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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Investments Measured at Fair Value on Recurring Basis Investments measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations as of September 30, 2023 and December 31, 2022.
(in thousands)Balance as of
September 30,
2023		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Description
Other assets     
Escrow Receivables$748 $— $— $748 
    
Investments   
Senior Secured Debt$3,021,950 $— $— $3,021,950 
Unsecured Debt69,930 — — 69,930 
Preferred Stock42,290 — — 42,290 
Common Stock (1)
94,705 55,056 — 39,649 
Warrants27,833 — 7,715 20,118 
 $3,256,708 $55,056 $7,715 $3,193,937 
Investment Funds & Vehicles measured at Net Asset Value (2)
4,683    
Total Investments, at fair value$3,261,391    
Derivative Instruments (3)
230    
Total Investments, at fair value including derivative instruments$3,261,621    
(in thousands)Balance as of
December 31,
2022		Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Description
Other assets     
Escrow Receivables$875 $— $— $875 
    
Investments   
Senior Secured Debt$2,741,388 $— $— $2,741,388 
Unsecured Debt54,056 — — 54,056 
Preferred Stock41,488 — — 41,488 
Common Stock (1)
92,484 66,027 1,398 25,059 
Warrants30,646 — 11,227 19,419 
 $2,960,062 $66,027 $12,625 $2,881,410 
Investment Funds & Vehicles measured at Net Asset Value(2)
3,893    
Total Investments, at fair value$2,963,955    
(1)Common Stock includes non-voting security in the form of a promissory note with a lien on shares of issuer's Common Stock.
(2)In accordance with U.S. GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are not categorized within the fair value hierarchy as per ASC 820. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying Consolidated Statement of Assets and Liabilities.
(3)Derivative Instruments are carried at fair value and a level 2 security within the Company's fair value hierarchy.
Summary of Reconciliation Changes for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis
The table below presents a reconciliation of changes for all financial assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023 and 2022.
(in thousands)Balance as of
January 1, 2023
Net Realized
Gains (Losses) (1)
Net Change in
Unrealized
Appreciation
(Depreciation) (2)
Purchases (5)
Sales
Repayments(6)
Gross
Transfers
into
Level 3 (3)
Gross
Transfers
out of
Level 3 (3)
Balance as of
September 30, 2023
Investments
Senior Secured Debt$2,741,388 $(5,400)$(22,135)$1,003,953 $— $(695,856)$— $— $3,021,950 
Unsecured Debt54,056 — 4,958 10,916 — — — — 69,930 
Preferred Stock41,488 (3,441)1,392 2,851 — — — — 42,290 
Common Stock25,059 — 10,684 4,500 (594)— — — 39,649 
Warrants19,419 (3,443)1,539 3,711 (1,108)— — — 20,118 
Other Assets             
Escrow Receivable875 80 — — (207)— — — 748 
Total$2,882,285 $(12,204)$(3,562)$1,025,931 $(1,909)$(695,856)$— $— $3,194,685 
(in thousands)Balance as of
January 1, 2022
Net Realized
Gains (Losses) (1)
Net Change in
Unrealized
Appreciation
(Depreciation) (2)
Purchases (5)
Sales
Repayments(6)
Gross
Transfers
into
Level 3 (4)
Gross
Transfers
out of
Level 3 (4)
Balance as of
September 30, 2022
Investments              
Senior Secured Debt$2,156,709 $(1,883)$(11,377)$854,978 $(73,500)$(314,417)$— $(3,504)$2,607,006 
Unsecured Debt52,890 — (1,880)3,383 — — — — 54,393 
Preferred Stock69,439 7,966 (22,458)3,614 (11,101)— — (6,422)41,038 
Common Stock21,968 (74)9,462 — (19)— 207 (3,942)27,602 
Warrants27,477 992 (13,795)6,127 (3,162)— — — 17,639 
Other Assets             
Escrow Receivable561 401 (328)1,148 (500)— — — 1,282 
Total$2,329,044 $7,402 $(40,376)$869,250 $(88,282)$(314,417)$207 $(13,868)$2,748,960 
(1)Included in net realized gains (losses) in the accompanying Consolidated Statements of Operations.
(2)Included in net change in unrealized appreciation (depreciation) in the accompanying Consolidated Statements of Operations.
(3)There were no transfers into or out of Level 3 during the nine months ended September 30, 2023.
(4)Transfers out of Level 3 during the nine months ended September 30, 2022, related to the initial public offerings of Gelesis, Inc., Pineapple Energy, LLC, and the conversion of Level 3 debt investments into common stock investments. Transfers into Level 3 during the nine months ended September 30, 2022 related to the decline of liquidity of Kaleido Biosciences, Inc. shares.
(5)Amounts listed above are inclusive of loan origination fees received at the inception of the loan which are deferred and amortized into fee income as well as the accretion of existing loan discounts and fees during the period. Escrow receivable purchases may include additions due to proceeds held in escrow from the liquidation of level 3 investments. Amounts are net of purchases assigned to the Adviser Funds.
(6)Amounts listed above include the acceleration and payment of loan discounts and loan fees due to early payoffs or restructures along with regularly scheduled amortization.
Schedule of Quantitative Information of Fair Value Measurements
The following tables provide quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2023 and December 31, 2022. In addition to the techniques and inputs noted in the tables below, according to the Company’s valuation policy, the Company may also use other valuation techniques and methodologies when determining the Company’s fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements. See the accompanying Consolidated Schedule of Investments for the fair value of the Company’s investments. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Summary of Significant Accounting Policies”. The significant unobservable input used in the fair value measurement of the Company’s escrow receivables is the amount recoverable at the contractual maturity date of the escrow receivable.
Investment Type - Level 3
Debt Investments		Fair Value as of
September 30, 2023
(in thousands)		Valuation
Techniques/ Methodologies
Unobservable Input(1)
Range
Weighted
Average(2)
Pharmaceuticals$1,086,232 Market Comparable CompaniesHypothetical Market Yield
11.42% - 20.74%
14.09%
  Premium/(Discount)
(1.00)% - 3.50%
0.02%
      
