v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Measurements  
Fair Value Measurements

Note 5. Fair Value Measurements

The following tables summarize the Company’s investments, measured at fair value by the fair value hierarchy levels, as of June 30, 2026 and December 31, 2025.

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​

​

​

​

​

​

​

​

​

​

​

(In thousands)

  ​ ​ ​

As of June 30, 2026

Assets

​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Debt Investments

​

$

—

​

$

—

​

$

417,172

​

$

417,172

Cash Equivalents

​

​

5,997

​

​

—

​

​

—

​

​

5,997

Equity Investment (1)

​

​

—

​

​

—

​

​

—

​

​

34,617

Total

​

$

5,997

​

$

—

​

$

417,172

​

$

457,786

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

  ​ ​ ​

As of December 31, 2025

Assets

​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Debt Investments

​

$

—

​

$

—

​

$

316,015

​

$

316,015

Cash Equivalents

​

​

17,082

​

​

—

​

​

—

​

​

17,082

Total

​

$

17,082

​

$

—

​

$

316,015

​

$

333,097

​

(1)In accordance with U.S. GAAP, certain investments are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and are not categorized within the fair value hierarchy as per ASC 820. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying Consolidated Statements of Assets and Liabilities.

Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. For the three and six months  ended June 30, 2026 and 2025, there were no transfers between levels.

The following tables present a summary of changes in fair value of Level 3 assets by investment type for the six months ended June 30, 2026 and 2025:

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  ​ ​ ​

Debt

  ​ ​ ​

​

​

(In thousands)

​

Investments

  ​ ​ ​

Total

Fair Value as of December 31, 2025

​

$

316,015

​

$

316,015

Purchases

​

 

251,447

​

 

251,447

Accretion of discount and fees (amortization of premium), net

​

 

834

​

 

834

Proceeds from sales and principal repayments of investments(1)

​

 

(150,512)

​

 

(150,512)

Net realized gain (loss) on investments

​

​

69

​

 

69

Accretion of paid-in-kind interest

​

 

73

​

 

73

Net change in unrealized appreciation (depreciation) from non-controlled non-affiliated investments

​

 

(754)

​

​

(754)

Balance as of June 30, 2026

​

$

417,172

​

$

417,172

Net unrealized gain (loss) on Level 3 investments still held as of June 30, 2026

​

$

(772)

​

$

(772)

(1)Includes $30.4 million of investments exchanged in-kind related to the Company's investment in the Rated JV.  Refer to Note 4 – Investments for additional information.

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  ​ ​ ​

Debt

  ​ ​ ​

​

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(In thousands)

​

Investments

  ​ ​ ​

Total

Fair Value as of December 31, 2024

​

$

91,188

​

$

91,188

Purchases

​

 

55,381

​

 

55,381

Accretion of discount and fees (amortization of premium), net

​

 

177

​

 

177

Proceeds from principal repayments

​

 

(7,836)

​

 

(7,836)

Net change in unrealized appreciation (depreciation) from non-controlled non-affiliated investments

​

 

(298)

​

​

(298)

Balance as of June 30, 2025

​

$

138,612

​

$

138,612

Net change in unrealized appreciation (depreciation) on Level 3 investments still held as of June 30, 2025

​

$

(293)

​

$

(293)

​

The Company generally uses the following framework when determining the fair value of investments that are categorized as Level 3:

The fair value of the Company’s investment portfolio for which market quotations are not readily available is determined by the Adviser’s valuation committee, subject to oversight by the Board, consistent with the Valuation Policy. In connection with that determination, investment valuations will be prepared using ranges of valuations obtained from independent valuation firms, and/or proprietary models depending on the materiality of the investments, the availability of information on the Company’s investments and the type of investment being valued, all in accordance with the Valuation Policy.

Determination of fair value involves subjective judgments and estimates. As part of the valuation process, the factors that may be taken into account in determining the fair value of the Company’s investments, include, as relevant: the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company’s debt and equity), the nature and realizable value of any collateral, the portfolio company’s ability to make payments based on its earnings and cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, and overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Adviser’s valuation committee will consider whether the pricing indicated by the external event corroborates its valuation.

Investments in debt securities are initially evaluated to determine whether the enterprise value of the portfolio company is greater than the applicable debt. The enterprise value of the portfolio company is estimated using a market approach and an income approach. The market approach utilizes market value (EBITDA) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The Adviser carefully considers numerous factors when selecting the appropriate companies whose multiples are used to value the Company’s portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors, as well as size, profitability and growth expectations. The income approach typically uses a discounted cash flow analysis of the portfolio company.

Investments in debt securities that do not have sufficient coverage through the enterprise value analysis are valued based on an expected probability of default and discount recovery analysis.

Investments in debt securities with sufficient coverage through the enterprise value analysis are generally valued using a discounted cash flow “yield analysis” of the underlying security. Projected cash flows in the discounted cash flow typically represent the relevant security’s contractual interest, fees and principal payments plus the assumption of full principal recovery at the security’s expected maturity date.

The following tables summarize the quantitative information related to the significant unobservable inputs for Level 3 instruments which are carried at fair value as of June 30, 2026 and December 31, 2025:

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(In thousands)

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Fair Value as of

​

Valuation Techniques/

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Unobservable

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Range

​

Weighted

​

Investment Type

​

June 30, 2026

  ​ ​ ​

Methodologies

  ​ ​ ​

Input

  ​ ​ ​

Low

  ​ ​ ​

High

  ​ ​ ​

Average (1)

 

First Lien Loans

​

$

143,042

 

Recent Transaction

 

Transaction Price

 

97.99

%  

99.76

%  

98.89

%

​

​

 

274,130

 

Income - Yield Analysis

 

Discount Rate

 

8.50

%  

16.14

%  

10.25

%

Total

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$

417,172

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

​

(1)The weighted average is calculated based on the fair value of each investment.

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Valuation

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  ​ ​ ​

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(In thousands)

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Fair Value as of

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Techniques/

​

Unobservable

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Range

​

Weighted

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Investment Type

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December 31, 2025(1)

  ​ ​ ​

Methodologies

  ​ ​ ​

Input

  ​ ​ ​

Low

  ​ ​ ​

High

  ​ ​ ​

Average (1)

 

First Lien Loans

​

$

42,366

 

Recent Transaction

 

Transaction Price

 

98.50

%  

99.88

%  

99.41

%

​

​

 

273,649

 

Income - Yield Analysis

 

Discount Rate

 

8.25

%  

15.20

%  

10.02

%

Total

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$

316,015

 

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  ​

 

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(1)The weighted average is calculated based on the fair value of each investment.

The significant unobservable inputs used in the fair value measurement of the Company’s investments in first lien term loans are discount rates and transaction prices. Significant increases in discount rates in isolation would result in a significantly lower fair value measurement.

The carrying value of other financial assets and liabilities approximates their fair value based on the short-term nature of these items.