Fidelity Private Credit Sees Net Asset Growth Amidst Unrealized Depreciation

TL;DR

**Fidelity Private Credit's NAV dip and growing unrealized losses signal caution, despite operational income growth.**

AI Summary

Fidelity Private Credit Co LLC reported a net increase in net assets from operations of $52,951,686 for the nine months ended September 30, 2025, a 7.26% increase from $49,365,358 in the same period of 2024. Total investment income rose to $137,335,882 for the nine months ended September 30, 2025, up from $134,941,601 in 2024, primarily driven by interest income of $134,916,615. However, the company experienced a net change in unrealized depreciation on investments of $(29,557,904) for the nine months ended September 30, 2025, worsening from $(25,811,303) in 2024. Total liabilities decreased to $831,840,269 as of September 30, 2025, from $886,035,537 at December 31, 2024, largely due to a reduction in debt from $868,361,752 to $795,352,806. Net Asset Value per unit slightly declined to $9.50 as of September 30, 2025, from $9.68 at December 31, 2024. The company also saw significant capital activity, with capital contributions of $50,286,000 and distributions to unit holders of $(68,071,913) for the nine months ended September 30, 2025.

Why It Matters

For investors, the slight decline in Net Asset Value per unit to $9.50 from $9.68 indicates a potential erosion of value, despite an increase in net assets from operations. The significant unrealized depreciation of $(29,557,904) highlights potential risks in the private credit market, suggesting that underlying asset values are under pressure. This could impact future distributions and overall returns, making it crucial for investors to monitor the quality of the loan portfolio. The competitive landscape for private credit remains intense, and Fidelity's ability to manage these unrealized losses will be key to maintaining its market position and investor confidence.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant net change in unrealized depreciation on investments, which worsened to $(29,557,904) for the nine months ended September 30, 2025, from $(25,811,303) in the prior year. This indicates potential stress in the underlying loan portfolio. Additionally, the Net Asset Value per unit decreased from $9.68 to $9.50, suggesting a slight decline in per-unit value.

Analyst Insight

Investors should scrutinize the composition and credit quality of Fidelity Private Credit Co LLC's loan portfolio, particularly given the increasing unrealized depreciation. Consider if the current yield adequately compensates for the observed NAV decline and potential future write-downs. Monitor upcoming filings for trends in asset valuations and any changes in management's outlook on credit conditions.

Financial Highlights

debt To Equity

1.03

revenue

$137,335,882

operating Margin

N/A

total Assets

$1,616,897,402

total Debt

$795,352,806

net Income

$52,951,686

eps

$0.64

gross Margin

N/A

cash Position

$43,512,900

revenue Growth

+1.77%

Revenue Breakdown

Key Numbers

• $52.95M — Net Increase in Net Assets from Operations (Increased by 7.26% from $49.37M in 2024 for the nine months ended September 30, 2025.)
• $137.34M — Total Investment Income (Increased from $134.94M in 2024 for the nine months ended September 30, 2025.)
• $(29.56M) — Net Change in Unrealized Depreciation (Worsened from $(25.81M) in 2024 for the nine months ended September 30, 2025.)
• $9.50 — Net Asset Value per Unit (Decreased from $9.68 as of December 31, 2024, to September 30, 2025.)
• $795.35M — Debt (Decreased from $868.36M as of December 31, 2024, to September 30, 2025.)
• $50.29M — Capital Contributions (For the nine months ended September 30, 2025.)
• $(68.07M) — Distributions to Unit Holders (For the nine months ended September 30, 2025.)
• 82,653,798 — Common Units Outstanding (As of September 30, 2025, up from 78,091,599 units at December 31, 2024.)

