v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5.
Fair Value Measurements

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 investments) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 investments). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 Financial assets and liabilities whose values reflect unadjusted quoted prices that are available in active markets for identical investments as of the reporting date.

Level 2 Financial assets and liabilities whose values are based upon pricing inputs, including certain broker dealer quotes that are generally those other than exchange quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Level 3 Financial assets and liabilities whose values are based on pricing inputs that are unobservable for the investment and include situations where (i) there is minimal, if any, market activity for the investment, or (ii) the inputs used in the determination of fair value require significant management judgment or estimation.

On December 14, 2023, the Board appointed the Advisor as the Company’s valuation designee in accordance with Rule 2a-5 under the 1940 Act. As the valuation designee, the Advisor determines fair values of the Company’s investments pursuant to a valuation policy approved by the Board and pursuant to a consistently applied valuation process. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant, individually or in the aggregate, to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Advisor. The Advisor considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Advisor’s perceived risk of that instrument.

The valuation of investments classified within Level 3 of the fair value hierarchy is prepared on a quarterly basis and is subject to oversight and review. Each valuation is reviewed and approved by the Valuation & Allocation Committee which consists of senior members of the Advisor, including investment professionals and representatives from legal, compliance and finance. In connection with this process, valuation models are updated by the valuation team based on historical and projected financial information, observable market data, market liquidity and other factors and reviewed by the investment professionals. Valuation results are assessed in light of industry trends, general economic and market conditions and factors specific to each investment. The Advisor’s valuation team intends to engage third-party valuation firms to perform independent valuation reviews of certain modeled Level 3 valuations where there is significant management judgment or estimation. These reviews are generally performed twice annually, including one review at year end. The Advisor’s Valuation & Allocation Committee is ultimately responsible for coordinating and implementing the Company’s valuation policies, guidelines and processes on behalf of the Company.

The following tables present the fair value hierarchy of cash equivalents and investments as of June 30, 2026 and December 31, 2025:

 

 

 

Fair Value Hierarchy as of June 30, 2026

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured debt investments

 

$

—

 

 

$

—

 

 

$

1,383,321

 

 

$

1,383,321

 

Second lien senior secured debt investments

 

 

—

 

 

 

—

 

 

 

46,605

 

 

 

46,605

 

Unsecured debt investments

 

 

—

 

 

 

—

 

 

 

82,020

 

 

 

82,020

 

U.S. treasury bill

 

 

107,377

 

 

 

—

 

 

 

—

 

 

 

107,377

 

Cash equivalents

 

 

18,711

 

 

 

—

 

 

 

—

 

 

 

18,711

 

Total cash equivalents and investments at fair value

 

$

126,088

 

 

$

—

 

 

$

1,511,946

 

 

$

1,638,034

 

 

 

 

 

Fair Value Hierarchy as of December 31, 2025

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured debt investments

 

$

—

 

 

$

42,515

 

 

$

1,162,717

 

 

$

1,205,232

 

Second lien senior secured debt investments

 

 

—

 

 

 

—

 

 

 

48,987

 

 

 

48,987

 

Unsecured debt investments

 

 

—

 

 

 

—

 

 

 

79,786

 

 

 

79,786

 

U.S. treasury bill

 

 

172,864

 

 

 

—

 

 

 

—

 

 

 

172,864

 

Cash equivalents

 

 

9,794

 

 

 

—

 

 

 

—

 

 

 

9,794

 

Total cash equivalents and investments at fair value

 

$

182,658

 

 

$

42,515

 

 

$

1,291,490

 

 

$

1,516,663

 

 

 

The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2026 and June 30, 2025:

 

 

For the Three Months Ended June 30, 2026

 

($ in thousands)

 

First lien
senior secured
debt
investments

 

 

Second lien
senior secured
debt
investments

 

 

Unsecured debt investments

 

 

Total

 

Fair value, beginning of period

 

