AB Private Credit Boosts Assets, Net Investment Income in Q3

TL;DR

**AB Private Credit is growing its asset base and income, but watch out for unrealized losses dragging down overall operating results.**

AI Summary

AB Private Credit Investors Corp reported a net increase in net assets from operations of $17,193,514 for the three months ended September 30, 2025, up from $13,863,150 in the prior year period. For the nine months ended September 30, 2025, net investment income after tax was $42,251,117, a 6.07% increase from $39,834,442 in the same period of 2024. Total investments at fair value increased to $1,796,706,145 as of September 30, 2025, from $1,630,349,305 at December 31, 2024, representing a 10.20% growth. The company's total assets grew by 12.10% to $1,899,051,478 from $1,693,995,225 over the same period. However, net increase in net assets resulting from operations for the nine months decreased by 15.33% to $41,739,731 in 2025 from $49,293,257 in 2024, primarily due to a net change in unrealized depreciation on investments of $(5,795,999) in 2025 compared to appreciation of $8,724,020 in 2024. Cash and cash equivalents increased to $67,146,555 from $52,178,854, a 28.69% rise. The company also saw an increase in common stock issued and outstanding to 73,253,029 shares from 63,702,963 shares. Interest and borrowing expenses for the nine months ended September 30, 2025, slightly decreased to $59,300,329 from $59,867,130 in the prior year.

Why It Matters

AB Private Credit Investors Corp's growth in total assets and net investment income signals a robust performance in the private credit market, which is increasingly attractive to investors seeking higher yields in a volatile public market. The 10.20% increase in investments at fair value and 6.07% rise in net investment income after tax for the nine months ended September 30, 2025, demonstrate the company's ability to deploy capital effectively and generate income. This performance could attract more institutional and retail investors to private credit, intensifying competition for deals. For employees, continued growth suggests stability and potential expansion. Customers, primarily borrowers, benefit from a healthy and active private lending market.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant net change in unrealized depreciation on investments of $(5,795,999) for the nine months ended September 30, 2025, a stark contrast to the $8,724,020 appreciation in the prior year. This indicates potential volatility in the fair value of its investment portfolio, which could impact future earnings. Additionally, the company's substantial use of debt, with notes payable and credit facility payable totaling over $1.16 billion, exposes it to interest rate risk.

Analyst Insight

Investors should closely monitor the company's future filings for trends in unrealized gains and losses, as these significantly impact overall operating results. While net investment income is growing, the decline in overall net assets from operations for the nine-month period due to unrealized depreciation warrants caution. Consider the company's exposure to specific industries within its loan portfolio, such as Healthcare and Software & Tech Services, and assess their stability.

Financial Highlights

revenue

$42.25M

total Assets

$1.90B

net Income

$41.74M

eps

$9.53

cash Position

$67.15M

revenue Growth

+6.07%

Key Numbers

• $1.80B — Total Investments, at Fair Value (Increased by 10.20% from $1.63 billion at December 31, 2024.)
• $42.25M — Net Investment Income After Tax (9 months) (Increased by 6.07% from $39.83 million in the prior year period.)
• $17.19M — Net Increase in Net Assets from Operations (3 months) (Increased from $13.86 million in the prior year period.)
• $67.15M — Cash and Cash Equivalents (Increased by 28.69% from $52.18 million at December 31, 2024.)
• $(5.80M) — Net Change in Unrealized Depreciation on Investments (9 months) (A significant shift from $8.72 million appreciation in the prior year, impacting overall net assets.)
• 73.25M — Shares of Common Stock Outstanding (Increased from 63.70 million shares at December 31, 2024.)
• $9.53 — Net Asset Value per Share (Remained stable at $9.53 from December 31, 2024.)
• $59.30M — Interest and Borrowing Expenses (9 months) (Slightly decreased from $59.87 million in the prior year period.)

