XML 23 R17.htm IDEA: XBRL DOCUMENT
v3.26.1

Fair Value Measurement | 6 Months Ended
--- | ---
Jun. 30, 2026
Fair Value Disclosures [Abstract] |
Fair Value Measurement | 4. FAIR VALUE MEASUREMENT The fair value of a financial instrument is the amount that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). The fair value hierarchy under ASC 820 prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these securities. The three levels of the fair value hierarchy are as follows: Basis of Fair Value Measurement Level 1 Investments valued using unadjusted quoted prices in active markets for identical assets. Level 2 Investments valued using other unadjusted observable market inputs, e.g. quoted prices in markets that are not active or quotes for comparable instruments. Level 3 Investments that are valued using quotes and other observable market data to the extent available, but which also take into consideration one or more unobservable inputs that are significant to the valuation taken as a whole. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Note 2 should be read in conjunction with the information outlined below. The table below presents the valuation techniques and the nature of significant inputs generally used in determining the fair value of Level 2 and Level 3 Instruments. Level 2 Instruments Valuation Techniques and Significant Inputs
Equity, Bank Loans, Corporate Debt, and Other Debt Obligations |  | The types of instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency may include commercial paper, most government agency obligations, certain corporate debt securities, certain mortgage-backed securities, certain bank loans, less liquid publicly-listed equities, certain state and municipal obligations, certain money market instruments and certain loan commitments. Valuations of Level 2 debt and equity instruments can be verified to quoted prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g. indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources.
Level 3 Instruments Valuation Techniques and Significant Inputs
Bank Loans, Corporate Debt, and Other Debt Obligations |  | Valuations are generally based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market yields and recovery assumptions. The significant inputs are generally determined based on an analysis of market comparables, transactions in similar instruments and/or recovery and liquidation analyses.
Equity |  | Recent third-party investments or pending transactions are considered to be the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate and available: ▪ Transactions in similar instruments; ▪ Discounted cash flow techniques; ▪ Third party appraisals; and ▪ Industry multiples and public comparables. Evidence includes recent or pending reorganizations (for example, merger proposals, tender offers and debt restructurings) and significant changes in financial metrics, including: ▪ Current financial performance as compared to projected performance; ▪ Capitalization rates and multiples; and ▪ Market yields implied by transactions of similar or related assets.
As noted above, the income and market approaches were used in the determination of fair value of certain Level 3 assets as of June 30, 2026 and December 31, 2025. The significant unobservable inputs used in the income approach are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates is risk of default, rating of the investment (if any), call provisions and comparable company valuations. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market multiples would result in an increase or decrease, respectively, in the fair value. The following summarizes the Company’s investment assets categorized within the fair value hierarchy as of June 30, 2026:
Type of Investment |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Asset |  |  |  |  |  |  |  |  |  |  |  |
Debt |  | $ | - |  |  | $ | 53,082 |  |  | $ | 139,480 |  |  | $ | 192,562 |
Equity/Other |  |  | - |  |  |  | 538 |  |  |  | 31,226 |  |  |  | 31,764 |
Short Term Investments |  |  | 3,966 |  |  |  | - |  |  |  | - |  |  |  | 3,966 |
Total |  | $ | 3,966 |  |  | $ | 53,620 |  |  | $ | 170,706 |  |  | $ | 228,292 |
Investment measured at net asset value(1) |  |  |  |  |  |  |  |  |  |  |  | 43,960 |
Total Investments, at fair value |  |  |  |  |  |  |  |  |  |  | $ | 272,252 |
The following summarizes the Company’s investment assets categorized within the fair value hierarchy as of December 31, 2025:
Type of Investment |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Asset |  |  |  |  |  |  |  |  |  |  |  |
Debt |  | $ | - |  |  | $ | 81,893 |  |  | $ | 121,618 |  |  | $ | 203,511 |
Equity/Other |  |  | 10,994 |  |  |  | 138 |  |  |  | 31,437 |  |  |  | 42,569 |
Short Term Investments |  |  | 32,803 |  |  |  | - |  |  |  | - |  |  |  | 32,803 |