$

1,380,357

 

 

$

48,831

 

 

$

81,200

 

 

$

1,510,388

 

Purchases of investments

 

 

285,440

 

 

 

—

 

 

 

—

 

 

 

285,440

 

Payment-in-kind

 

 

—

 

 

 

—

 

 

 

793

 

 

 

793

 

Proceeds from investments

 

 

(282,153

)

 

 

(2,241

)

 

 

—

 

 

 

(284,394

)

Net change in unrealized gain (loss)

 

 

(3,656

)

 

 

(58

)

 

 

(36

)

 

 

(3,750

)

Net realized gains (losses)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

Net amortization/accretion of premium/discount on
   investments

 

 

3,334

 

 

 

73

 

 

 

63

 

 

 

3,470

 

Transfers between investment types

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into (out of) Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value, end of period

 

$

1,383,321

 

 

$

46,605

 

 

$

82,020

 

 

$

1,511,946

 

Net change in unrealized gain (loss) still
    held at June 30, 2026

 

$

(3,502

)

 

$

(58

)

 

$

(35

)

 

$

(3,595

)

 

(1)
Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three months ended June 30, 2026, there were no transfers into (out of) Level 3.

 

 

 

For the Three Months Ended June 30, 2025

 

($ in thousands)

 

First lien
senior secured
debt
investments

 

 

Second lien
senior secured
debt
investments

 

 

Unsecured debt investments

 

 

Total

 

Fair value, beginning of period

 

$

433,525

 

 

$

48,908

 

 

$

—

 

 

$

482,433

 

Purchases of investments

 

 

426,807

 

 

 

—

 

 

 

62,292

 

 

 

489,099

 

Payment-in-kind

 

 

—

 

 

 

—

 

 

 

382

 

 

 

382

 

Proceeds from investments

 

 

(105,502

)

 

 

(126

)

 

 

—

 

 

 

(105,628

)

Net change in unrealized gain (loss)

 

 

(263

)

 

 

(105

)

 

 

(33

)

 

 

(401

)

Net realized gains (losses)

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

(6

)

Net amortization/accretion of premium/discount on
   investments

 

 

972

 

 

 

88

 

 

 

25

 

 

 

1,085

 

Transfers between investment types

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into (out of) Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value, end of period

 

$

755,533

 

 

$

48,765

 

 

$

62,666

 

 

$

866,964

 

Net change in unrealized gain (loss) still
    held at June 30, 2025

 

$

(74

)

 

$

(105

)

 

$

(33

)

 

$

(212

)

 

(1)
Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three months ended June 30, 2025, there were no transfers into (out of) Level 3.

 

 

For the Six Months Ended June 30, 2026

 

($ in thousands)

 

First lien
senior secured
debt
investments

 

 

Second lien
senior secured
debt
investments

 

 

Unsecured debt investments

 

 

Total

 

Fair value, beginning of period

 

$

1,162,717

 

 

$

48,987

 

 

$

79,786

 

 

$

1,291,490

 

Purchases of investments, net

 

 

512,394

 

 

 

—

 

 

 

—

 

 

 

512,394

 

Payment-in-kind

 

 

—

 

 

 

—

 

 

 

1,931

 

 

 

1,931

 

Proceeds from investments, net

 

 

(289,127

)

 

 

(2,367

)

 

 

—

 

 

 

(291,494

)

Net change in unrealized gain (loss)

 

 

(7,331

)

 

 

(147

)

 

 

110

 

 

 

(7,368

)

Net realized gains (losses)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

Net amortization/accretion of premium/discount on
   investments

 

 

4,669

 

 

 

132

 

 

 

193

 

 

 

4,994

 

Transfers between investment types

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into (out of) Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value, end of period

 

$

1,383,321

 

 

$

46,605

 

 

$

82,020

 

 

$

1,511,946

 

Net change in unrealized gain (loss) still
    held at June 30, 2026

 

$

(7,003

)

 

$

(147

)

 

$

110

 

 

$

(7,040

)

 

(1)
Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the six months ended June 30, 2026, there were no transfers into (out of) Level 3.

