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Investments (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Investments Measured at Fair Value on a Recurring Basis

Investments measured at fair value on a recurring basis are categorized in the following table based upon the lowest level of significant input to the valuations as of March 31, 2025 and December 31, 2024. The Company transfers investments in and out of Levels 1, 2 and 3 as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period.


Investment Type (in thousands)	March 31, 2025								December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Debt investments	$	—	$	—	$	304,515	$	304,515	$	—	$	—	$	318,838	$	318,838
Warrant investments	—		—		24,918		24,918		—		—		24,111		24,111
Equity investments	—		—		17,391		17,391		—		—		16,948		16,948
Total portfolio company investments	$	—	$	—	$	346,824	$	346,824	$	—	$	—	$	359,897	$	359,897
Derivative instruments(1)	—		(349)		—		(349)		—		423		—		423
Total investments, including derivative instruments	$	—	$	(349)	$	346,824	$	346,475	$	—	$	423	$	359,897	$	360,320

_______________

(1)Derivative instruments are carried at fair value and a level 2 security within the Company’s fair value hierarchy.

Schedule of Rollforward of Level 3 Investments Measured at Fair Value

The following table shows information about Level 3 portfolio company investments measured at fair value for the three months ended March 31, 2025 and 2024. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the net unrealized gains and losses for assets within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.


Level 3 Investment Activity (in thousands)	For the Three Months Ended March 31, 2025
	Debt Investments		Warrant Investments		Equity Investments		Total Portfolio Company Investments
Fair value as of December 31, 2024	$	318,838	$	24,111	$	16,948	$	359,897
Funding and purchases of investments, at cost	17,147		409		592		18,148
Principal payments and sale proceeds received from investments	(19,440)		(292)		—		(19,732)
Amortization and accretion of premiums and discounts, net and end-of term payments	1,578		—		—		1,578
Realized losses on investments	(2,962)		(637)		—		(3,599)
Net change in unrealized gains (losses) included in earnings	(11,466)		1,327		(149)		(10,288)
Payment-in-kind coupon	820		—		—		820
Transfers between investments	—		—		—		—
Gross transfers out of Level 3(1)	—		—		—		—
Fair value as of March 31, 2025	$	304,515	$	24,918	$	17,391	$	346,824

Net change in unrealized gains / (losses) on Level 3 investments held as of March 31, 2025	$	(15,134)	$	483	$	(149)	$	(14,800)


Level 3 Investment Activity (in thousands)	For the Three Months Ended March 31, 2024
	Debt Investments		Warrant Investments		Equity Investments		Total Portfolio Company Investments
Fair value as of December 31, 2023	$	375,025	$	16,915	$	8,255	$	400,195
Funding and purchases of investments, at cost	27,035		436		1,393		28,864
Principal payments and sale proceeds received from investments	(22,318)		(6)		—		(22,324)
Amortization and accretion of premiums and discounts, net and end-of term payments	1,198		—		—		1,198
Realized losses on investments	(3,208)		(94)		—		(3,302)
Net change in unrealized gains (losses) included in earnings	(1,829)		(861)		(7)		(2,697)
Payment-in-kind coupon	885		—		—		885
Gross transfers out of Level 3(1)	—		—		—		—
Fair value as of March 31, 2024	$	376,788	$	16,390	$	9,641	$	402,819

Net change in unrealized gains (losses) on Level 3 investments held as of March 31, 2024	$	(2,713)	$	(355)	$	(7)	$	(3,075)

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(1)Transfers out of Level 3 are measured as of the date of the transfer. There were no transfers out of Level 3 during the three months ended March 31, 2025 or the three months ended March 31, 2024.

Schedule of Quantitative Information About the Level 3 Fair Value Measurements

The following tables show a summary of quantitative information about the Level 3 fair value measurements of portfolio company investments as of March 31, 2025 and December 31, 2024. In addition to the techniques and inputs noted in the tables below, the Company may also use other valuation techniques and methodologies when determining fair value measurements.

