First Eagle Credit Fund's Income Soars 55% Amid Rising Interest Rates

TL;DR

First Eagle Private Credit Fund is leveraging higher interest rates to juice income, but watch that ballooning debt.

AI Summary

First Eagle Private Credit Fund reported a significant increase in net investment income for the nine months ended September 30, 2025, reaching $27.105 million, up from $17.415 million in the prior year, representing a 55.6% increase. Total investment income also saw a substantial rise to $50.170 million for the nine months ended September 2025, compared to $27.310 million in the same period of 2024, primarily driven by a surge in interest income from $22.658 million to $48.065 million. However, the fund experienced a net realized loss of $0.529 million and a net change in unrealized depreciation of $2.218 million for the nine months ended September 30, 2025, contrasting with a net realized gain of $0.377 million and unrealized depreciation of $2.175 million in the prior year. Total net assets increased slightly to $302.517 million as of September 30, 2025, from $300.334 million at December 31, 2024. The company's credit facilities increased to $404.000 million from $325.600 million, indicating increased leverage. The net asset value per Class I share rose to $24.30 from $24.21, while Class D shares were introduced with a NAV of $24.30.

Why It Matters

First Eagle Private Credit Fund's substantial increase in net investment income, driven by higher interest income, signals a robust performance in a rising interest rate environment, which is crucial for investors seeking income-generating assets. The introduction of Class D shares could broaden the fund's investor base, potentially increasing capital inflows. However, the fund's increased leverage, with credit facilities rising to $404 million, introduces higher risk for investors, especially if interest rates continue to climb or credit quality deteriorates. This performance also highlights the competitive landscape in private credit, where funds are leveraging market conditions to enhance returns, potentially putting pressure on other BDCs.

Risk Assessment

Risk Level: medium — The fund's credit facilities increased significantly from $325.600 million at December 31, 2024, to $404.000 million at September 30, 2025, indicating higher leverage. This increased debt, coupled with a net change in unrealized depreciation of $2.218 million for the nine months ended September 30, 2025, suggests a medium risk profile, as higher leverage amplifies both gains and losses.

Analyst Insight

Investors should monitor First Eagle Private Credit Fund's leverage ratios and the quality of its underlying loan portfolio closely. While the increased interest income is positive, the rising credit facilities and unrealized depreciation warrant caution. Consider this fund for income generation, but be aware of the amplified risk from its debt strategy.

Financial Highlights

debt To Equity

1.34

revenue

$50,170,000

operating Margin

54.0%

total Assets

$718,186,000

total Debt

$404,000,000

net Income

$27,105,000

eps

$2.18

gross Margin

N/A

cash Position

$50,637,000

revenue Growth

+83.7%

Revenue Breakdown

Key Numbers

• $27.105M — Net Investment Income (Increased by 55.6% for the nine months ended September 30, 2025, compared to the prior year.)
• $50.170M — Total Investment Income (Increased from $27.310 million in 2024 to $50.170 million in 2025 for the nine-month period.)
• $48.065M — Interest Income (Significantly increased from $22.658 million in 2024 to $48.065 million in 2025 for the nine-month period.)
• $404.000M — Credit Facilities (Increased from $325.600 million at December 31, 2024, indicating higher leverage.)
• $2.218M — Net Unrealized Depreciation (Experienced for the nine months ended September 30, 2025.)
• $302.517M — Total Net Assets (Increased from $300.334 million at December 31, 2024.)
• $24.30 — NAV per Class I Share (Increased from $24.21 at December 31, 2024.)
• 12,447,522 — Common Shares Outstanding (As of September 30, 2025, for Class I and Class D combined.)

