v3.26.3
INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investments
As of September 30, 2026 and December 31, 2025, investments consisted of the following:

As of
September 30, 2026December 31, 2025
Amortized Cost(1)Fair ValueAmortized Cost(1)Fair Value
First lien senior secured loans(2)$17,426 $16,871 $18,103 $17,858 
Second lien senior secured loans1,301 1,172 1,558 1,487 
Subordinated certificates of the SDLP(3)1,140 1,153 1,103 1,117 
Senior subordinated loans1,991 1,915 1,690 1,585 
Preferred equity2,672 2,440 2,597 2,475 
Ivy Hill Asset Management, L.P.(4)2,886 3,066 2,231 2,434 
Other equity2,062 2,596 1,968 2,529 
Total$29,478 $29,213 $29,250 $29,485 
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(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
    
(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $13,615 and $13,289 respectively, as of September 30, 2026, and $11,349 and $11,239, respectively, as of December 31, 2025.

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 73 and 39 different borrowers as of September 30, 2026 and December 31, 2025, respectively.

(4)Includes the Company’s subordinated loan to and equity investments in IHAM (as defined below), as applicable.
The Company uses the Global Industry Classification Standard for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of September 30, 2026 and December 31, 2025 were as follows:

As of
September 30, 2026December 31, 2025
Industry
Software and Services21.6 %23.8 %
Financial Services(1)14.6 12.4 
Health Care Equipment and Services10.1 11.3 
Commercial and Professional Services9.4 9.4 
Consumer Services6.2 5.6 
Insurance5.6 5.2 
Consumer Distribution and Retail4.8 4.8 
Capital Goods4.5 4.6 
Investment Funds and Vehicles(2)4.1 3.9 
Sports, Media and Entertainment3.9 4.0 
Pharmaceuticals, Biotechnology and Life Sciences2.4 2.7 
Materials2.3 2.2 
Consumer Durables and Apparel2.0 2.0 
Independent Power and Renewable Electricity Producers1.6 2.2 
Food and Beverage1.1 1.1 
Other5.8 4.8 
Total100.0 %100.0 %
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(1)Includes the Company’s investment in IHAM.

(2)Includes the Company’s investment in the SDLP (as defined below), which made first lien senior secured loans to 73 and 39 different borrowers as of September 30, 2026 and December 31, 2025, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.

As of
September 30, 2026December 31, 2025
Geographic Region
Midwest23.1 %22.9 %
West(1)20.7 20.3 
Northeast(2)18.1 15.1 
Southeast16.3 18.8 
Mid-Atlantic14.9 16.3 
International6.9 6.6 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in the SDLP, which represented 3.9% and 3.8% of the total investment portfolio at fair value as of September 30, 2026 and December 31, 2025, respectively.

(2)Includes the Company’s investment in IHAM, which represented 10.4% and 8.3% of the total investment portfolio at fair value as of September 30, 2026 and December 31, 2025, respectively.
The amortized cost and fair value of the Company’s investment in IHAM as of September 30, 2026 and December 31, 2025 were as follows:
As of
September 30, 2026December 31, 2025
Amortized CostFair ValueAmortized CostFair Value
Subordinated loan(1)
$1,000 $1,000 $531 $531 
Equity
1,886 2,066 1,700 1,903 
Total investment in IHAM$2,886 $3,066 $2,231 $2,434 
_______________________________________________________________________________

(1)The Company has provided a commitment to fund up to $1,000 and $750, as of September 30, 2026 and December 31, 2025, respectively, to IHAM, with availability of funding solely at the Company’s discretion.
Below is a summary of the SDLP portfolio as of September 30, 2026 and December 31, 2025.
As of
September 30, 2026December 31, 2025
Total first lien senior secured loans(1)(2)$4,671 $4,297 
Largest loan to a single borrower(1)$373 $413 
Total of five largest loans to borrowers(1)$1,627 $1,719 
Number of borrowers in the SDLP73 39 
Commitments to fund delayed draw loans(3)$195 $259 
___________________________________________________________________________

(1)At principal amount.

