NCDL's Joint Venture Takes $148.9 Million of Loans

The Tip Desk · November 10, 2026 · 4 min read

Net investment income fell to $0.38 a share after two quarters at $0.41 as the BDC funded $134.8 million of investments and received $192.4 million of proceeds.

Nuveen Churchill Direct Lending Corp. (NCDL) reported net investment income of $0.38 a share for the third quarter ended September 30, 2026, down from $0.41 a share in each of the two prior quarters.

The specialty finance company, which invests primarily in senior secured loans to private equity-owned U.S. middle-market companies, said the sequential drop followed a two-quarter hold at $0.41. Investment income for the three months ended September 30, 2026 was $43.7 million, compared with $51.1 million a year earlier, as the portfolio at cost stood at $1.9 billion versus $2.0 billion a year earlier and the weighted average yield on debt and income-producing investments fell to 9.7% from 9.9%. The company said the year-over-year decline was primarily due to the net decline in base interest rates, with spreads on newly originated investments remaining relatively stable.

Net expenses decreased to $24.9 million from $29.7 million a year earlier, primarily due to lower interest and debt financing expenses from a lower average interest rate and lower average daily borrowings.

The quarter’s defining capital move was the joint venture. NCDL Senior Loan Fund I LLC was formed on July 7, 2026. For the three months ended September 30, the company funded $134.8 million of portfolio investments, of which $40.7 million related to fundings to the Joint Venture, and received $192.4 million of proceeds from principal repayments and sales, of which $148.9 million related to sales of investments to the Joint Venture. Those figures compared with $24.8 million funded and $67.5 million of proceeds in the three months ended June 30, 2026.

As of September 30, approximately 43.9% of the Joint Venture’s total capital commitments were called. The JV’s investment portfolio had an aggregate fair value of $147.5 million across 95 portfolio companies in 22 industries, consisting of 100% first-lien debt investments, with a weighted average yield of 9.2% at cost. Chief Financial Officer Shai Vichness said the company expects to continue to ramp the JV, which it believes will be accretive to NCDL’s earnings profile and provide enhanced operating flexibility.

The company also recorded a net realized loss on investments of $(3.4) million, driven primarily by the amendment and restructuring of two underperforming debt positions, compared with a net realized gain of $1.5 million a year earlier. The net change in unrealized gain was $0.4 million, reflecting the reversal of unrealized losses on certain debt positions amended and restructured, compared with a net change in unrealized loss of $(4.2) million a year earlier. Net realized and unrealized loss on investments was $(0.06) a share. Net increase in net assets resulting from operations was $0.32 a share.

Portfolio fair value was $1.9 billion across 258 companies as of September 30, 2026, versus $1.9 billion across 244 companies as of June 30. Mix shifted to 87.1% first-lien debt, 7.6% subordinated debt, 3.1% equity and 2.2% Joint Venture. The weighted average internal risk rating at fair value moved to 4.4 from 4.3 as of June 30. Non-accrual investments were in nine portfolio companies representing 1.5% of total investments at fair value, or 2.6% at cost.

NAV per share was $17.13 as of September 30, 2026, compared with $17.19 as of June 30. Cash and cash equivalents were $39.1 million and aggregate debt outstanding was $1.0 billion. Debt to equity was 1.23x, or 1.17x net of cash, compared with 1.29x, or 1.23x net of cash, as of June 30. Subject to borrowing base and other conditions, the company had approximately $216.0 million available for additional borrowings under its revolving credit facility.

The board declared a fourth-quarter distribution of $0.38 a share, consisting of a regular distribution of $0.36 a share and a supplemental distribution of $0.02 a share, payable on or around January 28, 2027 to shareholders of record as of December 31, 2026. Subsequent to quarter end, BofA Securities, Inc., as agent, repurchased 278,294 shares for approximately $3.0 million from October 1 through October 30, 2026 under the company’s 10b5-1 plan.