Key Players & Entities

• Fidelity Private Credit Co LLC (company) — Registrant
• Fidelity Diversifying Solutions LLC (company) — Adviser
• SEC (regulator) — Securities and Exchange Commission
• $52,951,686 (dollar_amount) — Net increase in net assets from operations for nine months ended Sept 30, 2025
• $49,365,358 (dollar_amount) — Net increase in net assets from operations for nine months ended Sept 30, 2024
• $137,335,882 (dollar_amount) — Total Investment Income for nine months ended Sept 30, 2025
• $134,916,615 (dollar_amount) — Interest income from non-controlled/non-affiliate investments for nine months ended Sept 30, 2025
• $(29,557,904) (dollar_amount) — Net change in unrealized depreciation on non-controlled/non-affiliate investments for nine months ended Sept 30, 2025
• $9.50 (dollar_amount) — Net Asset Value per unit as of September 30, 2025
• $9.68 (dollar_amount) — Net Asset Value per unit as of December 31, 2024

FAQ

Risk Factors

• Investment Value Fluctuations [medium — financial]: The company experienced a net change in unrealized depreciation on investments of $(29,557,904) for the nine months ended September 30, 2025, a worsening from $(25,811,303) in the same period of 2024. This indicates a decline in the fair value of its investment portfolio.
• Leverage and Debt Management [medium — financial]: Total debt decreased to $795,352,806 as of September 30, 2025, from $868,361,752 at December 31, 2024. While debt reduction is positive, the company's significant debt level still poses a financial risk.
• Interest Rate Sensitivity [medium — market]: Interest income is the primary driver of investment income. Changes in interest rates can significantly impact the company's revenue and the fair value of its debt investments.
• Capital Activity Management [medium — operational]: The company had capital contributions of $50,286,000 and distributions to unit holders of $(68,071,913) for the nine months ended September 30, 2025. Managing these cash flows effectively is crucial for maintaining liquidity and unit holder value.

Industry Context

Fidelity Private Credit Co LLC operates within the private credit sector, which has seen significant growth. This sector typically involves providing debt financing to companies, often those that may not have access to traditional bank loans. The industry is characterized by a focus on generating income through interest payments and managing credit risk.

Regulatory Implications

As a private credit entity, Fidelity Private Credit Co LLC is subject to various financial regulations. Changes in accounting standards, capital requirements, and disclosure rules can impact its operations and reporting. Compliance with these regulations is crucial to maintain investor confidence and avoid penalties.

What Investors Should Do

1. Monitor Unrealized Depreciation
2. Analyze Debt Reduction Strategy
3. Assess NAV Trend
4. Evaluate Capital Allocation

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for increased net assets from operations and significant capital activity.
• 2025-09-30: Net Asset Value per Unit — Stood at $9.50, a slight decrease from $9.68 at year-end 2024, indicating potential pressure on unit holder value.
• 2025-09-30: Total Debt — Reduced to $795,352,806 from $868,361,752 at December 31, 2024, showing deleveraging efforts.
• 2024-12-31: Total Debt — Reported at $868,361,752.
• 2024-09-30: Nine months ended September 30, 2024 — Prior period comparison for net assets from operations and investment income.

Glossary

Net Asset Value per unit

The value of a company's assets minus its liabilities, divided by the number of outstanding units. It represents the per-unit market value of the company's holdings. (A key metric for investors to assess the underlying value of their investment in Fidelity Private Credit Co LLC.)

Unrealized Depreciation

A decrease in the fair value of an investment that has not yet been sold. It represents a paper loss. (Indicates a decline in the market value of the company's investment portfolio, impacting overall net assets.)

Paid-in-capital in excess of par value

The amount investors have paid for units above their stated par value. It represents additional capital contributed by shareholders. (Reflects the total capital raised by the company from its investors beyond the nominal value of the units.)

Total distributable earnings (loss)

The cumulative earnings or losses of the company that are available for distribution to unit holders. (Indicates the company's profitability and its ability to generate returns for investors.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Fidelity Private Credit Co LLC reported a net increase in net assets from operations of $52.95M, a 7.26% increase from $49.37M in the same period of 2024. Total investment income rose slightly to $137.34M from $134.94M, primarily driven by interest income. However, the company saw a worsening net change in unrealized depreciation on investments, increasing from $(25.81M) to $(29.56M). Total liabilities decreased due to a reduction in debt, but Net Asset Value per unit saw a slight decline to $9.50 from $9.68.

