| Fair Value Measurements |
5.Fair Value Measurements In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 investments) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 investments). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 Financial assets and liabilities whose values reflect unadjusted quoted prices that are available in active markets for identical investments as of the reporting date. Level 2 Financial assets and liabilities whose values are based upon pricing inputs, including certain broker dealer quotes that are generally those other than exchange quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Level 3 Financial assets and liabilities whose values are based on pricing inputs that are unobservable for the investment and include situations where (i) there is minimal, if any, market activity for the investment, or (ii) the inputs used in the determination of fair value require significant management judgment or estimation. On December 14, 2023, the Board appointed the Advisor as the Company’s valuation designee in accordance with Rule 2a-5 under the 1940 Act. As the valuation designee, the Advisor determines fair values of the Company’s investments pursuant to a valuation policy approved by the Board and pursuant to a consistently applied valuation process. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant, individually or in the aggregate, to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Advisor. The Advisor considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Advisor’s perceived risk of that instrument. The valuation of investments classified within Level 3 of the fair value hierarchy is prepared on a quarterly basis and is subject to oversight and review. Each valuation is reviewed and approved by the Valuation & Allocation Committee which consists of senior members of the Advisor, including investment professionals and representatives from legal, compliance and finance. In connection with this process, valuation models are updated by the valuation team based on historical and projected financial information, observable market data, market liquidity and other factors and reviewed by the investment professionals. Valuation results are assessed in light of industry trends, general economic and market conditions and factors specific to each investment. The Advisor’s valuation team intends to engage third-party valuation firms to perform independent valuation reviews of certain modeled Level 3 valuations where there is significant management judgment or estimation. These reviews are generally performed twice annually, including one review at year end. The Advisor’s Valuation & Allocation Committee is ultimately responsible for coordinating and implementing the Company’s valuation policies, guidelines and processes on behalf of the Company. The following tables present the fair value hierarchy of cash and cash equivalents and investments as of September 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy as of September 30, 2026 |
|
($ in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
First lien senior secured debt investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,568,106 |
|
|
$ |
1,568,106 |
|
Second lien senior secured debt investments |
|
|
— |
|
|
|
— |
|
|
|
46,075 |
|
|
|
46,075 |
|
Unsecured debt investments |
|
|
— |
|
|
|
— |
|
|
|
83,067 |
|
|
|
83,067 |
|
Equity investments |
|
|
— |
|
|
|
|
|
|
2,000 |
|
|
|
2,000 |
|
U.S. treasury bill |
|
|
64,978 |
|
|
|
— |
|
|
|
— |
|
|
|
64,978 |
|
Total investments at fair value |
|
$ |
64,978 |
|
|
$ |
— |
|
|
$ |
1,699,248 |
|
|
$ |
1,764,226 |
|
Cash and cash equivalents |
|
$ |
23,752 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy as of December 31, 2025 |
|
($ in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
First lien senior secured debt investments |
|
$ |
— |
|
|
$ |
42,515 |
|
|
$ |
1,162,717 |
|
|
$ |
1,205,232 |
|
Second lien senior secured debt investments |
|
|
— |
|
|
|
— |
|
|
|
48,987 |
|
|
|
48,987 |
|
Unsecured debt investments |
