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Investments (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Investments [Abstract]

Schedule of Composition of Investment Portfolio at Cost And Fair Value

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 1st lien notes						$	1,747,841					69		%				$	1,686,411					69		%				142		%
Subordinated debt and 2nd 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 1st lien notes						$	1,705,353					67		%				$	1,670,300					67		%				140		%
Subordinated debt and 2nd 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		%

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 1st lien notes			$	1,092,038					94		%				$	1,052,366					96		%
Subordinated debt and 2nd 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 1st lien notes			$	1,284,098					93		%				$	1,260,183					95		%
Subordinated debt and 2nd 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		%

Schedule of Fair Value, Assets Measured on Recurring Basis

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 1st lien notes			$	—					$	76,503					$	1,593,797					$	1,670,300
Subordinated debt and 2nd 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.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

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 1st Lien Notes						Subordinated Debt and 2nd 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 1st Lien Notes						Subordinated Debt and 2nd 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

Schedule of Investment Portfolio

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		%

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

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		%

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.

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.

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 1st lien notes			$	36,083					100		%				$	33,389					100		%
Equity shares			—						—						33						—
			$	36,083					100		%				$	33,422					100		%
December 31, 2023:
Senior debt and 1st 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		%

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