XML 30 R24.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Investments
 6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Investments

Note 5. Investments

Fair Value Measurement and Disclosures

The following table shows the composition of our investment portfolio as of June 30, 2024, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

 

 

 

 

 

 

 

 

Fair Value Hierarchy

 

 

 

Cost

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

First Lien Secured Debt

 

$

2,222,375

 

 

$

2,202,813

 

 

$

—

 

 

$

—

 

 

$

2,202,813

 

Second Lien Secured Debt

 

 

15,520

 

 

 

13,401

 

 

 

—

 

 

 

7,955

 

 

 

5,446

 

Unsecured Debt

 

 

2,672

 

 

 

325

 

 

 

—

 

 

 

—

 

 

 

325

 

Structured Products and Other

 

 

44,438

 

 

 

34,705

 

 

 

—

 

 

 

—

 

 

 

34,705

 

Preferred Equity

 

 

25,802

 

 

 

32,610

 

 

 

—

 

 

 

—

 

 

 

32,610

 

Common Equity/Interests

 

 

323,558

 

 

 

160,328

 

 

 

1,745

 

 

 

—

 

 

 

158,583

 

Warrants

 

 

965

 

 

 

170

 

 

 

—

 

 

 

—

 

 

 

170

 

Total Investments

 

$

2,635,330

 

 

$

2,444,352

 

 

$

1,745

 

 

$

7,955

 

 

$

2,434,652

 

Money Market Fund

 

$

675

 

 

$

675

 

 

$

675

 

 

$

—

 

 

$

—

 

Total Cash Equivalents

 

$

675

 

 

$

675

 

 

$

675

 

 

$

—

 

 

$

—

 

Total Investments after Cash Equivalents

 

$

2,636,005

 

 

$

2,445,027

 

 

$

2,420

 

 

$

7,955

 

 

$

2,434,652

 

The following table shows the composition of our investment portfolio as of December 31, 2023, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

 

 

 

 

 

 

 

 

Fair Value Hierarchy

 

 

 

Cost

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

First Lien Secured Debt

 

$

2,093,887

 

 

$

2,075,031

 

 

$

—

 

 

$

—

 

 

$

2,075,031

 

Second Lien Secured Debt

 

 

46,274

 

 

 

31,887

 

 

 

—

 

 

 

—

 

 

 

31,887

 

Unsecured Debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Structured Products and Other

 

 

44,993

 

 

 

41,333

 

 

 

—

 

 

 

—

 

 

 

41,333

 

Preferred Equity

 

 

25,685

 

 

 

32,405

 

 

 

—

 

 

 

—

 

 

 

32,405

 

Common Equity/Interests

 

 

326,914

 

 

 

153,344

 

 

 

1,217

 

 

 

—

 

 

 

152,127

 

Warrants

 

 

389

 

 

 

199

 

 

 

—

 

 

 

—

 

 

 

199

 

Total Investments

 

$

2,538,142

 

 

$

2,334,199

 

 

$

1,217

 

 

$

—

 

 

$

2,332,982

 

Money Market Fund

 

$

252

 

 

$

252

 

 

$

252

 

 

$

—

 

 

$

—

 

Total Cash Equivalents

 

$

252

 

 

$

252

 

 

$

252

 

 

$

—

 

 

$

—

 

Total Investments after Cash Equivalents

 

$

2,538,394

 

 

$

2,334,451

 

 

$

1,469

 

 

$

—

 

 

$

2,332,982

 

 

The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2024:

 

 

First Lien Secured Debt (2)

 

 

Second Lien Secured Debt (2)

 

 

Unsecured Debt

 

 

Structured Products and Other

 

 

Preferred Equity

 

 

Common Equity/Interests

 

 

Warrants

 

 

Total

 

Fair value as of March 31, 2024

 

$

2,111,478

 

 

$

5,559

 

 

$

329

 

 

$

35,639

 

 

$

32,752

 

 

$

157,406

 

 

$

258

 

 

$

2,343,421

 

Net realized gains (losses)

 

 

3,171

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15,700

)

 

 

—

 

 

 

(12,529

)

Net change in unrealized gains (losses)

 

 

(5,288

)

 

 

(265

)

 

 

(12

)

 

 

(2,725

)

 

 

(142

)

 

 

16,949

 

 

 

(88

)

 

 

8,429

 

Net amortization on investments

 

 

1,642

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,642

 

Purchases, including capitalized PIK (3)

 

 

245,797

 

 

 

152

 

 

 

8

 

 

 

2,533

 

 

 

—

 

 

 

77

 

 

 

—

 

 

 

248,567

 

Sales (3)

 

 

(153,987

)

 

 

—

 

 

 

—

 

 

 

(742

)

 

 

—

 

