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DERIVATIVE INSTRUMENTS
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
MVC Credit Support Agreement
In connection with the MVC Acquisition on December 23, 2020, promptly following the closing of the Company’s merger with MVC, the Company and the Adviser entered into the MVC Credit Support Agreement, pursuant to which the Adviser agreed to provide credit support to the Company in the amount of up to $23.0 million relating to the net cumulative realized and unrealized losses on the acquired MVC investment portfolio over a 10-year period. On May 8, 2025, the Company entered into the Termination Agreement with Barings to terminate all rights and obligations under the MVC Credit Support Agreement. See “Note 2. Agreements and Related Party Transactions” for additional information regarding the MVC Credit Support Agreement. Net unrealized appreciation or depreciation on the MVC Credit Support Agreement is included in “Net unrealized appreciation (depreciation) - credit support agreements” and net realized gains or losses on the MVC Credit Support
Agreement is included in “Net realized gains (losses) - credit support agreements” in the Company’s Unaudited Consolidated Statements of Operations.
The following table presents the fair value and aggregate unrealized appreciation (depreciation) of the MVC Credit Support Agreement as of December 31, 2024:
As of December 31, 2024
Description
($ in thousands)
CounterpartySettlement DateNotional AmountValueUnrealized Appreciation (Depreciation)
MVC Credit Support AgreementBarings LLC01/01/31$23,000 $19,250 $5,650 
Total MVC Credit Support Agreement$5,650 
As of December 31, 2024, the fair value of the MVC Credit Support Agreement was $19.3 million and is included in “Credit support agreements” in the accompanying Audited Consolidated Balance Sheets. As of December 31, 2024, the fair value of the MVC Credit Support Agreement was determined based on an income approach, with the primary inputs being the discount rate and the expected time until an exit event for each portfolio company in the MVC Reference Portfolio, which are all Level 3 inputs.
The following tables summarize the significant unobservable inputs the Adviser used in the valuation of the Company’s Level 3 MVC Credit Support Agreement as of December 31, 2024. The average range of unobservable inputs is based on fair value of the MVC Credit Support Agreement.
December 31, 2024:
($ in thousands)
Fair ValueValuation
Model		Level 3
Input		Range of
Inputs		 
Average		Impact to Valuation from an Increase in Input
MVC Credit Support Agreement$19,250 Income ApproachDiscount Rate
5.4% - 6.4%
5.9%Decrease
Time Until Exit
(years)
1.5 - 4.5
3.0Decrease
Sierra Credit Support Agreement
In connection with the Sierra Merger on February 25, 2022, promptly following the closing of the Company’s merger with Sierra, the Company and the Adviser entered into the Sierra Credit Support Agreement, pursuant to which the Adviser has agreed to provide credit support to the Company in the amount of up to $100.0 million relating to the net cumulative realized and unrealized losses on the acquired Sierra investment portfolio over a 10-year period. See “Note 2. Agreements and Related Party Transactions” for additional information regarding the Sierra Credit Support Agreement. Net unrealized appreciation or depreciation on the Sierra Credit Support Agreement is included in “Net unrealized appreciation (depreciation) - credit support agreements” in the Company’s Unaudited Consolidated Statements of Operations.
The following tables present the fair value and aggregate unrealized appreciation (depreciation) of the Sierra Credit Support Agreement as of September 30, 2025 and December 31, 2024:
As of September 30, 2025
Description
($ in thousands)
CounterpartySettlement DateNotional AmountValueUnrealized Appreciation (Depreciation)
Sierra Credit Support AgreementBarings LLC04/01/32$100,000 $52,800 $8,400 
Total Sierra Credit Support Agreement$8,400 
As of December 31, 2024
Description
($ in thousands)
CounterpartySettlement DateNotional AmountValueUnrealized Appreciation (Depreciation)
Sierra Credit Support AgreementBarings LLC04/01/32$100,000 $44,200 $(200)
Total Sierra Credit Support Agreement$(200)
As of September 30, 2025 and December 31, 2024, the fair value of the Sierra Credit Support Agreement was $52.8 million and $44.2 million, respectively, and is included in “Credit support agreements” in the accompanying Unaudited and Audited Consolidated Balance Sheets. The fair value of the Sierra Credit Support Agreement was determined based on a simulation analysis, with the primary inputs being the enterprise value, a measure of expected asset volatility, the expected time
until an exit event for each portfolio company in the Sierra Reference Portfolio, the Discount Rate and the Recovery Rate, which are all Level 3 inputs.
