Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

As of March 31, 2024 and December 31, 2023, the Company’s investments were categorized as follows in the fair value hierarchy:


	March 31, 2024
Valuation Inputs	(Unaudited)		December 31, 2023
Level 1—Price quotations in active markets	$	—	$	—
Level 2—Significant other observable inputs	—		1,614
Level 3—Significant unobservable inputs	444,376		262,316
	$	444,376	$	263,930

Schedule of Reconciliation Fair Value, Assets

The following is a reconciliation for the three months ended March 31, 2024 and 2023 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:


	For the Three Months Ended March 31, 2024
	Senior Secured Loans—First Lien		Subordinated Debt		Asset Based Finance		Total
Fair value at beginning of period	$	204,314	$	961	$	57,041	$	262,316
Accretion of discount (amortization of premium)	135		1		30		166
Net realized gain (loss)	(13)		—		(11)		(24)
Net change in unrealized appreciation (depreciation)	1,451		—		485		1,936
Purchases	164,442		485		29,940		194,867
Paid-in-kind interest	101		49		—		150
Sales and repayments	(10,509)		—		(4,526)		(15,035)
Transfers into Level 3	—		—		—		—
Transfers out of Level 3	—		—		—		—
Fair value at end of period	$	359,921	$	1,496	$	82,959	$	444,376
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date	$	1,451	$	—	$	485	$	1,936


	For the Three Months Ended March 31, 2023
	Senior Secured Loans—First Lien		Asset Based Finance		Total
Fair value at beginning of period	$	2,647	$	3,484	$	6,131
Accretion of discount (amortization of premium)	3		1		4
Net realized gain (loss)	—		—		—
Net change in unrealized appreciation (depreciation)	135		16		151
Purchases	8,581		67		8,648
Paid-in-kind interest	—		—		—
Sales and repayments	(7)		—		(7)
Transfers into Level 3	—		—		—
Transfers out of Level 3	—		—		—
Fair value at end of period	$	11,359	$	3,568	$	14,927
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date	$	135	$	16	$	151

Schedule of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of March 31, 2024 and December 31, 2023 were as follows:

Type of Investment

Fair Value at March 31, 2024

(Unaudited)

Valuation
Technique

Unobservable
Input

Range (Weighted Average)

Impact to Valuation from an Increase in Input(1)

Senior Debt

352,884

Discounted Cash Flow

Discount Rate

8.7% - 11.3% (10.3%)

Decrease

7,037

Cost

Subordinated Debt

1,496

Discounted Cash Flow

Discount Rate

15.4% - 15.4% (15.4%)

Decrease

Asset Based Finance

75,196

Discounted Cash Flow

Discount Rate

5.7% - 42.4% (8.4%)

Decrease

5,331

Cost

2,432

Waterfall

EBITDA Multiple

1.0x - 1.0x (1.0x)

Increase

Total

444,376

Type of Investment

Fair Value at December 31, 2023

Valuation
Technique

Unobservable
Input

Range (Weighted Average)

Impact to Valuation from an Increase in Input(1)

Senior Debt

185,976

Discounted Cash Flow

Discount Rate

10% - 11.5% (10.9%)

Decrease

18,338

Cost

Subordinated Debt

961

Discounted Cash Flow

Discount Rate

15.4% - 15.4% (15.4%)

Decrease

Asset Based Finance

39,896

Discounted Cash Flow

Discount Rate

5.9% - 43.2% (8.0%)

Decrease

2,679

Waterfall

EBITDA Multiple

1.0x - 1.0x (1.0x)

Increase

292

Other

14,174

Cost

Total

262,316

__________

(1)Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

(2)Fair value based on expected outcome of proposed corporate transactions and/or other factors.