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Fair Value of Investments (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Fair Value Hierarchy of Investments

The tables below present the fair value hierarchy of investments as of the following periods:


	Fair Value Hierarchy as of December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash (including restricted and foreign cash)	$	514,156	$	—	$	—	$	514,156
Investments:
First-lien senior secured debt investments(1)	$	—	$	87,260	$	9,887,620	$	9,974,880
Second-lien senior secured debt investments	—		46,740		660,060		706,800
Unsecured debt investments	—		—		301,956		301,956
Preferred equity investments(4)	—		—		371,744		371,744
Common equity investments(2)	912		—		1,345,881		1,346,793
Subtotal	$	912	$	134,000	$	12,567,261	$	12,702,173
Investments measured at Net Asset Value ("NAV")(3)	—		—		—		492,372
Total Investments at fair value	$	912	$	134,000	$	12,567,261	$	13,194,545
Derivatives:
Interest rate swaps	$	—	$	(38,241)	$	—	$	(38,241)

_______________

(1)Includes debt investments in Amergin AssetCo.

(2)Includes equity investments in Wingspire, Amergin AssetCo and Fifth Season.

(3)Includes equity investments in Credit SLF and LSI Financing LLC, which are measured at fair value using the net asset value per share (or its equivalent) practical expedient and has not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

(4)Includes equity investment in LSI Financing DAC.


	Fair Value Hierarchy as of December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash (including restricted and foreign cash)	$	659,658	$	—	$	—	$	659,658
Investments:
First-lien senior secured debt investments(1)	$	—	$	—	$	8,660,754	$	8,660,754
Second-lien senior secured debt investments	—		99,715		1,675,269		1,774,984
Unsecured debt investments	—		11,793		280,958		292,751
Preferred equity investments(4)	—		—		433,297		433,297
Common equity investments(2)	1,093		—		1,207,683		1,208,776
Subtotal	$	1,093	$	111,508	$	12,257,961	$	12,370,562
Investments measured at NAV(3)	—		—		—		342,786
Total Investments at fair value	$	1,093	$	111,508	$	12,257,961	$	12,713,348
Derivatives:
Interest rate swaps	$	—	$	—	$	(45,656)	$	(45,656)

_______________

(1)Includes debt investments in Amergin AssetCo.

(2)Includes equity investments in Wingspire, Amergin AssetCo and Fifth Season.

(3)Includes equity investment in OBDC SLF.

(4)Includes equity investment in LSI Financing DAC.

Schedule of Changes in the Fair Value of Investments

The tables below present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the following periods:


	As of and for the Year Ended December 31, 2024
($ in thousands)	First-lien senior secured debt investments		Second-lien senior secured debt investments		Unsecured debt investments		Preferred equity investments		Common equity investments		Total
Fair value, beginning of period	$	8,660,754	$	1,675,269	$	280,958	$	433,297	$	1,207,683	$	12,257,961
Purchases of investments, net	4,007,144		19,999		68,072		21,075		259,873		4,376,163
Payment-in-kind	148,718		16,298		37,775		41,527		798		245,116
Proceeds from investments, net	(2,837,557)		(971,442)		(142,858)		(58,496)		(177,212)		(4,187,565)
Net change in unrealized gain (loss)	(63,435)		(78,619)		6,464		(7,430)		79,531		(63,489)
Net realized gains (losses)	(63,412)		(2,146)		(13,216)		2,971		(738)		(76,541)
Net amortization/accretion of discount/premium on investments	52,151		10,049		899		2,662		—		65,761
Transfers between investment types	(16,742)		—		63,862		(63,862)		16,742		—
Transfers into (out of) Level 3(1)	—		(9,350)		—		—		(40,794)		(50,144)
Fair value, end of period	$	9,887,621	$	660,058	$	301,956	$	371,744	$	1,345,883	$	12,567,262

_______________

(1)Transfers into (out of) Level 3 were a result of an investment measured at net asset value which is no longer categorized within the fair value hierarchy.


	As of and for the Year Ended December 31, 2023
($ in thousands)	First-lien senior secured debt investments		Second-lien senior secured debt investments		Unsecured debt investments		Preferred equity investments		Common equity investments		Total
Fair value, beginning of period	$	9,279,179	$	1,817,286	$	237,440	$	355,261	$	977,111	$	12,666,277
Purchases of investments, net	1,906,568		—		—		40,054		205,436		2,152,058
Payment-in-kind	127,974		17,816		29,044		33,644		718		209,196
Proceeds from investments, net	(2,662,751)		(55,050)		(192)		(6,838)		(39,400)		(2,764,231)
Net change in unrealized gain (loss)	66,742		(16,127)		14,213		9,854		15,999		90,681
Net realized gains (losses)	(52,240)		—		(23)		235		—		(52,028)
Net amortization of discount on investments	43,588		3,596		476		1,087		—		48,747
Transfers between investment types	(47,819)		—		—		—		47,819		—
Transfers into (out of) Level 3(1)	(487)		(92,252)		—		—		—		(92,739)
Fair value, end of period	$	8,660,754	$	1,675,269	$	280,958	$	433,297	$	1,207,683	$	12,257,961

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the period ended December 31, 2023, transfers out of Level 3 into Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies.


