Nuveen Churchill Direct Lending Corp. Reports Full-Year and Q4 2024 Financial Results
Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or the “Company”), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the “Adviser”), and by its sub-adviser, Churchill Asset Management LLC (“Churchill”), has released its financial results for both the fourth quarter and full year ending December 31, 2024. The Company experienced a strong quarter and year, demonstrating growth and financial stability.
Financial Highlights for Q4 2024
- Net Investment Income: $0.56 per share
- Net Realized and Unrealized Loss on Investments: ($0.02) per share
- Net Increase in Net Assets from Operations: $0.54 per share
- Net Asset Value (NAV) per Share: $18.18, up slightly from $18.15 as of September 30, 2024
- Distributions: Paid a regular quarterly distribution of $0.45 per share, along with the third of four special distributions of $0.10 per share on January 28, 2025, achieving a total annualized yield of 12.0% based on the Q4 NAV per share
- First Quarter 2025 Distribution Declared: $0.45 per share
Management Commentary
Ken Kencel, President and CEO of NCDL and Churchill, expressed satisfaction with the company’s performance in 2024, highlighting a significant increase in new investment origination. “This past year was an active year for originations, as our investment team deployed over $950 million in new investments, representing over a 40% increase year-over-year,” said Kencel. “Looking Lending ahead to 2025, we remain Lending confident in NCDL’s positioning as a leader in the core middle-market direct lending sector and are committed to maintaining attractive yields for our shareholders.”
Shai Vichness, CFO of NCDL and Churchill, emphasized the company’s strong financial position, reporting a return on equity exceeding 12% and total distributions of $2.10 per share, fully covered by net investment income. Additionally, the Lending company Lending issued $300 million in unsecured Lending notes in early 2025, enhancing its capital structure and liquidity. “With ample liquidity at year-end and no immediate debt maturities, we are well-positioned to capitalize on new investment opportunities,” said Vichness.
Portfolio Composition and Performance
As of December 31, 2024, NCDL’s investment portfolio had a fair value of $2.08 billion, spread across 210 portfolio companies in 27 industries. This reflects an increase from $2.05 billion as of September 30, 2024, across 202 portfolio companies in 26 industries.
- Portfolio Breakdown by Fair Value:
- 90.6% in first-lien debt
- 7.7% in subordinated debt investments
- 1.8% in equity investments
- Risk Ratings and Non-Accrual Loans:
- Weighted average internal risk rating of 4.1 (compared to 4.2 in the prior quarter)
- One portfolio company on non-accrual status, representing 0.4% of total investments at amortized cost (0.1% at fair value), a decline from three non-accrual companies in the previous quarter
Investment Activity
Full Year 2024:
- Funded $863.6 million in portfolio investments
- Received $430.0 million in principal repayments and sales
- Significant growth compared to $589.0 million in funded investments and $146.4 million in repayments in 2023
Fourth Quarter 2024:
- Funded $151.1 million in new investments
- Received $119.5 million in repayments and sales
- Lower than $203.2 million in investments and $155.6 million in repayments in Q3 2024
Financial Performance
Investment Income:
- Increased to $224.0 million for the full year 2024, up from $161.8 million in 2023
- Growth driven by higher deployed capital, despite a slight decline in weighted average yield due to tightening market spreads and falling SOFR rates
- Q4 2024 investment income rose to $57.1 million, compared to $48.9 million in Q4 2023
Net Expenses:
- Increased to $101.1 million for the year, up from $77.9 million in 2023, due to higher interest and debt financing costs, along with higher management fees
- Q4 2024 expenses rose to $26.4 million, compared to $23.1 million in Q4 2023
- Adviser continues to waive incentive fees on income and capital gains through Q1 2025
Realized and Unrealized Gains/Losses:
- Full year net realized loss of ($13.2) million, compared to a ($8.0) million loss in 2023, largely due to portfolio restructuring
- Unrealized gain of $7.3 million in 2024, significantly up from $0.7 million in 2023
- Q4 2024 realized loss of ($11.7) million, compared to ($1.5) million in Q4 2023
- Q4 2024 unrealized gain of $11.3 million, up from $4.5 million in Q4 2023
Liquidity and Capital Resources
As of December 31, 2024:
- Cash and Cash Equivalents: $43.3 million
- Total Debt Outstanding: $1.1 billion
- Available Borrowing Capacity: $206.3 million under existing credit facilities
- Debt-to-Equity Ratio: 1.15x, compared to 1.11x as of September 30, 2024
About Nuveen Churchill Direct Lending Corp.
Nuveen Churchill Direct Lending Corp. (“NCDL”) is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. NCDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. NCDL is externally managed by its investment adviser, Churchill DLC Advisor LLC, and by its sub-adviser, Churchill Asset Management LLC (“Churchill”).
Both the investment adviser and sub-adviser are affiliates and subsidiaries of Nuveen, LLC (“Nuveen”) the investment management division of Teachers Insurance and Annuity Association of America (“TIAA”) and one of the largest asset managers globally. Churchill is a leading capital provider for private equity-backed middle market companies and operates as the exclusive U.S. middle market direct lending and private capital business of Nuveen and TIAA. Churchill is a registered investment advisor and majority-owned, indirect subsidiary of TIAA.
