Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

6. Fair Value of Financial Instruments

Investments

The following tables present fair value measurements of investments as of June 30, 2025 and December 31, 2024:

	Fair Value Hierarchy at June 30, 2025
	Level 1		Level 2		Level 3		Total
First-lien debt investments	$	—	$	265,225	$	6,838,709	$	7,103,934
Second-lien debt investments		—		905		32,265		33,170
Mezzanine debt investments		—		—		210,092		210,092
Equity and other investments		—		—		159,301		159,301
Total investments at fair value	$	—	$	266,130	$	7,240,367	$	7,506,497
Interest rate swaps		—		31,491		—		31,491
Total	$	—	$	297,621	$	7,240,367	$	7,537,988

	Fair Value Hierarchy at December 31, 2024
	Level 1		Level 2			Level 3		Total
First-lien debt investments	$	—	$	143,398		$	6,728,411	$	6,871,809
Second-lien debt investments		—		1,309			93,469		94,778
Mezzanine debt investments		—		—			123,184		123,184
Equity and other investments		—		—			154,511		154,511
Total investments at fair value	$	—	$	144,707		$	7,099,575	$	7,244,282
Interest rate swaps		—		(25,214	)		—		(25,214	)
Total	$	—	$	119,493		$	7,099,575	$	7,219,068

Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur.

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 and six months ended June 30, 2025:

	As of and for the Three Months Ended
	June 30, 2025
	First-lien debt investments			Second-lien debt investments			Mezzanine  debt investments		Equity and other investments			Total
Balance, beginning of period	$	6,686,427		$	121,036		$	204,815	$	164,182		$	7,176,460
Purchases or originations		382,321			—			—		667			382,988
Repayments / redemptions		(374,771	)		(83,916	)		—		—			(458,687	)
Sales proceeds		(5,659	)		—			—		(11,763	)		(17,422	)
Paid-in-kind interest		10,390			1,229			4,192		—			15,811
Net change in unrealized gains (losses)		128,445			(11,140	)		935		(973	)		117,267
Net realized gains (losses)		26			—			—		7,188			7,214
Net amortization of discount on securities		11,530			5,056			150		—			16,736
Balance, End of Period	$	6,838,709		$	32,265		$	210,092	$	159,301		$	7,240,367

	As of and for the Six Months Ended
	June 30, 2025
	First-lien debt investments			Second-lien debt investments			Mezzanine  debt investments		Equity and other investments			Total
Balance, beginning of period	$	6,728,411		$	93,469		$	123,184	$	154,511		$	7,099,575
Purchases or originations		1,059,498			19,198			76,440		4,063			1,159,199
Repayments / redemptions		(1,015,095	)		(83,916	)		—		—			(1,099,011	)
Sales proceeds		(115,419	)		—			—		(11,763	)		(127,182	)
Paid-in-kind interest		20,009			2,167			7,709		—			29,885
Net change in unrealized gains (losses)		134,497			(4,055	)		2,500		5,302			138,244
Net realized gains (losses)		486			—			—		7,188			7,674
Net amortization of discount on securities		26,322			5,402			259		—			31,983
Balance, End of Period	$	6,838,709		$	32,265		$	210,092	$	159,301		$	7,240,367

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 and six months ended June 30, 2024:

	As of and for the Three Months Ended
	June 30, 2024
	First-lien debt investments			Second-lien debt investments			Mezzanine  debt investments		Equity and other investments			Total
Balance, beginning of period	$	3,979,498		$	89,086		$	111,081	$	94,393		$	4,274,058
Purchases or originations		995,734			—			—		—			995,734
Repayments / redemptions		(30,579	)		—			—		—			(30,579	)
Sales proceeds		(265,850	)		(2,160	)		—		—			(268,010	)
Paid-in-kind interest		4,306			494			3,400		—			8,200
Net change in unrealized gains (losses)		13,328			2,586			509		(313	)		16,110
Net realized gains (losses)		1,504			66			—		—			1,570
Net amortization of discount on securities		4,383			227			100		—			4,710
Balance, End of Period	$	4,702,324		$	90,299		$	115,090	$	94,080		$	5,001,793

	As of and for the Six Months Ended
	June 30, 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		2,255,540			10,021			—		28,259		2,293,820
Repayments / redemptions		(41,602	)		—			—		—		(41,602	)
Sale proceeds		(406,408	)		(2,161	)		—		—		(408,569	)
Paid-in-kind interest		6,591			494			6,660		—		13,745
Net change in unrealized gains (losses)		26,783			2,359			2,312		3,170		34,624
Net realized gains (losses)		4,346			66			—		—		4,412
Net amortization of discount on securities		8,269			429			200		—		8,898
Balance, End of Period	$	4,702,324		$	90,299		$	115,090	$	94,080	$	5,001,793

