Net Assets

6 Months Ended

Jun. 30, 2025

Note 8. Net Assets

Subscriptions

The Company is a non-exchange traded, perpetual-life BDC, which is a BDC whose shares are not listed for trading on a stock exchange or other securities market. We previously offered our Common Shares, pursuant to the terms set forth in the Company’s Confidential Private Placement Memorandum (the “Private Offering”) and subscription agreements that we entered into with investors in connection with the Private Offering (each, a “Subscription Agreement”). The Common Shares issued under the Private Offering were sold under the exemption provided by Section 4(a)(2) of the Securities Act of 1933 as amended (the “Securities Act”) only to investors that are “accredited investors” in accordance with Rule 506 of Regulation D promulgated under the Securities Act, and other exemptions of similar import in the laws of the states and jurisdictions where the Private Offering was made.

On June 24, 2024, the Company received a notice of effectiveness related to the Company’s registration statement on Form N-2 (as amended, the “N-2 Registration Statement”). Pursuant to the N-2 Registration Statement and the Multi-Class Order, the Company has the authority to issue up to $2,000,000,000 of its Class S shares, Class D shares, and Class I shares.

For the six months ended June 30, 2025 related parties made no purchases of the Company's Common Shares and for the six months ended June 30, 2024, related parties made purchases of 326,554 Class I shares of the Company for aggregate proceeds of $6,750,000.

Certain third-party investors make their investment in the Company through certain affiliated feeder entities specifically designed to invest in the Company. As of June 30, 2025 and December 31, 2024, 18,174,385 and 14,559,724 Class I shares were owned by these affiliated feeder entities, respectively.

The following table summarizes transactions in Common Shares during the three and six months ended June 30, 2025 and June 30, 2024:


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2025				2024(1)				2025						2024(1)
	Shares		Amount		Shares		Amount		Shares			Amount			Shares		Amount
Class I
Subscriptions		1,875,664	$	37,622,000		4,744,273	$	97,359,157		4,517,006		$	91,754,996			5,090,775	$	104,522,157
Share transfers between classes		—	$	—		—	$	—		—		$	—			—	$	—
Distributions reinvested		524,658	$	10,419,716		263,981	$	5,361,226		1,435,593		$	28,973,183			638,938	$	13,125,543
Share repurchases		—	$	—		—	$	—		(736	)	$	(14,875	)		—	$	—
Early repurchase deduction		—	$	—		—	$	—		—		$	—			—	$	—
Net increase (decrease)		2,400,322	$	48,041,716		5,008,254	$	102,720,383		5,951,863		$	120,713,304			5,729,713	$	117,647,700
Class S
Subscriptions		2,874	$	57,900		—	$	—		2,874		$	57,900			—	$	—
Share transfers between classes		—	$	—		—	$	—		—		$	—			—	$	—
Distributions reinvested		57	$	1,142		—	$	—		57		$	1,142			—	$	—
Share repurchases		—	$	—		—	$	—		—		$	—			—	$	—
Early repurchase deduction		—	$	—		—	$	—		—		$	—			—	$	—
Net increase (decrease)		2,931	$	59,042		—	$	—		2,931		$	59,042			—	$	—

(1) Transactions in Common Shares issued for the period January 1, 2024 through June 23, 2024 represent issuances of Common Shares under the Private Offering, which were made pursuant to Subscription Agreements entered into with participating investors during the six months ended June 30, 2024. Common Shares issued pursuant to the Private Offering are reclassified as Class I shares to conform with current period presentation.

There were no Class D shares outstanding for the three and six months ending June 30, 2025. There were no Class S or Class D shares outstanding for the three and six months ended June 30, 2024.

Net Asset Value per Share and Offering Price

The Administrator determines net asset value for each class of shares as of the last day of each calendar month. Share issuances related to monthly subscriptions are effective the first calendar day of each month. Shares are issued at an offering price equivalent to the most recent net asset value per share available for each share class, which will be the prior calendar day net asset value per share (i.e. the prior month-end net asset value). The following tables summarize each month-end net asset value per share for Class I, Class S, and Class D Common Shares of beneficial interest during the six months ended June 30, 2025 and June 30, 2024:


	Net Asset Value Per Common Share
For the Months Ended	Class I		Class S
January 31, 2025	$	20.37	$	—
February 28, 2025		20.50		—
March 31, 2025(1)		20.07		—
April 30, 2025		20.15		20.15
May 31, 2025		19.86		19.85
June 30, 2025(1)		20.19		20.16

(1) The net asset value per Common Share reflected in the Company's report on Form 8-K may differ due to updates from estimates to actuals.


	Net Asset Value Per Common Share
For the Months Ended	Class I(1)
January 31, 2024	$	20.72
February 29, 2024		20.87
March 31, 2024(2)		20.58
April 30, 2024		20.72
May 31, 2024		20.31
June 30, 2024(2)		20.48

(1) Common Shares issued for the period January 1, 2024 through June 23, 2024 relate to the Private Offering and became Class I shares as part of Public Offering effective June 24, 2024. Common Shares issued pursuant to the Private Offering are reclassified as Class I shares to conform with current period presentation.

