v3.26.1
Fair Value Measurement
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 5. Fair Value Measurement

 

The following tables present the fair value hierarchy of investments (excluding cash equivalents) as of June 30, 2026, and December 31, 2025, categorized by the ASC 820 valuation hierarchy, as previously described:

 

                    
   June 30, 2026 
   Level 1   Level 2   Level 3   Total 
Asset Backed Securities  $—   $—   $25,760   $25,760 
Senior Secured Debt   —    —    486,556    486,556 
Common Equity   —    —    125    125 
Preferred Equity   —    —    1,190    1,190 
Partnership   —    —    6,940    6,940 
Total  $—   $—   $520,571   $520,571 

 

   December 31, 2025 
   Level 1   Level 2   Level 3   Total 
Asset Backed Securities  $—   $—   $10,047   $10,047 
Senior Secured Debt   —    —    433,567    433,567 
Preferred Equity   —    —    7,368    7,368 
Partnership   —    —    7,364    7,364 
Total  $—   $—   $458,346   $458,346 

 

The following tables present the change in the fair value of financial instruments for the three and six months ended June 30, 2026, and June 30, 2025, for which Level 3 inputs were used to determine the fair value:

 

                              
For the Three Months Ended
June 30, 2026		  Asset Backed Securities   Senior Secured Debt   Preferred Equity   Common
Equity		   Partnership   Total Investments 
Fair value, beginning of period  $25,715   $443,011   $7,554   $—   $7,003   $483,283 
Purchases, including capitalized PIK   —    39,774    142    125    —    40,041 
Proceeds from sales of investments and principal repayments   —    4,191    (6,435)   —    (63)   (2,307)
Accretion of discount/amortization of premium   (1)   236    —    —    —    235 
Net realized gain (loss)   —    17    10    —    —    27 
Net change in unrealized appreciation (depreciation)   46    (673)   (81)   —    —    (708)
Transfers into Level 3 (1)   —    —    —    —    —    — 
Transfers out of Level 3 (1)   —    —    —    —    —    — 
Fair value, end of period  $25,760   $486,556   $1,190   $125   $6,940   $520,571 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2026  $46   $(562)  $(11)  $—   $—   $(527)

 

                               
For the Six Months Ended
June 30, 2026		  Asset Backed Securities   Senior Secured Debt   Preferred Equity   Common
Equity		   Partnership   Total Investments 
Fair value, beginning of period  $10,047   $433,567   $7,368   $—   $7,364   $458,346 
Purchases, including capitalized PIK   18,861    68,908    328    125    —    88,222 
Proceeds from sales of investments and principal repayments   (3,328)   (11,069)   (6,435)   —    (330)   (21,162)
Accretion of discount/amortization of premium   (2)   579    —    —    —    577 
Net realized gain (loss)   (3)   64    10    —    —    71 
Net change in unrealized appreciation (depreciation)   185    (5,493)   (81)   —    (94)   (5,483)
Transfers into Level 3 (1)   —    —    —    —    —    — 
Transfers out of Level 3 (1)   —    —    —    —    —    — 
Fair value, end of period  $25,760   $486,556   $1,190   $125   $6,940   $520,571 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2026  $185   $(5,270)  $(11)  $—   $(94)  $(5,190)

 

(1)For the three and six months ended June 30, 2026, there were no transfers into or out of Level 3.

 

                
For the Three Months Ended June 30, 2025  Senior Secured Debt   Preferred Equity   Total Investments 
Fair value, beginning of period  $341,545   $1,371   $342,916 
Purchases, including capitalized PIK   62,148    144    62,292 
Proceeds from sales of investments and principal repayments   (2,233)   —    (2,233)
Accretion of discount/amortization of premium   218    —    218 
Net realized gain (loss)   16    —    16 
Net change in unrealized appreciation (depreciation)   (461)   (1)   (462)
Transfers into Level 3 (1)   —    —    — 
Transfers out of Level 3 (1)   —    —    — 
Fair value, end of period  $401,233   $1,514   $402,747 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2025  $(461)  $(1)  $(462)

 

                
For the Six Months Ended June 30, 2025  Senior Secured Debt   Preferred Equity   Total Investments 
Fair value, beginning of period  $327,122   $1,343   $328,465 
Purchases, including capitalized PIK   91,620    144    91,764 
Proceeds from sales of investments and principal repayments   (17,648)   —    (17,648)
Accretion of discount/amortization of premium   687    —    687 
Net realized gain (loss)   55    —    55 
Net change in unrealized appreciation (depreciation)   (603)   27    (576)
Transfers into Level 3 (1)   —    —    — 
Transfers out of Level 3 (1)   —    —    — 
Fair value, end of period  $401,233   $1,514   $402,747 
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of June 30, 2025  $(603)  $27   $(576)

 

(1)For the three and six months ended June 30, 2025, there were no transfers into or out of Level 3.

 

In accordance with ASC 820, the following tables provide quantitative information about the significant unobservable inputs of the Fund’s Level 3 investments as of June 30, 2026, and December 31, 2025. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Fund’s determination of fair value.

 

                          
   June 30, 2026 
   Fair Value   Valuation Technique 

Unobservable

Input

  Range from   Range to   Weighted Average(1) 
Asset Backed Securities  $25,760   Reported fair value  Reported fair value   N/A    N/A    N/A 
Senior Secured Debt   341,917   Discounted cash flow  Discount factor   8.32%   20.57%   10.24%
    (17)  Market comparable companies  Enterprise value to EBITDA multiple   17.30x   17.30x   17.30x
    138,844   Broker Quotes  Indicative quotes for an inactive market   N/A    N/A    N/A 
    5,812   Recent financing/transaction  Recent transaction price   N/A    N/A    N/A 
Common Equity   125   Recent financing/transaction  Recent transaction price   N/A    N/A    N/A 
Preferred Equity   1,190   Discounted cash flow  Discount factor   13.19%   13.19%   13.19%
Partnership   6,940   Adjusted reported net asset value  Reported net asset value   

N/A

    

N/A

    

N/A

 
Total  $520,571                      

 

   December 31, 2025 
   Fair Value   Valuation Technique 

Unobservable

Input

  Range from   Range to   Weighted Average(1) 
Asset Backed Securities  $10,047   Reported fair value  Reported fair value   N/A    N/A    N/A 
Senior Secured Debt   315,113   Discounted cash flow  Discount factor   7.87%   14.56%   9.35%
    118,296   Broker Quotes  Indicative quotes for an inactive market   N/A    N/A    N/A 
    158   Recent financing/transaction  Recent transaction price   N/A    N/A    N/A 
Preferred Equity   7,368   Discounted cash flow  Discount factor   12.52%   13.76%   13.48%
 Partnership   7,364   Adjusted reported net asset value  Reported net asset value   N/A    N/A    N/A 
Total  $458,346                      

 

(1)Weighted averages are calculated based on fair value of investments.

 

The Fund used the income approach to determine the fair value of certain Level 3 assets as of June 30, 2026, and December 31, 2025. The significant unobservable inputs used in the income approach are the comparative yield and discount rate. The comparative yield and discount rate is used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield or discount rate would result in a decrease/increase, respectively, in the fair value.

 

Financial Instruments Disclosed, But Not Carried, At Fair Value

 

The carrying values of the debt obligations (Note 6) generally approximate their respective fair values due to their variable interest rates. The fair value of these debt obligations would be categorized as Level 2 under the ASC 820 hierarchy. The carrying value of other financial assets and liabilities approximates their fair value based on the short-term nature of these items.