Quarterly report [Sections 13 or 15(d)]

Commitments and Contingencies

v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The Company’s commitments and contingencies consist primarily of unfunded commitments to extend credit in the form of loans to the Company’s portfolio companies. As of June 30, 2025, a portion of these unfunded contractual commitments are dependent upon the portfolio company reaching certain milestones before the debt commitment becomes available. Furthermore, the Company’s credit agreements with its portfolio companies generally contain customary lending provisions which allow the Company relief from funding obligations for previously made unfunded commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the portfolio company. Since a portion of these commitments may expire without being drawn, unfunded contractual commitments do not necessarily represent future cash requirements. As such, the Company’s disclosure of unfunded contractual commitments includes only those which are available at the request of the portfolio company and unencumbered by future or unachieved milestones.
As of June 30, 2025 and December 31, 2024, the Company had approximately $471.5 million and $448.5 million, respectively, of available unfunded commitments, including undrawn revolving facilities, which were available at the request of the portfolio company and unencumbered by future or unachieved milestones. In order to draw a portion of the Company's available unfunded commitments, a portfolio company must submit to the Company a formal funding request that complies with the applicable advance notice and other operational requirements. The amounts disclosed exclude unfunded commitments (i) for which, with respect to a portfolio company's agreement, a milestone was achieved after the
last day on which the portfolio company could have requested a drawdown funding to be completed within the reporting period; and (ii) related to the portion of portfolio company investments assigned to or directly committed by the Adviser Funds as described in “Note -12 Related Party Transactions”. The fair value of the Company’s unfunded commitments is considered to be immaterial as the yield determined at the time of underwriting is expected to be materially consistent with the yield upon funding, given that interest rates are generally pegged to market indices and given the existence of milestones, conditions and/or obligations embedded in the borrowing agreements.
As of June 30, 2025 and December 31, 2024, the Company’s unfunded contractual commitments available at the request of the portfolio company, including undrawn revolving facilities, and unencumbered by milestones were as follows:
(in thousands)
Unfunded Commitments (1) as of
Portfolio Company June 30, 2025 December 31, 2024
Debt Investments:
Earnix, Inc. $ 41,250  $ 41,250 
Harness, Inc. 40,425  11,550 
Arcus Biosciences, Inc. 37,500  37,500 
Thumbtack, Inc. 30,000  30,000 
ChenMed, LLC 25,000  — 
Disc Medicine, Inc. 22,500  22,500 
Saronic Technologies, Inc. 21,250  — 
Pindrop Security, Inc. 19,375  19,375 
GoEuro Travel GmbH 18,750  26,250 
Akero Therapeutics, Inc. 17,500  15,000 
Coronet Cyber Security Ltd. 17,000  17,000 
Locus Robotics Corp. 16,250  16,250 
Aryaka Networks, Inc. 12,500  12,500 
Weee! Inc. 12,500  — 
Alector, Inc. 10,500  10,500 
iSpot.tv, Inc. 9,750  — 
Marathon Health, LLC 9,620  24,250 
DocPlanner 9,538  — 
CoreView USA, Inc. 9,000  10,000 
Heron Therapeutics, Inc. 8,000  8,000 
PayIt, LLC 8,000  8,000 
ZeroEyes, Inc. 6,000  — 
Distributed Creation Inc. 5,000  — 
Smartsheet Inc. 4,840  — 
Ennoble Care LLC 4,500  — 
AlphaSense, Inc. 4,000  4,000 
WellBe Senior Medical, LLC 4,000  12,000 
Saama Technologies, LLC 3,875  3,875 