 

 

(149

)

 

 

—

 

 

 

(154,878

)

Transfers out of Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value as of June 30, 2024

 

$

2,202,813

 

 

$

5,446

 

 

$

325

 

 

$

34,705

 

 

$

32,610

 

 

$

158,583

 

 

$

170

 

 

$

2,434,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2024

 

$

(6,256

)

 

$

(228

)

 

$

42

 

 

$

(2,725

)

 

$

(142

)

 

$

1,208

 

 

$

(87

)

 

$

(8,188

)

The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2024:

 

 

First Lien Secured Debt (2)

 

 

Second Lien Secured Debt (2)

 

 

Unsecured Debt

 

 

Structured Products and Other

 

 

Preferred Equity

 

 

Common Equity/Interests

 

 

Warrants

 

 

Total

 

Fair value as of December 31, 2023

 

$

2,075,031

 

 

$

31,887

 

 

$

—

 

 

$

41,333

 

 

$

32,405

 

 

$

152,127

 

 

$

199

 

 

$

2,332,982

 

Net realized gains (losses)

 

 

(2,787

)

 

 

273

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15,341

)

 

 

—

 

 

 

(17,855

)

Net change in unrealized gains (losses)

 

 

(707

)

 

 

12,031

 

 

 

(2,347

)

 

 

(6,072

)

 

 

89

 

 

 

9,811

 

 

 

(605

)

 

 

12,200

 

Net amortization on investments

 

 

3,574

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,580

 

Purchases, including capitalized PIK (3)

 

 

468,019

 

 

 

299

 

 

 

8

 

 

 

2,533

 

 

 

116

 

 

 

78

 

 

 

—

 

 

 

471,053

 

Sales (3)

 

 

(340,317

)

 

 

(31,340

)

 

 

2,664

 

 

 

(3,089

)

 

 

—

 

 

 

11,908

 

 

 

576

 

 

 

(359,598

)

Transfers out of Level 3 (1)

 

 

—

 

 

 

(7,710

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,710

)

Transfers into Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value as of June 30, 2024

 

$

2,202,813

 

 

$

5,446

 

 

$

325

 

 

$

34,705

 

 

$

32,610

 

 

$

158,583

 

 

$

170

 

 

$

2,434,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2024

 

$

(9,558

)

 

$

(858

)

 

$

(2,347

)

 

$

(6,072

)

 

$

89

 

 

$

7,058

 

 

$

(605

)

 

$

(12,293

)

 

(1)
Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.
(2)
Includes unfunded commitments measured at fair value of $(4,072).
(3)
Includes reorganizations and restructuring of investments

The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2023:

 

 

First Lien Secured Debt (2)

 

 

Second Lien Secured Debt (2)

 

 

Unsecured Debt

 

 

Structured Products and Other

 

 

Preferred Equity

 

 

Common Equity/Interests

 

 

Warrants

 

 

Total

 

Fair value as of March 31, 2023

 

$

2,114,795

 

 

$

69,357

 

 

$

31

 

 

$

10,902

 

 

$

36,611

 

 

$

151,361

 

 

$

461

 

 

$

2,383,518

 

Net realized gains (losses)

 

 

448

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

448

 

Net change in unrealized gains (losses)

 

 

2,381

 

 

 

(967

)

 

 

—

 

 

 

(412

)

 

 

(226

)

 

 

(2,553

)

 

 

(124

)

 

 

(1,901

)

Net amortization on investments

 

 

2,041

 

 

 

49

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,090

 

Purchases, including capitalized PIK (3)

 

 

208,572

 

 

 

—

 

 

 

1

 

 

 

29,947

 

 

 

—

 

 

 

152

 

 

 

—

 

 

 

238,672

 

Sales (3)

 

 

(211,871

)

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

(3,615

)

 

 

—

 

 

 

(215,492

)

Transfers out of Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

592

 

 

 

—

 

 

 

592

 

Fair value as of June 30, 2023

 

$

2,116,366

 

 

$

68,439

 

 

$

26

 

 

$

40,437

 

 

$

36,385

 

 

$

145,937

 

 

$

337

 

 

$

2,407,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2023

 

$

899

 

 

$

(965

)

 

$

—

 

 

$

872

 

 

$

(227

)

 

$

(2,283

)

 

$

(123

)

 

$

(1,827

)

The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2023:

 

 

First Lien Secured Debt (2)

 

 

Second Lien Secured Debt (2)

 

 

Unsecured Debt

 

 

Structured Products and Other

 

 

Preferred Equity

 

 

Common Equity/Interests

 

 

Warrants

 

 

Total

 

Fair value as of December 31, 2022

 

$

2,130,309

 

 

$

70,919

 

 

$

50

 

 

$

9,413

 

