INVESTMENTS

9 Months Ended

Sep. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

(4) Investments

Fair Value Measurement and Disclosures

The following table shows the composition of the Company’s investment portfolio as of September 30, 2025, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾
First Lien Secured Debt	$	222,470	$	222,969	$	—	$	3,537	$	219,432	$	—
Second Lien Secured Debt		8,688		8,688		—		—		8,688		—
Investments in Joint Venture		18,756		18,843		—		—		—		18,843
Total Investments	$	249,914	$	250,500	$	—	$	3,537	$	228,120	$	18,843

⁽¹⁾	In accordance with ASC 820, the Company’s investment in SBLA II is measured using the net asset value (or its equivalent) as a practical expedient for fair value and has not been classified in the fair value hierarchy.

The following table shows the composition of the Company’s investment portfolio as of December 31, 2024, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3
First Lien Secured Debt	$	43,714	$	43,714	$	—	$	—	$	43,714
Total Investments	$	43,714	$	43,714	$	—	$	—	$	43,714

The following table presents changes in the fair value of the Company’s investments for which Level 3 inputs were used to determine the fair value for the nine months ended September 30, 2025:

	For the nine months ended September 30, 2025
	First Lien Secured Debt			Second Lien Secured Debt
Fair value as of December 31, 2024	$	43,714		$	—
Purchases, including capitalized PIK		195,549			8,685
Sales and repayments		(20,626	)		—
Net (amortization) accretion on investments		370			3
Net realized gains (losses)		—			—
Net change in unrealized gains (losses)		425			—
Transfers out of Level 3⁽¹⁾		—			—
Transfers into Level 3⁽¹⁾		—			—
Fair value as of September 30, 2025	$	219,432		$	8,688
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2025	$	502		$	—

⁽¹⁾	For the nine months ended September 30, 2025, there were no transfers out of/into Level 3.

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of September 30, 2025 and December 31, 2024. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of September 30, 2025, were as follows:

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

Fair Value

Valuation
Techniques/
Methodologies

Unobservable
Input

Range

Weighted
Average⁽¹⁾

First Lien Secured Debt

215,385

Income Approach

Discount Rate

6.88% - 9.24%

8.44%

First Lien Secured Debt

4,047

Market Approach

Transaction Price

N/A

Second Lien Secured Debt

8,688

Market Approach

Transaction Price

N/A

Total Level 3 Investments

228,120

The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2024, were as follows:

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

Fair Value

Valuation
Techniques/
Methodologies

Unobservable
Input

Range

Weighted
Average ⁽¹⁾

First Lien Secured Debt

43,714

Market Approach

Transaction Price

N/A

Total Level 3 Investments

43,714

⁽¹⁾	Weighted averages are calculated based on fair value of investments.

The significant unobservable input used in the market approach is the transaction price to acquire the position. There has been no change to the valuation based on the underlying assumptions used at the closing of such transaction. The significant unobservable input used in the income approach is the discount rate. The discount rate is used to discount the estimated future cash flows, which include both future principal and interest payments expected to be received from the underlying investment. An increase/decrease in the discount rate would result in a decrease/ increase, respectively, in the fair value. There have been no material changes to the valuation approaches utilized during the period ended December 31, 2024 or the three and nine months ended September 30, 2025.

Joint Venture

On May 6, 2025, the Company entered into a joint venture with Stifel Bank & Trust (the “JV partner”). The joint venture is called SBLA Private Credit II LLC (the “SBLA II JV”). On March 11, 2025, the SBLA II JV established SBLA Private Credit II Funding, LLC, a wholly-owned subsidiary of the SBLA II JV and a Delaware limited liability company that is a disregarded entity for tax purposes, to hold investment collateral in connection with a credit facility.

The Company and the JV partner have $60 million and $8.6 million, respectively, in total commitments to SBLA II JV, with targeted member ownership interests of approximately 87.5% and 12.5%, respectively. The Company and the JV partner have equal voting rights with respect to the SBLA II JV and the SBLA II JV’s general partner. The SBLA II JV will not be consolidated in the Company’s Consolidated Financial Statements. As of September 30, 2025, the Company had commitments of $60 million to the SBLA II JV, of which $41 million remained unfunded.

