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Investments | 12 Months Ended
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Dec. 31, 2024
Schedule of Investments [Abstract] |
Investments | Investments Portfolio Composition The Company invests predominantly in senior secured private debt investments in well-established middle-market businesses that operate across a wide range of industries, as well as syndicated senior secured loans, structured product investments, bonds and other fixed income securities. Structured product investments include collateralized loan obligations and asset-backed securities. The Adviser’s existing SEC co-investment exemptive relief under the 1940 Act permits the Company and the Adviser’s affiliated private funds and SEC-registered funds to co-invest in loans originated by the Adviser, which allows the Adviser to efficiently implement its senior secured private debt investment strategy for the Company. The cost basis of the Company’s debt investments includes any unamortized purchased premium or discount, unamortized loan origination fees and PIK interest, if any. Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments and net assets, are shown in the following tables:
($ in thousands) |  | Cost |  | Percent of Total Portfolio |  | Fair Value |  | Percent of Total Portfolio |  | Percent of Total Net Assets
December 31, 2024: |  |  |  |  |  |  |  |  |  |
Senior debt and 1 st lien notes |  | $ | 1,747,841 |  |  | 69 | % |  | $ | 1,686,411 |  |  | 69 | % |  | 142 | %
Subordinated debt and 2 nd lien notes |  | 184,043 |  |  | 7 |  |  | 165,455 |  |  | 7 |  |  | 14 |
Structured products |  | 89,543 |  |  | 4 |  |  | 79,548 |  |  | 3 |  |  | 7 |
Equity shares |  | 360,691 |  |  | 14 |  |  | 409,129 |  |  | 17 |  |  | 34 |
Equity warrants |  | 76 |  |  | — |  |  | 2,732 |  |  | — |  |  | — |
Royalty rights |  | 3,627 |  |  | — |  |  | 5,833 |  |  | — |  |  | 1 |
Investments in joint ventures / PE fund |  | 136,875 |  |  | 6 |  |  | 100,164 |  |  | 4 |  |  | 8 |
|  | $ | 2,522,696 |  |  | 100 | % |  | $ | 2,449,272 |  |  | 100 | % |  | 206 | %
December 31, 2023: |  |  |  |  |  |  |  |  |  |
Senior debt and 1 st lien notes |  | $ | 1,705,353 |  |  | 67 | % |  | $ | 1,670,300 |  |  | 67 | % |  | 140 | %
Subordinated debt and 2 nd lien notes |  | 256,850 |  |  | 10 |  |  | 238,215 |  |  | 10 |  |  | 20 |
Structured products |  | 107,314 |  |  | 4 |  |  | 93,038 |  |  | 4 |  |  | 8 |
Equity shares |  | 320,335 |  |  | 13 |  |  | 374,704 |  |  | 15 |  |  | 31 |
Equity warrants |  | 76 |  |  | — |  |  | 2,392 |  |  | — |  |  | — |
Investments in joint ventures / PE fund |  | 145,648 |  |  | 6 |  |  | 110,066 |  |  | 4 |  |  | 9 |
|  | $ | 2,535,576 |  |  | 100 | % |  | $ | 2,488,715 |  |  | 100 | % |  | 208 | %
During the year ended December 31, 2024, the Company made 45 new investments totaling $341.7 million, made investments in existing portfolio companies totaling $298.6 million and made a $3.5 million equity co-investment alongside certain affiliates in a portfolio company that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation. During the year ended December 31, 2023, the Company made 39 new investments totaling $264.6 million, made investments in existing portfolio companies totaling $205.9 million, made a $67.5 million equity co-investment alongside certain affiliates in a portfolio company that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation and made additional investments in joint venture equity portfolio companies totaling $2.5 million. During the year ended December 31, 2022, the Company made 95 new investments totaling $884.8 million, purchased $442.2 million of investments as part of the Sierra Merger, made investments in existing portfolio companies totaling $258.5 million and made additional investments in joint venture equity portfolio companies totaling $13.8 million. The following table presents the Company’s investment portfolio at fair value as of December 31, 2024 and 2023, categorized by the ASC Topic 820 valuation hierarchy, as previously described:
| Fair Value at December 31, 2024
($ in thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Senior debt and 1st lien notes | $ | — |  |  | $ | 60,910 |  |  | $ | 1,625,501 |  |  | $ | 1,686,411 |
Subordinated debt and 2nd lien notes | — |  |  | 11,752 |  |  | 153,703 |  |  | 165,455 |
Structured products | — |  |  | 30,884 |  |  | 48,664 |  |  | 79,548 |
Equity shares | — |  |  | 654 |  |  | 408,475 |  |  | 409,129 |
Equity warrants | — |  |  |  |  | 2,732 |  |  | 2,732 |
Royalty rights | — |  |  |  |  | 5,833 |  |  | 5,833 |
