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Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Schedule of Composition of Investment Portfolio

The following table shows the composition of our investments as of June 30, 2024, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

 

 

 

 

 

 

 

 

Fair Value Hierarchy

 

 

Cost

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

First Lien Secured Debt

 

$

10,955,278

 

$

11,011,201

 

$

—

 

$

2,827,613

 

$

8,183,588

Second Lien Secured Debt

 

 

39,329

 

 

20,795

 

 

—

 

 

—

 

 

20,795

Unsecured Debt

 

 

234

 

 

230

 

 

—

 

 

230

 

 

—

Common Equity/Interests

 

 

676

 

 

721

 

 

—

 

 

—

 

 

721

Preferred Equity

 

 

217

 

 

123

 

 

—

 

 

—

 

 

123

Total Investments before Cash Equivalents

 

$

10,995,734

 

$

11,033,070

 

$

—

 

$

2,827,843

 

$

8,205,227

Money Market Fund

 

$

400,000

 

$

400,000

 

$

400,000

 

$

—

 

$

—

Total Cash Equivalents

 

$

400,000

 

$

400,000

 

$

400,000

 

$

—

 

$

—

Total Investments after Cash Equivalents

 

$

11,395,734

 

$

11,433,070

 

$

400,000

 

$

2,827,843

 

$

8,205,227

Currency swaps

 

$

—

 

$

1,430

 

$

—

 

$

1,430

 

$

—

Interest rate swaps

 

 

—

 

 

(4,579)

 

$

—

 

$

(4,579)

 

$

—

Foreign currency forward transactions

 

 

—

 

 

11,216

 

 

—

 

 

11,216

 

 

—

Total Assets and Liabilities at Fair Value

 

$

11,395,734

 

$

11,441,137

 

$

400,000

 

$

2,835,910

 

$

8,205,227

The following table shows the composition of our investments as of December 31, 2023, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

 

 

 

 

 

 

 

 

 

Fair Value Hierarchy

 

 

Cost

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

First Lien Secured Debt

 

$

6,633,492

 

$

6,680,870

 

$

—

 

$

1,324,780

 

$

5,356,090

Second Lien Secured Debt

 

 

39,474

 

 

28,808

 

 

—

 

 

—

 

 

28,808

Unsecured Debt

 

 

9,489

 

 

9,253

 

 

—

 

 

9,253

 

 

—

Common Equity/Interests

 

 

498

 

 

624

 

 

—

 

 

—

 

 

624

Preferred Equity

 

 

99

 

 

33

 

 

—

 

 

—

 

 

33

Total Investments before Cash Equivalents

 

$

6,683,052

 

$

6,719,588

 

$

—

 

$

1,334,033

 

$

5,385,555

Money Market Fund

 

$

55,000

 

$

55,000

 

$

55,000

 

$

—

 

$

—

Total Cash Equivalents

 

$

55,000

 

$

55,000

 

$

55,000

 

$

—

 

$

—

Total Investments after Cash Equivalents

 

$

6,738,052

 

$

6,774,588

 

$

55,000

 

$

1,334,033

 

$

5,385,555

Interest rate swaps

 

$

—

 

$

10,490

 

$

—

 

$

10,490

 

$

—

Foreign currency forward transactions

 

 

—

 

 

(3,681)

 

 

—

 

 

(3,681)

 

 

—

Total Assets and Liabilities at Fair Value

 

$

6,738,052

 

$

6,781,397

 

$

55,000

 

$

1,340,842

 

$

5,385,555

 
Schedule of Changes in Fair Value of Investments

The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2024:

 

 

Three Months Ended June 30, 2024

 

 

First Lien
Secured Debt (2)

 

Second Lien
Secured Debt (2)

 

Unsecured
Debt

 

Common Equity/Interests

 

Preferred Equity

 

Total

Fair value as of March 31, 2024

 

$

6,193,222

 

$

26,900

 

$

—

 

$

489

 

$

128

 

$

6,220,739

Net realized gains (losses)

 

 

13,651

 

 

—

 

 

—

 

 

—

 

 

—

 

 

13,651

Net change in unrealized gains (losses)

 

 

(13,871)

 

 

(6,032)

 

 

—

 

