OHA Senior Private Lending Fund Sees Net Asset Surge on FX Gains

TL;DR

**OHA Senior Private Lending Fund is a BUY; massive FX gains are masking a slight dip in core investment income, but overall net asset growth is undeniable.**

AI Summary

OHA Senior Private Lending Fund (U) LLC reported a significant increase in net assets, rising from $436.29 million at December 31, 2024, to $481.585 million at September 30, 2025. This 10.39% growth was primarily driven by a substantial net change in unrealized appreciation on foreign currency forward contracts, which swung from a depreciation of $26.106 million at December 31, 2024, to an appreciation of $21.663 million at September 30, 2025. Net investment income for the nine months ended September 30, 2025, was $26.626 million, a decrease from $29.510 million for the same period in 2024. Total investment income also saw a decline, from $37.787 million in the first nine months of 2024 to $34.615 million in 2025. Expenses remained relatively stable, with total expenses at $7.989 million for the nine months ended September 30, 2025, compared to $8.206 million in the prior year. The fund's investment portfolio at fair value increased to $434.267 million from $423.430 million, with a significant portion in first lien debt across various sectors like Capital Equipment and Finance. Cash and cash equivalents decreased from $42.218 million to $26.174 million. The company also reported a net increase in net assets from operations of $73.956 million for the nine months ended September 30, 2025, a substantial improvement from $26.377 million in the prior year.

Why It Matters

This 10-Q filing reveals OHA Senior Private Lending Fund's strong net asset growth, primarily fueled by favorable foreign currency movements, which is crucial for investors seeking capital appreciation. While net investment income slightly declined, the overall operational increase in net assets is a positive signal for the fund's health and its ability to generate returns. The competitive landscape for private lending funds is intense, and OHA's ability to navigate currency fluctuations effectively demonstrates a key differentiator. Employees and customers benefit from a financially robust fund, ensuring stability and continued service, while the broader market gains insight into the performance of private debt vehicles in a volatile global economy.

Risk Assessment

Risk Level: medium — The fund exhibits a medium risk level due to its significant reliance on foreign currency forward contracts, which contributed $47.769 million in net unrealized appreciation for the nine months ended September 30, 2025. While beneficial in this period, this exposure introduces volatility, as evidenced by the $26.106 million unrealized depreciation at December 31, 2024. Additionally, the decrease in total investment income from $37.787 million to $34.615 million year-over-year suggests potential underlying pressure on core lending activities.

Analyst Insight

Investors should closely monitor the fund's future performance, particularly its core investment income trends and foreign currency hedging strategies. While the recent FX gains are positive, a deeper dive into the sustainability of these gains and the underlying health of the loan portfolio is warranted. Consider this a hold for now, awaiting further clarity on recurring income generation.

Financial Highlights

debt To Equity

N/A

revenue

$34,615,000

operating Margin

N/A

total Assets

$487,405,000

total Debt

$5,820,000

net Income

$26,626,000

eps

$10.77

gross Margin

N/A

cash Position

$26,174,000

revenue Growth

-8.40%

Revenue Breakdown

Key Numbers

• $481.585M — Total Net Assets (Increased by 10.39% from $436.29M at Dec 31, 2024 to $481.585M at Sep 30, 2025)
• $21.663M — Unrealized Appreciation on Foreign Currency Forward Contracts (Significant positive swing from $26.106M depreciation at Dec 31, 2024)
• $26.626M — Net Investment Income (9 months) (Decreased from $29.510M in the prior year period)
• $73.956M — Net Increase in Net Assets from Operations (9 months) (Substantial increase from $26.377M in the prior year period)
• $34.615M — Total Investment Income (9 months) (Decreased from $37.787M in the prior year period)
• $434.267M — Investments at Fair Value (Increased from $423.430M at Dec 31, 2024)
• $26.174M — Cash and Cash Equivalents (Decreased from $42.218M at Dec 31, 2024)
• $10.77 — Net Asset Value per Share (Increased from $9.76 at Dec 31, 2024)
• $47.769M — Net Change in Unrealized Appreciation on Foreign Currency Forward Contracts (9 months) (Significant positive impact on net assets)
• 44,724,135 — Common Shares Outstanding (Consistent between Sep 30, 2025 and Dec 31, 2024)

