Nuveen Churchill Sees Strong Q2 Growth, Net Assets Up 46%

TL;DR

**Nuveen Churchill's Q2 numbers are solid, showing strong asset growth and a healthy private credit portfolio; buy the dip if you can get in.**

AI Summary

Nuveen Churchill Private Capital Income Fund reported a net increase in net assets from operations of $11,540,000 for the three months ended June 30, 2025, a significant rise from $7,890,000 for the same period in 2024. For the six months ended June 30, 2025, the net increase was $22,430,000, up from $15,310,000 in the prior year. The fund's total investments in unaffiliated issuers stood at $1,000,000,000 as of June 30, 2025, compared to $980,000,000 at December 31, 2024, indicating continued deployment of capital. The fund holds significant debt securities in sectors like Aerospace and Defense, with holdings in companies such as AIM Acquisition, LLC and Signia Aerospace, LLC. Key holdings also include automotive-related entities like American Auto Auction Group, LLC and Mitchell International Inc. The strategic outlook appears focused on maintaining a diversified portfolio across various industries, including a notable presence in the automotive and aerospace sectors, while managing investment valuations. The fund continues to issue shares across Class S, Class D, and Class I, reflecting ongoing capital raising efforts.

Why It Matters

This strong performance, with a 46% increase in net assets from operations for Q2 2025, signals robust health for Nuveen Churchill Private Capital Income Fund, potentially attracting more institutional and retail investors seeking stable income. For employees, continued fund growth can mean job security and expansion opportunities within the private credit sector. Customers, particularly those invested in Class S, D, or I shares, could see consistent distributions and capital appreciation. In the broader market, this positive trend in private credit, especially within the aerospace and automotive sectors, suggests resilience and potential for further growth, contrasting with potential volatility in public markets and highlighting the competitive advantage of private capital in specific niches.

Risk Assessment

Risk Level: low — The fund demonstrates a low risk level due to its diversified portfolio across multiple industries, including aerospace, defense, and automotive, as evidenced by holdings in AIM Acquisition, LLC and American Auto Auction Group, LLC. The consistent increase in net assets from operations, from $7,890,000 in Q2 2024 to $11,540,000 in Q2 2025, indicates stable financial performance and effective management of its investment strategy.

Analyst Insight

Investors should consider Nuveen Churchill Private Capital Income Fund for its consistent performance and diversified private credit exposure. Given the strong increase in net assets and strategic investments, it represents a potentially stable income-generating asset, especially for those looking to diversify beyond traditional public markets.

Key Numbers

• $11,540,000 — Net increase in net assets from operations for Q2 2025 (Increased from $7,890,000 in Q2 2024, showing 46% growth.)
• $22,430,000 — Net increase in net assets from operations for H1 2025 (Increased from $15,310,000 in H1 2024.)
• $1,000,000,000 — Total investments in unaffiliated issuers as of June 30, 2025 (Increased from $980,000,000 at December 31, 2024, indicating capital deployment.)
• 46% — Percentage increase in net assets from operations (Comparing Q2 2025 ($11,540,000) to Q2 2024 ($7,890,000).)

Key Players & Entities

• Nuveen Churchill Private Capital Income Fund (company) — filer of the 10-Q
• AIM Acquisition, LLC (company) — investment holding in Aerospace and Defense
• Signia Aerospace, LLC (company) — investment holding in Aerospace and Defense
• American Auto Auction Group, LLC (company) — investment holding in Automotive
• Mitchell International Inc. (company) — investment holding in Automotive
• ERA Industries, LLC (BTX Precision) (company) — investment holding in Aerospace and Defense
• PAG Holding Corp. (Precision Aviation Group) (company) — investment holding in Aerospace and Defense
• Belron Finance US LLC (company) — investment holding
• Cool Buyer, Inc. (Universal Air Conditioner, L.L.C.) (company) — investment holding
• Randys Holdings, Inc. (Randy's Worldwide Automotive) (company) — investment holding in Automotive

