v3.26.1
Investment Valuations and Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2026
Investment Valuations And Fair Value Measurements [Abstract]  
Summary by Major Security Type of Fair Valuations According to Inputs Used in Valuing Investments

The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of June 30, 2026:

 

Investments

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Debt

 

$

 

 

$

 

 

$

613,345

 

 

$

613,345

 

Equity

 

 

40,610

 

 

 

 

 

 

5,016

 

 

 

45,626

 

Cash equivalents

 

 

28,121

 

 

 

 

 

 

 

 

 

28,121

 

Total

 

$

68,731

 

 

$

 

 

$

618,361

 

 

$

687,092

 

 

The following is a summary by major security type of the fair valuations according to inputs used in valuing investments listed in the Consolidated Schedule of Investments as of December 31, 2025:

 

Investments

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Debt

 

$

 

 

$

 

 

$

1,169,913

 

 

$

1,169,913

 

Equity

 

 

 

 

 

 

 

 

39,875

 

 

 

39,875

 

Cash equivalents

 

 

41,045

 

 

 

 

 

 

 

 

 

41,045

 

Total

 

$

41,045

 

 

$

 

 

$

1,209,788

 

 

$

1,250,833

 

Reconciliation of Beginning and Ending Balances for Total Investments

The following tables provide a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the three and six months ended June 30, 2026:

 

 

Debt

 

 

Equity

 

 

Total

 

Balance, April 1, 2026

 

$

1,263,318

 

 

$

46,335

 

 

$

1,309,653

 

Purchases

 

 

52,814

 

 

 

 

 

 

52,814

 

Sales and paydowns of investments

 

 

(60,950

)

 

 

(782

)

 

 

(61,732

)

Investments transferred pursuant to Exchange Offer

 

 

(637,861

)

 

 

(23,395

)

 

 

(661,256

)

Amortization of premium and accretion of discount, net

 

 

1,485

 

 

 

 

 

 

1,485

 

Net realized (loss) gain

 

 

(25,828

)

 

 

14,558

 

 

 

(11,270

)

Net change in unrealized appreciation/(depreciation)

 

 

20,367

 

 

 

(31,700

)

 

 

(11,333

)

Balance, June 30, 2026

 

$

613,345

 

 

$

5,016

 

 

$

618,361

 

Change in net unrealized appreciation/(depreciation) in investments held as of June 30, 2026

 

$

22,393

 

 

$

2,778

 

 

$

25,171

 

 

 

Debt

 

 

Equity

 

 

Total

 

Balance, January 1, 2026

 

$

1,169,913

 

 

$

39,875

 

 

$

1,209,788

 

Purchases, including payments received in-kind

 

 

285,933

 

 

 

357

 

 

 

286,290

 

Sales and paydowns of investments

 

 

(195,837

)

 

 

(1,139

)

 

 

(196,976

)

Investments transferred pursuant to Exchange Offer

 

 

(637,861

)

 

 

(23,395

)

 

 

(661,256

)

Amortization of premium and accretion of discount, net

 

 

3,569

 

 

 

 

 

 

3,569

 

Net realized gain

 

 

(25,761

)

 

 

14,558

 

 

 

(11,203

)

Net change in unrealized appreciation/(depreciation)

 

 

13,389

 

 

 

(25,240

)

 

 

(11,851

)

Balance, June 30, 2026

 

$

613,345

 

 

$

5,016

 

 

$

618,361

 

Change in net unrealized appreciation/(depreciation) in investments held as of June 30, 2026

 

$

15,799

 

 

$

3,944

 

 

$

19,743

 

 

3.
Investment Valuations and Fair Value Measurements (Continued)

The following tables provide a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the three and six months ended June 30, 2025:

 

 

Debt

 

 

Equity

 

 

Total

 

Balance, April 1, 2025

 

$

1,097,095

 

 

$

2,031

 

 

$

1,099,126

 

Purchases

 

 

263,529

 

 

 

1,176

 

 

 

264,705

 

Sales and paydowns of investments

 

 

(105,893

)

 

 

(277

)

 

 

(106,170

)

Amortization of premium and accretion of discount, net

 

 

2,267

 

 

 

 

 

 

2,267

 

Net realized loss

 

 

(75

)

 

 

 

 

 

(75

)

Net change in unrealized appreciation/(depreciation)

