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Investments (Tables)

12 Months Ended

Dec. 31, 2024

Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments and net assets, are shown in the following table:


($ in thousands)	Cost		Percent of Total Portfolio		Fair Value		Percent of Total Portfolio		Percent of Total Net Assets
December 31, 2024:
Senior debt and 1st lien notes	$	2,552,342	82	%	$	2,503,156	81	%	127	%
Subordinated debt and 2nd lien notes	125,971		4		122,748		4		6
Structured products	79,722		3		80,401		3		4
Equity shares	298,038		10		337,684		11		17
Equity warrants	4		—		2,813		—		—
Royalty rights	9,066		—		14,583		—		1
Investment in joint ventures	41,986		1		22,480		1		1
Short-term investments	10,201		—		10,200		—		1
	$	3,117,330	100	%	$	3,094,065	100	%	157	%
December 31, 2023:
Senior debt and 1st lien notes	$	1,981,715	80	%	$	1,958,306	80	%	150	%
Subordinated debt and 2nd lien notes	158,720		7		148,450		6		11
Structured products	27,146		1		23,947		1		2
Equity shares	254,999		10		297,213		12		23
Equity warrants	4		—		2,475		—		—
Investment in joint ventures	45,143		2		28,538		1		2
	$	2,467,727	100	%	$	2,458,929	100	%	188	%

As of December 31, 2024 and December 31, 2023, the CPCF BPCC investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
December 31, 2024:
Senior debt and 1st lien notes	$	222,535	100	%	$	219,644	100	%






	$	222,535	100	%	$	219,644	100	%

December 31, 2023:
Senior debt and 1st lien notes	$	211,115	100	%	$	212,256	100	%






	$	211,115	100	%	$	212,256	100	%

The industry composition of CPCF BPCC’s investments at fair value at December 31, 2024 and December 31, 2023 was as follows:


($ in thousands)	December 31, 2024				December 31, 2023
Aerospace & Defense	$	24,511	11.2	%	$	15,754	7.4	%
Automotive	4,859		2.2		6,908		3.3
Banking, Finance, Insurance and Real Estate	3,435		1.6		12,729		6.0

Capital Equipment	13,720		6.2		22,834		10.8
Chemicals, Plastics, and Rubber	2,406		1.1		2,961		1.4

Consumer Goods: Durable	2,743		1.2		2,962		1.4
Consumer Goods: Non-durable	4,908		2.2		—		—


Energy: Electricity	4,843		2.2		4,962		2.3



Healthcare & Pharmaceuticals	26,273		12.0		24,572		11.6
High Tech Industries	45,832		20.9		40,316		19.0


Media: Advertising, Printing and Publishing	10,162		4.6		6,478		3.1

Media: Diversified and Production	5,700		2.6		5,806		2.7


Services: Business	54,007		24.6		44,317		20.8
Services: Consumer	9,405		4.3		9,892		4.7


Transportation: Cargo	2,959		1.3		2,911		1.4
Transportation: Consumer	—		—		4,951		2.3
Utilities: Electric	3,881		1.8		3,903		1.8


Total	$	219,644	100.0	%	$	212,256	100.0	%

The geographic composition of CPCF BPCC’s investments at fair value at December 31, 2024 and December 31, 2023 was as follows:


($ in thousands)	December 31, 2024				December 31, 2023


Canada	$	7,869	3.6	%	$	9,959	4.7	%
France	18,953		8.6		21,122		10.0
Germany	9,435		4.3		9,945		4.7

Netherlands	2,610		1.2		3,043		1.4


United Kingdom	4,950		2.3		5,968		2.8
USA	175,827		80.0		162,219		76.4
Total	$	219,644	100.0	%	$	212,256	100.0	%

Schedule of Fair Value, Assets Measured on Recurring Basis

The following tables present the Company’s investment portfolio at fair value as of December 31, 2024 and 2023, categorized by the ASC Topic 820 valuation hierarchy, as previously described:


	Fair Value as of December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	100,979	$	2,402,177	$	2,503,156
Subordinated debt and 2nd lien notes	—		11,839		110,909		122,748
Structured products	—		60,502		19,899		80,401
Equity shares	—		—		337,684		337,684
Equity warrants	—		—		2,813		2,813
Royalty rights	—		—		14,583		14,583
Short-term investments	10,200		—		—		10,200
Investments subject to leveling	$	10,200	$	173,320	$	2,888,065	$	3,071,585
Investment in joint ventures (1)							22,480
							$	3,094,065

	Fair Value as of December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	42,673	$	1,915,633	$	1,958,306
Subordinated debt and 2nd lien notes	—		18,177		130,273		148,450
Structured products	—		8,242		15,705		23,947
Equity shares	75		—		297,138		297,213
Equity warrants	—		—		2,475		2,475

