| Derivative Instruments |
6. DERIVATIVE INSTRUMENTS The Fund enters into derivative instruments from time to time to help mitigate its foreign currency and interest rate risk exposures. Foreign Currency Forward Contracts Certain information related to the Fund’s foreign currency forward derivative instruments as of December 31, 2025 and 2024 is presented below. | | As of December 31, 2025 | Derivative Instrument | | Notional
Amount | | Gross Amount
of Recognized
Assets | | Gross Amount
of Recognized
Liabilities | | Balance Sheet
Location of Net Amounts | Foreign currency forward contract | | ¥ | 2,121,107 | | $ | 20,497 | | $ | (19,540) | | Other assets | Foreign currency forward contract | | NOK | 663,462 | | | 66,170 | | | (65,756) | | Other assets | Foreign currency forward contract | | € | 271,859 | | | 301,662 | | | (308,489) | | Accounts payable
and other liabilities | Foreign currency forward contract | | € | 243,266 | | | 282,437 | | | (289,770) | | Accounts payable
and other liabilities | Foreign currency forward contract | | £ | 209,269 | | | 254,700 | | | (260,480) | | Accounts payable
and other liabilities | Foreign currency forward contract | | CAD | 170,803 | | | 135,811 | | | (137,898) | | Accounts payable
and other liabilities | Foreign currency forward contract | | £ | 88,941 | | | 117,531 | | | (119,271) | | Accounts payable
and other liabilities | Foreign currency forward contract | | NOK | 47,388 | | | 4,513 | | | (4,696) | | Accounts payable
and other liabilities | Foreign currency forward contract | | £ | 37,090 | | | 49,790 | | | (49,632) | | Other assets | Foreign currency forward contract | | DKK | 29,850 | | | 4,773 | | | (4,822) | | Accounts payable
and other liabilities | Foreign currency forward contract | | CAD | 23,894 | | | 17,161 | | | (17,442) | | Accounts payable
and other liabilities | Foreign currency forward contract | | € | 13,416 | | | 16,256 | | | (16,264) | | Accounts payable
and other liabilities | Foreign currency forward contract | | AUD | 9,518 | | | 6,165 | | | (6,327) | | Accounts payable
and other liabilities | Foreign currency forward contract | | AUD | 5,725 | | | 3,769 | | | (3,812) | | Accounts payable
and other liabilities | Foreign currency forward contract | | NZD | 4,176 | | | 2,622 | | | (2,524) | | Other assets | Foreign currency forward contract | | CHF | 373 | | | 471 | | | (472) | | Accounts payable
and other liabilities | Total | | | | | $ | 1,284,328 | | $ | (1,307,195) | | |
| | As of December 31, 2024 | Derivative Instrument | | Notional
Amount | | Gross Amount
of Recognized
Assets | | Gross Amount
of Recognized
Liabilities | | Balance Sheet
Location of Net Amounts | Foreign currency forward contract | | NOK | 910,877 | | $ | 307,682 | | $ | (305,484) | | Other assets | Foreign currency forward contract | | € | 101,075 | | | 104,738 | | | (103,498) | | Other assets | Foreign currency forward contract | | £ | 70,493 | | | 89,788 | | | (88,011) | | Other assets | Foreign currency forward contract | | € | 65,111 | | | 69,497 | | | (68,083) | | Other assets | Foreign currency forward contract | | CAD | 33,593 | | | 25,013 | | | (24,034) | | Other assets | Foreign currency forward contract | | CAD | 30,622 | | | 21,367 | | | (21,334) | | Other assets | Foreign currency forward contract | | £ | 28,842 | | | 36,242 | | | (36,023) | | Other assets | Foreign currency forward contract | | NOK | 27,017 | | | 2,502 | | | (2,374) | | Other assets | Foreign currency forward contract | | AUD | 9,518 | | | 6,165 | | | (5,917) | | Other assets | Foreign currency forward contract | | AUD | 4,057 | | | 2,684 | | | (2,520) | | Other assets | Foreign currency forward contract | | NZD | 2,520 | | | 1,543 | | | (1,437) | | Other assets | Total | | | | | $ | 667,221 | | $ | (658,715) | | |
As of December 31, 2025 and 2024, the counterparties to each of the Fund’s foreign currency forward contracts were Canadian Imperial Bank of Commerce, SMBC Capital Markets, Inc. or Wells Fargo Bank, N.A. Net realized and unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recognized by the Fund for the years ended December 31, 2025, 2024 and 2023 are in the following locations in the consolidated statements of operations: | | | | For the Years Ended December 31, | Derivative Instrument | | Statement Location | | 2025 | | 2024 | | 2023 | Foreign currency forward contract | | Net realized gains (losses) on foreign currency transactions | | $ | (12,695) | | $ | 358 | | $ | — | Foreign currency forward contract | | Net unrealized gains (losses) on foreign currency transactions | | $ | (31,374) | | $ | 9,745 | | $ | (598) |
