Antares Private Credit Fund Sees Explosive Growth in Income, Assets

TL;DR

**Antares is leveraging up and crushing it with massive income growth, but watch that debt.**

AI Summary

Antares Private Credit Fund reported a significant increase in total investment income to $85.055 million for the nine months ended September 30, 2025, up from zero in the prior year, reflecting substantial growth in its investment portfolio. Net investment income also surged to $55.021 million for the nine-month period, compared to zero in 2024. The fund's total assets grew to $1.452 billion as of September 30, 2025, from $918.834 million at December 31, 2024, driven by an increase in investments at fair value to $1.423 billion from $848.360 million. Debt outstanding dramatically increased to $720.127 million from $110.194 million, indicating aggressive leveraging to fund new investments. Net assets increased to $703.219 million from $637.459 million, with net asset value per share rising to $25.21 from $25.09. The fund issued 2,470,603 shares, generating $62.198 million in proceeds, and paid $50.034 million in distributions to shareholders during the nine-month period. Despite a net change in unrealized depreciation of $2.822 million, the fund's operational performance shows strong growth in income and assets.

Why It Matters

This filing reveals Antares Private Credit Fund's aggressive expansion, with a substantial increase in investment income and assets. For investors, the rising NAV per share to $25.21 and significant distributions of $1.90 per share signal strong performance and potential for attractive returns, though increased debt levels introduce higher risk. The fund's growth in private credit investments suggests a robust market for direct lending, potentially impacting traditional banking and broader credit markets. Competitively, Antares is clearly scaling up, challenging other private credit funds for market share and deal flow.

Risk Assessment

Risk Level: medium — The fund's debt outstanding surged from $110.194 million to $720.127 million, a 550% increase, indicating significant leverage. While this fuels asset growth, it also exposes the fund to higher interest rate risk and potential liquidity issues, as highlighted by the $23.741 million in interest and debt expenses for the nine months ended September 30, 2025.

Analyst Insight

Investors should closely monitor Antares Private Credit Fund's debt-to-equity ratio and interest coverage, given the substantial increase in debt. While current income generation is strong, assess the quality of new investments and the fund's ability to manage higher financing costs in a rising rate environment.

Financial Highlights

debt To Equity

1.02

revenue

$85.055M

operating Margin

N/A

total Assets

$1.452B

total Debt

$720.127M

net Income

$55.021M

eps

$25.21

gross Margin

N/A

cash Position

$11.701M

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $85.055M — Total Investment Income (Increased from $0 for the nine months ended September 30, 2024, indicating significant growth.)
• $55.021M — Net Investment Income (Increased from $0 for the nine months ended September 30, 2024, showing strong profitability.)
• $1.423B — Total Investments at Fair Value (Increased from $848.360 million at December 31, 2024, reflecting substantial portfolio expansion.)
• $720.127M — Debt Outstanding (Increased from $110.194 million at December 31, 2024, indicating significant leverage growth.)
• $25.21 — Net Asset Value Per Share (Increased from $25.09 at December 31, 2024, showing modest per-share value appreciation.)
• $1.90 — Distributions Declared Per Share (For the nine months ended September 30, 2025, demonstrating shareholder returns.)
• $23.741M — Interest and Debt Expenses (For the nine months ended September 30, 2025, a new expense reflecting increased debt.)
• 27,894,139 — Common Shares Outstanding (As of September 30, 2025, up from 25,405,674 at December 31, 2024, indicating capital raises.)

