Bain Capital Private Credit's Net Assets Soar on Robust Investment Income

TL;DR

**Bain Capital Private Credit is crushing it, with net assets and income exploding, making it a solid play in the private credit boom.**

AI Summary

Bain Capital Private Credit reported a significant increase in net assets and investment income for the nine months ended September 30, 2025. Total investment income surged to $88,338 thousand, up from $33,722 thousand in the prior year period, driven primarily by interest from non-controlled/non-affiliate investments, which reached $72,927 thousand. Net investment income also saw a substantial rise to $41,357 thousand, compared to $16,347 thousand in 2024. The company's total assets nearly doubled to $1,462,681 thousand as of September 30, 2025, from $752,527 thousand at December 31, 2024, largely due to an increase in investments at fair value to $1,367,369 thousand. Debt also increased significantly to $671,033 thousand from $378,101 thousand. Net assets per share for Class I shares increased to $25.90 from $25.62. The company experienced a net increase in net assets from operations of $48,363 thousand for the nine months ended September 30, 2025, compared to $16,819 thousand in the same period of 2024.

Why It Matters

This strong performance indicates Bain Capital Private Credit is effectively deploying capital and generating significant returns, which is crucial for investors seeking income and capital appreciation in the private credit space. The substantial increase in assets and investment income suggests a growing footprint and competitive edge in a market where direct lending is increasingly attractive. For employees, this growth could signal stability and expansion opportunities. Customers, primarily the portfolio companies, benefit from continued access to capital. The broader market sees a healthy, expanding player in the private credit sector, potentially influencing lending rates and investment strategies.

Risk Assessment

Risk Level: medium — While the company shows strong growth, the significant increase in debt to $671,033 thousand from $378,101 thousand, alongside a substantial rise in investments, indicates increased leverage. The nature of private credit investments also carries inherent illiquidity and valuation risks, as highlighted by the 'Net change in unrealized appreciation on forward currency exchange contracts' showing a negative $4,625 thousand for the nine months ended September 30, 2025.

Analyst Insight

Investors should consider Bain Capital Private Credit's strong income generation and asset growth as a positive indicator for long-term holdings, but remain mindful of the increased debt levels. Monitor future filings for trends in debt-to-equity ratios and the performance of underlying investments, especially in a rising interest rate environment.

Financial Highlights

debt To Equity

0.88

revenue

$88,338 thousand

operating Margin

N/A%

total Assets

$1,462,681 thousand

total Debt

$671,033 thousand

net Income

$41,357 thousand

eps

$25.90

gross Margin

N/A%

cash Position

$38,270 thousand

revenue Growth

+162%

Revenue Breakdown

Key Numbers

• $88,338 thousand — Total investment income (Increased from $33,722 thousand for the nine months ended September 30, 2024)
• $41,357 thousand — Net investment income (Increased from $16,347 thousand for the nine months ended September 30, 2024)
• $1,462,681 thousand — Total Assets (As of September 30, 2025, up from $752,527 thousand at December 31, 2024)
• $1,367,369 thousand — Investments at fair value (As of September 30, 2025, up from $717,300 thousand at December 31, 2024)
• $671,033 thousand — Debt (As of September 30, 2025, up from $378,101 thousand at December 31, 2024)
• $25.90 — Net Asset Value Per Share (Class I) (As of September 30, 2025, up from $25.62 at December 31, 2024)
• $48,363 thousand — Net Increase in Net Assets Resulting from Operations (For the nine months ended September 30, 2025, up from $16,819 thousand in 2024)
• $393,788 thousand — Proceeds from Common Shares sold (For the nine months ended September 30, 2025, up from $147,686 thousand in 2024)
• $762,247 thousand — Total Net Assets (As of September 30, 2025, up from $358,434 thousand at December 31, 2024)
• $26,853 thousand — Interest and debt financing expenses (For the nine months ended September 30, 2025, up from $10,714 thousand in 2024)

Key Players & Entities

• Bain Capital Private Credit (company) — Registrant
• BCPC Advisors, LP (company) — Advisor
• Bain Capital Credit, LP (company) — Affiliated adviser
• Securities and Exchange Commission (regulator) — Filing oversight
• Delaware (company) — State of Incorporation
• 200 Clarendon Street, 37th Floor, Boston, MA 02116 (company) — Principal Executive Office Address
• ATS (company) — Portfolio Company (Aerospace & Defense)
• BTX Precision (company) — Portfolio Company (Aerospace & Defense)
• Heads Up Technologies, Inc. (company) — Portfolio Company (Aerospace & Defense)
• AgroFresh Solutions (company) — Portfolio Company (Beverage, Food & Tobacco)

FAQ

Risk Factors

• Increased Debt Levels [high — financial]: Total debt increased significantly to $671,033 thousand as of September 30, 2025, from $378,101 thousand at December 31, 2024. This substantial leverage amplifies both potential returns and financial risks.
• Investment Valuation Fluctuations [medium — market]: Investments are reported at fair value, totaling $1,367,369 thousand as of September 30, 2025. Changes in market conditions can lead to significant unrealized gains or losses, impacting net asset value.
• Rising Interest Expenses [medium — financial]: Interest and debt financing expenses rose to $26,853 thousand for the nine months ended September 30, 2025, from $10,714 thousand in the prior year. Higher interest costs can reduce net investment income, especially with increased debt.
• Dependence on Investment Performance [high — operational]: The company's financial results are heavily reliant on the performance of its investments, particularly interest income from non-controlled/non-affiliate investments which generated $72,927 thousand. Underperformance in these assets would directly impact profitability.
• Regulatory Compliance [medium — regulatory]: As a private credit firm, Bain Capital Private Credit is subject to various financial regulations. Changes in these regulations could impact operations, investment strategies, and profitability.

