Fidelity Private Credit Fund

The Fidelity Private Credit Fund, a non-diversified closed-end BDC, reported strong growth in FY 2025, with total investment income rising 77% YoY to $200.4M from $113.3M in 2024, driven by portfolio expansion to $2.29B from $1.4B and weighted average yield of 9.11%. Interest income increased to $187.5M, dividends to $9.4M, and other income to $3.5M. Net investment income after taxes reached $104.1M, up from $64.0M, supported by net expenses of $96.2M. However, net realized and unrealized losses totaled -$28.2M, resulting in net increase in net assets from operations of $75.9M, a 19% YoY rise from $63.6M. Balance sheet strengthened with total assets at $2.36B, net assets $1.28B, and debt $1.04B. Operating cash flow was negative at -$839.8M due to $1.39B in investment purchases offset by $454.3M proceeds, financed by $847.4M inflows including $1.11B borrowings. NAV per share stable at $25 across classes. Forward-looking, sustained high yields and deployment amid moderating SOFR (3.90%) position the fund for income generation, though rate volatility and borrower cash flows pose risks.

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