Total |  | $ | 43,797 |  |  | $ | 82,031 |  |  | $ | 153,055 |  |  | $ | 278,883 |
Investment measured at net asset value(1) |  |  |  |  |  |  |  |  |  |  |  | 52,188 |
Total Investments, at fair value |  |  |  |  |  |  |  |  |  |  | $ | 331,071 |
(1) C ertain investments that are measured at fair value using net asset value (“NAV”) have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Statements of Assets and Liabilities. The following is a reconciliation of Level 3 assets for the six months ended June 30, 2026:
Level 3 |  | Beginning Balance as of January 1, 2026 |  |  | Net Transfers In/Out |  |  | Purchases(1) |  |  | Net Realized Gain (Loss) |  |  | Net Change in Unrealized Appreciation (Depreciation)(2) |  |  | Sales and Settlements(1) |  |  | Net Amortization of Premium/ Discount |  |  | Ending Balance as of June 30, 2026 |
Debt |  | $ | 121,618 |  |  | $ | 6,474 |  |  | $ | 36,147 |  |  | $ | (221 | ) |  | $ | 2,022 |  |  | $ | (26,900 | ) |  | $ | 340 |  |  | $ | 139,480 |
Equity/Other |  |  | 31,437 |  |  |  | - |  |  |  | 8,415 |  |  |  | 1 |  |  |  | (5,572 | ) |  |  | (3,055 | ) |  |  | - |  |  |  | 31,226 |
Total investment assets |  | $ | 153,055 |  |  | $ | 6,474 |  |  | $ | 44,562 |  |  | $ | (220 | ) |  | $ | (3,550 | ) |  | $ | (29,955 | ) |  | $ | 340 |  |  | $ | 170,706 |
The following is a reconciliation of Level 3 assets for the six months ended June 30, 2025:
Level 3 |  | Beginning Balance as of January 1, 2025 |  |  | Net Transfers In/Out |  |  | Purchases(1) |  |  | Net Realized Gain (Loss) |  |  | Net Change in Unrealized Appreciation (Depreciation)(2) |  |  | Sales and Settlements(1) |  |  | Net Amortization of Premium/ Discount |  |  | Ending Balance as of June 30, 2025 |
Debt |  | $ | 159,954 |  |  | $ | (21,860 | ) |  | $ | 24,138 |  |  | $ | 281 |  |  | $ | (2,039 | ) |  | $ | (36,849 | ) |  | $ | 252 |  |  | $ | 123,877 |
Equity/Other |  |  | 32,937 |  |  |  | - |  |  |  | 6,396 |  |  |  | (89 | ) |  |  | 115 |  |  |  | (979 | ) |  |  | - |  |  |  | 38,380 |
Total investment assets |  | $ | 192,891 |  |  | $ | (21,860 | ) |  | $ | 30,534 |  |  | $ | 192 |  |  | $ | (1,924 | ) |  | $ | (37,828 | ) |  | $ | 252 |  |  | $ | 162,257 |
(1) Purchases may include new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings, capitalized PIK income, and securities received in corporate actions and restructurings. Sales and Settlements may include scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities), and securities delivered in corporate actions and restructuring of investments. (2) The net change in unrealized depreciation relating to Level 3 assets still held at June 30, 2026 totaled $(3,855) consisting of the following: $1,717 related to debt investments and $(5,572) related to equity/other. The net change in unrealized depreciation relating to Level 3 assets still held at June 30, 2025 totaled $(5,206) consisting of the following: $(5,321) related to debt investments and $115 relating to equity/other. Two investments with an aggregate fair value of $3,680 were transferred from Level 3 to Level 2 as a result of increased pricing transparency during the six months ended June 30, 2026. Six investments with an aggregate fair value of $10,154 were transferred from Level 2 to Level 3 as a result of reduced pricing transparency during the six months ended June 30, 2026. Six investments with an aggregate fair value of $37,959 were transferred from Level 3 to Level 2 as a result of increased pricing transparency during the six months ended June 30, 2025. Six investments with an aggregate fair value of $16,099 were transferred from Level 2 to Level 3 as a result of decreased pricing transparency during the six months ended June 30, 2025. Changes in pricing transparency are the result of changes in the number of brokers quoting an investment and evidence of observable trading activity at a given price. These factors support the assumption that prices provided by third-party vendors are representative of the value that an investment may transact at, whereas limited evidence of these factors may indicate that additional valuation procedures including unobservable inputs should be utilized. The following tables below present the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of June 30, 2026 and December 31, 2025, respectively. These ranges represent the significant unobservable inputs that were used in the valuation of each type of instrument, but they do not represent a range of values for any one instrument. For example, the lowest yield in 1 st Lien Debt is appropriate for valuing that specific debt investment, but may not be appropriate for valuing any other debt investments in this asset class. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 assets.