	As of and for the Year Ended December 31, 2022
($ in thousands)	First-lien senior secured debt investments		Second-lien senior secured debt investments		Unsecured debt investments		Preferred equity investments		Common equity investments		Total
Fair value, beginning of period	$	9,539,774	$	1,921,447	$	196,485	$	260,869	$	571,616	$	12,490,191
Purchases of investments, net	1,436,533		32,091		89,239		114,012		344,631		2,016,506
Payment-in-kind	98,788		10,874		17,947		18,847		632		147,088
Proceeds from investments, net	(1,731,097)		(30,499)		(31,506)		(33,694)		(50,925)		(1,877,721)
Net change in unrealized gain (loss)	(100,996)		(73,019)		(20,258)		(10,667)		110,838		(94,102)
Net realized gains (losses)	133		—		(3,347)		4,482		319		1,587
Net amortization of discount on investments	36,044		3,655		500		1,412		—		41,611

Transfers into (out of) Level 3(1)	—		(47,263)		(11,620)		—		—		(58,883)
Fair value, end of period	$	9,279,179	$	1,817,286	$	237,440	$	355,261	$	977,111	$	12,666,277

_______________

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the period ended December 31, 2022, transfers out of Level 3 into Level 2 were a result of changes in the observability of significant inputs for certain portfolio companies.

The table below presents the net change in unrealized gains on investments for which Level 3 inputs were used in determining the fair value that are still held by the Company for the following periods:


	Net change in unrealized gain (loss) for the Year Ended December 31, 2024 on Investments Held at December 31, 2024		Net change in unrealized gain (loss) for the Year Ended December 31, 2023 on Investments Held at December 31, 2023		Net change in unrealized gain (loss) for the Year Ended December 31, 2022 on Investments Held at December 31, 2022
First-lien senior secured debt investments	$	(50,558)	$	12,696	$	(106,893)
Second-lien senior secured debt investments	(72,795)		(37,381)		(68,165)
Unsecured debt investments	6,464		14,215		(20,259)
Preferred equity investments	(3,326)		9,854		(10,388)
Common equity investments	78,651		16,006		110,841
Total Investments	$	(41,564)	$	15,390	$	(94,864)

Schedule of Quantitative Information About Significant Unobservable Inputs of Level 3 Investments

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of the following periods. The weighted average range of unobservable inputs is based on fair value of investments. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.

As of December 31, 2024

($ in thousands)

Fair Value

Valuation Technique

Unobservable Input

(Range) Weighted Average

Impact to Valuation from an
Increase in Input

First-lien senior secured debt investments

9,347,861

Yield Analysis

Market Yield

(6.8% - 35.2%) 11.3%

Decrease

475,100

Recent Transaction

Transaction Price

(98.3% - 100.0%) 99.0%

Increase

64,659

Collateral Analysis

Recovery Rate

(13.5% - 62.5%) 49.5%

Increase

Second-lien senior secured debt investments

655,188

Yield Analysis

Market Yield

(11.4% - 19.8%) 16.1%

Decrease

4,872

Collateral Analysis

Recovery Rate

(0.0% - 4.0%) 4.0%

Increase

Unsecured debt investments

295,601

Yield Analysis

Market Yield

(8.6% - 18.1%) 13.1%

Decrease

6,355

Market Approach

EBITDA Multiple

(11.8x - 11.8x) 11.8x

Increase

Preferred equity investments

362,841

Yield Analysis

Market Yield

(12.3% - 37.1%) 17.9%

Decrease

8,751

Market Approach

EBITDA Multiple

(7.1x - 7.1x) 7.1x

Increase

152

Market Approach

Revenue Multiple

(8.5x - 8.5x) 8.5x

Increase

Common equity investments

1,000,315

Market Approach

EBITDA Multiple

(1.2x - 20.0x) 5.4x

Increase

223,274

Market Approach

AUM Multiple

(1.1x - 1.1x) 1.1x

Increase

62,056

Market Approach

N/A

38,412

Market Approach

Revenue Multiple

(5.3x - 14.5x) 11.4x

Increase

10,498

Yield Analysis

Market Yield

(8.5% - 8.5%) 8.5%

Decrease

10,011

Market Approach

Transaction Price

($96.84 - $96.84) $96.84

Increase

778

Discounted Cash Flow Analysis

Discounted Factor

(20.0% - 20.0%) 20.0%

Decrease

357

Option Pricing Model

Volatility

(60.0% - 70.0%) 69.8%

Increase

180

Market Approach

Gross Profit Multiple

(10.0x - 10.0x) 10.0x

Increase

As of December 31, 2023

($ in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Impact to Valuation from an
Increase in Input

