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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Fair Value Measurements of Investments

The following table presents fair value measurements of investments, by major class as of December 31, 2024 and December 31, 2023, according to the fair value hierarchy:


As of December 31, 2024	Level 1		Level 2		Level 3		Total
Assets:
First-Lien Debt	$	—	$	288,818	$	1,270,084	$	1,558,902
Subordinated Debt (1)	—		—		102,993		102,993
Equity Investments	—		—		19,714		19,714
Cash Equivalents	63,223		—		—		63,223
Total	$	63,223	$	288,818	$	1,392,791	$	1,744,832

_______________

(1)Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $49,896, mezzanine debt of $52,014, and structured debt of $1,083.


As of December 31, 2023	Level 1		Level 2		Level 3		Total
Assets:
First-Lien Debt	$	—	$	45,486	$	354,396	$	399,882
Subordinated Debt (1)	—		—		101,930		101,930
Equity Investments	—		—		10,224		10,224
Cash Equivalents	7,590		—		—		7,590
Total	$	7,590	$	45,486	$	466,550	$	519,626

_______________

(1)Subordinated Debt is further comprised of second lien term loans and/or second lien notes of $52,170 and mezzanine debt of $49,760.

Schedule of Reconciliation of the Beginning and Ending Balances for Investments

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the following periods:


	For the Year Ended December 31, 2024
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2023	$	354,396	$	101,930	$	10,224	$	466,550
Purchase of investments	1,043,167		24,163		10,923		1,078,253
Proceeds from principal repayments and sales of investments	(114,773)		(27,056)		(1,214)		(143,043)
Payment-in-kind interest	587		3,840		—		4,427
Amortization of premium/accretion of discount, net	(910)		303		—		(607)
Net realized gain (loss) on investments	635		74		288		997
Net change in unrealized appreciation (depreciation) on investments	(1,988)		(261)		(507)		(2,756)
Transfers out of Level 3 (1)	(11,030)		—		—		(11,030)
Transfers to Level 3 (1)	—		—		—		—

Balance as of December 31, 2024	$	1,270,084	$	102,993	$	19,714	$	1,392,791

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of December 31, 2024	$	(2,500)	$	(235)	$	(51)	$	(2,786)

________________

(1) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the year ended December 31, 2024, transfers between Level 3 and Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies.


	For the Year Ended December 31, 2023
	First-Lien Debt		Subordinated Debt		Equity Investments		Total
Balance as of December 31, 2022	$	249,667	$	93,809	$	4,338	$	347,814
Purchase of investments	137,949		15,956		5,948		159,853
Proceeds from principal repayments and sales of investments	(35,224)		(10,216)		(392)		(45,832)
Payment-in-kind interest	71		2,117		—		2,188
Amortization of premium/accretion of discount, net	577		242		—		819
Net realized gain (loss) on investments	174		311		291		776
Net change in unrealized appreciation (depreciation) on investments	(522)		(289)		39		(772)

Transfers to Level 3 (1)	1,704		—		—		1,704
Balance as of December 31, 2023	$	354,396	$	101,930	$	10,224	$	466,550

Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments still held as of December 31, 2023	$	(475)	$	36	$	215	$	(224)

________________

(1) Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the year ended December 31, 2023, transfers into Level 3 from Level 2 were a result of changes in the observability of significant inputs for one portfolio company.

Schedule of Valuation Techniques and Significant Unobservable Inputs Used in Level 3 Fair Value Measurements of Assets

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of December 31, 2024 and December 31, 2023 were as follows:


Investment Type	Fair Value at December 31, 2024		Valuation Techniques	Unobservable Inputs	Ranges				Weighted Average
First-Lien Debt	$	1,153,845	Yield Method	Implied Discount Rate	5.83	%	19.20	%	9.80	%

First-Lien Debt	8,969		Market Approach	EBITDA Multiple	8.00x		15.50x		12.59x
Subordinated Debt	95,793		Yield Method	Implied Discount Rate	11.82	%	25.00	%	15.20	%
Subordinated Debt	1,765		Market Approach	EBITDA Multiple	14.00x		14.00x		14.00x
Equity Investments	15,272		Market Approach	EBITDA Multiple	8.00x		22.00x		12.98x
Equity Investments	166		Market Approach	ARR Multiple	5.00x		5.00x		5.00x
Equity Investments	657		Yield Method	Implied Discount Rate	8.00	%	16.06	%	13.79	%
Total	$	1,276,467

First Lien Debt in the amount of $107,270, Subordinated Debt in the amount of $5,435, and equity investments in the amount of $3,619 at December 31, 2024 have been excluded from the table above as the investments are valued using recent transaction price.


Investment Type	Fair Value at December 31, 2023		Valuation Techniques	Unobservable Inputs	Ranges				Weighted Average
First-Lien Debt	$	282,615	Yield Method	Implied Discount Rate	6.13	%	16.48	%	10.88	%

First-Lien Debt	3,166		Market Approach	EBITDA Multiple	7.50x		7.50x		7.50x
Subordinated Debt	100,086		Yield Method	Implied Discount Rate	11.57	%	20.63	%	13.96	%

Equity Investments	8,779		Market Approach	EBITDA Multiple	8.50x		19.50x		11.49x
Equity Investments	57		Market Approach	EBITDA Multiple	9.00x		9.00x		9.00x
			Market Approach	ARR Multiple	3.50x		3.50x		3.50x
Equity Investments	528		Yield Method	Implied Discount Rate	8.36	%	15.16	%	8.35	%
Total	$	395,231

First Lien Debt in the amount of $68,615, Subordinated Debt in the amount of $1,844, and equity investments in the amount of $860 at December 31, 2023 have been excluded from the table above as the investments are valued using recent transaction price.

Schedule of Carrying Values and Fair Values of Debt Obligations

The carrying value and fair value of the Fund’s debt obligations were as follows:


	December 31, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value			Fair Value
Bank of America Credit Facility	$	325,000	$	325,000	$	165,750		$	165,750
Scotiabank Credit Facility	278,500		278,500		—		0	—
2024 Debt	306,000		307,609		—			—
Total	$	909,500	$	911,109	$	165,750		$	165,750

- 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