Allvue Systems, LLC 3,590  3,590 
LogRhythm, Inc. 3,143  3,143 
Loftware, Inc. 2,846  2,277 
Zappi, Inc. 2,571  2,571 
Carbyne, Inc. 2,550  — 
New Relic, Inc. 2,176  2,176 
Streamline Healthcare Solutions 2,100  2,200 
Babel Street 2,091  4,367 
Kaseware, Inc. 2,000  — 
Sumo Logic, Inc. 2,000  2,000 
Altumint, Inc. 1,500  — 
TaxCalc 1,477  1,166 
Behavox Limited 1,400  — 
LogicSource 1,209  1,209 
Zimperium, Inc. 1,087  196 
(in thousands)
Unfunded Commitments (1) as of
Portfolio Company June 30, 2025 December 31, 2024
Debt Investments:
LinenMaster, LLC $ 1,000  $ 1,000 
Dispatch Technologies, Inc. 937  563 
Alchemer LLC 890  — 
Main Street Rural, Inc. 874  874 
Fortified Health Security 840  840 
Ushur, Inc. 800  — 
DroneDeploy, Inc. 625  625 
Annex Cloud 600  — 
Omeda Holdings, LLC 497  731 
ShadowDragon, LLC 333  333 
NorthSea Therapeutics 100  — 
Armis, Inc. —  25,000 
Dragos, Inc. —  13,000 
Strive Health Holdings, LLC —  8,299 
Suzy, Inc. —  8,000 
Viridian Therapeutics, Inc. —  8,000 
Curana Health Holdings, LLC —  7,500 
ATAI Life Sciences N.V. —  7,000 
Dashlane, Inc. —  5,000 
Ceros, Inc. —  1,707 
3GTMS, LLC —  886 
Flight Schedule Pro, LLC —  646 
Total Unfunded Debt Commitments: 467,659  444,699 
Investment Funds & Vehicles:(2)
   
Forbion Growth Opportunities Fund I C.V. 1,757  1,757 
Forbion Growth Opportunities Fund II C.V. 2,072  2,072 
Total Unfunded Commitments in Investment Funds & Vehicles: 3,829  3,829 
Total Unfunded Commitments $ 471,488  $ 448,528 
(1)For debt investments, amounts represent unfunded commitments, including undrawn revolving facilities, which are available at the request of the portfolio company. Amount excludes unfunded commitments which are unavailable due to the borrower having not met certain milestones. These amounts also exclude $129.7 million and $139.7 million of unfunded commitments as of June 30, 2025 and December 31, 2024, respectively, to portfolio companies related to loans assigned to or directly committed by the Adviser Funds as described in “Note 12 - Related Party Transactions”.
(2)For investment funds and vehicles, the amount represents uncalled capital commitments in private equity funds.
The following table provides additional information on the Company’s unencumbered unfunded commitments regarding milestones, expirations and type:
(in thousands)
Unfunded Commitments
June 30, 2025 December 31, 2024
Expiring during:
2025 $ 108,849  $ 251,941 
2026 258,777  147,840 
2027 32,095  10,553 
2028 5,673  6,040 
2029 24,149  24,149 
2030 33,276  4,176 
2031 4,840  — 
Total Unfunded Debt Commitments 467,659  444,699 
Unfunded Commitments in Investment Funds & Vehicles:    
Expiring during:    
2030 1,757  1,757 
2032 2,072  2,072 
Total Unfunded Commitments in Investment Funds & Vehicles 3,829  3,829 
Total Unfunded Commitments $ 471,488  $ 448,528 
The following tables provide the Company’s contractual obligations as of June 30, 2025 and December 31, 2024:
As of June 30, 2025: Payments due by period (in thousands)
Contractual Obligations(1)
Total Less than 1 year 1 - 3 years 3 - 5 years After 5 years
Debt(2)(3)
$ 2,095,220  $ 100,000  $ 675,000  $ 818,635  $ 501,585 
Lease and License Obligations(4)
22,049  3,280  6,056  5,647  7,066 
Total $ 2,117,269  $ 103,280  $ 681,056  $ 824,282  $ 508,651 
 
As of December 31, 2024: Payments due by period (in thousands)
Contractual Obligations(1)
Total Less than 1 year 1 - 3 years 3 - 5 years After 5 years
Debt(5)(3)
$ 1,783,265  $ 170,000  $ 891,000  $ 283,790  $ 438,475 
Lease and License Obligations(4)
23,976  3,246  6,640  5,589  8,501 
Total $ 1,807,241  $ 173,246  $ 897,640  $ 289,379  $ 446,976 
(1)Excludes commitments to extend credit to the Company’s portfolio companies and uncalled capital commitments in investment funds.
