Fidelity Private Credit fills all Q3 tenders as requests fall to 2.5%

Fidelity Private Credit Fund filled every third-quarter redemption request, with tenders easing to 2.5% of shares from about 3% in the second quarter, AltsWire reported Oct. 28. All tenders were accepted for a fourth consecutive quarter at the $1.4 billion nontraded business development company.

Shareholders tendered 1,367,793 shares against a 2,710,510-share cap, down from 1,552,234 in the second quarter. The total had risen in the two prior quarters from 446,086 in the fourth quarter of 2025.

The fund repurchased the shares at $24.48, its Class I net asset value at Sept. 30, and paid tendering shareholders about $33.5 million on or about Oct. 26. It recorded net inflows for a 15th consecutive quarter.

For advisors who use the fund as a scheduled liquidity sleeve, every tendered share became cash at net asset value, with no proration and no partial fill. Ares Strategic Income Fund filled 38.2% of repurchase requests totaling 13.1% of shares against a 5% cap in the third quarter, as Private Wealth Daily previously reported. At Fidelity, the offset sits on the balance sheet rather than in the queue: debt-to-equity rose to about 0.92x from 0.88x at June 30, and realized losses widened to $0.18 a share from $0.05.

Requests fell across the group as well. Among 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.

The fund attributed the realized losses primarily to completed restructurings of two broadly syndicated borrowers. Net unrealized losses of $0.07 a share included a $0.08 non-cash valuation change on interest rate swaps tied to the fund's unsecured fixed-rate debt. Net investment income of $0.58 a share covered the $0.57 distribution. Class I NAV per share was $24.48 at Sept. 30, down from $24.72 at June 30.

Aggregate net asset value was $1.4 billion against a portfolio fair value of $2.6 billion, with $1.3 billion of principal debt outstanding. The weighted-average mark on funded private credit investments was 98.1, down from 98.4 at Aug. 31, with no investments on non-accrual. Payment-in-kind income was 2.0% on a trailing 12-month basis.

The fund declared an October distribution of $0.1750 a share plus a $0.0160 variable supplemental, unchanged from each of the prior three months, payable on or about Nov. 30. Class I shares returned 4.52% year to date through September, the fund said. The return beat the Morningstar LSTA US Leveraged Loan Index by 123 basis points and the ICE BofA US High Yield Index by 448 basis points. Its margin over leveraged loans narrowed from 226 basis points in the first quarter to 157 basis points through July.