Fair Value Measurements (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
Jun. 30, 2025 |
| Fair Value Disclosures [Abstract] |
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| Schedule of Fair Value Measurements of Investments by Major Class According to Fair Value Hierarchy |
The following tables present fair value measurements of investments by major class according to the fair value hierarchy:
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June 30, 2026 |
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Level 1 |
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Level 2 |
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Level 3 |
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|
Total |
|
First Lien Debt |
$ |
|
— |
|
$ |
|
— |
|
$ |
|
1,133,579 |
|
$ |
|
1,133,579 |
|
Second Lien Debt |
|
|
— |
|
|
|
— |
|
|
|
70,562 |
|
|
|
70,562 |
|
Subordinated Debt |
|
|
— |
|
|
|
— |
|
|
|
81,605 |
|
|
|
81,605 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
147,165 |
|
|
|
147,165 |
|
Warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Money Market Funds |
|
|
37,547 |
|
|
|
— |
|
|
|
— |
|
|
|
37,547 |
|
Total |
$ |
|
37,547 |
|
$ |
|
— |
|
$ |
|
1,432,911 |
|
$ |
|
1,470,458 |
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
|
First Lien Debt |
$ |
|
— |
|
$ |
|
— |
|
$ |
|
1,019,063 |
|
$ |
|
1,019,063 |
|
Second Lien Debt |
|
|
— |
|
|
|
— |
|
|
|
68,929 |
|
|
|
68,929 |
|
Subordinated Debt |
|
|
— |
|
|
|
— |
|
|
|
94,412 |
|
|
|
94,412 |
|
Equity |
|
|
— |
|
|
|
— |
|
|
|
142,111 |
|
|
|
142,111 |
|
Warrants |
|
|
— |
|
|
|
— |
|
|
|
238 |
|
|
|
238 |
|
Money Market Funds |
|
|
68,974 |
|
|
|
— |
|
|
|
— |
|
|
|
68,974 |
|
Total |
$ |
|
68,974 |
|
$ |
|
— |
|
$ |
|
1,324,753 |
|
$ |
|
1,393,727 |
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| Summary of Reconciliation of Beginning and Ending Balances for Fair Valued Investments |
The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and 2025:
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First Lien |
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Second Lien |
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Subordinated |
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Debt |
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Debt |
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Debt |
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Equity |
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Warrants |
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Total |
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Balance, December 31, 2024 |
|
$ |
718,120 |
|
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$ |
83,543 |
|
|
$ |
142,839 |
|
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$ |
138,371 |
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$ |
7,633 |
|
|
$ |
1,090,506 |
|
Net realized gains (losses) on investments |
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(11,964 |
) |
|
|
— |
|
|
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— |
|
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|
10,527 |
|
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|
7,199 |
|
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|
5,762 |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
20,138 |
|
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(6,326 |
) |
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(263 |
) |
|
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(3,830 |
) |
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(5,134 |
) |
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|
4,585 |
|
Purchase of investments |
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186,369 |
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|
13,600 |
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|
- |
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9,912 |
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|
125 |
|
|
|
210,006 |
|
Proceeds from sales and repayments of investments |
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(103,483 |
) |
|
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— |
|
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(37,089 |
) |
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(16,576 |
) |
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(9,457 |
) |
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(166,605 |
) |
Interest and dividend income paid-in-kind |
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1,692 |
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1,379 |
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|
1,628 |
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|
|
— |
|
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— |
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|
4,699 |
|
Proceeds from loan origination fees |
|
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(1,243 |
) |
|
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(90 |
) |
|
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— |
|
|
|
— |
|
|
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— |
|
|
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(1,333 |
) |
Accretion of loan origination fees |
|
|
1,375 |
|
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|
54 |
|
|
|
169 |
|
|
|
— |
|
|
|
— |
|
|
|
1,598 |
|
Accretion of original issue discount |
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|
82 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
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|
86 |
|
Transfers by type |
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9,645 |
|
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(9,645 |
) |
|
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— |
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— |
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|
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— |
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— |
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Balance, June 30, 2025 |
|
$ |
820,731 |
|
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$ |
82,515 |
|
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$ |
107,288 |
|
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$ |
138,404 |
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$ |
366 |
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$ |
1,149,304 |
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Balance, December 31, 2025 |
|
$ |
1,019,063 |
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|
$ |
68,929 |
|
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$ |
94,412 |
|
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$ |
142,111 |
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|
$ |
