AB Private Lending Fund Sees Net Asset Growth, Income Surge

TL;DR

**AB Private Lending Fund is growing aggressively, but watch that quarterly income dip – it's a mixed bag for short-term traders.**

AI Summary

AB Private Lending Fund reported a net increase in net assets from operations of $9,216,217 for the nine months ended September 30, 2025, a significant rise from $6,495,550 in the prior year period. Total investment income for the nine months ended September 30, 2025, surged to $22,009,954, up from $13,987,740 in the same period of 2024. However, net investment income after taxes for the three months ended September 30, 2025, decreased to $3,234,543 from $3,544,892 year-over-year. The fund's total investments at fair value increased to $307,479,864 as of September 30, 2025, from $279,777,506 at December 31, 2024. Total liabilities decreased to $173,411,631 from $177,892,175, while total net assets grew to $149,942,252 from $116,526,076 over the same period. The fund issued 1,312,442 common shares for $33,160,262 during the nine months ended September 30, 2025, demonstrating capital raising success. Net cash used for operating activities was ($20,926,267) for the nine months ended September 30, 2025, compared to ($145,157,821) in the prior year, indicating improved operational cash flow management.

Why It Matters

AB Private Lending Fund's substantial growth in total net assets and investment income signals a robust performance in the private credit market, which could attract more investors seeking alternative income streams. The increase in common shares issued suggests strong investor confidence and demand for the fund's offerings, potentially expanding its market footprint. While net investment income saw a quarterly dip, the year-to-date figures remain strong, indicating a resilient business model. This performance could put competitive pressure on other private lending funds, forcing them to innovate or offer more attractive terms to retain and attract capital.

Risk Assessment

Risk Level: medium — The fund's significant reliance on private lending, with 'Investments at Fair Value — 205.07 %' of total assets, exposes it to illiquidity and valuation challenges inherent in private markets. While total liabilities decreased to $173,411,631 from $177,892,175, the fund still carries substantial debt, including a term loan payable of $134,248,310 and a credit facility payable of $29,500,000, which could be sensitive to interest rate fluctuations.

Analyst Insight

Investors should closely monitor the fund's future quarterly net investment income trends to ensure the recent dip is an anomaly and not a sustained decline. Given the growth in net assets and investment income, long-term investors might consider this an attractive opportunity for exposure to private credit, but they should be prepared for the inherent illiquidity and valuation complexities.

Financial Highlights

debt To Equity

1.16

revenue

$22,009,954

operating Margin

N/A

total Assets

$307,479,864

total Debt

$173,411,631

net Income

$9,216,217

eps

$25.30

gross Margin

N/A

cash Position

N/A

revenue Growth

+57.3%

Revenue Breakdown

Key Numbers

• $9.2M — Net increase in net assets from operations (Increased from $6.5M in prior year period for nine months ended September 30, 2025)
• $22.0M — Total investment income (Increased from $14.0M in prior year period for nine months ended September 30, 2025)
• $3.2M — Net investment income after taxes (Q3 2025) (Decreased from $3.5M in Q3 2024)
• $307.5M — Total investments at fair value (Increased from $279.8M at December 31, 2024)
• $149.9M — Total net assets (Increased from $116.5M at December 31, 2024)
• 1,312,442 — Common shares issued (Issued for $33.2M during the nine months ended September 30, 2025)
• ($20.9M) — Net cash used for operating activities (Improved from ($145.2M) in prior year period for nine months ended September 30, 2025)
• $134.2M — Term loan payable (As of September 30, 2025)
• $29.5M — Credit facility payable (As of September 30, 2025)
• $25.30 — Net asset value per share (As of September 30, 2025, down from $25.36 at December 31, 2024)

Key Players & Entities

• AB Private Lending Fund (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• $9,216,217 (dollar_amount) — Net increase in net assets from operations for nine months ended September 30, 2025
• $6,495,550 (dollar_amount) — Net increase in net assets from operations for nine months ended September 30, 2024
• $22,009,954 (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $13,987,740 (dollar_amount) — Total investment income for nine months ended September 30, 2024
• $3,234,543 (dollar_amount) — Net investment income after taxes for three months ended September 30, 2025
• $3,544,892 (dollar_amount) — Net investment income after taxes for three months ended September 30, 2024
• $307,479,864 (dollar_amount) — Total investments at fair value as of September 30, 2025
• $149,942,252 (dollar_amount) — Total net assets as of September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The fund's investments are primarily in floating-rate loans, making it sensitive to changes in interest rates. A significant increase in interest rates could impact the fair value of its investments and potentially increase borrowing costs.
• Credit Risk of Borrowers [high — market]: The fund is exposed to the credit risk of its borrowers. Defaults or deterioration in the credit quality of borrowers could lead to losses on its investments, impacting net asset value and investment income.
• Valuation of Investments [medium — operational]: The fund's investments are reported at fair value, which involves subjective valuations, particularly for illiquid private debt instruments. Inaccurate valuations could misrepresent the fund's financial condition.
• Regulatory Compliance [low — regulatory]: As a private lending fund, it is subject to various financial regulations. Non-compliance could result in penalties, fines, or reputational damage.