Key Players & Entities

• Antares Private Credit Fund (company) — Registrant
• Antares Capital Credit Advisers LLC (company) — External Manager (Adviser)
• SEC (regulator) — Securities and Exchange Commission
• $85.055 million (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $55.021 million (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $1.452 billion (dollar_amount) — Total assets as of September 30, 2025
• $720.127 million (dollar_amount) — Debt outstanding as of September 30, 2025
• $25.21 (dollar_amount) — Net asset value per share as of September 30, 2025
• $1.90 (dollar_amount) — Distributions declared per share for nine months ended September 30, 2025
• 2,470,603 (dollar_amount) — Shares issued during nine months ended September 30, 2025

FAQ

Risk Factors

• Aggressive Leverage Strategy [high — financial]: The fund has significantly increased its debt outstanding to $720.127 million from $110.194 million, a more than six-fold increase. This aggressive leveraging strategy amplifies potential returns but also magnifies risks associated with interest rate fluctuations and the ability to service debt.
• Investment Portfolio Volatility [medium — market]: The fund's investments at fair value grew to $1.423 billion from $848.360 million. A net change in unrealized depreciation of $2.822 million indicates that the fair value of investments can fluctuate, posing a risk to net asset value.
• Increased Interest and Debt Expenses [medium — financial]: With the substantial increase in debt, interest and debt expenses rose to $23.741 million for the nine months ended September 30, 2025. This new, significant expense directly impacts net investment income.
• Compliance with Investment Regulations [low — regulatory]: As a private credit fund, Antares must adhere to various regulatory requirements concerning its investment activities, leverage, and reporting. Non-compliance could lead to penalties and reputational damage.

Industry Context

The private credit market has seen significant growth, driven by increased demand for flexible financing solutions from companies and a search for yield by investors. Funds like Antares are capitalizing on this by originating loans to middle-market companies, often providing bespoke financing structures that traditional banks may not offer. However, this growth also attracts increased competition and regulatory scrutiny.

Regulatory Implications

As a private credit fund, Antares operates within a less regulated environment than publicly traded entities, but still faces compliance requirements related to its investment activities, disclosure obligations, and anti-money laundering regulations. Changes in financial regulations could impact its ability to leverage or its reporting requirements.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios closely.
2. Evaluate the performance of the investment portfolio.
3. Assess the sustainability of distributions.
4. Understand the fund's fee structure.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period showing substantial growth in investment income, assets, and debt, alongside an increase in NAV per share.
• 2024-12-31: December 31, 2024 — Prior period benchmark for asset and debt levels, showing a significantly smaller investment portfolio and debt load.
• 2025-09-30: Share issuance — 2,470,603 shares issued, generating $62.198 million in proceeds, indicating capital raises to fund portfolio expansion.
• 2025-09-30: Distributions paid — $50.034 million in distributions paid to shareholders, demonstrating shareholder returns from operations.

Glossary

Amortized Cost

The original cost of an asset, adjusted over time for amortization or accretion. For investments, it represents the initial purchase price. (Used to show the cost basis of investments compared to their fair value, highlighting potential unrealized gains or losses.)

Net Asset Value (NAV) Per Share

The value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (A key metric for investors to track the per-share performance and value of their investment in the fund.)

Unrealized Depreciation

A decrease in the fair value of an asset that has not yet been sold. It represents a paper loss. (Indicates that the market value of the fund's investments has decreased, impacting the overall value of the portfolio.)

Leveraging

Using borrowed money to increase the potential return of an investment. In this case, the fund uses debt to acquire more investments. (Central to the fund's strategy, as evidenced by the significant increase in debt to fund portfolio growth.)

Paid-in Capital in Excess of Par Value

The amount investors have paid for shares above their nominal par value. (Represents the capital raised from share issuances beyond the basic share price, contributing to the fund's equity.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Antares Private Credit Fund has experienced a dramatic transformation. Total investment income has surged from $0 to $85.055 million, and net investment income from $0 to $55.021 million, reflecting a fully operational and growing investment portfolio. Total assets have nearly doubled, reaching $1.452 billion, primarily driven by a significant expansion in investments at fair value. This growth has been aggressively funded by a more than six-fold increase in debt outstanding, from $110.194 million to $720.127 million, indicating a substantial increase in financial leverage. Despite this, net assets have grown, and NAV per share has seen a modest increase from $25.09 to $25.21.