 

53

 

 

(5)

 

 

(19,855)

Net amortization on investments

 

 

5,955

 

 

(73)

 

 

—

 

 

—

 

 

—

 

 

5,882

Purchases, including capitalized PIK (3)

 

 

2,443,752

 

 

—

 

 

—

 

 

179

 

 

—

 

 

2,443,931

Sales (3)

 

 

(487,331)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(487,331)

Transfers out of Level 3 (1)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers into Level 3 (1)

 

 

28,209

 

 

—

 

 

—

 

 

—

 

 

—

 

 

28,209

Fair value as of June 30, 2024

 

$

8,183,587

 

$

20,795

 

$

—

 

$

721

 

$

123

 

$

8,205,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2024

 

$

5,746

 

$

(6,032)

 

$

—

 

$

53

 

$

(5)

 

$

(238)

The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2024:

 

 

Six Months Ended June 30, 2024

 

 

First Lien
Secured Debt (2)

 

Second Lien
Secured Debt (2)

 

Unsecured
Debt

 

Common Equity/Interests

 

Preferred Equity

 

Total

Fair value as of December 31, 2023

 

$

5,356,090

 

$

28,808

 

$

—

 

$

624

 

$

33

 

$

5,385,555

Net realized gains (losses)

 

 

19,671

 

 

—

 

 

—

 

 

—

 

 

—

 

 

19,671

Net change in unrealized gains (losses)

 

 

3,798

 

 

(7,868)

 

 

—

 

 

(82)

 

 

(29)

 

 

(4,181)

Net amortization on investments

 

 

11,556

 

 

(145)

 

 

—

 

 

—

 

 

—

 

 

11,411

Purchases, including capitalized PIK (3)

 

 

3,508,465

 

 

—

 

 

—

 

 

179

 

 

119

 

 

3,508,763

Sales (3)

 

 

(735,169)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(735,169)

Transfers out of Level 3 (1)

 

 

(4,183)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(4,183)

Transfers into Level 3 (1)

 

 

23,359

 

 

—

 

 

—

 

 

—

 

 

—

 

 

23,359

Fair value as of June 30, 2024

 

$

8,183,587

 

$

20,795

 

$

—

 

$

721

 

$

123

 

$

8,205,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2024

 

$

19,326

 

$

(7,868)

 

$

—

 

$

(82)

 

$

(29)

 

$

11,347

 

(1)
Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown.
(2)
Includes unfunded commitments measured at fair value of $(12,778).
(3)
Includes reorganizations and restructuring of investments.

 

 

The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2023:

 

 

Three Months Ended June 30, 2023

 

 

First Lien
Secured Debt (2)

 

Second Lien
Secured Debt (2)

 

Unsecured
Debt

 

Common Equity/Interests

 

Preferred Equity

 

Total

Fair value as of March 31, 2023

 

$

2,688,035

 

$

32,815

 

$

—

 

$

199

 

$

50

 

$

2,721,099

Net realized gains (losses)

 

 

200

 

 

—

 

 

—

 

 

—

 

 

—

 

 

200

Net change in unrealized gains (losses)

 

 

7,227

 

 

(221)

 

 

—

 

 

26

 

 

(24)

 

 

7,008

Net amortization on investments

 

 

2,238

 

 

(66)

 

 

—

 

 

—

 

 

—

 

 

2,172

Purchases, including capitalized PIK (3)

 

 

592,677

 

 

—

 

 

—

 

 

—

 

 

—

 

 

592,677

Sales (3)

 

 

(101,565)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(101,565)

Transfers out of Level 3 (1)

 

 

(6,023)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(6,023)

Transfers into Level 3 (1)

 

 

85,774

 

 

—

 

 

—

 

 

—

 

 

—

 

 

85,774

Fair value as of June 30, 2023

 

$

3,268,563

 

$

32,528

 

$

—

 

$

225

 

$

26

 

$

3,301,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2023

 

$

7,088

 

$

(220)

 

$

—

 

$

26

 

$

(25)

 

$

6,870

The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2023:

 

 

Six Months Ended June 30, 2023

 

 

First Lien
Secured Debt (2)

 

Second Lien
Secured Debt (2)

 

