Antares Strategic Credit Fund II Posts $1.16M Net Income in Inaugural Quarter

TL;DR

**Antares Strategic Credit Fund II is off to a solid start, showing strong asset growth and positive net income in its first quarter, making it a promising new player in the credit market.**

AI Summary

Antares Strategic Credit Fund II LLC, which commenced operations on July 18, 2025, reported total investment income of $2.101 million for the three months ended September 30, 2025, and for the period from inception to September 30, 2025. Net investment income stood at $1.163 million, with earnings per share of $0.63. The fund's total assets reached $114.702 million, primarily driven by investments at fair value totaling $110.080 million, including $106.151 million in non-controlled/non-affiliated investments. Total liabilities were $63.680 million, with debt outstanding of $62.448 million. Net assets amounted to $51.022 million, resulting in a net asset value per share of $25.15. The fund experienced a net increase in net assets from operations of $1.267 million, alongside capital transactions that increased net assets by $49.730 million, including $50.150 million from share issuance. Distributions declared per share were $0.48, totaling $975 thousand. Key expenses included interest and debt expenses of $839 thousand and organization and offering costs of $276 thousand since inception.

Why It Matters

This inaugural 10-Q filing provides the first look at Antares Strategic Credit Fund II's financial health and operational strategy, crucial for investors assessing its early performance. The fund's rapid asset accumulation to over $114 million and positive net investment income of $1.163 million in its first quarter of operations indicate strong initial deployment and revenue generation. For investors, the $25.15 NAV per share and $0.48 distributions per share demonstrate early value creation and income potential. In a competitive credit market, Antares's ability to quickly deploy capital into secured debt across diverse sectors like chemicals and financial services, while managing debt, positions it as an active player, potentially impacting market liquidity and pricing for middle-market loans.

Risk Assessment

Risk Level: medium — The fund has a 'limited operating history' as it commenced operations on July 18, 2025, which inherently carries higher risk due to a lack of historical performance data. Additionally, the filing highlights risks associated with 'the valuation of our investments in portfolio companies, particularly those having no liquid trading market,' indicating potential illiquidity and valuation challenges for its $110.080 million investment portfolio.

Analyst Insight

Investors should closely monitor future filings for sustained performance and detailed portfolio health, given the fund's limited operating history. The strong initial net investment income of $1.163 million and distributions of $0.48 per share are positive, but further quarters will confirm the stability and growth trajectory of this newly operational credit fund.

Financial Highlights

debt To Equity

1.22

revenue

$2.101M

operating Margin

N/A

total Assets

$114.702M

total Debt

$60.608M

net Income

$1.163M

eps

$0.63

gross Margin

N/A

cash Position

$3.006M

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $114.702M — Total Assets (As of September 30, 2025, indicating significant initial capital deployment.)
• $110.080M — Total Investments at Fair Value (Represents the bulk of assets, showing active investment strategy.)
• $1.163M — Net Investment Income (For the period from inception to September 30, 2025, demonstrating early profitability.)
• $0.63 — Earnings Per Share (For the period from inception to September 30, 2025, a key profitability metric.)
• $25.15 — Net Asset Value Per Share (As of September 30, 2025, indicating shareholder value.)
• $0.48 — Distributions Declared Per Share (For the period from inception to September 30, 2025, showing return to shareholders.)
• $62.448M — Debt Outstanding (As of September 30, 2025, reflecting leverage used for investments.)
• $51.022M — Total Net Assets (As of September 30, 2025, representing equity value.)
• $2.101M — Total Investment Income (For the period from inception to September 30, 2025, showing revenue generation.)
• $1.267M — Net Increase in Net Assets from Operations (For the period from inception to September 30, 2025, indicating operational growth.)

Key Players & Entities

• Antares Strategic Credit Fund II LLC (company) — Registrant
• Antares Capital Credit Advisers LLC (company) — External Manager (Adviser)
• Securities and Exchange Commission (regulator) — Regulatory body for filings
• $114.702 million (dollar_amount) — Total assets as of September 30, 2025
• $110.080 million (dollar_amount) — Total investments at fair value
• $1.163 million (dollar_amount) — Net investment income for the period ended September 30, 2025
• $0.63 (dollar_amount) — Earnings per share (basic and diluted)
• $25.15 (dollar_amount) — Net asset value per share
• $0.48 (dollar_amount) — Distributions declared per share
• 2,028,811 (dollar_amount) — Common Shares issued and outstanding as of September 30, 2025

FAQ

Risk Factors

• Leverage Risk [high — financial]: The fund utilizes significant debt, with $62.448 million in debt outstanding as of September 30, 2025. This leverage amplifies both potential gains and losses, increasing financial risk.
• Organization and Offering Costs [medium — operational]: Organization and offering costs amounted to $276 thousand since inception. While these are necessary for launching the fund, they represent an initial drag on net assets.
• Interest Rate Sensitivity [medium — financial]: With $839 thousand in interest and debt expenses for the period, the fund is exposed to fluctuations in interest rates, which could impact profitability.
• Investment Valuation Risk [high — market]: The fund's assets are primarily composed of investments at fair value ($110.080 million), including $106.151 million in non-controlled/non-affiliated investments. Changes in market conditions can lead to significant unrealized gains or losses.
• Regulatory Compliance [medium — regulatory]: As a credit fund, Antares Strategic Credit Fund II LLC is subject to various financial regulations. Non-compliance could lead to penalties and reputational damage.