Investments subject to leveling | $ | — |  |  | $ | 104,200 |  |  | $ | 2,244,908 |  |  | $ | 2,349,108 |
Investment in joint ventures / PE fund(1) |  |  |  |  |  |  | 100,164 |
|  |  |  |  |  |  | $ | 2,449,272 |
| Fair Value at December 31, 2023
($ in thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Senior debt and 1 st lien notes | $ | — |  |  | $ | 76,503 |  |  | $ | 1,593,797 |  |  | $ | 1,670,300 |
Subordinated debt and 2 nd lien notes | — |  |  | 14,417 |  |  | 223,798 |  |  | 238,215 |
Structured products | — |  |  | 50,066 |  |  | 42,972 |  |  | 93,038 |
Equity shares | 132 |  |  | — |  |  | 374,572 |  |  | 374,704 |
Equity warrants | — |  |  | — |  |  | 2,392 |  |  | 2,392 |
Investments subject to leveling | $ | 132 |  |  | $ | 140,986 |  |  | $ | 2,237,531 |  |  | $ | 2,378,649 |
Investments in joint ventures / PE fund(1) |  |  |  |  |  |  | 110,066 |
|  |  |  |  |  |  | $ | 2,488,715 |
(1)The Company’s investments in Jocassee, Sierra JV, Thompson Rivers, Waccamaw River and the MVC Private Equity Fund LP (each as defined below) are measured at fair value using NAV as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. The following tables reconcile the beginning and ending balances of the Company’s investment portfolio measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2024 and 2023:
Year Ended December 31, 2024: ($ in thousands) | Senior Debt and 1 st Lien Notes |  | Subordinated Debt and 2 nd Lien Notes |  | Structured Products |  | Equity Shares |  | Equity Warrants |  | Royalty Rights |  | Total
Fair value, beginning of period | $ | 1,593,797 |  |  | $ | 223,798 |  |  | $ | 42,972 |  |  | $ | 374,572 |  |  | $ | 2,392 |  |  | $ | — |  |  | $ | 2,237,531 |
New investments | 559,616 |  |  | 37,466 |  |  | 549 |  |  | 22,934 |  |  | — |  |  | 3,871 |  |  | 624,436 |
Investment restructuring | (27,652) |  |  | (9,620) |  |  | — |  |  | 15,023 |  |  | — |  |  | — |  |  | (22,249) |
Transfers into (out of) Level 3, net | (2,366) |  |  | — |  |  | 7,625 |  |  | (2,556) |  |  | — |  |  | — |  |  | 2,703 |
Proceeds from sales of investments / return of capital | (75,275) |  |  | (4,975) |  |  | (935) |  |  | (4,834) |  |  | — |  |  | (245) |  |  | (86,264) |
Loan origination fees received | (8,398) |  |  | (296) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,694) |
Principal repayments received | (380,761) |  |  | (94,066) |  |  | (2,999) |  |  | — |  |  | — |  |  | — |  |  | (477,826) |
Payment-in-kind interest / dividends | 7,711 |  |  | 3,668 |  |  | — |  |  | 9,884 |  |  | — |  |  | — |  |  | 21,263 |
Accretion of loan premium / discount | 637 |  |  | 115 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 752 |
Accretion of deferred loan origination revenue | 10,313 |  |  | 1,256 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,569 |
Realized gain (loss) | (24,371) |  |  | (6,361) |  |  | 42 |  |  | (1,171) |  |  | — |  |  | — |  |  | (31,861) |
Unrealized appreciation (depreciation) | (27,750) |  |  | 2,718 |  |  | 1,410 |  |  | (5,377) |  |  | 340 |  |  | 2,207 |  |  | (26,452) |
Fair value, end of period | $ | 1,625,501 |  |  | $ | 153,703 |  |  | $ | 48,664 |  |  | $ | 408,475 |  |  | $ | 2,732 |  |  | $ | 5,833 |  |  | $ | 2,244,908 |
Year Ended December 31, 2023: ($ in thousands) | Senior Debt and 1 st Lien Notes |  | Subordinated Debt and 2 nd Lien Notes |  | Structured Products |  | Equity Shares |  | Equity Warrants |  | Total
Fair value, beginning of period | $ | 1,591,356 |  |  | $ | 234,214 |  |  | $ | 17,827 |  |  | $ | 283,067 |  |  | $ | 1,057 |  |  | $ | 2,127,521 |
New investments | 396,040 |  |  | 49,525 |  |  | 28,286 |  |  | 94,595 |  |  | — |  |  | 568,446 |
Transfers into (out of) Level 3, net | (15,843) |  |  | 16,815 |  |  | — |  |  | 914 |  |  | — |  |  | 1,886 |
Proceeds from sales of investments / return of capital | (246,902) |  |  | (2,800) |  |  | (526) |  |  | (8,977) |  |  | — |  |  | (259,205) |
Loan origination fees received | (8,173) |  |  | (113) |  |  | — |  |  | — |  |  | — |  |  | (8,286) |
Principal repayments received | (151,817) |  |  | (83,986) |  |  | (1,018) |  |  | — |  |  | — |  |  | (236,821) |
Payment-in-kind interest / dividends | 6,757 |  |  | 9,877 |  |  | — |  |  | 8,677 |  |  | — |  |  | 25,311 |
Accretion of loan premium /discount | 668 |  |  | 916 |  |  | — |  |  | — |  |  | — |  |  | 1,584 |
Accretion of deferred loan origination revenue | 7,420 |  |  | 702 |  |  | — |  |  | — |  |  | — |  |  | 8,122 |
Realized gain (loss) | (1,746) |  |  | (43,902) |  |  | — |  |  | (590) |  |  | (102) |  |  | (46,340) |
