Lord Abbett Private Credit Fund Doubles Assets, Boosts Income

TL;DR

**Lord Abbett Private Credit Fund is on a tear, doubling assets and income, making it a strong play in the booming private credit market.**

AI Summary

Lord Abbett Private Credit Fund reported a significant increase in total assets, reaching $980,917 thousand as of September 30, 2025, up from $591,972 thousand at December 31, 2024. This growth was primarily driven by a substantial increase in investments at fair value, which rose from $472,588 thousand to $950,464 thousand. The fund's net assets also more than doubled, climbing to $419,441 thousand from $203,539 thousand. For the nine months ended September 30, 2025, total investment income surged to $55,671 thousand, a substantial increase from $12,022 thousand for the comparable period in 2024. Net investment income for the nine months ended September 30, 2025, was $26,614 thousand, compared to $5,631 thousand for the prior year's period. The fund's debt increased to $548,416 thousand from $382,230 thousand, reflecting increased leverage to finance its expanded investment portfolio. Key risks include general interest rate environment changes and dependence on portfolio companies' success, as outlined in the forward-looking statements. The strategic outlook appears focused on continued investment growth in private credit.

Why It Matters

This substantial growth in assets and investment income signals strong performance and increased market presence for Lord Abbett Private Credit Fund, making it a more significant player in the private credit space. For investors, the doubling of net assets to $419,441 thousand and a net asset value per share of $25.23 indicates robust capital appreciation and a healthy return profile. Employees of Lord Abbett may see increased opportunities and stability due to the fund's expansion. Customers of the fund's portfolio companies benefit from continued access to private capital, fostering business growth. In the broader market, this expansion highlights the increasing demand and liquidity in private credit, potentially intensifying competition among alternative lenders.

Risk Assessment

Risk Level: medium — The fund's debt increased significantly to $548,416 thousand from $382,230 thousand, indicating higher leverage, which amplifies both gains and losses. Additionally, the filing explicitly mentions risks associated with 'changes in the general interest rate environment' and 'the dependence of our future success on the general economy and its effect on the industries in which we invest,' suggesting sensitivity to macroeconomic shifts.

Analyst Insight

Investors should consider Lord Abbett Private Credit Fund's strong growth in assets and income as a positive indicator, but also acknowledge the increased leverage. A deeper dive into the specific credit quality of its expanded portfolio, particularly the non-controlled/non-affiliated investments totaling $892,133 thousand, is warranted to assess the underlying risk of its substantial debt holdings.

Financial Highlights

debt To Equity

1.31

revenue

$55,671 thousand

operating Margin

N/A

total Assets

$980,917 thousand

total Debt

$548,416 thousand

net Income

$26,614 thousand

eps

$25.23

gross Margin

N/A

cash Position

$24,151 thousand

revenue Growth

+363.1%

Revenue Breakdown

Key Numbers

• $980,917 thousand — Total assets (Increased from $591,972 thousand at December 31, 2024)
• $950,464 thousand — Total investments at fair value (Increased from $472,588 thousand at December 31, 2024)
• $419,441 thousand — Total net assets (Increased from $203,539 thousand at December 31, 2024)
• $55,671 thousand — Total investment income (For the nine months ended September 30, 2025, up from $12,022 thousand in 2024)
• $26,614 thousand — Net investment income (For the nine months ended September 30, 2025, up from $5,631 thousand in 2024)
• $548,416 thousand — Debt (Increased from $382,230 thousand at December 31, 2024)
• $25.23 — Net asset value per share (As of September 30, 2025, slightly up from $25.22 at December 31, 2024)
• 17,988,807.13 — Shares of common stock outstanding (As of November 13, 2025)

Key Players & Entities

• Lord Abbett Private Credit Fund (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• Adviser (company) — Registered investment adviser
• Delaware (company) — State of incorporation
• Jersey City (company) — Principal executive offices location
• Accel International Holdings Inc (company) — Portfolio company
• Applied Aerospace Structures Corp. (company) — Portfolio company
• ICAT Intermediate Holdings LLC (company) — Portfolio company
• RJW Logistics Group, Inc (company) — Portfolio company
• Spark Buyer, LLC (company) — Portfolio company

FAQ

Risk Factors

• Interest Rate Sensitivity [high — financial]: The fund's performance is sensitive to changes in the general interest rate environment. Rising rates can increase borrowing costs for the fund and its portfolio companies, potentially impacting profitability and investment returns. Conversely, falling rates could reduce investment income.
• Leverage Risk [high — financial]: The fund has increased its debt to $548,416 thousand from $382,230 thousand to finance its expanded investment portfolio. Higher leverage amplifies both potential gains and losses, increasing financial risk.
• Credit Risk of Portfolio Companies [high — financial]: The success of the fund is heavily dependent on the financial performance and creditworthiness of its portfolio companies. Defaults or underperformance by these companies can lead to significant investment losses.
• Valuation Risk [medium — market]: Investments are reported at fair value, which involves subjective valuations, especially for private credit instruments. Changes in market conditions or valuation methodologies can lead to significant fluctuations in reported asset values.
• Dependence on Management [medium — operational]: The fund relies on the expertise of Lord Abbett's investment management team. Any disruption in key personnel or investment strategy could negatively impact performance.
• Regulatory Changes [low — regulatory]: Changes in regulations affecting private credit funds, investment advisers, or the financial markets could impact the fund's operations, compliance costs, and investment strategies.