Unsecured
Debt

 

Common Equity/Interests

 

Preferred Equity

 

Total

Fair value as of December 31, 2022

 

$

2,829,970

 

$

—

 

$

—

 

$

205

 

$

56

 

$

2,830,231

Net realized gains (losses)

 

 

1,604

 

 

—

 

 

—

 

 

—

 

 

—

 

 

1,604

Net change in unrealized gains (losses)

 

 

27,548

 

 

(1,013)

 

 

—

 

 

20

 

 

(30)

 

 

26,525

Net amortization on investments

 

 

4,405

 

 

(132)

 

 

—

 

 

—

 

 

—

 

 

4,273

Purchases, including capitalized PIK (3)

 

 

904,703

 

 

33,673

 

 

—

 

 

—

 

 

—

 

 

938,376

Sales (3)

 

 

(456,826)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(456,826)

Transfers out of Level 3 (1)

 

 

(42,841)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(42,841)

Transfers into Level 3 (1)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Fair value as of June 30, 2023

 

$

3,268,563

 

$

32,528

 

$

—

 

$

225

 

$

26

 

$

3,301,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2023

 

$

26,353

 

$

(1,013)

 

$

—

 

$

20

 

$

(30)

 

$

25,330

 

(1)
Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown.
(2)
Includes unfunded commitments measured at fair value of $(6,219).
(3)
Includes reorganizations and restructuring of investments.
Summary of Unobservable Inputs Used in Fair Value Measurements of Level 3 Investments

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of June 30, 2024 and December 31, 2023. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below table is not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of June 30, 2024 were as follows:

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

 

Fair Value

 

Valuation Techniques/Methodologies

Unobservable Input

Range

Weighted Average (1)

First Lien Secured Debt

$

5,942,853

 

Discounted Cash Flow

Discount Rate

7.9%

-

23.4%

10.8%

 

 

2,227,109

 

Transactional Value

Cost

N/A

 

N/A

N/A

 

 

389

 

Asset Recoverability

Market Multiple

23.5%

-

23.5%

50.0%

Second Lien Secured Debt

 

20,795

 

Discounted Cash Flow

Discount Rate

32.0%

-

32.0%

32.0%

Common Equity/Interests

 

542

 

Market Comparable Technique

Comparable Multiple

8.0x

-

21.0x

11.23x

 

 

178

 

Transactional Value

Cost

N/A

 

N/A

N/A

Preferred Equity

 

123

 

Market Comparable Technique

Comparable Multiple

14.25x

-

16.94x

16.87x

Total Level 3 Investments

$

8,191,991

 

 

 

 

 

 

 
(1)
The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2023 were as follows:

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

 

Fair Value

 

Valuation Techniques/Methodologies

Unobservable Input

Range

Weighted Average (1)

First Lien Secured Debt

$

3,772,200

 

Discounted Cash Flow

Discount Rate

6.9%

-

13.4%

10.6%

 

 

1,583,890

 

Transactional Value

Cost

N/A

 

N/A

N/A

Second Lien Secured Debt

 

28,808

 

Discounted Cash Flow

Discount Rate

21.7%

-

21.7%

21.7%

Common Equity/Interests

 

499

 

Market Comparable Technique

Comparable Multiple

8.0x

-

20.5x

13.4x

 

 

125

 

Transactional Value

Cost

N/A

 

N/A

N/A

Preferred Equity

 

33

 

Market Comparable Technique

Comparable Multiple

16.8x

-

16.8x

16.8x

Total Level 3 Investments

$

5,385,555

 

 

 

 

 

 

 
(1)
The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.
Summary of Change in Capitalized PIK balance

The following table shows the change in capitalized PIK balance for the three and six months ended June 30, 2024 and 2023:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

PIK balance at beginning of period

$

19,485

 

$

6,313

 

$

13,026

 

$

5,333

PIK income capitalized

 

3,398

 

 

2,537

 

 

9,858

 

 

3,517

Adjustments due to investments exited or written off

 

—

 

 

—

 

 

—

 

 

—

PIK income received in cash

 

—

 

 

—

 

 

—

 

 

—

PIK balance at end of period

$

22,884

 

$

8,850

 

$

22,884

 

$

8,850