v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value of a financial instrument 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 applicable measurement date.

The fair value hierarchy under ASC 820 prioritizes the inputs to valuation methodology used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these securities. The three levels of the fair value hierarchy are as follows:

•Level 1: Inputs to the valuation methodology that reflect unadjusted quoted prices available in active markets for identical assets or liabilities as of the reporting date.

•Level 2: Inputs to the valuation methodology other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date.
•Level 3: Inputs to the valuation methodology are unobservable and significant to overall fair value measurement.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the overall fair value measurement. The Adviser’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. 

In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of the inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value.

Investments whose values are based on the listed closing price quoted on the securities’ principal exchange are classified within Level 1 and include active listed equities. The Adviser does not adjust the quoted price for such instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds, structured products, and certain bank loans, less liquid listed equities, and high yield bonds. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments classified within Level 3 have unobservable inputs, as they trade infrequently, or not at all. When observable prices are not available for these investments, the Adviser uses one or more valuation techniques (e.g., the market approach and the income approach) of which sufficient and reliable data is available. Within Level 3, the use of the market approach generally consists of using comparable market data, while the use of the income approach generally consists of the net present value of estimated future cash flows, which may be adjusted as appropriate for liquidity, credit, market and/or other risk factors.

Investments in senior loans primarily include first and second lien term loans, delayed draws, revolving credit and other secured debt. The Adviser analyzes enterprise value based on the weighted average of discounted cash flows, public comparables and merger and acquisition comparables. This analysis is done to ensure, among other things, that the investments have adequate collateral and asset coverage. Once the investment is determined to have adequate asset coverage, the Adviser monitors yields for senior loan investments made from the time of purchase to the month end average yields for similar investments and risk profiles. The Company uses market data, including newly funded transactions, and secondary market data with respect to high-yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield. The change in yield is utilized by the Adviser to discount the anticipated cash flows of the debt investment in order to arrive at a fair value. Further, the Adviser adjusts for material changes in the underlying fundamentals of the issuer, including changes in leverage, as necessary. If the investment does not have adequate coverage, a tranched valuation approach is considered.

Derivative Instruments

Derivative instruments can be exchange-traded or privately negotiated over the-counter (“OTC”) and include forward currency contracts and swap contracts. Forwards currency contracts and swap contracts are valued by the Adviser using observable inputs, such as market-based quotations received from the counterparty, dealers or brokers, whenever available and considered reliable. In instances where models are used, the value of an OTC derivative depends upon the contractual terms of, and specific risks inherent in the contract, as well as the availability and reliability of observable inputs. Such inputs include market prices for reference securities, yield curves, volatility assumptions and correlations of such inputs. Certain OTC derivatives can generally be corroborated by market data and are therefore classified within Level 1 or Level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded.

Further inputs considered by the Adviser in estimating the value of investments may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets (by the investment or other comparable investments), whether the loan contains call protection and changes in financial ratios or cash flows. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Adviser in the absence of market information. The fair value measurement of Level 3 investments does not
include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Adviser due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Company’s Consolidated Statements of Operations.

Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. The rule permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform the fair value determinations. In accordance with this rule, the Company’s Board has designated the Company’s Adviser as the valuation designee primarily responsible for the valuation of the Company’s investments, subject to the oversight of the Board.

The following tables present the fair value hierarchy of investments and cash equivalents:

June 30, 2026
Level 1Level 2Level 3Total
First lien debt$— $255,044 $1,517,444 $1,772,488 
Second lien debt— — 10,045 10,045 
Other secured debt— — 79,396 79,396 
Unsecured debt— 28,606 27,552 56,158 
Structured finance investments— — 39,466 39,466 
Preferred equity— — 262,887 262,887 
Other equity investments— 24 50,544 50,568 
Total Investments$— $283,674 $1,987,334 $2,271,008 
Cash equivalents$28,812 $— $— $28,812 

December 31, 2025
Level 1Level 2Level 3Total
First lien debt$— $313,595 $1,481,458 $1,795,053 
Second lien debt— — 7,906 7,906 
Other secured debt— — 64,380 64,380 
Unsecured debt— — 48,111 48,111 
Structured finance investments— — 17,206 17,206 
Preferred equity— — 196,010 196,010 
Other equity investments— 21 49,134 49,155 
Total Investments$— $313,616 $1,864,205 $2,177,821 
Cash equivalents$9,700 $— $— $9,700 
The following tables present the change in the fair value of investments for which Level 3 inputs were used to determine fair value:

Three Months Ended June 30, 2026
First Lien DebtSecond Lien DebtOther Secured DebtUnsecured DebtStructured Finance InvestmentsPreferred EquityOther Equity InvestmentsTotal Investments
Fair value, beginning of period$1,492,185 $7,982 $74,116 $48,633 $18,944 $246,909 $49,636 $1,938,405 
Purchases of investments(1)
63,777 2,092 7,312 6,949 19,140 4,490 412 104,172 
Principal repayments and sales of investments(23,348)— (1,997)— — (161)(177)(25,683)
Accretion of discount/amortization of premium2,097 6 131 13 — — — 2,247 
Net realized gain (loss)449 — — — — — 64 513 
Net change in unrealized appreciation (depreciation)(12,312)(35)(166)(48)1,382 9,427 609 (1,143)
Transfers in(2)
— — — — — 2,222 — 2,222 
Transfers out(2)
(5,404)— — (27,995)— — — (33,399)
Fair value, end of period$1,517,444 $10,045 $79,396 $27,552 $39,466 $262,887 $50,544 $1,987,334 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2026
$(11,800)$(35)$(166)$(48)$1,382 $9,426 $609 $(632)