(2) The net asset value per Common Share reflected in the Company's report on Form 8-K may differ due to updates from estimates to actuals.

There were no Class D shares outstanding for the six months ended June 30, 2025. There were no Class S or Class D shares outstanding for the six months ended June 30, 2024.

Repurchases

The Company has commenced a discretionary share repurchase program in which it may, subject to market conditions and the discretion of the Board, offer to repurchase, in each quarter, up to 5% of the Common Shares outstanding as of the close of the previous calendar quarter; provided, however, that the Company shall, subject to the Board’s discretion and approval, repurchase Common Shares from shareholders in an amount at least equal to 10% of the Company’s net asset value in respect of the fourth calendar quarter of each of the eighth and tenth calendar years following February 1, 2023. The Board may amend, suspend or terminate the share repurchase program at any time if in its reasonable judgment if it deems such action to be in the Company’s best interest and the best interest of the Company’s shareholders. As a result, share repurchases may not be available each quarter, such as when a repurchase offer would place an undue burden on the Company’s liquidity, adversely affect its operations or risk having an adverse impact on the Company that would outweigh the benefit of the repurchase offer. The Company intends to conduct such repurchase offers in accordance with the requirements of Exchange Act Rule 13e-4 and the 1940 Act and subject to compliance with applicable covenants and any restrictions under the Company’s financing arrangements. All shares purchased by the Company pursuant to the terms of each tender offer will be redeemed and thereafter will be authorized and unissued shares.

Under our discretionary share repurchase program, to the extent we offer to repurchase shares in any particular quarter, we expect to repurchase shares pursuant to quarterly tender offers using a purchase price equal to the NAV per share as of the last calendar day of the applicable quarter.

The following table summarizes the share repurchases completed for the six months ended June 30, 2025:


Offer Date	Tender Offer Expiration	Purchase Price per Share		Shares Repurchased (Class I)		Aggregate Dollar Amount of Shares Accepted for Repurchase
November 29, 2024(1)	December 31, 2024	$	20.22		736		14,875
March 3, 2025	March 31, 2025	$	20.07		—		—
May 30, 2025(2)	June 30, 2025	$	20.18		26,300		530,729

(1) On November 29, 2024, the Company commenced a quarterly Tender Offer, pursuant to which the Company offered to repurchase up to 970,594 Common Shares, representing 5.0% of the Company’s Common Shares outstanding as of September 30, 2024. On December 31, 2024, the quarterly Tender Offer expired, and 735.65 Common Shares were tendered for repurchase. On January 31, 2025, the Company accepted the 735.65 Common Shares for purchase. The purchase price of the Common Shares tendered is the Company’s net asset value per Common Share as of December 31, 2024, or $20.22 per Common Share.

(2) On May 30, 2025, the Company commenced a quarterly Tender Offer, pursuant to which the Company offered to repurchase up to 1,282,887 Common Shares, representing 5.0% of the Company’s Common Shares outstanding as of March 31, 2025. On June 30, 2025, the quarterly Tender Offer expired, and 26,299.77 Common Shares were tendered for repurchase. On July 31, 2025, the Company accepted the 26,299.77 Common Shares for purchase. The purchase price of the Common Shares tendered is the Company’s net asset value per Common Share as of June 30, 2025, or $20.18 per Common Share.

During the six months ended June 30, 2024, no shares were tendered for repurchase.

Distributions

Distributions will be paid at the discretion of the Board and will depend on the Company’s earnings, financial condition, maintenance of the Company’s tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as the Board may deem relevant from time to time. Although the gross distribution per share is generally equivalent for each share class, the net distribution for each share class is reduced for any class specific expenses, including distribution and shareholder servicing fees, if any.

Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with GAAP. Distributions will be made to shareholders at such times and in such amounts as determined by the Board. The Company may pay distributions to its Shareholders in a year in excess of its net ordinary income and capital gains for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes. The Company intends to timely distribute to its Shareholders substantially all of its annual taxable income for each year, except that the Company may retain certain net capital gains for reinvestment and, depending upon the level of the Company’s taxable income earned in a year, the Company may choose to carry forward taxable income for distribution in the following year and pay any applicable tax. The specific tax characteristics of the Company’s distributions will be reported to Shareholders after the end of the calendar year. All distributions will be subject to available funds, and no assurance can be given that the Company will be able to declare such distributions in future periods.

We have adopted a dividend reinvestment plan (“DRP”), pursuant to which we will reinvest all cash distributions declared by the Board on behalf of our shareholders who opt-in to the plan. Shareholders who do not opt-in to the DRP will receive their distributions in cash. As a result, if the Board authorizes, and we declare, a cash distribution or other distribution, then our shareholders who have opted-in to our DRP will have their cash distributions automatically reinvested in additional shares or a combination of cash and Common Shares, rather than receiving the cash distribution. Distributions on fractional shares will be credited to each participating shareholder’s account to three decimal places.

