Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 459

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 459
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The pension plan's investments in equity and debt commingled funds can generally be redeemed upon notification of the investment managers, with required notice periods varying from same-day to monthly.  These investments do not have unfunded commitments. 

    Institutional Mutual Funds.  Investments in institutional mutual funds are valued at prices based on their NAV.  Institutional mutual funds have daily published market prices that represent their NAV (or unit value) per share and are classified as Level 1.

    Cash Equivalents and Other Short-Term Investments and Certificates of Deposit.  Cash equivalents and other short-term investments are highly liquid securities with maturities of less than three months and 12 months, respectively.  These consist primarily of discount securities such as commercial paper, repurchase agreements, U.S. Treasury bills, and certain agency securities.  These securities, as well as certificates of deposit, may be priced at cost, which approximates fair value due to the short-term nature of the instruments.  Model based pricing which incorporates observable inputs may also be utilized.  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 Credit Funds.  Private credit limited partnerships are reported at NAVs provided by the fund managers.  These funds have not been classified in the fair value hierarchy in accordance with FASB guidance issued in May 2015. 

    The private credit limited partnerships invest across direct lending, opportunistic credit, and distressed debt strategies.  The limited partnerships generally make investments of senior secured first-lien loans, second-lien secured loans, asset-based loans, risk transfer loans, specialty finance loans, unitranche loans, and distressed debt opportunities to middle market private companies.  The limited partnerships generally seek to obtain financial returns through high income potential and occasional equity upside.  The limited partnerships generally have a term life of five to eight years and are diversified by sector and industry.  

    Private Equity Funds.  Private equity limited partnerships are reported at NAVs provided by the fund managers.  These funds have not been classified in the fair value hierarchy in accordance with FASB guidance issued in May 2015. 

    The private equity limited partnerships typically make longer-term investments in private companies and seek to obtain financial returns through long-term appreciation based on corporate stewardship, improved operating processes, and financial restructuring which may involve a merger or acquisition.  Significant investment strategies include venture capital,