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PORTFOLIO INVESTMENTS AND FAIR VALUE (Tables)
3 Months Ended
Mar. 31, 2025
PORTFOLIO INVESTMENTS AND FAIR VALUE  
Schedule of total fair value and cost of investments

At March 31, 2025, the Company had investments in 110 portfolio companies. The composition of its investments as of March 31, 2025 was as follows:

Cost

Fair Value

Senior Secured – First Lien(1)

$

918,052,733

$

888,500,654

Senior Secured – Second Lien

 

12,084,138

11,948,850

Unsecured Debt

 

6,864,228

6,705,769

Equity

 

60,830,565

83,948,504

Total Investments

$

997,831,664

$

991,103,777

(1)Includes unitranche investments, which accounted for 1.9% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.

At December 31, 2024, the Company had investments in 105 portfolio companies. The composition of its investments as of December 31, 2024 was as follows:

    

Cost

    

Fair Value

Senior Secured – First Lien(1)

$

884,322,462

$

856,096,255

Senior Secured – Second Lien

 

12,073,732

11,948,850

Unsecured Debt

 

6,755,866

6,612,493

Equity

 

58,636,646

78,840,090

Total Investments

$

961,788,706

$

953,497,688

(1)Includes unitranche investments, which accounted for 2.0% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.
Schedule of aggregate gross unrealized appreciation and depreciation and aggregate cost and fair value of portfolio company securities

The aggregate gross unrealized appreciation and depreciation and the aggregate cost and fair value of the Company’s portfolio company securities as of March 31, 2025 and December 31, 2024 were as follows:

    

March 31, 2025

    

December 31, 2024

Aggregate cost of portfolio company securities

$

997,831,664

$

961,788,706

Gross unrealized appreciation of portfolio company securities

 

54,928,043

 

47,590,719

Gross unrealized depreciation of portfolio company securities

 

(61,047,050)

 

(54,903,019)

Gross unrealized appreciation on foreign currency translations of portfolio company securities

7,032

3,973

Gross unrealized depreciation on foreign currency translations of portfolio company securities

(615,912)

(982,691)

Aggregate fair value of portfolio company securities

$

991,103,777

$

953,497,688

Schedule of fair values of investments disaggregated into three levels of fair value hierarchy

The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation of the Company’s investments as of March 31, 2025 were as follows:

    

Quoted Prices

    

    

    

in Active

Markets

Significant Other

Significant

for Identical

Observable

Unobservable

Securities

Inputs

Inputs

(Level 1)

(Level 2)

(Level 3)

Total

Senior Secured – First Lien

$

$

$

888,500,654

$

888,500,654

Senior Secured – Second Lien

 

 

 

11,948,850

 

11,948,850

Unsecured Debt

 

 

 

6,705,769

 

6,705,769

Equity

 

 

 

83,948,504

 

83,948,504

Total Investments

$

$

$

991,103,777

$

991,103,777

The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation of the Company’s investments as of December 31, 2024 were as follows:

Quoted Prices

    

in Active

    

    

    

Markets

Significant Other

Significant

for Identical

Observable

Unobservable

Securities

Inputs

Inputs

(Level 1)

(Level 2)

(Level 3)

Total

Senior Secured – First Lien

$

$

$

856,096,255

$

856,096,255

Senior Secured – Second Lien

 

 

 

11,948,850

 

11,948,850

Unsecured Debt

 

 

 

6,612,493

 

6,612,493

Equity

 

 

 

78,840,090

 

78,840,090

Total Investments

$

$

$

953,497,688

$

953,497,688

Schedule of change in aggregate values of Level 3 portfolio investments

The aggregate values of Level 3 portfolio investments changed during the three months ended March 31, 2025 as follows:

    

Senior Secured

    

Senior Secured

    

    

    

Loans-First

Loans-Second

Unsecured

 

Lien

Lien

Debt

Equity

Total

Fair value at beginning of period

$

856,096,255

$

11,948,850

$

6,612,493

$

78,840,090

$

953,497,688

Purchases of investments

 

53,612,094

 

 

9,456

 

3,457,015

 

57,078,565

PIK interest

 

874,807

 

 

101,672

 

 

976,479

Sales and redemptions

 

(15,806,481)

 

 

(6,601)

 

(926,809)

 

(16,739,891)

Realized losses

 

(5,651,668)

 

 

 

(336,282)

 

(5,987,950)

Change in unrealized (depreciation) appreciation included in earnings(1)

 

(1,691,253)

 

(10,407)

 

(16,478)

 

2,911,431

 

1,193,293

Change in unrealized appreciation on foreign currency included in earnings

365,384

 

1,395

 

3,059

 

369,838

Amortization of premium and accretion of discount, net

 

701,516

 

10,407

 

3,832

 

 

715,755

Fair value at end of period

$

888,500,654

$

11,948,850

$

6,705,769

$

83,948,504

$

991,103,777

(1)Includes reversal of positions during the three months ended March 31, 2025.

