KBRA Assigns Ratings to Fortress Private Lending Fund

KBRA assigns issuer and senior unsecured debt ratings of BBB to Fortress Private Lending Fund ("FPLF" or "the company"). The rating Outlook is Stable.

Key Credit Considerations

The ratings and Stable Outlook are supported by FPLF's affiliation with Fortress Investment Group LLC (“Fortress”), a global alternative asset manager with $54 billion in assets under management (AUM) as of 1Q26, including a $20 billion corporate credit platform. The credit platform benefits from SEC exemptive relief that permits co-investment with other Fortress funds, accounts, and clients managed by the external manager, FPLF Management LLC (“Adviser”), an indirect subsidiary of Fortress. The ratings are also supported by the company’s $1.7 billion investment portfolio to 87 portfolio companies within 20 sectors with a focus on middle market companies with 97.9% senior secured first lien debt investments as of 1Q26. The weighted average median portfolio company EBITDA was $83 million as of May 31, 2026. The company benefits from Fortress's long-standing relationships across its portfolio companies and the broader industry network. The largest sector exposures as of 1Q26 were Energy (13.6%), Health Care Equipment & Services (11.7%), and Consumer Services (11.6%). The energy portfolio is supported by a dedicated senior investment team with more than 20 years of average industry experience. The company’s portfolio companies are backed by high-quality private equity sponsors with significant dry powder, which can support portfolio companies in adverse markets.

While FPLF was recently formed, the company’s management team has a long track record of working within the credit markets for more than 25 years on average, and the two co-heads of the senior leadership who average 16 years at Fortress. As an unseasoned portfolio, the company had no portfolio companies on non-accrual status and 99.3% of the portfolio had an internal rating of 1 or 2, indicating the loans were performing at or above underwriting expectations as of 1Q26. Also, the Fortress credit platform has a strong direct lending history with a realized loss rate of only 0.02% and a 0.32% annualized default rate on an annualized cumulative basis since 2006. The company incorporates an active asset management philosophy which it attributes to its low default and high recovery rates in direct lending. The loans are underwritten to highly selective, mostly sponsored-backed portfolio companies with tight loan documentation and strong borrower fundamentals. As a perpetual-life non-traded BDC, the company raises equity monthly and intends to repurchase up to 5% of its outstanding shares each quarter subject to Board approval.

From inception through March 1, 2026, FPLF raised $1.06 billion, including $763 million of seed investor capital. As of 1Q26, gross leverage was modest at 0.70x, reflecting solid capital raising and a cautious approach to investment deployment. Asset coverage was strong at 242%, comfortably above the 150% regulatory minimum, providing a solid cushion against potential asset volatility. The company's funding sources are fully secured through three committed secured bank credit facilities. Management anticipates issuing senior unsecured debt to enhance financial flexibility and is targeting senior unsecured debt to represent approximately 40% to 50% of total debt outstanding over the medium term. Liquidity remains solid as of 1Q26, with $583.7 million of available committed secured bank lines and $14.9 million of unrestricted cash and cash equivalents, against no debt maturities within two years and $147.9 million of unfunded commitments, a portion of which is not expected to be drawn.

Counterbalancing these strengths are the illiquid investments as a BDC, its limited operating history partially offset by the long tenure of its senior management team, relatively high percentage of secured debt/total assets at 40.6% and retained earnings constraints as a regulated investment company (RIC). Furthermore, there is a potential for increased non-accrual investments with a more uncertain economic environment characterized by elevated base rates, inflationary pressures, and geopolitical uncertainty.

Headquartered in New York, NY, Fortress Private Lending Fund was formed in January 2024 as a Delaware statutory trust and commenced investing activities in June 2025. FPLF is a non-traded perpetual-life, non-diversified, closed-end managed business development company (“BDC”) operating under the Investment Company Act of 1940 and has elected to be treated as a regulated investment company (RIC) for tax purposes as of December 31, 2025. FPLF is externally managed by FPLF Management LLC, an indirect subsidiary of Fortress Investment Group LLC, a global alternative asset manager with $54 billion in assets under management (AUM) as of 1Q26 across 10 investing platforms, operating from 13 global offices. Fortress manages a diversified investment platform spanning corporate ($20 billion), asset-backed finance ($13 billion), and real estate ($20 billion).

Rating Sensitivities

A rating upgrade is not expected in the near to medium term. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy that materially weakens FPLF’s earnings performance, asset quality, and leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action.

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