Fidelity® Launches First Business Development Company, Fidelity Private Credit Fund

Boston–(business telegram)–loyalty investment Business Development Company (BDC) today announced the expansion of its rapidly growing alternative investment (ALT) product lineup with the launch of Fidelity Private Credit Fund. The new BDCs are available today to individual investors* and are distributed through financial advisors and intermediaries in most states**, and we continue to seek opportunities to expand our offering.

The Fidelity Private Credit Fund will be managed by Fidelity Diversifying Solutions LLC***, an investment advisor that was established to develop Fidelity’s alternative investment capabilities and support the development of alternative products and solutions.

With the launch of the Fidelity Private Credit Fund, Fidelity leverages the depth and breadth of its credit-focused resources to offer our clients an income-oriented strategy in the private credit markets. Head of Direct Lending at Fidelity Investments. “We continue to see significant growth in the private credit market and Fidelity’s Direct Lending team aims to use our extensive network to access high credit quality investment opportunities.”

Fidelity set up its direct lending business in 2021 and continues to grow the team, including portfolio managers David Gatto, Therese Ickes and Jeffrey Scott. The portfolio management team, with an average of more than 20 years of middle market lending experience, has sourced, underwritten or managed diverse credit and lending teams in a variety of market environments. The team is backed by Fidelity’s more than 50 years in the credit markets and more than $620 billionI In credit investments under management.

“Our portfolio management team has been able to leverage the resources of our globally integrated investment organization and the breadth of Fidelity’s retail and institutional distribution businesses, while we continue to expand and strengthen our direct loan investment capabilities and team,” Gato continued.

The investment objective of Fidelity Private Credit Fund is to generate current income and, to a lesser extent, long-term capital appreciation. The Fund intends to further these objectives primarily through directly originated loans to private companies as well as other select private credit investments. The Fidelity Portfolio Management team seeks to employ a rigorous and consistent due diligence process when assessing each individual issuer. The team seeks to evaluate each issuer’s ownership and management team, business model, competitive differentiation, historical and projected financial performance, cost structure, key customers and key suppliers, and position within its industry.

Fidelity Private Credit Fund will be available for intermediary clients through Fidelity Institutional’s alternative investment platform +SUBSCRIBE at launch and through iCapital shortly thereafter for seamless digital transactions. Funds are also expected to become available through CAIS in the coming months. These platforms are dedicated to education, strategies and resources around alternative investment funds and products. Financial advisors and investors interested in learning more may do so at fidcredit.com or review the prospectus at http://fiiscontent.fmr.com/9907037.PDF.

Fidelity Alternative Investments

Fidelity offers a range of capabilities in the alternative space to its institutional, intermediary and retail clients.

  • In 2022, Fidelity launched three liquid alt mutual funds, the Fidelity Hedged Equity Fund (FEQHX), the Fidelity Macro Opportunities Fund (FAQAX) and the Fidelity Risk Parity Fund (FAPSX), through Fidelity’s online brokerage for individual investors and advisors. Available for commission-free purchases from. Forum.

  • Retail investors also have access to alt mutual funds registered under the Investment Companies Act of 1940 (the ’40 Act) through Fidelity.com. In addition, Fidelity’s discretionary managed account offering, Fidelity Portfolio Advisory Service (PAS), may include alternative investments in its portfolio when Fidelity believes it is beneficial to the portfolio’s asset allocation strategy and investment mandate.

  • Fidelity provides qualified investors with access to investment opportunities in areas such as distressed loans, real estate loans, private real estate, private equity and bitcoin.

  • Fidelity Institutional’s alternative investment platform, launched in October 2013 for intermediary clients, provides research, education and third-party due diligence, as well as a range of alternative investment products including hedge funds, real estate investment trusts (REITs), and real estate investment trusts (REITs). Provides access to a wide range. , private equity funds, and ’40 Act mutual funds.

  • Fidelity is a leading provider of custodial services for our customers with over 5,000 alternative products.

** As of January 6, 2023, Fidelity Private Credit Fund BDCs are available in 43 states and territories except Alabama, Arizona, Arkansas, Maryland, Michigan, Minnesota, Missouri, New Jersey, Tennessee, Vermont and Washington.

