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Investments (Tables)

9 Months Ended

Sep. 30, 2024

Investments

Schedule of fair values of investments disaggregated into three levels of fair value hierarchy


		Fair Value Measurements
September 30, 2024		Level 1			Level 2 ⁽¹⁾			Level 3			Total
Investments:
First lien secured debt ⁽²⁾		$	—		$	164,194		$	158,773		$	322,967
Second lien secured debt			—			2,156			2,304			4,460
Corporate bond			—			54,355			28,184			82,539
Revolver			—			—			386			386
Equity - Preferred equity			—			—			3,151			3,151
Equity - Common stock			—			—			2,377			2,377
Total investments		$	—		$	220,705		$	195,175		$	415,880
Derivatives		$	—		$	90		$	—		$	90
Cash equivalents		$	77		$	—		$	—		$	77


		Fair Value Measurements
December 31, 2023		Level 1			Level 2 ⁽¹⁾			Level 3			Total
Investments:
First lien secured debt ⁽²⁾		$	—		$	136,706		$	118,248		$	254,954
Second lien secured debt			—			—			2,012			2,012
Corporate bond			—			64,589			28,147			92,736
Revolver			—			5,418			584			6,002
Equity - Preferred equity			—			—			3,151			3,151
Equity - Common stock			—			—			267			267
Total investments		$	—		$	206,713		$	152,409		$	359,122
Derivatives		$	—		$	271		$	—		$	271
Cash equivalents		$	220		$	—		$	—		$	220

(1)

Fair value based upon quoted prices in inactive markets or quotes for comparable investments.

(2)

Includes senior secured loans.

Schedule of unobservable inputs used in the fair value measurement of Level 3 investments

September 30, 2024

Range

Weighted

Fair Value

Valuation Technique

Unobservable Input

Low

High

Average

Corporate bond

$

14,836

Yield analysis

Market yield

12.52%

14.39%

13.46%

EV market multiple analysis

EBITDA multiple

11.50x

12.50x

12.00x

Corporate bond

13,348

Yield analysis

Market yield

10.16%

10.16%

10.16%

Black scholes option pricing model

Volatility

10.00%

41.50%

25.75%

Black scholes option pricing model

Term

1.84 years

1.84 years

1.84 years

Black scholes option pricing model

Risk free rate

3.44%

3.44%

3.44%

First lien secured debt

40,260

Yield analysis

Market yield

9.45%

11.05%

10.28%

First lien secured debt

18,581

Yield analysis

Market yield

10.52%

10.94%

10.73%

EV market multiple analysis

EBITDA multiple

7.00x

8.00x

7.50x

First lien secured debt

62,036

Recent transactions

Transaction price

N/A

N/A

N/A

First lien secured debt

37,896

Market quotation

Market quotation

N/A

N/A

N/A

Second lien secured debt

2,304

Discounted cash flow analysis

Discount rate

33.25%

35.25%

34.25%

Discounted cash flow analysis

Revenue growth rate

3.25%

4.25%

3.75%

EV market multiple analysis

EBITDA multiple

9.79x

15.39x

12.59x

Revolver

386

Recent transactions

Transaction price

N/A

N/A

N/A

Equity - Preferred equity

3,151

Discounted cash flow analysis

Discount rate

33.25%

35.25%

34.25%

Discounted cash flow analysis

Revenue growth rate

3.25%

4.25%

3.75%

EV market multiple analysis

EBITDA multiple

9.79x

15.39x

12.59x

Equity - Common stock

2,377

Discounted cash flow analysis

Discount rate

33.25%

35.25%

34.25%

Discounted cash flow analysis

Revenue growth rate

3.25%

4.25%

3.75%

EV market multiple analysis

EBITDA multiple

9.79x

15.39x

12.59x

Total

$

195,175


	December 31, 2023
								Range				Weighted
	Fair Value			Valuation Technique		Unobservable Input		Low		High		Average
Corporate bond	$	14,700		Yield analysis		Market yield		11.60%		12.60%		12.10%
Corporate bond		13,447		Yield analysis		Market yield		13.08%		13.08%		13.08%
				Black Scholes Option Pricing Model		Volatility		10.00%		47.50%		28.75%
				Black Scholes Option Pricing Model		Term		2.60 years		2.60 years		2.60 years
				Black Scholes Option Pricing Model		Risk free rate		4.10%		4.10%		4.10%
First lien secured debt		38,162		Yield analysis		Market yield		9.86%		11.91%		10.81%
				EV market multiple analysis		EBITDA multiple		11.50x		13.25x		12.47x
First lien secured debt		29,931		Yield analysis		Market yield		9.44%		12.24%		10.57%
First lien secured debt		14,523		Recent transactions		Transaction price		N/A		N/A		N/A
First lien secured debt		35,632		Market quotation		N/A		N/A		N/A		N/A
Second lien secured debt		2,012		Discounted cash flow analysis		Discount rate		33.25%		35.25%		34.25%
						Revenue growth rate		3.25%		4.25%		3.75%
						Revenue multiple		0.38x		0.45x		0.41x
Revolver		(4)		Yield analysis		Market yield		9.86%		11.91%		11.38%
				EV market multiple analysis		EBITDA multiple		12.00x		13.25x		12.75x
Revolver		588		Yield analysis		Market yield		11.24%		12.24%		11.74%
Equity - Preferred equity		3,151		Discounted cash flow analysis		Discount rate		33.25%		35.25%		34.25%
						Revenue growth rate		3.25%		4.25%		3.75%
						Revenue multiple		0.38x		0.45x		0.41x
Equity - Common stock		267		Discounted cash flow analysis		Discount rate		33.25%		35.25%		34.25%
						Revenue growth rate		3.25%		4.25%		3.75%
						Revenue multiple		0.38x		0.45x		0.41x
Total	$	152,409

