Non-listed BDCs post positive returns for 11 out of past 12 fiscal quarters

Non-listed business development companies, or NL BDCs, had a combined aggregate net asset value of $47.2 billion as of the end of second quarter 2023, according to Robert A. Stanger & Co.

The Stanger NL BDC Total Return Index increased by 2.73 percent during second quarter 2023, the 11th quarterly increase during the past 12 fiscal quarters following the onset of the COVID-19 pandemic. For the trailing 12 months ending Q2 2023, the heavily credit-focused Stanger NL BDC Index grew 7.7 percent.

“Unsurprisingly, with the rise in interest rates, most NL BDCs have allocated their portfolios heavily toward floating-rate debt investments, and many NL BDCs have been tacking on supplemental distributions to their otherwise regular distributions during this period of enhanced yield,” said Kevin T. Gannon, chairman and CEO of Stanger. “Higher interest rates have also attracted a number of new entrants to the NL BDC space, with $15 billion in new offerings going effectiv