Unrealized appreciation (depreciation) | 16,037 |  |  | 42,550 |  |  | (1,597) |  |  | (3,114) |  |  | 1,437 |  |  | 55,313 |
Fair value, end of period | $ | 1,593,797 |  |  | $ | 223,798 |  |  | $ | 42,972 |  |  | $ | 374,572 |  |  | $ | 2,392 |  |  | $ | 2,237,531 |
All realized gains and losses and unrealized appreciation and depreciation are included in earnings (changes in net assets) and are reported on separate line items within the Company’s Consolidated Statements of Operations. Pre-tax net unrealized depreciation on Level 3 investments of $55.9 million during the year ended December 31, 2024 was related to portfolio company investments that were still held by the Company as of December 31, 2024. Pre-tax net unrealized appreciation on Level 3 investments of $4.0 million during the year ended December 31, 2023 was related to portfolio company investments that were still held by the Company as of December 31, 2023. During the year ended December 31, 2024, the Company made investments of approximately $548.8 million in portfolio companies to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2024, the Company made investments of $95.0 million in companies to which it was previously committed to provide such financing. During the year ended December 31, 2023, the Company made investments of approximately $421.2 million in portfolio companies to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2023, the Company made investments of $119.3 million in companies to which it was previously committed to provide such financing. Jocassee Partners LLC On May 8, 2019, the Company entered into an agreement with South Carolina Retirement Systems Group Trust (“SCRS”) to create and co-manage Jocassee Partners LLC (“Jocassee”), a joint venture, which invests in a highly diversified asset mix including senior secured, middle-market, private debt investments, syndicated senior secured loans and structured product investments. The Company and SCRS committed to initially provide $50.0 million and $500.0 million, respectively, of equity capital to Jocassee. On June 2, 2022, the Company committed an additional $50.0 million to Jocassee. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments. For both years ended December 31, 2024 and 2023, Jocassee declared $62.8 million in dividends, of which $5.7 million was recognized as dividend income in the Company’s Consolidated Statements of Operations. The total value of Jocassee’s investment portfolio was $1,095.3 million as of December 31, 2024, as compared to $1,330.5 million as of December 31, 2023. As of December 31, 2024, Jocassee’s investments had an aggregate cost of $1,159.0 million, as compared to $1,375.7 million as of December 31, 2023. As of December 31, 2024 and December 31, 2023, the weighted average yield on the principal amount of Jocassee’s outstanding debt investments other than non-accrual debt investments was approximately 9.2% and 9.9%, respectively. As of December 31, 2024 and December 31, 2023, the Jocassee investment portfolio consisted of the following investments:
($ in thousands) | Cost |  | Percentage of Total Portfolio |  | Fair Value |  | Percentage of Total Portfolio
December 31, 2024: |  |  |  |  |  |  |
Senior debt and 1 st lien notes | $ | 1,092,038 |  |  | 94 | % |  | $ | 1,052,366 |  |  | 96 | %
Subordinated debt and 2 nd lien notes | 11,388 |  |  | 1 |  |  | 11,141 |  |  | 1 |
Equity shares | 874 |  |  | — |  |  | 636 |  |  | — |
Equity warrants | — |  |  | — |  |  | 455 |  |  | — |
Investment in joint ventures | 44,416 |  |  | 4 |  |  | 20,427 |  |  | 2 |
Short-term investments | 10,283 |  |  | 1 |  |  | 10,283 |  |  | 1 |
| $ | 1,158,999 |  |  | 100 | % |  | $ | 1,095,308 |  |  | 100 | %
December 31, 2023: |  |  |  |  |  |  |
Senior debt and 1 st lien notes | $ | 1,284,098 |  |  | 93 | % |  | $ | 1,260,183 |  |  | 95 | %
Subordinated debt and 2 nd lien notes | 21,728 |  |  | 2 |  |  | 21,262 |  |  | 2 |
Equity shares | 449 |  |  | — |  |  | 268 |  |  | — |
Equity warrants | — |  |  | — |  |  | 467 |  |  | — |
Investment in joint ventures | 54,563 |  |  | 4 |  |  | 33,450 |  |  | 2 |
Short-term investments | 14,896 |  |  | 1 |  |  | 14,896 |  |  | 1 |
| $ | 1,375,734 |  |  | 100 | % |  | $ | 1,330,526 |  |  | 100 | %
The industry composition of Jocassee’s investments at fair value at December 31, 2024 and December 31, 2023, excluding short-term investments, was as follows:
($ in thousands) | December 31, 2024 |  | December 31, 2023
Aerospace & Defense | $ | 61,069 |  |  | 5.6 | % |  | $ | 82,200 |  |  | 6.3 | %
Automotive | 11,236 |  |  | 1.0 |  |  | 26,087 |  |  | 2.0 |
