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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

The following tables present fair value measurements of investments as of December 31, 2024 and December 31, 2023:


	Fair Value Hierarchy at December 31, 2024
	Level 1		Level 2			Level 3		Total
First-lien debt investments	$	—	$	14,675		$	3,287,829	$	3,302,504
Second-lien debt investments		—		1,309			18,535		19,844
Mezzanine debt investments		—		—			39,091		39,091
Equity and other investments		3,952		11,963			139,586		155,501
Structured credit investments		—		1,472			—		1,472
Total investments at fair value	$	3,952	$	29,419		$	3,485,041	$	3,518,412
Interest rate swaps		—		(24,238	)		—		(24,238	)
Total	$	3,952	$	5,181		$	3,485,041	$	3,494,174


	Fair Value Hierarchy at December 31, 2023
	Level 1		Level 2			Level 3		Total
First-lien debt investments	$	—	$	2,391		$	2,993,786	$	2,996,177
Second-lien debt investments		—		—			35,975		35,975
Mezzanine debt investments		—		606			38,865		39,471
Equity and other investments		5,180		10,089			140,331		155,600
Structured credit investments		—		55,842			—		55,842
Total investments at fair value	$	5,180	$	68,928		$	3,208,957	$	3,283,065
Interest rate swaps		—		(31,840	)		—		(31,840	)
Total	$	5,180	$	37,088		$	3,208,957	$	3,251,225

Changes in Fair Value of Investments Using Level 3 Inputs

The following tables present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the year ended December 31, 2024 and December 31, 2023:


	As of and for the Year Ended
	December 31, 2024
	First-lien debt investments			Second-lien debt investments			Mezzanine debt investments			Equity and other investments			Total
Balance, beginning of period	$	2,993,786		$	35,975		$	38,865		$	140,331		$	3,208,957
Purchases or originations		1,064,366			2,004			—			10,935			1,077,305
Repayments / redemptions		(764,592	)		(3,177	)		(4,880	)		—			(772,649	)
Sales Proceeds		(9,110	)		—			—			(18,089	)		(27,199	)
Paid-in-kind interest		23,519			1,255			4,476			315			29,565
Net change in unrealized gains (losses)		(35,815	)		(17,656	)		528			1,360			(51,583	)
Net realized gains (losses)		(4,371	)		—			—			4,734			363
Net amortization of discount on securities		20,046			134			102			—			20,282
Transfers within Level 3		—			—			—			—			—
Transfers into (out of) Level 3		—			—			—			—			—
Balance, End of Period	$	3,287,829		$	18,535		$	39,091		$	139,586		$	3,485,041


	As of and for the Year Ended
	December 31, 2023
	First-lien debt investments			Second-lien debt investments			Mezzanine debt investments			Equity and other investments			Total
Balance, beginning of period	$	2,495,959		$	40,762		$	10,158		$	147,059		$	2,693,938
Purchases or originations		887,495			7,961			30,197			13,709			939,362
Repayments / redemptions		—			—			—			(11,217	)		(11,217	)
Sale Proceeds		(472,044	)		—			(102	)		—			(472,146	)
Paid-in-kind interest		15,296			623			2,242			—			18,161
Net change in unrealized gains (losses)		51,240			(13,467	)		(1,186	)		(20,917	)		15,670
Net realized gains (losses)		(487	)		—			—			8,466			7,979
Net amortization of discount on securities		16,327			96			56			—			16,479
Transfers within Level 3		—			—			(2,500	)		2,500			—
Transfers into (out of) Level 3		—			—			—			731			731
Balance, End of Period	$	2,993,786		$	35,975		$	38,865		$	140,331		$	3,208,957

Net Change in Unrealized Gains or Losses on Investments for Which Level 3 Inputs were Used in Determining Fair Value

The following table presents information with respect to the net change in unrealized gains or losses on investments for which Level 3 inputs were used in determining fair value that are still held by the Company at December 31, 2024 and December 31, 2023:


