Lafayette Square USA, Inc.
DE
Private creditNon-traded BDC1099
Compared against Private credit non-traded bdcs.
1Y return
+9.8%
73th pctile · ahead of most peersas of 2026-03-25
Since inception
not stated in filings
Distribution rate
9.4%
Net assets
$411.3M
as of 2026-03-25
Net expenses
13.1%
90th pctile · pricier than median
Repurchase
not stated yet
Level 3
100%
55th pctile · more model-priced than peersLast offer
no offer yet
What owning this fund costs per year
Hold period3 yrs
Net expense ratio (includes the 0.75% management fee)13.10%
Minus interest on borrowings, the cost of portfolio leverage7.79%
Minus incentive fees accrued this period, which vary with returns1.67%
Ongoing cost, determined from the filings3.60%
Ongoing cost is about 3.6% a year. The 13.1% reported expense ratio is dominated by 7.8% of interest on borrowings and 1.7% of performance-based incentive fees, neither of which is a fixed cost of ownership. What remains is a 1.8% management fee charged on gross assets plus about 1.9% of administration, professional, director, tax and other operating costs. One-off subsidiary formation costs added
Sales loadnone
Total drag per year3.60%
This is the cost for common Stock (single class).
Based on fiscal year2025 (year ended 12/31/2025) annual ratios as stated in the 2025 Form 10-K; not re-annualized. Interest 7.79% and incentive 1.67% derived f.
This fund's cost was determined by reading its filings in full, because the figures in its expense table do not decompose cleanly.
Drag is the fixed cost of ownership: paid regardless of performance. The incentive terms (Income-based fee: 15% of pre-incentive fee net investment income above a 1.25% quarterly hurdle (5% annualized), with 100% catch-up between 1.25% and 1.47%; plus a 15% capital gains fee. Both rise to 17.5% after a Liquidity Event.) apply only to returns earned. How this is calculated
Against Private credit non-traded bdcs
Total drag
88th pctile · pricier than most
1Y return
73th pctile · ahead of most
Gray mark is the peer median. The drag comparison uses the same 3-year hold for every fund.
Every figure below was read from this fund's filing. Hover any number to see the sentence it came from. Figures cover FY2025 (year ended 12/31/2025) annual ratios as stated in the 2025 Form 10-K; not re-annualized. Interest 7.79% and incentive 1.67% derived from FY2025 dollars ($29,229k and $6,259k) divided by the same average net assets implied by the filing's own 13.10% expense ratio ($375.0m). Cross-checked against the six months ended 6/30/2026 interim report (12.39% annualized expense ratio), which implies the same 3.6% ongoing cost. Organizational costs of 0.04% excluded as nonrecurring..
Open the filing on sec.gov (0001628280-26-020991)Size and leverage
Net assets$411.3M?
Borrowings$572.0M?
Leveragedebt to equity1.39x?
Asset coverage220.80%?
Investments held54?
Started2021-02-19?
What the manager charges
Management feeof gross assets0.75%?
The same fee against your equitybecause it is charged on borrowed assets too1.79%
Performance feeIncome-Based Fee: 15% of pre-incentive fee net investment income above a 1.25% quarterly hurdle (5.0% annualized), with a 100% catch-up between 1.25% and 1.47% quarterly; rises to 17.5% after a Liquidity Event. Capital Gains Fee: 15% of cumulative realized capital gains net of realized losses and unrealized depreciation, less previously paid capital gains fees (17.5% after a Liquidity Event).?
Hurdle5.00%?
Adviser is subsidising costsNo?
Getting your money back
Repurchase offersnone - no share repurchase program; Board may conduct repurchase offers but the Company does not currently intend to?
Where distributions come from
Distribution rate9.40%?
Paid out of income100.00%?
Return of your own capital0.00%?
What it holds
Floating rate85.40%?
Not paying interestloans on non-accrual0.90%?
Priced by the managerno market price available100.00%?
MostlyProfessional Services (10.4% of investments at fair value)?
Who is involved
AdviserLS BDC Adviser, LLC?
AuditorErnst & Young LLP?
Valuedquarterly?
Independent valuation agentYes?
Deals with affiliatesYes?