 

$

35,557

 

 

$

149,314

 

 

$

474

 

 

$

2,396,036

 

Net realized gains (losses)

 

 

2,980

 

 

 

(1,128

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

367

 

 

 

—

 

 

 

2,219

 

Net change in unrealized gains (losses)

 

 

2,653

 

 

 

21,016

 

 

 

(2

)

 

 

972

 

 

 

778

 

 

 

(24,287

)

 

 

(137

)

 

 

993

 

Net amortization on investments

 

 

4,463

 

 

 

160

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(36

)

 

 

—

 

 

 

4,587

 

Purchases, including capitalized PIK (3)

 

 

360,080

 

 

 

—

 

 

 

2

 

 

 

30,052

 

 

 

50

 

 

 

23,625

 

 

 

—

 

 

 

413,809

 

Sales (3)

 

 

(384,119

)

 

 

(22,528

)

 

 

(24

)

 

 

—

 

 

 

—

 

 

 

(3,638

)

 

 

—

 

 

 

(410,309

)

Transfers out of Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Transfers into Level 3 (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

592

 

 

 

—

 

 

 

592

 

Fair value as of June 30, 2023

 

$

2,116,366

 

 

$

68,439

 

 

$

26

 

 

$

40,437

 

 

$

36,385

 

 

$

145,937

 

 

$

337

 

 

$

2,407,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2023

 

$

1,342

 

 

$

(1,200

)

 

$

(2

)

 

$

2,025

 

 

$

777

 

 

$

(1,799

)

 

$

(137

)

 

$

1,006

 

 

(1)
Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.
(2)
Includes unfunded commitments measured at fair value of $(4,137).
(3)
Includes reorganizations and restructuring of investments.

 

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of June 30, 2024 and December 31, 2023. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of June 30, 2024 were as follows:

 

 

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

 

 

Fair Value

 

 

Valuation Techniques/Methodologies

Unobservable Input

Range

Weighted Average (1)

First Lien Secured Debt

 

$

 

1,913,912

 

 

Yield Analysis

Discount Rate

6.8%

22.4%

12.1%

 

 

 

 

132,181

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

124,227

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

 

 

 

 

32,493

 

 

Market Comparable Technique

Comparable Multiple

3.3x

25.2x

13.7x

Second Lien Secured Debt

 

 

 

5,446

 

 

Market Comparable Technique

Comparable Multiple

5.8x

5.8x

5.8x

Unsecured Debt

 

 

 

325

 

 

Yield Analysis

Discount Rate

11.8%

11.8%

11.8%

Structured Products and Other

 

 

 

34,705

 

 

Yield Analysis

Discount Rate

11.3%

12.4%

11.6%

Preferred Equity

 

 

 

32,350

 

 

Market Comparable Technique

Comparable Multiple

0.5x

16.9x

11.7x

 

 

 

 

241

 

 

Yield Analysis

Discount Rate

13.3%

13.3%

13.3%

 

 

 

 

19

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

—

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

Common Equity/Interests

 

 

 

120,315

 

 

Yield Analysis

Discount Rate

10.5%

13.3%

10.5%

 

 

 

 

21,034

 

 

Estimated Proceeds

Estimated Proceeds

N/A

N/A

N/A

 

 

 

 

16,946

 

 

Market Comparable Technique

Comparable Multiple

2.8x

23.5x

11.4x

 

 

 

 

211

 

 

Option Pricing Model

Expected Volatility

30.0%

105.0%

64.1%

 

 

 

 

77

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

—

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

Warrants

 

 

 

148

 

 

Option Pricing Model

Expected Volatility

50.0%

50.0%

50.0%

 

 

 

 

22

 

 

Market Comparable Technique

Comparable Multiple

6.5x

6.5x

6.5x

Total Level 3 Investments

 

$

 

2,434,652

 

 

 

 

 

 

 

_________________

(1)
The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

 

The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2023 were as follows:

 

 

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

 

 

Fair Value

 

 

Valuation Techniques/Methodologies

Unobservable Input

Range

Weighted Average (1)

First Lien Secured Debt

 

$

 

59,746

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

111,468

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

 

 

 

 

1,903,817

 

 

Yield Analysis

Discount Rate

6.6%

25.1%

12.2%

Second Lien Secured Debt

 

 

 

2,207

 

 

Market Comparable Technique

Comparable Multiple

8.5x

8.5x

8.5x

 

 

 

 

238

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

 

 

 

 

29,442

 

 

Yield Analysis

Discount Rate

13.7%

25.8%

17.3%

Structured Products and Other

 

 

 

41,333

 

 

Yield Analysis

Discount Rate

13.0%

15.6%

14.9%

Preferred Equity

 

 

 

31,950

 

 