Key Players & Entities

• First Eagle Private Credit Fund (company) — Registrant
• First Eagle Investment Management, LLC (company) — Investment Adviser
• First Eagle Alternative Credit, LLC (company) — Investment Sub-Adviser and Administrator
• SEC (regulator) — U.S. Securities and Exchange Commission
• $27.105 million (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $17.415 million (dollar_amount) — Net investment income for nine months ended September 30, 2024
• $50.170 million (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $404.000 million (dollar_amount) — Credit facilities as of September 30, 2025
• $325.600 million (dollar_amount) — Credit facilities as of December 31, 2024
• $24.30 (dollar_amount) — Net asset value per Class I share as of September 30, 2025

FAQ

Risk Factors

• Increased Leverage [high — financial]: The fund's credit facilities increased from $325.6 million to $404.0 million, representing a 24.1% rise. This increased leverage amplifies both potential gains and losses, making the fund more sensitive to market downturns and interest rate fluctuations.
• Unrealized Depreciation [medium — market]: The fund experienced a net change in unrealized depreciation of $2.218 million for the nine months ended September 30, 2025. This indicates a decline in the fair value of the fund's investments, even though interest income surged.
• Net Realized Loss [medium — financial]: A net realized loss of $0.529 million was recorded for the nine months ended September 30, 2025. This suggests that some investments were sold at a loss, impacting overall performance.
• Dependence on Adviser [low — operational]: The fund has a receivable due from its Adviser of $4.029 million as of September 30, 2025. While this could represent normal operational flows, significant balances could indicate reliance or potential intercompany risks.
• Complex Investment Strategies [medium — regulatory]: As a private credit fund, its investments are typically in illiquid, non-publicly traded debt instruments. This complexity can lead to valuation challenges and regulatory scrutiny regarding disclosure and risk management.

Industry Context

The private credit market continues to be a dynamic sector, offering alternative financing solutions to companies unable to access traditional bank loans. Funds like First Eagle Private Credit are navigating a landscape characterized by increasing demand for flexible capital, but also by rising interest rates and evolving regulatory considerations. Competition remains robust, with both established players and new entrants vying for attractive deal flow.

Regulatory Implications

As a registered investment company, First Eagle Private Credit Fund is subject to regulations governing disclosure, leverage, and investor protection. Changes in accounting standards or regulatory interpretations could impact how the fund values its assets, reports its performance, or manages its capital structure.

What Investors Should Do

1. Monitor the trend of increasing leverage: The rise in credit facilities to $404 million warrants close observation for its impact on risk and return profiles.
2. Analyze the drivers of unrealized depreciation: Investors should seek further detail on the specific assets contributing to the $2.218 million in unrealized depreciation to understand underlying portfolio risks.
3. Evaluate the sustainability of interest income growth: While interest income has surged, assess whether this is due to sustainable market conditions or temporary factors.
4. Consider the introduction of Class D shares: Understand the strategic rationale and potential impact of launching new share classes on existing shareholders and fund operations.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant increase in net investment income and total investment income, driven by interest income, but also experienced net realized losses and unrealized depreciation.
• 2025-09-30: Consolidated Statement of Assets and Liabilities — Shows total assets of $718.186 million and total liabilities of $415.669 million, resulting in net assets of $302.517 million.
• 2024-12-31: December 31, 2024 — Prior period financial position for comparison, with total assets of $691.396 million and net assets of $300.334 million.

Glossary

Net Investment Income

The income generated from a fund's investments after deducting operating expenses, but before accounting for any capital gains or losses. (A key measure of a fund's profitability from its core lending and investment activities.)

Net Realized Loss

The loss incurred when an investment is sold for less than its original cost or carrying value. (Indicates losses realized from the sale of portfolio assets during the period.)

Net Change in Unrealized Depreciation

The decrease in the fair value of investments that are still held by the fund, not yet sold. (Reflects the impact of market fluctuations on the value of the fund's current holdings.)

Credit Facilities

Lines of credit or borrowing arrangements that a company can draw upon to meet its short-term or long-term financing needs. (Represents the fund's debt obligations and its use of leverage to finance investments.)

Net Asset Value (NAV) per Share

The market value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (Represents the per-share value of the fund's holdings and is a key metric for investors.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, First Eagle Private Credit Fund has demonstrated robust growth in total investment income (+83.7%) and net investment income (+55.6%), primarily fueled by a significant increase in interest income. However, this growth has been accompanied by a shift from net realized gains to a net realized loss and an increase in unrealized depreciation. The fund has also substantially increased its leverage, with credit facilities rising by 24.1%, indicating a more aggressive capital deployment strategy.

