Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2026

Note 3—Fair Value of Financial Instruments

Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:

•

Level 1—Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

•

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

•

Level 3—Unobservable inputs that reflect the Fund’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but are instead derived from particular valuation techniques.

The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Fund evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

Determination of fair values involves subjective judgments and estimates. Accordingly, the notes to the consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations on the consolidated financial statements.

The following table presents fair value measurements of investments and cash equivalents, by major class, as of June 30, 2026, according to the fair value hierarchy.


	Fair Value Measurements
	Level 1		Level 2		Level 3		Totals
First Lien Senior Secured	$	—	$	8,745	$	888,559	$	897,304
Second Lien Senior Secured		—		—		13,589		13,589
Equity		—		—		22,497		22,497
Warrants		—		—		44		44
Cash Equivalents		10,091		—		—		10,091
Total	$	10,091	$	8,745	$	924,689	$	943,525

The following table presents fair value measurements of investments and cash equivalents, by major class, as of December 31, 2025, according to the fair value hierarchy.


	Fair Value Measurements
	Level 1		Level 2		Level 3		Totals
First Lien Senior Secured	$	—	$	8,715	$	890,459	$	899,174
Second Lien Senior Secured		—		7,045		15,600		22,645
Equity		—		—		15,856		15,856
Warrants		—		—		50		50
Cash Equivalents		3,334		—		—		3,334
Total	$	3,334	$	15,760	$	921,965	$	941,059

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended June 30, 2026.


	First Lien Senior Secured			Second Lien Senior Secured			Equity			Warrants			Total Investments
Balance as of December 31, 2025	$	890,459		$	15,600		$	15,856		$	50		$	921,965
Purchases and other adjustments to cost		82,362			27			5,869			—			88,258
Sales and repayments		(72,113	)		(15,000	)		(570	)		—			(87,683	)
Transfers in		—			3,708			—			—			3,708
Net realized gain/ (loss) on investments		(16	)		68			—			—			52
Net change in unrealized gain/ (loss) on investments		(3,764	)		190			668			(6	)		(2,912	)
Net accretion of discount on investments		1,249			52			—			—			1,301
Restructures		(9,618	)		8,944			674			—			—
Balance as of June 30, 2026	$	888,559		$	13,589		$	22,497		$	44		$	924,689
Net change in unrealized appreciation (depreciation) on investments still held at June 30, 2026	$	(2,593	)	$	(258	)	$	670		$	(6	)	$	(2,187	)

For the six months ended June 30, 2026, the Fund transferred one broadly syndicated loan from Level 2 to Level 3 due to the decreased observability of valuation inputs.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended June 30, 2025.


	First Lien Senior Secured			Second Lien Senior Secured			Equity			Warrants		Total Investments
Balance as of December 31, 2024	$	393,203		$	—		$	6,065		$	—	$	399,268
Purchases and other adjustments to cost		312,617			25,467			1,515			—		339,599
Sales and repayments		(33,811	)		—			—			—		(33,811	)
Transfers out of Level 3		(19,730	)		(9,859	)		—			—		(29,589	)
Net realized gain (loss) on investments		(528	)		—			—			—		(528	)
Net change in unrealized gain/ (loss) on investments		(765	)		(120	)		(168	)		72		(981	)
Net accretion of discount on investments		851			9			—			—		860
Balance as of June 30, 2025	$	651,837		$	15,497		$	7,412		$	72	$	674,818
Net change in unrealized appreciation (depreciation) on investments still held at June 30, 2025	$	(876	)	$	(81	)	$	(166	)	$	72	$	(1,051	)

For the six months ended June 30, 2025, the Fund transferred three broadly syndicated loans from Level 3 to Level 2 due to the increased observability of valuation inputs.

Significant Unobservable Inputs

The following table summarizes the significant unobservable inputs used to value Level 3 investments as of June 30, 2026. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.


