XML 31 R19.htm IDEA: XBRL DOCUMENT v3.25.1
Investments and Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Investments and Fair Value Measurements [Abstract]  
Investments and Fair Value Measurements

Note 4. Investments and Fair Value Measurements

The composition of the Company’s investment portfolio at cost and fair value as of December 31, 2024 and December 31, 2023 were as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at Fair
Value

 

First lien debt

 

$

662,123,702

 

 

$

663,933,579

 

 

 

87.76

%

 

$

313,932,958

 

 

$

317,768,488

 

 

 

90.18

%

Second lien debt

 

 

73,104,525

 

 

 

75,443,518

 

 

 

9.97

%

 

 

16,498,048

 

 

 

19,050,076

 

 

 

5.41

%

Equity

 

 

15,878,199

 

 

 

17,146,234

 

 

 

2.27

%

 

 

14,792,309

 

 

 

15,559,956

 

 

 

4.41

%

Total investments

 

$

751,106,426

 

 

$

756,523,331

 

 

 

100.00

%

 

$

345,223,315

 

 

$

352,378,520

 

 

 

100.00

%

 

The industry composition of investments based on fair value as of December 31, 2024 and December 31, 2023, were as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

Household Durables

 

 

12.83

%

 

 

—

%

Construction & Engineering

 

 

7.09

 

 

 

4.17

 

Machinery

 

 

6.42

 

 

 

3.69

 

Hotels, Restaurants & Leisure

 

 

5.96

 

 

 

5.69

 

Specialty Retail

 

 

5.77

 

 

 

—

 

Building Products

 

 

5.46

 

 

 

1.06

 

IT Services

 

 

5.45

 

 

 

3.63

 

Automobile Components

 

 

5.42

 

 

 

1.62

 

Electric Utilities

 

 

5.04

 

 

 

7.20

 

Commercial Services & Supplies

 

 

4.99

 

 

 

15.33

 

Electrical Equipment

 

 

4.47

 

 

 

—

 

Oil, Gas & Consumable Fuels

 

 

4.34

 

 

 

—

 

Trading Companies & Distributors

 

 

4.18

 

 

 

9.52

 

Energy Equipment & Services

 

 

3.99

 

 

 

1.41

 

Health Care Providers & Services

 

 

3.25

 

 

 

7.37

 

Independent Power and Renewable Electricity Producers

 

 

2.94

 

 

 

0.80

 

Aerospace & Defense

 

 

2.69

 

 

 

—

 

Automobiles

 

 

2.68

 

 

 

1.20

 

Textiles, Apparel & Luxury Goods

 

 

1.29

 

 

 

3.21

 

Containers & Packaging

 

 

0.79

 

 

 

1.98

 

Personal Care Products

 

 

0.71

 

 

 

1.12

 

Software

 

 

0.71

 

 

 

3.48

 

Household Products

 

 

0.67

 

 

 

4.20

 

Professional Services

 

 

0.41

 

 

 

6.33

 

Metals & Mining

 

 

0.39

 

 

 

0.85

 

Chemicals

 

 

0.37

 

 

 

2.55

 

Air Freight & Logistics

 

 

0.35

 

 

 

1.36

 

Diversified Consumer Services

 

 

0.26

 

 

 

1.87

 

Insurance

 

 

0.26

 

 

 

3.16

 

Distributors

 

 

0.26

 

 

 

2.80

 

Technology Hardware, Storage & Peripherals

 

 

0.24

 

 

 

—

 

Construction Materials

 

 

0.19

 

 

 

—

 

Ground Transportation

 

 

0.13

 

 

 

0.69

 

Biotechnology

 

 

—

 

 

 

1.40

 

Health Care Equipment & Supplies

 

 

—

 

 

 

0.88

 

Leisure Products

 

 

—

 

 

 

0.56

 

Electronic Equipment, Instruments & Components

 

 

—

 

 

 

0.32

 

Health Care Technology

 

 

—

 

 

 

0.28

 

Gas Utilities

 

 

—

 

 

