Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of fair value measurements of investments and foreign currency forward contracts, by major class according to the fair value hierarchy


	Fair Value Measurements
March 31, 2023	Level 1		Level 2		Level 3		Total
Senior secured loans	$	—	$	—	$	1,320,148	$	1,320,148
Unitranche secured loans		—		—		128,380		128,380
Junior secured loans		—		—		44,633		44,633
Equity securities		52		—		50,697		50,749
Total investments	$	52	$	—	$	1,543,858	$	1,543,910
Foreign currency forward contracts asset (liability)	$	—	$	1,409	$	—	$	1,409


	Fair Value Measurements
December 31, 2022	Level 1		Level 2		Level 3		Total
Senior secured loans	$	—	$	—	$	1,250,788	$	1,250,788
Unitranche secured loans		—		—		127,378		127,378
Junior secured loans		—		—		44,469		44,469
Equity securities		34		—		46,327		46,361
Total investments	$	34	$	—	$	1,468,962	$	1,468,996
Foreign currency forward contracts asset (liability)	$	—	$	1,296	$	—	$	1,296

Schedule of reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs


	Investments
	Senior		Unitranche		Junior		Equity		Total
	secured loans		secured loans		secured loans		securities		investments
Balance as of December 31, 2022	$	1,250,788	$	127,378	$	44,469	$	46,327	$	1,468,962
Net realized gain (loss) on investments		(5)		—		—		949		944
Net change in unrealized gain (loss) on investments		3,738		265		84		501		4,588
Purchases of investments and other adjustments to cost ⁽¹⁾		97,250		890		2,119		3,882		104,141
Proceeds from principal payments and sales of investments ⁽²⁾		(31,623)		(153)		(2,039)		(962)		(34,777)
Reclassifications ⁽³⁾		—		—		—		—		—
Balance as of March 31, 2023	$	1,320,148	$	128,380	$	44,633	$	50,697	$	1,543,858


	Investments
	Senior		Unitranche		Junior		Equity		Total
	secured loans		secured loans		secured loans		securities		investments
Balance as of December 31, 2021	$	638,120	$	30,161	$	18,580	$	17,790	$	704,651
Net realized gain (loss) on investments		25		—		—		—		25
Net change in unrealized gain (loss) on investments		1,091		627		(255)		1,521		2,984
Purchases of investments and other adjustments to cost ⁽¹⁾		56,166		3,345		19,078		2,559		81,148
Proceeds from principal payments and sales of investments ⁽²⁾		(22,238)		(34)		—		—		(22,272)
Reclassifications ⁽³⁾		(17,215)		17,215		—		—		—
Balance as of March 31, 2022	$	655,949	$	51,314	$	37,403	$	21,870	$	766,536

(1)	Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.

(2)	Represents net proceeds from investments sold and principal paydowns received.

(3)	Represents non-cash reclassification of investment type due to a restructuring.

Schedule of valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of March 31, 2023 were as follows:


						Weighted
					Unobservable	Average		Range
	Fair Value			Valuation Technique	Input	Mean		Minimum		Maximum
Assets:
Senior secured loans	$	817,101		Discounted cash flow	EBITDA multiples	11.1	x	4.0	x	19.5	x
					Market yields	11.0	%	8.3	%	20.8	%
Senior secured loans		380,294		Discounted cash flow	Revenue multiples	7.3	x	1.4	x	20.0	x
					Market yields	11.4	%	9.5	%	16.6	%
Senior secured loans		2,376		Enterprise value	Revenue multiples	0.8	x	0.8	x	0.8	x
Unitranche secured loans		95,974		Discounted cash flow	EBITDA multiples	9.7	x	8.3	x	14.5	x
					Market yields	14.5	%	8.7	%	25.1	%
Unitranche secured loans		32,406		Discounted cash flow	Revenue multiples	9.4	x	6.0	x	12.5	x
					Market yields	11.4	%	11.2	%	11.7	%
Junior secured loans		44,633		Discounted cash flow	Market yields	13.0	%	12.4	%	15.6	%
Equity securities		35,515		Enterprise value	EBITDA multiples	11.8	x	4.0	x	18.6	x
Equity securities		13,172		Enterprise value	Revenue multiples	5.2	x	1.4	x	11.3	x
Equity securities		1,402		Option pricing model	Volatility	62.9	%	45.0	%	74.0	%
Total Level 3 Assets	$	1,422,873	⁽¹⁾

(1)	Excludes investments of $120,985 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December 31, 2022 were as follows:


						Weighted
	Fair				Unobservable	Average		Range
	Value			Valuation Technique	Input	Mean		Minimum		Maximum
Assets:
Senior secured loans	$	790,762		Discounted cash flow	EBITDA multiples	10.7	x	3.8	x	18.6	x
					Market yields	10.9	%	8.7	%	22.3	%
Senior secured loans		354,158		Discounted cash flow	Revenue multiples	7.3	x	1.4	x	20.0	x
					Market yields	11.5	%	10.0	%	21.6	%
Unitranche secured loans		95,341		Discounted cash flow	EBITDA multiples	9.9	x	8.5	x	15.5	x
					Market yields	12.1	%	9.2	%	13.8	%
Unitranche secured loans		32,037		Discounted cash flow	Revenue multiples	9.3	x	5.8	x	12.5	x
					Market yields	11.8	%	11.6	%	12.1	%
Junior secured loans		44,469		Discounted cash flow	Market yields	13.7	%	12.3	%	20.4	%
Equity securities		31,060		Enterprise value	EBITDA multiples	10.9	x	3.8	x	17.9	x
Equity securities		13,400		Enterprise value	Revenue multiples	5.1	x	1.9	x	12.3	x
Equity securities		1,261		Option pricing model	Volatility	75.1	%	49.4	%	126.4	%
Total Level 3 Assets	$	1,362,488	⁽¹⁾

(1)	Excludes investments of $106,474 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.