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Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2025 and December 31, 2024 were as follows:


	September 30, 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	$	931,296,559	$	927,236,584		90.44	%	$	662,123,702	$	663,933,579		87.76	%
Second lien debt		78,608,203		78,806,598		7.69	%		73,104,525		75,443,518		9.97	%
Equity		17,462,670		19,122,632		1.87	%		15,878,199		17,146,234		2.27	%
Total investments	$	1,027,367,432	$	1,025,165,814		100.00	%	$	751,106,426	$	756,523,331		100.00	%

The industry composition of investments based on fair value as of September 30, 2025 and December 31, 2024 were as follows:


	September 30, 2025			December 31, 2024
Oil, Gas & Consumable Fuels		9.87	%		4.34	%
Independent Power and Renewable Electricity Producers		8.67			2.94
Health Care Providers & Services		8.36			3.25
Building Products(1)		8.10			11.15
Entertainment		6.71			—
Hotels, Restaurants & Leisure		5.45			5.96
Electric Utilities		5.31			5.04
Household Durables		5.21			7.14
Specialty Retail		4.84			5.77
Biotechnology		4.67			—
Construction & Engineering		4.56			7.09
Machinery		4.21			6.42
Automobile Components		3.74			5.42
Building Materials		3.63			—
Commercial Services & Supplies		3.48			4.99
IT Services		3.36			5.45
Aerospace & Defense		2.60			2.69
Trading Companies & Distributors		2.40			4.18
Automobiles		1.86			2.68
Textiles, Apparel & Luxury Goods		0.93			1.29
Chemicals		0.39			0.37
Gas Utilities		0.38			—
Software		0.32			0.71
Household Products		0.23			0.67
Distributors		0.22			0.26
Energy Equipment & Services		0.20			3.99
Food Products		0.17			—
Ground Transportation		0.09			0.13
Air Freight & Logistics		0.04			0.35
Electrical Equipment		—			4.47
Containers & Packaging		—			0.79
Personal Care Products		—			0.71
Professional Services		—			0.41
Metals & Mining		—			0.39
Diversified Consumer Services		—			0.26
Insurance		—			0.26
Technology Hardware, Storage & Peripherals		—			0.24
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 September 30, 2025 and December 31, 2024 were as follows:


	September 30, 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	$	915,382,607	$	912,122,373		88.97	%		148.32	%	$	645,248,857	$	651,040,720		86.06	%		145.63	%
Canada		91,125,422		90,668,243		8.84	%		14.74	%		88,461,009		88,668,828		11.72	%		19.83	%
Germany		17,436,539		19,032,829		1.86	%		3.09	%		17,396,560		16,813,783		2.22	%		3.76	%
Luxembourg		1,985,160		2,009,963		0.20	%		0.33	%		—		—		—			—
United Kingdom		1,437,704		1,332,406		0.13	%		0.22	%		—		—		—			—
Total	$	1,027,367,432	$	1,025,165,814		100.00	%		166.70	%	$	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 September 30, 2025 and December 31, 2024:


	September 30, 2025
Assets	Level 1		Level 2		Level 3		Total
First Lien Debt	$	—	$	107,574,080	$	819,662,504	$	927,236,584
Second Lien Debt		—		—		78,806,598		78,806,598
Equity		896,945		—		1,465,261		2,362,206
Subtotal	$	896,945	$	107,574,080	$	899,934,363	$	1,008,405,388
Investment measured at net asset value(1)								16,760,426
Total investments							$	1,025,165,814

(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 and nine months ended September 30, 2025 and September 30, 2024, respectively:


	First Lien Debt			Second Lien Debt			Equity			Total
Balance as of June 30, 2025	$	782,432,231		$	76,975,283		$	—		$	859,407,514
Purchases of investments		186,110,074			4,123,951			—			190,234,025
Proceeds from principal pre-payments and sales of investments		(140,086,461	)		—			—			(140,086,461	)
Payment-in-kind		1,111,037			560,323			—			1,671,360
Net accretion of discount on investments		4,439,973			104,320			—			4,544,293
Net realized gain (loss)		4,293,409			81,024			—			4,374,433
Net change in unrealized appreciation/(depreciation)		(5,727,835	)		(1,453,832	)		(119,210	)		(7,300,877	)
Transfers into Level 3(1)		2,003,760			—			1,584,471			3,588,231
Transfers out of Level 3(1)		(14,913,684	)		(1,584,471	)		—			(16,498,155	)
Balance as of September 30, 2025	$	819,662,504		$	78,806,598		$	1,465,261		$	899,934,363