SBLA Private Credit II LLC

Consolidated Schedule of Investments

September 30, 2025

(in thousands, except share amounts, per share data, percentages and as otherwise noted)

Investments⁽¹⁾	Reference Rate and Spread	Interest Rate⁽²⁾	Maturity Date	Par Amount/ Units		Cost⁽³⁾			Fair Value			% of Net Assets
Investments- non-controlled/non-affiliated
First Lien Secured Debt^{(4 )( 5 )}

Aerospace & Defense
Unical Aviation Inc (Term Loan)	1M S + 3.75%	7.91%	11/7/2031	$	3,426	$	3,393		$	3,400			15.79	%
							3,393			3,400			15.79
Automobile Components
ATCDT Corp (Term Loan)	1M S + 3.75%	8.01%	1/25/2028		6,010		5,955			5,950			27.63
							5,955			5,950			27.63
Beverages
King Juice (Revolver)	3M S + 4.35%	N/A	3/25/2027		–		(9	)		(7	)		(0.03	)
King Juice (Term Loan B)	3M S + 4.35%	8.52%	3/25/2027		1,030		1,023			1,025			4.76
							1,015			1,018			4.73
Commercial Services & Supplies
KDV Label (Term Loan)	3M S + 4.25%	8.42%	6/11/2026		3,600		3,580			3,582			16.63
KDV Label (Delayed Draw)	3M S + 4.25%	N/A	6/11/2026		–		(3	)		(8	)		(0.03	)
							3,576			3,575			16.60
Construction & Engineering
Discovery Marketing And Distributing, LLC (Term Loan)	3M S + 4.25%	8.25%	8/10/2027		7,368		7,305			7,322			34.00
							7,305			7,322			34.00
Construction Materials
Concrete Partners, LLC (Term Loan)	1M S + 3.25%	7.51%	7/27/2029		3,152		3,123			3,152			14.64
							3,123			3,152			14.64
Containers & Packaging
Accord Buyer LLC (Term Loan)	1M S + 4.50%	8.65%	5/19/2028		3,791		3,758			3,744			17.39
Accord Buyer LLC (Term Loan B)	1M S + 4.50%	8.65%	5/19/2028		456		456			443			2.06
							4,215			4,187			19.45
Financial Services
Trimont Holdings LLC (Term Loan)	1M S + 3.00%	7.16%	5/31/2027		11,400		11,299			11,286			52.41
							11,299			11,286			52.41
Industrials
Fairbank Equipment (Term Loan)	3M S + 3.75%	7.87%	12/23/2026		3,987		3,949			3,952			18.35
Madison Safety & Flow LLC (Revolver)	3M S + 2.75%	N/A	9/26/2029		–		–			–			–
							3,949			3,952			18.35
Leisure Products
Buffalo Games LLC	3M S + 2.50%	6.50%	8/31/2027		1,257		1,247			1,251			5.81
							1,247			1,251			5.81
Machinery
Rental Equipment Investment Co. (Term Loan)	1M S + 4.25%	8.52%	12/23/2026		2,378		2,356			2,378			11.04
Seakeeper Technologies LLC (Term Loan)	3M S + 3.25%	7.56%	7/19/2027		7,928		7,861			7,879			36.59
SkyMark Refuelers (Term Loan)	3M S + 3.00%	7.24%	12/31/2026		3,149		3,125			3,134			14.55
SkyMark Refuelers (Term Loan B)	3M S + 3.00%	7.24%	12/31/2026		1,242		1,233			1,236			5.74
							14,575			14,627			67.92
Professional Services
Investor Group Services LLC (Term Loan)	1M S + 3.25%	7.47%	10/21/2027		5,225		5,177			5,179			24.05
							5,177			5,179			24.05
Real Estate Management & Development
Royal Property Company Borrower LLC (Term Loan)	1M S + 4.00%	8.16%	2/2/2028		6,114		6,060			6,084			28.25
							6,060			6,084			28.25
Specialty Retail
Alliance Mobile Inc (Term Loan)	3M S + 3.50%	7.50%	8/1/2028		6,546		6,498			6,506			30.21
Alliance Mobile Inc (Incremental Term Loan)	3M S + 3.50%	7.50%	8/1/2028		984		975			978			4.54
Alliance Mobile Inc (Delayed Draw)	3M S + 3.75%	7.79%	8/31/2026		606		606			602			2.80
M&M Thrift Management Comp LLC (Term Loan)	3M S + 2.25%	6.35%	12/1/2026		4,505		4,472			4,472			20.77
							12,551			12,558			58.32
Real Estate Management & Development
Waterworks Solutions (Incremental Term Loan)	1M S + 4.00%	8.26%	11/23/2027		2,938		2,911			2,908			13.51
							2,911			2,908			13.51
Total First Lien Secured Debt						$	86,350		$	86,448			401.45	%

