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Fidelity Private Credit Fund Breaks Escrow

Fidelity Private Credit Fund, a non-traded business development company, broke escrow with more than $102 million in net equity proceeds.

As The DI Wire previously reported, Fidelity Investments expanded its alternative investment’s product lineup with the launch of Fidelity Private Credit Fund in January. According to Fidelity, the BDC’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The fund plans to pursue these objectives primarily through directly originated loans to private companies as well as other select private credit investments.

The company previously disclosed that they registered with the Securities and Exchange Commission a continuous public offering of up to $1 billion in common shares of beneficial interest.

The BDC says the terms of the offering required the fund to deposit all subscription proceeds in escrow with UMB Bank N.A., until the fund received subscriptions aggregating at least $100 million in common shares of the fund. This included shares purchased by Fidelity Diversifying Solutions LLC, its affiliates and the fund’s trustees and officers, in any combination of share classes.

Last week the fund reached the minimum offering requirement, having sold more than four million shares of Class I shares. The fund has yet to issue any of its Class S or Class D shares.

UMB Bank released net proceeds of approximately $102 million to the fund as payment for such shares. Fidelity Investments, its employees, and the fund’s trustees and executive officers, owned approximately $57.9 million shares outstanding as of March 13, 2023.

Privately held for over 75 years, Fidelity Investments has assets under administration of $9.6 trillion, including discretionary assets of $3.6 trillion as of Sept. 30, 2022.

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