XML 30 R24.htm IDEA: XBRL DOCUMENT
v3.25.3

Fair Value Measurements (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2025
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, 2025 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
First Lien Debt | $ |  | — |  | $ |  | — |  | $ |  | 859,375 |  | $ |  | 859,375 |
Second Lien Debt |  |  | — |  |  |  | — |  |  |  | 82,267 |  |  |  | 82,267 |
Subordinated Debt |  |  | — |  |  |  | — |  |  |  | 107,705 |  |  |  | 107,705 |
Equity |  |  | — |  |  |  | — |  |  |  | 143,094 |  |  |  | 143,094 |
Warrants |  |  | — |  |  |  | — |  |  |  | 307 |  |  |  | 307 |
Money Market Funds |  |  | 57,853 |  |  |  | — |  |  |  | — |  |  |  | 57,853 |
Total | $ |  | 57,853 |  | $ |  | — |  | $ |  | 1,192,748 |  | $ |  | 1,250,601 |
|  | December 31, 2024 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
First Lien Debt | $ |  | — |  | $ |  | — |  | $ |  | 718,120 |  | $ |  | 718,120 |
Second Lien Debt |  |  | — |  |  |  | — |  |  |  | 83,543 |  |  |  | 83,543 |
Subordinated Debt |  |  | — |  |  |  | — |  |  |  | 142,839 |  |  |  | 142,839 |
Equity |  |  | — |  |  |  | — |  |  |  | 138,371 |  |  |  | 138,371 |
Warrants |  |  | — |  |  |  | — |  |  |  | 7,633 |  |  |  | 7,633 |
Money Market Funds |  |  | 48,715 |  |  |  | — |  |  |  | — |  |  |  | 48,715 |
Total | $ |  | 48,715 |  | $ |  | — |  | $ |  | 1,090,506 |  | $ |  | 1,139,221 |
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, 2025 and 2024:
|  | First Lien |  |  | Second Lien |  |  | Subordinated |  |  |  |  |  |  |  |  |  |
|  | Debt |  |  | Debt |  |  | Debt |  |  | Equity |  |  | Warrants |  |  | Total |
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 |
Balance, December 31, 2024 |  | $ | 718,120 |  |  | $ | 83,543 |  |  | $ | 142,839 |  |  | $ | 138,371 |  |  | $ | 7,633 |  |  | $ | 1,090,506 |
Net realized gains (losses) on investments |  |  | (14,498 | ) |  |  | — |  |  |  | — |  |  |  | 11,214 |  |  |  | 8,116 |  |  |  | 4,832 |
Net change in unrealized appreciation (depreciation) on investments |  |  | 23,929 |  |  |  | (7,381 | ) |  |  | (470 | ) |  |  | (2,876 | ) |  |  | (5,193 | ) |  |  | 8,009 |
Purchase of investments |  |  | 256,210 |  |  |  | 13,600 |  |  |  | — |  |  |  | 14,545 |  |  |  | 125 |  |  |  | 284,480 |
Proceeds from sales and repayments of investments |  |  | (137,539 | ) |  |  | — |  |  |  | (37,246 | ) |  |  | (18,160 | ) |  |  | (10,374 | ) |  |  | (203,319 | )
Interest and dividend income paid-in-kind |  |  | 3,348 |  |  |  | 2,158 |  |  |  | 2,378 |  |  |  | — |  |  |  | — |  |  |  | 7,884 |
Proceeds from loan origination fees |  |  | (1,667 | ) |  |  | (90 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,757 | )
Accretion of loan origination fees |  |  | 1,726 |  |  |  | 82 |  |  |  | 199 |  |  |  | — |  |  |  | — |  |  |  | 2,007 |
Accretion of original issue discount |  |  | 101 |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | 106 |
Transfers by type |  |  | 9,645 |  |  |  | (9,645 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance, September 30, 2025 |  | $ | 859,375 |  |  | $ | 82,267 |  |  | $ | 107,705 |  |  | $ | 143,094 |  |  | $ | 307 |  |  | $ | 1,192,748 |
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, 2025 and December 31, 2024. 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, 2025 |  |  | Techniques |  | Inputs |  | (weighted average)(1)
Debt investments: |  |  |  |  |  |  |  |  |
First Lien Debt |  | $ | 859,375 |  |  | Discounted cash flow |  | Weighted average cost of capital |  | 7.6% - 56.7% (14.3%)
Second Lien Debt |  |  | 79,123 |  |  | Discounted cash flow |  | Weighted average cost of capital |  | 12.8% - 22.5% (15.1%)
|  |  | 1,360 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 6.0 x - 6.0 x (6.0 x)
|  |  | 1,784 |  |  | Enterprise value waterfall |  | Revenue multiples |  | 0.7 x - 0.7 x (0.7 x)
Subordinated Debt |  |  | 107,440 |  |  | Discounted cash flow |  | Weighted average cost of capital |  | 11.5% - 20.0% (13.3%)
|  |  | 265 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 6.0 x - 6.0 x (6.0 x)
Equity investments: |  |  |  |  |  |  |  |  |
Equity |  |  | 133,914 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 3.5 x - 24.0 x (10.0 x)
|  |  | 9,180 |  |  | Enterprise value waterfall |  | Revenue multiples |  | 0.7 x - 9.0 x (5.9 x)
Warrants |  |  | 238 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 3.5 x - 3.5 x (3.5 x)
|  |  | 69 |  |  | Enterprise value waterfall |  | Revenue multiples |  | 4.0 x - 4.0 x (4.0 x)
(1) Unobservable inputs were weighted by the relative fair value of the instruments.
