Fidelity BDC Fills All Tenders as Redemption Requests Ease to 2.5%

Fidelity Private Credit Fund said redemption requests in its third-quarter tender offer fell to 2.5% of shares from about 3% in the second quarter, and the nontraded business development company accepted all of them for a fourth consecutive quarter.

Shareholders tendered 1,367,793 shares against a cap of 2,710,510 shares, down from the 1,552,234 shares tendered in the second quarter, as AltsWire reported in July. The decline followed two consecutive quarterly increases from 446,086 shares tendered in the fourth quarter of 2025. The fund repurchased the shares at $24.48 per share, its net asset value as of Sept. 30, and paid tendering shareholders about $33.5 million on or about Oct. 26. The fund said it recorded net inflows for a 15th consecutive quarter.

Across the 19 NAV BDCs that had reported third-quarter tender results, requests totaled 11.5% of estimated tender offer NAV, down from 12.7% in the second quarter on a same-store basis, according to Robert A. Stanger & Co., AltsWire reported earlier this month.

Third-quarter net investment income was $0.58 per share, covering the period’s $0.57 per share distribution, the fund said. Realized losses rose to $0.18 per share from $0.05 per share in the second quarter, which the fund attributed primarily to completed restructurings of two broadly syndicated borrowers. Net unrealized losses of $0.07 per share included a non-cash valuation change of $0.08 per share on interest rate swaps tied to the fund’s unsecured fixed-rate debt.

Class I NAV per share was $24.48 as of Sept. 30, down from $24.72 at June 30. Aggregate NAV was $1.4 billion against an investment portfolio with a fair value of $2.6 billion. Principal debt outstanding of $1.3 billion put the fund’s debt-to-equity ratio at approximately 0.92x, up from 0.88x at June 30.

The fund reported a weighted-average mark of 98.1 on its funded private credit investments, compared with 98.4 at Aug. 31, and no investments on non-accrual status. Payment-in-kind income was 2.0% on a trailing 12-month basis.

Class I shares returned 4.52% year to date through September, outperforming the Morningstar LSTA US Leveraged Loan Index by 123 basis points and the ICE BofA US High Yield Index by 448 basis points, the fund said. The margin over leveraged loans has narrowed through the year, from 226 basis points in the first quarter to 157 basis points through July, AltsWire reported in August. The fund attributed its performance to modest software exposure, disciplined underwriting, and its monthly cash distribution.

The fund declared an October distribution of $0.1750 per share on a gross basis, plus a variable supplemental distribution of $0.0160 per share, unchanged from each of the prior three months. Both are payable on or about Nov. 30 to shareholders of record as of Oct. 30.

Fidelity Private Credit Fund is offering up to $4 billion in shares on a continuous basis. Including its private offering, the fund reported total consideration of $1.43 billion for 56.3 million shares through the Oct. 1 subscription date.

Fidelity Private Credit Fund, sponsored by Fidelity Investments, invests in directly originated private credit.

Visit the AltsWire directory page.