As of June 30, 2026
Investment Type |  | Fair value |  |  | Valuation Technique(1) |  | Unobservable Input(1) |  | Range (Weighted Average)(2)
Debt |  | $ | 100,583 |  |  | Income Approach |  | Discount Rate |  | 6.52% - 30.84% (14.07%)
|  |  | 31,845 |  |  | Recent Transaction |  |  |  |
|  |  | 3,882 |  |  | Market Approach |  | Earnings Multiple |  | 0.00 - 9.75 (5.36)
|  |  | 2,490 |  |  | Broker Quotes |  |  |  | $0.05 - $99.25 ($71.70)
|  |  | 680 |  |  | Asset Recovery |  | Recovery Rates |  | 27.00% - 37.00% (32.00%)
Total Debt |  | $ | 139,480 |  |  |  |  |  |  |
Equity / Other |  | $ | 14,537 |  |  | Recent Transaction |  |  |  |
|  |  | 3,458 |  |  | Insurance Industry Model |  | Estimated Losses |  | $0.0 MM - $65.0 MM ($32.5 MM)
|  |  | 6,266 |  |  | Income Approach |  | Discount Rate |  | 17.50% - 19.50% (18.50%)
|  |  | 6,881 |  |  | Market Approach |  | Earnings Multiple |  | 4.50 - 14.57 (8.80)
|  |  | 84 |  |  | Asset Recovery / Liquidation(3) |  |  |  |
Total Equity |  | $ | 31,226 |  |  |  |  |  |  |
As of December 31, 2025
Investment Type |  | Fair value |  |  | Valuation Technique(1) |  | Unobservable Input(1) |  | Range (Weighted Average)(2)
Debt |  | $ | 86,912 |  |  | Income Approach |  | Discount Rate |  | 8.02% - 27.19% (14.95%)
|  |  | 25,325 |  |  | Recent Transaction |  |  |  |
|  |  | 8,386 |  |  | Market Approach |  | Earnings Multiple |  | 0.00 - 9.75 (0.00)
|  |  | 995 |  |  | Broker Quotes |  |  |  | $99.50 - $99.50 ($99.50)
Total Debt |  | $ | 121,618 |  |  |  |  |  |  |
Equity / Other |  | $ | 13,137 |  |  | Recent Transaction |  |  |  |
|  |  | 6,659 |  |  | Insurance Industry Model |  | Estimated Losses |  | $0.0 MM-$65.0 MM($32.5 MM)
|  |  | 6,474 |  |  | Income Approach |  | Discount Rate |  | 17.00% - 19.00% (18.00%)
|  |  | 5,082 |  |  | Market Approach |  | Earnings Multiple |  | 0.09 - 10.00 (8.76)
|  |  | 85 |  |  | Asset Recovery / Liquidation (3) |  |  |  |
Total Equity/Other |  | $ | 31,437 |  |  |  |  |  |  |
(1) The fair value of any one instrument may be determined using multiple valuation techniques or unobservable inputs. (2) Weighted average for an asset category consisting of multiple investments is calculated by weighting the significant unobservable input by the relative fair value of the investment. The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment. (3) Investments valued using the asset recovery or liquidation technique include investments for which valuation is based on current financial data without a discount rate applied. In accordance with ASC 820, certain investments that do not have a readily determinable fair value and which are within the scope of Topic 946, Financial Services - Investment Companies, may be measured using NAV as a practical expedient. As of June 30, 2026 the Company held three investments valued using NAV as a practical expedient. These investments are generally restricted from withdrawal subject to the terms of each investment vehicle with withdrawals allowed no more than annually. There is no set duration for these entities.

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 for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + 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 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration