SCP Private Credit Income BDC Sees Assets, Capital Plummet 30%

TL;DR

**SCP Private Credit Income BDC is shrinking fast, with assets and capital down significantly, signaling tough times ahead for this private credit player.**

AI Summary

SCP Private Credit Income BDC LLC reported a significant decrease in total assets and unitholders' capital for the nine months ended September 30, 2025. Total assets declined from $359,383 thousand at December 31, 2024, to $248,964 thousand at September 30, 2025, a 30.7% reduction. Unitholders' capital also saw a substantial drop from $187,395 thousand to $143,401 thousand, a 23.5% decrease. Net investment income decreased by 39.7% to $11,444 thousand for the nine months ended September 30, 2025, compared to $18,989 thousand in the prior year period. The company experienced a net change in unrealized loss on investments of $4,408 thousand for the nine months ended September 30, 2025, a significant deterioration from a $206 thousand unrealized loss in the same period of 2024. Net income per unit fell to $0.40 for the nine months ended September 30, 2025, from $0.71 in the prior year. The company redeemed $35,000 thousand in unitholder capital during the nine months ended September 30, 2025, and paid $16,030 thousand in cash distributions. Debt decreased from $166,151 thousand to $101,607 thousand, reflecting significant repayments of borrowings totaling $83,757 thousand.

Why It Matters

This filing reveals a significant contraction in SCP Private Credit Income BDC LLC's operations and capital base, which is a critical signal for investors. The substantial decrease in total assets and unitholders' capital, coupled with declining net investment income and increasing unrealized losses, suggests potential challenges in portfolio performance and investor confidence. For employees, this could indicate a period of belt-tightening or strategic shifts. Customers of the BDC's portfolio companies might face increased scrutiny or changes in lending terms. In the broader market, this trend could reflect a tougher environment for private credit, potentially impacting other BDCs and alternative investment vehicles, especially given the competitive landscape for attractive private debt opportunities.

Risk Assessment

Risk Level: high — The risk level is high due to a 30.7% decrease in total assets from $359,383 thousand to $248,964 thousand and a 23.5% decrease in unitholders' capital from $187,395 thousand to $143,401 thousand. Furthermore, the net change in unrealized loss on investments worsened significantly to $4,408 thousand for the nine months ended September 30, 2025, compared to $206 thousand in the prior year, indicating deteriorating portfolio quality.

Analyst Insight

Investors should exercise extreme caution and consider divesting from SCP Private Credit Income BDC LLC. The substantial decline in assets, capital, and net investment income, alongside increasing unrealized losses, points to significant operational and financial headwinds. Reallocate capital to BDCs demonstrating consistent growth and stronger portfolio performance.

Financial Highlights

revenue

$11.44M

total Assets

$248.96M

total Debt

$101.61M

eps

$0.40

revenue Growth

-39.7%

Key Numbers

• $248.96M — Total Assets (Decreased by 30.7% from $359.38M at Dec 31, 2024)
• $143.40M — Total Unitholders' Capital (Decreased by 23.5% from $187.40M at Dec 31, 2024)
• $11.44M — Net Investment Income (9 months) (Decreased by 39.7% from $18.99M in prior year period)
• $4.41M — Net Change in Unrealized Loss on Investments (9 months) (Worsened from $0.21M loss in prior year period)
• $0.40 — Net Income Per Unit (9 months) (Decreased from $0.71 in prior year period)
• $35.00M — Redemptions from Unitholders (9 months) (Significant capital outflow)
• $101.61M — Debt (Decreased from $166.15M at Dec 31, 2024, due to repayments)
• 14,927,988 — Units Outstanding (As of October 31, 2025, down from 18,532,519 units at Dec 31, 2024)
• $9.61 — Net Asset Value per Unit (Decreased from $10.11 at Dec 31, 2024)
• 11.4% — Non-qualifying assets (Percentage of total assets as of September 30, 2025)

