Fidelity BDC Accepts All Shares Tendered as Redemption Demand Triples

Fidelity Private Credit Fund has accepted every share tendered in three straight quarterly repurchase offers. But demand has more than tripled since the fourth quarter of 2025, even as the fund’s net asset value has softened each period.

The nontraded business development company disclosed the results of its second-quarter tender Wednesday; stockholders validly tendered 1,552,234 shares – about 58% of the fund’s 2,670,303-share tender cap – and the fund accepted all of them without proration. Shares were repurchased at $24.72, the net asset value as of the June 30 valuation date, and the fund paid tendering shareholders approximately $38.4 million on or about July 27, representing 99.9% of the NAV of the shares tendered. The offer expired May 29, more than a month before the June 30 valuation date.

The result extends a pattern stretching back three quarters. In the fourth quarter of 2025, just 446,086 shares were tendered against a 2,302,966-share cap, at a NAV of $25.10. In the first quarter of 2026, tendered shares jumped to 1,427,358 against a 2,541,707-share cap, with NAV at $24.95. Demand has climbed in each period even as per-share NAV has declined.

The rising-demand pattern echoes elsewhere in the nontraded BDC sector, though with a different outcome. HPS Corporate Lending Fund’s second-quarter repurchase requests climbed to 13.3% of shares outstanding, up from 9.3% in the first quarter, breaching its 5% quarterly cap and forcing proration in both periods, AltsWire reported in June. Fidelity’s demand has grown at a comparable pace but has yet to approach its cap closely enough to trigger a similar result.

Fidelity Private Credit Fund generated net investment income of $0.57 per share in the second quarter, matching the period’s $0.57 per share distribution. The fund reported realized losses of $0.05 per share and unrealized losses of $0.18 per share, including a $0.04 non-cash valuation adjustment tied to an interest rate swap. Fidelity Diversifying Solutions LLC, the fund’s adviser, said the fund’s year-to-date total return of 3.11% for Class I shares outperformed leveraged loans by 180 basis points and high-yield bonds by 122 basis points, citing the fund’s modest software exposure, disciplined underwriting, and monthly cash dividend.

AltsWire previously reported in April that the fund’s first-quarter return of 1.71% outperformed both benchmarks by 226 basis points, a performance the adviser attributed at the time to a similar mix of underwriting discipline and limited software-sector exposure amid a broader valuation reset in the sector.

The fund continues to offer shares on a continuous basis, with a $4 billion target for the offering.

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