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Fair Value Measurements | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The following tables present the fair value hierarchy of financial instruments:
| March 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total
First lien debt | $ | — |  |  | $ | 199,713 |  |  | $ | 9,225,290 |  |  | $ | 9,425,003 |
Second lien debt | — |  |  | — |  |  | 46,678 |  |  | 46,678 |
Equity investments | — |  |  | — |  |  | 154,521 |  |  | 154,521 |
Total | $ | — |  |  | $ | 199,713 |  |  | $ | 9,426,489 |  |  | $ | 9,626,202 |
| December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
First lien debt | $ | — |  |  | $ | 144,452 |  |  | $ | 9,275,511 |  |  | $ | 9,419,963 |
Second lien debt | — |  |  | — |  |  | 46,336 |  |  | 46,336 |
Equity investments | — |  |  | — |  |  | 150,949 |  |  | 150,949 |
Total | $ | — |  |  | $ | 144,452 |  |  | $ | 9,472,796 |  |  | $ | 9,617,248 |
The following tables present changes in the fair value of financial instruments for which Level 3 inputs were used to determine the fair value:
| Three Months Ended March 31, 2023
| First Lien Debt |  | Second Lien Debt |  | Equity Investments |  | Total Investments
Fair value, beginning of period | $ | 9,275,511 |  |  | $ | 46,336 |  |  | $ | 150,949 |  |  | $ | 9,472,796 |
Purchases of investments | 114,229 |  |  | 411 |  |  | — |  |  | 114,640 |
Proceeds from principal repayments and sales of investments | (71,040) |  |  | — |  |  | — |  |  | (71,040) |
Accretion of discount/amortization of premium | 8,407 |  |  | 36 |  |  | — |  |  | 8,443 |
Net realized gain (loss) | 46 |  |  | — |  |  | — |  |  | 46 |
Net change in unrealized appreciation (depreciation) | (14,862) |  |  | (105) |  |  | 3,572 |  |  | (11,395) |
Transfers into Level 3 (1) | 4,938 |  |  | — |  |  | — |  |  | 4,938 |
Transfers out of Level 3 (1) | (91,939) |  |  | — |  |  | — |  |  | (91,939) |
Fair value, end of period | $ | 9,225,290 |  |  | $ | 46,678 |  |  | $ | 154,521 |  |  | $ | 9,426,489 |
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of March 31, 2023 included in net unrealized appreciation (depreciation) on the Consolidated Statements of Operations | $ | (14,862) |  |  | $ | (105) |  |  | $ | 3,572 |  |  | $ | (11,395) |
| Three Months Ended March 31, 2022
| First Lien Debt |  | Second Lien Debt |  | Equity Investments |  | Total Investments
Fair value, beginning of period | $ | 9,288,184 |  |  | $ | 42,880 |  |  | $ | 170,265 |  |  | $ | 9,501,329 |
Purchases of investments | 253,310 |  |  | 265 |  |  | 7,264 |  |  | 260,839 |
Proceeds from principal repayments and sales of investments | (35,031) |  |  | — |  |  | (10,687) |  |  | (45,718) |
Accretion of discount/amortization of premium | 9,212 |  |  | 19 |  |  | — |  |  | 9,231 |
Net realized gain (loss) | (62) |  |  | — |  |  | 5,920 |  |  | 5,858 |
Net change in unrealized appreciation (depreciation) | 428 |  |  | 79 |  |  | 2,384 |  |  | 2,891 |
Transfers into Level 3 (1) | 25,772 |  |  | — |  |  | — |  |  | 25,772 |
Transfers out of Level 3 (1) | — |  |  | — |  |  | — |  |  | — |
Fair value, end of period | $ | 9,541,813 |  |  | $ | 43,243 |  |  | $ | 175,146 |  |  | $ | 9,760,202 |
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of March 31, 2022 included in net unrealized appreciation (depreciation) on the Consolidated Statements of Operations | $ | 18 |  |  | $ | 81 |  |  | $ | 7,152 |  |  | $ | 7,251 |
(1)For the three months ended March 31, 2023 and 2022, transfers into or out of Level 3 were primarily due to decreased or increased price transparency. The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. These tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.