238 |
|
|
$ |
1,324,753 |
|
Net realized gains (losses) on investments |
|
|
— |
|
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(15,035 |
) |
|
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— |
|
|
|
8,335 |
|
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|
920 |
|
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(5,780 |
) |
Net change in unrealized appreciation (depreciation) on investments |
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(12,916 |
) |
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|
15,851 |
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(220 |
) |
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|
544 |
|
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(238 |
) |
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|
3,021 |
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Purchase of investments |
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|
209,853 |
|
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|
— |
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|
190 |
|
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|
6,619 |
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— |
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|
216,662 |
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Proceeds from sales and repayments of investments |
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(86,055 |
) |
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(899 |
) |
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(13,910 |
) |
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(10,444 |
) |
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(920 |
) |
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(112,228 |
) |
Interest and dividend income paid-in-kind |
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3,827 |
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1,664 |
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|
1,060 |
|
|
|
— |
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— |
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|
6,551 |
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Proceeds from loan origination fees |
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(1,421 |
) |
|
|
— |
|
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|
(4 |
) |
|
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— |
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|
— |
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|
(1,425 |
) |
Accretion of loan origination fees |
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|
1,201 |
|
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|
52 |
|
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|
73 |
|
|
|
— |
|
|
|
— |
|
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|
1,326 |
|
Accretion of original issue discount |
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|
27 |
|
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|
— |
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4 |
|
|
|
— |
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|
|
— |
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|
31 |
|
Balance, June 30, 2026 |
|
$ |
1,133,579 |
|
|
$ |
70,562 |
|
|
$ |
81,605 |
|
|
$ |
147,165 |
|
|
$ |
— |
|
|
$ |
1,432,911 |
|
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| Summary of Significant Unobservable Inputs by Valuation Technique to Determine Fair Value |
The following tables summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Company’s Level 3 debt and equity 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 Company’s determination of fair values.
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Fair Value at |
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Valuation |
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Unobservable |
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Range |
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June 30, 2026 |
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Techniques |
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Inputs |
|
(weighted average)(1) |
Debt investments: |
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First Lien Debt |
|
$ |
1,084,820 |
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Discounted cash flow |
|
Weighted average cost of capital |
|
7.0% - 27.7% (12.9%) |
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|
48,759 |
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Enterprise value waterfall |
|
EBITDA multiples |
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10.0x - 10.0x (10.0x) |
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Second Lien Debt |
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|
70,562 |
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Discounted cash flow |
|
Weighted average cost of capital |
|
12.8% - 22.5% (15.7%) |
|
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|
— |
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Enterprise value waterfall |
|
EBITDA multiples |
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6.0x - 6.0x (6.0x) |
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Subordinated Debt |
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81,408 |
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Discounted cash flow |
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Weighted average cost of capital |
|
10.8% - 40.5% (15.2%) |
|
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|
197 |
|
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Enterprise value waterfall |
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EBITDA multiples |
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6.0x - 6.0x (6.0x) |
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Equity investments: |
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|
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Equity |
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138,110 |
|
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Enterprise value waterfall |
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EBITDA multiples |
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3.0x - 18.0x (9.9x) |
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|
9,055 |
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Enterprise value waterfall |
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Revenue multiples |
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1.3x - 7.5x (5.0x) |
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Warrants |
|
|
— |
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Enterprise value waterfall |
|
Revenue multiples |
|
1.6x - 1.6x (1.6x) |
(1) Unobservable inputs were weighted by the relative fair value of the instruments.
