CCS IX Portfolio Holdings' Assets Skyrocket to $958M on Capital Influx

TL;DR

**CCS IX is making big moves, leveraging massive capital contributions and debt to rapidly scale its private investment portfolio, but watch those unrealized losses.**

AI Summary

CCS IX Portfolio Holdings, LLC reported a significant expansion in its financial position for the nine months ended September 30, 2025, with total assets surging from $10 thousand at December 31, 2024, to $958,276 thousand. This growth was primarily driven by substantial capital contributions of $363,920 thousand and new secured borrowings of $493,894 thousand, alongside credit facility borrowings of $91,200 thousand. The company generated total investment income of $18,460 thousand for the nine-month period, predominantly from interest income on non-controlled non-affiliated investments. Net investment income before taxes reached $11,762 thousand, resulting in a net increase in net assets from operations of $11,195 thousand. However, the company experienced a net change in unrealized depreciation on non-controlled non-affiliated investments of $342 thousand. Key investments include Unitranche First Lien Term Loans in Arrow Management Acquisition, LLC ($80,173 thousand), Bonterra, LLC ($61,512 thousand), BVI Medical Inc. ($69,439 thousand), Headlands Buyer, Inc. ($43,264 thousand), Landscape Workshop ($68,839 thousand), and Rightworks, LLC ($76,505 thousand). The company's net asset value per unit dramatically increased from $1,000 at December 31, 2024, to $37,512,500 at September 30, 2025, reflecting the significant capital infusion and operational growth.

Why It Matters

This filing reveals CCS IX Portfolio Holdings, LLC's aggressive expansion into private debt and equity markets, backed by substantial capital contributions and new borrowings. For investors, the dramatic increase in net asset value per unit to $37,512,500 signals strong initial growth and investor confidence, though the illiquid nature of its private investments warrants careful consideration. Employees of the portfolio companies benefit from the financing, which supports their operations and growth. In the broader market, CCS IX's activity highlights the continued strength and demand in the private credit sector, potentially intensifying competition for attractive leveraged buyout and acquisition financing opportunities among other BDCs and private equity firms.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to its significant leverage, with secured borrowings of $493,616 thousand and debt of $86,831 thousand, representing a substantial portion of its total assets of $958,276 thousand. While the company has substantial cash and cash equivalents of $525,560 thousand, there was a net change in unrealized depreciation on non-controlled non-affiliated investments of $342 thousand for the nine months ended September 30, 2025, indicating potential valuation risks in its illiquid private portfolio.

Analyst Insight

Investors should closely monitor CCS IX's future filings for trends in investment performance, particularly the realization of gains or losses on its private debt and equity holdings. Given the rapid asset growth and reliance on borrowed capital, assessing the quality and diversification of its portfolio companies, and the impact of rising interest rates on its debt obligations, will be crucial for long-term valuation.

Financial Highlights

debt To Equity

1.56

revenue

$18,460,000

operating Margin

62.5%

total Assets

$958,276,000

total Debt

$580,447,000

net Income

$11,545,000

eps

$1,119,500

gross Margin

N/A

cash Position

$525,560,000

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $958.3M — Total Assets (Increased from $10 thousand at December 31, 2024, to $958,276 thousand at September 30, 2025)
• $375.1M — Total Net Assets (Increased from $10 thousand at December 31, 2024, to $375,125 thousand at September 30, 2025)
• $18.5M — Total Investment Income (Generated for the nine months ended September 30, 2025)
• $11.2M — Net Increase in Net Assets from Operations (For the nine months ended September 30, 2025)
• $525.6M — Cash and Cash Equivalents (As of September 30, 2025, up from $10 thousand at December 31, 2024)
• $493.6M — Secured Borrowings (As of September 30, 2025, a new liability)
• $363.9M — Capital Contributions (For the nine months ended September 30, 2025)
• $37.5M — Net Asset Value per Unit (Increased from $1,000 at December 31, 2024, to $37,512,500 at September 30, 2025)
• $342K — Net Change in Unrealized Depreciation (On non-controlled non-affiliated investments for the nine months ended September 30, 2025)
• 10 — Common Units Outstanding (Consistent number of units outstanding)

