KBRA Affirms Ratings for Bain Capital Private Credit
17 Nov 2025 | New York
KBRA affirms the issuer and senior unsecured debt ratings of BBB for Bain Capital Private Credit ("BCPC" or "the company"). The rating Outlook is Stable.
Key Credit Considerations
The ratings and Stable Outlook are supported by BCPC’s ties to the ~$60 billion Bain Capital Credit ("BCC") credit platform, including ~$20 billion dedicated to private credit (June 2025), along with SEC exemptive relief to co-invest in other funds managed by its adviser, BCPC Advisors, LP ("Adviser"), and its affiliates. BCC's solid management team has a long track record working within the private credit markets dating back to the mid-1990s, with BCC’s platform providing a 27-year history of strong credit performance through economic cycles. Also supporting the ratings is BCPC’s well-diversified $1.4 billion investment portfolio comprised largely of senior secured first lien loans (88%) to 141 portfolio companies across 25 sectors, most in the core middle market with median EBITDA of $49 million as of September 30, 2025. The top three portfolio sectors are Healthcare & Pharmaceuticals (14.9%), Business Services (11.7%), and High Tech Industries (11.1%). As of September 30, 2025, the company had one portfolio company on non-accrual representing 1.0% and 0.7% of the investment portfolio at cost and fair value, respectively, with 99.3% of the portfolio internally rated as performing at or above underwriting expectations.
The company has three secured bank facilities, including a revolving credit facility and two secured SPV asset facilities. Liquidity is solid with $355.3 million in available credit lines and $41.5 million in cash (including foreign cash) set against $369.4 million of unfunded commitments and no near-term debt maturities. On August 14, 2025, BCPC authorized the issue and sale of $275 million of its inaugural senior unsecured notes, with the issuance to occur November 24, 2025. The issuance will increase pro forma unsecured debt to total debt to a solid ~41%, providing improved financial flexibility and lower asset encumbrance for the benefit of unsecured noteholders. As a perpetual-life BDC, the company raises capital monthly and offers share tenders quarterly. Since inception on December 21, 2021, through October 1, 2025, the company raised $845.5 million in equity with just $3.2 million in redemptions. As of September 30, 2025, the company had 5.7% of its portfolio in more liquid BSLs to further support liquidity but may increase this allocation as needed.
As of September 30, 2025, the company’s gross and net (of cash) leverage were 0.88x and 0.82x, respectively, which is within the company's target net leverage range of 0.75x-1.25x. Asset coverage is solid at 213.6% when considering its 150% regulatory asset coverage, providing the company a 42% cushion and the ability to withstand additional market volatility in a less favorable economic environment.
Counterbalancing the strengths are the potential risks related to BCPC’s illiquid assets, a less seasoned investment portfolio due to its short operating history and relatively high investment portfolio growth, retained earnings constraints as a regulated investment company (RIC), and the uncertain economic environment with high base rates, inflation, and geopolitical risks.
BCPC is an externally managed, non-diversified investment management company that elected to be treated as a Business Development Company (BDC) under the 1940 Act and as a RIC, which, among other things, must distribute to its shareholders at least 90% of the company’s investment taxable income. The company was formed as a Delaware statutory trust in December 2021 and commenced operations November 28, 2023. The company is managed by BCPC Advisors, LP, a subsidiary of Bain Capital Credit, which is a wholly owned subsidiary of Bain Capital, LP that was founded in 1984 and had approximately $205 billion in AUM as of June 30, 2025.
Rating Sensitivities
Given the Stable Outlook, a rating upgrade is not expected in the medium term. Rating pressure is possible if a prolonged downturn in the U.S. economy has a material impact on earnings performance, including increased non-accruals and a significant rise in leverage. An increased focus on riskier investments or a change in the current management structure and/or a change in strategy and risk management that negatively impact credit metrics could also pressure ratings.
To access ratings and relevant documents, click here.