v3.26.1
Derivative Instruments
6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

4. Derivative Instruments

In the normal course of business, CVC-PEF may enter into derivative contracts to achieve certain risk management objectives. CVC-PEF may enter into derivative instruments to hedge against foreign currency exchange rate risk on a portion or all of its non-U.S. dollar denominated investments. CVC-PEF utilizes forward currency contracts to economically hedge the currency exposure associated with certain foreign-denominated investments. These derivative contracts are not designated as hedging instruments for accounting purposes. The use of foreign exchange contracts does not eliminate fluctuations in the price of the underlying investments recognized by CVC-PEF. As a result of the use of derivative contracts, CVC-PEF is exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, CVC-PEF enters into contracts with certain major financial institutions, primarily those with investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

The table below summarizes the aggregate notional amount and fair value of the derivative instruments. The notional amount represents the absolute value amount of the foreign exchange contracts:

 

June 30, 2026

 

 

Assets

 

 

Labilities

 

 

Notional

 

 

Fair Value

 

 

Notional

 

 

Fair Value

 

Derivative Instruments

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency Forward
   Contracts (EUR)

69,872

 

 

$

1,266

 

 

4,634

 

 

$

52

 

 

The table below summarizes the impact to the Consolidated Statements of Operations from derivative instruments:

 

Three Months Ended

 

 

June 30, 2026

 

Derivative Instruments

 

 

Foreign Currency Forward Contracts

 

 

Net Change in Unrealized Appreciation
   (Depreciation)

$

1,214

 

Total Derivative Instruments

$

1,214