Fair Value Measurements

6 Months Ended

Jun. 30, 2026

Note 5. Fair Value Measurements

The Company holds securities and other assets and liabilities that are fair valued on a monthly basis. The Company’s investments are valued monthly based on a number of factors, such as the type of investment.

Various inputs determine how the Company’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed below and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement and Disclosures. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.

Such inputs are summarized in the three broad levels listed below.

•

Level 1—unadjusted quoted prices generally in active markets for identical securities.

•

Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

•

Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company’s private credit investments’ fair valuations are classified as Level 3 in the fair value hierarchy. Such fair values are typically determined by utilizing the income approach and discounted cash flow methodology. When an enterprise value analysis or asset collateral analysis indicates there is sufficient coverage through the subject debt security, an income approach with a yield analysis is generally considered the most appropriate method to estimate fair value. In performing a yield analysis, the annual cash flows that a subject security is expected to generate over its remaining estimated holding period are first estimated. Projected cash flows are then converted to their present value equivalent utilizing a rate of return commensurate with the risk of achieving the cash flows, which results at an estimate of fair value. The discount rate can be derived considering the rate of return implied by the original transaction, adjusted for changes in both market spreads and credit-specific factors. Consistent with industry practices, the income approach incorporates subjective judgments regarding the capitalization or discount rate and projections of future cash flows.

Newly acquired private credit investments may initially be valued at cost. Each private credit investment will then be valued monthly by an independent valuation advisor utilizing the methodology described above.

Investments in open-end funds (other than exchange-traded funds) are valued at their NAVs as of the close of the New York Stock Exchange on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

The following is a summary of the inputs used as of June 30, 2026 and December 31, 2025 in valuing such financial instruments (dollar amounts in thousands):


	June 30, 2026
Assets	Level 1		Level 2		Level 3		Total
First Lien Debt	$	—	$	—	$	426,639	$	426,639
Equity Investments		—		—		3,276		3,276
Cash Equivalents		4,157		—		—		4,157
Total	$	4,157	$	—	$	429,915	$	434,072
Unrealized appreciation (depreciation) on OTC forward foreign currency exchange contracts*	$	—	$	467	$	—	$	467


	December 31, 2025
Assets	Level 1		Level 2			Level 3		Total
First Lien Debt	$	—	$	—		$	360,727	$	360,727
Equity Investments		—		—			827		827
Total	$	—	$	—		$	361,554	$	361,554
Unrealized appreciation (depreciation) on OTC forward foreign currency exchange contracts*	$	—	$	(1,663	)	$	—	$	(1,663	)

* Represents derivative instruments not reflected in the Consolidated Schedule of Investments, which are recorded at the unrealized appreciation (depreciation) on the instrument.

The following table presents the change in the fair value of financial instruments for which Level 3 inputs were used to determine the fair value (dollar amounts in thousands):


	Three Months Ended June 30, 2026
	Debt Investments			Equity Investments		Total
Fair value, beginning of period	$	396,540		$	1,042	$	397,582
Purchases of investments		59,425			—		59,425
Proceeds from principal repayments		(28,325	)		—		(28,325	)
Payment-in-kind interest		42			—		42
Accretion of discount/amortization of premium		702			—		702
Net realized gain (loss)		26			—		26
Net change in unrealized appreciation (depreciation)		(1,771	)		2,234		463
Fair value, end of period	$	426,639		$	3,276	$	429,915
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of June 30, 2026	$	(1,771	)		2,234	$	463


	Six Months Ended June 30, 2026
	Debt Investments			Equity Investments		Total
Fair value, beginning of period	$	360,727		$	827	$	361,554
Purchases of investments		129,117			—		129,117
Proceeds from principal repayments		(61,848	)		—		(61,848	)
Payment-in-kind interest		202			—		202
Accretion of discount/amortization of premium		1,410			—		1,410
Net realized gain (loss)		383			—		383
Net change in unrealized appreciation (depreciation)		(3,352	)		2,449		(903	)
Fair value, end of period	$	426,639		$	3,276	$	429,915
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of June 30, 2026	$	(3,352	)	$	2,449	$	(903	)