Total Investments at Fair Value						$	86,350		$	86,448			401.45	%

⁽¹⁾	Unless otherwise indicated, debt investments held by the SBLA II JV are denominated in USD dollars and are income producing. All investments are pledged as collateral under a credit facility, unless otherwise indicated.

⁽²⁾	Unless otherwise indicated, loan contains a variable rate structure, and may be subject to an interest rate floor. Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”), which generally resets periodically. For each loan, the SBLA II JV has indicated the reference rate used (including any adjustments per the loan agreements), and provided the spread and interest rate in effect as of September 30, 2025.

⁽³⁾	The cost represents the original cost adjusted for the accretion of discounts and amortization of premiums, as applicable, on debt investments using the effective interest method in accordance with U.S. GAAP.

⁽⁴⁾	Unless otherwise indicated, issuers of debt held by the SBLA II JV are domiciled in the United States.

⁽⁵⁾	All investments are valued using unobservable inputs (Level 3), unless otherwise noted (see “Note 2 - Summary of Significant Accounting Policies and Note 4 - Investments”).

SBLA Private Credit II LLC

Consolidated Financial Statements

(in thousands, except share amounts, per share data, percentages, and as otherwise noted)

The following table presents the statement of assets and liabilities information of the SBLA II JV as of September 30, 2025.

	September 30, 2025

ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (cost $86,350)	$	86,448
Cash and cash equivalents		5,736
Interest receivable from non-controlled/non-affiliated investments		182
Receivable for investments sold		8
Total assets	$	92,374

LIABILITIES
Debt (net of deferred financing costs of $1,233)	$	68,967
Interest payable		1,277
Distribution payable		483
Professional fees payable		71
Administration fees payable		42
Total liabilities	$	70,840
MEMBERS’ EQUITY
Members’ Equity	$	21,534
Total members’ equity	$	21,534
Total liabilities and members’ equity	$	92,374

The following table presents the selected consolidated statements of operations information of the SBLA II JV for the period from May 6, 2025 (commencement of operations) to September 30, 2025:

	For the three months ended September 30, 2025		For the period from May 6, 2025 (commencement of operations) to September 30, 2025
Investment income
Non-controlled/non-affiliated investments:
Interest income	$	1,902	$	2,536
Fee income		27		14
Total investment income	$	1,929	$	2,550


Expenses
Interest expense	$	1,378	$	1,799
Professional fees		37		71
Administration fees		31		41
Total expenses	$	1,446	$	1,911

Net expenses	$	1,446	$	1,911
Net investment income	$	483	$	639

Net realized gain (loss) and change in unrealized gain (loss)
Net change in unrealized gain (loss):
Non-controlled/non-affiliated investments	$	98	$	98
Net change in unrealized gain (loss):	$	98	$	98
Net realized gain (loss) and change in unrealized gain (loss)	$	98	$	98
Net increase (decrease) in net assets resulting from operations	$	581	$	737

Lord Abbett Private Credit Fund S 10-Q