Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 186

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 186
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 as repurchase agreements and U.S. Treasury bills.  These securities may be priced at cost, which approximates fair value due to the short-term nature of the instruments.  These securities are classified as Level 2.  Active market pricing may be utilized for U.S. Treasury bills, which are classified as Level 1.  Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers.  These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years.  The investment period is generally, at a minimum, 10 years or longer.  The NDT had unfunded commitments related to private equity limited partnerships of $368 million, private real assets of $128 million, and private credit of $119 million at June 30, 2025.  The ART had unfunded commitments related to limited partnerships in private equity of $143 million, private real assets of $77 million, and private credit of $58 million at June 30, 2025.  These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments.  There are no readily available quoted exchange prices for these investments.  The fair value of these investments is based on information provided by the investment managers.  These investments are valued on a quarterly basis.  Private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset value ("NAV") as a practical expedient for fair value.  TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.Commingled funds represent investment funds comprising multiple individual financial instruments.  The commingled funds held by the NDT, ART, SERP, DCP, and RP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities.  All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments.  The fair value of commingled funds is based on NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds.  These commingled funds can be redeemed at the measurement date NAV