Industry Context

The private credit market continues to expand, driven by demand for flexible financing solutions from middle-market companies and a search for yield by investors. Competition is increasing, with more funds entering the space, leading to a focus on specialized strategies and strong underwriting capabilities. Regulatory scrutiny is also a growing factor, requiring robust compliance frameworks.

Regulatory Implications

As a registered investment company, the fund is subject to regulations under the Investment Company Act of 1940. Changes in accounting standards or regulatory requirements for private funds could impact reporting and operational procedures. Compliance with disclosure requirements and investor protection rules remains paramount.

What Investors Should Do

1. Monitor leverage levels
2. Analyze investment portfolio diversification
3. Evaluate interest rate sensitivity
4. Review fee structure

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing substantial growth in assets, investments, and income.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison, showing significantly smaller asset base and debt levels.
• 2024-02-23: Commencement of Operations — Marks the beginning of the fund's operational history, providing a starting point for performance tracking.

Glossary

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. (Crucial for valuing the fund's private credit investments, which are not actively traded.)

Net Asset Value (NAV) per Share

The total value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (Key metric for investors to assess the per-share value and performance of the fund.)

Leverage

The use of borrowed money to increase the potential return on an investment. In this case, the fund uses debt to finance its investments. (The fund has significantly increased its leverage to expand its investment portfolio.)

Interest Rate Spread

The difference between the interest rate charged on a loan and the benchmark interest rate (e.g., SOFR). (Indicates the premium the fund earns over the base rate for its private credit investments.)

Term Loan

A type of loan that is repaid over a set period of time, typically with fixed or floating interest rates. (A common investment instrument for private credit funds.)

Delayed Draw

A loan facility that allows the borrower to draw down funds over time, up to a specified limit, as needed. (Represents a commitment of capital by the fund that may be drawn down by portfolio companies.)

Revolver

A revolving credit facility that allows a borrower to draw, repay, and redraw funds up to a certain limit over a specified period. (Provides flexibility for portfolio companies' working capital needs and can be a source of ongoing fee income for the fund.)

Year-Over-Year Comparison

The Lord Abbett Private Credit Fund has experienced dramatic growth in its most recent reporting period compared to the prior year. Total assets have surged from $591,972 thousand to $980,917 thousand, primarily driven by a near doubling of investments at fair value to $950,464 thousand. This expansion was financed by a substantial increase in debt, which rose to $548,416 thousand. Consequently, total investment income for the nine months more than quadrupled to $55,671 thousand, leading to a similar proportional increase in net investment income to $26,614 thousand. New risks related to the increased leverage and the scale of the investment portfolio are now more prominent.

Key Financial Figures

• $0.01 — d 17,988,807.13 shares of common stock, $0.01 par value per share, outstanding. Lord

Filing Documents

• c114200_10q-ixbrl.htm (10-Q) — 2059KB
• c114200_ex31-1.htm (EX-31.1) — 10KB
• c114200_ex31-2.htm (EX-31.2) — 9KB
• c114200_ex32-1.htm (EX-32.1) — 3KB
• c114200_ex32-2.htm (EX-32.2) — 3KB
• 0000930413-25-003431.txt ( ) — 11572KB
• lordabbett-20250930.xsd (EX-101.SCH) — 92KB
• lordabbett-20250930_cal.xml (EX-101.CAL) — 45KB
• lordabbett-20250930_def.xml (EX-101.DEF) — 449KB
• lordabbett-20250930_lab.xml (EX-101.LAB) — 544KB
• lordabbett-20250930_pre.xml (EX-101.PRE) — 333KB
• c114200_10q-ixbrl_htm.xml (XML) — 3204KB

Financial Information

Part I. Financial Information Item 1. CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Consolidated Statements of Assets and Liabilities (Unaudited) 4 Consolidated Statements of Operations (Unaudited) 5 Consolidated Statements of Changes in Net Assets (Unaudited) 6 Consolidated Statements of Cash Flows (Unaudited) 7 Consolidated Schedules of Investments (Unaudited) 8 Notes to the Consolidated Financial 18 Item 2.

Management's Discussion and Analysis

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 3.