Industry Context

The private credit market continues to see robust activity, driven by demand for flexible financing solutions and a more constrained traditional banking sector. Firms like Bain Capital Private Credit are well-positioned to capitalize on this by providing capital to a wide range of companies. Competition remains intense, with a growing number of specialized funds seeking yield.

Regulatory Implications

The private credit industry operates within an evolving regulatory landscape. Increased scrutiny on non-bank financial institutions could lead to new compliance requirements or restrictions on certain investment activities, potentially impacting operational costs and strategies.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Analyze the drivers of investment income growth.
3. Assess the impact of fair value accounting on net assets.
4. Evaluate capital raising activities.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period of significant growth in investment income, net assets, and total assets.
• 2025-09-30: Total Assets reached $1,462,681 thousand — Nearly doubled from December 31, 2024, indicating substantial business expansion.
• 2025-09-30: Total Net Assets reached $762,247 thousand — More than doubled from December 31, 2024, reflecting strong operational performance and capital inflows.
• 2024-12-31: Total Assets were $752,527 thousand — Baseline for comparison showing significant growth in the subsequent period.

Glossary

Non-controlled/non-affiliate investment

Investments where Bain Capital Private Credit does not have significant influence or control over the investee company, and the investee is not related through common control. (This category generated the vast majority of the company's investment income ($72,927 thousand), highlighting its importance to financial performance.)

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. (Investments are reported at fair value ($1,367,369 thousand), meaning their reported value can fluctuate with market conditions.)

Paid-in-capital in excess of par value

The amount received from issuing shares above their nominal par value. (This account increased significantly to $748,807 thousand, reflecting substantial capital raised through share issuances.)

Accumulated distributable earnings

The cumulative net income earned by the company that has not yet been distributed to shareholders. (This account grew to $13,146 thousand, indicating retained earnings from operations.)

Amortized cost

The initial cost of a financial asset or liability, adjusted over time for principal repayments, amortization of premium or discount, and impairment losses. (Provided as a reference for investments valued at fair value, showing the difference between book value and market value.)

Year-Over-Year Comparison

Bain Capital Private Credit has demonstrated exceptional growth compared to the period ending December 31, 2024. Total assets have nearly doubled to $1,462,681 thousand, fueled by a significant increase in investments at fair value to $1,367,369 thousand. Total investment income surged by 162% to $88,338 thousand, with net investment income rising to $41,357 thousand. This expansion is accompanied by a substantial increase in debt to $671,033 thousand and a corresponding rise in interest expenses. Net assets have also more than doubled to $762,247 thousand, indicating strong operational performance and successful capital deployment.

Key Financial Figures

• $0.01 — eneficial interest ("Common Shares ") , $0.01 par value per share, outstanding as of

Filing Documents

• ck0001899017-20250930.htm (10-Q) — 17725KB
• ck0001899017-ex10_27.htm (EX-10.27) — 1050KB
• ck0001899017-ex31_1.htm (EX-31.1) — 17KB
• ck0001899017-ex31_2.htm (EX-31.2) — 18KB
• ck0001899017-ex32.htm (EX-32) — 15KB
• 0001193125-25-283129.txt ( ) — 59660KB
• ck0001899017-20250930.xsd (EX-101.SCH) — 2420KB
• ck0001899017-20250930_htm.xml (XML) — 13144KB

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 77 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 115 Item 4.

Controls and Procedures

Controls and Procedures 115 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 117 Item 1A.

Risk Factors

Risk Factors 117 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 118 Item 3. Defaults Upon Senior Securities 118 Item 4. Mine Safety Disclosures 118 Item 5. Other Information 119 Item 6. Exhibits, Consolidated Financial Statement Schedules 120

Signatures

Signatures 123 i Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Although we believe that the assumptions on which th

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements BAIN CAPITAL PRIVATE CREDIT CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data) As of As of September 30, 2025 December 31, 2024 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliate investment (amortized cost of $ 1,326,161 and $ 712,111 , respectively) $ 1,338,897 $ 712,198 Non-controlled affiliate investment (amortized cost of $ 5,900 and $ 4,800 , respectively) 7,054 5,101 Controlled affiliate investment (amortized cost of $ 21,125 and $ 0 , respectively) 21,418 — Cash and cash equivalents 38,270 15,441 Foreign cash (cost of $ 3,146 and $ 1,006 , respectively) 3,196 898 Collateral on forward currency exchange contracts 4,002 833 Restricted cash and cash equivalents 50 50 Interest rate swap 1,297 — Deferred financing costs (net of accumulated amortization of $ 1,995 and $ 718 , respectively) 7,618 7,375 Interest receivable on investments 11,916 6,459 Dividend receivable on investments 645 — Unrealized appreciation on forward currency exchange contracts — 1,492 Receivable for investments sold 28,034 510 Prepaid insurance 268 309 Prepaid financing costs 16 75 Other receivables — 1,786 Total Assets $ 1,462,681 $ 752,527 Liabilities Debt $ 671,033 $ 378,101 Distributions payable 6,401 6,006 Interest expense payable 7,489 3,976 Incentive fee payable on income 3,117 1,585 Accrued capital gains incentive fee 1,505 - Repurchase of Common Shares payable 5 1,537 Base management fee payable 2,577 1,316 Accrued expenses and other liabilities 1,595 1,171 Unrealized depreciation on forward currency exchange contracts 3,133 — Payable for investments purchased 3,579 401 Total Liabilities $ 700,434 $ 394,093 Commitments and Contingencies (See Note 9) Net Assets Commo

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