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Fair Value (Tables)

6 Months Ended

Jun. 30, 2025

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 June 30, 2025:


	Total		Level I		Level II		Level III
First lien	$	392,796	$	—	$	24,550	$	368,246
Second lien	9,971		—		—		9,971
Subordinated	1,908		—		—		1,908
Structured finance obligations	474		—		—		474
Equity and other	4,266		—		—		4,266
Total investments	$	409,415	$	—	$	24,550	$	384,865

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

Summary of Changes in Level III Portfolio Investments

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended June 30, 2025, 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 June 30, 2025:


	Total		First Lien		Second Lien		Subordinated		Structured Finance Obligations		Equity and other
Fair Value, March 31, 2025	$	368,063	$	358,356	$	3,186	$	1,830	$	472	$	4,219
Total gains or losses included in earnings:
Net realized gains (losses) on investments	(3)		(3)		—		—		—		—
Net change in unrealized appreciation (depreciation) of investments	(185)		(166)		(34)		13		2		—
Purchases, including capitalized PIK and revolver fundings	36,411		36,299		—		65		—		47
Proceeds from sales and paydowns of investments	(23,485)		(23,485)		—		—		—		—
Transfers into Level III(1)	8,783		1,964		6,819		—		—		—
Transfers out of Level III(1)	(4,719)		(4,719)		—		—		—		—
Fair Value, June 30, 2025	$	384,865	$	368,246	$	9,971	$	1,908	$	474	$	4,266
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:	$	(196)	$	(177)	$	(34)	$	13	$	2	$	—

(1)As of June 30, 2025, portfolio investments were transferred out of Level III into Level II and into Level III from 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 three months ended June 30, 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 June 30, 2024:


	Total		First Lien		Second Lien		Subordinated
Fair Value, March 31, 2024	$	116,952	$	113,006	$	3,946	$	—
Total gains or losses included in earnings:
Net realized (losses) gains on investments	4		4		—		—
Net change in unrealized appreciation (depreciation) of investments	572		509		63		—
Purchases, including capitalized PIK and revolver fundings	115,515		108,152		5,748		1,615
Proceeds from sales and paydowns of investments	(13,828)		(13,053)		(775)		—
Transfers into Level III(1)	1,989		1,989		—		—
Transfers out of Level III(1)	(5,157)		(1,980)		(3,177)		—
Fair Value, June 30, 2024	$	216,047	$	208,627	$	5,805	$	1,615
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:	$	539	$	482	$	57	$	—

(1)As of June 30, 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 six months ended June 30, 2025, 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 June 30, 2025:


	Total		First Lien		Second Lien		Subordinated		Structured Finance Obligations		Equity and other
Fair Value, December 31, 2024	$	331,675	$	321,600	$	4,115	$	1,741	$	—	$	4,219
Total gains or losses included in earnings:
Net realized gains (losses) on investments	(11)		(11)		—		—		—		—
Net change in unrealized appreciation (depreciation) of investments	(127)		(163)		(6)		40		2		—
Purchases, including capitalized PIK and revolver fundings	69,148		68,414		560		127		—		47
Proceeds from sales and paydowns of investments	(32,173)		(32,173)		—		—		—		—
Transfers into Level III(1)	16,353		10,579		5,302		—		472		—

Fair Value, June 30, 2025	$	384,865	$	368,246	$	9,971	$	1,908	$	474	$	4,266
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:	$	(146)	$	(182)	$	(6)	$	40	$	2	$	—

(1)As of June 30, 2025, portfolio investments were transferred into Level III from 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 six months ended June 30, 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 June 30, 2024:


	Total		First Lien		Second Lien		Subordinated
Fair Value, December 31, 2023	$	76,117	$	75,365	$	752	$	—
Total gains or losses included in earnings:
Net realized gains (losses) on investments	4		4		—		—
Net change in unrealized appreciation (depreciation) of investments	1,074		994		80		—
Purchases, including capitalized PIK and revolver fundings	152,223		144,860		5,748		1,615
Proceeds from sales and paydowns of investments	(14,355)		(13,580)		(775)		—
Transfers into Level III(1)	2,974		2,974		—		—
Transfers out of Level III(1)	(1,990)		(1,990)		—		—
Fair Value, June 30, 2024	$	216,047	$	208,627	$	5,805	$	1,615
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:	$	1,024	$	967	$	57	$	—

Summary of Unobservable Inputs

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of June 30, 2025 were as follows:


					Range
Type	Fair Value as of June 30, 2025		Approach	Unobservable Input	Low		High		Weighted Average (1)
First lien	$	356,553	Market & income approach	EBITDA multiple	7.0x		36.0x		17.7x
				Revenue multiple	5.0x		13.0x		10.2x
				Discount rate	6.4	%	12.2	%	8.7	%

	11,694		Other	N/A (2)	N/A		N/A		N/A
Second lien	9,971		Market & income approach	EBITDA multiple	14.0x		18.0x		16.0x
				Discount rate	9.0%		14.0%		9.3%


Subordinated	1,908		Market & income approach	EBITDA multiple	13.5x		15.5x		14.5x
				Discount rate	14.3	%	14.3	%	14.3	%
Structured Finance Obligations	474		Income approach	Discount rate	11.3	%	11.3	%	11.3	%
Equity and other	4,265		Market & income approach	EBITDA multiple	13.8x		18.0x		17.4x
				Discount rate	7.9%		13.4%		11.8	%




	$	384,865

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

(2)Fair value was determined based on transaction pricing or a 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, 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.

Summary of Fair Value of the Company Borrowings

The following are the principal amounts and fair values of the Company's borrowings as of June 30, 2025 and December 31, 2024. As of June 30, 2025 and December 31, 2024, 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
	June 30, 2025				December 31, 2024
	Principal Amount		Fair Value		Principal Amount		Fair Value
BMO Subscription Line	$	18,000	$	18,043	$	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