Antares Strategic Credit Fund's Investment Income Nearly Triples

TL;DR

**Antares is aggressively scaling its credit portfolio, but watch that rising debt — it's a double-edged sword for returns.**

AI Summary

Antares Strategic Credit Fund reported a significant increase in total investment income for the nine months ended September 30, 2025, reaching $209,968 thousand, up from $70,792 thousand in the same period of 2024, representing a 196.6% increase. Net investment income also saw a substantial rise to $115,918 thousand for the nine months ended September 30, 2025, compared to $56,870 thousand in 2024. This growth was primarily driven by a surge in interest income, which increased from $62,865 thousand to $197,753 thousand. Total assets expanded considerably to $3,637,626 thousand as of September 30, 2025, from $2,230,953 thousand at December 31, 2024. Debt outstanding also increased to $1,652,604 thousand from $918,277 thousand, reflecting increased leverage. Net assets grew to $1,896,970 thousand from $1,246,661 thousand. The fund experienced a net change in unrealized depreciation of $1,317 thousand for the nine months ended September 30, 2025, a shift from appreciation of $357 thousand in the prior year. The net asset value per share slightly decreased to $25.45 as of September 30, 2025, from $25.53 at December 31, 2024.

Why It Matters

This significant growth in investment income and assets indicates Antares Strategic Credit Fund is actively expanding its credit portfolio, which could appeal to investors seeking exposure to private credit markets. The increase in debt outstanding, however, suggests higher leverage, potentially increasing risk for investors. For employees, this growth could signal stability and opportunities within the fund. Customers of the fund's portfolio companies might see continued access to capital. In the broader market, this expansion highlights the ongoing demand and growth in the private credit sector, potentially intensifying competition among credit funds.

Risk Assessment

Risk Level: medium — The fund's debt outstanding increased significantly from $918,277 thousand at December 31, 2024, to $1,652,604 thousand at September 30, 2025, indicating higher leverage. While net investment income rose, the net asset value per share slightly declined from $25.53 to $25.45, and there was a net change in unrealized depreciation of $1,317 thousand, suggesting potential valuation pressures on investments.

Analyst Insight

Investors should scrutinize the quality of Antares Strategic Credit Fund's expanding loan portfolio and its increasing leverage. While the growth in investment income is positive, the slight decline in NAV per share and unrealized depreciation warrant a deeper dive into the underlying credit quality and market conditions affecting its investments.

Financial Highlights

debt To Equity

0.87

revenue

$209,968 thousand

operating Margin

55.2%

total Assets

$3,637,626 thousand

total Debt

$1,638,244 thousand

net Income

$115,918 thousand

eps

$1.41

gross Margin

N/A

cash Position

$34,340 thousand

revenue Growth

+196.6%

Revenue Breakdown

Key Numbers

• $209,968 thousand — Total Investment Income (Increased from $70,792 thousand in 2024 for the nine months ended September 30, 2025)
• $115,918 thousand — Net Investment Income (Increased from $56,870 thousand in 2024 for the nine months ended September 30, 2025)
• $3,637,626 thousand — Total Assets (As of September 30, 2025, up from $2,230,953 thousand at December 31, 2024)
• $1,652,604 thousand — Debt Outstanding (As of September 30, 2025, up from $918,277 thousand at December 31, 2024)
• $1,896,970 thousand — Total Net Assets (As of September 30, 2025, up from $1,246,661 thousand at December 31, 2024)
• $25.45 — Net Asset Value per Share (As of September 30, 2025, a slight decrease from $25.53 at December 31, 2024)
• $1,317 thousand — Net Change in Unrealized Depreciation (For the nine months ended September 30, 2025, compared to appreciation of $357 thousand in 2024)
• 81,974,095 — Common Shares Outstanding (As of November 13, 2025)
• $197,753 thousand — Interest Income (For the nine months ended September 30, 2025, up from $62,865 thousand in 2024)
• $58,954 thousand — Interest and Debt Expenses (For the nine months ended September 30, 2025, up from $11,542 thousand in 2024)

Key Players & Entities

• Antares Strategic Credit Fund (company) — Registrant
• Antares Capital Credit Advisers LLC (company) — External Manager
• SEC (regulator) — Securities and Exchange Commission
• Bleriot US Bidco Inc. (company) — Portfolio Company
• Peraton Corp. (company) — Portfolio Company
• TransDigm Inc. (company) — Portfolio Company
• American Trailer Rental Group, LLC (company) — Portfolio Company
• Apple Bidco, LLC (company) — Portfolio Company
• Kenco PPC Buyer LLC (company) — Portfolio Company
• Lightbeam Bidco Inc. (company) — Portfolio Company

FAQ

Risk Factors

• Increased Leverage [high — financial]: The fund significantly increased its debt outstanding to $1,652,604 thousand from $918,277 thousand, a rise of 79.9%. This increased leverage amplifies both potential gains and losses, making the fund more sensitive to market downturns and interest rate fluctuations.
• Unrealized Depreciation [medium — market]: The fund experienced a net change in unrealized depreciation of $1,317 thousand for the nine months ended September 30, 2025, a reversal from an appreciation of $357 thousand in the prior year. This indicates a decline in the fair value of the fund's investment portfolio.
• Net Asset Value per Share Decline [medium — market]: Despite substantial growth in assets and income, the net asset value per share slightly decreased to $25.45 from $25.53. This suggests that the increase in shares outstanding or other factors have diluted the per-share value.
• Rising Interest Expenses [high — financial]: Interest and debt expenses more than quintupled to $58,954 thousand from $11,542 thousand. This substantial increase is directly linked to the higher debt levels and likely reflects increased borrowing costs.
• Reclassification of Investments [low — operational]: The fund reclassified money market fund investments as short-term investments, excluding them from cash and cash equivalents. While a presentation change, it impacts the interpretation of liquidity metrics.