|  | Fair Value at |  |  | Valuation |  | Unobservable |  | Range
|  | December 31, 2024 |  |  | Techniques |  | Inputs |  | (weighted average)(1)
Debt investments: |  |  |  |  |  |  |  |  |
First Lien Debt |  | $ | 714,595 |  |  | Discounted cash flow |  | Weighted average cost of capital |  | 7.8% - 26.2% (14.5%)
|  |  | 3,525 |  |  | Enterprise value waterfall |  | Asset Coverage |  | 1.0 x - 1.0 x (1.0 x)
Second Lien Debt |  |  | 79,106 |  |  | Discounted cash flow (2) |  | Weighted average cost of capital |  | 13.4% - 55.5% (20.7%)
|  |  | 4,437 |  |  | Option Pricing |  | Volatility of credit |  | 85.0% - 85.0% (85.0%)
Subordinated Debt |  |  | 142,839 |  |  | Discounted cash flow |  | Weighted average cost of capital |  | 10.4% - 20.0% (13.2%)
Equity investments: |  |  |  |  |  |  |  |  |
Equity |  |  | 132,741 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 3.5 x - 30.0 x (11.0 x)
|  |  | 5,630 |  |  | Enterprise value waterfall |  | Revenue multiples |  | 0.8 x - 9.0 x (6.6 x)
Warrants |  |  | 7,633 |  |  | Enterprise value waterfall |  | EBITDA multiples |  | 3.5 x - 3.5 x (3.5 x)
|  |  | - |  |  | Enterprise value waterfall |  | Revenue multiples |  | 4.0 x - 4.0 x (4.0 x)
(1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Includes $9.6 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, 2025 and December 31, 2024.
|  | September 30, 2025(5) |  |  | December 31, 2024(5) |
|  | Carrying Value (1) |  |  | Fair Value |  |  | Carrying Value (1) |  |  | Fair Value |
SBA debentures (2) |  | $ | 191,000 |  |  | $ | 191,000 |  |  | $ | 175,000 |  |  | $ | 175,000 |
Revolving Credit Facility borrowings (3) |  |  | 15,000 |  |  |  | 15,000 |  |  |  | 45,000 |  |  |  | 45,000 |
January 2026 Notes (4) |  |  | 100,000 |  |  |  | 98,898 |  |  |  | 125,000 |  |  |  | 120,188 |
November 2026 Notes (4) |  |  | 125,000 |  |  |  | 118,856 |  |  |  | 125,000 |  |  |  | 114,293 |
March 2030 Notes (4) |  |  | 100,000 |  |  |  | 94,799 |  |  |  | — |  |  |  | — |
Total |  | $ | 531,000 |  |  | $ | 518,553 |  |  | $ | 470,000 |  |  | $ | 454,481 |
(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 the Revolving 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), the November 2026 Notes (as defined in Note 6), and the March 2030 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 $12,816 and $13,674 of Secured Borrowings as of September 30, 2025 and December 31, 2024, 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, 2025 and December 31, 2024.
|  | Fair Value |
|  | September 30, |  |  | December 31, |
Valuation Inputs |  | 2025 |  |  | 2024 |
Level 1 |  | $ | — |  |  | $ | — |
Level 2 |  |  | — |  |  |  | — |
Level 3 |  |  | 518,553 |  |  |  | 454,481 |
Total |  | $ | 518,553 |  |  | $ | 454,481 |

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Name Accounting Standards Codification -Section 55 -Paragraph 10 -SubTopic 10 -Topic 825 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-10 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-13 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-12 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration