LGAM Private Credit Assets Surge 46% Amidst Increased Leverage

TL;DR

**LGAM is growing fast but watch the leverage and declining NAV per unit – it's a high-risk, high-reward play.**

AI Summary

LGAM Private Credit LLC reported a significant increase in total assets, reaching $370,259 thousand as of September 30, 2025, up from $253,683 thousand at December 31, 2024, representing a 46% growth. Total investments at fair value also rose substantially to $352,762 thousand from $241,840 thousand over the same period. The company's net investment income for the nine months ended September 30, 2025, increased to $10,002 thousand, compared to $8,695 thousand for the same period in 2024, an increase of 14.9%. However, net realized and unrealized loss widened to $(905) thousand for the nine months ended September 30, 2025, from a gain of $206 thousand in the prior year. Debt increased to $172,700 thousand from $105,600 thousand, reflecting increased leverage. Net asset value per unit slightly decreased to $20.06 from $20.29. The company issued 10,056,977 Common Units outstanding as of November 12, 2025, indicating significant capital raising activities.

Why It Matters

This filing reveals LGAM Private Credit LLC's aggressive growth strategy, with a substantial 46% increase in total assets driven by new investments and increased debt. For investors, this signals potential for higher returns but also elevated risk due to increased leverage. Employees and customers might see expanded opportunities as the company scales its operations. In the competitive private credit market, this growth positions LGAM to capture a larger share, but the slight dip in NAV per unit and widening unrealized losses warrant close attention, suggesting potential valuation pressures or credit quality concerns in its portfolio.

Risk Assessment

Risk Level: high — The company's debt increased by 63.5% from $105,600 thousand at December 31, 2024, to $172,700 thousand at September 30, 2025, significantly increasing its leverage. Additionally, the net asset value per unit decreased from $20.29 to $20.06, and net realized and unrealized losses widened to $(905) thousand for the nine months ended September 30, 2025, indicating potential portfolio valuation challenges.

Analyst Insight

Investors should exercise caution and conduct thorough due diligence on LGAM Private Credit LLC's underlying investment portfolio. While growth is evident, the substantial increase in debt and the slight decline in NAV per unit suggest a need to scrutinize credit quality and interest rate sensitivity. Consider if the increased risk aligns with your investment objectives.

Financial Highlights

debt To Equity

1.03

revenue

$10,002

total Assets

$370,259

total Debt

$172,700

net Income

$10,002

revenue Growth

+14.9%

Key Numbers

• $370,259 — Total assets (Increased 46% from $253,683 thousand at December 31, 2024)
• $352,762 — Total investments at fair value (Increased from $241,840 thousand at December 31, 2024)
• $10,002 — Net investment income (For the nine months ended September 30, 2025, up 14.9% from $8,695 thousand in 2024)
• $(905) — Net realized and unrealized gain (loss) (For the nine months ended September 30, 2025, a widening loss from a $206 thousand gain in 2024)
• $172,700 — Debt (Increased 63.5% from $105,600 thousand at December 31, 2024)
• $20.06 — Net asset value per unit (Decreased from $20.29 at December 31, 2024)
• 10,056,977 — Common Units outstanding (As of November 12, 2025)
• $50,294 — Proceeds from issuance of Common units (For the nine months ended September 30, 2025)
• $7,472 — Interest and other financing expenses (For the nine months ended September 30, 2025, up from $3,944 thousand in 2024)
• $1,414 — Income based incentive fees (For the nine months ended September 30, 2025, up from $1,056 thousand in 2024)

Key Players & Entities

• LGAM Private Credit LLC (company) — registrant
• Securities and Exchange Commission (regulator) — filing oversight
• Mantech International CP (company) — debt investment
• Sonny's Enterprises, LLC (company) — debt investment
• COP Collisionright Parent, LLC (company) — debt investment
• Drivecentric Holdings, LLC (company) — debt investment
• Vehlo Purchaser, LLC (company) — debt investment
• Vamos Bidco, Inc. (company) — debt investment
• Project Potter Buyer, LLC (company) — debt investment
• Tank Holding Corp. (company) — debt investment

FAQ

Risk Factors

• Increased Leverage and Debt Servicing [high — financial]: The company's debt increased by 63.5% to $172,700 thousand from $105,600 thousand at December 31, 2024. This significant increase in leverage, coupled with a rise in interest and other financing expenses to $7,472 thousand for the nine months ended September 30, 2025 (up from $3,944 thousand in 2024), heightens the financial risk associated with debt servicing and interest rate fluctuations.
• Widening Net Realized and Unrealized Loss [medium — financial]: The company experienced a net realized and unrealized loss of $(905) thousand for the nine months ended September 30, 2025, a significant deterioration from a gain of $206 thousand in the prior year. This indicates potential underperformance in investment valuations or increased market volatility impacting the portfolio.
• Slight Decrease in Net Asset Value Per Unit [medium — financial]: Despite overall asset growth, the net asset value per unit slightly decreased to $20.06 from $20.29 at December 31, 2024. This suggests that the growth in assets may not have kept pace with the increase in liabilities or the issuance of new units, impacting per-unit value.
• Market Volatility and Investment Performance [medium — market]: The widening net realized and unrealized loss indicates exposure to market volatility. Fluctuations in the fair value of investments, which constitute the majority of assets ($352,762 thousand), can significantly impact the company's financial performance and net asset value.
• Growth in Incentive Fees [low — operational]: Income-based incentive fees increased to $1,414 thousand for the nine months ended September 30, 2025, up from $1,056 thousand in the prior year. While indicative of potential performance, a significant increase in fees can also impact net income available to common unitholders.