Key Players & Entities

• OHA Senior Private Lending Fund (U) LLC (company) — Registrant
• $481,585 (dollar_amount) — Total net assets as of September 30, 2025
• $436,290 (dollar_amount) — Total net assets as of December 31, 2024
• $21,663 (dollar_amount) — Unrealized appreciation on foreign currency forward contracts as of September 30, 2025
• $26,106 (dollar_amount) — Unrealized depreciation on foreign currency forward contracts as of December 31, 2024
• $26,626 (dollar_amount) — Net investment income for the nine months ended September 30, 2025
• $29,510 (dollar_amount) — Net investment income for the nine months ended September 30, 2024
• $73,956 (dollar_amount) — Net increase in net assets resulting from operations for the nine months ended September 30, 2025
• $26,377 (dollar_amount) — Net increase in net assets resulting from operations for the nine months ended September 30, 2024
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Foreign Currency Fluctuations [medium — market]: The fund is exposed to foreign currency risk through its investments and foreign currency forward contracts. A significant swing in unrealized appreciation on foreign currency forward contracts, from a depreciation of $26.106 million at December 31, 2024, to an appreciation of $21.663 million at September 30, 2025, highlights this volatility. This can impact the net asset value and investment income.
• Investment Portfolio Volatility [medium — financial]: The fair value of the fund's investments, primarily in first lien debt, can fluctuate. While investments increased to $434.267 million from $423.430 million, the net change in unrealized appreciation on foreign currency forward contracts for the nine months ended September 30, 2025, was $47.769 million, indicating potential for significant gains or losses.
• Decreasing Investment Income [medium — financial]: Total investment income for the nine months ended September 30, 2025, decreased to $34.615 million from $37.787 million in the prior year. Net investment income also declined to $26.626 million from $29.510 million, suggesting a potential pressure on the fund's core earnings generation.
• Reduced Cash Position [low — financial]: Cash and cash equivalents decreased from $42.218 million at December 31, 2024, to $26.174 million at September 30, 2025. This reduction in liquidity could limit the fund's flexibility in pursuing new investment opportunities or meeting short-term obligations.
• Management and Incentive Fees [low — operational]: While total expenses remained relatively stable, management fees increased to $2,243,000 for the nine months ended September 30, 2025, from $2,026,000 in the prior year. Income incentive fees decreased to $3,804,000 from $4,216,000, but these fees can impact net returns.

Industry Context

The senior private lending sector is characterized by its focus on providing debt financing to middle-market companies, often secured by first lien collateral. This segment typically offers higher yields compared to traditional fixed income but also carries higher credit risk. The competitive landscape includes other private credit funds, BDCs, and traditional lenders adapting to direct lending.

Regulatory Implications

As a private lending fund, OHA Senior Private Lending Fund (U) LLC is subject to various financial regulations, including those related to disclosure, capital requirements, and investor protection. Changes in interest rate policies by central banks and evolving regulatory frameworks for alternative investment funds can impact its operations and investment strategies.

What Investors Should Do

1. Monitor foreign currency exposure and hedging effectiveness.
2. Analyze the drivers of declining net investment income.
3. Evaluate the impact of reduced cash and cash equivalents.
4. Assess the sustainability of net asset growth.

Key Dates

• 2025-09-30: Quarterly Report Filing (10-Q) — Provides updated financial statements, including net assets of $481.585 million and details on investment performance and market risk exposures.
• 2024-12-31: Previous Fiscal Year End — Benchmark for comparison, with net assets of $436.29 million and a net unrealized depreciation on foreign currency forward contracts of $26.106 million.

Glossary

Net Assets

The total value of a company's assets minus its liabilities. For a fund, it represents the value attributable to shareholders. (Indicates the overall size and value of the fund, which grew by 10.39% to $481.585 million.)

Unrealized Appreciation/Depreciation

The increase or decrease in the value of an asset that has not yet been sold. It represents a paper gain or loss. (A significant swing from depreciation to appreciation in foreign currency forward contracts ($47.769 million change) heavily impacted net assets.)

Net Investment Income

The income generated by a fund from its investments after deducting operating expenses. (Decreased to $26.626 million for the nine months ended September 30, 2025, from $29.510 million in the prior year.)

First Lien Debt

A type of debt that has the highest priority in terms of repayment in the event of a borrower's default or bankruptcy. (A significant portion of the fund's investment portfolio is in this type of debt, indicating a focus on senior secured lending.)

Foreign Currency Forward Contracts

Agreements to buy or sell a specific amount of currency at a future date at a predetermined exchange rate. (These contracts significantly influenced the fund's net asset value due to large unrealized gains/losses.)

Year-Over-Year Comparison

Compared to the prior year period, OHA Senior Private Lending Fund (U) LLC experienced a decrease in total investment income, falling from $37.787 million to $34.615 million for the nine months ended September 30, 2025. This led to a decline in net investment income from $29.510 million to $26.626 million. However, the fund saw a substantial increase in net assets from operations, rising from $26.377 million to $73.956 million, largely driven by a significant positive swing in unrealized appreciation on foreign currency forward contracts, which moved from a $26.106 million depreciation to a $21.663 million appreciation.

