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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value Measurements of Investments, by Major Class, and Cash Equivalents

The following tables present fair value measurements of investments, by major class, and cash equivalents as of June 30, 2024 and December 31, 2023, according to the fair value hierarchy:


As of June 30, 2024	Level 1		Level 2		Level 3		Total
Assets:
First Lien Term Loans	$	—	$	79,589	$	1,724,399	$	1,803,988
Subordinated Debt 1	—		—		154,692		154,692
Equity Investments	—		—		32,176		32,176
Cash Equivalents	67,685		—		—		67,685
Total	$	67,685	$	79,589	$	1,911,267	$	2,058,541

_____________________

1 Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $64,121, mezzanine debt of $89,329 and $1,242 of structured debt.


As of December 31, 2023	Level 1		Level 2		Level 3		Total
Assets:
First Lien Term Loans	$	—	$	34,481	$	1,393,011	$	1,427,492
Subordinated Debt 1	—		8,691		174,696		183,387
Equity Investments	—		—		30,807		30,807
Cash Equivalents	64,477		—		—		64,477
Total	$	64,477	$	43,172	$	1,598,514	$	1,706,163

_____________________

1 Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $97,203, mezzanine debt of $83,528 and $2,656 of structured debt.

Schedule of Reconciliation of the Beginning and Ending Balances for Investments

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the following periods:


	As of and for the Three Months Ended June 30, 2024
	First Lien Term Loans		Subordinated Debt		Equity Investments		Total
Balance as of March 31, 2024	$	1,565,397	$	166,502	$	31,705	$	1,763,604
Purchase of investments	280,494		9,296		2,490		292,280
Proceeds from principal repayments and sales of investments	(84,180)		(12,506)		—		(96,686)
Payment-in-kind interest	148		1,381		—		1,529
Amortization of premium/accretion of discount, net	(1,418)		138		—		(1,280)
Net realized gain (loss) on investments	846		131		—		977
Net change in unrealized appreciation (depreciation) on investments	(23)		(10,250)		(2,019)		(12,292)
Transfers out of Level 3 (1)	(36,865)		—		—		(36,865)


Balance as of June 30, 2024	$	1,724,399	$	154,692	$	32,176	$	1,911,267

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2024	$	(23)	$	(10,250)	$	(2,019)	$	(12,292)


	As of and for the Six Months Ended June 30, 2024
	First Lien Term Loans		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2023	$	1,393,011	$	174,696	$	30,807	$	1,598,514
Purchase of investments	452,091		10,150		2,987		465,228
Proceeds from principal repayments and sales of investments	(123,781)		(18,589)		(73)		(142,443)
Payment-in-kind interest	408		3,113		—		3,521
Amortization of premium/accretion of discount, net	(593)		302		—		(291)
Net realized gain (loss) on investments	(2,985)		272		—		(2,713)
Net change in unrealized appreciation (depreciation) on investments	8,322		(15,252)		(1,545)		(8,475)
Transfers out of Level 3 (1)	(11,899)		—		—		(11,899)
Transfers to Level 3 (1)	9,825		—		—		9,825

Balance as of June 30, 2024	$	1,724,399	$	154,692	$	32,176	$	1,911,267

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2024	$	3,368	$	(15,501)	$	(1,545)	$	(13,678)

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2024, transfers into Level 3 from Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies.


	As of and for the Three Months Ended June 30, 2023
	First Lien Term Loans		Subordinated Debt		Equity Investments		Total
Balance as of March 31, 2023	$	1,074,567	$	139,589	$	22,276	$	1,236,432
Purchase of investments	85,366		15,798		924		102,088
Proceeds from principal repayments and sales of investments	(5,683)		(14)		—		(5,697)
Payment-in-kind interest	(15)		566		—		551
Amortization of premium/accretion of discount, net	525		95		—		620
Net realized gain (loss) on investments	218		—		—		218
Net change in unrealized appreciation (depreciation) on investments	(5,166)		(886)		1,694		(4,358)
Transfers out of Level 3 (1)	(6,127)		—		—		(6,127)
Transfers to Level 3 (1)	9,232		—		—		9,232
Balance as of June 30, 2023	$	1,152,917	$	155,148	$	24,894	$	1,332,959

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2023	$	(5,838)	$	(886)	$	1,694	$	(5,030)