Banking, Finance, Insurance, & Real Estate | 115,269 |  |  | 10.6 |  |  | 121,798 |  |  | 9.3 |
Beverage, Food, & Tobacco | 28,657 |  |  | 2.6 |  |  | 30,637 |  |  | 2.3 |
Capital Equipment | 13,376 |  |  | 1.2 |  |  | 17,986 |  |  | 1.4 |
Chemicals, Plastics, & Rubber | 30,248 |  |  | 2.8 |  |  | 37,030 |  |  | 2.8 |
Construction & Building | 21,805 |  |  | 2.0 |  |  | 16,942 |  |  | 1.3 |
Consumer goods: Durable | 26,531 |  |  | 2.5 |  |  | 26,412 |  |  | 2.0 |
Consumer goods: Non-durable | 21,629 |  |  | 2.0 |  |  | 21,850 |  |  | 1.7 |
Containers, Packaging, & Glass | 28,616 |  |  | 2.6 |  |  | 26,829 |  |  | 2.0 |
Energy: Electricity | 10,005 |  |  | 0.9 |  |  | 20,250 |  |  | 1.5 |
Energy: Oil & Gas | 11,209 |  |  | 1.0 |  |  | 6,724 |  |  | 0.5 |
Environmental Industries | 6,237 |  |  | 0.6 |  |  | 6,986 |  |  | 0.5 |
Forest Products & Paper | 1,156 |  |  | 0.1 |  |  | 3,605 |  |  | 0.3 |
Healthcare & Pharmaceuticals | 113,530 |  |  | 10.5 |  |  | 141,070 |  |  | 10.7 |
High Tech Industries | 87,247 |  |  | 8.0 |  |  | 174,572 |  |  | 13.3 |
Hotel, Gaming, & Leisure | 22,031 |  |  | 2.0 |  |  | 22,834 |  |  | 1.7 |
Investment Funds & Vehicles | 20,427 |  |  | 1.9 |  |  | 33,450 |  |  | 2.5 |
Media: Advertising, Printing, & Publishing | 10,420 |  |  | 1.0 |  |  | 12,081 |  |  | 0.9 |
Media: Broadcasting & Subscription | 17,297 |  |  | 1.6 |  |  | 31,201 |  |  | 2.4 |
Media: Diversified & Production | 41,913 |  |  | 3.9 |  |  | 41,182 |  |  | 3.1 |
Metals & Mining | 4,028 |  |  | 0.4 |  |  | 3,863 |  |  | 0.3 |
Retail | 12,361 |  |  | 1.1 |  |  | 13,141 |  |  | 1.0 |
Services: Business | 213,492 |  |  | 19.7 |  |  | 215,819 |  |  | 16.4 |
Services: Consumer | 58,080 |  |  | 5.4 |  |  | 58,632 |  |  | 4.5 |
Telecommunications | 36,205 |  |  | 3.3 |  |  | 36,027 |  |  | 2.7 |
Transportation: Cargo | 41,968 |  |  | 3.9 |  |  | 57,575 |  |  | 4.4 |
Transportation: Consumer | 8,529 |  |  | 0.8 |  |  | 12,613 |  |  | 1.0 |
Utilities: Electric | 10,454 |  |  | 1.0 |  |  | 9,396 |  |  | 0.7 |
Utilities: Oil & Gas | — |  |  | — |  |  | 6,838 |  |  | 0.5 |
Total | $ | 1,085,025 |  |  | 100.0 | % |  | $ | 1,315,630 |  |  | 100.0 | %
The geographic composition of Jocassee’s investments at fair value at December 31, 2024 and December 31, 2023, excluding short-term investments, was as follows:
| December 31, 2024 |  | December 31, 2023
Australia | $ | 23,187 |  |  | 2.1 | % |  | $ | 26,291 |  |  | 2.0 | %
Austria | 5,695 |  |  | 0.5 | % |  | 6,026 |  |  | 0.5 |
Belgium | 20,741 |  |  | 1.9 |  |  | 20,379 |  |  | 1.5 |
Canada | 590 |  |  | 0.1 |  |  | 3,998 |  |  | 0.3 |
Denmark | — |  |  | — |  |  | 1,082 |  |  | 0.1 |
Finland | — |  |  | — |  |  | 2,207 |  |  | 0.2 |
France | 124,810 |  |  | 11.5 |  |  | 137,072 |  |  | 10.4 |
Germany | 35,691 |  |  | 3.3 |  |  | 50,672 |  |  | 3.9 |
Hong Kong | 14,843 |  |  | 1.4 |  |  | 14,162 |  |  | 1.1 |
Ireland | 7,302 |  |  | 0.7 |  |  | 7,445 |  |  | 0.6 |
Luxembourg | 2,128 |  |  | 0.2 |  |  | 1,839 |  |  | 0.1 |
Netherlands | 39,504 |  |  | 3.6 |  |  | 41,260 |  |  | 3.1 |
Panama | 1,470 |  |  | 0.1 |  |  | 1,466 |  |  | 0.1 |
Singapore | 5,000 |  |  | 0.5 |  |  | 4,980 |  |  | 0.4 |
Spain | 2,078 |  |  | 0.2 |  |  | 4,777 |  |  | 0.4 |
Sweden | 3,523 |  |  | 0.3 |  |  | 4,519 |  |  | 0.3 |
Switzerland | 595 |  |  | 0.1 |  |  | 592 |  |  | — |
United Kingdom | 111,097 |  |  | 10.2 |  |  | 120,398 |  |  | 9.2 |
USA | 686,771 |  |  | 63.3 |  |  | 866,465 |  |  | 65.8 |
Total | $ | 1,085,025 |  |  | 100.0 | % |  | $ | 1,315,630 |  |  | 100.0 | %
Jocassee’s subscription facility with Bank of America N.A., which is non-recourse to the Company, had approximately $173.5 million and $177.7 million outstanding as of December 31, 2024 and December 31, 2023, respectively. Jocassee’s credit facility with Citibank, N.A., which is non-recourse to the Company, had approximately $266.7 million and $398.2 million outstanding as of December 31, 2024 and December 31, 2023, respectively. Jocassee’s term debt securitization, which is non-recourse to the Company, had approximately $323.7 million and $323.5 million outstanding as of December 31, 2024 and December 31, 2023, respectively. The Company may sell portions of its investments via assignment to Jocassee. Since inception, as of December 31, 2024, and December 31, 2023, the Company had sold $1,063.3 million and $1,036.1 million, respectively, of its investments to Jocassee. For the years ended December 31, 2024 and December 31, 2023, the Company realized a gain on the sales of its investments to Jocassee of $0.4 million and $0.1 million, respectively. As of both December 31, 2024 and December 31, 2023, the Company had