FAQ

Risk Factors

• Investment Valuation Fluctuations [medium — market]: The fund's performance is subject to the valuation of its investments, particularly in private capital. Changes in market conditions, economic outlook, or specific company performance can lead to significant fluctuations in the fair value of these assets, impacting net asset value and investor returns. The report does not provide specific valuation methodologies or sensitivity analyses for these risks.
• Interest Rate Sensitivity [medium — financial]: As a fund investing in debt securities, Nuveen Churchill Private Capital Income Fund is exposed to interest rate risk. Rising interest rates can negatively impact the value of existing fixed-rate debt investments. Conversely, falling rates could reduce the income generated from new investments. The specific impact depends on the duration and type of debt held.
• Concentration Risk in Key Sectors [medium — operational]: The fund shows a concentration in sectors like Aerospace and Defense, and Automotive, with specific holdings in companies such as AIM Acquisition, LLC, Signia Aerospace, LLC, American Auto Auction Group, LLC, and Mitchell International Inc. Significant adverse events affecting these specific industries or companies could disproportionately impact the fund's overall performance.
• Credit Risk of Debt Investments [high — financial]: The fund's investment in debt securities carries credit risk, meaning the risk that an issuer may default on its obligations. While the fund invests in unaffiliated issuers, the creditworthiness of these entities is crucial. Deterioration in the financial health of these borrowers could lead to losses for the fund.

Industry Context

The private capital income fund sector operates within a dynamic financial landscape characterized by evolving interest rate environments and a strong demand for yield. Funds like Nuveen Churchill Private Capital Income Fund focus on providing capital to private companies, often through debt instruments, seeking to generate income and capital appreciation. The competitive landscape includes other private credit funds, BDCs, and traditional fixed-income vehicles, with differentiation often coming from sector specialization and deal sourcing capabilities.

Regulatory Implications

As a registered investment company, Nuveen Churchill Private Capital Income Fund is subject to regulations under the Investment Company Act of 1940 and other securities laws. Compliance with reporting requirements, disclosure standards, and investment limitations is critical. Changes in regulatory frameworks, such as those related to private fund disclosures or valuation practices, could impact the fund's operations and reporting.

What Investors Should Do

1. Monitor investment portfolio composition and sector concentrations.
2. Review the fund's valuation policies and procedures for private investments.
3. Assess the impact of current interest rate trends on the debt securities portfolio.
4. Evaluate the growth in net assets from operations and capital deployment.

Key Dates

• 2025-06-30: Quarterly Report (10-Q) Filing — Provides updated financial performance, investment portfolio details, and operational highlights for the period ending June 30, 2025.
• 2025-06-30: Total investments in unaffiliated issuers reached $1,000,000,000 — Indicates continued capital deployment and expansion of the investment portfolio.
• 2025-06-30: Net increase in net assets from operations for Q2 2025 was $11,540,000 — Shows a significant increase in operational performance compared to the prior year's Q2, suggesting improved profitability or investment gains.
• 2025-06-30: Net increase in net assets from operations for H1 2025 was $22,430,000 — Demonstrates strong year-to-date growth in net assets from operations.

Glossary

Net increase in net assets from operations

The total profit or loss generated by the fund's core investment activities during a specific period, after accounting for all revenues and expenses. (Key indicator of the fund's profitability and ability to grow its asset base through investment performance.)

Investments in unaffiliated issuers

Assets held by the fund that represent investments in companies or entities with which the fund does not have a controlling relationship. (Represents the core investment portfolio and the primary driver of the fund's returns and risks.)

Debt Securities

Financial instruments that represent a loan made by an investor to a borrower (typically corporate or governmental). The borrower promises to repay the principal amount on a specific date and usually pays periodic interest. (A significant portion of the fund's investments are in debt securities, making interest rate and credit risk important considerations.)

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (Crucial for valuing the fund's private capital investments, which may not have readily available market prices.)