Key Players & Entities

• CCS IX Portfolio Holdings, LLC (company) — Registrant and investment company
• Crescent Capital Group LP (company) — Investment Adviser
• CCAP Administration LLC (company) — Administrator providing services
• Arrow Management Acquisition, LLC (company) — Portfolio company with Unitranche First Lien Term Loan of $80,173 thousand
• Bonterra, LLC (company) — Portfolio company with Unitranche First Lien Term Loan of $61,512 thousand
• BVI Medical Inc. (company) — Portfolio company with Unitranche First Lien Term Loan of $69,439 thousand
• Headlands Buyer, Inc. (company) — Portfolio company with Unitranche First Lien Term Loan of $43,264 thousand
• Landscape Workshop (company) — Portfolio company with Unitranche First Lien Term Loan of $68,839 thousand
• Rightworks, LLC (company) — Portfolio company with Unitranche First Lien Term Loan of $76,505 thousand
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Leverage and Borrowed Money [high — financial]: The company uses borrowed money to finance a portion of its investments. This leverage increases the potential for gains but also magnifies potential losses, impacting financial position and results of operations.
• Economic Dependence [high — market]: The company's future success is dependent on the general economy and its effect on the industries in which it invests. Economic downturns can negatively impact portfolio companies' ability to achieve objectives and the overall financial performance.
• Adviser and Affiliate Conflicts [medium — operational]: Actual and potential conflicts of interest with the Adviser and its affiliates could impact investment decisions and operational execution, potentially affecting the company's performance.
• Portfolio Company Performance [high — market]: The ability of the company's portfolio companies to achieve their objectives is critical. Failure of these companies to meet their goals can lead to investment losses and impact the company's net asset value.
• Financing Sources and Working Capital [medium — financial]: The adequacy of the company's financing sources and working capital is crucial for its operations and investment strategy. Insufficient capital could limit investment opportunities and operational flexibility.
• BDC and RIC Regulation [medium — regulatory]: As a business development company (BDC) and intending regulated investment company (RIC), the company is subject to specific regulatory requirements under the 1940 Act and the Internal Revenue Code. Non-compliance could lead to penalties or loss of favorable tax status.

Industry Context

CCS IX Portfolio Holdings, LLC operates as a Business Development Company (BDC), a sector focused on providing capital to small and medium-sized businesses. The industry is characterized by investments in debt and equity, often in leveraged buyouts and growth capital opportunities. BDCs typically aim to generate income through interest payments and capital appreciation, navigating a landscape influenced by economic conditions and the availability of financing.

Regulatory Implications

As a BDC, the company is subject to the Investment Company Act of 1940, which imposes regulations on its investment activities, capital structure, and reporting. The company's intention to qualify as a RIC means it must adhere to specific distribution and income requirements to maintain its pass-through tax status, avoiding corporate-level taxation.

What Investors Should Do

1. Monitor leverage levels and debt covenants.
2. Analyze the performance of key portfolio investments.
3. Evaluate the impact of unrealized depreciation.
4. Assess the sustainability of high net asset value per unit growth.

Key Dates

• 2024-03-12: Company Formation — CCS IX Portfolio Holdings, LLC was formed as a Delaware limited liability company.
• 2024-08-14: Initial Unit Purchase — CCS IX Holdings, L.P. purchased 10 common units for $10, establishing the initial capital.
• 2025-02-13: Commencement of Operations — The company began its active operations after receiving a capital contribution.
• 2025-09-30: Quarterly Financial Reporting — Reporting period for the 10-Q, showing significant growth in assets and net assets.
• 2024-12-31: Prior Year End Financials — Baseline for comparison, showing minimal assets ($10 thousand) before the significant capital infusion.

Glossary

Business Development Company (BDC)

A type of closed-end investment company created by Congress to make equity and debt investments in small and medium-sized American businesses. (CCS IX Portfolio Holdings, LLC is structured and regulated as a BDC.)

Regulated Investment Company (RIC)

A company that qualifies under Subchapter M of the Internal Revenue Code, allowing it to avoid corporate income tax if it distributes at least 90% of its investment income to shareholders. (The company intends to qualify as a RIC to avoid corporate-level taxation.)

Unitranche First Lien Term Loans

A type of debt financing that combines a senior secured loan and a subordinated loan into a single facility, typically with a first lien on the borrower's assets. (These are a significant component of the company's investment portfolio, such as in Arrow Management Acquisition, LLC.)

Paid-in-kind (PIK) interest

Interest that is paid in the form of additional debt or equity rather than cash. It increases the principal amount of the loan. (This is a source of investment income for the company, contributing to its total investment income.)

Net asset value per unit

The total value of a company's assets minus its liabilities, divided by the number of outstanding units. (Shows the per-unit value of the company, which has dramatically increased due to capital contributions and operational growth.)

Non-controlled non-affiliated investments

Investments in companies where the reporting company does not have control or significant influence, and which are not related parties. (These investments are the primary source of the company's investment income and unrealized gains/losses.)

Year-Over-Year Comparison

Compared to the prior period ending December 31, 2024, CCS IX Portfolio Holdings, LLC has experienced a monumental shift in its financial standing. Total assets have surged from $10 thousand to $958.3 million, primarily due to substantial capital contributions and new borrowings. Net assets have similarly grown from $10 thousand to $375.1 million. Investment income for the nine months ended September 30, 2025, stands at $18.5 million, a significant increase from the negligible income in the prior period. The company has also taken on substantial debt, with secured borrowings reaching $493.6 million, a liability not present in the prior period.