nil in unsettled receivables due from Jocassee that were included in “Receivable from unsettled transactions” in the accompanying Consolidated Balance Sheets. The sale of the investments met the criteria set forth in ASC 860, Transfers and Servicing for treatment as a sale and satisfies the following conditions: •assigned investments have been isolated from the Company, and put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership; •each participant has the right to pledge or exchange the assigned investments it received, and no condition both constrains the participant from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the Company; and •the Company, its consolidated affiliates or its agents do not maintain effective control over the assigned investments through either: (i) an agreement that entitles and/or obligates the Company to repurchase or redeem the assets before maturity, or (ii) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. The Company has determined that Jocassee is an investment company under ASC Topic 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Jocassee as it is not a substantially wholly owned investment company subsidiary. In addition, Jocassee is not an operating company and the Company does not control Jocassee due to the allocation of voting rights among Jocassee members. As of December 31, 2024 and December 31, 2023, Jocassee had the following contributed capital and unfunded commitments from its members:
($ in thousands) |  | As of December 31, 2024 |  | As of December 31, 2023
Total contributed capital by Barings BDC, Inc. |  | $ | 35,000 |  |  | $ | 35,000 |
Total contributed capital by all members |  | 385,000 |  |  | 385,000 |
Total unfunded commitments by Barings BDC, Inc. |  | 65,000 |  |  | 65,000 |
Total unfunded commitments by all members |  | 215,000 |  |  | 215,000 |
Thompson Rivers LLC On April 28, 2020, Thompson Rivers LLC (“Thompson Rivers”) was formed as a Delaware limited liability company. On May 13, 2020, the Company entered into a limited liability company agreement governing Thompson Rivers. Under Thompson Rivers’ current operating agreement, as amended to date, the Company has a capital commitment of $75.0 million of equity capital to Thompson Rivers, all of which has been funded as of December 31, 2024. As of December 31, 2024, aggregate commitments to Thompson Rivers by the Company and the other members under the current operating agreement total $450.0 million, all of which has been funded. For the years ended December 31, 2024 and 2023, Thompson Rivers declared $37.5 million and $111.0 million in dividends, respectively, of which nil was recognized as dividend income in the Company’s Consolidated Statements of Operations. In addition, for the years ended December 31, 2024 and 2023, the Company recognized $6.0 million and $17.7 million of the dividends, respectively, as a return of capital. As of December 31, 2024, Thompson Rivers had $193.4 million in Ginnie Mae early buyout loans and $7.1 million in cash. As of December 31, 2023, Thompson Rivers had $366.7 million in Ginnie Mae early buyout loans and $7.1 million in cash. As of December 31, 2024, Thompson Rivers had 1,243 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.0%. As of December 31, 2023, Thompson Rivers had 2,305 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.0%. As of December 31, 2024 and December 31, 2023, the Thompson Rivers investment portfolio consisted of the following investments:
($ in thousands) | Cost |  | Percentage of Total Portfolio |  | Fair Value |  | Percentage of Total Portfolio
December 31, 2024: |  |  |  |  |  |  |
Federal Housing Administration (“FHA”) loans | $ | 193,265 |  |  | 93 | % |  | $ | 179,963 |  |  | 93 | %
Veterans Affairs (“VA”) loans | 14,305 |  |  | 7 | % |  | 13,388 |  |  | 7 | %
| $ | 207,570 |  |  | 100 | % |  | $ | 193,351 |  |  | 100 | %
December 31, 2023: |  |  |  |  |  |  |
Federal Housing Administration (“FHA”) loans | $ | 360,847 |  |  | 93 | % |  | $ | 342,240 |  |  | 93 | %
Veterans Affairs (“VA”) loans | 25,810 |  |  | 7 |  |  | 24,491 |  |  | 7 |
| $ | 386,657 |  |  | 100 | % |  | $ | 366,731 |  |  | 100 | %
