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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

The following tables present fair value measurements of investments as of March 31, 2024 and December 31, 2023:


	Fair Value Hierarchy at March 31, 2024
	Level 1		Level 2			Level 3		Total
First-lien debt investments	$	—	$	2,123		$	3,979,498	$	3,981,621
Second-lien debt investments		—		—			89,086		89,086
Mezzanine debt investments		—		1,383			111,081		112,464
Equity and other investments		—		—			94,393		94,393
Total investments at fair value	$	—	$	3,506		$	4,274,058	$	4,277,564
Interest rate swaps		—		(878	)		—		(878	)
Total	$	—	$	2,628		$	4,274,058	$	4,276,686


	Fair Value Hierarchy at December 31, 2023
	Level 1		Level 2		Level 3		Total
First-lien debt investments	$	—	$	2,080	$	2,848,805	$	2,850,885
Second-lien debt investments		—		—		79,091		79,091
Mezzanine debt investments		—		606		105,918		106,524
Equity and other investments		—		—		62,651		62,651
Total	$	—	$	2,686	$	3,096,465	$	3,099,151

Changes in Fair Value of Investments Using Level 3 Inputs

The following tables present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three months ended March 31, 2024:


	As of and for the Three Months Ended
	March 31, 2024
	First-lien debt investments			Second-lien debt investments			Mezzanine debt investments		Equity and other investments		Total
Balance, beginning of period	$	2,848,805		$	79,091		$	105,918	$	62,651	$	3,096,465
Purchases or originations		1,259,806			10,021			—		28,259		1,298,086
Repayments / redemptions		(11,023	)		—			—		—		(11,023	)
Sales proceeds		(140,558	)		—			—		—		(140,558	)
Paid-in-kind interest		2,285			—			3,260		—		5,545
Net change in unrealized gains (losses)		13,456			(227	)		1,803		3,483		18,515
Net realized gains (losses)		2,842			—			—		—		2,842
Net amortization of discount on securities		3,885			201			100		—		4,186
Transfers within Level 3		—			—			—		—		—
Transfers into (out of) Level 3		—			—			—		—		—
Balance, End of Period	$	3,979,498		$	89,086		$	111,081	$	94,393	$	4,274,058

The following table presents the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three months ended March 31, 2023:


	As of and for the Three Months Ended
	March 31, 2023
	First-lien debt investments			Equity and other investments		Total
Balance, beginning of period	$	800,995		$	7,806	$	808,801
Purchases or originations		436,123			8,638		444,761
Repayments / redemptions		(6,286	)		—		(6,286	)
Paid-in-kind interest		21			—		21
Net change in unrealized gains (losses)		13,761			—		13,761
Net realized gains (losses)		—			—		—
Net amortization of discount on securities		1,394			—		1,394
Transfers within Level 3		—			—		—
Transfers into (out of) Level 3		—			—		—
Balance, End of Period	$	1,246,008		$	16,444	$	1,262,452

Net Change in Unrealized Gains or Losses on Investments for Which Level 3 Inputs were Used in Determining Fair Value

The following tables present information with respect to the net change in unrealized gains or losses on investments for which Level 3 inputs were used in determining fair value that are still held by the Company at March 31, 2024 and 2023:


	Net Change in Unrealized			Net Change in Unrealized
	Gains or (Losses)			Gains or (Losses)
	For the three months ended			For the three months ended
	March 31, 2024 on			March 31, 2023 on
	Investments Held at			Investments Held at
	March 31, 2024			March 31, 2023
First-lien debt investments	$	13,833		$	13,761
Second-lien debt investments		(227	)		—
Mezzanine debt investments		1,804			—
Equity and other investments		3,483			—
Total	$	18,893		$	13,761

Fair Value of Level 3 Investments at Fair Value Significant Unobservable Inputs Used in Valuations

The following tables present the fair value of Level 3 Investments at fair value and the significant unobservable inputs used in the valuations as of March 31, 2024 and December 31, 2023. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.

         
        March 31, 2024

         
        Valuation

        Unobservable

        Range (Weighted

        Impact to Valuation
from an

         
        Fair Value

        Technique

        Input

        Average)

        Increase to Input

First-lien debt investments

3,979,498

Income approach (1)

Discount rate

9.4% — 17.3% (12.5%)

Decrease

Second-lien debt investments

89,086

Income approach

Discount rate

17.5% — 22.0% (21.5%)

Decrease

Mezzanine debt investments

111,081

Income approach

Discount rate

13.7% — 13.7% (13.7%)

Decrease

Equity and other investments

94,393

Market Multiple (2)

Comparable multiple

2.6x — 20.0x (10.3x)

Increase

Total

4,274,058

(1)

Includes $73.9 million of first-lien debt investments valued using an asset waterfall.

(2)

Includes $7.2 million of equity investments valued using a Black-Scholes model.

         
        December 31, 2023

         
        Valuation

        Unobservable

        Range (Weighted

        Impact to Valuation
from an

         
        Fair Value

        Technique

        Input

        Average)

        Increase to Input

First-lien debt investments

2,848,805

Income approach (1)

Discount rate

8.7% — 16.4% (12.8%)

Decrease

Second-lien debt investments

79,091

Income approach

Discount rate

21.7% — 21.7% (21.7%)

Decrease

Mezzanine debt investments

105,918

Income approach

Discount rate

15.0% — 15.0% (15.0%)

Decrease

Equity and other investments

62,651

Market Multiple (2)

Comparable multiple

2.6x — 16.1x (10.2x)

Increase

Total

3,096,465

(1)

Includes $77.9 million of first-lien debt investments valued using an asset waterfall.

(2)

Includes $4.6 million of equity investments valued using a Black-Scholes model and $19.2 million of equity investments which, due to the proximity of the transactions relative to the measurement dates, we valued using the cost of the investments.

Fair Value of Company's 2029 Notes

The following table presents the fair value of the Company’s 2029 Notes, as of March 31, 2024 and December 31, 2023.


	March 31, 2024				December 31, 2023
	Outstanding Principal		Fair Value (1)		Outstanding Principal		Fair Value (1)
2029 Notes	$	600,000	$	597,880	$	—	$	—
Total	$	600,000	$	597,880	$	—	$	—

(1)

The fair value is based on broker quotes received by the Company and is categorized as Level 2 within the fair value hierarchy.