PIMCO Asset-Based Lending Co: $692M NAV and a 5% Early Exit Fee

What this is, and what changed since the first filings

PIMCO Asset-Based Lending Company LLC (the filings call it PALCO) is not an interval fund, a BDC or a REIT. It is an LLC that sells units privately to accredited investors and, outside the United States, to non-U.S. persons, and it files with the SEC because it registered a class under the Exchange Act. The 10-K says it intends to operate so that it is not required to register as an investment company. The 10-Q states it “was formed on March 11, 2025 as a Delaware limited liability company and commenced operations on July 15, 2025.” What is new in 2026 is the structure, not the vehicle.

It started with two series. Series I was taxed as a corporation; Series II is a partnership. On March 12, 2026 the board approved winding up Series I, and its holders were offered the chance to reinvest in the matching Series II classes. The Form 15 filed June 29, 2026 says Series I “liquidated all of its assets and liabilities” on May 1, 2026, and an 8-K says the Delaware Certificate of Cancellation was filed on June 15, 2026. Series II “remains active and in operation,” so the company still files reports. Anything you read that describes two series, including our own K-1 comparison, is out of date on that point.

NAV by class at September 30, 2026

The price at which new money comes in, and at which repurchases are made, is the “Transactional” NAV, which differs from GAAP NAV by the distribution and servicing fee that the three B classes accrue over their estimated life. The two figures are $692,289 thousand and $690,647 thousand.

Anchor II is the largest class at 35.1% of NAV and Anchor I the second at 30.1% (our arithmetic). The 10-K lists 142 holders of record across the Series II classes at February 28, 2026 (82 in Anchor I, 29 in Anchor II, one in Anchor III, five in Standard A, 24 in E and one V holder); the Anchor III class is a single holder of 10,000,000 shares at the end of 2025.

NAV has slipped, and September was the biggest step

Each month’s NAV is announced in an 8-K about four weeks later. Series II’s NAV per share for the three classes we track:

Worked example (our arithmetic). From June 30 to September 30, 2026 an Anchor I Share fell 18 cents, 1.75%. The July, August and September distributions declared add up to $0.2220 a share, 2.16% of the June NAV. Distributions less the NAV fall is about 4 cents a share, +0.4% for the quarter, before fees you may pay on entry or exit. That is our simple sum, not a reported return; the fund’s own measure for the six months to June 30 was 3.85% for Anchor I on transactional NAV, with distributions treated as reinvested.

The fall is visible in the books. The NAV exhibit carries investments at $1,323,293 thousand against a cost of $1,350,829 thousand, $27,536 thousand or 2.04% below cost. At June 30, 2026 the investments at fair value ($729,546 thousand) and investments in affiliates ($154,494 thousand) summed to $884,040 thousand against a cost of $886,898 thousand, $2,858 thousand below (our arithmetic on both). The 8-K does not say which assets lost value. The 10-Q for the quarter ended September 30, 2026 should; the last two quarterly reports were filed on May 14 and August 13, 2026.

Liabilities of 1.05 times NAV, and three quarters of rapid growth

The filing structure is unusual for a fund: the NAV exhibit lists total assets of $1,420,583 thousand (investments plus cash plus other assets, our arithmetic) and subtracts $728,294 thousand of “Other liabilities” to reach $692,289 thousand. Here is what the balance sheets show, in thousands of dollars.

The ratio is not a debt-to-equity ratio. Liabilities include subscriptions received in advance, payables for investments bought and accrued fees. At June 30 reverse repurchase agreements were $87,161 thousand and notes payable and other secured borrowings were $235,264 thousand, 56.9% of net assets (our arithmetic); the 10-Q says outstanding borrowings were $235.3 million. For September 30 the split will come in the 10-Q.

The main facility is with Banco Santander. It started at $200.0 million, was amended on May 22, 2026 to a $150.0 million limit and a rate of SOFR plus 1.4%, and matures on December 12, 2026. At June 30, $44,881 thousand was drawn on it. The 10-Q does not say whether it will be renewed. The company also uses repo lines and is the guarantor of a Barclays repo facility with a $5.0 million limit.

What it costs to hold, and what it costs to leave

The fee table is the most useful single thing in the 10-K, because the classes have different prices and nothing else on the web lays them side by side.

The performance fee works on Total Return with a 5.0% annual hurdle, a high-water mark and a 100% catch-up. The 10-K calls it a share of the Total Return: 5.0% on Anchor I, I-B and III, 7.5% on Anchor II and II-B and 12.5% on Standard A and B. Management fees are charged on NAV before the accrual of the fees themselves.

