Fidelity Private Credit Fund declared a supplemental distribution while reporting that a completed borrower restructuring contributed to a realized loss during July 2026.
On August 27, the nontraded business development company declared a regular gross distribution of $0.175 per share for each share class, plus a variable supplemental distribution of $0.016 per share. Together, the two distributions total $0.191 per share before applicable class-specific stockholder servicing fees. The distributions are payable to shareholders of record as of August 31, 2026, and are expected to be paid on or about September 30.
The fund generated net investment income of $0.21 per share during July, which covered the approximately $0.19 combined distribution. However, NAV declined by $0.03 per share during the month. Fidelity attributed the change primarily to $0.16 per share of realized losses, partly offset by $0.02 per share of income accretion and $0.11 per share of unrealized gains.
The realized loss primarily resulted from the completed restructuring of STG Distribution LLC, a broadly syndicated borrower that represented approximately 0.3% of the fund’s fair value as of June 30. When STG emerged from bankruptcy in July, the fund’s accumulated unrealized losses were converted to realized losses. Corresponding unrealized gains reversed part of the earlier markdown, leaving the restructuring’s overall effect on NAV largely unchanged.
Fidelity reported a Class I NAV of $24.69 as of July 31, compared with $24.72 after the previous month’s distribution and valuation activity. The fund had aggregate NAV of approximately $1.4 billion, a $2.5 billion investment portfolio, and $1.1 billion of principal debt outstanding. Its debt-to-equity ratio was approximately 0.83 times.
The fund also reported no non-accrual investments and a weighted-average loan mark of 98.4 as of July 31. Class I shares generated a 0.65% total net return for July and a 3.78% year-to-date return. Fidelity’s July fact sheet reported that 98.1% of the debt portfolio was first-lien and 99.8% was floating-rate.
The update highlights the distinction between distribution coverage and changes in portfolio value. Current income was sufficient to cover the regular and supplemental distributions, while the restructuring still affected the composition of the fund’s realized and unrealized results. For advisors evaluating nontraded BDC performance, net investment income, realized credit losses, NAV movement, distribution coverage, and non-accrual levels provide a more complete picture when considered together.