	As of and for the Six Months Ended June 30, 2023
	First Lien Term Loans		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2022	$	1,016,856	$	133,243	$	27,313	$	1,177,412
Purchase of investments	163,859		35,251		2,816		201,926
Proceeds from principal repayments and sales of investments	(24,530)		(12,048)		(8,667)		(45,245)
Payment-in-kind interest	—		872		—		872
Amortization of premium/accretion of discount, net	1,274		237		—		1,511
Net realized gain (loss) on investments	391		197		6,111		6,699
Net change in unrealized appreciation (depreciation) on investments	(8,791)		(2,604)		(2,679)		(14,074)
Transfers out of Level 3 (1)	(14,042)		—		—		(14,042)
Transfers to Level 3 (1)	17,900		—		—		17,900
Balance as of June 30, 2023	$	1,152,917	$	155,148	$	24,894	$	1,332,959

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of June 30, 2023	$	(9,544)	$	(2,580)	$	3,369	$	(8,755)

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and six months ended June 30, 2023, transfers into Level 3 from Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies.

Schedule of Valuation Techniques and Significant Unobservable Inputs Used in Level 3 Fair Value Measurements of Assets

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of June 30, 2024 and December 31, 2023 were as follows:


Investment Type	Fair Value at June 30, 2024		Valuation Techniques	Unobservable Inputs	Ranges						Weighted Average
First Lien Term Loans	$	1,490,410	Yield Method	Market Yield Discount Rates	6.09		%	22.50		%	10.56		%
First Lien Term Loans	21,236		Market Approach	EBITDA Multiple	6.50x			13.50x			9.31x
First Lien Term Loans	212,753		Recent Transactions	Transaction Price	$	97.31		$	100.25		$	99.34
Subordinated Debt	136,322		Yield Method	Market Yield Discount Rates	12.25		%	24.91		%	15.16		%
Subordinated Debt	705		Market Approach	EBITDA Multiple	9.93x			9.93x			9.93x
Subordinated Debt	1,340		Black-Scholes	EBITDA Multiple	11.75x			11.75x			11.75x
Subordinated Debt	16,325		Recent Transactions	Transaction Price	$	90.25		$	98.03		$	94.16
Equity	2,333		Yield Method	Market Yield Discount Rates	8.36		%	15.50		%	12.91		%
Equity	27,842		Market Approach	EBITDA Multiple	5.75x			20.50x			12.01x
Total	$	1,909,266

Equity investments in the amount of $2,001 at June 30, 2024 have been excluded from the table above as the investments are valued using a recent transaction.


Investment Type	Fair Value at December 31, 2023		Valuation Techniques	Unobservable Inputs	Ranges						Weighted Average
First Lien Term Loans	$	1,192,190	Yield Method	Market Yield Discount Rates	6.13		%	18.73		%	10.63		%
First Lien Term Loans	19,519		Market Approach	EBITDA Multiple	6.50x			9.25x			7.21x
First Lien Term Loans	181,302		Recent Transactions	Transaction Price	$	59.50		$	100.00		$	97.52
Subordinated Debt	162,646		Yield Method	Market Yield Discount Rates	9.70		%	24.91		%	14.44		%
Subordinated Debt	12,050		Recent Transactions	Transaction Price	$	84.75		$	98.01		$	89.53
Equity	158		Yield Method	Market Yield Discount Rates	8.36		%	8.36		%	8.36		%
Equity	29,390		Market Approach	EBITDA Multiple	6.50x			19.50x			10.96x
Equity	2		Market Approach	Blended EBITDA Multiple	13.25x			13.25x			13.25x
				Blended Revenue Multiple	1.40x			1.40x			1.40x
Total	$	1,597,257

Equity investments in the amount of $1,257 at December 31, 2023 have been excluded from the table above as the investments are valued using a recent transaction.

Schedule of Carrying Value and Fair Value of Debt Obligations

The carrying value and fair value of the Company’s debt obligations were as follows:


	June 30, 2024				December 31, 2023
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value
Wells Fargo Financing Facility	$	69,000	$	69,000	$	231,000	$	231,000

SMBC Financing Facility	110,500		110,500		37,377		37,377
Revolving Credit Facility	77,250		77,250		126,500		126,500
2022 Debt	342,000		341,174		342,000		338,345
2023 Debt	215,000		217,329		215,000		213,976
2024 Debt	215,000		216,417		—		—
Total	$	1,028,750	$	1,031,670	$	951,877	$	947,198

_______________

(1)Carrying value on the consolidated statements of assets and liabilities are net of deferred financing costs.

- 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