Technology1,151,128 Market Comparable CompaniesHypothetical Market Yield
11.56% - 20.25%
15.38%
  Premium/(Discount)
(0.75)% - 3.25%
0.38%
 23,491 Convertible Note AnalysisProbability weighting of alternative outcomes
1.00% - 50.00%
35.26%
24,555 
Liquidation (3)
Probability weighting of alternative outcomes
50.00% - 50.00%
50.00%
      
Sustainable and Renewable Technology1,768 Market Comparable CompaniesHypothetical Market Yield
11.03% - 11.03%
11.03%
  Premium/(Discount)
0.75% - 0.75%
0.75%
      
Lower Middle Market278,012 Market Comparable CompaniesHypothetical Market Yield
13.25% - 17.37%
13.29%
  Premium/(Discount)
(0.75)% - 1.75%
0.14%
 6,243 
Liquidation (3)
Probability weighting of alternative outcomes
20.00% - 80.00%
80.00%
Debt Investments for which Cost Approximates Fair Value
 394,728 Debt Investments originated within 6 months  
 23,494 
Imminent Payoffs(4)
  
 102,229 Debt Investments Maturing in Less than One Year
 $3,091,880 Total Level 3 Debt Investments
(1)The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The premiums/(discounts) relate to company specific characteristics such as underlying investment performance, security liens, and other characteristics of the investment. Significant increases (decreases) in the inputs in isolation may result in a significantly lower (higher) fair value measurement, depending on the materiality of the investment.
Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:
•Pharmaceuticals, above, is comprised of debt investments in the “Drug Discovery & Development” and “Healthcare Services, Other” industries.
•Technology, above, is comprised of debt investments in the “Communications & Networking”, “Information Services”, “Consumer & Business Services”, “Media/Content/Info” and “Software” industries.
•Sustainable and Renewable Technology, above, is comprised of debt investments in the “Sustainable and Renewable Technology” industry.
•Lower Middle Market, above, is comprised of debt investments in the “Healthcare Services – Other”, “Consumer & Business Services”, “Diversified Financial Services”, “Sustainable and Renewable Technology”, and “Software” industries.
(2)The weighted averages are calculated based on the fair market value of each investment.
(3)The significant unobservable input used in the fair value measurement of impaired debt securities is the probability weighting of alternative outcomes.
(4)Imminent payoffs represent debt investments that the Company expects to be fully repaid within the next three months, prior to their scheduled maturity date.
Investment Type - Level 3
Debt Investments
Fair Value as of
December 31, 2022
(in thousands)		Valuation Techniques/ Methodologies
Unobservable Input(1)
Range
Weighted
Average(2)
Pharmaceuticals$903,427 Market Comparable CompaniesHypothetical Market Yield
11.74% - 19.04%
15.17%
  Premium/(Discount)
(0.75)% - 1.75%
0.01%
      