Thompson Rivers’ repurchase agreement with JPMorgan Chase Bank, which is non-recourse to the Company, had approximately $43.5 million and $83.5 million outstanding as of December 31, 2024 and December 31, 2023, respectively. Thompson Rivers’ repurchase agreement with Bank of America N.A., which is non-recourse to the Company, had approximately $90.3 million and $170.8 million outstanding as of December 31, 2024 and December 31, 2023, respectively. Thompson Rivers’ repurchase agreement with Barclays Bank, which is non-recourse to the Company, had approximately $28.7 million and $50.0 million outstanding as of December 31, 2024 and December 31, 2023, respectively. The Company has determined that Thompson Rivers is an investment company under ASC Topic 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Thompson Rivers as it is not a substantially wholly owned investment company subsidiary. In addition, Thompson Rivers is not an operating company and the Company does not control Thompson Rivers due to the allocation of voting rights among Thompson Rivers members. As of December 31, 2024 and December 31, 2023, Thompson Rivers had the following contributed capital and unfunded commitments from its members:
($ in thousands) |  | As of December 31, 2024 |  | As of December 31, 2023
Total contributed capital by Barings BDC, Inc. (1) |  | $ | 79,411 |  |  | $ | 79,411 |
Total contributed capital by all members (2) |  | 482,083 |  |  | 482,083 |
Total unfunded commitments by Barings BDC, Inc. |  | — |  |  | — |
Total unfunded commitments by all members |  | — |  |  | — |
(1)Includes $4.4 million of dividend re-investments. (2)Includes dividend re-investments of $32.1 million and total contributed capital by related parties of $162.1 million as of both December 31, 2024 and December 31, 2023. Waccamaw River LLC On January 4, 2021, Waccamaw River LLC (“Waccamaw River”) was formed as a Delaware limited liability company. On February 8, 2021, the Company entered into a limited liability company agreement governing Waccamaw River. Under Waccamaw River’s current operating agreement, as amended to date, the Company has a capital commitment of $25.0 million of equity capital to Waccamaw River, all of which has been funded as of December 31, 2024. As of December 31, 2024, aggregate commitments to Waccamaw River by the Company and the other members under the current operating agreement total $125.0 million, all of which has been funded. For the years ended December 31, 2024 and 2023, Waccamaw River declared $28.1 million and $7.3 million in dividends, respectively, of which $3.5 million and $1.5 million, respectively, was recognized as dividend income in the Company’s Consolidated Statements of Operations. In addition, for the years ended December 31, 2024 and 2023, the Company recognized $2.1 million and nil of the dividends, respectively, as a return of capital. As of December 31, 2024, Waccamaw River had $45.5 million in unsecured consumer loans and $4.3 million in cash. As of December 31, 2023, Waccamaw River had $182.3 million in unsecured consumer loans and $6.6 million in cash. As of December 31, 2024, Waccamaw River had 8,095 outstanding loans with an average loan size of $7,791, remaining average life to maturity of 35.5 months and weighted average interest rate of 12.0%. As of December 31, 2023, Waccamaw River had 21,435 outstanding loans with an average loan size of $10,338, remaining average life to maturity of 40.0 months and weighted average interest rate of 12.7%. Waccamaw River’s secured loan borrowing with JPMorgan Chase Bank, N.A., which is non-recourse to the Company, had approximately $71.0 million outstanding as of December 31, 2023. On April 15, 2024, Waccamaw River’s secured borrowing with JPMorgan Chase Bank, N.A. was terminated and fully repaid. Waccamaw River’s secured loan borrowing with Barclays Bank PLC, which is non-recourse to the Company, had approximately $51.3 million outstanding as of December 31, 2023. On September 26, 2024, Waccamaw River’s secured borrowing with Barclays Bank PLC was terminated and fully repaid. The Company has determined that Waccamaw River is an investment company under ASC Topic 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Waccamaw River as it is not a substantially wholly owned investment company subsidiary. In addition, Waccamaw River is not an operating company and the Company does not control Waccamaw River due to the allocation of voting rights among Waccamaw River members. As of December 31, 2024 and December 31, 2023, Waccamaw River had the following contributed capital and unfunded commitments from its members:
($ in thousands) |  | As of December 31, 2024 |  | As of December 31, 2023
Total contributed capital by Barings BDC, Inc. |  | $ | 30,280 |  |  | $ | 30,280 |
Total contributed capital by all members (1) |  | 139,020 |  |  | 139,020 |
Total unfunded commitments by Barings BDC, Inc. |  | — |  |  | — |
Total unfunded commitments by all members |  | — |  |  | — |
