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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments

As of March 31, 2025 and December 31, 2024, investments consisted of the following:

			As of
			March 31, 2025												December 31, 2024
			Amortized Cost(1)						Fair Value						Amortized Cost(1)						Fair Value
First lien senior secured loans(2)			$	16,207					$	15,901					$	15,519					$	15,179
Second lien senior secured loans			1,627						1,532						1,935						1,847
Subordinated certificates of the SDLP(3)			1,230						1,115						1,263						1,192
Senior subordinated loans			1,405						1,366						1,384						1,351
Preferred equity			2,680						2,645						2,667						2,649
Ivy Hill Asset Management, L.P.(4)			1,701						1,920						1,701						1,915
Other equity			1,928						2,651						1,905						2,587
Total			$	26,778					$	27,130					$	26,374					$	26,720

________________________________________

(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.

(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $9,983 and $9,828 respectively, as of March 31, 2025, and $8,772 and $8,624, respectively, as of December 31, 2024.

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 20 and 20 different borrowers as of March 31, 2025 and December 31, 2024, respectively.

(4)Includes the Company’s subordinated loan and equity investments in IHAM (as defined below), as applicable.

The Company uses GICS for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of March 31, 2025 and December 31, 2024 were as follows:

			As of
			March 31, 2025						December 31, 2024
Industry
Software and Services			23.6		%				24.5		%
Health Care Equipment and Services			13.4						12.0
Financial Services(1)			9.6						9.9
Commercial and Professional Services			9.5						9.4
Insurance			6.2						5.9
Consumer Services			5.2						5.1
Consumer Distribution and Retail			5.0						5.7
Sports, Media and Entertainment			4.7						4.6
Investment Funds and Vehicles(2)			4.2						4.6
Independent Power and Renewable Electricity Producers			3.9						3.7
Capital Goods			2.9						2.7
Pharmaceuticals, Biotechnology and Life Sciences			2.5						2.6
Consumer Durables and Apparel			2.2						2.3
Food and Beverage			1.9						1.8
Automobiles and Components			1.3						1.4
Other			3.9						3.8
Total			100.0		%				100.0		%

________________________________________

(1)Includes the Company’s investment in IHAM.

(2)Includes the Company’s investment in the SDLP (as defined below), which had made first lien senior secured loans to 20 and 20 different borrowers as of March 31, 2025 and December 31, 2024, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.

			As of
			March 31, 2025						December 31, 2024
Geographic Region
West(1)			23.6		%				25.2		%
Midwest			21.6						20.9
Southeast			18.5						19.3
Mid-Atlantic			16.5						16.1
Northeast(2)			13.6						12.2
International			6.2						6.3
Total			100.0		%				100.0		%

________________________________________

(1)Includes the Company’s investment in the SDLP, which represented 4.1% and 4.5% of the total investment portfolio at fair value as of March 31, 2025 and December 31, 2024, respectively.

(2)Includes the Company’s investment in IHAM, which represented 7.0% and 7.1% of the total investment portfolio at fair value as of March 31, 2025 and December 31, 2024, respectively.

The amortized cost and fair value of the Company’s investment in IHAM as of March 31, 2025 and December 31, 2024 were as follows:

			As of
			March 31, 2025												December 31, 2024
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
Equity			$	1,701					$	1,920					$	1,701					$	1,915
Total investment in IHAM			$	1,701					$	1,920					$	1,701					$	1,915

Below is a summary of the SDLP’s portfolio.

			As of
			March 31, 2025						December 31, 2024
Total first lien senior secured loans(1)(2)			$	4,691					$	4,759
Largest loan to a single borrower(1)			$	399					$	400
Total of five largest loans to borrowers(1)			$	1,702					$	1,692
Number of borrowers in the SDLP			20						20
Commitments to fund delayed draw loans(3)			$	463					$	489

___________________________________________________________________________

(1)At principal amount.

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of March 31, 2025 and December 31, 2024, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $3,732 and $3,937, respectively.

(3)As discussed above, these commitments have been approved by the investment committee of the SDLP.

Schedule of Dividend and Interest Income

The interest income and dividend income that the Company earned from IHAM for the three months ended March 31, 2025 and 2024 were as follows:

			For the Three Months Ended March 31,
			2025						2024
Interest income			$	—					$	1
Dividend income			$	73					$	66

The interest income from the Company’s investment in the SDLP Certificates and capital structuring service fees and other income earned for the three months ended March 31, 2025 and 2024 were as follows:

			For the Three Months Ended March 31,
			2025						2024
Interest income			$	38					$	43
Capital structuring service fees and other income			$	3					$	3

Schedule of Funded Capital and Unfunded Capital Commitments of the SDLP

The yields at amortized cost and fair value of the Company’s investments in IHAM as of March 31, 2025 and December 31, 2024 were as follows:

						As of
						March 31, 2025												December 31, 2024
						Amortized Cost						Fair Value						Amortized Cost						Fair Value
Equity(1)						17.2		%				15.2		%				16.7		%				14.8		%

_______________________________________________________________________________

(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the regular dividend received by the Company related to the Company’s equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.

Below is a summary of the funded capital and unfunded capital commitments of the SDLP.

			As of
			March 31, 2025						December 31, 2024
Total capital funded to the SDLP(1)			$	4,855					$	5,054
Total capital funded to the SDLP by the Company(1)			$	1,282					$	1,310
Total unfunded capital commitments to the SDLP(2)			$	463					$	489
Total unfunded capital commitments to the SDLP by the Company(2)			$	111					$	119

___________________________________________________________________________

(1)At principal amount.