Schedule of change to the value of an investment due to change in an unobservable input


Input		Impact to Value if Input Increases		Impact to Value if Input Decreases
Discount rate		Decrease		Increase
Revenue multiples		Increase		Decrease
EBITDA multiples		Increase		Decrease
Book value multiples		Increase		Decrease
Implied volatility		Increase		Decrease
Term		Decrease		Increase
Yield		Decrease		Increase

Schedule of changes in investments categorized as Level 3


		For the Three Months Ended September 30, 2024
		First Lien Secured Debt			Second Lien Secured Debt			Corporate Bond			Revolver			Equity - Preferred Equity			Equity - Common Stock			Total Investments
Beginning balance		$	122,072		$	2,215		$	28,214		$	346		$	3,151		$	2,038		$	158,036
Net realized and unrealized gains (losses)			376			12			(182)			(38)			—			339			507
Acquisitions ⁽¹⁾			50,336			77			242			126			—			—			50,781
Dispositions ⁽²⁾			(13,984)			—			(90)			(75)			—			—			(14,149)
Transfers in (out) of Level 3 ⁽³⁾			—			—			—			—			—			—			—
Reclassifications			(27)			—			—			27			—			—			—
Ending balance		$	158,773		$	2,304		$	28,184		$	386		$	3,151		$	2,377		$	195,175
Net change in unrealized appreciation/(depreciation) during the period on investments still held at period end (included in net realized and unrealized gains/(losses) above)		$	426		$	12		$	(183)		$	(1)		$	—		$	340		$	594

		For the Nine Months Ended September 30, 2024
		First Lien Secured Debt			Second Lien Secured Debt			Corporate Bond			Revolver			Equity - Preferred Equity			Equity - Common Stock			Total Investments
Beginning balance		$	118,248		$	2,012		$	28,147		$	584		$	3,151		$	267		$	152,409
Net realized and unrealized gains (losses)			513			38			(416)			(28)			—			2,110			2,217
Acquisitions ⁽¹⁾			130,739			254			543			278			—			—			131,814
Dispositions ⁽²⁾			(78,140)			—			(90)			(475)			—			—			(78,705)
Transfers in (out) of Level 3 ⁽³⁾			(12,560)			—			—			—			—			—			(12,560)
Reclassifications			(27)			—			—			27			—			—			—
Ending balance		$	158,773		$	2,304		$	28,184		$	386		$	3,151		$	2,377		$	195,175
Net change in unrealized appreciation/(depreciation) during the period on investments still held at period end (included in net realized and unrealized gains/(losses) above)		$	889		$	38		$	(418)		$	10		$	—		$	2,111		$	2,630

⁽¹⁾ Includes payments received in kind, accretion of original issue, market discounts, securities received in corporate actions and restructuring.

⁽²⁾ Includes principal paydowns, and may include securities delivered in corporate actions and restructuring of investments.

⁽³⁾ Represents non-cash transfers between fair value categories. Transfers in (out) of Level 3 are the result of changes in the observability of significant inputs and / or available market data for certain investments. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.


		For the Three Months Ended September 30, 2023
		First Lien Term Loan				Second Lien Secured Debt		Corporate Bond			Revolver			Equity - Preferred Equity			Equity - Common Stock			Total Investments
Beginning balance		$	88,970		$	—		$	27,603		$	542		$	—		$	—		$	117,115
Net realized and unrealized gains (losses)			685			—			(5,311)			33			—			—			(4,593)
Acquisitions ⁽¹⁾			22,994			—			237			489			11			—			23,731
Dispositions			(219)			—			(9)			(461)			—			—			(689)
Transfers in (out) of Level 3 ⁽³⁾			—			—			5,842			—			—			—			5,842
Ending balance		$	112,430		$	—		$	28,362		$	603		$	11		$	—		$	141,406
Net change in unrealized appreciation/(depreciation) during the period on investments still held at period end (included in net realized and unrealized gains/(losses) above)		$	681		$	—		$	(5,147)		$	33		$	—		$	—		$	(4,433)

		For the Nine Months Ended September 30, 2023
		First Lien Secured Debt			Second Lien Secured Debt			Corporate Bond			Revolver			Equity - Preferred Equity			Equity - Common Stock			Total Investments
Beginning balance		$	8,420		$	—		$	27,605		$	(34)		$	—		$	—		$	35,991
Net realized and unrealized gains (losses)			575			—			(5,603)			37			—			—			(4,991)
Acquisitions ⁽¹⁾			103,859			—			527			1,561			11			—			105,958
Dispositions ⁽²⁾			(424)			—			(9)			(961)			—			—			(1,394)
Transfers in (out) of Level 3 ⁽³⁾			—			—			5,842			—			—			—			5,842
Ending balance		$	112,430		$	—		$	28,362		$	603		$	11		$	—		$	141,406
Net change in unrealized appreciation/(depreciation) during the period on investments still held at period end (included in net realized and unrealized gains/(losses) above)		$	566		$	—		$	(5,440)		$	37		$	—		$	—		$	(4,837)

⁽¹⁾ Includes payments received in kind and accretion of original issue and market discounts.

⁽²⁾ Includes principal paydowns.

⁽³⁾ Represents non-cash transfers between fair value categories. Transfers in (out) of Level 3 are the result of changes in the observability of significant inputs and / or available market data for certain investments. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.

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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