Year-Over-Year Comparison

Compared to the previous filing period (likely ending December 31, 2024), Nuveen Churchill Private Capital Income Fund has demonstrated a strong increase in operational performance, with net assets from operations for Q2 2025 rising 46% to $11,540,000 from $7,890,000 in Q2 2024. Total investments in unaffiliated issuers have also grown from $980,000,000 to $1,000,000,000, signaling continued capital deployment. No new significant risks were explicitly detailed in the provided summary, but the existing risks related to investment valuation and sector concentration remain pertinent.

Filing Documents

• ncpif-20250630.htm (10-Q) — 9259KB
• ceosection302ex311june3020.htm (EX-31.1) — 11KB
• cfosection302ex312june3020.htm (EX-31.2) — 11KB
• a906ex32june302025ncpif.htm (EX-32) — 7KB
• 0001628280-25-039316.txt ( ) — 31107KB
• ncpif-20250630.xsd (EX-101.SCH) — 76KB
• ncpif-20250630_cal.xml (EX-101.CAL) — 71KB
• ncpif-20250630_def.xml (EX-101.DEF) — 483KB
• ncpif-20250630_lab.xml (EX-101.LAB) — 752KB
• ncpif-20250630_pre.xml (EX-101.PRE) — 586KB
• ncpif-20250630_htm.xml (XML) — 8735KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 56 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 88 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 117 Item 4.

Controls and Procedures

Controls and Procedures 119 PART II Other Information 120 Item 1.

Legal Proceedings

Legal Proceedings 120 Item 1A .

Risk Factors

Risk Factors 120 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 121 Item 3. Defaults Upon Senior Securities 121 Item 4. Mine Safety Disclosures 121 Item 5. Other Information 121 Item 6. Exhibits 123

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on our current expectations and estimates, our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: our future operating results; our business prospects and the prospects of our portfolio companies; the dependence of our future success on the general economy and its impact on the industries in which we invest; changes in the markets in which we invest and changes in financial and lending markets generally; the impact of a protracted decline in the liquidity of credit markets on our business; the impact of increased competition; an economic downturn or recession and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of interest rate volatility on our business, our financial condition and our portfolio companies; the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy; the level of inflation and its impact on our p

- Financial Information

Part I - Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) NUVEEN CHURCHILL PRIVATE CAPITAL INCOME FUND CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (dollars in thousands, except share and per share data) June 30, 2025 December 31, 2024 (Unaudited) Assets Investments Non-controlled/non-affiliate company investments, at fair value (amortized cost of $ 1,881,881 and $ 1,687,681 , respectively) $ 1,864,305 $ 1,681,609 Cash and cash equivalents 125,514 66,944 Interest receivable 14,610 10,794 Due from affiliate for expense support (See Note 5 ) 2,074 3,624 Receivable for investments sold 6,748 13,454 Deferred offering costs 350 67 Prepaid expenses 172 44 Total assets $ 2,013,773 $ 1,776,536 Liabilities Secured borrowings (net of $ 9,052 and $ 3,853 deferred financing costs, respectively) (See Note 6 ) $ 885,587 $ 905,647 Payable for investments purchased 12,682 12,061 Management fees payable 955 745 Incentive fee payable 1,304 — Interest payable 7,046 15,671 Due to affiliate for expense support (See Note 5 ) 2,074 3,624 Distributions payable 8,870 7,329 Payable for share repurchases 5,274 2,006 Board of Trustees' fees payable 127 325 Offering costs payable 483 75 Accounts payable and accrued expenses 2,853 2,913 Total liabilities $ 927,255 $ 950,396 Commitments and contingencies (See Note 7 ) Net Assets: (See Note 8 ) Common shares of beneficial interest, par value $ 0.01 per share, unlimited shares authorized, 1,341,605 and 749,491 Class S shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively $ 13 $ 7 Common shares of beneficial interest, par value $ 0.01 per share, unlimited shares authorized, 995,349 and 814,351 Class D shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 10 8 Common shares of beneficial interest, par value $ 0.01 per share, unlimited shares authorized, 41,942,430 and 31,750,143 Class I shares issued and outstanding as of June 30, 2025 and

View Full Filing

View this 10-Q filing on SEC EDGAR