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INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investments
As of December 31, 2024 and 2023, investments consisted of the following:

 As of December 31,
20242023
Amortized Cost(1)Fair ValueAmortized Cost(1)Fair Value
First lien senior secured loans(2)$15,519 $15,179 $10,313 $10,081 
Second lien senior secured loans1,935 1,847 3,980 3,753 
Subordinated certificates of the SDLP(3)1,263 1,192 1,316 1,288 
Senior subordinated loans1,384 1,351 1,150 1,096 
Preferred equity2,667 2,649 2,457 2,460 
Ivy Hill Asset Management, L.P.(4)1,701 1,915 1,763 1,987 
Other equity1,905 2,587 1,689 2,209 
Total$26,374 $26,720 $22,668 $22,874 
________________________________________

(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
    
(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $8,772 and $8,624 respectively, as of December 31, 2024, and $5,786 and $5,667, respectively, as of December 31, 2023.

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 20 and 22 different borrowers as of December 31, 2024 and 2023, respectively.

(4)Includes the Company’s subordinated loan and equity investments in IHAM (as defined below), as applicable.
  
The Company uses GICS for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of December 31, 2024 and 2023 were as follows:

 As of December 31,
20242023
Industry
Software and Services24.5 %23.2 %
Health Care Equipment and Services12.0 12.1 
Financial Services(1)9.9 11.4 
Commercial and Professional Services9.4 10.2 
Insurance5.9 5.1 
Consumer Distribution and Retail5.7 4.6 
Consumer Services5.1 4.1 
Investment Funds and Vehicles(2)4.6 5.8 
Media and Entertainment4.6 2.8 
Independent Power and Renewable Electricity Producers3.7 3.8 
Capital Goods2.7 2.4 
Pharmaceuticals, Biotechnology and Life Sciences2.6 1.5 
Consumer Durables and Apparel2.3 3.1 
Food and Beverage1.8 2.1 
Automobiles and Components1.4 1.7 
Other3.8 6.1 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in IHAM.

(2)Includes the Company’s investment in the SDLP (as defined below), which had made first lien senior secured loans to 20 and 22 different borrowers as of December 31, 2024 and 2023, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.

 As of December 31,
20242023
Geographic Region
West(1)25.2 %24.3 %
Midwest20.9 24.7 
Southeast19.3 18.5 
Mid-Atlantic16.1 13.3 
Northeast(2)12.2 13.2 
International6.3 6.0 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in the SDLP, which represented 4.5% and 5.6% of the total investment portfolio at fair value as of December 31, 2024 and 2023, respectively.

(2)Includes the Company’s investment in IHAM, which represented 7.1% and 8.7% of the total investment portfolio at fair value as of December 31, 2024 and 2023, respectively.
The amortized cost and fair value of the Company’s investment in IHAM as of December 31, 2024 and 2023 were as follows:
As of December 31,
20242023
Amortized CostFair ValueAmortized CostFair Value
Subordinated loan(1)
$— $— $62 $62 
Equity
1,701 1,915 1,701 1,925 
Total investment in IHAM$1,701 $1,915 $1,763 $1,987 
_______________________________________________________________________________

(1)The Company has committed to fund up to $500 to IHAM, the availability of which is solely at the Company’s discretion.
Below is a summary of the SDLP’s portfolio.
As of December 31,
20242023
Total first lien senior secured loans(1)(2)$4,759 $5,431 
Largest loan to a single borrower(1)$400 $370 
Total of five largest loans to borrowers(1)$1,692 $1,650 
Number of borrowers in the SDLP20 22 
Commitments to fund delayed draw loans(3)$489 $260 
___________________________________________________________________________

(1)At principal amount.

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of December 31, 2024 and 2023, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $3,937 and $4,558, respectively.

(3)As discussed above, these commitments have been approved by the investment committee of the SDLP.

