BDC

Ares Capital, the largest publicly traded BDC, was one of only two lenders to report a year-over-year increase in funding activity.

SLR’s Michael Gross says lenders may have to throw historic recovery data out the window.

In Q1, Carlyle Credit Solutions’ investors tendered roughly 4.8% of shares.

The firm’s overall credit business ended Q2 with $84 billion in dry powder, nearly a third higher than at the start of the quarter.

Of the roughly 5,000 companies held by BDCs at the end of March, 10.6% of them showed signs of credit pressure, according to LCD’s analysis of more than 170 BDCs.

PitchBook LCD’s quarterly analysis highlights the headwinds BDCs now face, evident in the headline numbers and the trends behind them.

Warning Signs: Non-accruals, PIK discounts, and distress rise across top BDCs analyzes the underlying portfolios of the 12 largest publicly traded BDCs over the last six quarters through Q1 2026. Drawing on this portfolio data, our analysis highlights the headwinds these BDCs now face, evident in both the headline numbers and the trends behind them.

As a share of total interest income, PIK interest income slipped to 8.2%, its lowest level since Q4 2023.

The non-traded BDC fulfilled all repurchase requests at 7% of shares outstanding in the prior quarter.

Publicly traded BDCs have been increasingly returning capital to investors through share buybacks instead of investing it in loans.

New data shows that private credit funds in Q1 stomped the brakes on new fundings as software fears and heavy scrutiny weighed on the market.

The recent NAV decline was partly driven by markdowns on new non-accruals Medallia, Affordable Care Inc. and Constellis Group.

On its earnings call, the company reported “encouragement in new private credit deals,” with some deals pricing with spreads 50-100 bps wider than the tight levels seen last year.

CEO David Golub warned that businesses across many industries have come under stress and will likely need to be restructured.

Peek Under the Hood: An Analysis of Private Credit Loans in Top Public BDCs provides a quarterly, position-level view of how the largest U.S. BDCs are deploying capital across the $1.7 trillion private credit market. Topics covered include sector and industry exposure, portfolio composition and structure, first-lien vs. subordinated mix, cash spreads and all-in yield distribution, PIK and non-accrual trends, borrower cross-holdings across BDCs, and a quarterly spotlight on the most timely issues facing private credit professionals.