Derivatives

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

The Company may enter into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.

In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be of good standing and by monitoring the financial stability of those counterparties.

For the three months ended March 31, 2025, the Company’s monthly average USD notional exposure to derivatives was approximately $615,424,385. For the three months ended March 31, 2024 the Company’s monthly average USD notional exposure to derivatives was approximately $1,521,000.

The table below presents the impact to the consolidated statements of operations from derivative contracts that were not designated in a qualifying hedging relationship during the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024
Net change in unrealized gain (loss) on foreign currency forward contracts	$	(45)	67
Net change in unrealized gain (loss) on interest rate options	436		—
Realized (loss) on foreign currency forward contracts	47		(32)

The Company has not applied counterparty netting or collateral netting; as such, the amounts of cash collateral received and posted are not offset against the derivative assets and derivative liabilities in the consolidated statements of assets and liabilities.

Hedging

The Company designated certain interest rate swaps as the hedging instrument in a qualifying fair value hedge accounting relationship. For derivative instruments designated in qualifying hedge relationships, the change in fair value of the hedging instrument are recorded as interest expense and in the consolidated statements of operations.

The table below presents the impact to the consolidated statements of operations from derivative assets and liabilities designated in a qualifying hedge accounting relationship for the three months ended March 31, 2025 and 2024:

(Amounts in thousands)	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024		Financial Statement Location
Interest rate swaps	$	(8,611)	$	(773)	Interest expense
Hedged items	$	8,155	$	—	Interest expense

The table below presents the carrying value of unsecured borrowings as of March 31, 2025 that are designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values:

Description	Principal Amount (Amounts in thousands)		Carrying Value (Amounts in thousands)		Cumulative Hedging Adjustments (Amounts in thousands)
Series A Tranche A Notes	$	90,000	$	90,216	$	216
Series A Tranche B Notes	150,000		150,788		788
Series B, Tranche A Notes	85,000		85,438		438
Series B, Tranche C Notes	290,000		291,411		1,411
Total	$	615,000	$	617,853	$	2,853

The table below presents the carrying value of unsecured borrowings as of December 31, 2024 that are designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values:

Description	Principal Amount (Amounts in thousands)		Carrying Value (Amounts in thousands)		Cumulative Hedging Adjustments (Amounts in thousands)
Series A, Tranche A Notes	$	90,000	$	89,732	$	(268)
Series A, Tranche B Notes	150,000		148,799		(1,201)
Series B, Tranche A Notes	85,000		84,330		(670)
Series B, Tranche C Notes	290,000		286,838		(3,162)
Total	$	615,000	$	609,699	$	(5,301)