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of September 30, 2026 and December 31, 2025, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $3,399 and $2,844, respectively.
(3)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
Schedule of Dividend and Interest Income
The interest income and dividend income that the Company earned from IHAM for the three and nine months ended September 30, 2026 and 2025 were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Interest income
$24 $1 $60 $2 
Dividend income
$84 $73 $238 $219 
The interest income, capital structuring service fees and other income earned with respect to the Company’s investment in the SDLP Certificates for the three and nine months ended September 30, 2026 and 2025 were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Interest income
$38 $34 $112 $110 
Capital structuring service fees and other income
$2 $2 $7 $7 
Schedule of Funded Capital and Unfunded Capital Commitments of the SDLP
The yields at amortized cost and fair value of the Company’s investments in IHAM as of September 30, 2026 and December 31, 2025 were as follows:
As of
September 30, 2026December 31, 2025
Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
10.2 %10.2 %10.3 %10.3 %
Equity(1)
17.8 %16.3 %17.2 %15.3 %
_______________________________________________________________________________

(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the regular dividend received by the Company related to the Company’s equity investment in IHAM during the
most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.
Below is a summary of the funded capital and unfunded capital commitments of the SDLP.
As of
September 30, 2026December 31, 2025
Total capital funded to the SDLP(1)$4,800 $4,606 
Total capital funded to the SDLP by the Company(1)$1,321 $1,285 
Total unfunded capital commitments to the SDLP(2)$195 $259 
Total unfunded capital commitments to the SDLP by the Company(2)$45 $60 
___________________________________________________________________________
(1)At principal amount.

(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
The amortized cost and fair value of the SDLP Certificates held by the Company and the Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of September 30, 2026 and December 31, 2025 were as follows:

As of
September 30, 2026December 31, 2025
Amortized CostFair ValueAmortized CostFair Value
Investment in the SDLP Certificates$1,140 $1,153 $1,103 $1,117 
Yield on the investment in the SDLP Certificates13.1 %13.0 %13.2 %13.0 %
Schedule of Selected Financial Information As a result, the Company believes an assessment of IHAM’s business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.
As of September 30, 2026
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$3,720 $13,824 $(3,634)$13,910 
Cash and cash equivalents10 679 — 689 
Other assets67 139 (59)147 
Total assets$3,797 $14,642 $(3,693)$14,746 
Liabilities
Debt$894 $10,652 $— $11,546 
Subordinated note from ARCC1,000 — — 1,000 
Subordinated notes(3)— 2,419 (2,086)333 
Other liabilities18 198 (28)188 
Total liabilities1,912 13,269 (2,114)13,067 
Equity
Contributed capital1,886 — — 1,886 
Accumulated earnings143 — — 143 
Net unrealized losses on investments and foreign currency transactions(4) (144)— — (144)
Non-controlling interests in Consolidated IHAM Vehicles(5)
— 1,373 (1,579)(206)
Total equity1,885 1,373 (1,579)1,679 
Total liabilities and equity$3,797 $14,642 $(3,693)$14,746 

As of December 31, 2025
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$3,108 $11,504 $(3,013)$11,599 
Cash and cash equivalents10 597 — 607 
Other assets93 146 (82)157 
Total assets$3,211 $12,247 $(3,095)$12,363 
Liabilities
Debt$893 $8,622 $— $9,515 
Subordinated note from ARCC531 — — 531 
Subordinated notes(3)— 1,277 (941)336 
Other liabilities21 311 (18)314 
Total liabilities1,445 10,210 (959)10,696 
Equity
Contributed capital1,700 — — 1,700 
Accumulated earnings148 — — 148 
Net unrealized losses on investments and foreign currency transactions(4)(82)— — (82)
Non-controlling interests in Consolidated IHAM Vehicles(5)
— 2,037 (2,136)(99)
Total equity1,766 2,037 (2,136)1,667 
Total liabilities and equity$3,211 $12,247 $(3,095)$12,363 
________________________________________
(1)Consolidated for GAAP purposes only.

