v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Under existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or would pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. This accounting guidance emphasizes valuation techniques that maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets.
Level 3: Inputs that are unobservable for an asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
As of June 30, 2026 and December 31, 2025, the Company’s investments were categorized as follows in the fair value hierarchy:
Valuation Inputs
June 30, 2026
(Unaudited)
December 31, 2025
Level 1—Price quotations in active markets$— $— 
Level 2—Significant other observable inputs113,776 145,102 
Level 3—Significant unobservable inputs1,439,771 1,391,266 
$1,553,547 $1,536,368 
As of June 30, 2026 and December 31, 2025, the Company had $9,425 and $7,834, respectively, of cash equivalents invested in money market funds which were categorized as Level 1 in the fair value hierarchy. In addition, the Company had foreign currency forward contracts, as described in Note 7, which were categorized as Level 2 in the fair value hierarchy as of June 30, 2026 and December 31, 2025.
The Board is responsible for overseeing the valuation of the Company’s portfolio investments at fair value as determined in good faith pursuant to the Adviser’s valuation policy. The Board has designated the Adviser as the Company’s valuation designee, with day-to-day responsibility for implementing the portfolio valuation process set forth in the Adviser’s valuation policy.
The Company’s investments consist primarily of debt investments that were acquired directly from the issuer. Debt investments, for which broker quotes are not available, are valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, the borrower’s ability to adequately service its debt, prevailing interest rates for like investments, expected cash flows, call features, anticipated repayments and other relevant terms of the investments. Except as described below, all of the Company’s equity/other investments are also valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, contractual rights ascribed to such investments, as well as various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in limited instances, book value or liquidation value. An investment that is newly issued and purchased near the date of the financial statements is valued at cost if the Adviser determines that the cost of such investment is the best indication of its fair value. Such investments described above are typically classified as Level 3 within the fair value hierarchy. Investments that are traded on an active public market are valued at their closing price as of the date of the financial statements and are classified as Level 1 within the fair value hierarchy. Except as described above, the Adviser typically values the Company’s other investments by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which are provided by independent third-party pricing services and screened for validity by such services and are typically classified as Level 2 within the fair value hierarchy.
The Adviser periodically benchmarks the bid and ask prices it receives from the third-party pricing services and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these
investments, the Adviser believes that these prices are reliable indicators of fair value. The Adviser reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Adviser’s valuation policy.
The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended June 30, 2026 and 2025:
For the Six Months Ended June 30, 2026
Senior Secured Loans—First LienSubordinated DebtAsset Based FinanceEquity/OtherTotal
Fair value at beginning of period$1,089,801 $— $301,465 $— $1,391,266 
Accretion of discount (amortization of premium)342 — 707 — 1,049 
Net realized gain (loss)(4,342)— 32 — (4,310)
Net change in unrealized appreciation (depreciation)(19,590)— (107)— (19,697)
Purchases139,429 1,032 88,228 2,384 231,073 
Paid-in-kind interest977 — 950 — 1,927 
Sales and repayments(89,232)— (72,305)— (161,537)
Transfers into Level 3— — — — — 
Transfers out of Level 3— — — — — 
Fair value at end of period$1,117,385 $1,032 $318,970 $2,384 $1,439,771 
The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date$(19,968)$— $470 $— $(19,498)
For the Six Months Ended June 30, 2025
Senior Secured Loans—First LienAsset Based FinanceTotal
Fair value at beginning of period$385,040 $33,348 $418,388 
Accretion of discount (amortization of premium)153 89 242 
Net realized gain (loss)(133)(49)(182)
Net change in unrealized appreciation (depreciation)2,994 2,295 5,289 
Purchases308,997 98,505 407,502 
Paid-in-kind interest717 393 1,110 
Sales and repayments(21,209)(18,056)(39,265)
Transfers into Level 3— — — 
Transfers out of Level 3— — — 
Fair value at end of period$676,559 $116,525 $793,084 
The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date$3,033 $2,295 $5,328 
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of June 30, 2026 and December 31, 2025 were as follows:
Type of Investment
Fair Value at June 30, 2026
(Unaudited)
Valuation
Technique		Unobservable
Input		Range (Weighted Average)
Impact to Valuation from an Increase in Input(1)
Senior Debt$1,088,971 Discounted Cash FlowDiscount Rate
4.3% - 15.6% (9.2%)
Decrease
11,178 WaterfallEBITDA Multiple
6.7x - 16.7x (12.0x)
Increase
17,236 
Cost(2)
Subordinated Debt1,032 WaterfallEBITDA Multiple
7.2x - 7.2x (7.2x)
Increase
Asset Based Finance307,086 Discounted Cash FlowDiscount Rate
6.1% - 18.4% (11.0%)
Decrease
5,901 
Cost(2)
5,983 
Other(3)
Equity/Other2,384 WaterfallEBITDA Multiple
7.2x - 7.2x (7.2x)
Increase
Total$1,439,771 

Type of Investment
Fair Value at December 31, 2025
Valuation
Technique		Unobservable
Input		Range (Weighted Average)
Impact to Valuation from an Increase in Input(1)
Senior Debt$992,515 Discounted Cash FlowDiscount Rate
4.6% - 12.7% (8.4%)
Decrease
97,286 
Cost(2)
Asset Based Finance151,963 Discounted Cash FlowDiscount Rate
4.7% - 16.0% (9.2%)
Decrease
80,653 
Cost(2)
68,849 
Other(3)
Total$1,391,266 
________________
(1)Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.
(2)Fair value was determined based on recent transaction pricing with no material changes in operations of the related portfolio company since the transaction date.
(3)Fair value based on expected outcome of proposed corporate transactions and/or other factors.