v3.26.1
Investments and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Investments and Fair Value Measurements [Abstract]  
Investment Portfolio at Cost and Fair Value

The composition of the Company’s investment portfolio at cost and fair value as of June 30, 2026 and December 31, 2025 were as follows:

 

 

June 30, 2026

 

 

December 31, 2025

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at Fair
Value

 

First lien debt

 

$

1,076,504,190

 

 

$

1,069,394,384

 

 

 

96.40

%

 

$

1,014,538,515

 

 

$

1,012,512,999

 

 

 

91.22

%

Second lien debt

 

 

27,285,624

 

 

 

27,091,046

 

 

 

2.44

%

 

 

79,589,151

 

 

 

79,235,481

 

 

 

7.14

%

Profit Participation Loan

 

 

7,524,153

 

 

 

7,375,108

 

 

 

0.66

%

 

 

—

 

 

 

—

 

 

 

—

 

Equity

 

 

4,591,763

 

 

 

5,504,765

 

 

 

0.50

%

 

 

17,462,670

 

 

 

18,228,567

 

 

 

1.64

%

Total investments

 

$

1,115,905,730

 

 

$

1,109,365,303

 

 

 

100.00

%

 

$

1,111,590,336

 

 

$

1,109,977,047

 

 

 

100.00

%

 

The industry composition of investments based on fair value as of June 30, 2026 and December 31, 2025, were as follows:

 

 

June 30, 2026

 

 

December 31, 2025

 

Oil, Gas & Consumable Fuels

 

 

9.08

%

 

 

9.26

%

Independent Power and Renewable Electricity Producers

 

 

7.64

 

 

 

7.83

 

Health Care Providers & Services

 

 

6.91

 

 

 

6.72

 

Building Products

 

 

6.32

 

 

 

6.87

 

Entertainment

 

 

6.17

 

 

 

6.24

 

Software

 

 

5.95

 

 

 

6.10

 

Hotels, Restaurants & Leisure

 

 

5.20

 

 

 

5.02

 

Media

 

 

5.14

 

 

 

5.13

 

Specialty Retail

 

 

4.94

 

 

 

5.13

 

Biotechnology

 

 

4.63

 

 

 

4.24

 

Real Estate Management & Development

 

 

4.63

 

 

 

—

 

Insurance

 

 

4.50

 

 

 

—

 

Construction Materials

 

 

3.49

 

 

 

3.34

 

Machinery

 

 

3.24

 

 

 

3.28

 

Automobile Components

 

 

3.13

 

 

 

3.28

 

IT Services

 

 

2.84

 

 

 

3.05

 

Electric Utilities

 

 

2.38

 

 

 

3.67

 

Trading Companies & Distributors

 

 

2.18

 

 

 

2.12

 

Metals & Mining

 

 

2.15

 

 

 

—

 

Commercial Services & Supplies

 

 

2.04

 

 

 

2.93

 

Automobiles

 

 

1.69

 

 

 

1.72

 

Construction & Engineering

 

 

1.62

 

 

 

4.33

 

Textiles, Apparel & Luxury Goods

 

 

1.32

 

 

 

1.35

 

Ground Transportation

 

 

1.23

 

 

 

0.07

 

Capital Markets

 

 

0.66

 

 

 

—

 

Gas Utilities

 

 

0.36

 

 

 

0.35

 

Chemicals

 

 

0.26

 

 

 

0.36

 

Distributors

 

 

0.12

 

 

 

0.20

 

Air Freight & Logistics

 

 

0.09

 

 

 

0.04

 

Household Durables

 

 

0.09

 

 

 

4.73

 

Aerospace & Defense

 

 

—

 

 

 

2.08

 

Electronic Equipment, Instruments & Components

 

 

—

 

 

 

0.22

 

Energy Equipment & Services

 

 

—

 

 

 

0.18

 

Food Products

 

 

—

 

 

 

0.16

 

Total

 

 

100.00

%

 

 

100.00

%

 

 

The geographic composition of investments at cost and fair value as of June 30, 2026 and December 31, 2025 were as follows:

 

 

June 30, 2026

 

 

December 31, 2025

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at
Fair Value

 

 