Level 3 Investments
(dollars in thousands)

March 31, 2025

Fair Value

Valuation Technique

Unobservable Inputs

Range

Weighted Average

Debt investments

293,441

Discounted Cash Flows

Discount Rate

10.32% - 56.98%

19.06%

11,074

Probability-Weighted Expected Return Method

Probability Weighting of Alternative Outcomes

20.00% - 100.00%

80.64%

Warrant investments

24,918

Black Scholes Option Pricing Model

Revenue Multiples

0.40x - 56.90x

5.08x

Volatility

35.00% - 90.00%

65.41%

Term

0.50 - 5.50 Years

3.39 Years

Risk Free Rate

0.17% - 4.87%

3.52%

Equity investments

17,391

Black Scholes Option Pricing Model

Volatility

40.00% - 90.00%

56.64%

Term

1.75 - 4.00 Years

3.08 Years

Risk Free Rate

0.46% - 4.86%

3.35%

Revenue Multiples

0.70x - 11.00x

2.42x

Total portfolio company investments

346,824

Level 3 Investments
(dollars in thousands)

December 31, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range

Weighted Average

Debt investments

311,488

Discounted Cash Flows

Discount Rate

10.12% - 37.73%

18.04%

7,350

Probability-Weighted Expected Return Method

Probability Weighting of Alternative Outcomes

25.00% - 100.00%

78.37%

Warrant investments

24,111

Black Scholes Option Pricing Model

Revenue Multiples

0.40x - 56.90x

3.80x

Volatility

35.00% - 90.00%

65.44%

Term

0.50 - 5.50 Years

3.40 Years

Risk Free Rate

0.17% - 4.87%

3.64%

Equity investments

16,948

Black Scholes Option Pricing Model

Volatility

50.00% - 90.00%

56.78%

Term

1.75 - 4.00 Years

3.08 Years

Risk Free Rate

0.46% - 4.86%

3.35%

Revenue Multiples

0.70x - 11.00x

2.34x

Total portfolio company investments

359,897

Schedule of Derivative Instruments Not Designated as Hedging Instruments

The following table shows a summary of the fair value and location of the Company’s derivative instruments in the Consolidated Statements of Assets and Liabilities held as of March 31, 2025 and December 31, 2024:


		Fair Value as of
Derivative Instrument	Statement Location	March 31, 2025		December 31, 2024
Foreign currency forward contracts	Other accrued expenses and liabilities	$	(349)	$	—
Foreign currency forward contracts	Prepaid expenses and other assets	—		423
Total		$	(349)	$	423

Net realized and unrealized gains and losses on derivative instruments recorded by the Company during three months ended March 31, 2025 and 2024 are in the following locations in the Consolidated Statements of Operations:


		For the Three Months Ended March 31,
Derivative Instrument	Statement Location	2025		2024
Foreign currency forward contracts	Net realized gains/(losses) on investments	$	478	$	(329)
Foreign currency forward contracts	Net change in unrealized gains/(losses) on investments	(772)		471
Total		$	(294)	$	142

Schedule of Offsetting Assets

The following tables show the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

Counterparty

Derivative Assets Subject to Master Netting Agreement

Derivatives Available for Offset

Non-cash Collateral Received(1)

Cash Collateral Received(1)

Net Amount of Derivative Assets(2)

Zions Bancorporation, N.A.

—

Total

—


Counterparty	Derivative Liabilities Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Received(1)		Cash Collateral Received(1)		Net Amount of Derivative Liabilities(3)
Zions Bancorporation, N.A.	$	(349)	$	—	$	—	$	—	$	(349)
Total	$	(349)	$	—	$	—	$	—	$	(349)


	As of December 31, 2024
Counterparty	Derivative Assets Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Received(1)		Cash Collateral Received(1)		Net Amount of Derivative Assets(2)
Zions Bancorporation, N.A.	$	423	$	—	$	—	$	—	$	423
Total	$	423	$	—	$	—	$	—	$	423

Counterparty

Derivative Liabilities Subject to Master Netting Agreement

Derivatives Available for Offset

Non-cash Collateral Received(1)

Cash Collateral Received(1)

Net Amount of Derivative Liabilities(3)

Zions Bancorporation, N.A.

—

Total

—

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(1)In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

(2)Net amount of derivative assets represents the net amount due from the counterparty to the Company.

(3)Net amount of derivative liabilities represents the net amount due from the Company to the counterparty.

- 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.

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