Filing Documents

• ck0001899996-20250930.htm (10-Q) — 13326KB
• ck0001899996-ex31_1.htm (EX-31.1) — 18KB
• ck0001899996-ex31_2.htm (EX-31.2) — 18KB
• ck0001899996-ex32_1.htm (EX-32.1) — 10KB
• ck0001899996-ex32_2.htm (EX-32.2) — 11KB
• 0001193125-25-277220.txt ( ) — 36437KB
• ck0001899996-20250930.xsd (EX-101.SCH) — 1772KB
• ck0001899996-20250930_htm.xml (XML) — 9687KB

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 38 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 63 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 77 Item 4.

Controls and Procedures

Controls and Procedures 77 PART II. OTHER INFORMATION 78 Item 1.

Legal Proceedings

Legal Proceedings 78 Item 1A.

Risk Factors

Risk Factors 78 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 78 Item 3. Defaults Upon Senior Securities 78 Item 4. Mine Safety Disclosures 79 Item 5. Other Information 79 Item 6. Exhibits 80

Signatures

Signatures 81 CAUTIONARY STATEMENT REGARDING 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 current expectations, estimates, and projections of Fidelity Private Credit Company LLC (the "Fund," "we," "us" or "our") and/or Fidelity Diversifying Solutions LLC ("FDS" or the "Adviser") about the Fund, our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. "Fund," "we," "us" or "our" refers to Fidelity Direct Lending Fund, LP, a Delaware limited partnership for periods prior to consummation of the BDC Conversion (as defined below), refers to Fidelity Private Credit Central Fund LLC, a Delaware limited liability company for periods following the BDC Conversion. "BDC Conversion" refers to the conversion by operation of law of Fidelity Direct Lending, LP to Fidelity Private Credit Central Fund LLC by the filing of a Certificate of Conversion to a limited liability company on January 31, 2023, and the Fund's subsequent election to be regulated as a BDC. On March 11, 2024, the Fund was renamed Fidelity Private Credit Company LLC. Forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "project," "estimate," "intend," "continue," "target," or "believe" or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements . Fidelity Private Credit Company LLC Consolidated Statements of Assets and Liabilities September 30, 2025 December 31, 2024 (unaudited) Assets Investments at fair value Non-controlled / non-affiliate investments (amortized cost $ 1,582,212,107 and $ 1,590,134,722 as of September 30, 2025 and December 31, 2024, respectively) $ 1,546,401,002 $ 1,583,881,521 Cash 43,512,900 33,804,984 Foreign cash (cost $ 8,306 and $ 14,073 as of September 30, 2025 and December 31, 2024, respectively) 8,259 13,914 Deferred financing costs 10,323,946 6,507,716 Receivables from sales and paydowns of investments 1,031,460 3,099,283 Interest receivable 15,606,995 14,127,573 Prepaid expenses and other assets 12,840 146,324 Total Assets $ 1,616,897,402 $ 1,641,581,315 Liabilities Debt 795,352,806 868,361,752 Due to custodian — 155,575 Payable for purchases of investments 294,008 319,262 Payable for capital units repurchased 21,512,513 — Interest payable 12,493,822 14,820,731 Management fee payable 840,210 797,625 Due to affiliates, net 133,215 188,679 Other accounts payable and accrued liabilities 1,213,695 1,391,913 Total Liabilities $ 831,840,269 $ 886,035,537 Commitments and Contingencies (Note 7) Net Assets Paid-in-capital in excess of par value 807,755,805 763,124,223 Total distributable earnings (loss) ( 22,698,672 ) ( 7,578,445 ) Total Net Assets $ 785,057,133 $ 755,545,778 Total Liabilities and Net Assets $ 1,616,897,402 $ 1,641,581,315 Net Asset Value per unit ( 82,653,798 and 78,091,599 units issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) $ 9.50 $ 9.68 The accompanying notes are an integral part of these consolidated financial statements 1 Fidelity Private Credit Company LLC Consolidated Statements of Operations (un

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View this 10-Q filing on SEC EDGAR