Nuveen Churchill Private Capital Income Fund Adjusts Distribution

Floating rate debt remains central to the fund’s portfolio as it responds to Fed rate cuts and tighter spreads.

December 03, 2025

Nuveen Churchill Private Capital Income Fund Adjusts Distribution

Nuveen Churchill Private Capital Income Fund is realigning its strategy as market conditions evolve. On the back of Federal Reserve rate cuts and tighter spreads in the loan market, the Fund has adjusted its monthly distribution rate—bringing it in line with today’s interest rate environment while keeping yield levels competitive.

As of October 31, 2025, the Fund reported an aggregate net asset value of approximately $1.3 billion, with $2.0 billion in total investments and $748.5 million in secured borrowings. Monthly performance remained steady across share classes, with Class I shares delivering a 0.53% return, Class S at 0.50%, and Class D at 0.51%. These share classes were priced close to their net asset values—$24.38 for Class I and D, and $24.32 for Class S.

Looking at income, the Fund’s annualized distribution rate for Class I now sits at roughly 8.37%. With more than 95% of its debt holdings floating rate, this adjustment aims to maintain yield strength despite falling base rates. Compared to the Morningstar LSTA B Rated US Leveraged Loan Index, which yields 6.88%, the Fund’s Class I distribution offers a spread of approximately 150 basis points.

A Closer Look at the Portfolio

The Fund’s portfolio spans 305 companies, with an average investment size of 0.33% of the overall portfolio. First-lien loans account for the lion’s share at 92.99%, while the remainder is split between second-lien debt, mezzanine and structured credit, and equity stakes. Nearly 96% of the debt investments are floating rate, which supports the Fund’s goal of staying aligned with interest rate trends. On a fair value basis, the weighted average yield across debt and income-producing investments was 9.11%.

From a sector perspective, the portfolio is diversified. Business services lead at 17.76%, followed by healthcare and pharmaceuticals at 13.92%, and high tech at 8.63%. Capital equipment, construction, and finance also make up significant portions. The top ten holdings—each representing around 1% of total fair value—include companies like Thorne HealthTech, Insulation Technology Group, and VMG Health.

Adjusted Distributions and Underlying Metrics

The Fund’s November distributions reflect the new rate structure. All share classes declared a gross distribution of $0.170 per share, with Class S and D deducting servicing fees of $0.017 and $0.005, respectively. These changes were implemented in response to a market where both risk-free rates and spreads have come down. The new distribution rate helps position the Fund competitively against fixed income alternatives.

Portfolio companies reported a weighted average EBITDA of $87.9 million, excluding quoted assets. Including those assets, the figure increases to $206.8 million. These figures are based on the most recent company-level financials, weighted by each investment’s fair market value.

Oversight and Methodology

Valuations are handled by the Fund’s adviser, Churchill PCIF Advisor LLC, which serves as the designated valuation agent. Each figure is reviewed and approved by the Board to confirm that appropriate methods are being applied consistently. It’s worth noting that these updates may differ from what appears in the Fund’s year-end financial filings once finalized.

By adjusting its distribution rate, maintaining a diverse portfolio, and staying focused on floating rate exposure, Nuveen Churchill Private Capital Income Fund is positioning itself to stay responsive to changing market dynamics—while continuing to deliver yield across a wide range of sectors.