The aggregate values of Level 3 portfolio investments changed during the year ended December 31, 2024 as follows:

    

Senior Secured

    

Senior Secured

    

    

    

Loans-First

Loans-Second

Unsecured

Lien

Lien

Debt

Equity

Total

Fair value at beginning of period

$

774,789,320

$

21,957,500

$

5,956,280

$

71,757,583

$

874,460,683

Purchases of investments

 

213,545,132

 

 

117,066

 

7,492,735

 

221,154,933

PIK interest

 

2,824,403

 

 

485,708

 

 

3,310,111

Sales and redemptions

 

(126,924,841)

 

(9,782,348)

 

 

(14,985,096)

 

(151,692,285)

Realized (losses) gains

 

(1,580,768)

 

(20,475,000)

 

 

6,212,362

 

(15,843,406)

Change in unrealized (depreciation) appreciation included in earnings(1)

 

(9,026,597)

 

20,187,185

 

40,312

 

8,369,509

 

19,570,409

Change in unrealized depreciation on foreign currency included in earnings

(169,778)

 

(1,778)

 

(7,003)

 

(178,559)

Amortization of premium and accretion of discount, net

 

2,639,384

 

61,513

 

14,905

 

 

2,715,802

Fair value at end of period

$

856,096,255

$

11,948,850

$

6,612,493

$

78,840,090

$

953,497,688

(1)Includes reversal of positions during the year ended December 31, 2024.
Summary of geographical concentration of investment portfolio

The following is a summary of geographical concentration in the Company’s investment portfolio as of March 31, 2025:

% of Total

 

Investments at

Cost

Fair Value

Fair Value

California

 

$

183,759,361

 

$

180,143,989

 

18.18

%

Texas

 

154,718,968

 

153,093,310

 

15.45

%

Florida

 

109,257,282

 

104,818,655

 

10.58

%

Illinois

 

67,687,101

 

57,608,822

 

5.81

%

Pennsylvania

 

52,798,217

 

54,814,087

 

5.53

%

Arizona

 

43,416,841

 

46,612,063

 

4.70

%

New York

 

36,106,476

 

36,400,772

 

3.67

%

Ohio

 

33,609,449

 

35,917,579

 

3.62

%

Colorado

 

39,158,839

 

35,405,722

 

3.57

%

Canada

 

31,909,912

 

32,074,271

 

3.24

%

District of Columbia

 

22,607,275

 

26,177,477

 

2.64

%

Georgia

 

11,860,249

 

22,876,501

 

2.31

%

North Carolina

 

20,933,261

 

22,118,879

 

2.23

%

Wisconsin

 

30,579,019

 

20,580,392

 

2.08

%

Massachusetts

 

19,936,720

 

20,391,332

 

2.06

%

Tennessee

 

20,476,976

 

20,447,184

 

2.06

%

Iowa

 

18,572,441

 

18,530,010

 

1.87

%

New Jersey

 

11,191,151

 

11,911,882

 

1.20

%

Idaho

 

11,757,404

 

11,819,529

 

1.19

%

Michigan

 

11,373,634

 

11,565,671

 

1.17

%

Missouri

 

10,313,148

 

10,522,539

 

1.06

%

Virginia

 

9,381,441

 

9,498,704

 

0.96

%

Louisiana

 

9,200,420

 

9,218,704

 

0.93

%

Oregon

 

8,903,578

 

8,903,578

 

0.90

%

Washington

 

8,177,844

 

8,708,683

 

0.88

%

Maryland

 

7,541,120

 

7,496,189

 

0.76

%

Minnesota

 

6,547,210

 

6,969,215

 

0.70

%

South Carolina

 

4,840,161

 

5,001,770

 

0.50

%

Indiana

 

743,770

 

994,182

 

0.10

%

United Kingdom

 

472,396

 

482,086

 

0.05

%

Total Investments

$

997,831,664

$

991,103,777

 

100.00

%

The following is a summary of geographical concentration in the Company’s investment portfolio as of December 31, 2024:

    

    

    

% of Total

 

Investments

 

Cost

Fair Value

at Fair Value

 

Texas

 

$

159,028,754

 

$

154,041,942

 

16.15

%

California

 

160,285,777

 

152,583,692

 

16.00

%

Florida

 

108,434,730

 

104,718,969

 

10.98

%

Illinois

 

66,486,029

 

56,591,435

 

5.94

%

Pennsylvania

 

53,271,774

 

54,438,594

 

5.71

%

Arizona

 

43,552,887

 

46,839,063

 

4.91

%

New York

 

36,116,358

 

36,306,098

 

3.81

%

Ohio

 

33,645,676

 

35,847,804

 

3.76

%

Canada

 

