Press Release|Funds
View PDF

KBRA Affirms All Ratings for Binney Park Capital, LLC

19 Dec 2025   |   New York

Contacts

KBRA affirms its outstanding ratings on the Class A Notes, the Class B Notes, and the Class C Notes (together, the “Rated Notes”) issued by Binney Park Capital, LLC.

The rating action reflects the transaction performance to date, with the portfolio NAV increasing by $4.3 million since last surveillance and a portfolio MOIC of 1.47x on a weighted average basis. As of December 2025, there have been both higher contributions and distributions compared to the assumptions at issuance, with distributions increasing $91.7 million, and capital called increasing by $52.0 million. There has been no change in the allocations to the underlying LP interests comprising the portfolio and the LTV on the Rated Notes remains relatively in line with issuance.

Key Credit Considerations

  • Asset Coverage: At Issuance, Asset Coverage ratios for the Class A Notes, the Class B Notes, and the Class C Notes were 400% (25% LTV), 182% (55% LTV), and 143% (70% LTV), respectively. As of December 2025, Asset Coverage has slightly decreased for the Rated Notes from last surveillance (as shown in the Liability Structure), primarily driven by a slight decline of NAV and decline in the Payment and Draw Account balances. The Subordinated Notes were fully funded at closing with the Rated Notes funding on a pro rata basis as subsequent capital calls were issued by the general partners managing the underlying collateral. As of December 2025, the Rated Notes are 79.6% drawn compared to 78.4% drawn at last surveillance.
  • Transaction Structure and Key Protective Features:
    • Interest Reserve Account: Approximately $30 million of the Transaction proceeds were deposited into a Reserve Account at closing, equal to approximately 6 months of interest coverage on the Rated Notes. Proceeds in the Reserve Account are invested in certain eligible investments specified in the transaction documents. The account can be drawn to cover distribution shortfalls in meeting ongoing expenses and accrued and unpaid interest. To the extent funds from the Reserve Account are used for these purposes, any remaining proceeds following the payment of the Rated Notes interest must be used to replenish the reserve balance to the $30 million level. The Interest Reserve was drawn on two payment dates in 2025, and as of December 2025, the Interest Reserve Account balance was $53,000. This is below the client’s forecast at issuance, which projected a balance of approximately $30 million at this point in time. The variance is primarily attributable to faster capital call pacing, which resulted in higher-than-expected draws on the Rated Notes and, consequently, higher interest obligations. The Payment Account currently holds around $7 million, which will be applied through the Priority of Payments on the next Payment Date.
    • LTV Tests: The transaction is governed by various Loan to Value (LTV) tests that accelerate the repayment of the tested tranche of Rated Notes when breached. LTV is defined as the Funded and Unfunded Amounts of the relevant class of Rated Notes and respective priority classes divided by the sum of the Fair Market Value (FMV) of the assets, the Unfunded Amounts of the Rated Notes, and the funds in the Cash Collateral Account, Collection Account, Payment Account, Drawn Account and Collateral Account. Each class of Rated Notes has an LTV Trigger set 5% above the share of the Issuer’s capital structure that the Rate Note class represents, resulting in LTV triggers of 30%, 60% and 75% for the Class A Notes, the Class B Notes, and the Class C Notes, respectively. If any of these triggers are breached, the most senior outstanding class of Rated Notes is paid down until the LTV test is back in compliance. Fulfillment of the LTV test is structurally senior in repayment to interest on the next class of Rated Notes. As a result, meaningful deterioration in value coupled with insufficient asset realizations could result in deferrals of interest on junior classes of Rated Notes. The LTV tests have been in compliance since Issuance.
    • Amortization Profile: The Rated Notes benefit from a sequential paydown structure in effect from issuance. There can be no distributions to the holders of the Subordinated Notes until all classes of Rated Notes have been repaid in full. In KBRA’s view, this repayment profile is protective of the Rated Notes and may partially mitigate potential volatility and uncertain performance of the underlying assets. To date, there has been no amortization of the Rated Notes.
    • Recallable Capital Provisions: Any distributions that are deemed to be recallable are held in the Draw Account and are used to fund capital calls prior to using the Undrawn Amounts on the Rated Notes. This mechanism lowers the quantity of distributions that flows through the Priority of Payments of the transaction, but in turn may require less funding of the Rated Notes. Once the distribution is no longer deemed recallable by the underling fund, any remaining funds will flow through the Priority of Payments.
