Fair Value Measurements - Investments

3 Months Ended

Mar. 31, 2024

The following tables present fair value measurements of investments, by major class, according to the fair value hierarchy:


	March 31, 2024
Investments	Level I		Level II		Level III		Fair Value
Infrastructure Assets	$	—	$	—	$	1,021,161	$	1,021,161
Unrealized appreciation on foreign currency forward contracts	—		4,437		—		4,437
Unrealized depreciation on foreign currency forward contracts	—		(8,317)		—		(8,317)
Investments in Money Market Funds	613,549		—		—		613,549
Total	$	613,549	$	(3,880)	$	1,021,161	$	1,630,830


	December 31, 2023
Investments	Level I		Level II		Level III		Fair Value
Infrastructure Assets	$	—	$	—	$	983,552	$	983,552
Unrealized appreciation on foreign currency forward contracts	—		28		—		28
Unrealized depreciation on foreign currency forward contracts	—		(18,890)		—		(18,890)
Investments in Money Market Funds	278,417		—		—		278,417
Total	$	278,417	$	(18,862)	$	983,552	$	1,243,107

The following table provides a reconciliation of the beginning and ending balances for investments that use Level III inputs for the three months ended March 31, 2024:


Investments	Balance as of December 31, 2023		Purchases		Net change in unrealized appreciation on investments		Net change in unrealized depreciation on foreign currency translation		Balance as of March 31, 2024
Infrastructure Assets	$	983,552	$	24,111	$	29,713	$	(16,215)	$	1,021,161
Total	$	983,552	$	24,111	$	29,713	$	(16,215)	$	1,021,161

The total change in unrealized appreciation included in the Consolidated Statements of Operations within net change in unrealized appreciation (depreciation) for the three months ended March 31, 2024 attributable to Level III investments and foreign currency translation still held at March 31, 2024 was $29,713 and $(16,215), respectively.

The following table presents the quantitative information about Level III fair value measurements of the Company’s Infrastructure Assets as of March 31, 2024 and December 31, 2023:


					As of March 31, 2024		As of December 31, 2023
Level III Assets	Fair Value March 31, 2024	Fair Value December 31, 2023	Valuation Methodology & Inputs	Unobservable Input(s) (1)	Weighted Average (2)	Range	Weighted Average (2)	Range	Impact to Valuation from an Increase in Input (3)
Infrastructure Assets	$1,021,161	$983,552	Inputs to market comparables, discounted cash flow and transaction price/other	Illiquidity Discount	5.1%	5.0% - 10.0%	5.1%	5.0% - 10.0%	Decrease
				Weight Ascribed to Market Comparables	3.8%	—% - 25.0%	4.0%	—% - 25.0%	(4)
				Weight Ascribed to Discounted Cash Flow	94.5%	—% - 100.0%	94.6%	—% - 100.0%	(5)
				Weight Ascribed to Transaction Price/Other	1.7%	—% - 100.0%	1.4%	—% - 100.0%	(6)

			Market Comparables	Enterprise Value / Forward EBITDA Multiple	10.6x	10.6x - 10.6x	10.5x	10.5x - 10.5x	Increase

			Discounted Cash Flow	Weighted Average Cost of Capital	9.8%	6.9% - 14.9%	9.7%	6.7% - 12.1%	Decrease
				Enterprise Value / LTM EBITDA Exit Multiple	13.8x	7.1x - 20.0x	13.9x	9.5x - 21.0x	Increase

(1) In determining the inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments including exit strategies and realization opportunities. The Manager has determined that market participants would take these inputs into account when valuing the investments. “LTM” means Last Twelve Months.

(2) Inputs are weighted based on fair value of the investments included in the range.

(3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

(4) The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price approach. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price approach.

(5) The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach and transaction price approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach and transaction price approach.

(6) The directional change from an increase in the weight ascribed to the transaction price approach would increase the fair value of the Level III investments if the transaction price approach results in a higher valuation than the market comparables approach and discounted cash flow approach. The opposite would be true if the transaction price approach results in a lower valuation than the market comparables approach and discounted cash flow approach.

Valuations involve subjective judgments and may not accurately reflect realizable value. The assumptions above are determined by the Manager and reviewed by the Manager’s independent valuation advisor. A change in these assumptions or factors would impact the calculation of the value of our assets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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