Jefferies Credit Partners BDC Sees 129% Income Surge, Asset Growth

TL;DR

**Jefferies Credit Partners BDC is aggressively expanding its loan book, but watch out for that negative unrealized appreciation – it's a red flag for future performance.**

AI Summary

Jefferies Credit Partners BDC Inc. reported a significant increase in total investment income, reaching $75.80 million for the nine months ended September 30, 2025, up from $33.11 million in the same period of 2024, representing a 129% increase. Net investment income also saw substantial growth, climbing to $35.55 million for the nine months ended September 30, 2025, compared to $18.46 million in 2024. Total assets expanded considerably to $1.39 billion as of September 30, 2025, from $815.82 million at December 31, 2024. This growth was primarily driven by an increase in investments at fair value to $1.33 billion from $778.37 million. The company's debt, net of issuance costs, rose to $731.20 million from $438.52 million, reflecting increased leverage to fund its investment activities. Net assets increased to $612.69 million from $356.38 million. However, the net change in unrealized appreciation (depreciation) on investments was a negative $5.62 million for the nine months ended September 30, 2025, indicating some portfolio valuation challenges. The Net Asset Value Per Share for Class I shares slightly decreased to $14.45 as of September 30, 2025, from $14.60 at December 31, 2024.

Why It Matters

This robust growth in investment income and total assets signals Jefferies Credit Partners BDC Inc.'s aggressive expansion in the private credit market, a sector increasingly attractive to investors seeking higher yields. For investors, the substantial increase in net investment income to $35.55 million suggests strong operational performance, though the slight dip in NAV per share to $14.45 warrants attention. The competitive landscape for BDCs remains intense, and Jefferies' ability to scale its investment portfolio to $1.33 billion demonstrates its capacity to originate and manage significant debt investments. Employees benefit from a growing firm, while customers (borrowers) gain access to capital. The broader market sees continued liquidity in the private debt space, but the negative $5.62 million in unrealized appreciation highlights potential valuation risks in a dynamic interest rate environment.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in debt to $731.20 million from $438.52 million, indicating higher leverage. Additionally, the net change in unrealized appreciation (depreciation) on investments was a negative $5.62 million for the nine months ended September 30, 2025, suggesting potential valuation pressures within the investment portfolio.

Analyst Insight

Investors should closely monitor Jefferies Credit Partners BDC Inc.'s future filings for trends in unrealized appreciation and the quality of its loan portfolio, especially given the increased leverage. While the growth in investment income is positive, a deeper dive into the underlying credit quality of new investments is crucial before increasing exposure.

Financial Highlights

debt To Equity

1.19

revenue

$75.80M

total Assets

$1.39B

total Debt

$731.20M

net Income

$35.55M

eps

$14.45

revenue Growth

+129%

Revenue Breakdown

Key Numbers

• $75.80M — Total Investment Income (Increased 129% from $33.11M in 2024 for nine months ended September 30)
• $35.55M — Net Investment Income (Increased from $18.46M in 2024 for nine months ended September 30)
• $1.39B — Total Assets (Increased from $815.82M at December 31, 2024)
• $1.33B — Investments at Fair Value (Increased from $778.37M at December 31, 2024)
• $731.20M — Debt, Net of Issuance Costs (Increased from $438.52M at December 31, 2024)
• $612.69M — Total Net Assets (Increased from $356.38M at December 31, 2024)
• -$5.62M — Net Change in Unrealized Appreciation (Depreciation) (Negative for nine months ended September 30, 2025)
• $14.45 — Net Asset Value Per Share (Class I) (Slightly decreased from $14.60 at December 31, 2024)
• 42,412,878 — Common Shares Outstanding (Class I) (Increased from 24,413,159 at December 31, 2024)
• 129% — Percentage Increase in Total Investment Income (From 2024 to 2025 for the nine-month period)

Key Players & Entities

• Jefferies Credit Partners BDC Inc. (company) — Registrant
• $75.80 million (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $33.11 million (dollar_amount) — Total investment income for nine months ended September 30, 2024
• $35.55 million (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $18.46 million (dollar_amount) — Net investment income for nine months ended September 30, 2024
• $1.39 billion (dollar_amount) — Total assets as of September 30, 2025
• $815.82 million (dollar_amount) — Total assets as of December 31, 2024
• $1.33 billion (dollar_amount) — Investments at fair value as of September 30, 2025
• $778.37 million (dollar_amount) — Investments at fair value as of December 31, 2024
• $731.20 million (dollar_amount) — Debt, net of debt issuance costs as of September 30, 2025

FAQ

Risk Factors

• Investment Portfolio Valuation [medium — financial]: The company experienced a net change in unrealized depreciation of $5.62 million for the nine months ended September 30, 2025. This indicates that the fair value of some investments decreased, potentially impacting future realized gains or losses.
• Increased Leverage [high — financial]: Debt, net of issuance costs, increased to $731.20 million from $438.52 million. While this leverage is used to fund investment growth, it also amplifies financial risk and increases interest expense obligations.
• Interest Rate Sensitivity [medium — market]: As a BDC, the company's profitability is sensitive to interest rate fluctuations. Rising rates can increase borrowing costs, while changes in market interest rates can affect the value of its floating-rate investments.
• Credit Risk of Portfolio Companies [high — operational]: The primary risk lies in the creditworthiness of the companies in which Jefferies Credit Partners invests. Defaults or deterioration in the financial health of these borrowers could lead to investment losses.