Industry Context

The credit fund industry is characterized by active management of debt instruments to generate income and capital appreciation. Funds like Antares Strategic Credit Fund II LLC typically operate in a competitive landscape, seeking to identify attractive risk-reward profiles in various credit markets. Trends include a focus on alternative credit, direct lending, and strategies to navigate fluctuating interest rate environments.

Regulatory Implications

As a registered investment company, Antares Strategic Credit Fund II LLC is subject to regulations governing investment advisers and funds, including disclosure requirements and capital adequacy rules. Compliance with these regulations is crucial to maintain investor trust and operational legitimacy.

What Investors Should Do

1. Review leverage strategy
2. Monitor investment portfolio composition
3. Analyze expense structure
4. Evaluate distribution policy

Key Dates

• 2025-07-18: Fund Commencement of Operations — Marks the official start of the fund's investment activities and reporting period.
• 2025-09-30: Reporting Period End — Date as of which the consolidated financial statements are presented, providing a snapshot of the fund's financial position.

Glossary

Non-controlled/non-affiliated investments

Investments in companies where the fund does not have significant influence or control, and is not related to the investee company. (Represents the largest portion of the fund's investment portfolio ($106.151 million), indicating the fund's strategy of investing in external credit opportunities.)

Accumulated net distributable earnings

The cumulative net income earned by the fund that has not yet been distributed to shareholders. (Shows the retained earnings available for distribution, currently $292 thousand.)

Paid-in capital in excess of par value

The amount received from the sale of shares above their nominal par value. (A significant component of net assets ($50.728 million), reflecting capital raised from investors beyond the nominal share value.)

Deferred offering costs

Costs incurred in connection with the issuance of securities that are deferred and amortized over a period. (Represents $177 thousand in initial costs related to launching the fund, which will be expensed over time.)

Net realized and change in unrealized gain (loss)

The sum of profits or losses from the sale of investments and the changes in the market value of investments still held. (While not a significant factor in this period (net realized loss of $19 thousand), it is a key component of overall fund performance.)

Year-Over-Year Comparison

As this is the first reported period for Antares Strategic Credit Fund II LLC, which commenced operations on July 18, 2025, there is no prior filing to compare against. All reported figures represent the fund's initial performance and financial position since inception.

Key Financial Figures

• $0.001 — rant's common shares ("Common Shares"), $0.001 par value per share, outstanding as of

Filing Documents

• ck0002065397-20250930.htm (10-Q) — 4573KB
• ck0002065397-ex31_1.htm (EX-31.1) — 18KB
• ck0002065397-ex31_2.htm (EX-31.2) — 18KB
• ck0002065397-ex32_1.htm (EX-32.1) — 12KB
• ck0002065397-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-280628.txt ( ) — 14854KB
• ck0002065397-20250930.xsd (EX-101.SCH) — 1618KB
• ck0002065397-20250930_htm.xml (XML) — 2801KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 16 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 35 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 48 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 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 II LLC (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

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements ANTARES STRATEGIC CREDIT FUND II LLC CONSOLIDATED STATEMENT OF ASSETS AND L IABILITIES (in thousands, except share and per share amounts) September 30, 2025 (Unaudited) ASSETS Investments at fair value: Non-controlled/non-affiliated investments, at fair value (amortized cost — $ 106,041 as of September 30, 2025) $ 106,151 Short-term investments (amortized cost — $ 3,929 as of September 30, 2025) 3,929 Total investments at fair value 110,080 Cash 3,006 Foreign currencies (cost — $ 89 as of September 30, 2025) 88 Interest receivable from non-controlled/non-affiliated investments 387 Deferred offering costs 177 Receivable from adviser (Note 3) 792 Prepaid expenses and other assets 172 Total assets $ 114,702 LIABILITIES Debt outstanding $ 62,448 Less: Deferred financing costs ( 1,840 ) Total debt, net of deferred financing costs 60,608 Payable for investments purchased 995 Interest payable 146 Distributions payable 420 Administrative service fee payable 149 Accrued expenses and other liabilities 484 Due to affiliates 878 Total liabilities 63,680 Commitments and contingencies (Note 7) NET ASSETS Common Shares, par value $ 0.001 ( 2,028,811 shares issued and outstanding as of September 30, 2025) 2 Paid-in capital in excess of par value 50,728 Accumulated net distributable earnings 292 Total net assets 51,022 Total liabilities and net assets $ 114,702 Net asset value per share $ 25.15 See accompanying notes to the consolidated financial statements. 4 Table of Contents ANTARES STRATEGIC CREDIT FUND II LLC C ONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, 2025 (1) Period from April 15, 2025 (inception) to September 30, 2025 (1) Investment income: From total investments: Interest income $ 2,0

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