LGAM Private Credit Boosts Assets & Income, NAV Dips Slightly

TL;DR

**LGAM Private Credit is growing fast, but watch out for that NAV dip and rising debt – it's a mixed bag for now.**

AI Summary

LGAM Private Credit LLC reported a significant increase in total assets to $307.66 million as of June 30, 2025, up from $253.68 million at December 31, 2024, primarily driven by a rise in total investments at fair value to $294.07 million from $241.84 million. The company's total investment income for the six months ended June 30, 2025, surged to $13.38 million, a substantial increase from $7.44 million in the same period of 2024. Net investment income also rose to $6.24 million for the six months ended June 30, 2025, compared to $5.15 million in the prior year. However, net increase in members' capital resulting from operations slightly decreased to $5.37 million from $5.68 million, impacted by a net realized loss on investments of $0.76 million in 2025 versus a $0.003 million gain in 2024. Debt increased to $140.60 million from $105.60 million, reflecting increased leverage. The net asset value per unit slightly declined to $20.07 from $20.29 at year-end 2024.

Why It Matters

For investors, LGAM Private Credit's significant asset growth and increased investment income signal robust portfolio expansion and revenue generation in the private credit market. The rise in debt to $140.60 million, however, indicates increased leverage, which could amplify returns but also heighten risk. The slight dip in Net Asset Value per unit from $20.29 to $20.07, despite higher income, suggests potential valuation pressures or increased unit dilution. In a competitive private credit landscape, LGAM's ability to scale its investment portfolio is crucial for long-term investor value, but the realized losses warrant closer scrutiny.

Risk Assessment

Risk Level: medium — The risk level is medium due to increased leverage, with debt rising from $105.60 million to $140.60 million, and a net realized loss on investments of $0.76 million for the six months ended June 30, 2025. While investment income is up, the slight decline in Net Asset Value per unit from $20.29 to $20.07 indicates potential underlying valuation concerns.

Analyst Insight

Investors should monitor LGAM Private Credit's future filings for trends in net asset value per unit and the composition of its investment portfolio, particularly any further realized losses. Evaluate the impact of rising interest rates on its debt obligations and the performance of its underlying private credit investments.

Financial Highlights

debt To Equity

1.00

revenue

$13.38M

operating Margin

46.65%

total Assets

$307.66M

total Debt

$140.60M

net Income

$5.37M

eps

$0.61

revenue Growth

+79.8%

Revenue Breakdown

Key Numbers

• $307.66M — Total Assets (Increased from $253.68M at Dec 31, 2024, indicating portfolio growth.)
• $13.38M — Total Investment Income (Up from $7.44M in H1 2024, showing strong revenue generation.)
• $6.24M — Net Investment Income (Increased from $5.15M in H1 2024, reflecting improved profitability from investments.)
• $140.60M — Debt (Increased from $105.60M at Dec 31, 2024, indicating higher leverage.)
• $20.07 — Net Asset Value per Unit (Slightly decreased from $20.29 at Dec 31, 2024.)
• $0.76M — Net Realized Loss on Investments (Compared to a $0.003M gain in H1 2024, impacting members' capital.)
• 8,862,400 — Common Units Outstanding (As of August 12, 2025, reflecting capital raises.)
• $20.47M — Issuance of Common Units (For the six months ended June 30, 2025, contributing to capital.)

Key Players & Entities

• LGAM Private Credit LLC (company) — registrant
• $307.66 million (dollar_amount) — total assets as of June 30, 2025
• $253.68 million (dollar_amount) — total assets as of December 31, 2024
• $294.07 million (dollar_amount) — total investments at fair value as of June 30, 2025
• $241.84 million (dollar_amount) — total investments at fair value as of December 31, 2024
• $13.38 million (dollar_amount) — total investment income for six months ended June 30, 2025
• $7.44 million (dollar_amount) — total investment income for six months ended June 30, 2024
• $6.24 million (dollar_amount) — net investment income for six months ended June 30, 2025
• $5.15 million (dollar_amount) — net investment income for six months ended June 30, 2024
• $140.60 million (dollar_amount) — debt as of June 30, 2025

FAQ

Risk Factors

• Valuation of Investments [medium — financial]: The fair value of investments is determined by management, which involves significant judgment. A decrease in fair value of $0.76 million was realized in H1 2025, impacting net income. Fluctuations in market conditions can materially affect the valuation of these illiquid assets.
• Leverage and Debt [high — financial]: Total debt increased to $140.60 million from $105.60 million, indicating a higher reliance on borrowed funds. Increased leverage amplifies both potential gains and losses, making the company more sensitive to interest rate changes and market downturns.
• Interest Rate Sensitivity [medium — market]: As a private credit fund, the company's performance is sensitive to interest rate fluctuations. Rising interest rates could increase borrowing costs and potentially impact the value of its fixed-income investments.
• Reliance on Key Personnel [low — operational]: The success of LGAM Private Credit LLC likely depends on the expertise of its investment management team. The departure of key personnel could negatively impact the company's ability to source and manage investments.
• Regulatory Changes [low — regulatory]: Changes in regulations affecting private credit funds, investment advisers, or the financial markets could impact the company's operations, compliance costs, and investment strategies.

Industry Context

The private credit market continues to be a dynamic sector, characterized by increasing demand for flexible financing solutions from middle-market companies. While traditional lenders retrench, private credit funds like LGAM are stepping in, benefiting from higher yields. However, this growth also attracts more competition and regulatory scrutiny.

Regulatory Implications

As a private credit fund, LGAM Private Credit LLC is subject to evolving financial regulations. Increased leverage and the nature of its investments may attract closer examination regarding capital adequacy, risk management, and investor protection.

