BDCs
BDC Filing Season Q2 2025 Week 1
BDC data provided by the Advantage Data Workstation, a SOLVE product. For more information about our BDC data or our other products please contact marketpulse@solvefixedincome.com.
Filing Recap
BDC Filing season is in full swing. This report will analyze the 5 BDCs that filed this week. Aggregate Fair Value reported by these BDCs is 36.87 Billion USD which is approximately 8.2% of aggregate AUM of all BDCs.
| Name | Number of Investments | % Portfolio | Cost | % Gain/Loss | Principal Value | Fair Value | FV Yield | Filtered Yield | Cost Yield |
| Ares Capital | 1,354 | 100.00% | 27,580,700 | 1.108% | 21,294,500 | 27,886,400 | 10.66% | 10.27% | 10.21% |
| Hercules Capital Inc. | 330 | 100.00% | 4,223,597 | -0.381% | 3,986,200 | 4,207,486 | 9.29% | 8.95% | 9.20% |
| Sixth Street Specialty Lending Inc. | 189 | 100.00% | 3,255,660 | 1.205% | 3,158,571 | 3,294,905 | 29.35% | 10.65% | 12.54% |
| Saratoga Investment Corp. | 119 | 100.00% | 1,120,952 | -1.880% | 1,010,181 | 1,099,880 | 12.25% | 11.51% | 11.41% |
| OFS Capital | 98 | 100.00% | 353,763 | 8.193% | 377,464 | 382,748 | 20.25% | 12.24% | 11.99% |
| Grand Total | 2,090 | 100% | 36,534,672 | 0.922% | 29,826,917 | 36,871,419 | 12.730% | 10.19% | 10.41% |
Non-Accruals
Five BDCs that filed this week have reported Non–Accruals amounting to 666.9 million USD at Cost. Ares Capital and Sixth Street Specialty Lending are leading the Non-Accruals list.
| Name | Number of Investments | % Portfolio | Cost | % Gain/Loss | Principal Value | Fair Value | FV Yield | Filtered Yield | Cost Yield |
| Ares Capital | 21 | 1.17% | 545,700 | -40.132% | 609,100 | 326,700 | 28.8% | — | 13.9% |
| Sixth Street Specialty Lending Inc. | 4 | 0.65% | 67,530 | -68.294% | 73,143 | 21,411 | — | 55.5% | |
| OFS Capital | 8 | 3.96% | 39,111 | -61.241% | 46,306 | 15,159 | 76.0% | — | 17.8% |
| Hercules Capital Inc. | 3 | 0.19% | 9,759 | -18.854% | 9,758 | 7,919 | — | — | — |
| Saratoga Investment Corp. | 4 | 0.27% | 4,861 | -39.525% | 4,861 | 2,940 | 25.5% | — | 4.6% |
| Grand Total | 40 | 1% | 666,961 | -43.905% | 743,168 | 374,129 | — | 31.90% |
Payment in-Kind (PIK)
BDCs are increasingly using payment-in-kind (PIK) as a credit management tool to preserve liquidity. In the filings from this week, PIK accounted for 24.04% of BDCs’ portfolios, amounting to 8.8 billion USD at Cost.
| Name | Number of Investments | % Portfolio | Cost | % Gain/Loss | Principal Value | Fair Value | FV Yield | Filtered Yield | Cost Yield |
| Ares Capital | 192 | 22.45% | 6,406,100 | -2.265% | 3,905,500 | 6,261,000 | 12.27% | 11.45% | 11.13% |
| Hercules Capital Inc. | 55 | 45.05% | 1,888,148 | 0.382% | 1,885,244 | 1,895,361 | 8.39% | 8.39% | 8.58% |
| Sixth Street Specialty Lending Inc. | 28 | 11.14% | 364,772 | 0.637% | 356,877 | 367,095 | 17.34% | 10.45% | 11.89% |
| OFS Capital | 17 | 19.37% | 94,870 | -21.844% | 89,060 | 74,147 | 14.50% | 14.23% | 11.94% |
| Saratoga Investment Corp. | 6 | 2.37% | 28,688 | -9.037% | 28,718 | 26,096 | 21.84% | — | 12.56% |
| Grand Total | 298 | 23% | 8,782,578 | -1.809% | 6,265,399 | 8,623,699 | 11.390% | 10.32% | 10.38% |
Portfolio Composition By Industry
The chart below is a bird’s-eye view of the BDCs aggregate Industry Diversification.
Portfolio Composition By Asset Class
The chart below is an overview of the BDCs aggregate Diversification by Asset Class.
BDC Investments Maturing in the next 12 Months
The table below summarizes aggregate investments of this week’s BDCs that are maturing in the next 12 months, which combined are worth more than 1.06 Billion USD at cost.
| BDC | Cost (1000) | FV (1000) |
| Ares Capital | 652,900 | 647,900 |
| Hercules Capital Inc. | 169,850 | 170,241 |
| Sixth Street Specialty Lending, Inc. | 121,598 | 115,702 |
| Saratoga Investment Corp. | 102,741 | 102,482 |
| OFS Capital | 12,589 | 11,900 |
| Grand Total | 1,059,678 | 1,048,225 |
Top 10 BDC Investments
BDCs’ portfolio quality can be measured by taking a deeper dive into the BDC’s top 10 investments. While these investments are small in number, they are the primary determinant of a BDC’s portfolio performance. Top 10 Investments of BDCs that filed this week amount to 7.97 Billion USD (Cost) accounting for 21.8% of their aggregate holdings (Cost).
| BDC | Cost (1000) | FV (1000) |
| Ares Capital | 5,457,100 | 5,567,300 |
| Hercules Capital Inc. | 1,185,506 | 1,187,387 |
| Sixth Street Specialty Lending, Inc. | 737,091 | 715,753 |
| Saratoga Investment Corp. | 437,459 | 412,639 |
| OFS Capital | 155,319 | 123,586 |
| Grand Total | 7,972,475 | 8,006,665 |
Source: SOLVE; Copyright (c) 2025.Redistribution Strictly Prohibited. Data can not be used in any way to populate a database nor shared with unauthorized users. See ADI Terms. All rights reserved.
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BDC Filing Season Recaps are written by Sourav Srimal, Andrew Robartes, and Nayan Raj. For more information about our BDC data or our other products please contact marketpluse@solvefixedincome.com.
Sourav Srimal
Senior Vice President
ssrimal@solvefixedincome.com
Andrew Robartes
Data Analyst
arobartes@solvefixedincome.com
Ivan Chestaro
Data Analyst
ichestaro@solvefixedincome.com
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