Key Players & Entities

• AB Private Credit Investors Corp (company) — registrant
• $17,193,514 (dollar_amount) — net increase in net assets from operations for Q3 2025
• $13,863,150 (dollar_amount) — net increase in net assets from operations for Q3 2024
• $42,251,117 (dollar_amount) — net investment income after tax for nine months ended Sep 30, 2025
• $39,834,442 (dollar_amount) — net investment income after tax for nine months ended Sep 30, 2024
• $1,796,706,145 (dollar_amount) — total investments at fair value as of Sep 30, 2025
• $1,630,349,305 (dollar_amount) — total investments at fair value as of Dec 31, 2024
• $1,899,051,478 (dollar_amount) — total assets as of Sep 30, 2025
• $1,693,995,225 (dollar_amount) — total assets as of Dec 31, 2024
• $(5,795,999) (dollar_amount) — net change in unrealized depreciation on investments for nine months ended Sep 30, 2025

FAQ

Risk Factors

• Credit Risk and Investment Portfolio Performance [high — financial]: The company's performance is heavily tied to the credit quality of its investments. A net change in unrealized depreciation on investments of $(5,795,999) for the nine months ended September 30, 2025, compared to appreciation of $8,724,020 in the prior year, highlights the volatility and potential for losses within the private credit portfolio. This directly impacts the net increase in net assets from operations, which decreased by 15.33%.
• Interest Rate Sensitivity [medium — market]: As a credit investor, AB Private Credit Investors Corp is exposed to interest rate fluctuations. Changes in interest rates can affect the fair value of its debt investments and the cost of its own borrowings. While interest and borrowing expenses slightly decreased to $59,300,329 from $59,867,130, sustained increases in rates could pressure margins.
• Valuation of Illiquid Investments [medium — operational]: The fair value of the company's investments, totaling $1,796,706,145, relies on valuation methodologies for private assets which can be subjective. The significant swing in unrealized depreciation suggests potential challenges in accurately valuing these illiquid holdings, posing an operational risk.
• Leverage and Borrowing Costs [medium — financial]: The company utilizes leverage to enhance returns. While interest and borrowing expenses have remained relatively stable, a significant increase in borrowing costs could negatively impact profitability, especially given the substantial $59.30 million in expenses for the nine-month period.
• Regulatory Compliance [low — regulatory]: As a publicly traded investment company, AB Private Credit Investors Corp is subject to various regulatory requirements. Non-compliance with securities laws or other financial regulations could lead to fines, sanctions, and reputational damage.

Industry Context

The private credit market continues to be a significant area for alternative investments, offering potentially higher yields than traditional fixed income. However, it is characterized by illiquidity, credit risk, and sensitivity to interest rate changes. Companies like AB Private Credit Investors Corp operate in a competitive landscape, seeking to originate and manage loans to private companies, often facing increased scrutiny on underwriting standards and portfolio diversification.

Regulatory Implications

As a registered investment company, AB Private Credit Investors Corp is subject to regulations under the Investment Company Act of 1940. This includes requirements related to asset coverage, leverage, and reporting. Changes in accounting standards or regulatory interpretations could impact financial reporting and operational strategies.

What Investors Should Do

1. Monitor Unrealized Depreciation
2. Analyze Leverage and Borrowing Costs
3. Evaluate Investment Portfolio Growth Drivers
4. Assess Share Issuance Impact

Glossary

Net Asset Value per Share

The value of a company's assets minus its liabilities, divided by the number of outstanding shares. It represents the per-share market value of the company. (Indicates the underlying value of each share of common stock. A stable NAV per share of $9.53 suggests consistent underlying asset performance despite fluctuations in net assets from operations.)

Unrealized Depreciation

A decrease in the fair value of an investment that has not yet been sold. It represents a paper loss. (The significant unrealized depreciation of $(5,795,999) for the nine months ended September 30, 2025, directly reduced the net increase in net assets from operations, highlighting market volatility impacting the investment portfolio.)

Net Investment Income

The income generated from a company's investments after deducting operating expenses and interest expenses. (AB Private Credit Investors Corp reported a 6.07% increase in net investment income after tax to $42,251,117 for the nine months ended September 30, 2025, indicating growth in its core income-generating activities.)