Quantitative and Qualitative Disclosures

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 49

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50

Signatures

Signatures 51 1 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and you should not place undue reliance on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and opinions and our assumptions. We are externally managed by the Adviser, a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "potential," "predicts," and variations of these words and similar expressions are intended to identify forward-looking statements. 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, including: our future operating results; our business prospects and the prospects of our portfolio companies; risk associated with possible disruptions in our operations or the economy generally; changes in the general interest rate environment; general economic, political and industry trends and other external factors, including uncertainty surrounding the financial and political stability of the United States and other countries; our contractual arrangements and relationships with third parties; actual and potential conflicts of interest with our Adviser and its affiliates; the dependence of our future success on the general

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements September 30, 2025 December 31, 2024 ASSETS Investments at fair value Non-controlled/non-affiliated investments (cost $ 890,933 , $ 438,194 , respectively) $ 892,133 $ 439,367 Controlled/affiliated investments (cost $ 58,092 , $ 33,224 , respectively) 58,331 33,221 Total investments at fair value (cost of $ 949,025 , $ 471,418 , respectively) $ 950,464 $ 472,588 Cash and cash equivalents 24,151 113,767 Interest receivable from non-controlled/non-affiliated investments 3,689 4,508 Dividend receivable from controlled/affiliated investments 1,930 278 Due from affiliate 593 683 Receivable for investments sold 66 81 Deferred offering costs - 62 Other assets 24 5 Total assets $ 980,917 $ 591,972 LIABILITIES Debt (net of deferred financing costs $ 4,584 and $ 3,652 respectively) (Note 5) $ 548,416 $ 382,230 Interest payable 6,358 3,806 Distribution payable 3,658 - Income incentive fees payable 1,606 713 Professional fees payable 855 313 Management fees payable 348 - Administration fees payable 87 78 Accrued expenses and other liabilities 79 60 Capital gains incentive fees payable 69 36 Due to affiliate - 1,197 Total liabilities $ 561,476 $ 388,433 Total net assets $ 419,441 $ 203,539 Commitments and contingencies (Note 6) NET ASSETS Common shares, $ 0.01 par value ( 16,627,096 and 8,071,106 shares issued and outstanding, respectively, unlimited number of authorized shares) $ 166 $ 81 Paid in capital in excess of par value 417,641 202,288 Total distributable earnings /(accumulated loss) 1,634 1,170 Total net assets $ 419,441 $ 203,539 Total liabilities and net assets $ 980,917 $ 591,972 Net asset value per share $ 25.23 $ 25.22 4 The accompanying notes are an integral part of these Consolidated Financial Statements. Lord Abbett Private Credit Fund Consolidated Statements of Operations (Unaudited) (in

Financial Statements

Financial Statements. Lord Abbett Private Credit Fund Consolidated Schedule of Investments (Unaudited) (Continued) September 30, 2025 (in thousands, except share amounts, per share data, percentages, and as otherwise noted) Investments (1) Reference Rate and Spread (2) Interest Rate (2) Maturity Date Par Amount/ Common Units Cost (3) Fair Value % of Net Assets United Flow Technologies Intermediate Holdco II, LLC (Term Loan) 3M S + 5.25 % 9.25 % 6/23/2031 $ 11,880 $ 11,729 $ 11,835 2.82 % United Flow Technologies Intermediate Holdco II, LLC (Delayed Draw) 3M S + 5.25 % 9.31 % 6/23/2031 9,954 9,830 9,916 2.36 United Flow Technologies Intermediate Holdco II, LLC (Delayed Draw) (7) 3M S + 5.25 % 9.45 % 6/23/2031 2,325 2,265 2,288 0.55 United Flow Technologies Intermediate Holdco II, LLC (Revolver) (7) 3M S + 5.25 % N/A 6/21/2030 — ( 23 ) ( 8 ) — 95,341 95,488 22.77 Construction & Engineering Qualus Power Services Corp (Delayed Draw) (7) 3M S + 5.00 % 9.32 % 3/27/2028 8,825 8,701 8,825 2.10 8,701 8,825 2.10 Containers & Packaging Schoeneck Containers, LLC (Term Loan) 1M S + 4.10 % 8.38 % 5/7/2028 9,147 9,147 9,147 2.18 Schoeneck Containers, LLC (Delayed Draw) 1M S + 4.10 % 8.38 % 5/7/2028 4,672 4,672 4,672 1.11 Schoeneck Containers, LLC (Revolver) (7) 1M S + 4.10 % 8.38 % 5/7/2028 273 273 273 0.07 14,092 14,092 3.36 Consumer Discretionary Spotless Brands, LLC (Delayed Draw) (7) 3M S + 1.00 % N/A 7/25/2028 — ( 81 ) ( 81 ) ( 0.02 ) ( 81 ) ( 81 ) ( 0.02 ) Electrical Equipment Spark Buyer, LLC (Term Loan) 3M S + 5.25 % 9.44 % 10/15/2031 46,523 45,897 44,953 10.72 Spark Buyer, LLC (Delayed Draw) (7) 3M S + 5.25 % N/A 10/15/2031 — ( 122 ) ( 633 ) ( 0.15 ) Spark Buyer, LLC (Revolver) (7) 3M S + 5.25 % 9.24 % 10/15/2031 3,188 3,066 2,870 0.68 48,841 47,190 11.25 Health Care Equipment & Supplies MGS MFG. Group, Inc. (Term Loan) 1M S + 4.50 % 8.76 % 5/31/2027 3,316 3,316 3,316 0.79 MGS MFG. Group, Inc. (Delayed Draw) 1M S + 4.50

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