32,107,256

 

32,375,749

 

3.40

%

Colorado

 

31,283,806

 

28,218,186

 

2.96

%

Wisconsin

 

27,935,159

 

23,352,084

 

2.45

%

District of Columbia

 

22,711,852

 

26,654,283

 

2.80

%

Georgia

 

12,391,680

 

23,345,077

 

2.45

%

North Carolina

 

20,946,327

 

22,314,018

 

2.34

%

Tennessee

 

20,490,429

 

20,703,772

 

2.17

%

Massachusetts

 

19,965,590

 

20,559,398

2.16

%

Missouri

 

18,590,476

 

18,712,569

1.96

%

Iowa

 

13,486,486

 

13,486,486

 

1.41

%

Idaho

 

11,763,648

 

11,830,192

 

1.24

%

New Jersey

 

11,181,815

 

11,754,323

 

1.23

%

Michigan

 

11,389,446

 

11,510,608

 

1.21

%

Louisiana

 

9,216,389

 

9,371,830

 

0.98

%

Virginia

 

9,293,896

 

9,373,367

 

0.98

%

Washington

 

8,193,234

 

8,216,962

 

0.86

%

Maryland

 

7,529,294

 

7,526,300

 

0.79

%

Minnesota

 

6,448,091

 

6,452,144

 

0.68

%

South Carolina

 

4,836,178

 

4,984,667

 

0.52

%

Indiana

 

743,770

 

920,343

 

0.10

%

United Kingdom

 

461,899

 

467,733

 

0.05

%

Total Investments

$

961,788,706

$

953,497,688

 

100.00

%

Summary of industry concentration of investment portfolio

The following is a summary of industry concentration in the Company’s investment portfolio as of March 31, 2025:

% of Total

 

Investments at

Cost

Fair Value

Fair Value

 

Services: Business

$

243,646,441

$

258,489,176

 

26.08

%

High Tech Industries

 

91,028,612

93,430,034

 

9.43

%

Healthcare & Pharmaceuticals

 

85,729,558

84,959,811

 

8.57

%

Media: Advertising, Printing & Publishing

 

79,111,134

79,724,472

 

8.04

%

Beverage & Food

 

63,707,729

68,723,968

 

6.93

%

Consumer Goods: Non-Durable

 

66,582,041

56,310,657

 

5.68

%

Capital Equipment

 

50,126,287

52,518,594

 

5.30

%

Services: Consumer

 

49,269,639

45,982,572

 

4.64

%

Chemicals, Plastics, & Rubber

 

38,127,354

37,992,254

 

3.83

%

Construction & Building

 

31,934,161

32,454,388

 

3.27

%

Consumer Goods: Durable

 

34,792,596

32,395,267

 

3.27

%

Aerospace & Defense

 

27,130,502

22,847,756

 

2.31

%

Environmental Industries

 

19,061,096

20,695,413

 

2.09

%

Transportation & Logistics

 

17,991,080

18,241,796

 

1.84

%

Retail

 

14,787,280

14,778,304

 

1.49

%

Media: Broadcasting & Subscription

 

12,142,342

14,411,416

 

1.45

%

Energy: Oil & Gas

 

11,343,396

10,559,460

 

1.07

%

Containers, Packaging, & Glass

 

20,666,618

10,294,415

 

1.04

%

Hotel, Gaming, & Leisure

 

7,137,590

8,285,168

 

0.84

%

FIRE: Real Estate

 

17,934,808

7,707,712

 

0.78

%

Media: Diversified & Production

 

5,804,592

5,916,959

 

0.60

%

Finance

 

119,281

5,370,188

 

0.54

%

Wholesale

 

5,060,939

5,060,939

 

0.51

%

Education

 

4,596,588

3,953,058

 

0.40

%

Total Investments

$

997,831,664

$

991,103,777

 

100.00

%

The following is a summary of industry concentration in the Company’s investment portfolio as of December 31, 2024:

    

    

    

% of Total

 

Investments

 

Cost

Fair Value

at Fair Value

 

Services: Business

$

219,665,133

$

234,908,112

 

24.64

%

High Tech Industries

 

91,135,577

93,468,792

 

9.81

%

Healthcare & Pharmaceuticals

 

85,300,317

85,478,418

 

8.97

%

Media: Advertising, Printing & Publishing

 

71,318,416

72,291,584

 

7.58

%

Beverage & Food

 

64,052,951

68,902,142

 

7.23

%

Consumer Goods: Non-Durable

 

67,123,135

54,473,282

 

5.71

%

Services: Consumer

 

49,388,222

46,066,301

 

4.83

%

Capital Equipment

 

41,322,214

43,647,466

 

4.58

%

Consumer Goods: Durable

 

43,393,413

42,094,390

 

4.41

%

Chemicals, Plastics, & Rubber

 

