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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

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:

		June 30, 2023
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		521,928		$		521,928
Second Lien Debt			—				—				161,690				161,690
Subordinated Debt			—				—				124,657				124,657
Equity			267				—				117,477				117,744
Warrants			—				—				2,703				2,703
Money Market Funds			37,650				—				—				37,650
Total	$		37,917		$		—		$		928,455		$		966,372

		December 31, 2022
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		456,105		$		456,105
Second Lien Debt			—				—				182,948				182,948
Subordinated Debt			—				—				101,456				101,456
Equity			310				—				117,431				117,741
Warrants			—				—				2,079				2,079
Money Market Funds			61,076				—				-				61,076
Total	$		61,386		$		—		$		860,019		$		921,405

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 six months ended June 30, 2023 and 2022:

		First Lien				Second Lien				Subordinated
		Debt				Debt				Debt				Equity				Warrants				Total
Balance, December 31, 2021		$	354,922			$	158,815			$	36,064			$	165,762			$	3,204			$	718,767
Net realized gains (losses) on investments			—				—				—				25,176				—				25,176
Net change in unrealized appreciation (depreciation) on investments			379				(3,862	)			54				(23,048	)			(23	)			(26,500	)
Purchase of investments			91,247				31,895				32,471				4,485				—				160,098
Proceeds from sales and repayments of investments			(14,312	)			(18,731	)			-				(34,965	)			—				(68,008	)
Interest and dividend income paid-in-kind			366				409				139				—				—				914
Proceeds from loan origination fees			(669	)			(115	)			(239	)			—				—				(1,023	)
Accretion of loan origination fees			606				86				19				—				—				711
Accretion of original issue discount			10				50				—				—				—				60
Balance, June 30, 2022		$	432,549			$	168,547			$	68,508			$	137,410			$	3,181			$	810,195
Balance, December 31, 2022		$	456,105			$	182,948			$	101,456			$	117,431			$	2,079			$	860,019
Net realized gains (losses) on investments			—				(9,333	)			—				3,850				—				(5,483	)
Net change in unrealized appreciation (depreciation) on investments			(76	)			4,737				(842	)			(2,529	)			624				1,914
Purchase of investments			92,162				25,000				23,682				6,504				—				147,348
Proceeds from sales and repayments of investments			(26,264	)			(42,413	)			—				(7,779	)			—				(76,456	)
Interest and dividend income paid-in-kind			237				823				812				—				—				1,872
Proceeds from loan origination fees			(923	)			(331	)			(508	)			—				—				(1,762	)
Accretion of loan origination fees			653				68				54				—				—				775
Accretion of original issue discount			34				191				3				—				—				228
Balance, June 30, 2023		$	521,928			$	161,690			$	124,657			$	117,477			$	2,703			$	928,455

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 June 30, 2023 and December 31, 2022. 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
		June 30, 2023				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	508,153			Discounted cash flow		Weighted average cost of capital		9.8% - 24.6% (15.9%)
			11,000			Enterprise value		Asset Coverage		1.0x - 1.0x (1.0x)
			2,775			Enterprise value		EBITDA multiples		4.3x - 4.3x (4.3x)
Second Lien Debt			159,567			Discounted cash flow (2)		Weighted average cost of capital		11.3% - 25.0% (15.1%)
			2,123			Enterprise value		Asset Coverage		0.8x - 0.8x (0.8x)
Subordinated Debt			124,657			Discounted cash flow		Weighted average cost of capital		9.2% - 18.8% (12.6%)
Equity investments:
Equity			110,580			Enterprise value		EBITDA multiples		3.5x - 16.0x (8.3x)
			6,897			Enterprise value		Revenue multiples		0.9x - 7.5x (5.8x)
Warrants			2,568			Enterprise value		EBITDA multiples		6.0x - 6.0x (6.0x)
			135			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 $53.0 million of debt investments which were valued using a trading discount to par.

		Fair Value at				Valuation		Unobservable		Range
		December 31, 2022				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	441,830			Discounted cash flow		Weighted average cost of capital		8.9% - 21.9% (15.5%)
			11,000			Enterprise value		Asset Coverage		1.1x - 1.1x (1.1x)
			3,275			Enterprise value		Revenue multiples		4.3x - 4.3x (4.3x)
Second Lien Debt			180,825			Discounted cash flow (2)		Weighted average cost of capital		11.7% - 25.0% (14.5%)
			-			Enterprise value		EBITDA multiples		5.0x - 5.0x (5.0x)
			2,123			Enterprise value		Asset Coverage		0.8x - 0.8x (0.8x)
Subordinated Debt			97,706			Discounted cash flow		Weighted average cost of capital		10.0% - 15.2% (12.5%)
			3,750			Enterprise value		EBITDA multiples		8.5x - 8.5x (8.5x)
Equity investments:
Equity			111,808			Enterprise value		EBITDA multiples		4.0x - 16.8x (8.1x)
			5,623			Enterprise value		Revenue multiples		0.9x - 7.8x (6.4x)
Warrants			1,949			Enterprise value		EBITDA multiples		6.0x - 6.0x (6.0x)
			130			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.

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 June 30, 2023 and December 31, 2022.

		June 30, 2023(5)								December 31, 2022(5)
		Carrying Value (1)				Fair Value				Carrying Value (1)				Fair Value
SBA debentures (2)		$	182,000			$	182,000			$	153,000			$	153,000
Credit Facility borrowings (3)			30,000				30,000				—				—
January 2026 Notes (4)			125,000				111,013				125,000				111,854
November 2026 Notes (4)			125,000				102,983				125,000				103,963
Total		$	462,000			$	425,996			$	403,000			$	368,817

(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 $16,552 and $16,880 of Secured Borrowings as of June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022.

		Fair Value
		June 30,				December 31,
Valuation Inputs		2023				2022
Level 1		$	—			$	—
Level 2			—				—
Level 3			425,996				368,817
Total		$	425,996			$	368,817

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