Fair Value
as % of Net
Assets

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at
Fair Value

 

 

Fair Value
as % of Net
Assets

 

United States

 

$

930,086,263

 

 

$

922,726,956

 

 

 

83.18

%

 

 

123.02

%

 

$

926,547,693

 

 

$

922,106,713

 

 

 

83.07

%

 

 

130.47

%

Canada

 

 

93,107,826

 

 

 

94,428,332

 

 

 

8.51

%

 

 

12.59

%

 

 

96,593,415

 

 

 

97,826,849

 

 

 

8.81

%

 

 

13.84

%

Germany

 

 

85,187,488

 

 

 

84,834,907

 

 

 

7.65

%

 

 

11.31

%

 

 

85,032,755

 

 

 

86,857,421

 

 

 

7.83

%

 

 

12.29

%

Ireland

 

 

7,524,153

 

 

 

7,375,108

 

 

 

0.66

%

 

 

0.98

%

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Luxembourg

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,980,476

 

 

 

1,999,950

 

 

 

0.18

%

 

 

0.28

%

United Kingdom

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,435,997

 

 

 

1,186,114

 

 

 

0.11

%

 

 

0.17

%

Total

 

$

1,115,905,730

 

 

$

1,109,365,303

 

 

 

100.00

%

 

 

147.90

%

 

$

1,111,590,336

 

 

$

1,109,977,047

 

 

 

100.00

%

 

 

157.05

%

 
Fair Value Hierarchy of Investments

The following tables present the fair value hierarchy of the Company’s investment portfolio as of June 30, 2026 and December 31, 2025:

 

 

June 30, 2026

 

Assets

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

50,020,260

 

 

$

1,019,374,124

 

 

$

1,069,394,384

 

Second Lien Debt

 

 

—

 

 

 

—

 

 

 

27,091,046

 

 

 

27,091,046

 

Profit Participating Loan

 

 

—

 

 

 

—

 

 

 

7,375,108

 

 

 

7,375,108

 

Equity

 

 

—

 

 

 

—

 

 

 

733,312

 

 

 

733,312

 

Subtotal

 

$

—

 

 

$

50,020,260

 

 

$

1,054,573,590

 

 

$

1,104,593,850

 

Investment measured at net asset value(1)

 

 

 

 

 

 

 

 

 

 

 

4,771,453

 

Total investments

 

 

 

 

 

 

 

 

 

 

$

1,109,365,303

 
(1)
The Company, as a practical expedient, estimates the fair value of its investments in KKR Tinder TFC Aggregator L.P. and KELS MM 2026-1 Designated Activity Company using the net asset value of the Company’s interest in the entities. As such, the fair value has not been classified within the fair value hierarchy.

 

 

 

December 31, 2025

 

Assets

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

63,686,105

 

 

$

948,826,894

 

 

$

1,012,512,999

 

Second Lien Debt

 

 

—

 

 

 

—

 

 

 

79,235,481

 

 

 

79,235,481

 

Equity

 

 

338,798

 

 

 

—

 

 

 

920,642

 

 

 

1,259,440

 

Subtotal

 

$

338,798

 

 

$

63,686,105

 

 

$

1,028,983,017

 

 

$

1,093,007,920

 

Investment measured at net asset value(1)

 

 

 

 

 

 

 

 

 

 

 

16,969,127

 

Total investments

 

 

 

 

 

 

 

 

 

 

$

1,109,977,047

 
(1)
The Company, as a practical expedient, estimates the fair value of its investment in KKR Tinder TFC Aggregator L.P. using the net asset value of the Company’s interest in the entity. As such, the fair value has not been classified within the fair value hierarchy.
Fair Value of Investments

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

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Profit Participating Loan

 

 

Equity

 

 

Total

 

Balance as of March 31, 2026

 

$

967,207,290

 

 

$

83,326,811

 

 

$

—

 

 

$

825,614

 

 

$

1,051,359,715

 

Purchases of investments

 

 

94,091,024

 

 

 

—

 

 

 

7,524,153

 

 

 

—

 

 

 

101,615,177

 

Proceeds from principal pre-payments and sales of investments

 

 

(42,687,172

)

 

 

