans			Loans			JV			Equity			Investments
Fair value, beginning of period		$	516,563		$	3,442		$	1,202		$	84,416		$	23,077		$	628,700
Funding of investments			43,247			—			—			—			—			43,247
Non-cash interest income			589			37			27			—			—			653
Accretion of discount			980			1			1			—			—			982
Proceeds from paydowns and sales			(62,967)			(96)			—			—			—			(63,063)
Conversions			(7,109)			—			—			—			7,109			—
Realized gains (losses)			(21,276)			—			—			—			—			(21,276)
Net unrealized appreciation (depreciation)			18,052			—			—			—			272			18,324
Fair value, end of period		$	488,079		$	3,384		$	1,230		$	84,416		$	30,458		$	607,567
Change in unrealized appreciation (depreciation) on investments still held as of June 30, 2025		$	(2,582)		$	—		$	(1)		$	—		$	266		$	(2,317)


		First Lien			Second Lien						Subordinated
		Secured			Secured			Unsecured			Notes to STRS						Total
Six months ended June 30, 2025		Loans			Loans			Notes			JV			Equity			Investments
Fair value, beginning of period		$	502,693		$	8,342		$	1,175		$	84,416		$	22,846		$	619,472
Funding of investments			90,469			—			—			—			—			90,469
Non-cash interest income			1,153			137			54			—			—			1,344
Accretion of discount			1,872			48			2			—			—			1,922
Proceeds from paydowns and sales			(95,440)			(5,096)			—			—			—			(100,536)
Conversions			(7,109)			—			—			—			7,109			—
Realized gains (losses)			(21,671)			—			—			—			—			(21,671)
Net unrealized appreciation (depreciation)			16,112			(47)			(1)			—			503			16,567
Fair value, end of period		$	488,079		$	3,384		$	1,230		$	84,416		$	30,458		$	607,567
Change in unrealized appreciation (depreciation) on investments still held as of June 30, 2025		$	(3,992)		$	—		$	(2)		$	—		$	497		$	(3,497)

Schedule of Quantitative information about Level 3 fair value measurements


			Fair Value as of		Valuation		Unobservable		Range
Investment Type			June 30, 2026		Techniques		Inputs		(Weighted Average)⁽¹⁾
First lien secured loans		$	375,602		Discounted cash flow analysis		Discount Rate		2.8% - 15.1% (10.4%)
			23,003		Recent transaction		Transaction Price		98.0 - 99.3 (98.4)
			15,096		Enterprise value analysis		EBITDA Multiple		5.5 - 7.0 (6.5)
Second lien secured loans			4,977		Discounted cash flow analysis		Discount rate		9.3% - 15.6% (11.3%)
Unsecured loans			1,345		Discounted cash flow analysis		Discount rate		11.9% - 11.9% (11.9%)
Subordinated Notes to STRS JV			86,256		Enterprise value analysis		n/a		n/a
Common equity			21,708		Enterprise value analysis		EBITDA multiple		6.0 - 12.0 (8.4)
			9,149		Enterprise value analysis		Revenue Multiple		2.4 - 2.4 (2.4)
			95		Recent transaction		Transaction Price		3,529.8 - 3,529.8 (3,529.8)
Preferred equity			9,230		Enterprise value analysis		EBITDA multiple		6.3 - 12.0 (7.1)
Warrant			204		Option Pricing Model		Volatility		33.0% - 33.0% (33.0%)
			176		Enterprise value analysis		EBITDA Multiple		6.3 - 6.3 (6.3)
Total Level 3 Investments		$	546,841

(1)	Unobservable inputs were weighted by the relative fair value of the investments.


			Fair Value as of		Valuation		Unobservable		Range
Investment Type			December 31, 2025		Techniques		Inputs		(Weighted Average)⁽¹⁾
First lien secured loans		$	358,708		Discounted cash flow analysis		Discount Rate		7.9% - 33.5% (11.2%)
			51,846		Recent transaction		Transaction Price		96.8 - 99.6 (98.3)
			17,290		Enterprise value analysis		EBITDA Multiple		5.5 - 8.2 (7.4)
			1,729		Enterprise value analysis		Revenue Multiple		0.9 - 0.9 (0.9)
Second lien secured loans			3,404		Discounted cash flow analysis		Discount rate		9.5% - 9.5% (9.5%)
			1,435		Recent transaction		Transaction Price		91.4 - 91.4 (91.4)
Unsecured loans			1,286		Discounted cash flow analysis		Discount rate		13.1% - 13.3% (13.2%)
Subordinated Notes to STRS JV			84,416		Enterprise value analysis		n/a		n/a
Common equity			21,572		Enterprise value analysis		EBITDA multiple		6.5 - 12.9 (8.6)
			9,144		Enterprise value analysis		Revenue Multiple		0.9 - 2.3 (2.3)
Preferred equity			5,815		Enterprise value analysis		EBITDA multiple		6.5 - 10.0 (6.9)
Warrant			197		Option Pricing Model		Volatility		27.0% - 27.0% (27.0%)
			205		Enterprise value analysis		EBITDA Multiple		7.4 - 7.4 (7.4)
Total Level 3 Investments		$	557,047

(1)	Unobservable inputs were weighted by the relative fair value of the investments.

Schedule of principal amount and fair value of the Company's borrowings


				As of June 30, 2026						As of December 31, 2025
		Fair
		Value Level		Principal Amount Outstanding			Fair Value			Principal Amount Outstanding			Fair Value
2025 CLO Notes		3		$	174,000		$	174,000		$	174,000		$	174,000
Credit Facility		3			—			—			—			—
5.375% 2026 Notes		3			10,000			9,954			10,000			9,948
4.000% 2026 Notes		3			75,000			74,173			75,000			73,649
5.625% 2027 Notes		3			10,000			9,885			10,000			9,941
4.250% 2028 Notes		3			25,000			23,760			25,000			23,865
7.875% 2028 Notes		3			34,500			34,500			34,500			34,500
				$	328,500		$	326,272		$	328,500		$	325,903

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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