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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures

The following tables present fair value measurements of investments, by major class, and cash equivalents as of September 30, 2025 and December 31, 2024, according to the fair value hierarchy:


As of September 30, 2025	Level 1		Level 2		Level 3		Measured at NAV (2)		Total
Assets:
First-Lien Debt	$	—	$	7,955	$	1,760,059	$	—	$	1,768,014
Subordinated Debt 1	—		6,149		152,778		—		158,927
Equity Investments	—		—		34,417		6,524		40,941
Cash Equivalents	42,029		—		—		—		42,029
Total investments and cash equivalents	$	42,029	$	14,104	$	1,947,254	$	6,524	$	2,009,911
Derivative asset	—		11,057		—		—		11,057
Total	$	42,029	$	25,161	$	1,947,254	$	6,524	$	2,020,968

______________

1 Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $72,488, mezzanine debt of $83,950 and $2,489 of structured debt.

2 Certain investments are measured at fair value using NAV as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.


As of December 31, 2024	Level 1		Level 2		Level 3		Total
Assets:
First-Lien Debt	$	—	$	78,793	$	1,806,850	$	1,885,643
Subordinated Debt 1	—		8,359		150,779		159,138
Equity Investments	—		—		36,598		36,598
Cash Equivalents	40,842		—		—		40,842
Total investments and cash equivalents	$	40,842	$	87,152	$	1,994,227	$	2,122,221

_______________

1 Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $67,780, mezzanine debt of $89,740 and $1,618 of structured debt.

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, 2025
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of June 30, 2025	$	1,790,722	$	160,006	$	35,529	$	1,986,257
Purchase of investments and other adjustments to cost (1)	28,804		3,444		1,598		33,846
Proceeds from principal repayments and sales of investments (1)	(54,682)		(2,270)		(1,440)		(58,392)
Payment-in-kind interest	517		1,852		—		2,369
Amortization of premium/accretion of discount, net	500		(25)		—		475
Net realized gain (loss) on investments	282		42		1,172		1,496
Net change in unrealized appreciation (depreciation) on investments	(349)		(1,410)		(2,442)		(4,201)
Transfers out of Level 3 (2)	(8,262)		(8,861)		—		(17,123)
Transfers to Level 3 (2)	2,527		—		—		2,527

Balance as of September 30, 2025	$	1,760,059	$	152,778	$	34,417	$	1,947,254

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2025	$	(244)	$	(1,380)	$	(1,668)	$	(3,292)


	As of and for the Nine Months Ended September 30, 2025
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2024	$	1,806,850	$	150,779	$	36,598	$	1,994,227
Purchase of investments and other adjustments to cost (1)	250,023		12,896		2,886		265,805
Proceeds from principal repayments and sales of investments (1)	(282,919)		(11,733)		(1,692)		(296,344)
Payment-in-kind interest	1,378		5,620		—		6,998
Amortization of premium/accretion of discount, net	1,197		259		1,595		3,051
Net realized gain (loss) on investments	(9,670)		148		1,321		(8,201)
Net change in unrealized appreciation (depreciation) on investments	(4,571)		(5,191)		(4,636)		(14,398)
Transfers out of Level 3 (2)	(15,433)		—		(1,655)		(17,088)
Transfers to Level 3 (2)	13,204		—		—		13,204

Balance as of September 30, 2025	$	1,760,059	$	152,778	$	34,417	$	1,947,254

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of September 30, 2025	$	(6,877)	$	(5,157)	$	(4,207)	$	(16,241)

_______________

(1) Includes reorganizations and restructuring of investments.

(2) 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, 2025, transfers into or out of Level 3 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, 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 and out of Level 3 were a result of changes in the observability of significant inputs for certain portfolio companies.