The following tables summarize the significant unobservable inputs the Adviser used in the valuation of the Company’s Level 3 Sierra Credit Support Agreement as of September 30, 2025 and December 31, 2024. The average range of unobservable inputs is based on fair value of the Sierra Credit Support Agreement.
September 30, 2025:
($ in thousands)
Fair ValueValuation
Model		Level 3
Input		Range of
Inputs		 
Average		Impact to Valuation from an Increase in Input
Sierra Credit Support Agreement$52,800 Simulation AnalysisEnterprise Value
$0 - $399,400
$199,700Decrease
Asset Volatility
20.0% - 50.0%
35.0%Increase
Time Until Exit (years)
0.0 - 5.8
2.9Decrease
Discount Rate5.7%5.7%Decrease
Recovery Rate
5.0% - 80.0%
42.5%Decrease
December 31, 2024:
($ in thousands)
Fair ValueValuation
Model		Level 3
Input		Range of
Inputs		 
Average		Impact to Valuation from an Increase in Input
Sierra Credit Support Agreement$44,200 Simulation AnalysisEnterprise Value
$15 - $393,900
$196,958Decrease
Asset Volatility
25.0% - 55.0%
40.0%Increase
Time Until Exit (years)
0.0 - 6.6
3.3Decrease
Discount Rate6.3%6.3%Decrease
Recovery Rate
5.0% - 70.0%
37.5%Decrease
Foreign Currency Forward Contracts
The Company enters into forward currency contracts from time to time to primarily help mitigate the impact that an adverse change in foreign exchange rates would have on net interest income from the Company’s investments and related borrowings denominated in foreign currencies. Forward currency contracts are considered undesignated derivative instruments.
The following tables present the Company’s foreign currency forward contracts as of September 30, 2025 and December 31, 2024:
As of September 30, 2025
Description
($ in thousands)
Notional Amount to be PurchasedNotional Amount to be SoldMaturity DateGross Amount of Recognized Assets (Liabilities)Balance Sheet Location of Net Amounts
Foreign currency forward contract (AUD)$36,765A$55,07512/30/25$227 Derivative assets
Foreign currency forward contract (CAD)$1,928C$2,64812/30/2517 Derivative assets
Foreign currency forward contract (DKK)$5163,252kr.12/30/251 Derivative assets
Foreign currency forward contract (EUR)$18,481€15,62012/30/2535 Derivative assets
Foreign currency forward contract (EUR)$786€66612/30/25— Derivative liabilities
Foreign currency forward contract (NZD)$9,123NZ$15,23712/30/25245 Derivative assets
Foreign currency forward contract (NOK)$4,94448,635kr12/30/2568 Derivative assets
Foreign currency forward contract (GBP)$77,999£57,35512/30/25781 Derivative assets
Foreign currency forward contract (SEK)$1,97418,207kr12/30/2527 Derivative assets
Foreign currency forward contract (CHF)$5,5724,375Fr.12/30/2516 Derivative assets
Total$1,417 
As of December 31, 2024
Description
($ in thousands)
Notional Amount to be PurchasedNotional Amount to be SoldMaturity DateGross Amount of Recognized Assets (Liabilities)Balance Sheet Location of Net Amounts
Foreign currency forward contract (AUD)A$7,000$4,51901/08/25$(185)Derivative liabilities
Foreign currency forward contract (AUD)A$64,484$41,09001/08/25(1,164)Derivative liabilities
Foreign currency forward contract (AUD)A$8,000$5,01004/07/25(56)Derivative liabilities
Foreign currency forward contract (AUD)$954A$1,47801/08/2539 Derivative assets
Foreign currency forward contract (AUD)$965A$1,41101/08/2592 Derivative assets
