The
following
is
a
summary
of
quantitative
information
about
the
significant
unobservable
inputs
of
the
Fund’s
Level
3
investments
as
of
March
31,
2024
(amounts
in
thousands)
.
The
weighted
average
range
of
unobservable
inputs
is
based
on
the
fair
value
of
investments.
Various
valuation
techniques
were
used
in
the
valuation
of
certain
investments
and
weighted
based
on
the
level
of
significance.
The
tables
are
not
intended
to
be
all-inclusive
but
instead
capture
the
significant
unobservable
inputs
relevant
to
the
Fund’s
determination
of
fair
value.
The
following
is
a
reconciliation
of
investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
fair
value
(amounts
in
thousands)
:
Investment
Fair
Value
Valuation
Technique
Unobservable
Input
(1)
Range
(Weighted
Average)
Impact
to
Valuation
from
an
Increase
in
Input
(2)
Real
Estate
Co-Investment
Joint
Ventures
$
1,104,658
Direct
Capitalization
Capitalization
Rate
4.8%
–
5.3%
(5.0%)
Decrease
Discounted
Cash
Flow
Discount
Rate
7.0%
–
9.9%
(7.7%)
Decrease
Sales
Comparison
Approach
Price
Per
Unit
($)
$215
-
$510
($329)
Increase
Recent
Transaction
Transaction
Price
N/A
Increase
Total
Real
Estate
Co-Investment
Joint
Ventures
$
1,104,658
(1)
Represents
the
significant
unobservable
inputs
used
to
fair
value
the
financial
instruments
of
the
joint
ventures.
The
fair
value
of
such
financial
instruments
is
the
largest
component
of
the
valuation
of
each
joint
venture
as
a
whole.
(2)
Represents
the
expected
directional
change
in
the
fair
value
of
the
Level
3
investments
that
would
result
from
an
increase
in
the
corresponding
input.
A
decrease
to
the
unobservable
input
would
have
the
opposite
effect.
Significant
changes
in
these
inputs
could
result
in
significantly
higher
or
lower
fair
value
measurements.
Real
Estate
Co-
Investment
Joint
Ventures
Balance
as
of
December
31,
2023
$
1,040,646
Purchases
63,395
Realized
gain
(loss)
–
Net
change
in
unrealized
appreciation/depreciation
30,004
Return
of
capital
distributions
(29,387)
Sales
–
Transfers
into
Level
3
–
Transfers
out
of
Level
3
–
Balance
as
of
March
31,
2024
$
1,104,658
Net
change
in
unrealized
appreciation/depreciation
for
the
period
ended
March
31,
2024
related
to
Level
3
investments
held
at
March
31,
2024
$
30,004