Key Financial Figures

• $0.01 — of the Act: Class I Shares, par value $0.01 per share Class S Shares, par value $

Filing Documents

• ck0001976336-20250930.htm (10-Q) — 31291KB
• ck0001976336-ex31_1.htm (EX-31.1) — 18KB
• ck0001976336-ex31_2.htm (EX-31.2) — 18KB
• ck0001976336-ex32_1.htm (EX-32.1) — 12KB
• ck0001976336-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-280627.txt ( ) — 67078KB
• ck0001976336-20250930.xsd (EX-101.SCH) — 1734KB
• ck0001976336-20250930_htm.xml (XML) — 18730KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 74 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 98 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 110 Item 4.

Controls and Procedures

Controls and Procedures 111 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 112 Item 1A.

Risk Factors

Risk Factors 112 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 112 Item 3. Defaults Upon Senior Securities 112 Item 4. Mine Safety Disclosures 112 Item 5. Other Information 112 Item 6. Exhibits 113

Signatures

Signatures 114 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report. In addition, some of the statements in this Quarterly Report (including in the following discussion) constitute forward-looking statements, which relate to future events or the future performance or financial condition of Antares Private Credit Fund (the "Company," "we," "us," or "our"). The Company is externally managed by Antares Capital Credit Advisers LLC (the "Adviser"). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning: we have a limited operating history; our, or our portfolio companies', future business, operations, operating results or prospects; the return or impact of current and future investments; changes in the general economy, including those caused by tariffs and trade disputes with other countries, changes in inflation, risk of recession and a prolonged United States government shutdown; the impact of changes in laws or regulations (including the interpretation thereof), including tax laws, governing our operations or the operations of our portfolio companies or the operations of our competitors; the valuation of our investments in portfolio companies, particularly those having no liquid trading market; market conditions and our ability to access different debt markets and additional debt and equity capital and our ability to manage our capital resources effectively; our contractual arrangements and relationships with third parties; the state of the general economy; the impact of supply chain constraints on our portfolio companies and the global economy; uncertainty surrounding global financial stability, including the liquidity of certain banks; the financial conditi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements ANTARES PRIVATE CREDIT FUND CONSOLIDATED STATEMENTS OF ASSETS AND L IABILITIES (in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Investments at fair value: Non-controlled/non-affiliated investments, at fair value (amortized cost — $ 1,395,830 and $ 849,742 as of September 30, 2025 and December 31, 2024, respectively) $ 1,393,758 $ 848,360 Short-term investments (amortized cost — $ 29,010 and $ 0 as of September 30, 2025 and December 31, 2024, respectively) (1) 29,010 — Total investments at fair value 1,422,768 848,360 Cash and cash equivalents (1) 11,701 42,146 Foreign currencies (cost — $ 8,905 and $ 20,235 as of September 30, 2025 and December 31, 2024, respectively) 9,091 20,194 Interest receivable from non-controlled/non-affiliated investments 6,322 3,824 Dividend receivable from non-controlled/non-affiliated investments 176 — Deferred offering costs 428 943 Receivable from adviser (Note 3) 1,361 2,839 Receivable for investments sold / repaid 30 82 Prepaid expenses and other assets 59 446 Total assets $ 1,451,936 $ 918,834 LIABILITIES Debt outstanding $ 720,127 $ 110,194 Less: Deferred financing costs ( 5,081 ) ( 3,087 ) Total debt, net of deferred financing costs 715,046 107,107 Payable for investments purchased 20,816 160,489 Interest payable 2,145 361 Distributions payable 5,782 8,290 Administrative service fee payable 283 93 Accrued expenses and other liabilities 2,027 986 Management fees payable 1,174 — Income based incentive fee payable 1,223 — Due to affiliates 221 4,049 Total liabilities 748,717 281,375 Commitments and contingencies (Note 7) NET ASSETS Common Shares, par value $ 0.01 ( 27,894,139 and 25,405,674 shares issued and outstanding as of September 30, 2025 and Decembe

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