Q3 Tender Requests Fall Well Short of Limits at Five Funds

While redemption demand at several large nontraded private credit funds forced another round of prorated payouts in the third quarter, five other funds that recently reported tender offer results accepted every share submitted, with requests falling short of their offer limits.

North Haven Private Assets Fund, StepStone Private Venture and Growth Fund, FS MVP Private Markets Fund, Bain Capital Private Credit, and Fidelity Private Credit Fund received tenders ranging from about 2% to roughly half of their offer limits, according to AltsWire calculations based on figures reported by the funds. The first three are private markets funds that offer quarterly liquidity through tender offers; Bain Capital Private Credit and Fidelity Private Credit Fund are nontraded business development companies.

The results stand in contrast to Blackstone Private Credit Fund, or BCRED, where third-quarter requests reached roughly 10% of shares outstanding and the fund repurchased about $2.13 billion, filling roughly half of requests. BlackRock’s HPS Corporate Lending Fund, or HLEND, prorated its tender for a third straight quarter, accepting 43.7% of shares tendered and paying approximately $603 million. Both funds cap quarterly repurchases at 5% of shares outstanding.

Morgan Stanley’s North Haven Private Income Fund, a nontraded BDC, also prorated. The fund accepted approximately 43.7% of the units validly tendered, repurchasing 8,633,441 units, or about 5% of units outstanding as of June 30, and paid approximately $152.3 million on or about Oct. 27 at a Sept. 30 net asset value, or NAV, of $17.64 per unit. In September, the fund had put requests at about 11.4% of units outstanding and estimated preliminary proration at 43.8%, as AltsWire reported. Requests covered approximately 11.6% of units in the second quarter, according to the fund, and 10.9% in the first.

Morgan Stanley’s North Haven Private Assets Fund, the largest of the five funds that filled every request, is advised by Morgan Stanley AIP GP LP and invests primarily in private equity, mainly by buying secondary interests in existing private funds and through co-investments and GP-led secondaries, with smaller commitments to new funds. It is open to investors who meet the “qualified client” standard, and its adviser intends to recommend quarterly repurchase offers of no more than 5% of net assets, according to the company.

For the third quarter, the fund offered to repurchase up to approximately $521.6 million, or 5% of its net assets as of June 30. Shareholders tendered about 517,000 shares, worth roughly $12.7 million at the fund’s Sept. 30 NAV of $24.49 per Class S share and $24.66 per Class I share.

StepStone Private Venture and Growth Fund, formerly Conversus StepStone Private Venture and Growth Fund, invests in venture capital and growth equity, primarily through secondaries and direct investments alongside commitments to new venture funds. It is advised by StepStone Group Private Wealth LLC and sub-advised by StepStone Group LP. Its quarterly repurchase program targets up to 2.5% of outstanding shares, half the 5% level used by the other four funds.

The StepStone fund offered to repurchase up to 2.5% of its outstanding shares, an estimated $218.7 million based on its $8.75 billion NAV as of June 30. Shareholders tendered shares worth $64 million at the Sept. 30 valuation, including $42.3 million of Class I shares and $21.7 million of Class S shares, and the fund paid 100% of the NAV tendered. Tenders were nearly level with the second quarter, when they totaled about $65.5 million.

FS MVP Private Markets Fund, sponsored by Future Standard, formerly FS Investments, targets primarily private equity and, to a lesser extent, private credit, investing mainly through direct equity investments and secondaries. Its predecessor, MVP Private Market L.P., began investing in July 2021, and the fund had about $1.85 billion in net assets as of June 30.

In the third quarter, FS MVP offered to repurchase up to approximately $92.5 million of shares. Shareholders tendered about 1.06 million shares, all of which the fund accepted, for an aggregate purchase price of approximately $15 million after early repurchase deductions. The fund’s Sept. 30 NAV was $14.36 per Class I share and $13.82 per Class A share.

Bain Capital Private Credit offered to buy up to 2,195,257 shares, or 5% of shares outstanding as of June 30, as AltsWire reported in August. Shareholders tendered 91,611 shares, and the fund paid approximately $2.4 million on or about Oct. 30 through promissory notes, based on its Sept. 30 NAV of $26.03 per share. Entities affiliated with Bain Capital, including the general partner of an offshore access fund, beneficially own a combined 86.6% of the fund’s shares.

Fidelity Private Credit Fund, whose offer AltsWire also reported in August, sought to repurchase up to 2,710,510 shares, or 5% of the 54.2 million shares outstanding as of June 30. Shareholders tendered 1,367,793 shares, about half the limit, and the fund accepted all of them, paying approximately $33.5 million in cash on or about Oct. 26. Its Sept. 30 NAV was $24.48 per Class I share and $24.46 per Class S share.

Fourth-Quarter Offers

Fourth-quarter tender offers opened this week at several funds. BCRED is offering to repurchase up to 87.5 million shares through Dec. 1, and Bain Capital Private Credit up to 2,227,873 shares through Dec. 2, each representing 5% of shares outstanding as of Sept. 30. FS MVP Private Markets Fund is offering to repurchase up to approximately $98.6 million, or 5% of net assets, through Dec. 7.

North Haven Private Income Fund and T. Rowe Price OHA Select Private Credit Fund also opened 5% offers, expiring Dec. 4 and Dec. 1, respectively. Shares accepted in each offer will be repurchased at NAV as of Dec. 31, except North Haven Private Income Fund, which values tendered units as of Dec. 11.

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