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Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Investments and Fair Value Measurements [Abstract]

Investment Portfolio at Cost and Fair Value

The composition of the Company’s investment portfolio at cost and fair value as of March 31, 2025 and December 31, 2024 were as follows:


	March 31, 2025							December 31, 2024
	Amortized Cost		Fair Value		% of Total Investments at Fair Value			Amortized Cost		Fair Value		% of Total Investments at Fair Value
First lien debt	$	765,431,591	$	763,705,455		89.12	%	$	662,123,702	$	663,933,579		87.76	%
Second lien debt		74,052,663		76,315,930		8.90	%		73,104,525		75,443,518		9.97	%
Equity		15,878,199		16,999,954		1.98	%		15,878,199		17,146,234		2.27	%
Total investments	$	855,362,453	$	857,021,339		100.00	%	$	751,106,426	$	756,523,331		100.00	%

The industry composition of investments based on fair value as of March 31, 2025 and December 31, 2024, were as follows:


	March 31, 2025			December 31, 2024
Oil, Gas & Consumable Fuels		11.91	%		4.34	%
Building Products(1)		10.38			11.15
Electrical Equipment		8.29			4.47
Construction & Engineering		6.59			7.09
Household Durables		6.28			7.14
Electric Utilities		5.76			5.04
Hotels, Restaurants & Leisure		5.35			5.96
Machinery		5.29			6.42
Specialty Retail		5.06			5.77
Automobile Components		5.02			5.42
Commercial Services & Supplies		4.92			4.99
IT Services		4.80			5.45
Trading Companies & Distributors		3.62			4.18
Aerospace & Defense		2.97			2.69
Health Care Providers & Services		2.54			3.25
Independent Power and Renewable Electricity Producers		2.40			2.94
Automobiles		2.05			2.68
Textiles, Apparel & Luxury Goods		1.13			1.29
Chemicals		0.72			0.37
Containers & Packaging		0.71			0.79
Personal Care Products		0.63			0.71
Software		0.62			0.71
Gas Utilities		0.45			—
Professional Services		0.41			0.41
Metals & Mining		0.34			0.39
Air Freight & Logistics		0.29			0.35
Household Products		0.26			0.67
Distributors		0.23			0.26
Diversified Consumer Services		0.23			0.26
Insurance		0.23			0.26
Technology Hardware, Storage & Peripherals		0.21			0.24
Food Products		0.20			—
Ground Transportation		0.11			0.13
Energy Equipment & Services		—			3.99
Construction Materials		—			0.19
Total		100.00	%		100.00	%

(1)

The industry classification for the issuer Globe Electric Company Inc was changed from Household Durables to Building Products as of March 31, 2025. This change was applied retrospectively to the December 31, 2024 Consolidated Schedule of Investments.

The geographic composition of investments at cost and fair value as of March 31, 2025 and December 31, 2024 were as follows:


	March 31, 2025										December 31, 2024
	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	$	748,200,691	$	749,444,455		87.44	%		145.57	%	$	645,248,857	$	651,040,720		86.06	%		145.63	%
Canada		88,310,756		88,599,446		10.34	%		17.21	%		88,461,009		88,668,828		11.72	%		19.83	%
Germany		17,408,736		17,551,521		2.05	%		3.41	%		17,396,560		16,813,783		2.22	%		3.76	%
United Kingdom		1,442,270		1,425,917		0.17	%		0.28	%		—		—		—			—
Total	$	855,362,453	$	857,021,339		100.00	%		166.47	%	$	751,106,426	$	756,523,331		100.00	%		169.22	%

Fair Value Hierarchy of Investments

The following tables present the fair value hierarchy of the Company’s investment portfolio as of March 31, 2025 and December 31, 2024:


	March 31, 2025
Assets	Level 1		Level 2		Level 3		Total
First Lien Debt	$	—	$	142,517,680	$	621,187,775	$	763,705,455
Second Lien Debt		—		—		76,315,930		76,315,930
Equity		608,098		—		—		608,098
Subtotal	$	608,098	$	142,517,680	$	697,503,705	$	840,629,483
Investment measured at net asset value(1)								16,391,856
Total investments							$	857,021,339

(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, 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)

Fair Value of Investments

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 three months ended March 31, 2025 and March 31, 2024, respectively:


	First Lien Debt			Second Lien Debt			Total
Balance as of December 31, 2024	$	531,672,622		$	75,443,518		$	607,116,140
Purchases of investments		131,056,656			—			131,056,656
Proceeds from principal pre-payments and sales of investments		(42,572,628	)		—			(42,572,628	)
Payment-in-kind		484,183			775,133			1,259,316
Net accretion of discount on investments		1,529,658			173,005			1,702,663
Net realized gain (loss)		1,449,797			—			1,449,797
Net change in unrealized appreciation/(depreciation)		(1,573,687	)		(75,726	)		(1,649,413	)
Transfers into Level 3		5,187,622			—			5,187,622
Transfers out of Level 3		(6,046,448	)		—			(6,046,448	)
Balance as of March 31, 2025	$	621,187,775		$	76,315,930		$	697,503,705

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	(1,573,687	)	$	(75,726	)	$	(1,649,413	)

Level 2 investments are valued using prices obtained from pricing services. The Company had $(858,826) in transfers between levels on a net basis during the three months ended March 31, 2025.


	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		92,224,386			—			92,224,386
Proceeds from principal pre-payments and sales of investments		(1,505,724	)		—			(1,505,724	)
Payment-in-kind		301,018			681,397			982,415
Net accretion of discount on investments		402,040			113,852			515,892
Net realized gain (loss)		(33,566	)		—			(33,566	)
Net change in unrealized appreciation/(depreciation)		287,980			(41,911	)		246,069
Transfers into Level 3		960,175			—			960,175
Transfers out of Level 3		(15,115,018	)		—			(15,115,018	)
Balance as of March 31, 2024	$	215,939,500		$	19,803,414		$	235,742,914

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	287,980		$	(41,911	)	$	246,069

Valuation Techniques and Significant Unobservable Inputs of Level 3 Investments

The valuation techniques and significant unobservable inputs used in the valuation of Level 3 investments as of March 31, 2025 and December 31, 2024 were as follows:


Investment Type	Fair Value as of March 31, 2025		Valuation Technique	Unobservable Input	Range	Weighted Average (1))
Second Lien Debt	$	76,315,930	Discounted cash flow	Discount rate	11.41% - 15.50%	12.65%
First Lien Debt		592,508,937	Discounted cash flow	Discount rate	9.59% - 16.70%	11.07%
		28,678,838	Market quotations	Broker quoted price	96.00 - 99.88		98.95
		697,503,705

(1)

Unobservable inputs were weighted by the relative fair value of investments.


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.

- 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.

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