About Fidelity Investments

Fidelity’s mission is to inspire a better future and deliver better results for the customers and businesses we serve. With assets under administration of $9.6 trillion, including discretionary assets of $3.6 trillion, as of September 30, 2022, we remain focused on meeting the unique needs of a diverse set of clients. Privately held for more than 75 years, Fidelity employs more than 60,000 associates focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

* Investors with gross annual income of $70,000+ and net worth of $70,000+, or investors with net worth of $250,000 are eligible to invest. Individual Broker Dealers may impose additional eligibility requirements.

*** Fidelity Diversifying Solutions LLC (“FDS”) is registered with the US Securities and Exchange Commission (“SEC”) as an investment advisor and also with the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator is registered. “CPO”) and Commodity Trading Advisors (“CTAs”), and are members of the National Futures Association (“NFA”).

This sales and advertising media is neither an offer to sell nor a solicitation of an offer to buy securities. An offer is made by prospectus only. This literature should be viewed in conjunction with the prospectus in order to fully understand all the implications and risks of the securities offering related to the prospectus. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except in a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney-General of the State of New York nor any other state securities regulator has approved or disapproved of our securities or determined whether the prospectus is true or complete. Any representation to the contrary is a criminal offence.

This document does not constitute an offer or solicitation to buy or sell any securities or services, and is not investment advice. Fidelity does not provide legal or tax advice and we encourage you to consult with your own attorney, accountant or other advisor before investing.

The information provided in this document is for informational and educational purposes only. To the extent any investment information in this material is considered a recommendation, it is not intended to be unbiased investment advice or advice in an independent capacity and is not intended to be used as the primary basis for your or your client’s investment decisions. does not intend to. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in them and receive compensation directly or indirectly in connection with their management, distribution and/or servicing. Products or services, including Fidelity Funds, certain third-party funds and products, and certain investment services.

risk

Investors should review the offering documents, including a description of the risk factors contained in the Fund’s prospectus (the “Prospectus”), before deciding to invest in the securities described herein. The prospectus will include a more complete description of the risks described below, as well as additional risks related to, among other things, conflicts of interest and regulatory and tax matters. Any decision to invest in the securities described herein should be made after reviewing such prospectus, making such investigations as the investor may consider necessary and consulting with the investor’s own legal, accounting and tax advisors to make an independent determination of suitability. consult with. Fund investment.

  • We have no prior operating history and there is no assurance that we will achieve our investment objectives.

  • An investment in our common shares may not be suitable for all investors and is not designed to be a complete investment program.

  • This is a “blind pool” offering and thus you will not have the opportunity to evaluate our investments before making them.

  • You should not expect to be able to sell your shares regardless of our performance.

  • You should consider that you may not have access to the money you have invested for an extended period of time.

  • We do not intend to list our shares on any securities exchange, and we do not expect a secondary market to develop in our shares.

  • Since you may be unable to sell your shares, you will be unable to hedge your risk in any fall in the market.

  • We intend to implement a share repurchase program, but only a limited number of shares will be eligible for repurchase and the repurchase will be subject to available liquidity and other important restrictions.

  • If you need access to the money you have invested, investing in our ordinary shares is not suitable for you.

  • We cannot guarantee that we will make the distribution, and if we do, we may finance such distribution from sources other than cash flow from operations, including, without limitation, asset sales. , borrowing or return of capital, and we have no limit on the amount we can make payments from such sources.

  • The distribution may be funded in significant part directly or indirectly by temporary discounts or expense reimbursements incurred by the advisor or its affiliates, which may be subject to reimbursement to the advisor or its affiliates. Repayment of any amounts owed to the Advisor or its affiliates will reduce future distributions to which you would otherwise be entitled.

  • We expect to use leverage, which will increase the potential for loss on the amounts we invest.

  • We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act and we cannot be certain that the reduced disclosure requirements applicable to emerging growth companies will make our common shares less attractive to investors. Make it less attractive.

  • We seek to invest primarily in securities which are rated below investment grade by the rating agencies

Fidelity, Fidelity Investments and the Pyramid logo are registered service marks of FMR LLC. The trademarks of third parties appearing herein are the property of their respective owners.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC, 245 Summer Street, Boston, MA 02110

Fidelity Distributors Company LLC, 500 Salem Street, Smithfield, RI 02917

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© 2023 FMR LLC. All rights reserved.

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I By June 30, 2022

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