(2)Includes $350.0 million in principal outstanding under the SBA Debentures, $50.0 million of the March 2026 A Notes, $50.0 million of the March 2026 B Notes, $350.0 million of the June 2030 Notes, $111.6 million of the 2031 Asset-Backed Notes, $40.0 million of the 2033 Notes, $325.0 million of the September 2026 Notes, $350.0 million of the January 2027 Notes and $287.5 million of the 2028 Convertible Notes as of June 30, 2025. There was also $115.1 million outstanding under the SMBC Facility and $66.0 million outstanding under the MUFG Bank Facility as of June 30, 2025.
(3)Amounts represent future principal repayments and not the carrying value of each liability. See “Note 5 – Debt”.
(4)Leases and license obligations includes contractual amounts related to short-term leases.
(5)Includes $279.0 million in principal outstanding under the SBA Debentures, $50.0 million of the February 2025 Notes, $70.0 million of the June 2025 Notes, $50.0 million of the June 2025 3-Year Notes, $50.0 million of the March 2026 A Notes, $50.0 million of the March 2026 B Notes, $119.5 million of the 2031 Asset-Backed Notes, $40.0 million of the 2033 Notes, $325.0 million of the September 2026 Notes and $350.0 million of the January 2027 Notes as of December 31, 2024. There was also $283.8 million outstanding under the SMBC Facility and $116.0 million outstanding under the MUFG Bank Facility as of December 31, 2024.
Certain premises are leased or licensed under agreements which expire at various dates through July 2034. During the three months ended June 30, 2025 and 2024, total rent expense, including short-term leases, amounted to approximately $0.9 million and $0.9 million in each period, respectively. During the six months ended June 30, 2025 and 2024, total rent expense, including short-term leases, amounted to approximately $1.7 million and $1.9 million in each period, respectively. The Company recognizes an operating lease liability and a ROU asset for all leases, with the exception of short-term leases. The lease payments on short-term leases are recognized as rent expense on a straight-line basis. The discount rate applied to measure each ROU asset and lease liability is based on the Company’s incremental weighted average cost of debt. The Company considers the general economic environment and its credit rating and factors in various financing and asset specific adjustments to ensure the discount rate applied is appropriate to the intended use of the underlying lease. While some of the leases contained options to extend and terminate, it is not reasonably certain that either option will be utilized and therefore, only the payments in the initial term of the leases were included in the lease liability and ROU asset.
The following tables set forth information related to the measurement of the Company’s operating lease liabilities and supplemental cash flow information related to operating leases for the three and six months ended June 30, 2025 and 2024:
(in thousands) Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Total operating lease cost $ 774  $ 796  $ 1,548  $ 1,329 
Cash paid for amounts included in the measurement of lease liabilities $ 1,291  $ 775  $ 1,886  $ 897 
  As of June 30, 2025 As of December 31, 2024
Weighted-average remaining lease term (in years) 7.44 7.81
Weighted-average discount rate 6.92  % 6.85  %
The following table shows future minimum lease payments under the Company’s operating leases and a reconciliation to the operating lease liability as of June 30, 2025:
(in thousands) As of June 30, 2025
2025 $ 1,202 
2026 3,179 
2027 3,452 
2028 2,766 
Thereafter 11,324 
Total lease payments 21,923 
Less: imputed interest & other items (5,026)
Total operating lease liability $ 16,897 
The Company may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on the Company in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, the Company does not expect any current matters will materially affect the Company’s financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on the Company’s financial condition or results of operations in any future reporting period.