(1)Includes $82.0 million of total contributed capital by related parties as of both December 31, 2024 and December 31, 2023. Sierra Senior Loan Strategy JV I LLC On February 25, 2022, as part of the Sierra Merger, the Company purchased its interest in Sierra Senior Loan Strategy JV I LLC (“Sierra JV”). The Company and MassMutual Ascend Life Insurance Company (“MMALIC”), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company, are the members of Sierra JV, a joint venture formed as a Delaware limited liability company and commenced operations on July 15, 2015. Sierra JV’s investment objective is to generate current income and capital appreciation by investing primarily in the debt of privately-held middle market companies with a focus on senior secured first lien term loans. The members of Sierra JV make capital contributions as investments by Sierra JV are completed, and all portfolio and other material decisions regarding Sierra JV must be submitted to Sierra JV’s board of managers, which is comprised of four members, two of whom are selected by the Company and the other two are selected by MMALIC. Approval of Sierra JV’s board of managers requires the unanimous approval of a quorum of the board of managers, with a quorum consisting of equal representation of members appointed by each of the Company and MMALIC. As of December 31, 2024, Sierra JV had total capital commitments of $124.5 million with the Company committing $110.1 million and MMALIC committing $14.5 million. The Company had fully funded its $110.1 million commitment and total commitments of $124.5 million were fully funded as of December 31, 2024. For the years ended December 31, 2024 and 2023, Sierra JV declared $2.5 million and $8.4 million in dividends, respectively, of which $2.2 million and $5.7 million, respectively, was recognized as dividend income in the Company’s Consolidated Statements of Operations. In addition, for the years ended December 31, 2024 and December 31, 2023, the Company recognized nil and $1.8 million, respectively, of the dividends as a return of capital. The Company has determined that Sierra JV is an investment company under ASC Topic 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Sierra JV as it is not a substantially wholly owned investment company subsidiary. In addition, Sierra JV is not an operating company and the Company does not control Sierra JV due to the allocation of voting rights among Sierra JV members. The total value of Sierra JV’s investment portfolio was $33.4 million as of December 31, 2024, as compared to $79.6 million, as of December 31, 2023. As of December 31, 2024, Sierra JV’s investments had an aggregate cost of $36.1 million, as compared to $85.3 million as of December 31, 2023. As of December 31, 2024 and December 31, 2023, the weighted average yield on the principal amount of Sierra JV’s outstanding debt investments was approximately 9.4% and 10.1%, respectively. As of December 31, 2024 and December 31, 2023, the Sierra JV investment portfolio consisted of the following investments:
($ in thousands) | Cost |  | Percentage of Total Portfolio |  | Fair Value |  | Percentage of Total Portfolio
December 31, 2024: |  |  |  |  |  |  |
Senior debt and 1 st lien notes | $ | 36,083 |  |  | 100 | % |  | $ | 33,389 |  |  | 100 | %
Equity shares | — |  |  | — |  |  | 33 |  |  | — |
| $ | 36,083 |  |  | 100 | % |  | $ | 33,422 |  |  | 100 | %
December 31, 2023: |  |  |  |  |  |  |
Senior debt and 1 st lien notes | $ | 85,304 |  |  | 100 | % |  | $ | 79,599 |  |  | 100 | %
| $ | 85,304 |  |  | 100 | % |  | $ | 79,599 |  |  | 100 | %
The industry composition of Sierra JV’s investments at fair value at December 31, 2024 and December 31, 2023 was as follows:
($ in thousands) | December 31, 2024 |  | December 31, 2023
Automotive | $ | 2,746 |  |  | 8.2 | % |  | $ | 2,463 |  |  | 3.1 | %
Banking, Finance, Insurance, & Real Estate | 33 |  |  | 0.1 |  |  | 254 |  |  | 0.3 |
Beverage, Food, & Tobacco | 3,578 |  |  | 10.7 |  |  | 3,172 |  |  | 4.0 |
Capital Equipment | — |  |  | — |  |  | 5,271 |  |  | 6.6 |
Chemicals, Plastics, & Rubber | 2,954 |  |  | 8.9 |  |  | 2,942 |  |  | 3.7 |
Construction & Building | — |  |  | — |  |  | 1,867 |  |  | 2.4 |
Consumer goods: Durable | 232 |  |  | 0.7 |  |  | 1,042 |  |  | 1.3 |
Environmental Industries | — |  |  | — |  |  | 3,487 |  |  | 4.4 |
Healthcare & Pharmaceuticals | 3,821 |  |  | 11.4 |  |  | 12,880 |  |  | 16.2 |
High Tech Industries | 9,363 |  |  | 28.0 |  |  | 14,661 |  |  | 18.4 |
Retail | — |  |  | — |  |  | 6,255 |  |  | 7.9 |
Services: Business | 4,411 |  |  | 13.2 |  |  | 6,798 |  |  | 8.5 |
Services: Consumer | — |  |  | — |  |  | 8,525 |  |  | 10.7 |
