Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 284

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 284
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.  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, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations.  Venture capital partnerships consist of two main groupings.  Early-stage venture capital partnerships invest in businesses still in the conceptual stage where products may not be fully developed and where revenues and/or profits may be several years away.  Later-stage venture capital partnerships invest in more mature companies in need of growth or expansion capital.  Buyout partnerships provide the equity capital for acquisition transactions either from a private seller or the public, which may represent the purchase of the entire company or a refinancing or recapitalization transaction where equity is invested.  Mezzanine or subordinated debt partnerships 

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provide the intermediate capital between equity and senior debt in a buyout or refinancing transaction and typically own a security in the company that carries current interest payments as well as a potential equity interest in the company.  Restructuring or distressed debt partnerships purchase opportunities generated by overleveraged or poorly managed companies.  Special situation partnerships include organizations with a specific industry focus not covered by the other private equity subclasses or unique opportunities that fall outside the