Filing Documents

• ck0002017636-20250930.htm (10-Q) — 1714KB
• ck0002017636-ex3_5.htm (EX-3.5) — 18KB
• ck0002017636-ex31_1.htm (EX-31.1) — 23KB
• ck0002017636-ex31_2.htm (EX-31.2) — 15KB
• ck0002017636-ex32_1.htm (EX-32.1) — 15KB
• 0001193125-25-282900.txt ( ) — 7270KB
• ck0002017636-20250930.xsd (EX-101.SCH) — 977KB
• ck0002017636-20250930_htm.xml (XML) — 1312KB

Financial Statements

Financial Statements 4 Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 4 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 (Unaudited) 5 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 (Unaudited) 6 Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 (Unaudited) 7 Consolidated Schedule of Investments as of September 30, 2025 (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10 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 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 29 Part II OTHER INFORMATION 30 Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 31 Item 6. Exhibits 31 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Some of the statements included in this quarterly report on Form 10-Q (this "Quarterly Report") constitute forward-looking statements, which relate to future events or our future performance or financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "would," "will," "should," "targets," "projects," and variations of these words and similar expressions identify forward-looking statements, although not all forward-looking statements include these words. 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 are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The following factors and factors listed under "Risk Factors" in our Form 10-12G filed with the SEC on December 31, 2024, as amended by our Pre-Effective Amendment No. 1 to Form 10-12G, filed with the SEC on February 14, 2025 (the "Registration Statement") and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS CCS IX Portfolio Holdings, LLC Consolidated Statements of Assets and Liabilities (in thousands, except for per unit data) As of September 30, 2025 (Unaudited) As of December 31, 2024 Assets Investments, at fair value Non-controlled non-affiliated investments (cost of $ 432,887 ) $ 432,545 $ - Cash and cash equivalents 525,560 10 Interest receivable 171 - Total assets $ 958,276 $ 10 Liabilities Secured borrowings (net of deferred financing costs of $ 278 and $ 0 , respectively) 493,616 - Debt (net of deferred financing costs of $ 4,369 and $ 0 , respectively) 86,831 - Interest and other debt financing costs payable 1,913 - Management fees payable 204 - Accrued expenses and other liabilities 587 - Total liabilities 583,151 - Commitments and Contingencies (Note 7) Net assets Common Units, no par value; ( 10 units issued, authorized and outstanding) 363,930 10 Accumulated earnings (loss) 11,195 - Total net assets 375,125 10 Total liabilities and net assets $ 958,276 $ 10 Net asset value per unit $ 37,512,500 $ 1,000 See accompanying notes 4 CCS IX Portfolio Holdings, LLC Consolidated Statements of Operations (in thousands, except for unit and per unit data) (Unaudited) For the three months ended September 30, 2025 For the nine months ended September 30, 2025 Investment Income: From non-controlled non-affiliated investments: Interest income $ 8,480 $ 16,487 Paid-in-kind interest 880 1,973 Total investment income 9,360 18,460 Expenses: Interest and other debt financing costs 2,541 3,707 Organizational costs 55 298 Management fees 204 396 Professional fees 77 201 Directors' fees 24 101 Other general and administrative expenses 275 794 Total expenses 3,176 5,497 Recoupment (support) payments to (by) the Adviser (Note 3) - 1,201 N

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (in thousands, except unit and per unit amounts) September 30, 2025 (Unaudited) Note 1. Organization and Basis of Presentation CCS IX Portfolio Holdings, LLC (the "Company") was formed on March 12, 2024 as a Delaware limited liability company structured as a non-diversified, closed-end management investment company. The Company has elected to be regulated as a business development company ("BDC") under the 1940 Act. The Company is externally managed by its adviser, Crescent Capital Group LP (the "Adviser"), an investment adviser that is registered with the Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940, as amended. In addition, the Company intends to qualify as a regulated investment company (a "RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. The Company's investment objective is to provide unitholders with current income and long-term capital appreciation through investments in securities related to the financing of leveraged buyouts, acquisitions, refinancings, recapitalizations and later-stage growth capital opportunities. The Company intends to invest in a portfolio comprised primarily of privately negotiated senior secured debt, with the ability to invest in junior debt. These investments may feature an equity co-investment or equity component (e.g., warrants, options, contingent interests or conversion features). The Company may also invest in loan participations, preferred stock or other securities consistent with the Company's strategy. CCAP Administration LLC (the "Administrator") provides certain administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Adviser and Adminis

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