  • Exposure to Concentrated Portfolio: Noteholders are exposed to collateral that is moderately diversified by general partner (GP) exposure, vintage, and asset concentration but remains relatively more concentrated compared to similar transactions. Further, the transaction was concentrated heavily on growth equity and venture focused investment strategies which KBRA recognizes as being a more volatile asset when compared to private credit or buyout focused strategies. As of December 2025, the portfolio consisted of 16 LP interests managed by 14 unique GPs across four investment strategies and eight annual vintages, unchanged since Issuance. Since Issuance, the concentration of the top 10 companies has increased.
  • Vulnerability to Uncertain Cash Flow: The payment of interest and principal to Noteholders depends heavily on realizations from private assets, which, as alternative investments, do not generate cashflow on a fixed schedule nor in predetermined amounts. This risk is, however, partially mitigated by the Interest Reserve Account and vintage diversification of the underlying collateral. An analysis of the realization profile to date as compared to expectations is shown in the Pacing of Capital Calls and Distributions section.
  • Funding Profile & Associated Counterparty Risk: The Rated Notes are held by SBLIC, and the Subordinated Notes are held by Brook Creek Portfolio Trust, LLC, an indirectly wholly owned subsidiary of Sherwood Park, Incorporated, which itself is a subsidiary of Security Benefit Corporation. In KBRA’s view, the credit quality of SBLIC and Brook Creek are sufficient relative to the funding obligations and operational responsibilities of these investors going forward and in line with the ratings assigned. The Subordinated Notes were fully funded on day one and the Rated Notes were 73.2% drawn on day one with Undrawn Amounts to match the unfunded amounts on the underlying LP Interest. As of December 2025, the Rated Notes were 79.6% drawn. As such, the ability to meet capital calls on a look forward basis is primarily driven by the credit quality of the Noteholders. Should there be a transfer of the Rated Notes, the new Noteholder must have a rating that is either equivalent to or better than that of the initial note purchaser, Security Benefit Life Insurance Company. The Rated Notes are also subject to draw conditions based on HHI and LTV later in the transaction life. In scenarios whereby the Rated Notes are prohibited from being drawn due to this provision, the equity may have to overfund to meet capital calls or recallable capital calls and thus there is also a reliance on the credit quality of the Subordinated Note Holders to fund those calls. The details of the provision are outlined in the Delayed Draw Provisions section.
  • Quality of Underlying Assets: The collateral consists of passive, illiquid investments in private capital funds with substantial exposure to venture and growth strategies which, in KBRA’s view, are more volatile and carry greater performance uncertainty when compared to other private capital sectors.
  • Permitted Dispositions: The Servicer may sell collateral up to an aggregate value no greater than 25% of the Adjusted NAV at closing. Any disposition must be made to an unaffiliated third-party purchaser for no less than fair market value or, if sold to the Servicer, an affiliate thereof, or any other account over which the Servicer has discretionary voting authority, for no less than the greater of Adjusted NAV and fair market value. All proceeds from such dispositions will be deposited into the Payment Account and distributed pursuant to the Priority of Payments. A Rating Agency Notification is required prior to any disposition, and none have occurred since Issuance.

Rating Sensitivities

  • Underperformance of Fund Collateral: Deterioration in portfolio valuation or a trend of collateral cash flows that are notably lower than current forecasted performance.
  • Counterparty Exposure: A change to the credit quality of key counterparties including but not limited to the Rated Notes Investors, Servicer or Subordinated Noteholders.
  • Funding of Capital Calls: Any delays or failures to meet capital calls on the collateral driven by exhaustion of available liquidity and / or a failure to fund from the Rated or Subordinated Noteholders.
  • Exposure to Concentrated Collateral Pool: Exposure to a more concentrated collateral pool, either through a reduction in asset value or drawing of the Rated Notes later into the transaction life, without a commensurate and significant deleveraging of the Rated Notes.
  • Asset Coverage: Significant de-leveraging of the Rated Notes that decreases LTV coupled with stable or better than expected performance.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

The Manager is, or has a relationship with, one or more of KBRA Europe/KBRA UK shareholders that is required to be disclosed under applicable credit rating agency regulation in the EU and/or the UK. Please review KBRA’s shareholder disclosures, which are updated periodically.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1012671