Also worth knowing
- 160 Driving Academy (Rock Gate Capital) is the largest borrower at $45.1m fair value versus $52.1m amortized cost and is the sole investment rated 4 on the 1-5 internal risk scale (5.7% of investments); by 6/30/2026 it had grown to $67.7m cost / $58.2m fair value.
- One investment was partially on non-accrual at 12/31/2025 (0.9% of investments at fair value); by 6/30/2026 two investments were on non-accrual plus one partially, totaling 2.5% of investments at fair value.
- The regular quarterly distribution was cut from $0.35 per share (all four quarters of 2025) to $0.28 regular plus $0.05 supplemental declared March 24, 2026.
- Issued $65.0m of 7.00% senior unsecured notes in August 2025 maturing 2030; ING revolving facility upsized to $300m with a sustainability-linked pricing mechanism tied to the Goal2030 targets.
- Unfunded commitments versus cash on hand: 156,710 USD thousands (vs $199,187 thousand cash) (Unfunded revolvers, delayed-draw loans and equity commitments equal 38% of net assets and must be funded from cash, the credit facility or new capital calls; the fund's cash balance covered them at year end but not after the facility was fully drawn in 2026.)
- SBA debenture capacity and cost: 230,000 drawn of 290,000 committed (350,000 maximum) USD thousands (Ten-year fixed-rate SBA leverage at 4.38%-5.04% is materially cheaper and longer-dated than the fund's revolver and is excluded from the 150% asset coverage test under SEC exemptive relief, which is central to the fund's net interest margin.)
- Credit facility fully drawn by mid-2026: 299,982 outstanding of 300,000 available USD thousands (At June 30, 2026 the ING revolver had essentially no remaining availability, leaving cash and capital calls as the only sources to fund $142.9 million of unfunded commitments.)
- NAV per share decline and rising non-accruals in 2026: 14.49 at 6/30/2026 versus 14.81 at 12/31/2025 USD per share (Net asset value fell 2.2% in the first half of 2026 as unrealized losses of $10.8 million exceeded net investment income growth, and non-accruals rose from 0.9% to 2.5% of investments at fair value.)
- Sustainability-linked pricing outcome on credit facility: 8 basis point margin reduction effective May 6, 2026 basis points (The revolver's interest margin moves with performance against the fund's Goal2030 targets; the fund forfeited a step-down in 2025 (adding $55,565 of interest) and earned an 8bp reduction in 2026, a small but real swing in funding cost.)
- PIK income as share of total investment income: 5.2% PIK interest plus 3.1% PIK dividends percent of total investment income (six months ended 6/30/2026) (Non-cash income rose sharply from 1.7% a year earlier; PIK accruals feed the incentive fee base and RIC distribution requirement before any cash is received.)
- Capital commitments fully called: 483,700 closed commitments, 0 uncalled USD thousands (All investor capital had been drawn by June 30, 2026, so further portfolio growth depends on new commitments or additional leverage rather than existing dry powder.)
- Investment backlog and pipeline: 159.5 backlog / 520.8 pipeline USD millions (as of July 29, 2026) (Indicates the scale of prospective deployment relative to a $1.16 billion balance sheet and the capital the fund would need to raise to fund it.)
Fees
Liquidity terms
Valuation
Fair value determined byunchanged, 4 filingsAdviser as valuation designee
Independent valuation firmvaries across filingsEngaged, name in filing
Valuation frequencyquarterly
Structure
Every value links to the SEC filing it came from. A chip marks a change against the prior filing of the same type; hover a green-dotted value for what changed and why, as stated in the filing.
What the fund reported over time, each point sourced to its filing. Series deepen as older shareholder reports are read.
2024-12-312026-03-25
Each point is a value from one SEC filing, dated as reported. Hover a point for its value.
Net assets$411.3M
Total annual expenses, net of waiver13.1%
Total annual expenses, gross13.1%
Distribution rateraised from 8.9% · Mar 20269.4%
Total return, 1 yearraised from 1.19% · Jun 20262.27%
Level 3 inputs100%
No repurchase offer filings on record yet.
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Data from public SEC filings. Argus is not a broker-dealer. Nothing here is an offer or investment advice. Every value shows the filing it came from and the date of that filing. Peer percentiles describe where a value sits in the comparison set, never fund quality. "Not stated in filings" is a fact about a document, never a verdict about this fund.