| Schedule of Portfolio Investments by Level in the Fair Value Hierarchy |
The following tables present the fair value hierarchy of investments:
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June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First Lien Debt |
|
$ |
— |
|
|
$ |
5,800 |
|
|
$ |
2,162,431 |
|
|
$ |
2,168,231 |
|
|
$ |
— |
|
|
$ |
33,242 |
|
|
$ |
2,108,149 |
|
|
$ |
2,141,391 |
|
Second Lien Debt |
|
|
— |
|
|
|
3,329 |
|
|
|
7,446 |
|
|
|
10,775 |
|
|
|
— |
|
|
|
4,066 |
|
|
|
13,335 |
|
|
|
17,401 |
|
Other Debt Investments |
|
|
— |
|
|
|
— |
|
|
|
5,059 |
|
|
|
5,059 |
|
|
|
— |
|
|
|
— |
|
|
|
8,029 |
|
|
|
8,029 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
32,711 |
|
|
|
32,711 |
|
|
|
— |
|
|
|
— |
|
|
|
19,127 |
|
|
|
19,127 |
|
Total |
|
$ |
— |
|
|
$ |
9,129 |
|
|
$ |
2,207,647 |
|
|
$ |
2,216,776 |
|
|
$ |
— |
|
|
$ |
37,308 |
|
|
$ |
2,148,640 |
|
|
$ |
2,185,948 |
|
Cash equivalents |
|
$ |
33,012 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33,012 |
|
|
$ |
47,217 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47,217 |
|
Unaffiliated money market fund |
|
$ |
13,900 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
13,900 |
|
|
$ |
23,676 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23,676 |
|
|
| Changes in Level III Portfolio Investments |
The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the three months ended June 30, 2026:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Debt |
|
|
Second Lien
Debt |
|
|
Other Debt
Investments |
|
|
Equity |
|
|
Total
Investments |
|
Fair value, beginning of period |
|
$ |
2,083,653 |
|
|
$ |
7,501 |
|
|
$ |
5,610 |
|
|
$ |
23,129 |
|
|
$ |
2,119,893 |
|
Purchases of investments(1) |
|
|
133,467 |
|
|
|
— |
|
|
|
— |
|
|
|
9,405 |
|
|
|
142,872 |
|
Proceeds from principal repayments and sales of investments(2) |
|
|
(70,383 |
) |
|
|
— |
|
|
|
— |
|
|
|
(170 |
) |
|
|
(70,553 |
) |
Accretion of discount/amortization of premium |
|
|
2,059 |
|
|
|
3 |
|
|
|
0 |
|
|
|
— |
|
|
|
2,062 |
|
Payment-in-kind |
|
|
2,314 |
|
|
|
111 |
|
|
|
207 |
|
|
|
1,302 |
|
|
|
3,934 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(1,483 |
) |
|
|
(169 |
) |
|
|
(758 |
) |
|
|
(958 |
) |
|
|
(3,368 |
) |
Net realized gains (losses) |
|
|
(11,358 |
) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(11,355 |
) |
Transfers into/out of Level 3(3) |
|
|
24,163 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,163 |
|
Fair value, end of period |
|
$ |
2,162,432 |
|
|
$ |
7,446 |
|
|
$ |
5,059 |
|
|
$ |
32,711 |
|
|
$ |
2,207,647 |
|
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2026 |
|
$ |
(1,469 |
) |
|
$ |
(169 |
) |
|
$ |
(758 |
) |
|
$ |
(958 |
) |
|
$ |
(3,354 |
) |
(1)Purchases may include investments received in corporate actions and restructurings. (2)Sales may include investments received in corporate actions and restructurings. (3)Transfer of portfolio investments within the three-level hierarchy is recorded during the period of such reclassification occurrence at the fair value as of the beginning of the respective period. Generally, reclassifications are primarily due to increase/decrease of price transparency. The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the six months ended June 30, 2026:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Debt |
|
|
Second Lien
Debt |
|
|
Other Debt
Investments |
|
|
Equity |
|
|
Total
Investments |
|
Fair value, beginning of period |
|
$ |
2,108,149 |
|
|
$ |
13,335 |
|
|
$ |
8,029 |
|
|
$ |
19,127 |
|
|
$ |
2,148,640 |
|
Purchases of investments(1) |
|
|
242,811 |
|
|
|
— |
|
|
|
— |
|
|
|
15,705 |
|
|
|
258,516 |
|
Proceeds from principal repayments and sales of investments(2) |
|
|
(189,000 |
) |
|
|
(5,970 |
) |
|
|
(1,789 |
) |
|
|
(170 |
) |
|
|
(196,930 |
) |
Accretion of discount/amortization of premium |
|
|
3,971 |
|
|
|
6 |
|
|
|
22 |
|
|
|
— |
|
|
|
3,999 |
|
Payment-in-kind |
|
|
4,022 |
|
|
|
267 |
|
|
|
424 |
|
|
|
1,534 |
|
|
|
6,247 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(4,292 |
) |
|
|
(192 |
) |
|
|
(1,627 |
) |
|
|
(3,488 |
) |
|
|
(9,599 |
) |
Net realized gains (losses) |
|
|
(28,141 |
) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(28,138 |
) |
Transfers into/out of Level 3(3) |
|
|
24,912 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,912 |
|
Fair value, end of period |
|
$ |
2,162,432 |
|
|
$ |