(54,837,410

)

 

 

—

 

 

 

—

 

 

 

(97,524,582

)

Payment-in-kind

 

 

904,108

 

 

 

529,547

 

 

 

—

 

 

 

—

 

 

 

1,433,655

 

Net accretion of discount on investments

 

 

1,562,665

 

 

 

909,981

 

 

 

—

 

 

 

—

 

 

 

2,472,646

 

Net realized gain (loss)

 

 

824,306

 

 

 

542,945

 

 

 

—

 

 

 

—

 

 

 

1,367,251

 

Net change in unrealized appreciation/(depreciation)

 

 

(543,072

)

 

 

(3,380,828

)

 

 

(149,045

)

 

 

(92,302

)

 

 

(4,165,247

)

Transfers into Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3(1)

 

 

(1,985,025

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,985,025

)

Balance as of June 30, 2026

 

$

1,019,374,124

 

 

$

27,091,046

 

 

$

7,375,108

 

 

$

733,312

 

 

$

1,054,573,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3
   investments still held at the end of the period

 

$

500,926

 

 

$

(502,672

)

 

$

(149,045

)

 

$

(92,303

)

 

$

(243,094

)

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Profit Participating Loan

 

 

Equity

 

 

Total

 

Balance as of December 31, 2025

 

$

948,826,894

 

 

$

79,235,481

 

 

$

—

 

 

$

920,642

 

 

$

1,028,983,017

 

Purchases of investments

 

 

169,514,463

 

 

 

—

 

 

 

7,524,153

 

 

 

—

 

 

 

177,038,616

 

Proceeds from principal pre-payments and sales of investments

 

 

(98,009,022

)

 

 

(54,837,410

)

 

 

—

 

 

 

—

 

 

 

(152,846,432

)

Payment-in-kind

 

 

2,303,638

 

 

 

1,045,321

 

 

 

—

 

 

 

—

 

 

 

3,348,959

 

Net accretion of discount on investments

 

 

3,043,196

 

 

 

945,618

 

 

 

—

 

 

 

—

 

 

 

3,988,814

 

Net realized gain (loss)

 

 

1,055,355

 

 

 

542,945

 

 

 

—

 

 

 

—

 

 

 

1,598,300

 

Net change in unrealized appreciation/(depreciation)

 

 

(5,365,400

)

 

 

159,091

 

 

 

(149,045

)

 

 

(187,330

)

 

 

(5,542,684

)

Transfers into Level 3(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3(1)

 

 

(1,995,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,995,000

)

Balance as of June 30, 2026

 

$

1,019,374,124

 

 

$

27,091,046

 

 

$

7,375,108

 

 

$

733,312

 

 

$

1,054,573,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period

 

$

(5,288,158

)

 

$

(999,201

)

 

$

(149,045

)

 

$

(187,330

)

 

$

(6,623,734

)

 

Level 2 investments are valued using prices obtained from pricing services. Due to changes in the observability of certain valuation inputs period over period the Company had $(1,985,025) and $(1,995,000) in transfers between levels on a net basis during the three and six months ended June 30, 2026, respectively.

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Total

 

Balance as of March 31, 2025

 

$

621,187,775

 

 

$

76,315,930

 

 

$

697,503,705

 

Purchases of investments

 

 

212,151,503

 

 

 

273,761

 

 

 

212,425,264

 

Proceeds from principal pre-payments and sales of investments

 

 

(71,275,923

)

 

 

—

 

 

 

(71,275,923

)

Payment-in-kind

 

 

529,517

 

 

 

813,637

 

 

 

1,343,154

 

Net accretion of discount on investments

 

 

2,301,821

 

 

 

182,994

 

 

 

2,484,815

 

Net realized gain (loss)

 

 

419,390

 

 

 

—

 

 

 

419,390

 

Net change in unrealized appreciation/(depreciation)

 

 

5,091,087

 

 

 

(611,039

)

 

 

4,480,048

 

Transfers into Level 3

 

 

18,615,493

 

 

 

—

 

 

 

18,615,493

 

Transfers out of Level 3

 

 

(6,588,432

)

 

 

—

 

 

 

(6,588,432

)