Pursuant to Rule 4-08(g) of Regulation S-X, as the SDLP was considered a significant subsidiary as of December 31, 2023, selected financial information of the SDLP, prepared in conformity with GAAP, as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 are presented below:

As of December 31,
20242023
Selected Balance Sheet Information:
Investments at fair value (amortized cost of $4,591 and $5,267, respectively)
$4,390 $5,129 
Other assets449 192 
Total assets$4,839 $5,321 
Senior notes$3,428 $3,705 
Intermediate funding notes130 139 
Other liabilities124 136 
Total liabilities3,682 3,980 
Subordinated certificates and members’ capital1,157 1,341 
Total liabilities and members’ capital$4,839 $5,321 
For the Years Ended December 31,
202420232022
Selected Statement of Operations Information:
Total investment income$541 $570 $365 
Interest expense292 296 155 
Other expenses17 23 20 
Total expenses309 319 175 
Net investment income232 251 190 
Net realized and unrealized losses on investments (157)(73)(147)
Net increase in members’ capital resulting from operations$75 $178 $43 
Schedule of Dividend and Interest Income
The interest income and dividend income that the Company earned from IHAM for the years ended December 31, 2024, 2023 and 2022 were as follows:

For the Years Ended December 31,
202420232022
Interest income
$2 $29 $23 
Dividend income
$285 $243 $205 
The interest income from the Company’s investment in the SDLP Certificates and capital structuring service fees and other income earned for the years ended December 31, 2024, 2023 and 2022 were as follows:
For the Years Ended December 31,
202420232022
Interest income
$173 $174 $146 
Capital structuring service fees and other income
$17 $13 $22 
Schedule of Funded Capital and Unfunded Capital Commitments of the SDLP
The yields at amortized cost and fair value of the Company’s investments in IHAM as of December 31, 2024 and 2023 were as follows:
 As of December 31,
20242023
 Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
— %— %12.0 %12.0 %
Equity(1)
16.7 %14.8 %15.1 %13.3 %
_______________________________________________________________________________

(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the regular dividend received by the Company related to the Company’s equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.
Below is a summary of the funded capital and unfunded capital commitments of the SDLP.
 As of December 31,
20242023
Total capital funded to the SDLP(1)$5,054 $5,361 
Total capital funded to the SDLP by the Company(1)$1,310 $1,328 
Total unfunded capital commitments to the SDLP(2)$489 $260 
Total unfunded capital commitments to the SDLP by the Company(2)$119 $60 
___________________________________________________________________________
(1)At principal amount.

(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
The amortized cost and fair value of the SDLP Certificates held by the Company and the Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of December 31, 2024 and 2023 were as follows:

As of December 31,
20242023
Amortized CostFair ValueAmortized CostFair Value
Investment in the SDLP Certificates$1,263 $1,192 $1,316 $1,288 
Yield on the investment in the SDLP Certificates12.4 %13.2 %13.6 %13.9 %
Schedule of Selected Financial Information
Selected Financial Information

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 are presented below.

In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.

When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the Consolidated IHAM Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, the Company believes an assessment of IHAM's business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.