 

 

(22,002

)

 

 

5,610

 

 

 

(16,392

)

Balance, June 30, 2025

 

$

1,234,921

 

 

$

8,540

 

 

$

1,243,461

 

Change in net unrealized appreciation/(depreciation) in investments held as of June 30, 2025

 

$

(21,121

)

 

$

5,610

 

 

$

(15,511

)

 

 

Debt

 

 

Equity

 

 

Total

 

Balance, January 1, 2025

 

$

941,903

 

 

$

224

 

 

$

942,127

 

Purchases, including payments received in-kind

 

 

438,398

 

 

 

1,933

 

 

 

440,331

 

Sales and paydowns of investments

 

 

(121,305

)

 

 

(401

)

 

 

(121,706

)

Amortization of premium and accretion of discount, net

 

 

3,703

 

 

 

 

 

 

3,703

 

Net change in unrealized appreciation/(depreciation)

 

 

(27,703

)

 

 

6,784

 

 

 

(20,919

)

Balance, June 30, 2025

 

$

1,234,921

 

 

$

8,540

 

 

$

1,243,461

 

Change in net unrealized appreciation/(depreciation) in investments held as of June 30, 2025

 

$

(26,823

)

 

$

6,784

 

 

$

(20,039

)

Summary of Valuation Techniques and Quantitative Information in Determining Fair value of Level 3 Investments The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of June 30, 2026:

 

Investment Type

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average*

 

 

Impact to
Valuation if
Input Increases

Debt

 

$

549,523

 

 

Income Method

 

Discount Rate

 

9.2% to 32.0%

 

12.2%

 

 

Decrease

Debt

 

$

57,153

 

 

Market Method

 

EBITDA Multiple

 

5.0x to 7.5x

 

5.8x

 

 

Increase

Debt

 

$

6,669

 

 

Income Method

 

Discount Rate

 

14.1% to 17.5%

 

15.8%

 

 

Decrease

 

 

 

 

 

Market Method

 

EBITDA Multiple

 

3.1x to 4.1x

 

3.6x

 

 

Increase

Equity

 

$

4,546

 

 

Market Method

 

EBITDA Multiple

 

4.6x to 7.0x

 

5.1x

 

 

Increase

Equity

 

$

150

 

 

Market Method

 

Revenue Multiple

 

1.2x to 1.4x

 

1.3x

 

 

Increase

Equity

 

$

320

 

 

Market Method

 

EBITDA Multiple

 

4.5x to 5.5x

 

5.0x

 

 

Increase

 

 

 

 

 

Income Method

 

Implied Volatility

 

45.0% to 55.0%

 

50.0%

 

 

Decrease

 

 

 

 

 

Income Method

 

Expected Term (in years)

 

4.5 to 5.5

 

 

5.0

 

 

Decrease

* Weighted based on fair value

The following table summarizes the valuation techniques and quantitative information utilized in determining the fair value of the Level 3 investments as of December 31, 2025:

 

Investment Type

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average*

 

Impact to
Valuation if
Input Increases

Debt

 

$

878,416

 

 

Income Method

 

Discount Rate

 

8.0% to 19.1%

 

11.1%

 

Decrease

Debt

 

$

169,177

 

 

Market Method

 

EBITDA Multiple

 

4.5x to 9.5x

 

6.8x

 

Increase

Debt

 

$

56,008

 

 

Market Method

 

Indicative Bid

 

99.3% to 99.3%

 

99.3%

 

Increase

Debt

 

$

31,362

 

 

Income Method

 

Discount Rate

 

15.4% to 18.1%

 

16.8%

 

Decrease

 

 

 

 

 

Market Method

 

Indicative Bid

 

101.0% to 101.0%

 

101.0%

 

Increase

Debt

 

$

34,950

 

 

Income Method

 

Discount Rate

 

13.3% to 27.0%

 

20.8%

 

Decrease

 

 

 

 

Market Method

 

EBITDA Multiple

 

3.8x to 7.5x

 

5.9x

 

Increase

Equity

 

$

39,625

 

 

Income Method

 

EBITDA Multiple

 

4.8x to 10.8x

 

8.1x

 

Increase

Equity

 

$

250

 

 

Market Method

 

Revenue Multiple

 

1.3x to 1.5x

 

1.4x

 

Increase

* Weighted based on fair value