	Net Change in Unrealized			Net Change in Unrealized
	Gains or (Losses)			Gains or (Losses)
	for the Year Ended			for the Year Ended
	December 31, 2024 on			December 31, 2023 on
	Investments Held at			Investments Held at
	December 31, 2024			December 31, 2023
First-lien debt investments	$	(29,217	)	$	55,032
Second-lien debt investments		(17,656	)		(13,467	)
Mezzanine debt investments		528			2,060
Equity and other investments		1,360			(12,834	)
Total	$	(44,985	)	$	30,791

Fair Value of Level 3 Investments at Fair Value and Significant Unobservable Inputs Used in Valuations

The following tables present the fair value of Level 3 Investments and the significant unobservable inputs used in the valuations as of December 31, 2024 and December 31, 2023. 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.

         
        December 31, 2024

         
        Valuation

        Unobservable

        Range (Weighted

        Impact to Valuation
from an

         
        Fair Value

        Technique

        Input

        Average)

        Increase to Input

First-lien debt investments

3,287,829

Income approach (1)

Discount rate

7.7% — 17.7% (12.1%)

Decrease

Second-lien debt investments

18,535

Income approach (2)

Discount rate

14.6% — 18.1% (15.6%)

Decrease

Mezzanine debt investments

39,091

Income approach (3)

Discount rate

12.2% — 22.5% (12.7%)

Decrease

Equity and other investments

139,586

Market Multiple (4)

Comparable multiple

2.3x — 20.0x (7.8x)

Increase

Total

3,485,041

(1)

Includes $199.4 million of debt investments which were valued using an asset valuation waterfall.

(2)

Includes $6.0 million of debt investments which were valued using an asset valuation waterfall.

(3)

Includes $0.1 million of debt investments which were valued using an asset valuation waterfall.

(4)

Includes $13.6 million of equity investments which were valued using an asset valuation waterfall, $0.5 million of equity investments using a Black-Scholes model, $20.4 million of equity investments using a discounted cash flow analysis.

         
        December 31, 2023

         
        Valuation

        Unobservable

        Range (Weighted

        Impact to Valuation
from an

         
        Fair Value

        Technique

        Input

        Average)

        Increase to Input

First-lien debt investments

2,993,786

Income approach (1)

Discount rate

8.7% — 17.9% (14.2%)

Decrease

Second-lien debt investments

35,975

Income approach (2)

Discount rate

15.3% — 21.7% (17.6%)

Decrease

Mezzanine debt investments

38,865

Income approach (3)

Discount rate

14.6% — 22.5% (15.4%)

Decrease

Equity and other investments

140,331

Market Multiple (4)

Comparable multiple

2.0x — 19.2x (6.7x)

Increase

Total

3,208,957

(1)

Includes $63.4 million of debt investments which were valued using an asset valuation waterfall.

(2)

Includes $27.2 million of debt investments which were valued using an asset valuation waterfall.

(3)

Includes $0.1 million of debt investments which were valued using an asset valuation waterfall.

(4)

Includes $6.4 million of equity investments which were valued using an asset valuation waterfall, $2.4 million of equity investments using a Black-Scholes model, $15.7 million of equity investments using a discounted cash flow analysis and $6.2 million of equity investments which, due to the proximity of the transactions relative to the measurement dates, we valued using the cost of the investments.

Fair Value of Company's 2023 Notes, 2024 Notes and 2026 Notes

The following table presents the fair value of the Company’s 2024 Notes, 2026 Notes, 2028 Notes and 2029 Notes as of December 31, 2024 and December 31, 2023.


	December 31, 2024				December 31, 2023
	Outstanding Principal		Fair Value (1)		Outstanding Principal		Fair Value (1)
2024 Notes	$	—	$	—	$	347,500	$	340,862
2026 Notes		300,000		287,911		300,000		273,410
2028 Notes		300,000		312,012		300,000		309,420
2029 Notes		350,000		354,338		—		—
Total	$	950,000	$	954,261	$	947,500	$	923,692

The fair value is based on broker quotes received by the Company and is categorized as Level 2 within the fair value hierarchy.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details