Industry Context

Business Development Companies (BDCs) operate in a dynamic environment characterized by the need to source and manage credit investments in middle-market companies. The industry is sensitive to interest rate movements, economic cycles, and regulatory changes. Competition for attractive deals remains a key factor, influencing origination volumes and pricing.

Regulatory Implications

As a BDC, Jefferies Credit Partners is subject to regulations under the Investment Company Act of 1940. Compliance with leverage limits, asset coverage requirements, and reporting obligations is crucial. Changes in these regulations could impact the company's operating flexibility and capital structure.

What Investors Should Do

1. Monitor Unrealized Depreciation
2. Analyze Leverage Strategy
3. Assess NAV Per Share Trend

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 reporting period — Demonstrates significant growth in investment income and assets, alongside increased leverage and a negative unrealized appreciation.
• 2025-09-30: Net Asset Value Per Share (Class I) reported — Slight decrease to $14.45 from $14.60 at year-end 2024, indicating that portfolio performance or share issuance slightly outpaced NAV growth on a per-share basis.
• 2024-12-31: Previous reporting period end — Provides a baseline for comparison, showing substantial growth in assets, income, and debt in the subsequent nine months.

Glossary

BDC

Business Development Company. A type of closed-end investment company that invests in small and medium-sized businesses and provides capital for them. (Jefferies Credit Partners operates as a BDC, meaning its financial performance and risks are tied to the health of its portfolio companies and the broader credit markets.)

Net Asset Value Per Share

The market value of a company's assets minus its liabilities, divided by the number of outstanding shares. (A key metric for BDCs, indicating the underlying value of the company's investments on a per-share basis. A decrease suggests potential valuation challenges or dilution.)

Unrealized Appreciation (Depreciation)

The increase or decrease in the fair value of an investment that has not yet been sold. (A negative figure indicates that the market value of some investments has declined, impacting the overall net asset value even if no sales have occurred.)

Leverage

The use of borrowed money to increase the potential return on an investment. In BDCs, this typically involves issuing debt to fund more investments. (The company has significantly increased its leverage, which amplifies both potential gains and losses, and increases financial risk.)

Year-Over-Year Comparison

Compared to the prior period (likely year-end 2024), Jefferies Credit Partners BDC Inc. has demonstrated aggressive growth, with total investment income soaring by 129% to $75.80 million and total assets nearly doubling to $1.39 billion. This expansion was fueled by a substantial increase in debt, with leverage rising significantly. While net investment income grew, the company also faced challenges with a negative $5.62 million in unrealized depreciation on its investments, and its Net Asset Value Per Share saw a slight decline, indicating that growth may be accompanied by increased risk and potential dilution.

Key Financial Figures

• $0.001 — hares of the registrant's common stock, $0.001 par value per share, outstanding as of

Filing Documents

• ck0001959604-20250930.htm (10-Q) — 10735KB
• ck0001959604-ex4_1.htm (EX-4.1) — 287KB
• ck0001959604-ex31_1.htm (EX-31.1) — 18KB
• ck0001959604-ex31_2.htm (EX-31.2) — 19KB
• ck0001959604-ex32_1.htm (EX-32.1) — 12KB
• ck0001959604-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-280633.txt ( ) — 32159KB
• ck0001959604-20250930.xsd (EX-101.SCH) — 1476KB
• ck0001959604-20250930_htm.xml (XML) — 7841KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 21 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 41 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 52 PART II. OTHER INFORMATION 53 Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54

—FIN ANCIAL INFORMATION

PART I—FIN ANCIAL INFORMATION Ite m 1. Consolidated Financial Statements JEFFERIES CREDIT PARTNERS BDC INC. Consolidated Statements of Ass ets and Liabilities (Unaudited) (In thousands, except for share and per share data) September 30, 2025 December 31, 2024 Assets Investments at fair value: Non-controlled/non-affiliated investments (amortized cost of $ 1,333,264 and $ 773,069 , at September 30, 2025 and December 31, 2024, respectively) $ 1,332,951 $ 778,371 Cash and cash equivalents 6,216 7,995 Restricted cash 41,505 16,114 Interest receivable 6,915 4,740 Deferred financing costs 6,097 7,630 Deferred offering costs 279 113 Due from Investment Adviser 513 516 Prepaid expenses and other assets 285 342 Total assets $ 1,394,761 $ 815,821 Liabilities Debt, net of debt issuance costs of $ 2,272 and $ 0 , at September 30, 2025 and December 31, 2024, respectively $ 731,199 $ 438,518 Subscriptions received in advance 26,015 7,087 Distributions payable 4,539 4,860 Interest payable 14,794 7,485 Management fees payable 1,739 392 Income based incentive fees payable 1,829 — Accrued expenses and other liabilities 1,958 1,098 Total liabilities $ 782,073 $ 459,440 Commitments and contingencies (Note 9) Total net assets $ 612,688 $ 356,381 Net Assets Common shares, par value $ 0.001 ( 42,412,878 and 24,413,159 , shares issued and outstanding, at September 30, 2025 and December 31, 2024, respectively) $ 42 $ 24 Additional paid-in capital 617,331 356,611 Accumulated distributed earnings (losses) ( 4,685 ) ( 254 ) Total net assets $ 612,688 $ 356,381 Net Asset Value Per Share (1) Class I Shares: Net assets $ 612,688 $ 356,381 Common shares outstanding ($ 0.001 par value, 600,000,000 and 1,000,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively) 42,41

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