7,446 |
|
|
$ |
5,059 |
|
|
$ |
32,711 |
|
|
$ |
2,207,647 |
|
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2026 |
|
$ |
(3,171 |
) |
|
$ |
(192 |
) |
|
$ |
(1,606 |
) |
|
$ |
(3,488 |
) |
|
$ |
(8,457 |
) |
(1)Purchases may include investments received in corporate actions and restructurings. (2)Sales may include investments received in corporate actions and restructurings. (3)Transfer of portfolio investments within the three-level hierarchy is recorded during the period of such reclassification occurrence at the fair value as of the beginning of the respective period. Generally, reclassifications are primarily due to increase/decrease of price transparency. The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the three months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Debt |
|
|
Second Lien
Debt |
|
|
Other Debt
Investments |
|
|
Equity |
|
|
Total
Investments |
|
Fair value, beginning of period |
|
$ |
1,956,062 |
|
|
$ |
12,669 |
|
|
$ |
7,487 |
|
|
$ |
19,905 |
|
|
$ |
1,996,123 |
|
Purchases of investments(1) |
|
|
77,312 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
77,312 |
|
Proceeds from principal repayments and sales of investments(2) |
|
|
(50,170 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50,170 |
) |
Accretion of discount/amortization of premium |
|
|
1,791 |
|
|
|
(2 |
) |
|
|
4 |
|
|
|
— |
|
|
|
1,793 |
|
Payment-in-kind |
|
|
1,967 |
|
|
|
178 |
|
|
|
201 |
|
|
|
318 |
|
|
|
2,664 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(6,832 |
) |
|
|
87 |
|
|
|
(37 |
) |
|
|
(1,168 |
) |
|
|
(7,950 |
) |
Net realized gains (losses) |
|
|
37 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37 |
|
Transfers into/out of Level 3(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value, end of period |
|
$ |
1,980,167 |
|
|
$ |
12,932 |
|
|
$ |
7,655 |
|
|
$ |
19,055 |
|
|
$ |
2,019,809 |
|
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2025 |
|
$ |
(6,858 |
) |
|
$ |
87 |
|
|
$ |
(37 |
) |
|
$ |
(1,168 |
) |
|
$ |
(7,976 |
) |
(1)Purchases may include investments received in corporate actions and restructurings. (2)Sales may include investments received in corporate actions and restructurings. (3)Transfer of portfolio investments within the three-level hierarchy is recorded during the period of such reclassification occurrence at the fair value as of the beginning of the respective period. Generally, reclassifications are primarily due to increase/decrease of price transparency. The following table presents changes in the fair value of the investments for which Level 3 inputs were used to determine the fair value for the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Debt |
|
|
Second Lien
Debt |
|
|
Other
Securities |
|
|
Equity |
|
|
Total
Investments |
|
Fair value, beginning of period |
|
$ |
1,934,010 |
|
|
$ |
4,065 |
|
|
$ |
4,527 |
|
|
$ |
19,829 |
|
|
$ |
1,962,431 |
|
Purchases of investments(1) |
|
|
153,732 |
|
|
|
8,642 |
|
|
|
2,881 |
|
|
|
2,657 |
|
|
|
167,912 |
|
Proceeds from principal repayments and sales of investments(2) |
|
|
(130,287 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,102 |
) |
|
|
(132,389 |
) |
Accretion of discount/amortization of premium |
|
|
3,545 |
|
|
|
1 |
|
|
|
7 |
|
|
|
— |
|
|
|
3,553 |
|
Payment-in-kind |
|
|
5,680 |
|
|
|
241 |
|
|
|
310 |
|
|
|
364 |
|
|
|
6,595 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(9,882 |
) |
|
|
(17 |
) |
|
|
(70 |
) |
|
|
(2,558 |
) |
|
|
(12,527 |
) |
Net realized gains (losses) |
|
|
(4,487 |
) |
|
|
— |
|
|
|
— |
|
|
|
865 |
|
|
|
(3,622 |
) |
Transfers into/out of Level 3(3) |
|
|
27,856 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,856 |
|
Fair value, end of period |
|
$ |
1,980,167 |
|
|
$ |
12,932 |
|
|
$ |
7,655 |
|
|
$ |
19,055 |
|
|
$ |
2,019,809 |
|
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2025 |
|
$ |
(9,348 |
) |
|
$ |
(17 |
) |
|
$ |
(70 |
) |
|
$ |
(2,122 |
) |
|
$ |
(11,557 |
) |
(1)Purchases may include investments received in corporate actions and restructurings. (2)Sales may include investments received in corporate actions and restructurings. (3)Transfer of portfolio investments within the three-level hierarchy is recorded during the period of such reclassification occurrence at the fair value as of the beginning of the respective period. Generally, reclassifications are primarily due to increase/decrease of price transparency.