Foreign currency forward contract (AUD)$46,948A$68,59601/08/254,477 Derivative assets
Foreign currency forward contract (AUD)$41,247A$64,72404/07/251,167 Derivative assets
Foreign currency forward contract (CAD)C$8,709$6,16101/08/25(105)Derivative liabilities
Foreign currency forward contract (CAD)C$7,000$4,89604/07/25(11)Derivative liabilities
Foreign currency forward contract (CAD)$6,461C$8,70901/08/25404 Derivative assets
Foreign currency forward contract (CAD)$72C$10304/07/25— Derivative liabilities
Foreign currency forward contract (CAD)$6,326C$8,91304/07/25107 Derivative assets
Foreign currency forward contract (DKK)2,570kr.$36201/08/25(5)Derivative liabilities
Foreign currency forward contract (DKK)$3852,570kr.01/08/2528 Derivative assets
Foreign currency forward contract (DKK)$3702,615kr.04/07/255 Derivative assets
Foreign currency forward contract (EUR)€4,658$4,92101/08/25(96)Derivative liabilities
Foreign currency forward contract (EUR)€95,436$100,29901/08/25(1,455)Derivative liabilities
Foreign currency forward contract (EUR)$111,003€99,49401/08/257,955 Derivative assets
Foreign currency forward contract (EUR)$671€60001/08/2550 Derivative assets
Foreign currency forward contract (EUR)$100,856€95,57004/07/251,467 Derivative assets
Foreign currency forward contract (NZD)NZ$15,538$9,00301/08/25(297)Derivative liabilities
Foreign currency forward contract (NZD)$198NZ$31201/08/2523 Derivative assets
Foreign currency forward contract (NZD)$9,538NZ$15,22601/08/251,007 Derivative assets
Foreign currency forward contract (NZD)$9,187NZ$15,84004/07/25302 Derivative assets
Foreign currency forward contract (NOK)45,770kr$4,10401/08/25(75)Derivative liabilities
Foreign currency forward contract (NOK)$83921kr01/08/252 Derivative assets
Foreign currency forward contract (NOK)$4,27344,849kr01/08/25325 Derivative assets
Foreign currency forward contract (NOK)$4,13246,087kr04/07/2575 Derivative assets
Foreign currency forward contract (GBP)£5,800$7,27201/08/25(8)Derivative liabilities
Foreign currency forward contract (GBP)£59,563$75,94901/08/25(1,356)Derivative liabilities
Foreign currency forward contract (GBP)$1,789£1,38201/08/2559 Derivative assets
Foreign currency forward contract (GBP)$85,174£63,98101/08/255,047 Derivative assets
Foreign currency forward contract (GBP)$75,962£59,60704/07/251,363 Derivative assets
Foreign currency forward contract (SEK)16,492kr$1,50501/08/25(12)Derivative liabilities
Foreign currency forward contract (SEK)$34339kr01/08/253 Derivative assets
Foreign currency forward contract (SEK)$1,59316,153kr01/08/25130 Derivative assets
Foreign currency forward contract (SEK)$1,54116,805kr04/07/2512 Derivative assets
Foreign currency forward contract (CHF)5,622Fr.$6,37801/08/25(173)Derivative liabilities
Foreign currency forward contract (CHF)$6,7065,622Fr.01/08/25502 Derivative assets
Foreign currency forward contract (CHF)$6,5115,685Fr.04/07/25175 Derivative assets
Total$19,818 
As of September 30, 2025 and December 31, 2024, the total fair value of the Company’s foreign currency forward contracts was $1.4 million and $19.8 million, respectively. The fair values of the Company’s foreign currency forward contracts are based on unadjusted prices from independent pricing services and independent indicative broker quotes, which are Level 2 inputs.