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. (Total investments at fair value increased to $1,796,706,145, showing growth in the company's asset base, but also subject to valuation fluctuations as seen in unrealized depreciation.)

Year-Over-Year Comparison

Compared to the prior year, AB Private Credit Investors Corp has seen a 6.07% increase in net investment income after tax for the nine months ended September 30, 2025, reaching $42.25 million. However, the net increase in net assets from operations for the same period declined by 15.33% to $41.74 million, primarily driven by a substantial $(5.80) million in unrealized depreciation on investments, a stark contrast to the $8.72 million appreciation reported previously. Total investments and total assets have grown, and cash reserves have strengthened, but the shift in unrealized gains/losses presents a key area of concern.

Key Financial Figures

• $0.01 — ha d 73,251,840 shares of common stock, $0.01 par value per share, outstanding as of

Filing Documents

• ck0001634452-20250930.htm (10-Q) — 22161KB
• ck0001634452-ex31_1.htm (EX-31.1) — 18KB
• ck0001634452-ex31_2.htm (EX-31.2) — 18KB
• ck0001634452-ex32_1.htm (EX-32.1) — 15KB
• 0001193125-25-277881.txt ( ) — 69773KB
• ck0001634452-20250930.xsd (EX-101.SCH) — 1969KB
• ck0001634452-20250930_htm.xml (XML) — 24840KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 74 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 91 Item 4.

Controls and Procedures

Controls and Procedures 92 PART II. OTHER INFORMATION 93 Item 1.

Legal Proceedings

Legal Proceedings 93 Item 1A.

Risk Factors

Risk Factors 93 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 93 Item 3. Defaults Upon Senior Securities 93 Item 4. Mine Safety Disclosures 93 Item 5. Other Information 93 Item 6. Exhibits 94

SIGNATURES

SIGNATURES 2 Item1. C onsolidated Fina ncial Statements AB Private Credit Investors Corporation Consolidated Statements of Assets and Liabilities As of September 30, 2025 (Unaudited) As of December 31, 2024 Assets Investments, at fair value Non-controlled/non-affiliated investments (amortized cost of $ 1,806,719,725 and $ 1,634,572,997 , respectively) $ 1,795,920,711 $ 1,629,513,317 Non-controlled affiliated investments (amortized cost of $ 2,030,867 and $ 2,024,756 , respectively) 785,434 835,988 Total investments, at fair value (amortized cost of $ 1,808,750,592 and $ 1,636,597,753 , respectively) 1,796,706,145 1,630,349,305 Cash and cash equivalents 67,146,555 52,178,854 Interest receivable 9,424,614 8,578,553 Receivable for investments sold 17,005 25,770 Receivable for fund shares 23,643,449 27,000 Deferred financing costs 2,113,710 2,835,743 Total assets $ 1,899,051,478 $ 1,693,995,225 Liabilities Notes payable (net of unamortized discount of $ 0 and $ 353,110 , respectively, and debt issuance costs of $ 2,679,869 and $ 2,250,921 , respectively) $ 535,320,131 $ 544,145,969 Credit facility payable 626,800,000 502,250,000 Interest and borrowing expenses payable 12,239,742 11,991,564 Payable for fund shares repurchased 7,321,765 7,838,223 Distribution payable 6,479,337 6,097,343 Incentive fee payable 3,635,583 3,352,536 Management fees payable 6,096,862 5,451,281 Professional fees payable 900,687 574,434 Administrator and custodian fees payable 1,045,610 765,843 Payable to Adviser 792,635 1,191,952 Accrued expenses and other liabilities 196,614 107,033 Accrued tax liability 180,522 288,433 Payable for investments purchased 18,000 6,568 Transfer agent fees payable 41,924 37,384 Secured borrowings — 2,845,117 Total Liabilities $ 1,201,069,412 $ 1,086,943,680 Commitments and conting

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