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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		696,280		$		696,280
Second Lien Debt			—				—				113,907				113,907
Subordinated Debt			—				—				149,170				149,170
Equity			—				—				123,484				123,484
Warrants			—				—				7,834				7,834
Money Market Funds			37,367				—				—				37,367
Total	$		37,367		$		—		$		1,090,675		$		1,128,042

		December 31, 2023
		Level 1				Level 2				Level 3				Total
First Lien Debt	$		—		$		—		$		578,140		$		578,140
Second Lien Debt			—				—				119,561				119,561
Subordinated Debt			—				—				135,173				135,173
Equity			257				—				120,007				120,264
Warrants			—				—				4,768				4,768
Money Market Funds			114,556				—				—				114,556
Total	$		114,813		$		—		$		957,649		$		1,072,462

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, 2024 and 2023:

		First Lien				Second Lien				Subordinated
		Debt				Debt				Debt				Equity				Warrants				Total
Balance, December 31, 2022		$	456,105			$	182,948			$	101,456			$	117,431			$	2,079			$	860,019
Net realized gains (losses) on investments			—				(9,333	)			—				13,600				—				4,267
Net change in unrealized appreciation (depreciation) on investments			(1,576	)			3,226				(1,314	)			(1,976	)			1,497				(143	)
Purchase of investments			135,283				25,000				29,041				14,725				—				204,049
Proceeds from sales and repayments of investments			(68,761	)			(48,607	)			(10,149	)			(18,799	)			—				(146,316	)
Interest and dividend income paid-in-kind			850				1,468				2,343				—				—				4,661
Proceeds from loan origination fees			(1,226	)			(331	)			(541	)			—				—				(2,098	)
Accretion of loan origination fees			1,563				106				140				—				—				1,809
Accretion of original issue discount			51				288				5				—				—				344
Balance, September 30, 2023		$	522,289			$	154,765			$	120,981			$	124,981			$	3,576			$	926,592
Balance, December 31, 2023		$	578,140			$	119,561			$	135,173			$	120,007			$	4,768			$	957,649
Net realized gains (losses) on investments			(3,280	)			(2,100	)			—				17,541				—				12,161
Net change in unrealized appreciation (depreciation) on investments			(1,467	)			(2,481	)			1,256				(5,524	)			3,067				(5,149	)
Purchase of investments			212,495				33,281				12,500				15,918				—				274,194
Proceeds from sales and repayments of investments			(90,314	)			(36,472	)			(2,864	)			(24,458	)			(1	)			(154,109	)
Interest and dividend income paid-in-kind			822				1,822				3,101				—				—				5,745
Proceeds from loan origination fees			(1,672	)			(123	)			(157	)			—				—				(1,952	)
Accretion of loan origination fees			1,503				142				156				—				—				1,801
Accretion of original issue discount			53				277				5				—				—				335
Balance, September 30, 2024		$	696,280			$	113,907			$	149,170			$	123,484			$	7,834			$	1,090,675

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, 2024 and December 31, 2023. 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, 2024				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	692,755			Discounted cash flow		Weighted average cost of capital		9.2% - 27.9% (14.9%)
			3,525			Enterprise value waterfall		Discount rate		1.1x - 1.1x (1.1x)
Second Lien Debt			113,907			Discounted cash flow (2)		Weighted average cost of capital		13.1% - 53.4% (16.5%)
Subordinated Debt			149,170			Discounted cash flow		Weighted average cost of capital		9.7% - 20.0% (13.1%)
Equity investments:
Equity			119,946			Enterprise value waterfall		EBITDA multiples		4.0x - 28.0x (10.4x)
			3,538			Enterprise value waterfall		Revenue multiples		0.8x - 8.5x (6.4x)
Warrants			7,834			Enterprise value waterfall		EBITDA multiples		7.0x - 7.0x (7.0x)
			-			Enterprise value waterfall		Revenue multiples		5.0x - 5.0x (5.0x)

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

(2) Includes $13.4 million of debt investments which were valued using a trading discount to par.

		Fair Value at				Valuation		Unobservable		Range
		December 31, 2023				Techniques		Inputs		(weighted average)(1)
Debt investments:
First Lien Debt		$	573,140			Discounted cash flow		Weighted average cost of capital		9.4% - 23.4% (15.6%)
			5,000			Enterprise value		Asset Coverage		1.3x - 1.3x (1.3x)
Second Lien Debt			119,561			Discounted cash flow (2)		Weighted average cost of capital		12.7% - 30.0% (16.1%)
Subordinated Debt			134,965			Discounted cash flow		Weighted average cost of capital		10.3% - 16.4% (13.4%)
			208			Enterprise value		EBITDA multiples		6.0x - 6.0x (6.0x)
Equity investments:
Equity			112,008			Enterprise value		EBITDA multiples		4.0x - 32.5x (9.5x)
			7,999			Enterprise value		Revenue multiples		0.7x - 9.5x (7.5x)
Warrants			4,625			Enterprise value		EBITDA multiples		6.0x - 6.0x (6.0x)
			143			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 $50.5 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 September 30, 2024 and December 31, 2023.

		September 30, 2024(5)								December 31, 2023(5)
		Carrying Value (1)				Fair Value				Carrying Value (1)				Fair Value
SBA debentures (2)		$	175,000			$	175,000			$	210,000			$	210,000
Credit Facility borrowings (3)			40,000				40,000				—				—
January 2026 Notes (4)			125,000				118,350				125,000				113,682
November 2026 Notes (4)			125,000				111,806				125,000				106,103
Total		$	465,000			$	445,156			$	460,000			$	429,785

(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 $14,025 and $15,880 of Secured Borrowings as of September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023.

		Fair Value
		September 30,				December 31,
Valuation Inputs		2024				2023
Level 1		$	—			$	—
Level 2			—				—
Level 3			445,156				429,785
Total		$	445,156			$	429,785

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