Key Players & Entities

• SCP Private Credit Income BDC LLC (company) — registrant
• Securities and Exchange Commission (regulator) — filing oversight
• $359,383 thousand (dollar_amount) — total assets as of December 31, 2024
• $248,964 thousand (dollar_amount) — total assets as of September 30, 2025
• $187,395 thousand (dollar_amount) — unitholders' capital as of December 31, 2024
• $143,401 thousand (dollar_amount) — unitholders' capital as of September 30, 2025
• $11,444 thousand (dollar_amount) — net investment income for nine months ended September 30, 2025
• $18,989 thousand (dollar_amount) — net investment income for nine months ended September 30, 2024
• $4,408 thousand (dollar_amount) — net change in unrealized loss on investments for nine months ended September 30, 2025
• $0.40 (dollar_amount) — net income per unit for nine months ended September 30, 2025

FAQ

Risk Factors

• Deterioration in Investment Performance [high — financial]: The company experienced a significant increase in net change in unrealized loss on investments, totaling $4.41 million for the nine months ended September 30, 2025, a stark deterioration from a $0.21 million loss in the prior year period. This directly impacted net income per unit, which fell to $0.40 from $0.71.
• Reduced Net Investment Income [high — financial]: Net investment income decreased by 39.7% to $11.44 million for the nine months ended September 30, 2025, compared to $18.99 million in the prior year period. This decline suggests challenges in generating income from the company's investment portfolio.
• Significant Asset and Capital Contraction [high — financial]: Total assets declined by 30.7% to $248.96 million as of September 30, 2025, from $359.38 million at December 31, 2024. Concurrently, unitholders' capital decreased by 23.5% to $143.40 million, indicating a substantial deleveraging and reduction in the company's scale of operations.
• Substantial Debt Reduction [medium — financial]: The company significantly reduced its debt from $166.15 million to $101.61 million, reflecting repayments of borrowings totaling $83.76 million. While this improves leverage ratios, it also signifies a contraction in the capital available for investment.
• Capital Outflows from Redemptions [medium — financial]: The company redeemed $35.00 million in unitholder capital during the nine months ended September 30, 2025. This, along with cash distributions of $16.03 million, represents significant capital outflows that contributed to the decrease in unitholders' capital.
• Declining Net Asset Value per Unit [medium — market]: The Net Asset Value per Unit decreased to $9.61 as of September 30, 2025, from $10.11 at December 31, 2024. This decline reflects the negative impact of unrealized losses and reduced investment income on the underlying value of the company's assets.
• Non-qualifying Assets [low — regulatory]: As of September 30, 2025, 11.4% of total assets were classified as non-qualifying assets. While not explicitly detailed, BDCs are subject to regulations regarding asset composition, and a significant portion of non-qualifying assets could pose compliance risks.

Industry Context

The private credit sector, particularly for Business Development Companies (BDCs), is navigating a challenging environment characterized by rising interest rates and increased economic uncertainty. This has led to a focus on credit quality and a potential slowdown in new deal origination. BDCs are increasingly scrutinized for their ability to generate consistent income and manage portfolio risk in a volatile market.

Regulatory Implications

As a BDC, SCP Private Credit Income BDC LLC is subject to regulations under the Investment Company Act of 1940, which dictates asset composition, leverage limits, and distribution requirements. The presence of non-qualifying assets, even at 11.4%, warrants attention to ensure ongoing compliance and avoid potential penalties or changes to its regulatory status.

What Investors Should Do

1. Monitor investment performance closely.
2. Assess the sustainability of distributions.
3. Evaluate the impact of capital redemptions.
4. Review the company's deleveraging strategy.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period of significant asset contraction, reduced investment income, and increased unrealized losses.
• 2024-12-31: As of December 31, 2024 — Prior period benchmark showing higher total assets ($359.38M) and unitholders' capital ($187.40M).

Glossary

Net Investment Income

The income generated from a company's core operations after deducting operating expenses, but before accounting for realized or unrealized gains or losses on investments. (Key indicator of the profitability of the BDC's lending and investment activities.)

Unrealized Loss on Investments

A decrease in the market value of an investment that has not yet been sold. It represents a paper loss until the investment is disposed of. (Indicates the current market valuation of the company's portfolio and its impact on net worth.)

Net Asset Value per Unit

The total value of a company's assets minus its liabilities, divided by the number of outstanding units. (Represents the per-unit book value of the company and is a key metric for investors to assess the underlying value of their holdings.)

Non-qualifying Assets

Assets held by a Business Development Company (BDC) that do not meet the specific criteria defined by the Investment Company Act of 1940 for qualifying investments. (A significant portion of non-qualifying assets can impact a BDC's regulatory compliance and tax status.)