 

0.27

 

Total

 

 

100.00

%

 

 

100.00

%

 

The geographic composition of investments at cost and fair value as of December 31, 2024 and December 31, 2023 were as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at
Fair Value

 

 

Fair Value
as % of Net
Assets

 

 

Amortized
Cost

 

 

Fair
Value

 

 

% of Total
Investments
at
Fair Value

 

 

Fair Value
as % of Net
Assets

 

United States

 

$

645,248,857

 

 

$

651,040,720

 

 

 

86.06

%

 

 

145.63

%

 

$

340,353,603

 

 

$

347,440,385

 

 

 

98.60

%

 

 

156.78

%

Canada

 

 

88,461,009

 

 

 

88,668,828

 

 

 

11.72

%

 

 

19.83

%

 

 

3,885,951

 

 

 

3,954,000

 

 

 

1.12

%

 

 

1.78

%

Germany

 

 

17,396,560

 

 

 

16,813,783

 

 

 

2.22

%

 

 

3.76

%

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Luxembourg

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

983,761

 

 

 

984,135

 

 

 

0.28

%

 

 

0.44

%

Total

 

$

751,106,426

 

 

$

756,523,331

 

 

 

100.00

%

 

 

169.22

%

 

$

345,223,315

 

 

$

352,378,520

 

 

 

100.00

%

 

 

159.00

%

 

The following table presents the fair value hierarchy of the Company’s investment portfolio as of December 31, 2024 and December 31, 2023:

 

 

December 31, 2024

 

Assets

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

132,260,957

 

 

$

531,672,622

 

 

$

663,933,579

 

Second Lien Debt

 

 

—

 

 

 

—

 

 

 

75,443,518

 

 

 

75,443,518

 

Equity

 

 

918,663

 

 

 

—

 

 

 

—

 

 

 

918,663

 

Subtotal

 

$

918,663

 

 

$

132,260,957

 

 

$

607,116,140

 

 

$

740,295,760

 

Investment measured at net asset value(1)

 

 

 

 

 

 

 

 

 

 

 

16,227,571

 

Total investments

 

 

 

 

 

 

 

 

 

 

$

756,523,331

 
(1)
The Company, as a practical expedient, estimates the fair value of its investment in KKR Tinder TFC Aggregator L.P. using the net asset value of the Company’s members’ interest in the entity. As such, the fair value has not been classified within the fair value hierarchy.

 

 

 

December 31, 2023

 

Assets

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

First Lien Debt

 

$

—

 

 

$

179,350,279

 

 

$

138,418,209

 

 

$

317,768,488

 

Second Lien Debt

 

—

 

 

—

 

 

 

19,050,076

 

 

 

19,050,076

 

Subtotal

 

$

—

 

 

$

179,350,279

 

 

$

157,468,285

 

 

$

336,818,564

 

Investment measured at net asset value(1)

 

 

 

 

 

 

 

 

 

 

 

15,559,956

 

Total investments

 

 

 

 

 

 

 

 

 

 

$

352,378,520

 
(1)
The Company, as a practical expedient, estimates the fair value of its investment in KKR Tinder TFC Aggregator L.P. using the net asset value of the Company’s members’ interest in the entity. As such, the fair value has not been classified within the fair value hierarchy.

 

 

 

The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the years ended December 31, 2024 and December 31, 2023:

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Total

 

Balance as of December 31, 2023

 

$

138,418,209

 

 

$

19,050,076

 

 

$

157,468,285

 

Purchases of investments

 

 

479,951,371

 

 

 

53,208,577

 

 

 

533,159,948

 

Proceeds from principal pre-payments and sales of investments

 

 

(93,809,081

)

 

 

—

 

 

 

(93,809,081

)

Payment-in-kind

 

 

1,737,670

 

 

 

2,894,625

 

 

 

4,632,295

 

Net accretion of discount on investments

 

 

2,968,893

 

 

 

503,275

 

 

 

3,472,168

 

Net realized gain (loss)

 

 

496,997

 

 

 