 

 

For the Six Months Ended June 30, 2025

 

($ in thousands)

 

First lien
senior secured
debt
investments

 

 

Second lien
senior secured
debt
investments

 

 

Unsecured debt investments

 

 

Total

 

Fair value, beginning of period

 

$

395,206

 

 

$

49,000

 

 

$

—

 

 

$

444,206

 

Purchases of investments, net

 

 

476,562

 

 

 

—

 

 

 

62,292

 

 

 

538,854

 

Payment-in-kind

 

 

—

 

 

 

—

 

 

 

382

 

 

 

382

 

Proceeds from investments, net

 

 

(117,577

)

 

 

(250

)

 

 

—

 

 

 

(117,827

)

Net change in unrealized gain (loss)

 

 

(254

)

 

 

(71

)

 

 

(33

)

 

 

(358

)

Net realized gains (losses)

 

 

(13

)

 

 

—

 

 

 

—

 

 

 

(13

)

Net amortization/accretion of premium/discount on
   investments

 

 

1,609

 

 

 

86

 

 

 

25

 

 

 

1,720

 

Transfers between investment types

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into (out of) Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value, end of period

 

$

755,533

 

 

$

48,765

 

 

$

62,666

 

 

$

866,964

 

Net change in unrealized gain (loss) still
    held at June 30, 2025

 

$

(3

)

 

$

(71

)

 

$

(33

)

 

$

(107

)

 

(1)
Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the six months ended June 30, 2025, there were no transfers into (out of) Level 3.

 

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 assets as of June 30, 2026 and December 31, 2025. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.

 

 

 

As of June 30, 2026

 

 

 

 

 

 

 

 

 

Range

 

 

($ in thousands)

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Input

 

Low

 

High

 

Weighted Average

First lien senior secured debt investments

 

$

1,152,295

 

 

Yield Analysis

 

Discount Rate

 

9.4%

 

15.5%

 

10.7%

First lien senior secured debt investments

 

 

231,026

 

 

Recent Transaction

 

Transaction Price

 

98.5%

 

99.3%

 

99.0%

Second lien senior secured debt investments

 

 

46,605

 

 

Yield Analysis

 

Discount Rate

 

12.0%

 

12.0%

 

12.0%

Unsecured debt investments

 

 

82,020

 

 

Yield Analysis

 

Discount Rate

 

13.8%

 

14.6%

 

13.9%

Total

 

$

1,511,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

Range

 

 

($ in thousands)

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Input

 

Low

 

High

 

Weighted Average

First lien senior secured debt investments

 

$

868,271

 

 

Yield Analysis

 

Discount Rate

 

8.8%

 

11.2%

 

9.7%

First lien senior secured debt investments

 

 

294,446

 

 

Recent Transaction

 

Transaction Price

 

98.0%

 

99.3%

 

98.5%

Second lien senior secured debt investments

 

 

48,987

 

 

Yield Analysis

 

Discount Rate

 

11.4%

 

11.4%

 

11.4%

Unsecured debt investments

 

 

65,086

 

 

Yield Analysis

 

Discount Rate

 

13.3%

 

13.8%

 

13.4%

Unsecured debt investments

 

 

14,700

 

 

Recent Transaction

 

Transaction Price

 

98.0%

 

98.0%

 

98.0%

Total

 

$

1,291,490

 

 

 

 

 

 

 

 

 

 

 

 

The significant unobservable inputs used in the fair value measurement of the Company’s investments in debt investments are discount rates and transaction prices. Significant increases (decreases) in discount rates in isolation would result in significant decreases (increases) in fair value measurement. Significant increases (decreases) in transaction prices in isolation would result in significant increases (decreases) in fair value measurement.