Redemptions from Unitholders

The process by which a company buys back its own units from investors. (Represents a direct outflow of capital from the company, reducing its asset base and unitholders' equity.)

Year-Over-Year Comparison

Compared to the prior year period, SCP Private Credit Income BDC LLC has experienced a significant contraction in its financial profile. Total assets have fallen by 30.7%, and unitholders' capital by 23.5%. Net investment income has decreased by 39.7%, and the company has shifted from a minor unrealized gain to a substantial unrealized loss of $4.41 million. This deterioration in performance is reflected in a lower net income per unit ($0.40 vs. $0.71) and a reduced Net Asset Value per Unit ($9.61 vs. $10.11).

Filing Documents

• ck0001743415-20250930.htm (10-Q) — 3127KB
• ck0001743415-ex31_1.htm (EX-31.1) — 14KB
• ck0001743415-ex31_2.htm (EX-31.2) — 14KB
• ck0001743415-ex31_3.htm (EX-31.3) — 14KB
• ck0001743415-ex32_1.htm (EX-32.1) — 9KB
• ck0001743415-ex32_2.htm (EX-32.2) — 9KB
• ck0001743415-ex32_3.htm (EX-32.3) — 9KB
• 0001193125-25-264653.txt ( ) — 11116KB
• ck0001743415-20250930.xsd (EX-101.SCH) — 1303KB
• ck0001743415-20250930_htm.xml (XML) — 2110KB

Financial Statements

Financial Statements Consolidated Statements of Assets and Liabilities as of September 30, 2025 (unaudited) and December 31, 2024 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 (unaudited) and the three and nine months ended September 30, 2024 (unaudited) 4 Consolidated Statements of Changes in Unitholders' Capital for the three and nine months ended September 30, 2025 (unaudited) and the three and nine months ended September 30, 2024 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 (unaudited) and the nine months ended September 30, 2024 (unaudited) 6 Consolidated Schedule of Investments as of September 30, 2025 (unaudited) 7 Consolidated Schedule of Investments as of December 31, 2024 11

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 14 Report of Independent Registered Public Accounting Firm 28 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 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 40 Item 6. Exhibits 41

SIGNATURES

SIGNATURES 42 2 Table of Contents

FINANC IAL INFORMATION

PART I. FINANC IAL INFORMATION In this Quarterly Report, "Company", "we", "us", and "our" refer to SCP Private Credit Income BDC LLC unless the context states otherwise. Item1. Fi nancial Statements SCP Private Credit Income BDC LLC Consolidated Stat ements of Assets and Liabilities (in thousands, except unit and per unit amounts) September 30, 2025 (unaudited) December 31, 2024 Assets Investments at fair value: Companies less than 5% owned (cost: $ 209,619 and $ 289,211 , respectively) $ 207,765 $ 289,875 Companies 5% to 25% owned (cost: $ 37,981 and $ 36,026 , respectively) 26,745 26,680 Cash 8,313 39,386 Cash equivalents (cost: $ 2,833 and $ 0 , respectively) 2,833 — Interest receivable 3,262 3,413 Receivable for investments sold 14 14 Prepaid expenses 32 15 Total assets $ 248,964 $ 359,383 Liabilities Debt ($ 102,243 and $ 167,000 face amounts, respectively, reported net of unamortized debt issuance costs of $ 636 and $ 849 , respectively. See note 5) $ 101,607 $ 166,151 Management fee payable (see note 3) 602 733 Incentive fee payable (see note 3) 2,292 3,748 Administration fee payable (see note 3) 42 69 Interest payable (see note 5) 613 994 Payable for investments purchased 237 15 Other liabilities and accrued expenses 170 278 Total liabilities $ 105,563 $ 171,988 Commitments and contingencies (see note 6) Unitholders' Capital Common Unitholders' capital ( 14,927,988 and 18,532,519 units, respectively, issued and outstanding) 158,933 193,933 Accumulated distributable net loss ( 15,532 ) ( 6,538 ) Total unitholders' capital $ 143,401 $ 187,395 Total liabilities and unitholders' capital $ 248,964 $ 359,383 Net asset value per unit $ 9.61 $ 10.11 See notes to consolidated financial statements. 3 Table of Contents SCP Private Credit Income BDC LLC Consolidated State ments of

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