Industry Context

LGAM Private Credit LLC operates in the private credit market, which has seen substantial growth driven by demand for alternative financing solutions. The industry is characterized by increasing competition, evolving regulatory landscapes, and a focus on specialized lending strategies. Companies in this sector often leverage their capital to provide debt financing to middle-market companies, seeking attractive risk-adjusted returns.

Regulatory Implications

As a private credit provider, LGAM Private Credit LLC is subject to financial regulations that govern investment funds and lending activities. Changes in interest rate policies, capital requirements, and disclosure mandates can impact its operational costs and investment strategies. Compliance with these regulations is crucial to maintaining investor confidence and market access.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Analyze the drivers of the widening net realized and unrealized loss.
3. Evaluate the impact of capital raising on per-unit NAV.
4. Assess the sustainability of net investment income growth.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period for which key financial results like net investment income, net realized/unrealized loss, and expenses are reported, showing growth in income but widening losses and increased expenses.
• 2025-11-12: Common Units outstanding as of November 12, 2025 — Indicates significant capital raising activities, with 10,056,977 Common Units outstanding, likely contributing to the growth in assets and debt.
• 2024-12-31: Total assets and debt as of December 31, 2024 — Provides the baseline for comparison, showing substantial growth in assets (46%) and debt (63.5%) by September 30, 2025.

Glossary

Net investment income

The income generated from a company's investments after deducting investment-related expenses. (Key measure of the profitability of the company's core lending activities, showing an increase to $10,002 thousand.)

Net realized and unrealized gain (loss)

The sum of profits or losses from selling investments (realized) and changes in the market value of investments still held (unrealized). (Indicates the impact of market fluctuations and investment performance on the company's overall financial results, showing a widening loss of $(905) thousand.)

Net asset value per unit

The value of a company's assets minus its liabilities, divided by the number of outstanding units. (Measures the per-unit value for investors, which slightly decreased to $20.06, despite asset growth.)

Common Units outstanding

The total number of common units issued and held by investors. (Reflects the capital structure and potential dilution for existing investors, with 10,056,977 units outstanding indicating significant capital raising.)

Year-Over-Year Comparison

Compared to the prior year, LGAM Private Credit LLC has demonstrated significant growth in total assets, up 46% to $370,259 thousand, and total investments at fair value. Net investment income also saw a healthy increase of 14.9% to $10,002 thousand. However, this growth has been accompanied by a substantial increase in debt, rising 63.5% to $172,700 thousand, and a concerning shift from a net realized and unrealized gain to a loss of $(905) thousand. Furthermore, the net asset value per unit experienced a slight decline, indicating that the increased leverage and investment performance did not fully translate to per-unit value appreciation.

Filing Documents

• ck0001983514-20250930.htm (10-Q) — 14257KB
• ck0001983514-ex31_1.htm (EX-31.1) — 13KB
• ck0001983514-ex31_2.htm (EX-31.2) — 13KB
• ck0001983514-ex32_1.htm (EX-32.1) — 7KB
• ck0001983514-ex32_2.htm (EX-32.2) — 7KB
• 0001193125-25-277611.txt ( ) — 37554KB
• ck0001983514-20250930.xsd (EX-101.SCH) — 1224KB
• ck0001983514-20250930_htm.xml (XML) — 9929KB

Financial Information

Part I. Financial Information Item 1. Consolidated Financial Statements (Unaudited) Consolidated Statements of Financial Condition 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Members' Capital 5 Consolidated Statements of Cash Flows 6 Consolidated Schedules of Investments 7 Notes to the Consolidated Financial Statements 34 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 48 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 4.

Controls and Procedures

Controls and Procedures 58

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 59 Item 1A.

Risk Factors

Risk Factors 59 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults Upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 60

SIGNATURES

SIGNATURES 61 2 Table of Contents LGAM Private Credit LLC Consolidated Sta tements of Financial Condition (In thousands, except unit and per unit amounts) As of September 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets Non-controlled/non-affiliated investments, at fair value (amortized cost of $ 349,817 and $ 241,028 ) $ 350,550 $ 241,840 Non-controlled/affiliated investments, at fair value (amortized cost of $ 2,293 and $ 0 ) 2,212 — Total investments, at fair value (amortized cost of $ 352,110 and $ 241,028 ) 352,762 241,840 Cash and cash equivalents 2,806 2,187 Investments in unaffiliated money market fund (cost of $ 6,558 and $ 5,289 ) 6,558 5,289 Deferred financing costs 2,300 2,693 Interest and dividend receivable from non-controlled/non-affiliated investments 2,007 1,631 Interest and dividend receivable from non-controlled/affiliated investments 19 — Receivable for investments sold/repaid 1,018 32 Other assets 2,789 11 Total assets 370,259 253,683 Liabilities Debt 172,700 105,600 Payable for investments purchased 277 — Payable to affiliates (Note 3) 211 59 Distributions payable 1,324 1,111 Management fees payable 449 333 Capital gains based incentive fee payable — 103 Interest payable 1,754 1,375 Income based incentive fees payable 537 429 Accrued expenses and other liabilities 361 545 Total liabilities 177,613 109,555 Commitments and contingencies (Note 7) Members' Capital Common Units, par value $ 0.001 per share ( 9,601,786 and 7,101,860 units issued and outstanding) 10 7 Paid-in capital in excess of par value 192,790 142,499 Distributable earnings (accumulated losses) ( 154 ) 1,622 Total members' capital $ 192,646 $ 144,128 Total liabilities and members' capital $ 370,259 $ 253,683 Net asset value per unit $ 20.06 $ 20.29 The accompanying

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