What Investors Should Do

1. Monitor leverage levels closely.
2. Analyze the drivers of investment income growth.
3. Evaluate the impact of realized losses on capital.
4. Assess the slight decline in NAV per unit.

Key Dates

• 2025-06-30: End of Second Quarter — Reporting period for the 10-Q, showing significant asset and investment growth.
• 2025-06-30: Six Months Ended — Period for which investment income and net investment income are reported, showing substantial increases.
• 2024-12-31: Year-End — Prior period comparison for total assets, debt, and NAV per unit.
• 2024-06-30: Six Months Ended — Prior year period for comparison of investment income and net investment income.
• 2025-08-12: Common Units Outstanding — Indicates the number of units outstanding as of a recent date, relevant for per-unit calculations.

Glossary

Net Asset Value (NAV) per Unit

The value of a company's assets minus its liabilities, divided by the number of outstanding units. It represents the per-unit book value. (Indicates the underlying value of each unit of LGAM Private Credit LLC, which slightly declined to $20.07.)

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. (Key for valuing the company's investment portfolio, which constitutes the majority of its assets.)

Net Investment Income

Total investment income less investment expenses. It represents the profit generated from the company's core investment activities. (Increased to $6.24 million for H1 2025, showing improved profitability from operations.)

Leverage

The use of borrowed money to finance the purchase of assets, with the expectation that the income or capital gain from the investment will exceed the cost of borrowing. (LGAM Private Credit LLC has increased its leverage, with debt rising to $140.60 million.)

Realized Loss on Investments

The loss incurred when an investment is sold for less than its purchase price. (A net realized loss of $0.76 million in H1 2025 negatively impacted members' capital.)

Year-Over-Year Comparison

LGAM Private Credit LLC has demonstrated robust growth in its asset base, with total assets increasing to $307.66 million from $253.68 million year-over-year. This expansion is reflected in a substantial rise in total investment income, up by nearly 80% to $13.38 million. However, the company has also increased its financial leverage significantly, with debt rising to $140.60 million from $105.60 million, and experienced a net realized loss on investments, which impacted the net increase in members' capital despite higher net investment income.

Filing Documents

• lgam-20250630.htm (10-Q) — 5155KB
• a2025630-exhibit311xceocert.htm (EX-31.1) — 8KB
• a2025630-exhibit312xcfocert.htm (EX-31.2) — 8KB
• a2025630-exhibit321xceocert.htm (EX-32.1) — 5KB
• a2025630-exhibit322xcfocert.htm (EX-32.2) — 5KB
• 0001983514-25-000057.txt ( ) — 18579KB
• lgam-20250630.xsd (EX-101.SCH) — 49KB
• lgam-20250630_cal.xml (EX-101.CAL) — 57KB
• lgam-20250630_def.xml (EX-101.DEF) — 326KB
• lgam-20250630_lab.xml (EX-101.LAB) — 605KB
• lgam-20250630_pre.xml (EX-101.PRE) — 426KB
• lgam-20250630_htm.xml (XML) — 5640KB

Financial Information

Part I. Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Statements of Financial Condition 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Members' Capital 5 Consolidated Statements of Cash Flows 6 Consolidated Schedules of Investments 8 Notes to the Consolidated Financial Statements 36

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 51

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 61

Controls and Procedures

Item 4. Controls and Procedures 62

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 63

Risk Factors

Item 1A. Risk Factors 63

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 63

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 63

Other Information

Item 5. Other Information 63

Exhibits

Item 6. Exhibits 64

SIGNATURES

SIGNATURES 2 Table of Contents LGAM Private Credit LLC Consolidated Statements of Financial Condition (In thousands, except unit and per unit amounts) As of June 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets Non-controlled/non-affiliated investments, at fair value (amortized cost of $ 291,123 and $ 241,028 ) $ 291,794 $ 241,840 Non-controlled/affiliated investments, at fair value (amortized cost of $ 2,259 and $ 0 ) 2,277 — Total investments, at fair value (amortized cost of $ 293,382 and $ 241,028 ) 294,071 241,840 Cash and cash equivalents 2,709 2,187 Investments in unaffiliated money market fund (cost of $ 6,731 and $ 5,289 ) 6,731 5,289 Deferred financing costs 2,439 2,693 Interest and dividend receivable from non-controlled/non-affiliated investments 1,586 1,631 Interest and dividend receivable from non-controlled/affiliated investments 22 — Receivable for investments sold/repaid 18 32 Other assets 84 11 Total assets 307,660 253,683 Liabilities Debt 140,600 105,600 Payable to affiliates (Note 3) 235 59 Dividends payable 1,152 1,111 Management fees payable 400 333 Capital gains based incentive fee payable — 103 Interest payable 1,602 1,375 Income based incentive fees payable 463 429 Accrued expenses and other liabilities 313 545 Total liabilities 144,765 109,555 Commitments and contingencies (Note 7) Members' Capital Common Units, par value $ 0.001 per share ( 8,115,363 and 7,101,860 units issued and outstanding) 8 7 Paid-in capital in excess of par value 162,967 142,499 Distributable earnings (accumulated losses) ( 80 ) 1,622 Total members' capital $ 162,895 $ 144,128 Total liabilities and members' capital $ 307,660 $ 253,683 Net asset value per unit $ 20.07 $ 20.29 The accompanying notes are an integral part of these unaudited consolidated financial statements 3 Table of Contents LGAM Private Credit LLC Consolidated Statements of Operations (Unaudited) (In thousands, except unit and per uni

View Full Filing

View this 10-Q filing on SEC EDGAR