Two points from the six-month financial highlights to June 30, 2026. First, Anchor I’s total expenses were 5.25% annualized before “expense support, waiver and rebate” and 3.19% after it. The company reported $5,847 thousand of support against $13,064 thousand of expenses for the six months. The 10-K says the company reimburses the manager for that support, up to three years later, provided specified expenses stay under 0.75% of net assets, so the support is a deferral and not a waiver in every case. Second, the six-month total return on transactional NAV was 3.85% for Anchor I, 3.63% for Anchor II and 4.31% for E Shares.

Worked example (our arithmetic). Someone who holds 10,000 Anchor I Shares and tenders them at the November price of $10.12 values the position at $101,200. A 5.0% early repurchase fee takes $5,060, leaving $96,140, and that is before any entry charge. E Shares and Standard shares do not carry the fee, but they are priced for different buyers. The fee ends on the second anniversary of July 14, 2025, which is July 14, 2027.

What it owns, as of June 30, 2026

The September 30 schedule is not on file. The June 30 schedule in the 10-Q is the latest holdings detail, and it was filed on August 13, 2026. As a percentage of net assets:

The sum is over 100% because the fund buys with borrowed money, and the affiliates line is money invested in other PIMCO-managed funds. For a reader who follows real-estate credit, the 10-Q footnote describing PAL RL Trust 2 is the point: a “pool of residential fix-and-flip loans acquired through a domestic common law trust, with a federally chartered bank serving as trustee,” the kind of short-term loan that real-estate investors use to buy and renovate. The Rocket and Mr. Cooper lines are residential mortgage securitizations. PIMCO’s listed real-estate interval fund has its own holdings and leverage page, and the structure there is different.

The repurchase calendar and what is not known

The 8-K says the fund “intends but is not obligated to conduct quarterly repurchases for up to 5.0% of the aggregate Transactional Net Asset Value of its outstanding Shares (other than its V Shares).” Five percent of $692,289 thousand is about $34.6 million (our arithmetic). Requests must reach the fund by 4:00 p.m. Eastern on the deadline.

The 10-Q’s repurchase table shows a single line for the first half of 2026, E Shares at $10.29, 971.72 shares, about $10 thousand, with no early fee. Series I’s $17.8 million of share redemptions in the second quarter appears to be its liquidation, not a repurchase offer. In other words, there is no filed evidence yet of how the fund treats a real wave of requests. The Q3 offer closed on August 11 and the fall of NAV in September came after it; the November offer is the first priced after a 1.75% NAV fall since June 30 (Anchor I, our arithmetic) with the 5.0% fee in place. Whether requests arrive, and whether the fund honours all of them, is not known until the 10-Q.

Sales of shares are the other half of the picture. The 8-K sales notices show Series II selling $39.1 million of shares on January 2, $33.5 million on March 2, $44.2 million on April 1, $67.8 million on May 1 (including the Series I reinvestments), $44.7 million on June 1, $52.5 million on July 1, $31.2 million on August 1, $59.1 million on September 1 and $21.7 million on October 1, 2026 (sums of the class lines, our arithmetic). October is the lowest since January, and it is the first month priced at the lower NAV.

What a reader can do with this

• If you hold Anchor classes: the 5.0% fee applies to any tender through July 14, 2027. Ask whoever sold you the units which class you hold, and whether a switch to another class has any cost. The fee is in the fund’s own 10-Q, not in a marketing sheet.
• If you hold a B class: the 0.85% a year servicing fee comes off NAV monthly in the transactional price, and GAAP NAV accrues the future cost now. At June 30 the GAAP NAV per share of Anchor I-B was $9.93 against a transactional $10.30.
• If you are weighing a new subscription: the price is the NAV announced about four weeks after each month-end. The November 3 filing is the September NAV, so a subscription dated November 1 is priced on the October 31 NAV, which the fund announces about four weeks after month-end; the October 1 sales in the filing were priced at $10.12, the September 30 NAV.
• What to watch: the Q3 10-Q (mid-November) for the split of liabilities, the asset behind the September NAV fall and the Q3 repurchase result; the Santander renewal before December 12, 2026; and the October 31 NAV 8-K.
• For comparison: PIMCO Flexible Credit Income Fund is a registered interval fund by the same manager with a 5% quarterly offer, and the private credit redemptions tracker lines up other vehicles. Series II sends a Schedule K-1, so see when K-1s are due.

FAQ

All figures are from PIMCO Asset-Based Lending Company LLC’s SEC filings read on EDGAR on November 4, 2026: the Form 8-K and Exhibit 99.1 filed November 3, 2026 (accession 0001193125-26-445428); Form 8-Ks of January 30, April 2, May 4, June 3, June 17, July 2, August 3, September 3 and October 2, 2026; the Form 10-K for 2025 (0001193125-26-133933); the Form 10-Q for the quarter ended June 30, 2026 (0001193125-26-348949); and the Form 15 of June 29, 2026 (0001193125-26-288001). Ratios, sums, shares of NAV and the quarter’s NAV-plus-distribution figure are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.