| Schedule of fair value hierarchy |
The following table presents the fair value hierarchy as of June 30, 2026.
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|
June 30, 2026 |
|
|
|
|
|
($ in thousands) |
|
|
Level 1 |
|
|
|
Level 2 |
|
|
|
Level 3 |
|
|
|
Total |
|
First Lien Loans |
|
$ |
|
— |
|
|
$ |
|
110,347 |
|
|
$ |
|
2,507,023 |
|
|
$ |
|
2,617,370 |
|
Second Lien Loans |
|
|
|
— |
|
|
|
|
48,032 |
|
|
|
|
81,694 |
|
|
|
|
129,726 |
|
Unsecured Notes |
|
|
|
— |
|
|
|
|
23,423 |
|
|
|
|
131,894 |
|
|
|
|
155,317 |
|
Preferred Equity |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
31,484 |
|
|
|
|
31,484 |
|
Common Equity & Warrants |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
11,144 |
|
|
|
|
11,144 |
|
Subtotal |
|
$ |
|
— |
|
|
$ |
|
181,802 |
|
|
$ |
|
2,763,239 |
|
|
$ |
|
2,945,041 |
|
Investments Measured at NAV |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
17,775 |
|
Interest rate swaps |
|
|
|
— |
|
|
|
|
(2,124 |
) |
|
|
|
— |
|
|
|
|
(2,124 |
) |
Total |
|
$ |
|
— |
|
|
$ |
|
179,678 |
|
|
$ |
|
2,763,239 |
|
|
$ |
|
2,960,692 |
|
The following table presents the fair value hierarchy as of December 31, 2025.
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December 31, 2025 |
|
($ in thousands) |
|
|
Level 1 |
|
|
|
Level 2 |
|
|
|
Level 3 |
|
|
|
Total |
|
First Lien Loans |
|
$ |
|
— |
|
|
$ |
|
111,646 |
|
|
$ |
|
2,437,356 |
|
|
$ |
|
2,549,002 |
|
Second Lien Loans |
|
|
|
— |
|
|
|
|
59,663 |
|
|
|
|
73,430 |
|
|
|
|
133,093 |
|
Unsecured Notes |
|
|
|
— |
|
|
|
|
16,081 |
|
|
|
|
122,502 |
|
|
|
|
138,583 |
|
Preferred Equity |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
40,166 |
|
|
|
|
40,166 |
|
Common Equity & Warrants |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
10,644 |
|
|
|
|
10,644 |
|
Subtotal |
|
$ |
|
— |
|
|
$ |
|
187,390 |
|
|
$ |
|
2,684,098 |
|
|
$ |
|
2,871,488 |
|
Investments Measured at NAV |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
11,466 |
|
Total |
|
$ |
|
— |
|
|
$ |
|
187,390 |
|
|
$ |
|
2,684,098 |
|
|
$ |
|
2,882,954 |
|
|
| Schedule of changes in the fair value of investments for which Level 3 inputs were used to determine the fair value |
The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2026 and 2025:
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|
Three Months Ended June 30, 2026 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,478,127 |
|
|
$ |
82,042 |
|
|
$ |
115,262 |
|
|
$ |
35,619 |
|
|
$ |
10,104 |
|
|
$ |
2,721,154 |
|
Purchases of investments, net |
|
145,462 |
|
|
|
7,327 |
|
|
|
17,969 |
|
|
|
2,275 |
|
|
|
- |
|
|
|
173,033 |
|
Proceeds from sales and principal payments, net |
|
(115,916 |
) |
|
|
(8,050 |
) |
|
|
(485 |
) |
|
|
(6,841 |
) |
|
|
- |
|
|
|
(131,292 |
) |
Realized gain (loss) on investments |
|
633 |
|
|
|
7 |
|
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
691 |
|
Net change in unrealized appreciation/(depreciation) |
|
(2,777 |
) |
|
|
326 |
|
|
|
(896 |
) |
|
|
366 |
|
|
|
1,040 |
|
|
|
(1,941 |
) |
Net accretion of discount and amortization of investments |
|
1,494 |
|
|
|
42 |
|
|
|
44 |
|
|
|
14 |
|
|
|
- |
|
|
|
1,594 |
|
Ending balance |
$ |
2,507,023 |
|
|
$ |
81,694 |
|
|
$ |
131,894 |
|
|
$ |
31,484 |
|
|
$ |
11,144 |
|
|
$ |
2,763,239 |
|
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|
|
|
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|
|
|
|
|
|
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|
|
Three Months Ended June 30, 2025 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,263,619 |
|
|
$ |
80,945 |
|
|
$ |
101,708 |
|
|
$ |
37,257 |
|
|
$ |
11,800 |
|
|
$ |
2,495,329 |
|
Purchases of investments, net |
|
173,248 |
|
|
|
281 |
|
|
|
2,048 |
|
|
|
1,251 |
|
|
|
— |
|
|
|
176,828 |
|
Proceeds from sales and principal payments, net |
|
(157,034 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(157,034 |
) |
Realized gain (loss) on investments |
|
1,923 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,923 |
|
Net change in unrealized appreciation/(depreciation) |
|
371 |
|
|
|
829 |
|
|
|
162 |
|
|
|
56 |
|
|
|
131 |
|
|
|
1,549 |
|
Net accretion of discount and amortization of investments |
|
1,808 |
|
|
|
24 |
|
|
|
55 |
|
|
|
19 |
|
|
|
— |
|
|
|
1,906 |
|
Ending balance |
$ |
2,283,935 |
|
|
$ |
82,079 |
|
|
$ |
103,973 |
|
|
$ |
38,583 |
|
|
$ |
11,931 |
|
|
$ |
2,520,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,437,356 |
|
|
$ |
73,430 |
|
|
$ |
122,504 |
|
|
$ |
40,166 |
|
|
$ |
10,645 |
|
|
$ |
2,684,101 |
|
Purchases of investments, net |
|
366,547 |
|
|
|
17,389 |
|
|
|
20,434 |
|
|
|
3,236 |
|
|
|
- |
|
|
|
407,606 |
|
Proceeds from sales and principal payments, net |
|
(289,336 |