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	(2,841,395	)	$	812,792		$	(119,210	)	$	(2,147,813	)


	First Lien Debt			Second Lien Debt			Equity			Total
Balance as of December 31, 2024	$	531,672,622		$	75,443,518		$	—		$	607,116,140
Purchases of investments		525,369,095			4,397,712			—			529,766,807
Proceeds from principal pre-payments and sales of investments		(249,895,176	)		—			—			(249,895,176	)
Payment-in-kind		2,124,737			2,149,094			—			4,273,831
Net accretion of discount on investments		8,266,518			460,319			—			8,726,837
Net realized gain (loss)		6,215,743			81,024			—			6,296,767
Net change in unrealized appreciation/(depreciation)		(2,462,842	)		(2,140,598	)		(119,210	)		(4,722,650	)
Transfers into Level 3(1)		3,396,713			—			1,584,471			4,981,184
Transfers out of Level 3(1)		(5,024,906	)		(1,584,471	)		—			(6,609,377	)
Balance as of September 30, 2025	$	819,662,504		$	78,806,598		$	1,465,261		$	899,934,363

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	(686,150	)	$	205,783		$	(119,210	)	$	(599,577	)

(1)

The transfers into and out of Level 3 for Equity and Second Lien Debt, respectively, represent a restructuring of a second lien debt investment into an equity investment.

Level 2 investments are valued using prices obtained from pricing services. The Company had $(12,909,924) and $(1,628,193) in transfers into Level 3 on a net basis during the three and nine months ended September 30, 2025, respectively.


	First Lien Debt			Second Lien Debt			Total
Balance as of June 30, 2024	$	335,836,232		$	20,571,894		$	356,408,126
Purchases of investments		75,754,856			—			75,754,856
Proceeds from principal pre-payments and sales of investments		(18,478,153	)		—			(18,478,153	)
Payment-in-kind		486,197			734,049			1,220,246
Net accretion of discount on investments		967,422			128,531			1,095,953
Net realized gain (loss)		100,216			—			100,216
Net change in unrealized appreciation/(depreciation)		(37,448	)		(48,143	)		(85,591	)
Transfers into Level 3		1,272,164			—			1,272,164
Transfers out of Level 3		(9,009,598	)		—			(9,009,598	)
Balance as of September 30, 2024	$	386,891,888		$	21,386,331		$	408,278,219

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	(37,448	)	$	(48,143	)	$	(85,591	)


	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		303,415,019			—			303,415,019
Proceeds from principal pre-payments and sales of investments		(55,759,531	)		—			(55,759,531	)
Payment-in-kind		1,252,323			2,107,582			3,359,905
Net accretion of discount on investments		2,322,444			362,027			2,684,471
Net realized gain (loss)		486,321			—			486,321
Net change in unrealized appreciation/(depreciation)		204,149			(133,354	)		70,795
Transfers into Level 3		4,533,215			—			4,533,215
Transfers out of Level 3		(7,980,261	)		—			(7,980,261	)
Balance as of September 30, 2024	$	386,891,888		$	21,386,331		$	408,278,219

Net change in unrealized appreciation (depreciation) on Level 3 investments still held at the end of the period	$	204,149		$	(133,354	)	$	70,795

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 September 30, 2025 and December 31, 2024 were as follows:

         Investment Type

         Fair Value as of September 30, 2025

         Valuation
Technique

         Unobservable 
Input

         Range

         Weighted
Average (2)

Equity

1,465,261

Market Approach

EBITDA Multiple

12.50x - 13.50x

13.00x

          
         Income Approach

         Discount rate

         9.00%

         9.00%

Second Lien Debt

52,462,027

Discounted cash flow

Discount rate

11.50% - 11.50%

11.50%

26,344,571

Market Approach

EBITDA Multiple

12.50x - 13.50x

13.00x

          
         Income Approach

         Discount rate

         9.00%

         9.00%

First Lien Debt

663,827,997

Discounted cash flow

Discount rate

8.49% - 19.41%

10.99%

22,018,835

Market quotations

Broker quoted price

99.50 - 100.75

99.93

133,815,672

Transactional Value(1)

N/A

N/A

N/A

899,934,363

(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, 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)

(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.

+ References + Details