First-lien senior secured debt investments

7,553,464

Yield Analysis

Market Yield

(9.1% - 27.4%) 12.8%

Decrease

1,047,390

Recent Transaction

Transaction Price

(97.0% - 99.8%) 98.6%

Increase

59,900

Collateral Analysis

Recovery Rate

(82.5% - 82.5%) 82.5%

Increase

Second-lien senior secured debt investments

1,666,832

Yield Analysis

Market Yield

(11.4% - 39.5%) 15.8%

Decrease

8,437

Collateral Analysis

Recovery Rate

(13.3% - 13.3%) 13.3%

Increase

Unsecured debt investments

275,158

Yield Analysis

Market Yield

(10.6% - 17.2%) 12.0%

Decrease

5,800

Market Approach

EBITDA Multiple

(11.8x - 11.8x) 11.8x

Increase

Preferred equity investments

396,747

Yield Analysis

Market Yield

(12.6% - 25.8%) 16.4%

Decrease

36,550

Recent Transaction

Transaction Price

(98.0% - 107.5%) 104.4%

Increase

Common equity investments

938,313

Market Approach

EBITDA Multiple

(1.2x - 20.3x) 5.6x

Increase

218,333

Recent Transaction

Transaction Price

(100.0% - 100.0%) 100.0%

Increase

36,138

Market Approach

Revenue

(1.9x - 14.7x) 10.5x

Increase

9,606

Yield Analysis

Market Yield

(7.9% - 7.9%) 7.9%

Decrease

5,149

Market Approach

Transaction Price

($92.00 - $92.00) $92.00

Increase

144

Market Approach

Gross Profit

(9.9x - 9.9x) 9.9x

Increase

Schedule of Carrying Values and Fair Values of the Company’s Debt Obligations

The table below presents the carrying and fair values of the Company’s debt obligations as of the following periods:


	December 31, 2024						December 31, 2023
($ in thousands)	Net Carrying Value		Debt Issuance Costs		Fair Value		Net Carrying Value		Debt Issuance Costs		Fair Value
Revolving Credit Facility	$	269,919	(22,426)		$	269,919	$	401,075	(17,970)		$	401,075
SPV Asset Facility II	296,227		(3,773)		296,227		245,728		(4,272)		245,728


CLO I	386,183		(3,817)		386,183		274,213		(2,394)		274,213
CLO II	257,770		(2,230)		257,770		257,467		(2,533)		257,467
CLO III	258,138		(1,862)		258,138		258,324		(1,676)		258,324
CLO IV	288,694		(3,806)		288,694		288,184		(4,316)		288,184
CLO V	507,315		(2,310)		507,315		507,000		(2,625)		507,000
CLO VI	—		—		—		258,425		(1,575)		258,425
CLO VII	237,538		(1,612)		237,538		237,288		(1,862)		237,288
CLO X	258,322		(1,678)		258,322		258,126		(1,874)		258,126
2024 Notes	—		—		—		395,942		(657)		399,000
2025 Notes	424,579		(421)		423,938		422,880		(2,120)		413,313
July 2025 Notes	498,952		(1,048)		496,250		497,118		(2,882)		478,750
2026 Notes	497,572		(2,428)		495,000		495,320		(4,680)		483,750
July 2026 Notes	992,360		(7,640)		970,000		987,597		(12,403)		930,000
2027 Notes	465,449		(4,101)		476,250		454,017		(6,037)		451,250
2028 Notes	840,888		(9,112)		782,000		838,384		(11,616)		745,875
2029 Notes	977,796		(16,099)		1,017,500		—		—		—
Total Debt	$	7,457,702	$	(84,363)	$	7,421,044	$	7,077,088	$	(81,492)	$	6,887,768

The below table presents the fair value measurements of the Company’s debt obligations as of the following periods:


($ in thousands)	December 31, 2024		December 31, 2023
Level 1	$	—	$	—
Level 2	4,660,938		3,901,938
Level 3	2,760,106		2,985,830
Total Debt	$	7,421,044	$	6,887,768

- 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 + Details