Key Financial Figures

• $0.001 — s common shares of beneficial interest, $0.001 par value per share, outstanding as of
• $1 — 302,517 (1) Par Value is less than $1. The accompanying notes are an integr

Filing Documents

• ck0001890107-20250930.htm (10-Q) — 14922KB
• ck0001890107-ex31_1.htm (EX-31.1) — 14KB
• ck0001890107-ex31_2.htm (EX-31.2) — 14KB
• ck0001890107-ex32_1.htm (EX-32.1) — 10KB
• ck0001890107-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-277963.txt ( ) — 43539KB
• ck0001890107-20250930.xsd (EX-101.SCH) — 1462KB
• ck0001890107-20250930_htm.xml (XML) — 13560KB

Financial Statements

Financial Statements 5 Consolidated Statement of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 5 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 7 Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 9 Consolidated Schedule of Investments as of September 30, 2025 (Unaudited) and December 31, 2024 10

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 30 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 59 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 74 Item 4.

Controls and Procedures

Controls and Procedures 74 PART II. OTHER INFORMATION 76 Item 1.

Legal Proceedings

Legal Proceedings 76 Item 1A.

Risk Factors

Risk Factors 76 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 76 Item 3. Defaults Upon Senior Securities 76 Item 4. Mine Safety Disclosures 76 Item 5. Other Information 77 Item 6. Exhibits 78

Signatures

Signatures 79 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Except as otherwise specified, references to the " Company, " " we, " " us, " and " our " refer to First Eagle Private Credit Fund and its consolidated subsidiaries; " FEIM " and " Adviser " refer to the First Eagle Investment Management , LLC, our investment adviser; and " FEAC, " " Subadviser, " and " Administrator " refer to First Eagle Alternative Credit, LLC, our investment sub-adviser (and, together with the Adviser, the " Advisers " ) and administrator. This quarterly report on Form 10-Q (the "Quarterly Report"), including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In addition to factors previously identified in the Item 1A. Risk Factors section of our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2025, as well as in

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. First Eagle Private Credit Fund Consolidated Statement of Assets and Liabilities (in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Non-controlled/non-affiliated investments, at fair value (amortized cost of: $ 646,632 and $ 653,701 , respectively) $ 644,639 $ 653,925 Cash and cash equivalents 50,637 21,319 Interest and dividends receivable 5,155 4,247 Deferred financing costs 2,702 2,282 Deferred offering costs 1,199 1,968 Receivable for investments sold or repaid 9,705 5,019 Prepaid expenses and other assets 120 51 Due from Adviser 4,029 2,585 Total assets $ 718,186 $ 691,396 LIABILITIES Credit facilities 404,000 325,600 Accrued interest and other borrowing costs 7,032 5,384 Payable for investments purchased — 55,343 Distributions payable 2,614 2,548 Offering costs payable 148 311 Due to affiliates 122 138 Management fees payable 154 — Accrued professional fees 656 577 Accrued administration expense 459 469 Accrued expenses and other liabilities 484 692 Total liabilities $ 415,669 $ 391,062 Commitments and contingencies (Note 7) NET ASSETS Common shares, par value $ 0.001 (unlimited shares authorized, 12,447,522 and 12,407,361 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) $ 12 $ 12 Paid-in capital in excess of par value 300,579 300,733 Distributable earnings (accumulated losses) 1,926 ( 411 ) Total net assets $ 302,517 $ 300,334 NET ASSET VALUE PER SHARE Class I Shares: Net assets $ 302,415 $ 300,334 Common Shares outstanding ($ 0.001 par value, unlimited shares authorized) 12,443,317 12,407,361 Net asset value per share $ 24.30 $ 24.21 Class D Shares: Net assets $ 102 $ — Common Shares outstanding ($ 0.001 par

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