|
|
— |
|
|
|
— |
|
|
|
79,786 |
|
|
|
79,786 |
|
U.S. treasury bill |
|
|
172,864 |
|
|
|
— |
|
|
|
— |
|
|
|
172,864 |
|
Total investments at fair value |
|
$ |
172,864 |
|
|
$ |
42,515 |
|
|
$ |
1,291,490 |
|
|
$ |
1,506,869 |
|
Cash and cash equivalents |
|
$ |
19,127 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,127 |
|
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 nine months ended September 30, 2026 and September 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2026 |
|
($ in thousands) |
|
First lien
senior secured
debt
investments |
|
|
Second lien
senior secured
debt
investments |
|
|
Unsecured debt investments |
|
|
Equity investments |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
1,383,321 |
|
|
$ |
46,605 |
|
|
$ |
82,021 |
|
|
$ |
— |
|
|
$ |
1,511,947 |
|
Purchases of investments |
|
|
266,761 |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
|
|
268,761 |
|
Payment-in-kind |
|
|
— |
|
|
|
— |
|
|
|
611 |
|
|
|
— |
|
|
|
611 |
|
Proceeds from investments |
|
|
(82,216 |
) |
|
|
(125 |
) |
|
|
— |
|
|
|
— |
|
|
|
(82,341 |
) |
Net change in unrealized gain (loss) |
|
|
(555 |
) |
|
|
(435 |
) |
|
|
377 |
|
|
|
— |
|
|
|
(613 |
) |
Net realized gains (losses) |
|
|
(24 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
Net amortization/accretion of premium/discount on
investments |
|
|
819 |
|
|
|
30 |
|
|
|
58 |
|
|
|
— |
|
|
|
907 |
|
Transfers between investment types |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value, end of period |
|
$ |
1,568,106 |
|
|
$ |
46,075 |
|
|
$ |
83,067 |
|
|
$ |
2,000 |
|
|
$ |
1,699,248 |
|
Net change in unrealized gain (loss) still
held at September 30, 2026 |
|
$ |
(554 |
) |
|
$ |
(435 |
) |
|
$ |
378 |
|
|
$ |
— |
|
|
$ |
(611 |
) |
(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three months ended September 30, 2026, there were no transfers into (out of) Level 3.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2025 |
|
($ in thousands) |
|
First lien
senior secured
debt
investments |
|
|
Second lien
senior secured
debt
investments |
|
|
Unsecured debt investments |
|
|
Equity investments |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
755,533 |
|
|
$ |
48,765 |
|
|
$ |
62,666 |
|
|
$ |
— |
|
|
$ |
866,964 |
|
Purchases of investments |
|
|
143,436 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
143,436 |
|
Payment-in-kind |
|
|
— |
|
|
|
— |
|
|
|
1,178 |
|
|
|
— |
|
|
|
1,178 |
|
Proceeds from investments |
|
|
(31,782 |
) |
|
|
(125 |
) |
|
|
— |
|
|
|
— |
|
|
|
(31,907 |
) |
Net change in unrealized gain (loss) |
|
|
326 |
|
|
|
422 |
|
|
|
533 |
|
|
|
— |
|
|
|
1,281 |
|
Net realized gains (losses) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net amortization/accretion of premium/discount on
investments |
|
|
804 |
|
|
|
23 |
|
|
|
43 |
|
|
|
— |
|
|
|
870 |
|
Transfers between investment types |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value, end of period |
|
$ |
868,317 |
|
|
$ |
49,085 |
|
|
$ |
64,420 |
|
|
$ |
— |
|
|
$ |
981,822 |
|
Net change in unrealized gain (loss) still
held at September 30, 2025 |
|
$ |
600 |
|
|
$ |
422 |
|
|
$ |
533 |
|
|
$ |
— |
|
|
$ |
1,555 |
|
(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three months ended September 30, 2025, there were no transfers into (out of) Level 3.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2026 |
|
($ in thousands) |
|
First lien
senior secured
debt
investments |
|
|
Second lien
senior secured
debt
investments |
|
|
Unsecured debt investments |
|
|
Equity investments |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
1,162,717 |
|
|
$ |
48,987 |
|
|
$ |
79,786 |
|
|
$ |
— |
|
|
$ |
1,291,490 |
|
Purchases of investments, net |
|
|
779,154 |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
|
|
781,154 |
|
Payment-in-kind |
|
|
— |
|
|
|
— |
|
|
|
2,542 |
|
|
|
— |
|
|
|
2,542 |
|
Proceeds from investments, net |
|
|
(371,344 |
) |
|
|
(2,491 |
) |
|
|
— |
|
|
|
— |
|
|
|
(373,835 |
) |
Net change in unrealized gain (loss) |
|
|
(7,885 |
) |
|
|
(582 |
) |