Interest Rate Swaps In connection with the Unsecured Notes, the Fund has entered into interest rate swaps to more closely align the interest rates of such liabilities with the Fund’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swaps, the Fund receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. The Fund designated these interest rate swaps and the Unsecured Notes as qualifying fair value hedge accounting relationships. As of December 31, 2025 and 2024, the counterparty to all of the Fund’s interest rate swaps was Wells Fargo Bank, N.A. Certain information related to the Fund’s interest rate swaps as of December 31, 2025 is presented below. Description | | Hedged Item | | Fund Receives | | Fund Pays | | Maturity Date | | Notional Amount | | Interest rate swap | | March 2028 Notes | | 5.700 | % | SOFR +1.6490% | | March 15, 2028 | | $ | 1,000,000 | | Interest rate swap | | September 2028 Notes | | 5.450 | % | SOFR +1.7465% | | September 9, 2028 | | $ | 600,000 | | Interest rate swap | | January 2029 Notes | | 4.850 | % | SOFR +1.6220% | | January 15, 2029 | | $ | 600,000 | | Interest rate swap | | August 2029 Notes | | 6.350 | % | SOFR +2.2080% | | August 15, 2029 | | $ | 700,000 | | Interest rate swap | | February 2030 Notes | | 5.600 | % | SOFR +2.3020% | | February 15, 2030 | | $ | 750,000 | | Interest rate swap | | September 2030 Notes | | 5.800 | % | SOFR +2.0490% | | September 9, 2030 | | $ | 500,000 | | Interest rate swap(1) | | January 2031 Notes | | 5.150 | % | SOFR +1.9460% | | January 15, 2031 | | $ | 500,000 | | Interest rate swap | | March 2032 Notes | | 6.200 | % | SOFR +1.8290% | | March 21, 2032 | | $ | 750,000 | |
| (1) | In connection with the issuance of the January 2031 Notes, the Fund entered into a forward-starting interest rate swap, with an effective date of July 15, 2026. |
See Note 5 for more information on the Unsecured Notes. As a result of the Fund’s designation of the interest rate swaps as hedging instruments in qualifying fair value hedge accounting relationships, the Fund is required to fair value the hedging instruments and the related hedged items, with the changes in the fair value of each being recorded in interest expense. The net gain related to the fair value hedges was approximately $1,532 for the year ended December 31, 2025 compared to a net loss of approximately $278 for the comparable period in 2024, which is included in “interest and credit facility fees” in the Fund’s consolidated statements of operations. The balance sheet impact of fair valuing the interest rate swaps as of December 31, 2025 and 2024 is presented below: | | As of December 31, 2025 | Derivative Instrument | | Notional
Amount | | Maturity Date | | Gross Amount
of Recognized
Assets | | Gross Amount
of Recognized
Liabilities | | Balance Sheet
Location of Net Amounts | Interest rate swap(1) | | $ | 1,000,000 | | March 15, 2028 | | $ | 14,461 | | $ | — | | Other assets | Interest rate swap(2) | | $ | 600,000 | | September 9, 2028 | | | 4,677 | | | — | | Other assets | Interest rate swap(3) | | $ | 600,000 | | January 15, 2029 | | | — | | | (3,021) | | Accounts payable and
other liabilities | Interest rate swap(4) | | $ | 700,000 | | August 15, 2029 | | | 16,585 | | | — | | Other assets | Interest rate swap(5) | | $ | 750,000 | | February 15, 2030 | | | — | | | (5,199) | | Accounts payable and
other liabilities | Interest rate swap(6) | | $ | 500,000 | | September 9, 2030 | | | 5,239 | | | — | | Other assets | Interest rate swap(7) | | $ | 500,000 | | January 15, 2031 | | | — | | | (6,380) | | Accounts payable and
other liabilities | Interest rate swap(8) | | $ | 750,000 | | March 21, 2032 | | | 31,646 | | | — | | Other assets | Total | | | | | | | $ | 72,608 | | $ | (14,600) | | |
| (1) | The asset related to the fair value of the interest rate swaps was offset by a $14,012 increase to the carrying value of the March 2028 Notes. |
| (2) | The asset related to the fair value of the interest rate swap was offset by a $4,645 increase to the carrying value of the September 2028 Notes. |
| (3) | The liability related to the fair value of the interest rate swap was offset by a $2,974 decrease to the carrying value of the January 2029 Notes. |
| (4) | The asset related to the fair value of the interest rate swap was offset by a $16,424 increase to the carrying value of the August 2029 Notes. |
| (5) | The liability related to the fair value of the interest rate swap was offset by a $5,086 decrease to the carrying value of the February 2030 Notes. |
| (6) | The asset related to the fair value of the interest rate swap was offset by a $5,205 increase to the carrying value of the September 2030 Notes. |
| (7) | The liability related to the fair value of the interest rate swap was offset by a $6,294 decrease to the carrying value of the January 2031 Notes. |
| (8) | The asset related to the fair value of the interest rate swap was offset by a $31,064 increase to the carrying value of the March 2032 Notes. |
| | As of December 31, 2024 | Derivative Instrument | | Notional
Amount | | Maturity Date | | Gross Amount
of Recognized
Assets | | Gross Amount
of Recognized
Liabilities | | Balance Sheet
Location of Net Amounts | Interest rate swap(1) | | $ | 1,000,000 | | March 15, 2028 | | $ | — | | $ | (1,505) | | Accounts payable and
other liabilities | Interest rate swap(2) | | $ | 700,000 | | August 15, 2029 | | | 926 | | | — | | Other assets | Interest rate swap(3) | | $ | 750,000 | | February 15, 2030 | | | — | | | (28,019) | | Accounts payable and
other liabilities | Total | | | | | | | $ | 926 | | $ | (29,524) | | |
| (1) | The liability related to the fair value of the interest rate swaps was offset by a $1,532 decrease to the carrying value of the March 2028 Notes. |
| (2) | The asset related to the fair value of the interest rate swap was offset by a $960 increase to the carrying value of the August 2029 Notes. |
| (3) | The liability related to the fair value of the interest rate swap was offset by a $27,748 decrease to the carrying value of the February 2030 Notes. |
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