Technology967,108 Market Comparable CompaniesHypothetical Market Yield
12.05% - 18.53%
15.21%
  Premium/(Discount)
(1.00)% - 1.50%
0.20%
 20,356 Convertible Note AnalysisProbability weighting of alternative outcomes
1.00% - 50.00%
35.79%
 1,671 
Liquidation(3)
Probability weighting of alternative outcomes
5.00% - 80.00%
48.29%
      
Sustainable and Renewable Technology3,006 Market Comparable CompaniesHypothetical Market Yield
14.71% - 14.71%
14.71%
   Premium/(Discount)
0.75% - 0.75%
0.75%
      
Lower Middle Market328,393 Market Comparable CompaniesHypothetical Market Yield
13.68% -18.49%
14.82%
   Premium/(Discount)
(2.00)% - 0.75%
(0.43)%
 8,042 
Liquidation(3)
Probability weighting of alternative outcomes
20.00% - 80.00%
80.00%
Debt Investments for which Cost Approximates Fair Value
 392,168 Debt Investments originated within 6 months  
 77,676 
Imminent Payoffs(4)
  
 93,597 Debt Investments Maturing in Less than One Year
 $2,795,444 Total Level 3 Debt Investments
(1)The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The premiums/(discounts) relate to company specific characteristics such as underlying investment performance, security liens, and other characteristics of the investment. Significant increases (decreases) in the inputs in isolation may result in a significantly lower (higher) fair value measurement, depending on the materiality of the investment.
Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:
•Pharmaceuticals, above, is comprised of debt investments in the “Drug Discovery & Development” and “Healthcare Services, Other” industries.
•Technology, above, is comprised of debt investments in the “Communications & Networking”, “Information Services”, “Consumer & Business Services”, “Media/Content/Info” and “Software” industries.
•Sustainable and Renewable Technology, above, is comprised of debt investments in the “Sustainable and Renewable Technology” industry.
•Lower Middle Market, above, is comprised of debt investments in the “Healthcare Services – Other”, “Consumer & Business Services”, “Diversified Financial Services”, “Sustainable and Renewable Technology”, and “Software” industries.
(2)The weighted averages are calculated based on the fair market value of each investment.
(3)The significant unobservable input used in the fair value measurement of impaired debt securities is the probability weighting of alternative outcomes.
(4)Imminent payoffs represent debt investments that the Company expects to be fully repaid within the next three months, prior to their scheduled maturity date.
Investment Type - Level 3 Equity and Warrant InvestmentsFair Value as of
September 30, 2023
(in thousands)		Valuation Techniques/
Methodologies
Unobservable Input(1)
Range
Weighted Average(5)
Equity Investments$41,339 Market Comparable Companies
EBITDA Multiple(2)
11.1x - 11.1x
11.1x
  
Revenue Multiple(2)
0.9x - 18.9x
7.5x
  
Tangible Book Value Multiple(2)
1.5x - 1.5x
1.5x
  
Discount for Lack of Marketability(3)
4.53% - 28.69%
20.66%
 7,513 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(86.81)% - 25.91%
(10.07)%
 28,668 Discounted Cash Flow
Discount Rate(7)
19.83% - 32.14%
30.56%
 — Liquidation
Revenue Multiple(2)
1.7x - 1.7x
1.7x
  
Discount for Lack of Marketability(3)
85.00% - 85.00%
85.00%
 4,419 
Other(6)
   
Warrant Investments16,640 Market Comparable Companies
EBITDA Multiple(2)
11.1x - 11.1x
11.1x
  
Revenue Multiple(2)
0.8x - 14.0x
4.1x
  
Discount for Lack of Marketability(3)
5.61% - 30.50%
19.65%
 2,838 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(72.80)%- 18.71%
(3.58)%
640 
Other(6)
Total Level 3 Equity and Warrant Investments$102,057     
(1)The significant unobservable inputs used in the fair value measurement of the Company’s warrant and equity securities are revenue and/or earnings multiples (e.g. EBITDA, EBT, ARR), market equity adjustment factors, and discounts for lack of marketability. Significant increases/(decreases) in the inputs in isolation would result in a significantly higher/(lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing or merger/acquisition events near the measurement date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.
(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.
(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.
(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.
(5)Weighted averages are calculated based on the fair market value of each investment.
(6)The fair market value of these investments is derived based on recent private market and merger and acquisition transaction prices.
(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.
Investment Type - Level 3 Equity and Warrant InvestmentsFair Value as of
December 31, 2022
(in thousands)		Valuation Techniques/
Methodologies
Unobservable Input(1)
Range
Weighted Average(5)
Equity Investments$30,086 Market Comparable Companies
EBITDA Multiple(2)
12.4x - 12.4x
12.4x
  
