Fair Value

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value

Note 4. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access.

Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a)Quoted prices for similar assets or liabilities in active markets;

b)Quoted prices for identical or similar assets or liabilities in non-active markets;

c)Pricing models whose inputs are observable for substantially the full term of the asset or liability; and

d)Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s and, if applicable, an

independent third-party valuation firm’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3).

Gains and losses for assets and liabilities categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but could be classified as Level 1.

The following tables present the balances of assets measured at fair value on a recurring basis, as of June 30, 2025 and December 31, 2024:

Fair Value Measurements

As of June 30, 2025

	Level 1		Level 2		Level 3		Total
Assets:
Bank Debt/Senior Secured Loans	$	—	$	—	$	222,764	$	222,764
Preferred Equity		—		—		10,688		10,688
Common Equity/Equity Interests/Warrants		41		—		9,035		9,076
Total Investments	$	41	$	—	$	242,487	$	242,528

While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the
Company’s debt obligations were carried at fair value at June 30, 2025, the fair value of the DB Facility and the Subscription Facility (each as defined below) would be $113,000 and $0, respectively. All debt obligations would be considered Level 3 liabilities and would be valued with market yield as the unobservable input.

Fair Value Measurements

As of December 31, 2024

	Level 1		Level 2		Level 3		Total
Assets:
Bank Debt/Senior Secured Loans	$	—	$	—	$	294,802	$	294,802
Preferred Equity		—		—		10,223		10,223
Common Equity/Equity Interests/Warrants		46		—		11,484		11,530
Total Investments	$	46	$	—	$	316,509	$	316,555

While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the
Company’s debt obligations were carried at fair value at December 31, 2024, the fair value of the DB Facility and the Subscription Facility would be $167,000 and $0, respectively. All debt obligations would be considered Level 3 liabilities and would be valued with market yield as the unobservable input.

The following table provides a summary of the changes in fair value of Level 3 assets for the three and six months ended June 30, 2025, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at June 30, 2025:

	Bank Debt/Senior Secured Loans			Preferred Equity			Common Equity/Equity Interests/ Warrants			Total
Fair value, March 31, 2025	$	255,323		$	10,453		$	9,542		$	275,318
Total gains or losses included in earnings:
Net realized gain		—			—			—			—
Net change in unrealized gain (loss)		(1,465	)		(38	)		(870	)		(2,373	)
Purchase of investment securities*		537			273			363			1,173
Proceeds from dispositions of investment securities		(31,631	)		—			—			(31,631	)
Transfers into Level 3		—			—			—			—
Transfers out of Level 3		—			—			—			—
Fair value, June 30, 2025	$	222,764		$	10,688		$	9,035		$	242,487
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain (loss)	$	(1,330	)	$	(38	)	$	(870	)	$	(2,238	)

* Includes PIK capitalization and accretion of discount.

	Bank Debt/Senior Secured Loans			Preferred Equity			Common Equity/Equity Interests/ Warrants			Total
Fair value, December 31, 2024	$	294,802		$	10,223		$	11,484		$	316,509
Total gains or losses included in earnings:
Net realized gain		—			—			—			—
Net change in unrealized gain (loss)		(2,255	)		(76	)		(3,315	)		(5,646	)
Purchase of investment securities*		1,229			541			866			2,636
Proceeds from dispositions of investment securities		(71,012	)		—			—			(71,012	)
Transfers into Level 3		—			—			—			—
Transfers out of Level 3		—			—			—			—
Fair value, June 30, 2025	$	222,764		$	10,688		$	9,035		$	242,487
Unrealized gains for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain	$	(1,480	)	$	(76	)	$	(3,315	)	$	(4,871	)

* Includes PIK capitalization and accretion of discount.

The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2024, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2024:

	Bank Debt/Senior Secured Loans			Preferred Equity		Common Equity/Equity Interests/ Warrants			Total
Fair value, December 31, 2023	$	406,543		$	—	$	13,975		$	420,518
Total gains or losses included in earnings:
Net realized gain		71			—		—			71
Net change in unrealized gain (loss)		(1,454	)		470		(2,498	)		(3,482	)
Purchase of investment securities*		15,144			9,753		125			25,022
Proceeds from dispositions of investment securities		(125,502	)		—		(118	)		(125,620	)
Transfers into Level 3		—			—		—			—
Transfers out of Level 3		—			—		—			—
Fair value, December 31, 2024	$	294,802		$	10,223	$	11,484		$	316,509
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain (loss)	$	(1,278	)	$	470	$	(2,498	)	$	(3,306	)

* Includes PIK capitalization and accretion of discount.

Quantitative Information about Level 3 Fair Value Measurements

The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, 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 current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company.

Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and EBITDA multiples of similar companies, and comparable market transactions for equity securities.

Quantitative information about the Company’s Level 3 asset fair value measurements as of June 30, 2025 is summarized in the table below:

	Asset or Liability	Fair Value at June 30, 2025		Principal Valuation Technique/ Methodology	Unobservable Input	Range (Weighted Average)
Bank Debt/Senior Secured Loans	Asset	$	222,764	Income Approach	Market Yield	9.2% - 19.0% (11.8%)
Preferred Equity	Asset	$	10,688	Income Approach	Market Yield	9.0% - 9.0% (9.0%)
Common Equity/Equity Interests/Warrants	Asset	$	14	Market Approach	Volatility	18.6% - 18.6% (18.6%)
		$	224	Transaction Price*	N/A	N/A
		$	8,797	EBITDA Multiple	Comparable Multiple	5.5x-6.5x (6.0x)

* This asset was valued at $2.18 per share, which is the price per share paid to the stockholders at the time of the closing of the transaction.

Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask spreads, if applicable, would result in a significantly lower or higher fair value measurement for such assets. Generally, an increase in market yields may result in a decrease in the fair value of certain of the Company’s investments. Weighted averages in the above table are calculated based on the fair value of the underlying assets.

Quantitative information about the Company’s Level 3 asset fair value measurements as of December 31, 2024 is summarized in the table below:

	Asset or Liability	Fair Value at December 31, 2024		Principal Valuation Technique/Methodology	Unobservable Input	Range (Weighted Average)
Bank Debt/Senior Secured Loans	Asset	$	294,802	Income Approach	Market Yield	9.2% - 17.4% (11.4%)
Preferred Equity	Asset	$	10,223	Income Approach	Market Yield	9.0% - 9.0% (9.0%)
Common Equity/Equity Interests/Warrants	Asset	$	20	Market Approach	Volatility	22.9% - 22.9% (22.9%)
		$	224	Transaction Price*	N/A	N/A
		$	11,240	EBITDA Multiple	Comparable Multiple	5.5x-6.5x (6.0x)

* This asset was valued at $2.18 per share, which is the price per share paid to the stockholders at the time of the closing of the transaction.

Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask spreads, if applicable, would result in a significantly lower or higher fair value measurement for such assets. Generally, an increase in market yields may result in a decrease in the fair value of certain of the Company’s investments