					Selected Input Range									Impact to
Asset Category	Fair Value		Primary Valuation Technique	Unobservable Inputs	Minimum			Maximum			Weighted Average (a)			Valuation from an Increase in Input (b)
First Lien Senior Secured	$	879,159	Discounted Cash Flow	Discount Rate		4.9	%		20.4	%		9.7	%	Decrease
First Lien Senior Secured		863	Market Comparables	EBITDA Multiple		7.3	x		8.3	x		7.8	x	Increase
First Lien Senior Secured		8,537	Cost	Recent Transaction Price	N/A			N/A			N/A			Increase
Second Lien Senior Secured		13,589	Discounted Cash Flow	Discount Rate		10.9	%		13.0	%		12.4	%	Decrease
Equity		18,676	Discounted Cash Flow	Discount Rate		11.0	%		21.3	%		18.2	%	Decrease
Equity		3,534	Market Comparables	EBITDA Multiple		7.3	x		14.5	x		12.2	x	Increase
Equity		287	Market Comparables	Revenue Multiple		2.7	x		3.7	x		3.2	x	Increase
Warrant		44	Market Comparables	EBITDA Multiple		10.5	x		11.5	x		11.0	x	Increase
Total	$	924,689

(a)

Weighted averages are calculated based on fair value of investments.

(b)

Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding inputs as of a period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at the period end.

The following table summarizes the significant unobservable inputs used to value Level 3 investments as of December 31, 2025. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

          
         Selected Input Range

         Impact to

         Asset Category

         Fair Value

         Primary Valuation Technique

         Unobservable Inputs

         Minimum

         Maximum

         Weighted Average (a)

         Valuation from an Increase in Input (b)

First Lien Senior Secured

822,454

Discounted Cash Flow

Discount Rate

4.8

20.6

9.0

Decrease

First Lien Senior Secured

66,701

Recent Transaction Price

Recent Transaction Price

N/A

N/A

N/A

Increase

First Lien Senior Secured

1,303

Market Comparables

EBITDA Multiple

6.8

8.3

7.5

Increase

Second Lien Senior Secured

15,600

Discounted Cash Flow

Discount Rate

11.1

19.5

11.8

Decrease

Equity

7,756

Discounted Cash Flow

Discount Rate

11.0

19.6

17.5

Decrease

Equity

5,400

Recent Transaction Price

Recent Transaction Price

N/A

N/A

N/A

Increase

Equity

2,388

Market Comparables

EBITDA Multiple

10.8

14.0

13.0

Increase

Equity

313

Market Comparables

Revenue Multiple

3.0

4.0

3.5

Increase

Warrant

50

Market Comparables

EBITDA Multiple

11.0

12.0

11.5

Increase

Total

921,965

(a)

Weighted averages are calculated based on fair value of investments.

(b)

There were no significant changes in valuation approach or technique as of June 30, 2026 and December 31, 2025.

Level 3 inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately held entities where the fair value is based on unobservable inputs.

The income and market approaches were used in the determination of fair value of certain Level 3 assets as of June 30, 2026 and December 31, 2025. The significant unobservable inputs used in the income approach are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments and any other end of term fees, as applicable. Included in the consideration and selection of discount rates are factors such as risk of default, interest rate risk, and changes in credit quality. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies.

As of June 30, 2026, the Fund had one portfolio investment on a non-accrual status. As of December 31, 2025, the Fund had one portfolio investment on a non-accrual status. Refer to Note 2—Summary of Significant Accounting Policies for additional details regarding the Fund's non-accrual policy.

The following table shows the amortized cost and fair value of the Fund's performing and non-accrual investments as of June 30, 2026 and December 31, 2025.


	June 30, 2026				December 31, 2025
Portfolio Company	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Performing	$	935,145	$	933,180	$	936,204	$	937,047
Non-accrual		620		254		620		678
Total	$	935,765	$	933,434	$	936,824	$	937,725

For a discussion of the fair value measurement of the Fund's borrowings, refer to Note 7—Borrowings.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details