Transportation: Cargo | 6,284 |  |  | 18.8 |  |  | 6,296 |  |  | 7.9 |
Transportation: Consumer | — |  |  | — |  |  | 3,686 |  |  | 4.6 |
Total | $ | 33,422 |  |  | 100.0 | % |  | $ | 79,599 |  |  | 100.0 | %
Sierra JV’s revolving credit facility with Wells Fargo Bank, N.A., which was non-recourse to the Company, had $45.0 million outstanding as of December 31, 2023. On June 27, 2024, Sierra JV’s revolving credit facility with Wells Fargo Bank, N.A. was terminated and fully repaid. Eclipse Business Capital Holdings LLC On July 8, 2021, the Company made an equity investment in Eclipse Business Capital Holdings LLC (“Eclipse”) of $89.8 million, a second lien senior secured loan of $4.5 million and unfunded revolver of $13.6 million, alongside other related party affiliates. On August 12, 2022, the Company increased the unfunded revolver to $22.7 million. As of December 31, 2024 and December 31, 2023, $10.1 million and $5.5 million, respectively, of the revolver was funded. Eclipse conducts its business through Eclipse Business Capital LLC. Eclipse is one of the country’s leading independent asset-based lending (“ABL”) platforms that provides financing to middle-market borrowers in the U.S. and Canada. Eclipse provides revolving lines of credit and term loans ranging in size from $10 – $125 million that are secured by collateral such as accounts receivable, inventory, equipment, or real estate. Eclipse lends to both privately-owned and publicly-traded companies across a range of industries, including manufacturing, retail, automotive, oil & gas, services, distribution, and consumer products. The addition of Eclipse to the portfolio allows the Company to participate in an asset class and commercial finance operations that offer differentiated income returns as compared to directly originated loans. Eclipse is led by a seasoned team of ABL experts. The Company has determined that Eclipse is not an investment company under ASC Topic 946. Under ASC Topic 810, Consolidation, Subtopic 10, Consolidation — Overall, Section 15, Scope and Scope Exceptions, paragraph 12, subparagraph d (“ASC 810-10-15-12(d)”), an investment company generally does not consolidate an investee that is not an investment company other than a controlled operating company whose business consists of providing services to the company. Thus, the Company is not required to consolidate Eclipse because it does not provide services to the Company. Instead the Company accounts for its equity investment in Eclipse in accordance with ASC 946-320, presented as a single investment measured at fair value. Rocade Holdings LLC On February 1, 2023, the Company made an equity investment in Rocade Holdings LLC (“Rocade”) of $45.0 million, alongside other related party affiliates and made additional investments thereafter during the fiscal years ended December 31, 2023 and December 31, 2024 of $22.5 million and $3.5 million, respectively. The total equity invested in Rocade as of December 31, 2024 was $71.0 million (excluding preferred dividends) and the Company had $14.0 million of unfunded preferred equity commitments. Rocade conducts its business through Rocade LLC and operates as Rocade Capital. Rocade is one of the country’s leading litigation finance platforms that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation. Rocade typically provides loans to law firms that are secured by the borrowing firm’s interests in award settlements, including contingency fees expected to be earned from successful litigation. The loans generally bear floating rate PIK interest with an overall expected annualized return between 10% and 25% and collect debt service upon receipt of settlement awards and/or contingency fees. The addition of Rocade to the portfolio allows the Company to participate in an uncorrelated asset class that offer differentiated income returns as compared to directly originated loans. Rocade is led by a seasoned team of litigation finance experts. The Company has determined that Rocade is not an investment company under ASC Topic 946. Under ASC 810-10-15-12(d), an investment company generally does not consolidate an investee that is not an investment company other than a controlled operating company whose business consists of providing services to the company. Thus, the Company is not required to consolidate Rocade because it does not provide services to the Company. Instead the Company accounts for its equity investment in Rocade in accordance with ASC 946-320, presented as a single investment measured at fair value.

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