|
|
488 |
|
|
|
— |
|
|
|
(7,979 |
) |
Net realized gains (losses) |
|
|
(24 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
Net amortization/accretion of premium/discount on
investments |
|
|
5,488 |
|
|
|
161 |
|
|
|
251 |
|
|
|
— |
|
|
|
5,900 |
|
Transfers between investment types |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value, end of period |
|
$ |
1,568,106 |
|
|
$ |
46,075 |
|
|
$ |
83,067 |
|
|
$ |
2,000 |
|
|
$ |
1,699,248 |
|
Net change in unrealized gain (loss) still
held at September 30, 2026 |
|
$ |
(7,567 |
) |
|
$ |
(582 |
) |
|
$ |
488 |
|
|
$ |
— |
|
|
$ |
(7,661 |
) |
(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the nine months ended September 30, 2026, there were no transfers into (out of) Level 3.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2025 |
|
($ in thousands) |
|
First lien
senior secured
debt
investments |
|
|
Second lien
senior secured
debt
investments |
|
|
Unsecured debt investments |
|
|
Equity investments |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
395,206 |
|
|
$ |
49,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
444,206 |
|
Purchases of investments, net |
|
|
619,997 |
|
|
|
— |
|
|
|
62,291 |
|
|
|
— |
|
|
|
682,288 |
|
Payment-in-kind |
|
|
— |
|
|
|
— |
|
|
|
1,561 |
|
|
|
— |
|
|
|
1,561 |
|
Proceeds from investments, net |
|
|
(149,359 |
) |
|
|
(376 |
) |
|
|
— |
|
|
|
— |
|
|
|
(149,735 |
) |
Net change in unrealized gain (loss) |
|
|
73 |
|
|
|
351 |
|
|
|
500 |
|
|
|
— |
|
|
|
924 |
|
Net realized gains (losses) |
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Net amortization/accretion of premium/discount on
investments |
|
|
2,413 |
|
|
|
110 |
|
|
|
68 |
|
|
|
— |
|
|
|
2,591 |
|
Transfers between investment types |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value, end of period |
|
$ |
868,317 |
|
|
$ |
49,085 |
|
|
$ |
64,420 |
|
|
$ |
— |
|
|
$ |
981,822 |
|
Net change in unrealized gain (loss) still
held at September 30, 2025 |
|
$ |
556 |
|
|
$ |
351 |
|
|
$ |
500 |
|
|
$ |
— |
|
|
$ |
1,407 |
|
(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the nine months ended September 30, 2025, there were no transfers into (out of) Level 3. The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 assets as of September 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 Company’s determination of fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2026 |
|
|
|
|
|
|
|
|
|
Range |
|
|
($ in thousands) |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Low |
|
High |
|
Weighted Average |
First lien senior secured debt investments |
|
$ |
1,370,514 |
|
|
Yield Analysis |
|
Discount Rate |
|
9.7% |
|
17.1% |
|
11.4% |
First lien senior secured debt investments |
|
|
197,592 |
|
|
Recent Transaction |
|
Transaction Price |
|
98.3% |
|
98.8% |
|
98.5% |
Second lien senior secured debt investments |
|
|
46,075 |
|
|
Yield Analysis |
|
Discount Rate |
|
13.1% |
|
13.1% |
|
13.1% |
Unsecured debt investments |
|
|
83,067 |
|
|
Yield Analysis |
|
Discount Rate |
|
14.4% |
|
15.1% |
|
14.6% |
Equity |
|
|
2,000 |
|
|
Recent Transaction |
|
Transaction Price |
|
100.0% |
|
100.0% |
|
100.0% |
Total |
|
$ |
1,699,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
|
|
|
|
|
|
|
|
Range |
|
|
($ in thousands) |
|
Fair Value |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Low |
|
High |
|
Weighted Average |
First lien senior secured debt investments |
|
$ |
868,271 |
|
|
Yield Analysis |
|
Discount Rate |
|
8.8% |
|
11.2% |
|
9.7% |
First lien senior secured debt investments |
|
|
294,446 |
|
|
Recent Transaction |
|
Transaction Price |
|
98.0% |
|
99.3% |
|
98.5% |
Second lien senior secured debt investments |
|
|
48,987 |
|
|
Yield Analysis |
|
Discount Rate |
|
11.4% |
|
11.4% |
|
11.4% |
Unsecured debt investments |
|
|
65,086 |
|
|
Yield Analysis |
|
Discount Rate |
|
13.3% |
|
13.8% |
|
13.4% |
Unsecured debt investments |
|
|
14,700 |
|
|
Recent Transaction |
|
Transaction Price |
|
98.0% |
|
98.0% |
|
98.0% |
Total |
|
$ |
1,291,490 |
|
|
|
|
|
|
|
|
|
|
|
|