36,693,101

36,907,602

 

3.87

%

Construction & Building

 

32,374,992

32,979,859

 

3.46

%

Aerospace & Defense

 

26,014,106

21,624,091

 

2.27

%

Environmental Industries

 

18,903,681

18,282,056

 

1.92

%

Transportation & Logistics

 

17,244,131

17,532,488

 

1.84

%

Retail

 

14,799,085

14,723,620

 

1.54

%

Media: Broadcasting & Subscription

 

12,170,577

14,314,711

 

1.50

%

Containers, Packaging, & Glass

 

18,007,571

12,911,794

 

1.35

%

Energy: Oil & Gas

 

11,353,959

10,728,031

 

1.13

%

Hotel, Gaming, & Leisure

 

7,113,661

8,142,050

 

0.85

%

FIRE: Real Estate

 

17,934,808

7,652,436

 

0.80

%

Media: Diversified & Production

 

5,822,637

5,934,853

 

0.62

%

Education

 

10,537,738

5,341,151

 

0.56

%

Finance

 

119,281

5,092,459

 

0.53

%

Total Investments

$

961,788,706

$

953,497,688

 

100.00

%

Schedule of quantitative information about Level 3 fair value measurements

The following provides quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2025:

Description:

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range (Average)(1)(3)

First lien debt

$

833,408,937

 

Income approach(2)

 

HY credit spreads

-9.06% to 9.82% (-0.10%)

 

 

Risk free rates

-1.95% to 2.25% (0.19%)

Market approach(2)

 

Market multiples

4.6x to 26.3x (12.0x)(4)

$

55,091,717

Transaction value

Transaction price

N/A

Second lien debt

$

11,948,850

Income approach(2)

 

HY credit spreads

-0.11% to 0.64% (0.17%)

 

 

Risk free rates

-0.53% to -0.05% (-0.23%)

 

Market approach(2)

 

Market multiples

5.3 to 11.8x (9.4x)(4)

Unsecured debt

$

6,669,543

Income approach(2)

 

HY credit spreads

1.54% to 1.54% (1.52%)

 

 

Risk free rates

-0.50% to -0.50% (-0.49%)

$

36,226

 

Transaction value

Transaction price

N/A

Equity investments

$

70,265,931

 

Market approach(5)

 

EBITDA multiple

3.5x to 18.3x (10.4x)

$

13,682,573

Transaction value

Transaction price

N/A

Total Long Term Level 3 Investments

$

991,103,777

 

  

 

  

  

(1)Weighted average based on fair value as of March 31, 2025.
(2)Included but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach, which is based on discounting future cash flows using an appropriate market yield.
(3)The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed and the valuation date ranged from (9.06)% ( (906) basis points) to 9.82% (982 basis points). The average of all changes was (0.10)% ( (10) basis points).
(4)Median of LTM (last twelve months) EBITDA multiples of comparable companies.
(5)The significant unobservable input used in the fair value measurement of the Company’s equity investments is the Multiple. Significant increases (decreases) in the Multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2024:

Description:

    

Fair Value

    

Valuation Technique

    

Unobservable Inputs

    

Range (Average)(1)(3)

First lien debt

$

778,177,769

 

Income approach(2)

 

HY credit spreads

-3.39% to 8.32% (-0.54%)

 

 

Risk free rates

-1.18% to 2.44% (0.19%)

Market approach(2)

 

Market multiples

4.6x to 26.3x (13.3x)(4)

$

77,918,486

Transaction value

Transaction price

N/A

Second lien debt

$

11,948,850

Income approach(2)

 

HY credit spreads

-0.72% to -0.32% (-0.46%)

 

 

Risk free rates

-0.35% to 0.14% (-0.04%)

 

Market approach(2)

 

Market multiples

5.3 to 11.8x (9.4x)(4)

Unsecured debt

$

6,581,668

Income approach(2)

 

HY credit spreads

0.18% to 0.18% (0.18%)

 

 

Risk free rates

-0.18% to -0.18% (-0.18%)

$

30,825

 

Transaction value

Transaction price

N/A

Equity investments

$

64,002,282

 

Market approach(5)

 

EBITDA multiple

3.5x to 18.3x (10.4x)

$

14,837,808

Transaction value

Transaction price

N/A

Total Long Term Level 3 Investments

$

953,497,688

 

  

 

  

  

(1)Weighted average based on fair value as of December 31, 2024.
(2)Inclusive of but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach, which is based on discounting future cash flows using an appropriate market yield.
(3)The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors would result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for a first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed and the valuation date ranged from (3.39)% (339) basis points) to 8.32% (832 basis points). The average of all changes was (0.54)% ( (54) basis points).
(4)Median of LTM (last twelve months) EBITDA multiples of comparable companies.
(5)The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the Multiple. Significant increases (decreases) in the Multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.