Revenue Multiple(2)
0.7x - 16.1x
7.4x
  
Tangible Book Value Multiple(2)
1.6x - 1.6x
1.6x
  
Discount for Lack of Marketability(3)
8.11% - 28.90%
19.79%
 13,795 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(97.82)% - 16.34%
(16.69)%
 19,153 Discounted Cash Flow
Discount Rate(7)
17.72% - 30.13%
24.46%
 — Liquidation
Revenue Multiple(2)
2.1x - 2.1x
2.1x
   
Discount for Lack of Marketability(3)
85.00% - 85.00%
85.00%
 3,513 
Other(6)
   
Warrant Investments12,479 Market Comparable Companies
EBITDA Multiple(2)
12.4x -12.4x
12.4x
  
Revenue Multiple(2)
0.6x - 8.8x
3.4x
  
Discount for Lack of Marketability(3)
8.11% - 32.70%
18.97%
 6,934 Market Adjusted OPM Backsolve
Market Equity Adjustment(4)
(97.82)% - 66.43%
(8.86)%
 — Liquidation
Revenue Multiple(2)
6.2x - 6.2x
6.2x
  
Discount for Lack of Marketability(3)
90.00% - 90.00%
90.00%
 6 
Other(6)
   
Total Level 3 Equity and Warrant Investments$85,966     
(1)The significant unobservable inputs used in the fair value measurement of the Company’s warrant and equity securities are revenue and/or earnings multiples (e.g. EBITDA, EBT, ARR), market equity adjustment factors, and discounts for lack of marketability. Significant increases/(decreases) in the inputs in isolation would result in a significantly higher/(lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing or merger/acquisition events near the measurement date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.
(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.
(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.
(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.
(5)Weighted averages are calculated based on the fair market value of each investment.
(6)The fair market value of these investments is derived based on recent market transactions.
(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.
Schedule of Fair Value Hierarchy Of Outstanding Borrowings
The following tables provide additional information about the approximate fair value and level in the fair value hierarchy of the Company’s outstanding borrowings as of September 30, 2023 and December 31, 2022:
(in thousands)September 30, 2023
DescriptionCarrying
Value		Approximate
Fair Value		Identical Assets
(Level 1)		Observable Inputs
(Level 2)		Unobservable Inputs
(Level 3)
SBA Debentures$170,175 $148,274 $— $— $148,274 
July 2024 Notes104,754 102,783 — — 102,783 
February 2025 Notes49,837 47,443 — — 47,443 
June 2025 Notes69,717 66,096 — — 66,096 
June 2025 3-Year Notes49,732 48,541 — — 48,541 
March 2026 A Notes49,771 45,482 — — 45,482 
March 2026 B Notes49,751 45,537 — — 45,537 
September 2026 Notes322,094 273,407 — — 273,407 
January 2027 Notes345,602 298,106 — — 298,106 
2031 Asset-Backed Notes148,397 139,500 — 139,500 — 
2033 Notes38,908 38,480 — 38,480 — 
MUFG Bank Facility(1)
61,000 61,000 — — 61,000 
SMBC Facility173,000 173,000 — — 173,000 
Total$1,632,738 $1,487,649 $— $177,980 $1,309,669 
(in thousands)December 31, 2022
DescriptionCarrying
Value		Approximate
Fair Value		Identical Assets
(Level 1)		Observable Inputs
(Level 2)		Unobservable Inputs
(Level 3)
SBA Debentures$169,738 $155,257 $— $— $155,257 
July 2024 Notes104,533 102,019 — — 102,019 
February 2025 Notes49,751 47,044 — — 47,044 
June 2025 Notes69,595 64,198 — — 64,198 
June 2025 3-Year Notes49,616 47,528 — — 47,528 
March 2026 A Notes49,700 45,512 — — 45,512 
March 2026 B Notes49,673 45,588 — — 45,588 
September 2026 Notes321,358 269,509 — — 269,509 
January 2027 Notes344,604 296,826 — — 296,826 
2031 Asset-Backed Notes147,957 142,620 — 142,620 — 
2033 Notes38,826 39,344 — 39,344 — 
MUFG Bank Facility(1)
107,000 107,000 — — 107,000 
SMBC Facility72,000 72,000 — — 72,000 
Total$1,574,351 $1,434,445 $— $181,964 $1,252,481 
(1)In June 2022 the MUFG Bank Facility replaced the Union Bank Facility via an amendment which changed the lead lender.