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Fair Value at |
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Valuation |
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Unobservable |
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Range |
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December 31, 2025 |
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Techniques |
|
Inputs |
|
(weighted average)(1) |
Debt investments: |
|
|
|
|
|
|
|
|
|
First Lien Debt |
|
$ |
1,019,063 |
|
|
Discounted cash flow |
|
Weighted average cost of capital |
|
7.2% - 62.9% (13.7%) |
|
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|
|
|
|
|
|
|
|
Second Lien Debt |
|
|
67,453 |
|
|
Discounted cash flow |
|
Weighted average cost of capital |
|
12.8% - 22.5% (15.5%) |
|
|
|
1,476 |
|
|
Option pricing |
|
Volatility of credit |
|
70.0% - 70.0% (70.0%) |
|
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|
— |
|
|
Enterprise value waterfall |
|
EBITDA multiples |
|
6.0x - 6.0x (6.0x) |
|
|
|
|
|
|
|
|
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Subordinated Debt |
|
|
94,204 |
|
|
Discounted cash flow |
|
Weighted average cost of capital |
|
11.5% - 20.0% (13.9%) |
|
|
|
208 |
|
|
Enterprise value waterfall |
|
EBITDA multiples |
|
6.0x - 6.0x (6.0x) |
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|
|
|
|
|
|
|
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Equity investments: |
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|
|
|
|
|
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Equity |
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|
133,216 |
|
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Enterprise value waterfall |
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EBITDA multiples |
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1.3x - 22.0x (9.7x) |
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|
8,826 |
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Enterprise value waterfall |
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Revenue multiples |
|
0.4x - 8.5x (5.7x) |
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|
69 |
|
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Probability weighted expected return |
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Probability |
|
10.0% - 25.0% (11.5%) |
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Warrants |
|
|
— |
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|
Enterprise value waterfall |
|
EBITDA multiples |
|
3.5x - 3.5x (3.5x) |
|
|
|
— |
|
|
Enterprise value waterfall |
|
Revenue multiples |
|
1.5x - 1.5x (1.5x) |
|
|
|
238 |
|
|
Probability weighted expected return |
|
Probability |
|
10.0% - 25.0% (11.5%) |
(1) Unobservable inputs were weighted by the relative fair value of the instruments.
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| Summary of Carrying Value and Fair Value of Debt Obligations |
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The following tables summarize the carrying value and fair value of the Company’s debt obligations as of June 30, 2026 and December 31, 2025.
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June 30, 2026(5) |
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December 31, 2025(5) |
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Carrying Value (1) |
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Fair Value |
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Carrying Value (1) |
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Fair Value |
|
SBA debentures (2) |
|
$ |
296,000 |
|
|
$ |
296,000 |
|
|
$ |
237,500 |
|
|
$ |
237,500 |
|
SPV Credit Facility borrowings (3) |
|
|
112,650 |
|
|
|
112,650 |
|
|
|
83,850 |
|
|
|
83,850 |
|
November 2026 Notes (4) |
|
|
— |
|
|
|
— |
|
|
|
125,000 |
|
|
|
120,455 |
|
March 2030 Notes (4) |
|
|
200,000 |
|
|
|
193,614 |
|
|
|
200,000 |
|
|
|
191,957 |
|
June 2029 Notes (4) |
|
|
120,000 |
|
|
|
116,509 |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
728,650 |
|
|
$ |
718,773 |
|
|
$ |
646,350 |
|
|
$ |
633,762 |
|
(1)Carrying value represents the outstanding principal balance of the debt obligation. (2)The fair value of the SBA debentures is estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures, which are Level 3 inputs under ASC Topic 820. (3)The fair value of the SPV Credit Facility, if valued under ASC Topic 820, is based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. (4)The fair value of the November 2026 Notes (as defined in Note 6), the March 2030 Notes (as defined in Note 6), and the June 2029 Notes (as defined in Note 6) are estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date, which are Level 3 inputs under ASC Topic 820. (5)Totals exclude $11,149 and $12,000 of Secured Borrowings as of June 30, 2026 and December 31, 2025, respectively.
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| Summary of Inputs Used to Value Debt Obligations |
The following table summarizes the inputs used to value the Company’s debt obligations if measured at fair value as of June 30, 2026 and December 31, 2025.
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|
Fair Value |
|
|
|
June 30, |
|
|
December 31, |
|
Valuation Inputs |
|
2026 |
|
|
2025 |
|
Level 1 |
|
$ |
— |
|
|
$ |
— |
|
Level 2 |
|
|
— |
|
|
|
— |
|
Level 3 |
|
|
718,773 |
|
|
|
633,762 |
|
Total |
|
$ |
718,773 |
|
|
$ |
633,762 |
|
|
|