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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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 September 30, 2024 and December 31, 2023, according to the fair value hierarchy:


As of September 30, 2024	Level 1		Level 2		Level 3		Total
Assets:
First-Lien Debt	$	—	$	52,036	$	1,791,571	$	1,843,607
Subordinated Debt 1	—		—		169,455		169,455
Equity Investments	—		—		33,825		33,825
Cash Equivalents	62,480		—		—		62,480
Total	$	62,480	$	52,036	$	1,994,851	$	2,109,367

_____________________

1 Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $67,947, mezzanine debt of $99,925 and $1,583 of structured debt.


As of December 31, 2023	Level 1		Level 2		Level 3		Total
Assets:
First-Lien Debt	$	—	$	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 September 30, 2024
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of June 30, 2024	$	1,724,399	$	154,692	$	32,176	$	1,911,267
Purchase of investments	185,445		14,802		1,372		201,619
Proceeds from principal repayments and sales of investments	(120,908)		(4,103)		—		(125,011)
Payment-in-kind interest	172		2,331		—		2,503
Amortization of premium/accretion of discount, net	708		119		—		827
Net realized gain (loss) on investments	810		103		—		913
Net change in unrealized appreciation (depreciation) on investments	2,233		1,511		277		4,021
Transfers out of Level 3 (1)	(17,813)		—		—		(17,813)
Transfers to Level 3 (1)	16,525		—		—		16,525

Balance as of September 30, 2024	$	1,791,571	$	169,455	$	33,825	$	1,994,851

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2024	$	2,661	$	1,564	$	277	$	4,502


	As of and for the Nine Months Ended September 30, 2024
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2023	$	1,393,011	$	174,696	$	30,807	$	1,598,514
Purchase of investments	626,552		24,953		4,360		655,865
Proceeds from principal repayments and sales of investments	(244,709)		(22,692)		(73)		(267,474)
Payment-in-kind interest	580		5,444		—		6,024
Amortization of premium/accretion of discount, net	118		420		—		538
Net realized gain (loss) on investments	(2,176)		375		—		(1,801)
Net change in unrealized appreciation (depreciation) on investments	10,594		(13,741)		(1,269)		(4,416)
Transfers out of Level 3 (1)	(11,899)		—		—		(11,899)
Transfers to Level 3 (1)	19,500		—		—		19,500

Balance as of September 30, 2024	$	1,791,571	$	169,455	$	33,825	$	1,994,851

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2024	$	5,370	$	(13,916)	$	(1,269)	$	(9,815)

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and nine months ended September 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 September 30, 2023
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of June 30, 2023	$	1,152,917	$	155,148	$	24,894	$	1,332,959
Purchase of investments	126,344		19,437		5,064		150,845
Proceeds from principal repayments and sales of investments	(17,172)		(252)		—		(17,424)
Payment-in-kind interest	—		951		—		951
Amortization of premium/accretion of discount, net	373		82		—		455
Net realized gain (loss) on investments	(13,153)		1		—		(13,152)
Net change in unrealized appreciation (depreciation) on investments	14,327		(549)		(1,943)		11,835
Transfers out of Level 3 (1)	(9,540)		(8,360)		—		(17,900)

Balance as of September 30, 2023	$	1,254,096	$	166,458	$	28,015	$	1,448,569

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2023	$	2,153	$	(548)	$	(1,943)	$	(338)


	As of and for the Nine Months Ended September 30, 2023
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2022	$	1,016,856	$	133,243	$	27,313	$	1,177,412
Purchase of investments	290,203		54,688		7,880		352,771
Proceeds from principal repayments and sales of investments	(41,652)		(12,300)		(8,667)		(62,619)
Payment-in-kind interest	—		1,823		—		1,823
Amortization of premium/accretion of discount, net	1,642		314		—		1,956
Net realized gain (loss) on investments	(12,762)		197		6,111		(6,454)
Net change in unrealized appreciation (depreciation) on investments	5,503		(3,060)		(4,622)		(2,179)
Transfers out of Level 3 (1)	(14,042)		(8,447)		—		(22,489)
Transfers to Level 3 (1)	8,348		—		—		8,348
Balance as of September 30, 2023	$	1,254,096	$	166,458	$	28,015	$	1,448,569

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2023	$	(1,035)	$	(3,036)	$	1,426	$	(2,645)

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the three and nine months ended September 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 September 30, 2024 and December 31, 2023 were as follows:

Investment Type

Fair Value at September 30, 2024

Valuation Techniques

Unobservable Inputs

Ranges

Weighted Average

First-Lien Debt

1,584,187

Yield Method

Market Yield Discount Rates

6.09%

22.50%

9.48%

First-Lien Debt

19,979

Market Approach

EBITDA Multiple

6.50x

12.00x

9.15x

Subordinated Debt

152,687

Yield Method

Market Yield Discount Rates

11.46%

25.41%

15.00%

Subordinated Debt

1,800

Market Approach

EBITDA Multiple

8.63x

Subordinated Debt

1,825

Black-Scholes

EBITDA Multiple

11.25x

Equity

168

Yield Method

Market Yield Discount Rates

8.36%

Equity

33,160

Market Approach

EBITDA Multiple

5.75x

20.50x

11.85x

Equity

Market Approach

Revenue Multiple

0.85x

Total

1,793,812

First-Lien Debt in the amount of $187,405, Subordinated Debt in the amount of $13,143 and equity investments in the amount of $491 at September 30, 2024 have been excluded from the table above, because 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 Debt

1,192,190

Yield Method

Market Yield Discount Rates

6.13%

18.73%

10.63%

First-Lien Debt

19,519

Market Approach

EBITDA Multiple

6.50x

9.25x

7.21x

Subordinated Debt

162,646

Yield Method

Market Yield Discount Rates

9.70%

24.91%

14.44%

Equity

158

Yield Method

Market Yield Discount Rates

8.36%

Equity

29,390

Market Approach

EBITDA Multiple

6.50x

19.50x

10.96x

Equity

Market Approach

Blended EBITDA Multiple

13.25x

Blended Revenue Multiple

1.40x

Total

1,403,905

First-Lien Debt in the amount of $181,302, Subordinated Debt in the amount of $12,050 and equity investments in the amount of $1,257 at December 31, 2023 have been excluded from the table above, because 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:


	September 30, 2024				December 31, 2023
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value
Wells Fargo Financing Facility	$	95,000	$	95,000	$	231,000	$	231,000

SMBC Financing Facility	122,500		122,500		37,377		37,377
Revolving Credit Facility	112,750		112,750		126,500		126,500
2022 Debt	342,000		345,256		342,000		338,345
2023 Debt	214,714		217,238		215,000		213,976
2024 Debt	215,000		216,317		—		—
Total	$	1,101,964	$	1,109,061	$	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