Nuveen Churchill BDC V Boosts Capital with $307M Share Issuance

TL;DR

**Nuveen Churchill BDC V is leveraging up and raising capital, signaling aggressive growth but also increased risk in a volatile market.**

AI Summary

Nuveen Churchill BDC V reported net investment income of $7.096 million for the period from July 9, 2025, to September 30, 2025, with total investment income reaching $13.935 million. Expenses totaled $7.864 million, but were reduced to $6.839 million due to $1.025 million in waived incentive fees. The company experienced a net decrease in net assets from operations of $26 thousand due to realized and unrealized losses on investments. Total net assets stood at $307.968 million as of September 30, 2025, primarily driven by the issuance of $307.000 million in common shares. The company's investment portfolio, valued at $798.252 million, is heavily concentrated in debt instruments across various sectors, with significant exposure to High Tech Industries (24.61%), Beverage, Food & Tobacco (24.34%), and Healthcare & Pharmaceuticals (19.57%). Secured borrowings amounted to $507.779 million, indicating substantial leverage. Net asset value per share was $25.08, based on 12,280,040 common shares outstanding as of November 12, 2025.

Why It Matters

For investors, the significant capital raise of $307 million through common share issuance indicates strong investor confidence and provides capital for new investments, potentially expanding the BDC's income-generating assets. However, the reliance on secured borrowings totaling $507.779 million introduces leverage risk, which could amplify returns but also losses. The waiver of $1.025 million in incentive fees suggests management is aligning with shareholder interests during this initial operational period. In a competitive BDC landscape, Nuveen Churchill BDC V's ability to deploy this capital effectively into its targeted sectors like High Tech and Healthcare will be crucial for long-term performance and market positioning.

Risk Assessment

Risk Level: medium — The company exhibits a medium risk level due to its substantial secured borrowings of $507.779 million, representing a significant portion of its total assets of $828.705 million, indicating high leverage. While the net increase in net assets from operations was $7.070 million, the net change in unrealized appreciation (depreciation) on investments was a negative $58 thousand, suggesting some volatility in portfolio valuations.

Analyst Insight

Investors should monitor Nuveen Churchill BDC V's future investment deployment and the performance of its highly leveraged portfolio. Given the significant capital raise and secured borrowings, assess the quality and yield of new investments to ensure they justify the increased leverage and potential for higher returns.

Financial Highlights

debt To Equity

1.65

revenue

$13.935M

operating Margin

50.17%

total Assets

$828.705M

total Debt

$507.779M

net Income

$7.070M

eps

$0.79

gross Margin

N/A

cash Position

$19.960M

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $7.096M — Net Investment Income (Generated from July 9, 2025, to September 30, 2025)
• $307.000M — Common Shares Issued (Significant capital raise during the period)
• $507.779M — Secured Borrowings (Indicates high leverage as of September 30, 2025)
• $798.252M — Investments at Fair Value (Total portfolio size as of September 30, 2025)
• $25.08 — Net Asset Value Per Share (As of September 30, 2025)
• 24.61% — High Tech Industries Allocation (Largest sector concentration in the investment portfolio)
• 24.34% — Beverage, Food & Tobacco Allocation (Second largest sector concentration in the investment portfolio)
• 19.57% — Healthcare & Pharmaceuticals Allocation (Third largest sector concentration in the investment portfolio)
• $1.025M — Incentive Fees Waived (Reduced total expenses for the period)
• 12,280,040 — Common Shares Outstanding (As of November 12, 2025)

Key Players & Entities

• Nuveen Churchill BDC V (company) — registrant
• Churchill Asset Management LLC (company) — investment adviser
• $7.096 million (dollar_amount) — net investment income
• $13.935 million (dollar_amount) — total investment income
• $1.025 million (dollar_amount) — incentive fees waived
• $307.000 million (dollar_amount) — proceeds from issuance of common shares
• $507.779 million (dollar_amount) — secured borrowings
• $798.252 million (dollar_amount) — fair value of non-controlled/non-affiliate company investments
• $25.08 (dollar_amount) — net asset value per share
• September 30, 2025 (date) — end of quarterly period

FAQ

Risk Factors

• Leverage and Debt Obligations [high — financial]: The company has significant secured borrowings of $507.779 million against total assets of $828.705 million. High leverage amplifies both potential gains and losses, increasing financial risk, especially in volatile market conditions.
• Investment Portfolio Concentration [medium — market]: The investment portfolio is heavily concentrated in specific sectors, with High Tech Industries (24.61%), Beverage, Food & Tobacco (24.34%), and Healthcare & Pharmaceuticals (19.57%) representing a substantial portion of the $798.252 million fair value. This concentration exposes the company to sector-specific downturns.
• Net Investment Income Volatility [medium — financial]: While net investment income was $7.096 million, it was reduced by $1.025 million in waived incentive fees. Fluctuations in investment income and potential future incentive fee structures can impact profitability.
• Unrealized Losses on Investments [low — market]: The company experienced a net decrease in net assets of $26 thousand due to realized and unrealized losses on investments, specifically a net change in unrealized depreciation of $58 thousand. This indicates potential downward pressure on asset values.
• Management and Incentive Fees [medium — operational]: Management fees of $1.018 million and incentive fees of $1.025 million (though waived) represent significant operating expenses. Changes in fee structures or performance could impact net income.

Industry Context

Nuveen Churchill BDC V operates within the Business Development Company (BDC) sector, which provides financing to small and mid-sized U.S. companies. The industry is characterized by its role in providing alternative capital solutions, often to companies that may not have access to traditional bank lending. BDCs are sensitive to interest rate environments, credit market conditions, and the overall economic health impacting their portfolio companies.

