First Eagle Private Credit Fund Raised $105,000 in Six Months as Its Portfolio Shrank

With the adviser’s fee waivers now expired, net investment income covered less of the distributions the fund declared.

August 26, 2026

First Eagle Private Credit Fund took in $105,000 of new subscription money during the first six months of 2026, a total drawn from four monthly closings across a continuously offered vehicle registered to sell up to $5.0 billion of shares. The figure appears in the fund’s second-quarter results, released August 13 and folded into an updated prospectus dated August 25.

Two of the six monthly subscription dates in the period produced no sales at all. The four that closed brought in 4,369 Class I shares, and no Class D shares were sold. Class S, the retail tier carrying a $2,500 minimum under the fund’s newly filed subscription form, does not appear in the outstanding share counts at all. Against that trickle, the fund repurchased 40,500 shares in March, leaving fewer shares outstanding at midyear than at the start of the year: 12,422,031 against 12,457,767.

The result is a non-traded BDC that is contracting rather than ramping.

• Net assets fell to $295.6 million from $301.9 million at year end.
• Total assets fell to $591.2 million from $651.8 million.
• Cash dropped to $22.5 million from $73.3 million, much of it used to retire debt.

Net asset value per share ended June at $23.79, down 44 cents from $24.23 at the close of 2025 — and down in every one of the six months, stepping from $24.09 in January through $23.97, $23.95, $23.90 and $23.86 to the June mark. Total return based on NAV came to 3.47 percent for Class I shares over the half, against 4.44 percent in the comparable 2025 period.

A smaller, cleaner portfolio

The portfolio stood at $552.9 million of fair value at June 30 with a weighted average yield of 9.5 percent, against $658.1 million and 9.6 percent a year earlier. The fund put $67.4 million to work during the half while $80.1 million came back through sales and repayments, entering 24 new portfolio companies and exiting 28 positions, mostly by selling syndicated loans. The borrower count fell to 102 from 106, turnover slowed to 12.18 percent from 21.14 percent, and unfunded commitments dropped to $68.7 million from $97.9 million.

Credit quality moved the other way. The fund carried no investments on non-accrual status at June 30, having cleared the single non-accruing loan on its books at year end. Every performing debt position bears a floating rate. Average loan-to-value across the private book rose to 42.85 percent from 40.39 percent, and weighted average tenor shortened to 3.68 years from 4.03.

Deleveraging, at a cost

Borrowings under the fund’s two revolvers fell to $278.6 million from $339.1 million — $253.1 million drawn on the Morgan Stanley facility and $25.5 million on the JPMorgan facility, the latter down from $75.0 million. Asset coverage improved sharply as a result, to 206.1 percent from 175.7 percent a year earlier, well clear of the 150 percent floor the fund operates under.

Paying the JPMorgan line down does not relieve the fund of its cost. That facility carries a minimum utilization requirement equal to 75 percent of its $100 million size, and unused fees ran to $198,000 in the second quarter alone and $316,000 for the half, against $28,000 in the prior-year quarter.

The waivers have run out

The most consequential change to the fund’s economics has nothing to do with the portfolio. First Eagle Investment Management and its alternative credit arm waived all management, incentive and subadvisory fees from June 2024 through June 2025, then half the base management fee and all incentive fees through the end of 2025. No fee waivers were in place during either quarter of 2026.

The reversal runs through the income statement. Base management fees of $1.85 million and income-based incentive fees of $1.65 million accrued during the half and, unlike a year ago, stayed on the books. Total investment income fell 10.29 percent to $28.5 million, pressured by both the smaller portfolio and lower benchmark rates, and net investment income after excise tax came to $13.1 million against $17.4 million. Measured on average net assets, net investment income slid to an annualized 8.61 percent from 11.61 percent.

Distributions have not moved with earnings. The fund declared $1.26 per Class I share over the half against net investment income of $1.05 per share on the same basis, holding the monthly rate at $0.210 for Class I and $0.205 for Class D. The adviser continued to absorb operating costs, advancing $1.65 million under its expense support agreement during the half — all of it unreimbursed and eligible for recoupment through 2029.

Little pressure at the redemption window

For a perpetual-life vehicle, the fund is seeing almost no redemption demand. Its program permits quarterly tenders of up to 5 percent of shares outstanding; the only completed repurchase in the half covered 40,500 shares, or 0.33 percent of the count, at $23.95 per share. All requests were satisfied in full.

Governance and offering updates

The supplement also carries the governance changes disclosed earlier in August, when Nancy Hawthorne retired as trustee and chairperson and independent trustee Patrick Coyne took the chair. Separately, general counsel Laurence Paredes added the secretary role on August 12, filling the vacancy left by William Karim’s resignation. The board now stands at five trustees, four of them independent.

On the distribution side, the fund replaced its form of subscription agreement with an August 2026 version and rewrote its New Jersey suitability language, which now sets a floor of $100,000 in liquid net worth paired with $100,000 of annual gross income, or $350,000 of liquid net worth on its own, and caps a New Jersey accredited investor at 10 percent of liquid net worth in each category of non-traded direct investment program.