|
| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. The tables are not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
Fair |
|
|
Valuation |
|
Significant
Unobservable |
|
Range(2) |
|
|
Weighted |
|
|
|
Value |
|
|
Technique(1) |
|
Input |
|
Low |
|
|
High |
|
|
Average(3) |
|
Investments in first lien debt |
|
$ |
2,121,008 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
7.40 |
% |
|
|
22.00 |
% |
|
|
10.09 |
% |
|
|
|
41,423 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
6.25 |
x |
|
|
12.00 |
x |
|
|
9.34 |
x |
Investments in second lien debt |
|
|
4,093 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
|
|
|
|
|
|
13.45 |
% |
|
|
|
3,353 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
6.25 |
x |
|
|
9.50 |
x |
|
|
6.45 |
x |
Investments in other securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other debt |
|
|
2,867 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
|
|
|
|
|
|
18.45 |
% |
|
|
|
2,192 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
|
|
|
|
|
|
6.25 |
x |
Preferred equity |
|
|
11,355 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
6.25 |
% |
|
|
18.00 |
% |
|
|
12.94 |
% |
|
|
|
7,145 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
9.98 |
x |
|
|
15.86 |
x |
|
|
12.83 |
x |
Common equity |
|
|
11,815 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
6.25 |
x |
|
|
17.75 |
x |
|
|
11.26 |
x |
|
|
|
2,396 |
|
|
Income Approach |
|
Revenue Multiple |
|
|
4.30 |
x |
|
|
20.25 |
x |
|
|
13.98 |
x |
Total investments |
|
$ |
2,207,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)During the six months ended June 30, 2026, nine debt investments with a combined fair value of $57.0 million transitioned from yield analysis approach to a market approach using an EBITDA multiple. One equity investment with a fair value of $1.0 million transitioned from a yield analysis to a market approach using an EBITDA multiple. (2)For an asset category that contains a single investment, the range is not included. (3)Weighted average for an asset category consisting of multiple investments is calculated by weighting the significant unobservable input by the relative fair value of the investment. Weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Fair |
|
|
Valuation |
|
Significant
Unobservable |
|
Range(2) |
|
|
Weighted |
|
|
|
Value |
|
|
Technique(1) |
|
Input |
|
Low |
|
|
High |
|
|
Average(3) |
|
Investments in first lien debt |
|
$ |
2,095,083 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
7.48 |
% |
|
|
39.21 |
% |
|
|
9.55 |
% |
|
|
|
13,066 |
|
|
Market Approach |
|
EBITDA Multiple |
|
7.75x |
|
|
10.00x |
|
|
8.94x |
|
Investments in second lien debt |
|
|
3,955 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
|
|
|
|
|
|
12.27 |
% |
|
|
|
9,380 |
|
|
Market Approach |
|
EBITDA Multiple |
|
7.75x |
|
|
10.00x |
|
|
7.84x |
|
Investments in other investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other debt |
|
|
4,872 |
|
|
Yield Analysis |
|
Discount Rate |
|
|
13.70 |
% |
|
|
14.95 |
% |
|
|
14.49 |
% |
|
|
|
3,157 |
|
|
Market Approach |
|
EBITDA Multiple |
|
|
|
|
|
|
|
7.75x |
|
Preferred equity |
|
|
8,536 |
|
|
Income Approach |
|
Discount Rate |
|
|
12.09 |
% |
|
|
15.66 |
% |
|
|
13.91 |
% |
|
|
|
4,022 |
|
|
Market Approach |
|
EBITDA Multiple |
|
7.75x |
|
|
15.43x |
|
|
12.02x |
|
Common equity |
|
|
3,546 |
|
|
Market Approach |
|
EBITDA Multiple |
|
3.90x |
|
|
24.60x |
|
|
13.21x |
|
|
|
|
3,023 |
|
|
Market Approach |
|
Revenue Multiple |
|
5.00x |
|
|
22.25x |
|
|
14.48x |
|
Total investments |
|
$ |
2,148,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1)During the year ended December 31, 2025, one unsecured debt position with a fair value of $13.34 million transitioned from an income approach to a yield analysis valuation technique. (2)For an asset category that contains a single investment, the range is not included. (3)Weighted average for an asset category consisting of multiple investments is calculated by weighting the significant unobservable input by the relative fair value of the investment. Weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.
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