(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.

The amortized cost and fair value of the SDLP Certificates held by the Company and the Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of March 31, 2025 and December 31, 2024 were as follows:

			As of
			March 31, 2025												December 31, 2024
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
Investment in the SDLP Certificates			$	1,230					$	1,115					$	1,263					$	1,192
Yield on the investment in the SDLP Certificates			12.0		%				13.2		%				12.4		%				13.2		%

Schedule of Selected Financial Information

Selected Financial Information

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025 and 2024 are presented below.

In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.

When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the Consolidated IHAM Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, the Company believes an assessment of IHAM's business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.

			As of March 31, 2025
			IHAM						Consolidated IHAM Vehicles(1)						Eliminations						Consolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)			$	2,366					$	9,253					$	(2,270)					$	9,349
Cash and cash equivalents			9						559						—						568
Other assets			62						79						(55)						86
Total assets			$	2,437					$	9,891					$	(2,325)					$	10,003
Liabilities
Debt			$	610					$	7,004					$	—					$	7,614
Subordinated notes(3)			—						1,100						(780)						320
Other liabilities			11						362						(13)						360
Total liabilities			621						8,466						(793)						8,294
Equity
Contributed capital			1,701						—						—						1,701
Accumulated earnings			169						—						—						169
Net unrealized losses on investments and foreign currency transactions(4)			(54)						—						—						(54)
Non-controlling interests in Consolidated IHAM Vehicles(5)			—						1,425						(1,532)						(107)
Total equity			1,816						1,425						(1,532)						1,709
Total liabilities and equity			$	2,437					$	9,891					$	(2,325)					$	10,003

			As of December 31, 2024
			IHAM						Consolidated IHAM Vehicles(1)						Eliminations						Consolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)			$	2,160					$	8,098					$	(2,086)					$	8,172
Cash and cash equivalents			9						967						—						976
Other assets			60						122						(54)						128
Total assets			$	2,229					$	9,187					$	(2,140)					$	9,276
Liabilities
Debt			$	406					$	6,550					$	—					$	6,956
Subordinated notes(3)			—						1,025						(714)						311
Other liabilities			16						266						(13)						269
Total liabilities			422						7,841						(727)						7,536
Equity
Contributed capital			1,700						—						—						1,700
Accumulated earnings			186						—						—						186
Net unrealized losses on investments and foreign currency transactions(4)			(79)						—						—						(79)
Non-controlling interests in Consolidated IHAM Vehicles(5)			—						1,346						(1,413)						(67)
Total equity			1,807						1,346						(1,413)						1,740
Total liabilities and equity			$	2,229					$	9,187					$	(2,140)					$	9,276

________________________________________

(1)Consolidated for GAAP purposes only.

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of March 31, 2025 and December 31, 2024 was $2,419 and $2,237, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of March 31, 2025 and December 31, 2024 was $9,493 and $8,343, respectively.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(4)As of March 31, 2025 and December 31, 2024, net unrealized losses of $61 and $70, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $143 and $171 as of March 31, 2025 and December 31, 2024, respectively.

			For the Three Months Ended March 31, 2025
			IHAM						Consolidated IHAM Vehicles(1)						Eliminations						Consolidated
Selected Statement of Operations Information:
Revenues
Investment income			$	67					$	217					$	(65)					$	219
Management fees and other income			12						2						(11)						3
Total revenues			79						219						(76)						222
Expenses
Interest expense			9						118						—						127
Distributions to subordinated notes			—						32						(23)						9
Management fees and other expenses			4						14						(11)						7
Total expenses			13						164						(34)						143
Net operating income			66						55						(42)						79
Net realized losses on investments and foreign currency			(9)						(55)						—						(64)
Net realized loss on extinguishment of debt			—						(1)						—						(1)
Net unrealized gains on investments, foreign currency and other transactions			25						13						(9)						29
Total net realized and unrealized gains (losses) on investments, foreign currency and other transactions			16						(43)						(9)						(36)
Net income			82						12						(51)						43
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles			—						12						(51)						(39)
Net income attributable to Ivy Hill Asset Management, L.P.			$	82					$	—					$	—					$	82

			For the Three Months Ended March 31, 2024
			IHAM						Consolidated IHAM Vehicles(1)						Eliminations						Consolidated
Selected Statement of Operations Information:
Revenues
Investment income			$	94					$	274					$	(92)					$	276
Management fees and other income			14						3						(13)						4
Total revenues			108						277						(105)						280
Expenses
Interest expense			10						150						—						160
Distributions to subordinated notes			—						53						(37)						16
Management fees and other expenses			4						18						(13)						9
Total expenses			14						221						(50)						185
Net operating income			94						56						(55)						95
Net realized gains (losses) on investments and foreign currency			5						(58)						(9)						(62)
Net realized loss on extinguishment of debt			—						(1)						—						(1)
Net unrealized (losses) gains on investments, foreign currency and other transactions			(17)						61						20						64
Total net realized and unrealized (losses) gains on investments, foreign currency and other transactions			(12)						2						11						1
Net income			82						58						(44)						96
Less: Net gain attributable to non-controlling interests in Consolidated IHAM Vehicles			—						58						(44)						14
Net income attributable to Ivy Hill Asset Management, L.P.			$	82					$	—					$	—					$	82

____________________________________

(1)Consolidated for GAAP purposes only.

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Tabular disclosure of condensed financial statements, including, but not limited to, the balance sheet, income statement, and statement of cash flows.

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