Investment Activity - The company reported net funded investment activity of $(25,047) thousand for the three months ended September 30, 2025, compared to $47,543 thousand for the same period in 2024[355]. - New gross commitments at par for the three months ended September 30, 2025, were $29,236 thousand, significantly lower than $225,612 thousand in 2024[355]. - Net funded investment activity for the nine months ended September 30, 2025, was $(101,519) thousand, compared to $401,975 thousand for the same period in 2024[357]. - The number of portfolio companies increased to 213 at the end of September 2025, up from 202 in September 2024[355]. - The company had 499 total investments as of September 30, 2025, compared to 457 in the same period of 2024[355]. Financial Performance - Total investment income for the three months ended September 30, 2025 was $51,106,000, a decrease of 15.2% from $60,280,000 for the same period in 2024[371]. - Net investment income for the three months ended September 30, 2025 was $21,386,000, down from $31,489,000 in the same period of 2024, representing a decline of 32.1%[371]. - For the nine months ended September 30, 2025, net investment income was $71,694,000, a decrease of 22.2% from $92,230,000 for the same period in 2024[373]. - Net expenses increased to $29,720,000 for the three months ended September 30, 2025, compared to $28,791,000 for the same period in 2024[375]. Debt and Financing - The weighted average annual interest rate on new debt investments at par decreased to 9.17% in 2025 from 9.63% in 2024[355]. - The weighted average annual interest rate on new debt investments at par decreased to 9.30% in 2025 from 10.16% in 2024[357]. - The company recorded a net realized loss on investments of $(8,078,000) for the nine months ended September 30, 2025, compared to a net realized loss of $(1,522,000) for the same period in 2024[373]. - As of September 30, 2025, total debt obligations amount to $1,104.314 million, with $355.5 million due in 3 to 5 years and $748.814 million due in more than 5 years[446]. - The company issued $300 million in 6.650% Notes due 2030, with interest payable semi-annually starting September 15, 2025[443]. Investment Strategy - The company focuses on investing in U.S. middle market companies with annual EBITDA between $10 million and $250 million[344]. - The company is required to invest at least 70% of total assets in qualifying assets to maintain its status as a Business Development Company (BDC)[350]. - The company has entered into an investment advisory agreement with Churchill DLC Advisor LLC for portfolio management[345]. - The company has invested primarily in illiquid debt and equity securities of private companies, which are valued at fair value as determined by the Adviser[475]. Market Conditions and Risks - The company is closely monitoring macro-economic risks, including potential impacts from changes to trade policies[366]. - The company may face restrictions on financing access due to potential economic downturns, impacting future investments[388]. - The company is subject to interest rate risk, which could materially affect net investment income due to fluctuations in market interest rates[476]. - Interest income is projected to change significantly with interest rate fluctuations, with a potential decrease of $41,342,000 in net income if rates drop by 300 basis points[481]. Shareholder Returns - The company intends to make quarterly distributions to common shareholders based on taxable earnings and available cash[396]. - For the nine months ended September 30, 2025, the company declared dividends of $0.45 per share for three quarters and a special dividend of $0.10[399]. - The Board declared a regular dividend of $0.45 per share payable on or around January 27, 2026, to shareholders of record as of December 31, 2025[473]. Regulatory and Compliance - The company has no uncertain tax positions as of September 30, 2025, that met the recognition or measurement criteria[470]. - The company intends to maintain its qualification as a RIC to avoid U.S. federal income taxes on ordinary income or capital gains[469]. - The company has received SEC exemptive relief for co-investment transactions, allowing participation with affiliated entities under certain conditions[451]. Asset Valuation - The valuation of portfolio investments is critical, with assets valued quarterly or more frequently, impacting the reported amounts in financial statements[454][455]. - As of September 30, 2025, the total fair value of investments was $1,967,882 thousand, down from $2,081,379 thousand as of December 31, 2024[359]. - The weighted average yield on debt and income producing investments at fair value decreased from 10.40% as of December 31, 2024, to 9.97% as of September 30, 2025[362].
Nuveen Churchill Direct Lending(NCDL) - 2025 Q3 - Quarterly Report