Fair Value (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Portfolio Investments by Level in the Fair Value Hierarchy

The following table summarizes the levels in the fair value hierarchy that the Company's portfolio investments fell into as of December 31, 2024:


	Total		Level I		Level II		Level III
First lien	$	361,945	$	—	$	40,345	$	321,600
Second lien	9,417		—		5,302		4,115
Subordinated	1,741		—		—		1,741
Structured finance obligations	472		—		472		—
Equity and other	4,219		—		—		4,219
Total investments	$	377,794	$	—	$	46,119	$	331,675

The following table summarizes the levels in the fair value hierarchy that the Company's portfolio investments fell into as of December 31, 2023:


	Total		Level I		Level II		Level III
First lien	$	83,830	$	—	$	8,465	$	75,365
Second lien	752		—		—		752
Subordinated	2,031		—		2,031		—

Total investments	$	86,613	$	—	$	10,496	$	76,117

Summary of Changes in Level III Portfolio Investments

The following table summarizes the changes in fair value of Level III portfolio investments for the year ended December 31, 2024, as well as the portion of appreciation (depreciation) included in income attributable to the net change in unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at December 31, 2024:


	Total		First Lien		Second Lien		Subordinated		Equity and other
Fair value, December 31, 2023	$	76,117	$	75,365	$	752	$	—	$	—
Total gains or losses included in earnings:
Net realized (losses) gains on investments	5		5		—		—		—
Net change in unrealized appreciation (depreciation) of investments	1,701		1,588		109		4		—
Purchases, including capitalized PIK and revolver fundings	294,832		284,847		4,029		1,737		4,219
Proceeds from sales and paydowns of investments	(41,604)		(40,829)		(775)		—		—
Transfers into Level III (1)	2,975		2,975		—		—		—
Transfers out of Level III (1)	(2,351)		(2,351)		—		—		—
Fair value, December 31, 2024	$	331,675	$	321,600	$	4,115	$	1,741	$	4,219
Net change in unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	1,544	$	1,455	$	85	$	4	$	—

(1)As of December 31, 2024, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the period from May 24, 2023 (commencement of operations) to December 31, 2023, as well as the portion of appreciation (depreciation) included in income attributable to the net change in unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at December 31, 2023:


	Total		First Lien		Second Lien
Fair value, May 24, 2023 (commencement of operations)	$	—	$	—	$	—
Total gains or losses included in earnings:

Net change in unrealized appreciation (depreciation) of investments	1,129		1,094		35
Purchases, including capitalized PIK and revolver fundings	75,333		74,616		717
Proceeds from sales and paydowns of investments	(345)		(345)		—


Fair value, December 31, 2023	$	76,117	$	75,365	$	752
Net change in unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	1,129	$	1,094	$	35

Summary of Unobservable Inputs

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2024 were as follows:


					Range
Type	Fair Value as of December 31, 2024		Approach	Unobservable Input	Low		High		Weighted Average (1)
First lien	$	312,800	Market & income approach	EBITDA multiple	8.5x		35.0x		16.8x
				Revenue multiple	3.0x		13.0x		8.9x
				Discount rate	6.8	%	12.7	%	9.2	%

	8,800		Other	N/A (2)	N/A		N/A		N/A


Second lien	4,115		Market & income approach	Discount rate	9.9	%	10.2	%	10.1	%

Subordinated	1,741		Market & income approach	EBITDA multiple	14.5x		15.5x		15.0x

				Discount rate	14.6	%	14.6	%	14.6	%

Equity and other	802		Market & income approach	EBITDA multiple	12.0x		18.0x		16.3x

				Discount rate	13.5	%	13.5	%	13.5	%
	3,417		Other	N/A (2)	N/A		N/A		N/A
	$	331,675

(1)Unobservable inputs were weighted by the relative fair value of the investments.

(2)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2023 were as follows:

Range

Type

Fair Value as of December 31, 2023

Approach

Unobservable Input

Low

High

Weighted
Average (1)

First lien

59,470

Market & income approach

EBITDA multiple

8.5x

27.0x

18.4x

Revenue multiple

8.0x

10.0x

9.0x

Discount rate

7.2

11.2

9.5

15,895

Other

N/A (2)

N/A

Second lien

752

Market & income approach

Discount rate

12.9%

76,117

(1)Unobservable inputs were weighted by the relative fair value of the investments.

Summary of Fair Value of the Company Borrowings

The following are the principal amounts and fair values of the Company's borrowings as of December 31, 2024 and December 31, 2023. As of December 31, 2024 and December 31, 2023, there was no balance outstanding under the Unsecured Management Company Revolver. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company's marketplace credit ratings, or market quotes, if available.



	As of
	December 31, 2024				December 31, 2023
	Principal Amount		Fair Value		Principal Amount		Fair Value
BMO Subscription Line	$	58,000	$	58,273	$	—	$	—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details