The following tables summarize the distribution declarations and Common Shares issued pursuant to the DRP for the six months ended June 30, 2025 and June 30, 2024, respectively:


			Class I
Date Declared	Record Date	Payment Date	Amount Per Share		Distribution Declared		DRP Shares Issued		Value of DRP Shares Issued
May 13, 2025	May 13, 2025	June 26, 2025	$	0.53	$	14,563,609		524,658	$	10,419,716
March 26, 2025	March 26, 2025	March 28, 2025	$	0.56	$	14,099,609		479,852	$	9,836,970
November 12, 2024	November 29, 2024	January 28, 2025	$	0.69	$	13,468,268		431,083	$	8,716,497
					$	42,131,486		1,435,593	$	28,973,183

Of the total distributions paid during the three and six months ended June 30, 2025, $4,143,893 and $13,158,303 was distributed in cash, respectively. Of the total distributions paid for the six months ended June 30, 2025, $4,751,771 was payable as of December 31, 2024.


			Class I(1)
Date Declared	Record Date	Payment Date	Amount Per Share		Distribution Declared		DRP Shares Issued		Value of DRP Shares Issued
May 13, 2024	May 13, 2024	June 26, 2024	$	0.58	$	8,136,028		263,981	$	5,361,226
March 26, 2024	March 26, 2024	March 28, 2024	$	0.57	$	6,414,447		195,395	$	4,077,919
December 29, 2023	December 31, 2023	January 30, 2024	$	0.04	$	431,411		12,826	$	263,317
November 10, 2023	December 31, 2023	January 30, 2024	$	0.52	$	5,608,339		166,736	$	3,423,081
					$	20,590,225		638,938	$	13,125,543

Of the total distributions paid during the three and six months ended June 30, 2024, $2,774,802 and $7,464,682 was distributed in cash, respectively. Of the total distributions paid for the six months ended June 30, 2024, $2,353,352 was payable as of December 31, 2023.


			Class S
Date Declared	Record Date	Payment Date	Amount Per Share		Distribution Declared		DRP Shares Issued		Value of DRP Shares Issued
May 13, 2025	May 13, 2025	June 26, 2025	$	0.53	$	1,523		57	$	1,142
					$	1,523		57	$	1,142

Of the total distributions paid during the three and six months ended June 30, 2025, $381 was distributed in cash.

The Company may fund its cash distributions to shareholders from any source of funds available to the Company, including but not limited to offering proceeds, net investment income from operations, capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense support from the Advisor, which is subject to recoupment.

For the six months ended June 30, 2025 and June 30, 2024, a portion of the Company’s distributions resulted from expense support from the Advisor, and future distributions may result from expense support from the Advisor, each of which is subject to repayment by the Company within three years from the date of payment. Shareholders should understand that any such distribution is not based solely on the Company’s investment performance, and can only be sustained if the Company achieves positive investment performance in future periods and/or the Advisor continues to provide expense support. Shareholders should also understand that the Company’s future repayments of expense support will reduce the distributions that they would otherwise receive. There can be no assurance that the Company will achieve the performance necessary to sustain these distributions, or be able to pay distributions at all.

Sources of distributions, other than net investment income and realized gains on a GAAP basis, include required adjustments to GAAP net investment income in the current period to determine taxable income available for distributions. The following tables present the sources of distributions on a GAAP basis that the Company has declared on its Common Shares for the six months ended June 30, 2025 and June 30, 2024, respectively:


	For the Six Months Ended June 30,
	2025				2024(1)
	Class I				Class I
	Per Share		Amount		Per Share		Amount
Net investment income		0.96	$	26,919,693		0.77	$	12,776,694
Net realized gains		0.03		770,235		0.10		1,657,169
Distributions in excess of net investment income		0.03		973,290		0.01		116,612
Total		1.02	$	28,663,218		0.88	$	14,550,475

(1)

Common Shares issued for the period January 1, 2024 through June 23, 2024 relate to the Private Offering and became Class I shares as part of Public Offering effective June 24, 2024. Common Shares issued pursuant to the Private Offering are reclassified as Class I shares to conform with current period presentation.


	For the Six Months Ended June 30,
	2025				2024(1)
	Class S				Class S
	Per Share		Amount		Per Share		Amount
Net investment income		0.33	$	961		—	$	—
Net realized gains		—		—		—		—
Distributions in excess of net investment income		0.19		562		—		—
Total		0.52	$	1,523		—	$	—

(1)

There were no Class S shares outstanding during the three and six months ended June 30, 2024.

There were no Class D shares outstanding during the three and six months ended June 30, 2025 and June 30, 2024.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Kennedy Lewis Capital Co 10-Q