Industry Context

The strategic credit fund industry operates in a dynamic environment characterized by fluctuating interest rates and credit market conditions. Funds like Antares Strategic Credit Fund typically invest in a diversified portfolio of debt instruments, seeking to generate income and capital appreciation. The recent surge in interest income suggests a favorable environment for credit investments, potentially due to higher yields on new originations or increased portfolio size.

Regulatory Implications

As a registered investment company, Antares Strategic Credit Fund is subject to regulations governing investment advisers, disclosure requirements, and capital adequacy. The significant increase in leverage and the shift in unrealized values may attract closer scrutiny from regulators regarding risk management practices and investor protection.

What Investors Should Do

1. Monitor Net Asset Value per Share Trend
2. Assess Risk Management of Increased Leverage
3. Analyze Drivers of Unrealized Depreciation
4. Evaluate Expense Management

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period of significant growth in investment income, net income, and assets, but also marked by increased debt and unrealized depreciation.
• 2024-09-30: Nine months ended September 30, 2024 — Baseline period for comparison, showing substantially lower income and assets.
• 2025-12-31: As of December 31, 2024 — Prior year-end balance sheet figures for comparison of asset and liability growth.
• 2025-11-13: Common Shares Outstanding as of November 13, 2025 — Indicates the number of shares outstanding, relevant for per-share calculations and potential dilution.

Glossary

Net Asset Value (NAV) per share

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

Unrealized Depreciation

A decrease in the fair value of an investment that has not yet been sold. It represents a paper loss. (Indicates a decline in the value of the fund's portfolio holdings, impacting overall performance.)

Leverage

The use of borrowed money to increase the potential return of an investment. In funds, this is often achieved through borrowing or issuing preferred shares. (The fund has significantly increased its leverage, amplifying both potential gains and risks.)

Amortized Cost

The initial cost of a debt instrument, adjusted over time for the amortization of any premium or discount. It is used for valuing certain investments. (Provided as a comparison to fair value for investments, offering insight into potential gains or losses.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Antares Strategic Credit Fund has demonstrated exceptional growth, with total investment income surging by 196.6% to $209,968 thousand and net investment income rising by 102.1% to $115,918 thousand. This growth is largely attributable to a 214.7% increase in interest income. However, this expansion has been accompanied by a significant increase in leverage, with debt outstanding rising by 79.9%. While assets have grown substantially, the net asset value per share has seen a slight decrease, and the fund has transitioned from unrealized appreciation to depreciation, indicating a mixed performance profile.

Key Financial Figures

• $0.001 — beneficial interest ("Common Shares"), $0.001 par value per share, outstanding as of

Filing Documents

• ck0001993402-20250930.htm (10-Q) — 35152KB
• ck0001993402-ex31_1.htm (EX-31.1) — 18KB
• ck0001993402-ex31_2.htm (EX-31.2) — 18KB
• ck0001993402-ex32_1.htm (EX-32.1) — 12KB
• ck0001993402-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-280638.txt ( ) — 77340KB
• ck0001993402-20250930.xsd (EX-101.SCH) — 1671KB
• ck0001993402-20250930_htm.xml (XML) — 23312KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 88 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 112 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 125 Item 4.

Controls and Procedures

Controls and Procedures 126 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 127 Item 1A.

Risk Factors

Risk Factors 127 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 127 Item 3. Defaults Upon Senior Securities 127 Item 4. Mine Safety Disclosures 127 Item 5. Other Information 127 Item 6. Exhibits 128

Signatures

Signatures 129 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 Strategic 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 condi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements ANTARES STR ATEGIC CREDIT FUND CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (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 — $ 3,539,472 and $ 2,132,063 as of September 30, 2025 and December 31, 2024, respectively) $ 3,539,912 $ 2,131,829 Short-term investments (amortized cost — $ 42,836 and $ 0 as of September 30, 2025 and December 31, 2024, respectively) (1) 42,836 — Total investments at fair value 3,582,748 2,131,829 Cash and cash equivalents (1) 34,340 79,193 Foreign currencies (cost — $ 5,967 and $ 2,623 as of September 30, 2025 and December 31, 2024, respectively) 5,980 2,567 Interest receivable from non-controlled/non-affiliated investments 13,995 10,481 Dividend receivable from non-controlled/non-affiliated investments 339 — Deferred offering costs 34 91 Receivable for investments sold / repaid 2 6,776 Prepaid expenses and other assets 188 16 Total assets $ 3,637,626 $ 2,230,953 LIABILITIES Debt outstanding $ 1,652,604 $ 918,277 Less: Deferred financing costs ( 14,360 ) ( 10,538 ) Total debt, net of deferred financing costs 1,638,244 907,739 Payable for investments purchased 37,668 33,781 Interest payable 3,297 3,754 Distributions payable 44,219 32,223 Administrative service fee payable 313 377 Accrued expenses and other liabilities 4,238 1,920 Management fees payable 5,615 1,769 Income based incentive fee payable 6,265 2,155 Excise tax payable — 266 Capital gains incentive fee payable — 165 Due to affiliates 797 143 Total liabilities 1,740,656 984,292 Commitments and contingencies (Note 7) NET ASSETS Common Shares, par value $ 0.001 ( 74,543,881 and 48,823,039 shares

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