Nuveen Churchill Private Capital Income Fund Completes Acquisition of NCPCF
Nuveen Churchill Private Capital Income Fund, or PCAP, completed its previously announced acquisition of substantially all of the assets of Nuveen Churchill Private Credit Fund, or NCPCF, last week.
The pair of non-traded business development companies had previously, as reported by The DI Wire, entered into a purchase and sale agreement unanimously approved by both BDCs’ boards of trustees. The transaction was also approved by NCPCF’s shareholders at a virtual meeting held on Dec. 5, 2024.
PCAP delivered to NCPCF an aggregate purchase price of approximately $220.98 million, equal to the net asset value of NCPCF as of Dec. 9, at which time NCPCF sold, transferred, assigned, and conveyed to PCAP its assets. At the time, PCAP also assumed all of NCPCF’s liabilities, including $281.5 million of indebtedness outstanding under NCPCF’s credit facility.
PCAP funded the purchase price with nearly $217.6 million of borrowings under its credit facility with Bank of America N.A. Of the aggregate purchase price, approximately $3.41 million was settled on a net basis.
PCAP is a specialty finance company focused primarily on investing in U.S. middle-market companies with $10 million to $100 million in earnings before interest, taxes depreciation and amortization.
As previously reported, Kenneth J. Kencel, chief executive officer of PCAP, said that while the fund’s investment strategy will remain unchanged, the acquisition will result in increased size, scale and portfolio diversification in order to continue delivering strong growth and long-term value for shareholders. The larger scale of PCAP may improve its ability to make additional investments and gain indirect exposure to new asset classes, said the BDC, while also potentially creating synergies between existing and potential commercial finance investments, providing greater diversification of niche lending strategies.
The company also said that the transaction increases PCAP’s access to debt and equity capital and creates organizational efficiencies.
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