As of December 31, 2024
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,161 $8,098 $(2,086)$8,173 
Cash and cash equivalents9 1,012 — 1,021 
Other assets60 122 (55)127 
Total assets$2,230 $9,232 $(2,141)$9,321 
Liabilities
Debt$406 $6,550 $— $6,956 
Subordinated notes(3)— 1,026 (717)309 
Other liabilities16 311 (13)314 
Total liabilities422 7,887 (730)7,579 
Equity
Contributed capital1,701 — — 1,701 
Accumulated earnings186 — — 186 
Net unrealized losses on investments and foreign currency transactions(4)(79)— — (79)
Non-controlling interests in Consolidated IHAM Vehicles(5)
— 1,345 (1,411)(66)
Total equity1,808 1,345 (1,411)1,742 
Total liabilities and equity$2,230 $9,232 $(2,141)$9,321 
As of December 31, 2023
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,274 $9,392 $(2,265)$9,401 
Cash and cash equivalents9 707 — 716 
Other assets70 100 (68)102 
Total assets$2,353 $10,199 $(2,333)$10,219 
Liabilities
Debt$462 $7,459 $— $7,921 
Subordinated note from ARCC62 — — 62 
Subordinated notes(3)— 1,280 (992)288 
Other liabilities17 189 (16)190 
Total liabilities541 8,928 (1,008)8,461 
Equity
Contributed capital1,701 — — 1,701 
Accumulated earnings126 — — 126 
Net unrealized losses on investments and foreign currency transactions(4)(15)— — (15)
Non-controlling interests in Consolidated IHAM Vehicles(5)
— 1,271 (1,325)(54)
Total equity1,812 1,271 (1,325)1,758 
Total liabilities and equity$2,353 $10,199 $(2,333)$10,219 
________________________________________

(1)Consolidated for GAAP purposes only.

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of December 31, 2024 and 2023 was $2,237 and $2,288, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of December 31, 2024 and 2023 was $8,343 and $9,619, respectively.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(4)As of December 31, 2024 and 2023, net unrealized losses of $70 and $13, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $171 and $221 as of December 31, 2024 and 2023, respectively.
For the Year Ended December 31, 2024
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$344 $1,014 $(337)$1,021 
Management fees and other income53 12 (50)15 
Total revenues397 1,026 (387)1,036 
Expenses
Interest expense37 564 — 601 
Distributions to subordinated notes— 209 (154)55 
Management fees and other expenses15 61 (50)26 
Total expenses52 834 (204)682 
Net operating income345 192 (183)354 
Net realized gains (losses) on investments and foreign currency— (132)(4)(136)
Net realized gain on extinguishment of debt— 2 2 4 
Net unrealized (losses) gains on investments, foreign currency and other transactions(64)62 57 55 
Total net realized and unrealized losses on investments, foreign currency and other transactions (64)(68)55 (77)
Net income281 124 (128)277 
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles— 124 (128)(4)
Net income attributable to Ivy Hill Asset Management, L.P.$281 $— $— $281 
For the Year Ended December 31, 2023
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$347 $1,097 $(343)$1,101 
Management fees and other income56 8 (54)10 
Total revenues403 1,105 (397)1,111 
Expenses
Interest expense61 580 — 641 
Distributions to subordinated notes— 193 (150)43 
Management fees and other expenses15 75 (54)36 
Total expenses76 848 (204)720 
Net operating income327 257 (193)391 
Net realized (losses) gains on investments and other transactions(19)2 (29)(46)
Net unrealized gains on investments and other transactions18 93 (18)93 
Total net realized and unrealized (losses) gains on investments and other transactions(1)95 (47)47 
Net income326 352 (240)438 
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles— 352 (240)112 
Net income attributable to Ivy Hill Asset Management, L.P.$326 $— $— $326 

For the Year Ended December 31, 2022
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$188 $594 $(185)$597 
Management fees and other income49 7 (46)10 
Total revenues237 601 (231)607 
Expenses
Interest expense35 264 — 299 
Distributions to subordinated notes— 127 (95)32 
Management fees and other expenses14 56 (46)24 
Total expenses49 447 (141)355 
Net operating income188 154 (90)252 
Net realized losses on investments and other transactions— (12)— (12)
Net unrealized losses on investments and other transactions(33)(279)31 (281)
Total net realized and unrealized losses on investments and other transactions(33)(291)31 (293)
Net income (loss)155 (137)(59)(41)
Less: Net loss attributable to non-controlling interests in Consolidated IHAM Vehicles— (137)(59)(196)
Net income attributable to Ivy Hill Asset Management, L.P.$155 $— $— $155 

____________________________________

(1)Consolidated for GAAP purposes only.