Regulatory Implications

As a BDC, Nuveen Churchill BDC V is subject to regulations under the Investment Company Act of 1940. This includes requirements regarding asset coverage ratios, dividend distributions, and reporting. Compliance with these regulations is crucial to maintain its status and avoid penalties.

What Investors Should Do

1. Monitor leverage levels closely.
2. Analyze sector concentration risks.
3. Evaluate the sustainability of net investment income.
4. Review the fair value of investments.

Key Dates

• 2025-09-30: End of Reporting Period — Consolidated financial statements reflect the company's financial position and results of operations as of this date.
• 2025-11-12: Common Shares Outstanding Recorded — Establishes the number of shares used for per-share calculations, impacting NAV per share.
• 2025-07-09: Start of Reporting Period — Marks the beginning of the period for which the Statement of Operations is reported.

Glossary

Payment-in-kind interest income

Interest income that is not paid in cash but is instead added to the principal balance of a loan. (Contributes to investment income but does not provide immediate cash flow.)

Net Asset Value (NAV) per share

The value of a company's assets minus its liabilities, divided by the number of outstanding shares. (A key metric for investors to assess the underlying value of their investment in the BDC.)

Secured borrowings

Debt that is backed by specific collateral, providing lenders with a claim on those assets if the borrower defaults. (Indicates the extent of leverage and the specific assets pledged as security.)

Incentive fees waived

A portion of the performance-based fees that the investment advisor has chosen not to collect for the period. (Reduces reported expenses, temporarily boosting net investment income, but may indicate performance challenges or strategic decisions.)

Net realized and unrealized gain (loss) on investments

The total change in the value of investments, including profits or losses from sales (realized) and changes in market value (unrealized). (Reflects the performance of the investment portfolio beyond just income generation.)

Year-Over-Year Comparison

This analysis is based on a single 10-Q filing, and therefore, a comparison to a previous filing is not possible. Key metrics such as revenue growth, margin changes, and the emergence of new risks cannot be assessed without historical data.

Filing Documents

• ncbdcv-20250930.htm (10-Q) — 1733KB
• ex101-investmentadvisoryag.htm (EX-10.1) — 76KB
• ex102-administrationagreem.htm (EX-10.2) — 56KB
• ex103-custodyagreementbdcv.htm (EX-10.3) — 275KB
• ex104-transferagentagreeme.htm (EX-10.4) — 84KB
• ex105-incentivefeewaiverag.htm (EX-10.5) — 24KB
• ex311-churchillassetmanage.htm (EX-31.1) — 10KB
• ex312-churchillassetmanage.htm (EX-31.2) — 10KB
• ex32-churchillassetmanagem.htm (EX-32) — 7KB
• usbank.jpg (GRAPHIC) — 4KB
• 0002071136-25-000009.txt ( ) — 8524KB
• ncbdcv-20250930.xsd (EX-101.SCH) — 51KB
• ncbdcv-20250930_cal.xml (EX-101.CAL) — 51KB
• ncbdcv-20250930_def.xml (EX-101.DEF) — 301KB
• ncbdcv-20250930_lab.xml (EX-101.LAB) — 567KB
• ncbdcv-20250930_pre.xml (EX-101.PRE) — 428KB
• ncbdcv-20250930_htm.xml (XML) — 1195KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 43 PART II Other Information 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

FORWARD-LOOKING STATEMENTS

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 based on current expectations, estimates and projections about the Fund, our prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "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 without limitation: our future operating results; our business prospects and the prospects of our portfolio companies; the dependence of our future success on the general economy and its impact on the industries in which we invest; changes in the markets in which we invest and changes in financial and lending markets generally; the impact of a protracted decline in the liquidity of credit markets on our business; the impact of increased competition; an economic downturn or recessions and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of interest rate volatility on our business, our financial condition and our portfolio companies; the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy; the level of inflation and its im

- Financial Information

Part I - Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) NUVEEN CHURCHILL BDC V CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (dollars in thousands, except share and per share data) September 30, 2025 Assets Investments Non-controlled/non-affiliate company investments, at fair value (cost of $ 798,310 ) $ 798,252 Cash 3,007 Cash equivalents 16,953 Interest receivable 9,183 Receivable for investments sold 859 Other assets 451 Total assets $ 828,705 Liabilities Secured borrowings (net of $ 221 deferred financing costs) (See Note 6 ) $ 507,779 Interest payable 5,302 Management fees payable 1,018 Distributions payable 5,894 Board of Trustees' fees payable 86 Accounts payable and accrued expenses 658 Total liabilities $ 520,737 Commitments and contingencies (See Note 7 ) Net Assets: (See Note 8 ) Common shares of beneficial interest, par value $ 0.01 per share, unlimited shares authorized, 12,280,040 common shares issued and outstanding $ 123 Paid-in-capital in excess of par value 306,878 Total distributable earnings (loss) 967 Total net assets $ 307,968 Total liabilities and net assets $ 828,705 Net asset value per share (See Note 9 ) $ 25.08 The accompanying notes are an integral part of these consolidated financial statements. 3 NUVEEN CHURCHILL BDC V CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (dollars in thousands, except share and per share data) Period from July 9, 2025 to September 30, 2025 Investment income: Non-controlled/non-affiliated company investments: Interest income $ 12,897 Payment-in-kind interest income 538 Dividend income 398 Other income 102 Total investment income 13,935 Expenses: Interest and debt financing expenses 5,403 Management fees (See Note 5 ) 1,018 Income based incentive fees (See Note 5 ) 1,025 Professional fees 191 Board of Trustees' fees 86 Administration fees 106 Other general and administrative expenses 35 Total expenses 7,864 Incentive fees wa

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