v3.25.4
Tax Information
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Tax Information

11. TAX INFORMATION

The tax character of distributions was as follows:

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Distributions paid from:

 

 

 

 

 

 

 

 

 

Ordinary Income

 

$

216,756

 

 

$

208,488

 

 

$

197,124

 

Net Long-Term Capital Gains

 

 

—

 

 

 

—

 

 

 

—

 

Total Taxable Distributions

 

$

216,756

 

 

$

208,488

 

 

$

197,124

 

The components of Accumulated Earnings (Losses) on a tax basis were as follows:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Undistributed Ordinary Income—net

 

$

108,725

 

 

$

152,038

 

 

$

118,026

 

Undistributed Long-Term Capital Gains

 

 

—

 

 

 

—

 

 

 

—

 

Total Undistributed Earnings

 

$

108,725

 

 

$

152,038

 

 

$

118,026

 

Capital Loss Carryforward (1):

 

 

 

 

 

 

 

 

 

Perpetual Long-Term

 

$

(318,245

)

 

$

(297,091

)

 

$

(138,282

)

Perpetual Short-Term

 

 

(100,239

)

 

 

(29,987

)

 

 

(12,358

)

Total capital loss carryforwards

 

$

(418,484

)

 

$

(327,078

)

 

$

(150,640

)

Timing Differences (Organizational Costs, Post-October Capital Loss Deferral and Late Year Ordinary Loss Deferral)

 

 

(2,216

)

 

 

(24,198

)

 

 

(50,451

)

Unrealized Earnings (Losses)—net

 

 

(144,720

)

 

 

(174,432

)

 

 

(141,514

)

Total Accumulated Earnings (Losses)—net

 

$

(456,695

)

 

$

(373,670

)

 

$

(224,579

)

(1)
For the years ended December 31, 2025, 2024 and 2023 the Company did not utilize any capital losses.

The Company's ability to utilize its capital loss carryforwards is subject to an annual limitation under section 382 of the Code.

The Company’s aggregate unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes were as follows:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Tax cost

 

$

3,439,934

 

 

$

3,677,186

 

 

$

3,555,001

 

Gross unrealized appreciation

 

 

28,055

 

 

 

36,583

 

 

 

24,511

 

Gross unrealized depreciation

 

 

(172,775

)

 

 

(211,015

)

 

 

(166,025

)

Net unrealized investment appreciation (depreciation) on investments

 

$

(144,720

)

 

$

(174,432

)

 

$

(141,514

)

The difference between GAAP-basis and tax basis unrealized gains (losses) is attributable primarily to wash sales, differences in the tax treatment of underlying fund investments, partnership investments, material modification of debt securities, unrealized appreciation (depreciation) on derivatives and changes in the fair value of the hedged liabilities attributable to the risk being hedged.

In order to present certain components of the Company’s capital accounts on a tax-basis, certain reclassifications have been recorded to the Company’s accounts. These reclassifications have no impact on the net asset value of the Company and result primarily from certain non-deductible expenses, and differences in the tax treatment of underlying fund investments. For the year ended December 31, 2025, the Company reclassified $14,464 from paid-in capital in excess of par to distributable earnings. For the years ended December 31, 2024 and 2023, the Company reclassified $3,470 and $17,127 from total distributable earnings to paid-in capital in excess of par, respectively.

The following reconciles net increase in net assets resulting from operations to taxable income:

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net increase in net assets resulting from operations

 

$

119,267

 

 

$

62,867

 

 

$

195,874

 

Adjustments:

 

 

 

 

 

 

 

 

 

Net unrealized loss (gain) on investments and foreign currency forward contracts and translations

 

 

(60,390

)

 

 

35,762

 

 

 

(21,214

)

Income not currently taxable

 

 

10,358

 

 

 

(9,259

)

 

 

(23,098

)

Income for tax but not book

 

 

82

 

 

 

726

 

 

 

484

 

Expenses not currently deductible

 

 

4,111

 

 

 

5,791

 

 

 

5,970

 

Expenses for tax but not for book

 

 

(282

)

 

 

(68

)

 

 

(1,131

)

Realized gain(loss) differences

 

 

(318,188

)

 

 

(180,396

)

 

 

(79,145

)

Taxable income net of capital loss carryforward

 

$

(245,042

)

 

$

(84,577

)

 

$

77,740

 

Capital loss carryforward

 

 

418,484

 

 

 

327,078

 

 

 

150,640

 

Taxable income (1)

 

$

173,442

 

 

$

242,501

 

 

$

228,380

 

(1)
Taxable income is an estimate and is not fully determined until the Company’s tax return is filed.

ASC Topic 740, “Accounting for Uncertainty in Income Taxes” (“ASC 740”) provides guidance on the accounting for and disclosure of uncertainty in tax position. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Based on its analysis of its tax position for all open tax years (the current and prior years, as applicable), the Company has concluded that it does not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740. Such open tax years remain subject to examination and adjustment by tax authorities.