	Three Months Ended June 30, 2025
	Debt Investments			Equity Investments			Total
Fair value, beginning of period	$	226,796		$	—		$	226,796
Purchases of investments		42,114			367			42,481
Proceeds from principal repayments		(16,595	)		—			(16,595	)
Payment-in-kind interest		162			—			162
Accretion of discount/amortization of premium		526			—			526
Net realized gain (loss)		(1,012	)		—			(1,012	)
Net change in unrealized appreciation (depreciation)		2,025			(26	)		1,999
Fair value, end of period	$	254,016		$	341		$	254,357
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of June 30, 2025	$	2,025		$	(26	)	$	1,999

	Six Months Ended June 30, 2025
	Debt Investments			Equity Investments			Total
Fair value, beginning of period	$	209,214		$	—		$	209,214
Purchases of investments		71,070			367			71,437
Proceeds from principal repayments		(29,076	)		—			(29,076	)
Payment-in-kind interest		170			—			170
Accretion of discount/amortization of premium		911			—			911
Net realized gain (loss)		(1,008	)		—			(1,008	)
Net change in unrealized appreciation (depreciation)		2,735			(26	)		2,709
Fair value, end of period	$	254,016		$	341		$	254,357
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of June 30, 2025	$	2,735		$	(26	)	$	2,709

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. 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 (dollar amounts in thousands).

          
         Fair Value as of
June 30,
2026(1)

         Valuation Approach/
Methodology

         Unobservable
Input(s)

         Range/ Input 
(Weighted Average)*

         Directional Impact
on Fair Value
from Input Increase**

         Assets:

First Lien Debt

374,638

Income/Discounted Cash Flow

Discount Rate

7.85% - 15.11%
(9.91%)

Decrease

First Lien Debt

7,144

Recovery Method

Recovery Rate

74.47% - 93.11%
(81.40%)

Increase

Equity Investments

3,276

Market / Enterprise Value

EBITDA Multiple

6.5x - 7.5x 
(7.0x)

Increase

385,058

* Represents the weighted average of each significant unobservable input range at the investment level by fair value.

** Represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.

(1)

As of June 30, 2026, included within the fair value of Level 3 assets of $429,915 is an amount of $44,856 (dollar amounts in thousands) for which the Manager did not develop the unobservable inputs (examples include recent transaction prices).

          
         Fair value as of December 31, 2025 (1)

         Valuation Approach/
Methodology

         Unobservable
Input(s)

         Range
(Weighted
Average)*

         Directional Impact on Fair Value from Input Increase**

         Assets:

First Lien Debt

311,770

Income/Discounted Cash Flow

Discount Rate

7.36% - 14.87%
(9.72%)

Decrease

Equity Investments

827

Market / Enterprise Value

EBITDA Multiple

3.5x - 4.5x (4.0x)

Increase

312,597

* Represents the weighted average of each significant unobservable input range at the investment level by fair value.

(1)

As of December 31, 2025, included within the fair value of Level 3 assets of $361,554 is an amount of $48,957 for which the Manager did not develop the unobservable inputs (examples include recent transaction prices).

The Company invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is foreign exchange contracts risk. See “Note 2. Accounting Policies” for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Company’s financial position and financial performance as reflected in the Consolidated Statements of Assets and Liabilities and Consolidated Statements of Operations is presented in the summary below.

Fair value of derivative instruments as of June 30, 2026 as presented in the Consolidated Statements of Assets and Liabilities (dollar amounts in thousands):

         Asset Derivatives

         Liability Derivatives

         Derivative not
accounted for as
hedging instruments,
carried at fair value

         Consolidated Statement of Assets 
and Liabilities Location

         Fair
Value

         Consolidated Statement of Assets
and Liabilities Location

         Fair
Value

Foreign exchange contracts

Unrealized appreciation on OTC forward foreign currency exchange contracts

817

Unrealized depreciation on OTC forward foreign currency exchange contracts

350

Fair value of derivative instruments as of December 31, 2025 as presented in the Consolidated Statements of Assets and Liabilities (dollar amounts in thousands):

         Asset Derivatives

         Liability Derivatives

         Derivative not
accounted for as
hedging instruments,
carried at fair value

         Consolidated Statement of Assets
and Liabilities Location

         Fair
Value

         Consolidated Statement of Assets
and Liabilities Location

         Fair
Value

Foreign exchange contracts

Unrealized appreciation on OTC forward foreign currency exchange contracts

13

Unrealized depreciation on OTC forward foreign currency exchange contracts

1,676

The effects of derivative instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2026 are as follows (dollar amounts in thousands):


