Company Summary: AB Private Lending Fund

Overview

• Type: Externally managed, non-diversified, closed-end management investment company
• Regulation: Qualified as a Business Development Company (BDC) under the Investment Company Act of 1940
• Formation: Formed as a Delaware statutory trust
• Inception of Operations: Started on April 30, 2024
• Management: Managed by AB Private Credit Investors LLC (the Adviser), affiliated with AllianceBernstein L.P. (AB)

Investment Focus

• Primary Objective: Generate attractive risk-adjusted returns, mainly through current income, with some investments targeting long-term capital appreciation
• Portfolio Composition:
  • 80%+ of assets: Directly originated private credit and credit-related instruments
  • Other investments: Broadly syndicated loans and bonds
• Target Companies:
  • Size: Middle-market US companies with:
    • Enterprise value of $200 million to $2 billion
    • EBITDA of $10 million to $75 million
  • Industries: Enterprise software, tech-enabled services, healthcare, digital infrastructure, fast-food franchises
• Investment Types:
  • Primarily senior secured debt:
    • First lien, stretch senior, unitranche loans
    • Some second lien loans
  • Private and public debt securities, including bonds and syndicated loans
  • Equity co-investments (smaller proportion)

Portfolio and Assets

• Initial Portfolio Acquisition:
  • Date: May 1, 2024
  • Source: From affiliated insurance company, Equitable Financial Life Insurance Company (a subsidiary of Equitable Holdings, Inc.)
  • Details:
    • 4,400,000 Class I shares issued at $25.00 per share
    • Purchase price: $281.3 million
    • Borrowed funds: $171.3 million under Scotia Credit Facility
    • Consists of performing private credit investments in US middle-market businesses, aligned with the Fund’s investment strategy

Financing

• Credit Facility:
  • Borrowed from The Bank of Nova Scotia
  • Amount: Up to $75 million (initial), potentially increased to $400 million
  • Type: Revolving credit in US dollars, plus a $25 million term loan
  • Interest Rates: Term SOFR plus 2.15%, or base rate plus 1.15%
  • Duration:
    • Availability: Until May 2, 2028
    • Maturity: May 2, 2029
• Collateral: Portfolio investments secured by first-priority interest

Revenue Sources

• Interest and fees: On debt investments
• Capital Gains: From sale of investments
• Dividend Income: From equity investments
• Others: Commitment and transaction fees, prepayment premiums, PIK interest

Management and Operations

• Adviser: AB Private Credit Investors LLC
  • Source investments, perform due diligence, structuring, and ongoing monitoring
  • Pays management and incentive fees
  • Managed by a team of 13 origination professionals
• Sub-Adviser: AB High Yield
  • Manages broadly syndicated loans and high-yield bonds
  • Uses a dynamic investment process, proprietary tools (Prism and ALFA), and global research platform
• Board of Trustees: 5 members
  • A majority are independent trustees
  • Responsible for oversight, valuation, and governance

Employees

• Number of Employees: No direct employees; services provided by professionals employed by the Adviser and affiliates

Shareholders and Stock

• Shares Outstanding (as of March 31, 2025): 4,695,706 common shares
• Share Classes: Class I, Class D, Class S of beneficial interest
• Public Market Status: No established public market as of June 30, 2024
• Distribution Policy: Paid monthly at discretion, potentially funded from sources other than cash flow
• Share Repurchase Program: Up to 5% quarterly, subject to liquidity

Financials (as of the data provided)

• Revenue: Derived from interest, fees, dividends, and gains, but specific dollar amounts are not specified
• Income: Not explicitly provided; focus is on the investment strategy and asset management
• Assets: Concentrated in private credit and credit-related instruments; initial investments financed partly via credit facilities

Strategic Details

• Growth Opportunities: Driven by increased demand for private credit due to regulatory and bank consolidation impacts
• Target Companies: Larger borrowers at the upper end of the middle market, including jumbo loans exceeding $1 billion
• Risk Management: Focus on disciplined underwriting, valuation, monitoring, and diversification strategies

Note: The company’s description is based solely on the provided text; no specific revenue, profit, or detailed customer metrics are included as they are not provided in the excerpt.