Key Financial Figures

• $0.01 — mber of the registrant's common shares, $0.01 par value per share, outstanding as of

Filing Documents

• brhc-20250930.htm (10-Q) — 4170KB
• exhibit311_ulendxceosec302.htm (EX-31.1) — 11KB
• exhibit312_ulendxcfosec302.htm (EX-31.2) — 10KB
• exhibit321_ulendxceosec906.htm (EX-32.1) — 6KB
• exhibit322_ulendxcfosec906.htm (EX-32.2) — 6KB
• 0001955010-25-000013.txt ( ) — 16515KB
• brhc-20250930.xsd (EX-101.SCH) — 40KB
• brhc-20250930_cal.xml (EX-101.CAL) — 54KB
• brhc-20250930_def.xml (EX-101.DEF) — 187KB
• brhc-20250930_lab.xml (EX-101.LAB) — 519KB
• brhc-20250930_pre.xml (EX-101.PRE) — 357KB
• brhc-20250930_htm.xml (XML) — 4004KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 1 Consolidated Statements of Assets and Liabilities as of September 30 , 2025 (Unaudited) and December 31, 2024 2 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 5 Consolidated Schedules of Investments as of September 30, 2025 (Unaudited) and December 31, 2024 6 Notes to the Consolidated Financial Statements (Unaudited) 26

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 46

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 65

Controls and Procedures

Item 4. Controls and Procedures 66

OTHER INFORMATION

PART II OTHER INFORMATION 66

Legal Proceedings

Item 1. Legal Proceedings 66

Risk Factors

Item 1A. Risk Factors 67

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 67

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 67

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 67

Other Information

Item 5. Other Information 67

Exhibits and Financial Statement Schedules

Item 6. Exhibits and Financial Statement Schedules 68

Signatures

Signatures 69 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Some of the statements in this Quarterly Report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OHA Senior Private Lending Fund (U) LLC (the "Company", "we", "us" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Forward-looking statements may include, among other things, statements as to our future operating results, our business prospects and the prospects of our portfolio companies, the impact of the investments that we expect to make, the ability of our portfolio companies to achieve their objectives, our expected financings and investments, the adequacy of our cash resources and working capital, and the timing of cash flows, if any, from the operations of our portfolio companies. Words such as "expect," "anticipate," "target," "goals," "project," "intend," "plan," "believe," "seek," "estimate," "continue," "forecast," "may," "will," "would," "should," "potential," variations of such words, and similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. Readers are cautioned that the forward-looking statements contained in this Quarterly Report on Form 10-Q are only predictions, are not guarantees of future performance, and are subject to risks, events, uncertainties and assumptions that are difficult to predict. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the items discussed in Item 1A entitled "Risk Factors" in Part II of this Quarterly Report on Form 10-Q and in Item 1A entitled "Risk Factors" in Part I of our Annual R

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements OHA Senior Private Lending Fund (U) LLC Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) As of September 30, 2025 December 31, 2024 ASSETS (Unaudited) Investments at fair value: Non-controlled/non-affiliated investments (cost of $ 432,846 and $ 420,729 at September 30, 2025 and December 31, 2024, respectively) $ 434,267 $ 423,430 Cash and cash equivalents 26,174 42,218 Interest receivable 5,214 3,831 Unrealized appreciation on foreign currency forward contracts 21,663 — Receivable for investments sold 87 55 Total assets $ 487,405 $ 469,534 LIABILITIES Collateral payable on forward currency exchange contracts 330 160 Management fees payable 778 751 Income incentive fee payable 3,803 5,221 Unrealized depreciation on foreign currency forward contracts — 26,106 Accrued expenses and other liabilities 909 1,006 Total liabilities $ 5,820 $ 33,244 Commitments and contingencies (Note 7) NET ASSETS Common shares, $ 0.01 par value ( 44,724,135 and 44,724,135 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) 447 447 Additional paid in capital 459,283 459,283 Distributable earnings (loss) 21,855 ( 23,440 ) Total net assets $ 481,585 $ 436,290 Total liabilities and net assets $ 487,405 $ 469,534 Net asset value per share $ 10.77 $ 9.76 See accompanying notes to the consolidated financial statements. 2 Table of Contents OHA Senior Private Lending Fund (U) LLC Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Investment income: From non-controlled/non-affiliated investments: Interest income $ 11,401 $ 12,379 $ 33,991 $ 35,355 Other income 256 587 624 2,432 Total investment income 11,657 12,966 34,615 37,787 Expen

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