The
table
below
shows
the
significant
unobservable
valuation
inputs
that
were
used
by
the
Adviser to
fair
value
the
Level
3
investments
as
of
March
31,
2025.
The
following
is
a
reconciliation
of
the
assets
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
fair
value:
4.
BORROWINGS
Credit
facility
:
The
Predecessor
Fund
established
a
line
of
credit on
April
19,
2023.
This
facility
was
transferred
to
the
Fund
as
part
of
the
Reorganization
that
occurred
on
October
31,
2023
and
was
subsequently
amended
on
November
21,
2024.
The
Fund
pays
interest
in
the
amount
of
the
Secured
Overnight
Financing
Rate
("SOFR")
plus
an
applicable
margin
on
the
amount
borrowed
and
incurs
commitment
fees
on
the
unused
portion.
During
the three
months
ended
March
31,2025,
the
Fund
incurred
commitment
fees
of
$546,000 and
amortized $950,000
in
deferred
financing
costs.
As
of
March
31,
2025,
the
Fund
had $4,924,000
in
unamortized
deferred
financing
costs. The
remaining
portion
is
being
amortized
over
the
life
of
the
agreement
which
matures
on November
20,
2026.
Quantitative
Information
about
Level
3
Fair
Value
Measurements
Value
as
of
March
31,
2025
Valuation
Approach
Valuation
Technique
Unobservable
Input
Amount
or
Range/
(Weighted
Average)
Impact
to
Valuation
from
an
Increase
in
Input
(1)
US$
THOUSANDS
Private
equity
Investments
$2,331,417
Income
Approach
Discounted
cash
flow
model
Discount
Rate
7%
to
20%
(11%)
Decrease
Terminal
Value
Multiple
4x
to
26x
(15x)
Increase
Private
debt
Investments
$443,528
Income
Approach
Discounted
cash
flow
model
Discount
Rate
8%
to
12%
(9%)
Decrease
(1)
The
impact
represents
the
expected
directional
change
in
the
fair
value
of
Level
3
investments
that
would
result
from
an
increase
in
the
corresponding
input.
A
decrease
to
the
unobservable
input
would
have
the
opposite
effect.
Significant
changes
in
these
inputs
could
result
in
significantly
higher
or
lower
fair
value
measurements.
Private
Equity
Private
Debt
Total
US$
THOUSANDS
Balance
as
of
December
31,
2024
$
2,281,116
$
363,880
$
2,644,996
Purchases
of
investments
................................
74,400
83,077
157,477
Return
of
capital
.......................................
(93,977)
(830)
(94,807)
Sales
proceeds
........................................
—
—
—
Accrued
discounts
(premiums)
............................
—
—
—
Realized
gain
(loss)
.....................................
—
—
—
Net
change
in
unrealized
gain
............................
69,878
(2,599)
67,279
Balance
as
of
March
31,
2025
............................
$
2,331,417
$
443,528
$
2,774,945
Change
in
unrealized
gain
for
Level
3
assets
still
held
at
the
reporting
date
.........................................
$
69,878
$
(2,599)
$
67,279