—

 

 

 

496,997

 

Net change in unrealized appreciation/(depreciation)

 

 

735,347

 

 

 

(213,035

)

 

 

522,312

 

Transfers into Level 3

 

 

6,281,750

 

 

 

—

 

 

 

6,281,750

 

Transfers out of Level 3

 

 

(5,108,534

)

 

 

—

 

 

 

(5,108,534

)

Balance as of December 31, 2024

 

$

531,672,622

 

 

$

75,443,518

 

 

$

607,116,140

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the year

 

$

735,347

 

 

$

(213,035

)

 

$

522,312

 

 

Level 2 investments are valued using prices obtained from pricing services. The Company had $(1,173,216) transfers between levels on a net basis during the year ended December 31, 2024.

 

 

First Lien
Debt

 

 

Second Lien
Debt

 

 

Total

 

Balance as of February 1, 2023 (commencement of operations)

 

$

—

 

 

$

—

 

 

$

—

 

Purchases of investments

 

 

141,566,417

 

 

 

13,500,000

 

 

 

155,066,417

 

Proceeds from principal pre-payments and sales of investments

 

 

(4,589,545

)

 

 

—

 

 

 

(4,589,545

)

Payment-in-kind

 

 

—

 

 

 

2,775,581

 

 

 

2,775,581

 

Net accretion of discount on investments

 

 

326,393

 

 

 

222,467

 

 

 

548,860

 

Net realized gain (loss)

 

 

53,799

 

 

 

—

 

 

 

53,799

 

Net change in unrealized appreciation/(depreciation)

 

 

1,061,145

 

 

 

2,552,028

 

 

 

3,613,173

 

Transfers into Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Balance as of December 31, 2023

 

$

138,418,209

 

 

$

19,050,076

 

 

$

157,468,285

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the year

 

$

1,061,145

 

 

$

2,552,028

 

 

$

3,613,173

 

 

Level 2 investments are valued using prices obtained from pricing services. The Company had no transfers between levels during the period from February 1, 2023 (commencement of operations) to December 31, 2023.

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of December 31, 2024 and December 31, 2023 were as follows:

 

Investment Type

 

Fair Value as of December 31, 2024

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average (2)

 

Second Lien Debt

 

$

75,443,518

 

 

Discounted cash flow

 

Discount rate

 

11.75% - 15.50%

 

12.86%

 

First Lien Debt

 

 

450,508,252

 

 

Discounted cash flow

 

Discount rate

 

9.34% - 17.00%

 

11.56%

 

 

 

16,682,655

 

 

Market quotations

 

Broker quoted price

 

98.25 - 101.00

 

 

99.94

 

 

 

 

64,481,715

 

 

Transactional Value (1)

 

N/A

 

N/A

 

N/A

 

 

$

607,116,140

 

 

 

 

 

 

 

 

 

 

 

(1)
Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio companies since the transaction date.
(2)
Unobservable inputs were weighted by the relative fair value of investments.

 

Investment Type

 

Fair Value as of December 31, 2023

 

 

Valuation
Technique

 

Unobservable
Input

 

Range

 

Weighted
Average (2)

 

Second Lien Debt

 

$

19,050,076

 

 

Discounted cash flow

 

Discount rate

 

15.50%

 

15.50%

 

First Lien Debt

 

 

79,221,269

 

 

Discounted cash flow

 

Discount rate

 

9.86% - 13.44%

 

10.95%

 

 

 

18,288,599

 

 

Market quotations

 

Broker quoted price

 

95.75 - 100.50

 

 

98.35

 

 

 

40,908,341

 

 

Transactional Value(1)

 

N/A

 

N/A

 

N/A

 

 

$

157,468,285

 

 

 

 

 

 

 

 

 

 

 

(1)
Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio companies since the transaction date.
(2)
Unobservable inputs were weighted by the relative fair value of investments.

Changes in discount rates and broker quoted prices, each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase in discount rates or a decrease in broker quoted prices may result in a decrease in the fair value of certain of the Company’s investments.