AB Private Lending Fund Adds Shareholders as Larger BDC Peers Face Proration
AB Private Lending Fund, AllianceBernstein’s nontraded business development company focused on U.S. direct lending, has launched its second-quarter repurchase offer, opening a window for shareholders to tender shares at net asset value. The offer comes as the fund continues to grow its shareholder base and accept all tender requests, in contrast to sector peers facing heavier quarterly redemption pressure.
The offer, which opened June 26 and runs through July 30, 2026, covers up to 338,368 shares at a price per share equal to NAV as of June 30. The most recently disclosed NAV was $24.72 as of May 31, putting the maximum repurchase at approximately $8.4 million. Payment is expected on or around Aug. 6.
The offer cap is larger than the 323,424 shares the fund offered to repurchase in its first-quarter tender – a roughly 4.6% increase that reflects growth in shares outstanding since year-end 2025. As of March 31, the fund had approximately 6.77 million Class I shares outstanding, placing total net assets at around $167 million.
Demand came in well below the cap in the first-quarter tender. Of the 323,424 shares offered for repurchase, shareholders tendered 203,776 – 63% of the cap – and the fund accepted all of them at $24.66 per share. Shareholders whose shares were issued within the prior 12 months received $24.17 per share after a 2% early repurchase deduction. Total payout in the first-quarter tender was approximately $4.9 million.
That undersubscription contrasts with several larger nontraded BDCs, where quarterly redemption demand has consistently exceeded the 5% cap and triggered proration. Ares Strategic Income Fund, for example, reported demand of 14.4% of NAV in its second-quarter tender – nearly three times the repurchase cap. Apollo Debt Solutions BDC saw withdrawal requests of 16.8% in the same period.
AB Private Lending Fund is managed by AB Private Credit Investors LLC, AllianceBernstein’s direct lending platform established in 2014, with AB’s high-yield team as sub-adviser. The fund launched its public offering in August 2024, targeting middle-market companies through first-lien term loans and other credit instruments.
Shares subject to the early repurchase deduction are those issued on or after July 1, 2025 – meaning investors who entered the fund in the second half of last year and choose to exit this quarter will see a 2% reduction in proceeds. Shares issued through the fund’s distribution reinvestment plan are exempt from the deduction.
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