Amount of Realized Gain (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Foreign currency exchange contract
	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
Foreign exchange contracts	$	34	$	(716	)
Total	$	34	$	(716	)


Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Foreign currency exchange contract
	Three Months Ended June 30, 2026			Six Months Ended June 30, 2026
Foreign exchange contracts	$	(124	)	$	2,130
Total	$	(124	)	$	2,130

The effects of derivative instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2025 are as follows (dollar amounts in thousands):


Amount of Realized Gain (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Foreign currency exchange contract
	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
Foreign exchange contracts	$	(47	)	$	453
Total	$	(47	)	$	453


Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Foreign currency exchange contract
	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
Foreign exchange contracts	$	(1,775	)	$	(2,985	)
Total	$	(1,775	)	$	(2,985	)

For the three and six months ended June 30, 2026 and 2025, the Company’s average volume of derivative activities is as follows (dollar amounts in thousands):


	Average Volume of Derivative Activities*
Derivative Contract Type	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
Forward Foreign Currency Exchange Contracts - Sold (1)		61,069		61,608
Forward Foreign Currency Exchange Contracts - Purchased (1)		195		243


	Average Volume of Derivative Activities*
Derivative Contract Type	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Forward Foreign Currency Exchange Contracts - Sold (1)		24,539		24,399
Forward Foreign Currency Exchange Contracts - Purchased (1)		336		352

* Average volume is based on average quarter end balance as noted for the three and six months ended June 30, 2026 and 2025.

(1) Value at Settlement Date

Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements

The Company invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.

Offsetting of OTC derivative assets and liabilities as of June 30, 2026 (dollar amounts in thousands):


Counterparty	Gross Amounts of Recognized Assets(1)		Gross Amounts of Recognized Liabilities(1)			Net Amounts of Recognized Assets/(Liabilities)			Collateral Pledged/(Received)(2)		Net Amount
Macquarie Bank Limited	$	656	$	(58	)	$	598		$	—	$	598
Nomura International plc		159		(99	)		60			—		60
Commonwealth Bank Of Australia		2		(193	)		(191	)		—		(191	)
	$	817	$	(350	)	$	467		$	—	$	467

(1)

Includes unrealized appreciation/(depreciation) on forwards as represented on the Consolidated Statement of Assets and Liabilities.

(2)

Collateral amount disclosed by the Company is limited to the Company’s OTC derivative exposure by counterparty.

Offsetting of OTC derivative and financial instruments/transactions assets and liabilities as of December 31, 2025 (dollar amounts in thousands):


Counterparty	Gross Amounts of Recognized Assets(1)			Gross Amounts of Recognized Liabilities(1)			Net Amounts of Recognized Assets/(Liabilities)			Collateral Pledged/(Received)(2)		Net Amount
Macquarie Bank Limited	$	9		$	(424	)	$	(415	)	$	—	$	(415	)
Nomura International plc		4			(896	)		(892	)		—		(892	)
Commonwealth Bank Of Australia		—	*		(356	)		(356	)		—		(356	)
	$	13		$	(1,676	)	$	(1,663	)	$	—	$	(1,663	)


Description	Counterparty	Gross Market Value of Recognized Assets/(Liabilities)			Collateral Pledged/(Received)(2)		Net Amount
Reverse Repurchase Agreement	Macquarie Bank Limited	$	(7,670	)	$	7,670	$	—

(1)

Includes unrealized appreciation/(depreciation) on forwards as represented on the Consolidated Statement of Assets and Liabilities.

(2)

Collateral amount disclosed by the Company is limited to the market value of financial instruments/transactions and the OTC derivative exposure by counterparty.

* Less than $500

Financial Instruments disclosed but not carried at fair value

The following tables present the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of June 30, 2026 and December 31, 2025, and the level of each financial liability within the fair value hierarchy (dollar amounts in thousands):


	June 30, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving Credit Facility	$	89,850	$	89,850	$	165,750	$	165,750
Asset-Based Lending Facility		58,000		58,000		—		—
Reverse Repurchase Agreement		—		—		7,670		7,670
Promissory Notes Payable		215		215		214		214
	$	148,065	$	148,065	$	173,634	$	173,634


	June 30, 2026		December 31, 2025
Level 1	$	—	$	—
Level 2		—		—
Level 3		148,065		173,634
Total debt	$	148,065	$	173,634

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
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+ Details