) |
|
|
(8,050 |
) |
|
|
(9,372 |
) |
|
|
(11,640 |
) |
|
|
— |
|
|
|
(318,398 |
) |
Realized gain (loss) on investments |
|
1,805 |
|
|
|
7 |
|
|
|
56 |
|
|
|
121 |
|
|
|
— |
|
|
|
1,989 |
|
Net change in unrealized appreciation/(depreciation) |
|
(12,795 |
) |
|
|
(1,166 |
) |
|
|
(1,836 |
) |
|
|
(427 |
) |
|
|
499 |
|
|
|
(15,725 |
) |
Net accretion of discount and amortization of investments |
|
3,446 |
|
|
|
84 |
|
|
|
108 |
|
|
|
28 |
|
|
|
— |
|
|
|
3,666 |
|
Ending balance |
$ |
2,507,023 |
|
|
$ |
81,694 |
|
|
$ |
131,894 |
|
|
$ |
31,484 |
|
|
$ |
11,144 |
|
|
$ |
2,763,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,175,756 |
|
|
$ |
79,596 |
|
|
$ |
87,941 |
|
|
$ |
36,227 |
|
|
$ |
11,696 |
|
|
$ |
2,391,216 |
|
Purchases of investments, net |
|
339,411 |
|
|
|
1,960 |
|
|
|
15,744 |
|
|
|
2,238 |
|
|
|
13 |
|
|
|
359,366 |
|
Proceeds from sales and principal payments, net |
|
(239,793 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
- |
|
|
|
— |
|
|
|
(239,797 |
) |
Realized gain (loss) on investments |
|
2,547 |
|
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
2,548 |
|
Net change in unrealized appreciation/(depreciation) |
|
871 |
|
|
|
466 |
|
|
|
170 |
|
|
|
75 |
|
|
|
222 |
|
|
|
1,804 |
|
Net accretion of discount and amortization of investments |
|
5,143 |
|
|
|
61 |
|
|
|
116 |
|
|
|
44 |
|
|
|
— |
|
|
|
5,364 |
|
Transfers in (out) of Level 3 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Ending balance |
$ |
2,283,935 |
|
|
$ |
82,079 |
|
|
$ |
103,973 |
|
|
$ |
38,583 |
|
|
$ |
11,931 |
|
|
$ |
2,520,501 |
|
|
| Schedule of significant unobservable inputs |
The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of June 30, 2026. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Adviser’s determination of fair value.
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|
|
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|
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|
|
($ in thousands) |
|
June 30, 2026 |
Investments |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (weighted average) |
First Lien Loans |
|
$ |
2,050,419 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
5.3% - 16.0% (9.7%) |
|
First Lien Loans |
|
|
410,077 |
|
|
Market Transaction |
|
Market Transaction |
|
98.1% - 100% (99.2%) |
|
First Lien Loans |
|
|
46,527 |
|
|
Recovery Analysis |
|
Recovery Rate |
|
0.3x - 6.0x (3.0x) |
|
Second Lien Loans |
|
|
74,900 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.6% - 24.6% (13.6%) |
|
Second Lien Loans |
|
|
6,794 |
|
|
Market Transaction |
|
Market Transaction |
|
99.5% |
|
Unsecured Notes |
|
|
117,225 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.6% - 14.4% (12.2%) |
|
Unsecured Notes |
|
|
14,669 |
|
|
Market Transaction |
|
Market Transaction |
|
98.0% - 100% (98.2%) |
|
Preferred Equity |
|
|
26,611 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
13.1% - 15.1% (14.4%) |
|
Preferred Equity |
|
|
1,149 |
|
|
Market Transaction |
|
Market Transaction |
|
100.0% |
|
Preferred Equity |
|
|
3,724 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
12.5x - 17.3x (16.6x) |
|
Common Equity & Warrants |
|
|
11,144 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
7.3x - 21.0x (17.6x) |
|
Total |
|
$ |
2,763,239 |
|
|
|
|
|
|
|
|
The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2025. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Adviser’s determination of fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
December 31, 2025 |
Investments |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (weighted average) |
First Lien Loans |
|
$ |
1,991,420 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
5.5% - 15.4% (9.0%) |
|
|
First Lien Loans |
|
|
22,015 |
|
|
Recovery Analysis |
|
Recovery Rate |
|
5.8x |
|
|
First Lien Loans |
|
|
423,921 |
|
|
Market Transaction |
|
Market Transaction |
|
97.0% - 100.0% (99.2%) |
|
|
Second Lien Loan |
|
|
73,430 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.1% - 20.6% (12.1%) |
|
|
Unsecured Notes |
|
|
104,413 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
6.5% - 15.5% (11.6%) |
|
|
Unsecured Notes |
|
|
937 |
|
|
Market Transaction |
|
Market Transaction |
|
$ |
174.00 |
|
|
Unsecured Notes |
|
|
17,152 |
|
|
Market Transaction |
|
Market Transaction |
|
98.5% |
|
|
Preferred Equity |
|
|
36,224 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
13.1% - 14.9% (14.2%) |
|
|
Preferred Equity |
|
|
3,942 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
13.0x - 19.0x (18.2x) |
|
|
Common Equity & Warrants |
|
|
10,644 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
7.0x - 21.5x (17.0x) |
|
|
Total |
|
$ |
2,684,098 |
|
|
|
|
|
|
|
|
|
|