| March 31, 2023
|  |  |  |  |  |  | Range |  |
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Low |  | High |  | Weighted Average (1)
Investments in first lien debt | $ | 9,219,940 |  |  | Yield analysis |  | Discount rate |  | 6.39 | % |  | 20.62 | % |  | 10.03 | %
| 5,350 |  |  | Market quotations |  | Broker quoted price |  | 96.50 | % |  | 96.50 | % |  | 96.50 | %
| 9,225,290 |  |  |  |  |  |  |  |  |  |  |
Investments in second lien debt | 46,678 |  |  | Yield analysis |  | Discount rate |  | 10.15 | % |  | 13.98 | % |  | 12.53 | %
Investments in equity | 105,862 |  |  | Market approach |  | Performance multiple |  | 5.70x |  | 39.66x |  | 12.66x
| 25,566 |  |  | Option pricing model |  | Expected volatility |  | 30.00 | % |  | 50.00 | % |  | 41.80 | %
| 23,093 |  |  | Yield analysis |  | Discount rate |  | 11.67 | % |  | 13.55 | % |  | 12.88 | %
| 154,521 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 9,426,489 |  |  |  |  |  |  |  |  |  |  |
| December 31, 2022
|  |  |  |  |  |  | Range |  |
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Low |  | High |  | Weighted Average (1)
Investments in first lien debt | $ | 9,037,133 |  |  | Yield analysis |  | Discount rate |  | 6.83 | % |  | 19.84 | % |  | 10.13 | %
| 238,378 |  |  | Market quotations |  | Broker quoted price |  | 82.00 | % |  | 96.75 | % |  | 94.19 | %
| 9,275,511 |  |  |  |  |  |  |  |  |  |  |
Investments in second lien debt | 46,336 |  |  | Yield analysis |  | Discount rate |  | 10.43 | % |  | 14.25 | % |  | 12.60 | %
Investments in equity | 105,782 |  |  | Market approach |  | Performance multiple |  | 5.50x |  | 29.00x |  | 13.41x
| 22,481 |  |  | Option pricing model |  | Expected volatility |  | 30.00 | % |  | 50.00 | % |  | 43.46 | %
| 22,686 |  |  | Yield analysis |  | Discount rate |  | 11.31 | % |  | 13.75 | % |  | 12.74 | %
| 150,949 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 9,472,796 |  |  |  |  |  |  |  |  |  |  |
(1)Weighted averages are calculated based on fair value of investments. The significant unobservable input used in the yield analysis is the discount rate based on comparable market yields. The significant unobservable input used for market quotations are broker quoted prices provided by independent pricing services. The significant unobservable input used under the market approach is the performance multiple. Significant increases in discount rates would result in a significantly lower fair value measurement. Significant decreases in quoted prices or performance multiples would result in a significantly lower fair value measurement. Financial Instruments Not Carried at Fair Value Debt The fair value of the Company’s SPV Financing Facilities (as defined in Note 6) and Revolving Credit Facility (as defined in Note 6), as of March 31, 2023 and December 31, 2022, approximates their carrying value as the credit facilities have variable interest based on selected short term rates. These financial instruments would be categorized as Level 3 within the hierarchy. The following table presents the fair value measurements of the Company's Unsecured Notes (as defined in Note 6) had they been accounted for at fair value. These financial instruments would be categorized as Level 3 as of March 31, 2023 and as Level 2 as of December 31, 2022 within the hierarchy.
| March 31, 2023 |  | December 31, 2022
| Fair Value |  | Fair Value
2023 Notes | $ | 390,080 |  |  | $ | 397,481 |
2026 Notes | 728,587 |  |  | 740,171 |
New 2026 Notes | 611,865 |  |  | 619,144 |
2027 Notes | 524,029 |  |  | 546,117 |
2028 Notes | 528,846 |  |  | 522,809 |
Total | $ | 2,783,407 |  |  | $ | 2,825,722 |
Other The carrying amounts of the Company’s other assets and liabilities approximate fair value. These financial instruments would be categorized as Level 3 within the hierarchy.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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