(1)Purchases include PIK interest and PIK dividends, if applicable.
(2)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, transfers out of level 3 of $(31.2) million were due to an increase in the number of market quotations and/or an increase in the reliability of market quotations obtained by the Adviser. For the three months ended June 30, 2026, transfers between investment types were $2.2 million.

Six Months Ended June 30, 2026
First Lien DebtSecond Lien DebtOther Secured DebtUnsecured DebtStructured Finance InvestmentsPreferred EquityOther Equity InvestmentsTotal Investments
Fair value, beginning of period$1,481,458 $7,906 $64,380 $48,111 $17,206 $196,010 $49,134 $1,864,205 
Purchases of investments(1)
172,725 2,188 33,655 7,618 20,949 51,352 679 289,166 
Principal repayments and sales of investments(112,687)— (19,802)— — (2,063)(177)(134,729)
Accretion of discount/amortization of premium5,029 11 340 25 — — — 5,405 
Net realized gain (loss)1,510 — 824 — — 210 64 2,608 
Net change in unrealized appreciation (depreciation)(25,780)(60)(908)(40)1,311 15,156 844 (9,477)
Transfers in(2)
891 — 907 — — 2,222 — 4,020 
Transfers out(2)
(5,702)— — (28,162)— — — (33,864)
Fair value, end of period$1,517,444 $10,045 $79,396 $27,552 $39,466 $262,887 $50,544 $1,987,334 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2026
$(23,886)$(60)$(542)$(40)$1,311 $15,165 $844 $(7,208)

(1)Purchases include PIK interest and PIK dividends, if applicable.
(2)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, transfers out of level 3 of $(30.7) million, were due to an increase in the number of market quotations and/or an increase in the reliability of market quotations obtained by the Adviser. For the six months ended June 30, 2026, transfers into level 3 of $0.9 million were due to a decrease in the number of market quotations and/or a decrease in the reliability of market quotations obtained by the Adviser. For the six months ended June 30, 2026, transfers between investment types were $3.1 million.
Three Months Ended June 30, 2025
First Lien DebtSecond Lien DebtOther Secured DebtUnsecured DebtStructured Finance InvestmentsPreferred EquityOther Equity InvestmentsTotal Investments
Fair value, beginning of period$1,004,807 $4,314 $18,307 $17,971 $— $31,187 $47,153 $1,123,739 
Purchases of investments(1)
168,535 59 307 609 83 89,630 287 259,510 
Principal repayments and sales of investments(55,426)— (1,667)— — — (4,994)(62,087)
Accretion of discount/amortization of premium1,575 3 48 13 — 2 — 1,641 
Net realized gain (loss)(228)— — — — — — (228)
Net change in unrealized appreciation (depreciation)3,785 (3)(45)(322)— 3,207 550 7,172 
Transfers in(2)
1,554 — — — — — — 1,554 
Transfers out(2)
(613)— — — — — (36)(649)
Fair value, end of period$1,123,989 $4,373 $16,950 $18,271 $83 $124,026 $42,960 $1,330,652 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2025
$4,443 $(3)$(45)$(322)$— $3,207 $550 $7,830 

(1)Purchases include PIK interest, if applicable.
(2)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, transfers into or out of Level 3 were primarily due to decreased or increased price transparency, respectively.

Six Months Ended June 30, 2025
First Lien DebtSecond Lien DebtOther Secured DebtUnsecured DebtStructured Finance InvestmentsPreferred EquityOther Equity InvestmentsTotal Investments
Fair value, beginning of period$701,826 $5,329 $17,960 $17,385 $— $28,588 $45,225 $816,313 
Purchases of investments(1)
475,625 115 2,253 1,192 83 90,375 299 569,942 
Principal repayments and sales of investments(61,665)— (3,333)— — — (4,994)(69,992)
Accretion of discount/amortization of premium2,689 6 99 25 — 4 — 2,823 
Net realized gain (loss)(227)— — — — — — (227)
Net change in unrealized appreciation (depreciation)4,666 (2)(29)(331)— 5,059 2,465 11,828 
Transfers in(2)
1,075 — — — — — — 1,075 
Transfers out(2)
— (1,075)— — — — (35)(1,110)
Fair value, end of period$1,123,989 $4,373 $16,950 $18,271 $83 $124,026 $42,960 $1,330,652 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2025
$5,001 $(2)$(29)$(331)$— $5,059 $2,465 $12,163 

(1)Purchases include PIK interest, if applicable.
(2)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, transfers into or out of Level 3 were primarily due to decreased or increased price transparency, respectively.
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 captures the significant unobservable inputs relevant to the Company’s determination of fair value.