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of September 30, 2025 and December 31, 2024 were as follows:

Investment Type

Fair Value at September 30, 2025

Valuation Techniques

Unobservable Inputs

Ranges

Weighted Average

First-Lien Debt

1,722,303

Yield Method

Market Yield Discount Rates

7.37%

21.50%

9.41%

First-Lien Debt

11,079

Market Approach

EBITDA Multiple

6.25x

20.20x

12.22x

First-Lien Debt

3,082

Market Approach

Revenue Multiple

1.50x

Subordinated Debt

135,453

Yield Method

Market Yield Discount Rates

11.43%

27.00%

15.15%

Subordinated Debt

5,073

Market Approach

EBITDA Multiple

8.75x

Subordinated Debt

1,941

Market Approach

Revenue Multiple

1.20x

Subordinated Debt

2,317

Black-Scholes

EBITDA Multiple

6.11x

10.50x

8.47x

Equity

1,439

Yield Method

Market Yield Discount Rates

8.36%

16.41%

15.21%

Equity

31,380

Market Approach

EBITDA Multiple

6.11x

20.20x

12.58x

Total

1,914,067

First-Lien Debt in the amount of $23,595, Subordinated Debt in the amount of $7,994 and equity investments in the amount of $1,598 at September 30, 2025 have been excluded from the table above, because the investments are valued using a recent transaction.

Investment Type

Fair Value at December 31, 2024

Valuation Techniques

Unobservable Inputs

Ranges

Weighted Average

First-Lien Debt

1,680,013

Yield Method

Market Yield Discount Rates

5.83%

20.50%

10.13%

First-Lien Debt

16,215

Market Approach

EBITDA Multiple

6.50x

15.50x

7.32x

Subordinated Debt

143,952

Yield Method

Market Yield Discount Rates

12.00%

26.41%

15.46%

Subordinated Debt

2,032

Market Approach

EBITDA Multiple

5.25x

14.00x

12.85x

Subordinated Debt

1,896

Black-Scholes

EBITDA Multiple

11.00x

Equity

1,224

Yield Method

Market Yield Discount Rates

8.00%

9.25%

9.07%

Equity

35,147

Market Approach

EBITDA Multiple

5.25x

19.50x

11.18x

Equity

Market Approach

Revenue Multiple

0.95x

Total

1,880,503

First-Lien Debt in the amount of $110,622, Subordinated Debt in the amount of $2,899 and equity investments in the amount of $203 at December 31, 2024 have been excluded from the table above, because the investments are valued using a recent transaction.

Debt investments are generally valued using the yield method. Under the yield method, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to its total enterprise value, and the rights and remedies of the Company’s investment within the portfolio company’s capital structure. Debt investments also may be valued using a market approach. The market approach utilizes market value (EBITDA) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. Certain factors are considered when selecting the appropriate companies whose multiples are used in the valuation. These factors may include the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. A recent transaction, if applicable, also may be factored into the valuation if the transaction price is believed to be an indicator of value.

Equity investments are generally valued using a market approach, which utilizes market value (EBITDA or revenue) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The selected multiple is used to estimate the enterprise value of the underlying investment.

The significant unobservable input used under the yield method is a discount rate based on comparable market yields. Significant increases in discount rates in isolation would result in a significantly lower fair value measurement. The significant unobservable input used in the market approach is the performance multiple, which may include a revenue multiple, EBITDA multiple, or forward-looking metrics. The multiple is used to estimate the enterprise value of the underlying investment. An increase or decrease in the multiple would result in an increase or decrease, respectively, in the fair value.

Alternative valuation methodologies may be used as deemed appropriate, and may include, but are not limited to, a market approach, income approach, or liquidation (recovery) approach.

Weighted average inputs are calculated based on the relative fair value of the investments.

Financial Instruments disclosed but not carried at fair value

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


	September 30, 2025				December 31, 2024
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value
Wells Fargo Financing Facility	$	—	$	—	$	106,000	$	106,000
Revolving Credit Facility	55,500		55,500		237,750		237,750
2025 Debt / 2022 Debt	321,242		320,224		342,000		343,766
2023 Debt	213,572		214,289		214,429		217,446
2024 Debt	214,000		214,550		214,750		216,611
2030 Notes	310,970		309,930		—		—
Total	$	1,115,284	$	1,114,493	$	1,114,929	$	1,121,573

_______________

(1)Carrying value on the consolidated statements of assets and liabilities are net of deferred financing, issuance costs, and unamortized discount. Carrying value of the 2030 Notes reflects the cumulative hedging adjustments.

The carrying value of the Company's credit facilities approximates their fair value. These fair value measurements were based on significant inputs that are not observable and thus represent Level 3 measurements.

The fair value of the debt securitizations and 2030 Notes were based on market quotations(s) received from broker/dealer(s). These fair value measurements were based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly, and thus represent Level 2 measurements.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details