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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements of Investments by Major Class According to Fair Value Hierarchy

The following tables present fair value measurements of investments by major class according to the fair value hierarchy:

		September 30, 2022
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		488,334		$		488,334
Second Lien Debt			—				—				177,222				177,222
Subordinated Debt			—				—				81,759				81,759
Equity			317				—				106,634				106,951
Warrants			—				—				2,648				2,648
Money Market Funds			30,184				—				-				30,184
Total	$		30,501		$		—		$		856,597		$		887,098

		December 31, 2021
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		354,922		$		354,922
Second Lien Debt			—				—				158,815				158,815
Subordinated Debt			—				—				36,064				36,064
Equity			357				—				165,762				166,119
Warrants			—				—				3,204				3,204
Total	$		357		$		—		$		718,767		$		719,124

Summary of Reconciliation of Beginning and Ending Balances for Fair Valued Investments

The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) for the nine months ended September 30, 2022 and 2021:

		First Lien				Second Lien				Subordinated
		Debt				Debt				Debt				Equity				Warrants				Total
Balance, December 31, 2020		$	187,353			$	332,154			$	107,911			$	112,836			$	2,615			$	742,869
Net realized gains (losses) on investments			—				—				—				13,673				—				13,673
Net change in unrealized appreciation (depreciation) on investments			(1,182	)			(1,213	)			(308	)			34,066				656				32,019
Purchase of investments			172,506				43,850				18,500				10,688				—				245,544
Proceeds from sales and repayments of investments			(61,008	)			(177,719	)			(57,039	)			(23,270	)			—				(319,036	)
Interest and dividend income paid-in-kind			109				3,142				81				105				—				3,437
Proceeds from loan origination fees			(1,765	)			(104	)			(80	)			—				—				(1,949	)
Accretion of loan origination fees			985				461				387				—				—				1,833
Accretion of original issue discount			—				734				—				—				—				734
Balance, September 30, 2021		$	296,998			$	201,305			$	69,452			$	148,098			$	3,271			$	719,124
Balance, December 31, 2021		$	354,922			$	158,815			$	36,064			$	165,762			$	3,204			$	718,767
Net realized gains (losses) on investments			—				—				—				65,220				—				65,220
Net change in unrealized appreciation (depreciation) on investments			(1,281	)			(13,048	)			1,213				(54,102	)			(556	)			(67,774	)
Purchase of investments			166,279				49,498				44,469				7,704				—				267,950
Proceeds from sales and repayments of investments			(31,574	)			(18,731	)			—				(77,950	)			—				(128,255	)
Interest and dividend income paid-in-kind			481				573				273				—				—				1,327
Proceeds from loan origination fees			(1,454	)			(115	)			(300	)			—				—				(1,869	)
Accretion of loan origination fees			943				111				40				—				—				1,094
Accretion of original issue discount			18				119				—				—				—				137
Balance, September 30, 2022		$	488,334			$	177,222			$	81,759			$	106,634			$	2,648			$	856,597

Summary of Significant Unobservable Inputs by Valuation Technique to Determine Fair Value

The following tables summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Company’s Level 3 debt and equity investments as of September 30, 2022 and December 31, 2021. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.

		Fair Value at				Valuation		Unobservable		Range
		September 30, 2022				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	449,319			Discounted cash flow		Weighted average cost of capital		6.3% - 19.9% (13.7%)
			11,000			Enterprise value		Asset Coverage		1.1x - 1.1x (1.1x)
			15,000			Enterprise value		EBITDA multiples		8.8x - 8.8x (8.8x)
			13,015			Enterprise value		Revenue multiples		1.3x - 4.1x (2.5x)
Second Lien Debt			172,625			Discounted cash flow (2)		Weighted average cost of capital		10.2% - 22.0% (13.7%)
			2,428			Enterprise value		EBITDA multiples		5.0x - 5.0x (5.0x)
			2,169			Enterprise value		Asset Coverage		0.9x - 0.9x (0.9x)
Subordinated Debt			78,009			Discounted cash flow		Weighted average cost of capital		10.1% - 14.0% (11.1%)
			3,750			Enterprise value		EBITDA multiples		8.5x - 8.5x (8.5x)
Equity investments:
Equity			96,905			Enterprise value		EBITDA multiples		3.5x - 16.0x (7.2x)
			9,729			Enterprise value		Revenue multiples		3.0x - 7.8x (6.4x)
Warrants			2,525			Enterprise value		EBITDA multiples		5.0x - 6.0x (5.8x)
			123			Enterprise value		Revenue multiples		4.5x - 4.5x (4.5x)
(1) Unobservable inputs were weighted by the relative fair value of the instruments.
(2) Includes $18.0 million of debt investments which were valued using a trading discount to par.

		Fair Value at				Valuation		Unobservable		Range
		December 31, 2021				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	335,022			Discounted cash flow		Weighted average cost of capital		4.0% - 21.6% (12.2%)
			11,000			Enterprise value		Asset Coverage		1.2x - 1.2x (1.2x)
			8,900			Enterprise value		Revenue multiples		4.5x - 4.5x (4.5x)
Second Lien Debt			144,541			Discounted cash flow		Weighted average cost of capital		7.8% - 25.0% (14.4%)
			14,274			Enterprise value		Asset Coverage		1.0x - 1.4x (1.4x)
Subordinated Debt			36,064			Discounted cash flow		Weighted average cost of capital		10.0% - 13.5% (11.1%)
Equity investments:
Equity			162,681			Enterprise value		EBITDA multiples		3.5x - 23.8x (8.2x)
			3,081			Enterprise value		Revenue multiples		3.5x - 9.3x (6.2x)
Warrants			3,075			Enterprise value		EBITDA multiples		4.5x - 6.0x (5.9x)
			129			Enterprise value		Revenue multiples		4.5x - 4.5x (4.5x)

(1) Unobservable inputs were weighted by the relative fair value of the instruments.

Summary of Carrying Value and Fair Value of Debt Obligations

The following tables summarize the carrying value and fair value of the Company’s debt obligations as of September 30, 2022 and December 31, 2021.

		September 30, 2022(5)								December 31, 2021(5)
		Carrying Value (1)				Fair Value				Carrying Value (1)				Fair Value
SBA debentures (2)		$	133,000			$	133,000			$	107,000			$	107,000
Credit Facility borrowings (3)			—				—				—				—
January 2026 Notes (4)			125,000				125,218				125,000				125,258
November 2026 Notes (4)			125,000				125,147				125,000				125,171
Total		$	383,000			$	383,365			$	357,000			$	357,429

(1)Carrying value represents the outstanding principal balance of the debt obligation.

(2)The fair value of the SBA debentures is estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures, which are Level 3 inputs under ASC Topic 820.

(3)The fair value of borrowings under the Credit Facility, if valued under ASC Topic 820, are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

(4)The fair value of the January 2026 Notes (as defined in Note 6) and the November 2026 Notes (as defined in Note 6) are estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date, which are Level 3 inputs under ASC Topic 820.

(5)Totals exclude $16,995 and $17,637 of Secured Borrowings as of September 30, 2022 and December 31, 2021, respectively.

Summary of Inputs Used to Value Debt Obligations

The following table summarizes the inputs used to value the Company’s debt obligations if measured at fair value as of September 30, 2022 and December 31, 2021.

		Fair Value
		September 30,				December 31,
Valuation Inputs		2022				2021
Level 1		$	—			$	—
Level 2			—				—
Level 3			383,365				357,429
Total		$	383,365			$	357,429

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