Industry Context

The private lending sector continues to see robust demand for capital, driven by businesses seeking flexible financing solutions. However, the industry faces increasing competition and evolving regulatory scrutiny. Funds like AB Private Lending are navigating this landscape by focusing on specialized lending niches and managing credit risk effectively.

Regulatory Implications

The fund operates within a framework of financial regulations. Compliance with reporting requirements and investment restrictions is crucial. Any changes in regulations pertaining to private funds or lending activities could impact the fund's operations and investment strategies.

What Investors Should Do

1. Monitor Net Investment Income Trends
2. Assess Credit Risk Exposure
3. Evaluate Capital Raising Success
4. Review Net Asset Value per Share Trend

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported a net increase in net assets of $9.2M and total investment income of $22.0M, showing strong operational performance and growth in investment income.
• 2025-09-30: As of September 30, 2025 — Total investments at fair value reached $307.5M, and total net assets grew to $149.9M, indicating successful asset growth and capital appreciation.
• 2025-09-30: As of September 30, 2025 — Net asset value per share was $25.30, a slight decrease from $25.36 at year-end 2024, suggesting minor fluctuations in per-share value despite overall asset growth.
• 2025-09-30: Nine months ended September 30, 2025 — Issued 1,312,442 common shares for $33.2M, demonstrating successful capital raising efforts to support fund growth.

Glossary

Net increase in net assets from operations

The total profit or loss generated by the fund's core business activities over a specific period. (Indicates the fund's profitability and ability to grow its asset base through its investment strategies.)

Total investment income

The aggregate income generated from all investments held by the fund, including interest, dividends, and other investment-related earnings. (A key indicator of the fund's ability to generate returns from its portfolio.)

Net investment income after taxes

The income remaining after deducting operating expenses and taxes from the total investment income. (Measures the fund's profitability on an after-tax basis, crucial for understanding distributable income.)

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. (Used to value the fund's investments, impacting reported net assets and performance metrics.)

Net asset value per share

The value of each share of the fund's common stock, calculated by dividing the total net assets by the number of outstanding shares. (A primary metric for investors to assess the per-share value and performance of the fund.)

Year-Over-Year Comparison

The nine months ended September 30, 2025, show a significant increase in total investment income ($22.0M vs $14.0M) and a substantial improvement in net cash used for operating activities ($20.9M vs $145.2M). Total net assets have grown considerably to $149.9M from $116.5M at year-end 2024. However, net investment income after taxes for the third quarter of 2025 saw a slight decrease compared to the prior year's third quarter, and net asset value per share has marginally declined.

Key Financial Figures

• $0.01 — s common shares of beneficial interest, $0.01 par value per share, outstanding as of

Filing Documents

• ck0001982701-20250930.htm (10-Q) — 12361KB
• ck0001982701-ex31_1.htm (EX-31.1) — 17KB
• ck0001982701-ex31_2.htm (EX-31.2) — 17KB
• ck0001982701-ex32_1.htm (EX-32.1) — 15KB
• 0001193125-25-277880.txt ( ) — 53050KB
• ck0001982701-20250930.xsd (EX-101.SCH) — 2214KB
• ck0001982701-20250930_htm.xml (XML) — 12418KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 54 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 68 Item 4.

Controls and Procedures

Controls and Procedures 69 PART II. OTHER INFORMATION 71 Item 1.

Legal Proceedings

Legal Proceedings 71 Item 1A.

Risk Factors

Risk Factors 71 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 71 Item 4. Mine Safety Disclosures 71 Item 5. Other Information 71 Item 6. Exhibits 72

SIGNATURES

SIGNATURES 2 Item1. Consolidated Financial St atements AB Private Lending Fund 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 $ 307,135,099 and $ 279,190,990 , respectively) $ 307,479,864 $ 279,777,506 Total investments, at fair value (amortized cost of $ 307,135,099 and $ 279,190,990 , respectively) 307,479,864 279,777,506 Cash and cash equivalents 7,177,966 11,736,791 Deferred financing cost 1,169,295 1,361,338 Deferred offering cost — 534,442 Interest receivable 1,301,055 943,796 Prepaid expenses — 61,458 Receivable for investments sold 5,489,272 2,920 Receivable due from Adviser 715,183 — Due to/from Feeder 21,248 — Total assets $ 323,353,883 $ 294,418,251 Liabilities Term loan payable (net of debt issuance costs of $ 751,690 and $ 972,384 , respectively) $ 134,248,310 $ 124,027,616 Credit facility payable 29,500,000 47,750,000 Income distribution payable 1,116,387 — Interest and borrowing expenses payable 1,482,109 1,756,459 Professional fees payable 422,008 354,708 Management fees payable 2,146,299 949,652 Incentive fee payable 446,890 692,450 Payable to Adviser — 148,778 Accrued expenses and other liabilities 140,191 47,250 Administrator and custodian fees payable 327,506 161,300 Payable for investments purchased 3,573,772 1,938,188 Transfer agent fees payable 6,659 14,460 Directors' Fees Payable 1,500 — Trustees' fees payable — 51,314 Total Liabilities $ 173,411,631 $ 177,892,175 Commitments and contingencies (see Note 6) Net Assets Common shares, par value $ 0.01 per share (unlimited shares authorized, 5,925,623 and 4,595,221 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectiv

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