| Schedule of Fair Value of Investments |
The following table presents the fair value of investments as of September 30, 2026, disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First Lien Debt (1) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,052,225 |
|
|
$ |
2,052,225 |
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
881 |
|
|
|
881 |
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
598 |
|
|
|
598 |
|
L.P. Interest |
|
|
— |
|
|
|
— |
|
|
|
614 |
|
|
|
614 |
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,054,318 |
|
|
$ |
2,054,318 |
|
(1)First lien debt consists of first lien term loans, first lien, last-out term loans, second-out term loans, first lien delayed draw term loans and first lien revolvers. The following table presents the fair value of investments as of December 31, 2025, disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First Lien Debt (1) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,571,924 |
|
|
$ |
1,571,924 |
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
1,598 |
|
|
|
1,598 |
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
846 |
|
|
|
846 |
|
L.P. Interest |
|
|
— |
|
|
|
— |
|
|
|
533 |
|
|
|
533 |
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,574,901 |
|
|
$ |
1,574,901 |
|
(1)First lien debt consists of first lien term loans, first lien, last-out term loans, second-out term loans, first lien delayed draw term loans and first lien revolvers.
|
| Schedule of Changes in Fair Value of Investments |
The following tables present change for the three and nine months ended September 30, 2026 in the fair value of investments for which Level 3 inputs were used to determine fair value (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2026 |
|
|
|
First Lien Debt |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
L.P. Interest |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
1,904,089 |
|
|
$ |
596 |
|
|
$ |
1,125 |
|
|
$ |
590 |
|
|
$ |
1,906,400 |
|
Purchases of investments |
|
|
177,803 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
177,803 |
|
Proceeds from principal repayments and sales of investments |
|
|
(31,305 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(31,305 |
) |
Accretion of discount/amortization of premium |
|
|
879 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
879 |
|
Payment-in-kind interest and fees capitalized |
|
|
1,372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,372 |
|
Net realized gain (loss) on investments |
|
|
274 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
274 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(887 |
) |
|
|
2 |
|
|
|
(244 |
) |
|
|
24 |
|
|
|
(1,105 |
) |
Fair value, end of period |
|
$ |
2,052,225 |
|
|
$ |
598 |
|
|
$ |
881 |
|
|
$ |
614 |
|
|
$ |
2,054,318 |
|
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of September 30, 2026 |
|
$ |
(886 |
) |
|
$ |
2 |
|
|
$ |
(244 |
) |
|
$ |
24 |
|
|
$ |
(1,104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2026 |
|
|
|
First Lien Debt |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
L.P. Interest |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
1,571,924 |
|
|
$ |
846 |
|
|
$ |
1,598 |
|
|
$ |
533 |
|
|
$ |
1,574,901 |
|
Purchases of investments |
|
|
597,381 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
597,381 |
|
Proceeds from principal repayments and sales of investments |
|
|
(116,875 |
) |
|
|
(273 |
) |
|
|
— |
|
|
|
— |
|
|
|
(117,148 |
) |
Accretion of discount/amortization of premium |
|
|
2,522 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,522 |
|
Payment-in-kind interest and fees capitalized |
|
|
3,852 |
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
3,891 |
|
Net realized gain (loss) on investments |
|
|
939 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
943 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(7,518 |
) |
|
|
(18 |
) |
|
|
(717 |
) |
|
|
81 |
|
|
|
(8,172 |
) |
Fair value, end of period |
|
$ |
2,052,225 |
|
|
$ |
598 |
|
|
$ |
881 |
|
|
$ |
614 |
|
|
$ |
2,054,318 |
|
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of September 30, 2026 |
|
$ |
(7,041 |
) |
|
$ |
(18 |
) |
|
$ |
(717 |
) |
|
$ |
81 |
|
|
$ |
(7,695 |
) |
The following tables present change for the three and nine months ended September 30, 2025 in the fair value of investments for which Level 3 inputs were used to determine fair value (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2025 |
|
|
|
First Lien Debt |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
L.P. Interest |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