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 June 30, 2025 and June 30, 2024:

	Net Change in Unrealized		Net Change in Unrealized
	Gains or (Losses)		Gains or (Losses)
	For the Three Months Ended		For the Three Months Ended
	June 30, 2025 on		June 30, 2024 on
	Investments Held at		Investments Held at
	June 30, 2025		June 30, 2024
First-lien debt investments	$	140,705	$	13,327
Second-lien debt investments		699		2,587
Mezzanine debt investments		935		508
Equity and other investments		4,802		(313	)
Total	$	147,141	$	16,109

	Net Change in Unrealized		Net Change in Unrealized
	Gains or (Losses)		Gains or (Losses)
	For the Six Months Ended		For the Six Months Ended
	June 30, 2025 on		June 30, 2024 on
	Investments Held at		Investments Held at
	June 30, 2025		June 30, 2024
First-lien debt investments	$	154,408	$	27,160
Second-lien debt investments		1,105		2,360
Mezzanine debt investments		2,499		2,311
Equity and other investments		8,984		3,170
Total	$	166,996	$	35,001

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 June 30, 2025 and December 31, 2024. 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.

	June 30, 2025
			Valuation	Unobservable	Range (Weighted	Impact to Valuation from an
	Fair Value		Technique	Input	Average)	Increase to Input
First-lien debt investments	$	6,838,709	Income approach (1)	Discount rate	6.5% — 14.7% (10.1%)	Decrease
Second-lien debt investments		32,265	Income approach	Discount rate	13.1% — 14.1% (13.8%)	Decrease
Mezzanine debt investments		210,092	Income approach	Discount rate	11.5% — 11.5% (11.5%)	Decrease
Equity and other investments		159,301	Market Multiple (2)	Comparable multiple	1.9x — 20.0x (11.2x)	Increase
Total	$	7,240,367

(1)Includes $54.1 million of first-lien debt investments valued using an asset waterfall.

(2)Includes $52.8 million of equity investments valued using a discounted cash flow analysis.

	December 31, 2024
			Valuation	Unobservable	Range (Weighted	Impact to Valuation from an
	Fair Value		Technique	Input	Average)	Increase to Input
First-lien debt investments	$	6,728,411	Income approach (1)	Discount rate	7.7% — 17.1% (10.6%)	Decrease
Second-lien debt investments		93,469	Income approach	Discount rate	14.7% — 18.1% (17.8%)	Decrease
Mezzanine debt investments		123,184	Income approach	Discount rate	12.2% — 12.2% (12.2%)	Decrease
Equity and other investments		154,511	Market Multiple (2)	Comparable multiple	4.8x — 20.0x (11.0x)	Increase
Total	$	7,099,575

(1)Includes $226.4 million of first-lien debt investments valued using an asset waterfall.

(2)Includes $8.3 million of equity investments valued using a Black-Scholes model and $49.1 million of equity investments valued using a discounted cash flow analysis.

The Company typically determines the fair value of its performing Level 3 debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company’s capital structure.

Significant unobservable quantitative inputs typically considered in the fair value measurement of the Company’s Level 3 debt investments primarily include current market yields, including relevant market indices, but may also include quotes from brokers, dealers, and pricing services as indicated by comparable investments. If debt investments are credit impaired, an enterprise value analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. For the Company’s Level 3 equity investments, multiples of similar companies’ revenues, earnings before income taxes, depreciation and amortization (“EBITDA”) or some combination thereof and comparable market transactions are typically used.

Financial Instruments Not Carried at Fair Value

Debt

The fair value of the Company’s Credit Facilities, which are categorized as Level 3 within the fair value hierarchy, as of June 30, 2025 and December 31, 2024, approximates their carrying value as the outstanding balance is callable at carrying value.

The following table presents the fair value of the Company’s 2029 Notes, January 2030 Notes and July 2030 Notes, as of June 30, 2025 and December 31, 2024.

	June 30, 2025				December 31, 2024
	Outstanding Principal		Fair Value (1)		Outstanding Principal		Fair Value (1)
2029 Notes	$	750,000	$	773,355	$	750,000	$	759,645
January 2030 Notes		600,000		601,436		600,000		588,680
July 2030 Notes		750,000		763,205		—		—
Total	$	2,100,000	$	2,137,996	$	1,350,000	$	1,348,325

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

Other Financial Assets and Liabilities

Under the fair value hierarchy, cash and cash equivalents are classified as Level 1 while the Company’s other assets and liabilities, other than investments at fair value and the Credit Facilities, are classified as Level 2.