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Nuveen Churchill Direct Lending says credit performance remains healthy
The company reported interest coverage improving to 2.5x from 2.3x in the prior quarter, and NAV falling 1.8% to $17.19.
Nuveen Churchill Direct Lending Corp. said its Q2 2026 results reflected intentional balance sheet moves and transaction timing, with gross originations declining quarter over quarter as activity shifted into July, according to an earnings call summary published by Yahoo Finance.
Management attributed the quarter’s developments to a disconnect between negative media narratives about private credit and what it described as underlying strength in the company’s investment portfolio, while keeping its strategy focused on traditional middle market borrowers with EBITDA of $10 million to $100 million to avoid looser structures seen elsewhere.
The company said market volatility and geopolitical tensions have widened the gap between strategic acquirers and private equity sponsors, contributing to disciplined underwriting and tighter credit constraints, even as it flagged broader AI driven software disruption as an industry concern.
NCDL reported that interest coverage improved to 2.5x from 2.3x, and that NAV declined 1.8% to $17.19, while noting that transaction activity has returned to normalized levels after a rise in deal reviews during June and July.