Market Comparable Technique

Comparable Multiple

2.8x

12.5x

11.1x

 

 

 

 

268

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

—

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

 

 

 

 

78

 

 

Residual Value

Residual Value

N/A

N/A

N/A

 

 

 

 

109

 

 

Yield Analysis

Discount Rate

13.5%

13.5%

13.5%

Common Equity/Interests

 

 

 

12,898

 

 

Market Comparable Technique

Comparable Multiple

3.6x

26.0x

11.8x

 

 

 

 

281

 

 

Option Pricing Model

Expected Volatility

30.0%

115.0%

59.1%

 

 

 

 

125

 

 

Recent Transaction

Recent Transaction

N/A

N/A

N/A

 

 

 

 

—

 

 

Recovery Analysis

Recoverable Amount

N/A

N/A

N/A

 

 

 

 

117,454

 

 

Yield Analysis

Discount Rate

13.5%

14.3%

14.3%

 

 

 

 

21,369

 

 

Estimated Proceeds

Estimated Proceeds

N/A

N/A

N/A

Warrants

 

 

 

199

 

 

Option Pricing Model

Expected Volatility

50.0%

50.0%

50.0%

Total Level 3 Investments

 

$

 

2,332,982

 

 

 

 

 

 

 

____________________

(1)
The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity securities are primarily earnings before interest, taxes, depreciation and amortization (“EBITDA”) comparable multiples and market discount rates. The Company typically uses EBITDA comparable multiples on its equity securities to determine the fair value of investments. The Company uses market discount rates for debt securities to determine if the effective yield on a debt security is commensurate with the market yields for that type of debt security. If a debt security’s effective yield is significantly less than the market yield for a similar debt security with a similar credit profile, the resulting fair value of the debt security may be lower. For certain investments where fair value is derived based on a recovery analysis, the Company uses underlying commodity prices from third party market pricing services to determine the fair value and/or recoverable amount, which represents the proceeds expected to be collected through asset sales or liquidation. Further, for certain investments, the Company also considered the probability of future events which are not in management’s control. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. The significant unobservable inputs used in the fair value measurement of the structured products include the discount rate applied in the valuation models in addition to default and recovery rates applied to projected cash flows in the valuation models. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment; conversely decreases in the discount rate can significantly increase the fair value of an investment. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. For certain investments such as warrants, the Company may use an option pricing technique, of which the applicable method is the Black-Scholes Option Pricing Method (“BSM”), to perform valuations. The BSM is a model of price variation over time of financial instruments, such as equity, that is used to determine the price of call or put options. Various inputs are required but the primary unobservable input into the BSM model is the underlying asset volatility.

 

Investment Transactions

For the three and six months ended June 30, 2024, purchases of investments on a trade date basis were $245,362 and $398,153, respectively. For the three and six months ended June 30, 2023, purchases of investments on a trade date basis were $101,601 and $252,659, respectively.

For the three and six months ended June 30, 2024, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $154,878 and $291,746, respectively. For the three and six months ended June 30, 2023, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $79,235 and $250,764, respectively.

PIK Income

The Company holds loans and other investments, including certain preferred equity investments, that have contractual PIK income. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. During the three and six months ended June 30, 2024, PIK income earned was $2,473 and $4,502, respectively. During the three and six months ended June 30, 2023, PIK income earned was $812 and $1,597, respectively.

The following table shows the change in capitalized PIK balance for the three and six months ended June 30, 2024 and 2023:

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

 

2023

 

PIK balance at beginning of period

 

 

 

 

$

 

26,834

 

 

$

 

22,325

 

 

$

 

24,485

 

 

$

 

21,534

 

PIK income capitalized

 

 

 

 

 

 

2,075

 

 

 

 

811

 

 

 

 

4,424

 

 

 

 

1,602

 

Adjustments due to investments exited or written off

 

 

 

 

 

 

—

 

 

 

 

(19

)

 

 

 

—

 

 

 

 

(19

)

PIK income received in cash

 

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

PIK balance at end of period

 

 

 

 

$

 

28,909

 

 

$

 

23,117

 

 

$

 

28,909

 

 

$

 

23,117

 

Dividend Income on CLOs and Structured Finance Products

The Company holds structured finance products and other investments. The CLO equity investments and structured finance products are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. During the three and six months ended June 30, 2024, dividend income from structured products was $235 and $235, respectively. During the three and six months ended June 30, 2023, there was no dividend income from structured products.

Investments on Non-Accrual Status

As of June 30, 2024, 2.1% of total investments at amortized cost, or 1.5% of total investments at fair value, were on non-accrual status. As of December 31, 2023, 1.2% of total investments at amortized cost, or 0.2% of total investments at fair value, were on non-accrual status.