June 30, 2026
Fair Value(1)
Valuation TechniqueUnobservable InputRange
Weighted Average(2)
Impact to Valuation from an Increase in Input
LowHigh
Investments in first lien debt$1,332,471 Yield analysisDiscount rate6.09 %25.82 %11.26 %Decrease
11,738 Discounted cash flowDiscount rate5.39 %20.00 %12.01 %Decrease
Exit multiple6.45x8.75x7.40xIncrease
11,857 Recovery analysisRecovery rate86.82 %99.23 %89.30 %Increase
Investments in second lien debt10,046 Yield analysisDiscount rate13.66 %16.48 %14.69 %Decrease
Investments in other secured debt66,698 Yield analysisDiscount rate10.36 %14.85 %10.87 %Decrease
Investments in unsecured debt21,302 Yield analysisDiscount rate13.04 %13.04 %13.04 %Decrease
Investments in structured finance investments12,631 Yield analysisDiscount rate6.35 %12.42 %10.74 %Decrease
5,528 Estimated Net Asset ValueNet Asset Value138.19 %138.19 %138.19 %Increase
Investments in preferred equity258,169 Yield analysisDiscount rate6.57 %20.43 %13.03 %Decrease
187 Discounted cash flowDiscount rate20.00 %20.00 %20.00 %Decrease
Exit multiple8.75x8.75x8.75xIncrease
Investments in other equity34,055 Yield analysisDiscount rate8.00 %10.00 %9.34 %Decrease
15,226 Discounted cash flowDiscount rate7.33 %10.50 %7.33 %Decrease
Exit multiple5.82x6.62x5.82xIncrease
December 31, 2025
Fair Value(1)
Valuation TechniqueUnobservable InputRange
Weighted Average(2)
Impact to Valuation from an Increase in Input
LowHigh
Investments in first lien debt$1,183,807 Yield analysisDiscount rate6.06 %26.10 %10.89 %Decrease
11,819 Discounted cash flowDiscount rate5.66 %20.00 %11.82 %Decrease
Exit multiple6.43x8.75x7.34xIncrease
Investments in second lien debt4,961 Yield analysisDiscount rate15.25 %16.24 %15.58 %Decrease
Investments in other secured debt31,310 Yield analysisDiscount rate10.63 %15.91 %11.71 %Decrease
Investments in unsecured debt48,111 Yield analysisDiscount rate12.78 %13.04 %12.89 %Decrease
Investments in structured finance investments8,626 Yield analysisDiscount rate6.23 %12.24 %10.35 %Decrease
Investments in preferred equity164,724 Yield analysisDiscount rate6.80 %24.23 %11.07 %Decrease
1,980 Discounted cash flowDiscount rate20.00 %20.00 %20.00 %Decrease
Exit multiple8.75x8.75x8.75xIncrease
Investments in other equity32,580 Yield analysisDiscount rate8.00 %10.00 %9.33 %Decrease
15,634 Discounted cash flowDiscount rate7.31 %7.31 %7.31 %Decrease
Exit multiple5.55x5.55x5.55xIncrease

(1)As of June 30, 2026, included within the fair value of Level 3 assets of $1,987,334 is an amount of $207,426 for which the Adviser did not develop the unobservable inputs (examples include third-party pricing and transaction prices). As of December 31, 2025, included within the fair value of Level 3 assets of $1,864,205 is an amount of $360,653 for which the Adviser did not develop the unobservable inputs (examples include third-party pricing and transaction prices).
(2)Weighted averages are calculated based on fair value of investments.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it. In
addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

Financial Instruments Not Carried at Fair Value

The following table presents fair value measurements of the Company’s debt obligations as of June 30, 2026 and December 31, 2025, had they been accounted for at fair value:

Debt
June 30, 2026December 31, 2025
Carrying ValueFair ValueCarrying ValueFair Value
Revolving Credit Facility$575,292 $575,292 $578,709 $578,709 
August 2028 Notes(1)
147,909 148,969 149,589 151,264 
August 2030 Notes(1)
196,258 198,025 199,366 202,099 
Total$919,459 $922,286 $927,664 $932,072 

(1)As of June 30, 2026 and December 31, 2025, the carrying value of the Company’s Unsecured Notes (as defined below), are presented net of unamortized debt issuance costs. Additionally, the carrying value of the Company’s Unsecured Notes includes the increase (decrease) in the notes carrying value as a result of the qualifying fair value hedge relationship as further described in Note 6. See “Note 7. Borrowings” to the consolidated financial statements for additional disclosure regarding the carrying value of our debt.

The following table presents the fair value hierarchy of the Company’s debt obligations as of June 30, 2026 and December 31, 2025:

June 30, 2026December 31, 2025
Level 1$— $— 
Level 2— — 
Level 3922,286 932,072 
Total$922,286 $932,072 

As of June 30, 2026 and December 31, 2025, the carrying amounts of the Company’s assets and liabilities, other than investments at fair value and debt, approximate fair value due to their short maturities. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, if applicable, or market quotes, if available.