Balance as of June 30, 2025

 

$

782,432,231

 

 

$

76,975,283

 

 

$

859,407,514

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3
   investments still held at the end of the period

 

$

4,032,931

 

 

$

(611,039

)

 

$

3,421,892

 

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Total

 

Balance as of December 31, 2024

 

$

531,672,622

 

 

$

75,443,518

 

 

$

607,116,140

 

Purchases of investments

 

 

353,276,519

 

 

 

273,761

 

 

 

353,550,280

 

Proceeds from principal pre-payments and sales of investments

 

 

(113,860,187

)

 

 

—

 

 

 

(113,860,187

)

Payment-in-kind

 

 

1,013,699

 

 

 

1,588,770

 

 

 

2,602,469

 

Net accretion of discount on investments

 

 

3,831,807

 

 

 

355,999

 

 

 

4,187,806

 

Net realized gain (loss)

 

 

1,869,187

 

 

 

—

 

 

 

1,869,187

 

Net change in unrealized appreciation/(depreciation)

 

 

3,383,835

 

 

 

(686,765

)

 

 

2,697,070

 

Transfers into Level 3

 

 

6,269,653

 

 

 

—

 

 

 

6,269,653

 

Transfers out of Level 3

 

 

(5,024,904

)

 

 

—

 

 

 

(5,024,904

)

Balance as of June 30, 2025

 

$

782,432,231

 

 

$

76,975,283

 

 

$

859,407,514

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period

 

$

4,177,151

 

 

$

(686,765

)

 

$

3,490,386

 
Valuation Techniques and Significant Unobservable Inputs of Level 3 Investments

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of June 30, 2026 and December 31, 2025 were as follows:

 

Investment Type

 

Fair Value as of June 30, 2026

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average (1)

 

Equity

 

$

733,312

 

 

Market Approach

 

EBITDA Multiple

 

12.50x - 13.50x

 

13.00x

 

 

 

 

 

 

Income Approach

 

Discount rate

 

8.75%

 

8.75%

 

Profit Participating Loan

 

 

7,375,108

 

 

Recoverability Analysis

 

Recoverability Amount

 

N/A

 

N/A

 

Second Lien Debt

 

 

27,091,046

 

 

Market Approach

 

EBITDA Multiple

 

12.50x - 13.50x

 

13.00x

 

 

 

 

 

 

Income Approach

 

Discount rate

 

8.75%

 

8.75%

 

First Lien Debt

 

 

1,007,488,248

 

 

Discounted cash flow

 

Discount rate

 

7.87% - 28.21%

 

11.04%

 

 

 

11,885,876

 

 

Market quotations

 

Broker quoted price

 

97.00 - 100.00

 

 

98.69

 

 

 

1,054,573,590

 

 

 

 

 

 

 

 

 

 

 

(1)
Unobservable inputs were weighted by the relative fair value of investments.

 

Investment Type

 

Fair Value as of December 31, 2025

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average (2)

 

Equity

 

$

920,642

 

 

Market Approach

 

EBITDA Multiple

 

12.50x - 13.50x

 

13.00x

 

 

 

 

 

 

Income Approach

 

Discount rate

 

9.00%

 

9.00%

 

Second Lien Debt

 

 

52,190,555

 

 

Discounted cash flow

 

Discount rate

 

11.73% - 11.73%

 

11.73%

 

 

 

 

27,044,926

 

 

Market Approach

 

EBITDA Multiple

 

12.50x - 13.50x

 

13.00x

 

 

 

 

 

 

Income Approach

 

Discount rate

 

9.00%

 

9.00%

 

First Lien Debt

 

 

811,714,266

 

 

Discounted cash flow

 

Discount rate

 

8.61% - 20.14%

 

10.82%

 

 

 

12,420,497

 

 

Market quotations

 

Broker quoted price

 

96.00 - 100.63

 

 

99.47

 

 

 

 

124,692,131

 

 

Transactional Value(1)

 

N/A

 

N/A

 

N/A

 

 

$

1,028,983,017

 

 

 

 

 

 

 

 

 

 

 

(1)
Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio companies since the transaction date.
(2)
Unobservable inputs were weighted by the relative fair value of investments.