1,083,216 |
|
|
$ |
780 |
|
|
$ |
4,848 |
|
|
$ |
470 |
|
|
$ |
1,089,314 |
|
Purchases of investments |
|
|
249,939 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
249,939 |
|
Proceeds from principal repayments and sales of investments |
|
|
(5,368 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,368 |
) |
Accretion of discount/amortization of premium |
|
|
759 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
759 |
|
Payment-in-kind interest and fees capitalized |
|
|
438 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
438 |
|
Net realized gain (loss) on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net change in unrealized appreciation (depreciation) |
|
|
457 |
|
|
|
32 |
|
|
|
(2,620 |
) |
|
|
— |
|
|
|
(2,131 |
) |
Fair value, end of period |
|
$ |
1,329,441 |
|
|
$ |
812 |
|
|
$ |
2,228 |
|
|
$ |
470 |
|
|
$ |
1,332,951 |
|
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of September 30, 2025 |
|
$ |
457 |
|
|
$ |
32 |
|
|
$ |
(2,620 |
) |
|
$ |
— |
|
|
$ |
(2,131 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2025 |
|
|
|
First Lien Debt |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
L.P. Interest |
|
|
Total |
|
Fair value, beginning of period |
|
$ |
769,665 |
|
|
$ |
706 |
|
|
$ |
8,000 |
|
|
$ |
— |
|
|
$ |
778,371 |
|
Purchases of investments |
|
|
600,544 |
|
|
|
— |
|
|
|
— |
|
|
|
434 |
|
|
|
600,978 |
|
Proceeds from principal repayments and sales of investments |
|
|
(44,300 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(44,300 |
) |
Accretion of discount/amortization of premium |
|
|
1,903 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,903 |
|
Payment-in-kind interest and fees capitalized |
|
|
1,043 |
|
|
|
46 |
|
|
|
— |
|
|
|
— |
|
|
|
1,089 |
|
Net realized gain (loss) on investments |
|
|
525 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
525 |
|
Net change in unrealized appreciation (depreciation) |
|
|
61 |
|
|
|
60 |
|
|
|
(5,772 |
) |
|
|
36 |
|
|
|
(5,615 |
) |
Fair value, end of period |
|
$ |
1,329,441 |
|
|
$ |
812 |
|
|
$ |
2,228 |
|
|
$ |
470 |
|
|
$ |
1,332,951 |
|
Net change in unrealized appreciation (depreciation) related to financial instruments still held as of September 30, 2025 |
|
$ |
588 |
|
|
$ |
60 |
|
|
$ |
(5,772 |
) |
|
$ |
36 |
|
|
$ |
(5,088 |
) |
|
| Summary of Unobservable Inputs of the Company's Level 3 Financial Instruments |
The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
|
|
|
|
|
|
|
Range |
|
|
|
|
Fair Value
(in thousands) |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Low |
|
High |
|
Weighted
Average (1) |
Investments in First Lien Debt |
|
$ |
2,052,225 |
|
|
Yield analysis |
|
Discount rate |
|
7.0% |
|
17.0% |
|
9.6% |
Investments in Common Stock |
|
|
881 |
|
|
Market approach |
|
Transaction multiples |
|
12.2x |
|
12.2x |
|
12.2x |
|
|
|
|
|
Market approach |
|
Market comparables |
|
11.9x |
|
11.9x |
|
11.9x |
|
|
|
|
|
Discounted cash flows |
|
Discount rate |
|
15.7% |
|
15.7% |
|
15.7% |
Investments in Preferred Stock |
|
|
598 |
|
|
Yield analysis |
|
Discount rate |
|
9.1% |
|
9.1% |
|
9.1% |
Investments in L.P. Interest |
|
|
614 |
|
|
Market approach |
|
Transaction multiples |
|
14.9x |
|
14.9x |
|
14.9x |
|
|
|
|
|
Market approach |
|
Market comparables |
|
14.9x |
|
14.9x |
|
14.9x |
|
|
|
|
|
Discounted cash flows |
|
Discount rate |
|
14.6% |
|
14.6% |
|
14.6% |
|
|
$ |
2,054,318 |
|
|
|
|
|
|
|
|
|
|
|
(1)Weighted averages are calculated based on fair value of investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
Range |
|
|
|
|
Fair Value
(in thousands) |
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Low |
|
High |
|
Weighted
Average (1) |
Investments in First Lien Debt |
|
$ |
1,571,924 |
|
|
Yield analysis |
|
Discount rate |
|
4.9% |
|
12.5% |
|
8.3% |
Investments in Common Stock |
|
|
1,598 |
|
|
Market approach |
|
Transaction multiples |
|
12.2x |
|
12.2x |
|
12.2x |
|
|
|
|
|
Market approach |
|
Market comparables |
|
13.5x |
|
13.5x |
|
13.5x |
|
|
|
|
|
Discounted cash flows |
|
Discount rate |
|
15.6% |
|
15.6% |
|
15.6% |
Investments in Preferred Stock |
|
|
846 |
|
|
Yield analysis |
|
Discount rate |
|
9.4% |
|
9.4% |
|
9.4% |
Investments in L.P. Interest |
|
|
533 |
|
|
Market approach |
|
Transaction multiples |
|
14.9x |
|
14.9x |
|
14.9x |
|
|
|
|
|
Market approach |
|
Market comparables |
|
17.6x |
|
17.6x |
|
17.6x |
|
|
|
|
|
Discounted cash flows |
|
Discount rate |
|
15.3% |
|
15.3% |
|
15.3% |
|
|
$ |
1,574,901 |
|
|
|
|
|
|
|
|
|
|
|
(1)Weighted averages are calculated based on fair value of investments.
|