First Eagle Private Credit Fund: Annual Performance Summary

This summary distills the key information from the First Eagle Private Credit Fund's annual performance, offering a clear and concise overview. We provide essential insights into the fund's results, strategic focus, and the factors influencing its future, helping you better understand your investment.

Business Overview

The First Eagle Private Credit Fund specializes in direct lending to private, middle-market companies across various industries. Our core strategy involves originating and investing primarily in senior secured, floating-rate loans. This approach seeks to generate attractive risk-adjusted returns for investors through current income and capital preservation. The fund focuses on companies with strong cash flows and established market positions. We employ a rigorous credit underwriting process to identify opportunities and mitigate risk.

Financial Performance

For the fiscal year, the First Eagle Private Credit Fund achieved a net total return. This reflects consistent income generation from our loan portfolio.

Key financial highlights include:

• Revenue: Our primary revenue came from interest income generated by our diversified loan portfolio, supplemented by fee income.
• Net Income & Dividends: Net income for the period supported the fund's dividend distributions.
• Net Asset Value (NAV): The fund's NAV per share demonstrated stability in a dynamic market.
• Assets Under Management (AUM): We maintained a strong asset base, with AUM growing.
• Dividend Distributions: Throughout the year, the fund distributed dividends per share. This represented an annualized yield based on the year-end NAV, providing a steady income stream to our investors.

Risk Factors

While private credit offers compelling opportunities, investors must understand its inherent risks. These include:

• Credit Risk: The possibility that borrowers may default on their loan obligations.
• Liquidity Risk: Private loans are not publicly traded, making them difficult to sell quickly.

We actively manage these risks through rigorous due diligence, diversified portfolio construction, and ongoing monitoring of portfolio companies. Other typical risks include interest rate fluctuations, economic downturns, regulatory changes, and competition for investment opportunities. For a comprehensive discussion of all material risk factors, please refer to the full 10-K filing.

Management Discussion (MD&A Highlights)

Management highlighted the fund's solid performance for the fiscal year, attributing it to our disciplined investment strategy and the benefits of our diversified, floating-rate loan portfolio. The rise in the Secured Overnight Financing Rate (SOFR) positively impacted the fund's interest income, given the predominant floating-rate nature of our loan portfolio.

We emphasize our rigorous credit underwriting process and ongoing portfolio monitoring as critical factors in maintaining credit quality and mitigating potential defaults. While the private credit market remains robust, management acknowledges the need for careful navigation amidst economic uncertainties and inflationary pressures. The fund's strategy continues to focus on high-quality borrowers and strong credit discipline to deliver consistent performance and attractive income to investors.

Financial Health

The fund maintains a strong financial position, supported by its growing Assets Under Management (AUM) and stable Net Asset Value (NAV). We manage the fund's capital structure to optimize returns while maintaining appropriate leverage levels.

We primarily manage liquidity through cash flows generated from interest payments and principal repayments on our loan portfolio, alongside access to credit facilities when needed. The fund aims to maintain sufficient cash and available liquidity to meet its operational needs, investment commitments, and dividend distributions.

Future Outlook

Looking ahead, the private credit market remains robust, driven by middle-market companies' ongoing demand for flexible financing solutions. We anticipate continued opportunities for disciplined lending, though economic uncertainties and inflationary pressures will require careful navigation.

Our management team remains committed to a prudent investment approach, focusing on high-quality borrowers and maintaining strong credit discipline to deliver consistent performance. The fund is well-positioned to continue providing investors with an attractive income stream and long-term capital preservation in the evolving private credit landscape.

Competitive Position

The First Eagle Private Credit Fund operates in a highly competitive private credit market. Competition for attractive investment opportunities comes from a diverse group of participants, including:

• Business Development Companies (BDCs)
• Private debt funds
• Commercial banks
• Other financial institutions

Our competitive advantages typically stem from:

• An established sourcing network
• Rigorous credit underwriting capabilities
• Deep industry expertise
• The ability to offer flexible financing solutions tailored to middle-market companies

Our affiliation with First Eagle Investments also provides a strong brand and institutional support. We strive to differentiate the fund through our disciplined investment approach, focus on senior secured lending, and strong relationships with private equity sponsors and management teams.

Conclusion

The First Eagle Private Credit Fund concluded the fiscal year with solid performance, demonstrating the resilience of its investment strategy and the benefits of its diversified, floating-rate loan portfolio. With a clear focus on senior secured lending to middle-market companies and a vigilant approach to risk management, the fund is well-positioned to continue providing investors with an attractive income stream and long-term capital preservation in the evolving private credit landscape. We encourage all investors to review the full 10-K filing for complete details and risk disclosures.