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of September 30, 2026 and December 31, 2025 was $3,863 and $3,190, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of September 30, 2026 and December 31, 2025 was $14,247 and $11,766, respectively.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(4)As of September 30, 2026 and December 31, 2025, net unrealized losses of $139 and $85, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $336 and $167 as of September 30, 2026 and December 31, 2025, respectively.

For the Three Months Ended September 30, 2026
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$110 $294 $(104)$300 
Management fees and other income16 2 (16)2 
Total revenues126 296 (120)302 
Expenses
Interest expense40 139 — 179 
Distributions to subordinated notes— 45 (30)15 
Management fees and other expenses4 26 (16)14 
Total expenses44 210 (46)208 
Net operating income82 86 (74)94 
Net realized losses on investments, foreign currency and other transactions— (1)— (1)
Net unrealized gains (losses) on investments, foreign currency and other transactions(26)2 13 (11)
Total net realized and unrealized gains (losses) on investments, foreign currency and other transactions(26)1 13 (12)
Net income56 87 (61)82 
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles— 87 (61)26 
Net income attributable to Ivy Hill Asset Management, L.P.$56 $— $— $56 
For the Nine Months Ended September 30, 2026
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$309 $810 $(298)$821 
Management fees and other income46 6 (45)7 
Total revenues355 816 (343)828 
Expenses
Interest expense108 409 — 517 
Distributions to subordinated notes— 131 (92)39 
Management fees and other expenses13 61 (45)29 
Total expenses121 601 (137)585 
Net operating income234 215 (206)243 
Net realized losses on investments, foreign currency and other transactions(1)(17)— (18)
Net unrealized losses on investments, foreign currency and other transactions (62)(148)53 (157)
Total net realized and unrealized losses on investments, foreign currency and other transactions (63)(165)53 (175)
Net income171 50 (153)68 
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles— 50 (153)(103)
Net income attributable to Ivy Hill Asset Management, L.P.$171 $— $— $171 

For the Three Months Ended September 30, 2025
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$84 $238 $(82)$240 
Management fees and other income15 2 (14)3 
Total revenues99 240 (96)243 
Expenses
Interest expense18 124 — 142 
Distributions to subordinated notes— 97 (84)13 
Management fees and other expenses4 16 (14)6 
Total expenses22 237 (98)161 
Net operating income77 3 2 82 
Net realized gains (losses) on investments and foreign currency2 (27)(3)(28)
Net realized loss on extinguishment of debt— (2)— (2)
Net unrealized gains (losses) on investments, foreign currency and other transactions(13)11 13 11 
Total net realized and unrealized losses on investments, foreign currency and other transactions (11)(18)10 (19)
Net income (loss)66 (15)12 63 
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles— (15)12 (3)
Net income attributable to Ivy Hill Asset Management, L.P.$66 $— $— $66 
For the Nine Months Ended September 30, 2025
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$228 $687 $(223)$692 
Management fees and other income39 6 (37)8 
Total revenues267 693 (260)700 
Expenses
Interest expense41 362 — 403 
Distributions to subordinated notes— 161 (130)31 
Management fees and other expenses12 44 (37)19 
Total expenses53 567 (167)453 
Net operating income214 126 (93)247 
Net realized losses on investments and foreign currency (29)(83)18 (94)
Net realized gains (losses) on extinguishment of debt— 20 (23)(3)
Net unrealized gains (losses) on investments, foreign currency and other transactions31 (8)(8)15 
Total net realized and unrealized gains (losses) on investments, foreign currency and other transactions2 (71)(13)(82)
Net income216 55 (106)165 
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles— 55 (106)(51)
Net income attributable to Ivy Hill Asset Management, L.P.$216 $— $— $216 
____________________________________

(1)Consolidated for GAAP purposes only.