Investments subject to leveling	$	75	$	69,092	$	2,361,224	$	2,430,391
Investment in joint ventures (1)							28,538
							$	2,458,929

(1)The Company’s investments in CPCF BPCC LLC, Thompson Rivers LLC and Waccamaw River LLC 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 Balance Sheet.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of the Company’s investment portfolio measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2024 and 2023:


Year Ended December 31, 2024 ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Royalty Rights		Total
Fair value, beginning of period	$	1,915,633	$	130,273	$	15,705	$	297,138	$	2,475	$	—	$	2,361,224
New investments	1,161,149		34,579		4,000		17,061		—		9,678		1,226,467
Investment restructuring	(25,679)		8,861		—		13,113		—		—		(3,705)
Transfers into (out of) Level 3, net	(357)		(9,060)		—		—		—		—		(9,417)
Proceeds from sales of investments / return of capital	(94,669)		—		—		(167)		—		(612)		(95,448)
Loan origination fees received	(18,626)		(580)		—		—		—		—		(19,206)
Principal repayments received	(515,854)		(51,701)		(1,428)		—		—		—		(568,983)
Payment in kind interest /dividends	7,313		4,571				13,160		—		—		25,044

Accretion of loan premium / discount	986		38		—		—		—		—		1,024
Accretion of deferred loan origination revenue	14,507		1,042		—		—		—		—		15,549
Realized gain (loss)	(14,579)		(8,485)		—		40		—		—		(23,024)
Unrealized appreciation (depreciation)	(27,647)		1,371		1,622		(2,661)		338		5,517		(21,460)
Fair value, end of period	$	2,402,177	$	110,909	$	19,899	$	337,684	$	2,813	$	14,583	$	2,888,065


Year Ended December 31, 2023: ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Total
Fair value, beginning of period	$	1,736,050	$	143,294	$	16,380	$	157,313	$	1,083	$	2,054,120
New investments	517,892		34,390		—		118,392		—		670,674

Transfers into (out of) Level 3, net	—		(6,432)		—		522		—		(5,910)

Proceeds from sales of investments / return of capital	(213,277)		—		—		(1,750)		—		(215,027)
Loan origination fees received	(13,171)		(74)		—		—		—		(13,245)
Principal repayments received	(140,893)		(39,437)		(1,428)		—		—		(181,758)
Payment in kind interest / dividends	5,815		2,952		—		8,948		—		17,715

Accretion of loan premium / discount	692		384		—		—		—		1,076
Accretion of deferred loan origination revenue	9,821		458		—		—		—		10,279
Realized gain (loss)	(2,157)		(278)		—		887		—		(1,548)
Unrealized appreciation (depreciation)	14,861		(4,984)		753		12,826		1,392		24,848
Fair value, end of period	$	1,915,633	$	130,273	$	15,705	$	297,138	$	2,475	$	2,361,224

Schedule of Capital Contributed and Unfunded

As of December 31, 2024 and December 31, 2023, the Thompson Rivers investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
December 31, 2024:
Federal Housing Administration (“FHA”) loans	$	193,265	93	%	$	179,963	93	%
Veterans Affairs (“VA”) loans	$	14,305	7		$	13,388	7

	$	207,570	100	%	$	193,351	100	%
December 31, 2023:
Federal Housing Administration (“FHA”) loans	$	360,847	93	%	$	342,240	93	%
Veterans Affairs (“VA”) loans	$	25,810	7		$	24,491	7
	$	386,657	100	%	$	366,731	100	%

As of December 31, 2024 and December 31, 2023, Thompson Rivers had the following contributed capital and unfunded commitments from its members:


($ in thousands)	As of December 31, 2024		As of December 31, 2023
Total contributed capital by Barings Private Credit Corporation (1)	$	32,226	$	32,226
Total contributed capital by all members (2)	$	482,083	$	482,083

Total unfunded commitments by Barings Private Credit Corporation	$	—	$	—
Total unfunded commitments by all members	$	—	$	—

(1)Includes $2.2 million of dividend re-investments.

(2)Includes dividend re-investments of $32.1 million and total contributed capital by related parties of $209.3 million as of both December 31, 2024 and December 31, 2023, respectively

As of December 31, 2024 and December 31, 2023, Waccamaw River had the following contributed capital and unfunded commitments from its members:


($ in thousands)	As of December 31, 2024		As of December 31, 2023
Total contributed capital by Barings Private Credit Corporation	$	25,000	$	25,000
Total contributed capital by all members (1)	$	139,020	$	139,020

Total unfunded commitments by Barings Private Credit Corporation	$	—	$	—
Total unfunded commitments by all members	$	—	$	—

(1)Includes $87.3 million of total contributed capital by related parties as of both December 31, 2024, and December 31, 2023.

- 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.

+ References + Details