BDCs

BDC Filing Season Q2 2024 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 12 BDCs that filed last week. Aggregate Fair Value reported by these BDCs is 47.3 Billion USD which is approximately 14.5% 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 1,235 100.00% 24,706,700 1.079% 18,765,400 24,973,400 12.44% 12.17% 11.94%
Sixth Street Lending Partners 85 100.00% 4,910,340 1.951% 4,920,741 5,006,147 11.73% 11.72% 12.15%
Hercules Capital Inc. 328 100.00% 3,609,118 -1.124% 3,410,146 3,568,539 9.14% 9.15% 9.64%
Sixth Street Specialty Lending Inc. 189 100.00% 3,304,563 0.378% 3,199,012 3,317,069 17.82% 12.46% 13.53%
Oaktree Specialty Lending Corp. 328 100.00% 3,400,246 -5.036% 3,121,430 3,229,017 12.32% 11.94% 11.73%
New Mountain Finance 406 100.00% 3,207,549 0.194% 2,741,483 3,213,780 12.50% 11.51% 11.92%
Saratoga Investment Corp. 120 100.00% 1,215,915 -2.225% 1,126,184 1,188,856 36.81% 12.89% 12.96%
Fidus Investment Corp 200 100.00% 1,102,824 1.853% 981,631 1,123,263 14.73% 12.62% 12.86%
Horizon Technology Finance Corp. 307 100.00% 760,971 -10.325% 692,890 682,403 17.75% 13.92% 14.32%
OFS Capital 109 100.00% 385,446 3.297% 401,382 398,156 36.76% 13.01% 12.77%
Great Elm Capital Corp. 68 100.00% 336,739 -5.541% 241,138 318,081 13.86% 13.27% 13.96%
Vista Credit Strategic Lending Corp. 26 100.00% 316,726 0.171% 268,443 317,269
Grand Total 3,401 100.00% 47,257,137 0.17% 39,869,881 47,335,980 13.53% 11.91% 12.03%

Non-Accruals

At least 10 BDCs that filed last week have reported Non–Accruals amounting to 976 Million USD at Cost. Ares Capital and Oaktree Specialty Lending Corp. 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 0.71% 359,900 -50.709% 431,300 177,400
Oaktree Specialty Lending Corp. 15 3.43% 172,827 -36.006% 185,576 110,599
Horizon Technology Finance Corp. 34 6.52% 94,577 -52.922% 103,039 44,525 34.67% 20.04%
Sixth Street Specialty Lending Inc. 4 1.12% 69,345 -46.521% 74,989 37,085 228.82% 35.32%
Hercules Capital Inc. 2 0.90% 91,752 -64.982% 91,909 32,130
New Mountain Finance 7 0.72% 39,241 -41.388% 48,573 23,000 57.75% 12.32%
OFS Capital 9 4.60% 41,276 -55.594% 51,950 18,329 344.07% 17.54%
Saratoga Investment Corp. 5 1.41% 52,290 -67.982% 52,452 16,742 633.51% 14.34% 13.41%
Fidus Investment Corp 3 0.94% 32,061 -67.016% 32,228 10,575 66.33% 13.54%
Great Elm Capital Corp. 3 2.94% 22,798 -58.913% 22,935 9,367
Grand Total 103 1.14% 976,067 -50.85% 1,094,951 479,752 230.71% 14.34% 21.19%

PIK

BDCs are increasingly using payment-in-kind (PIK) as a credit management tool to preserve liquidity. In the filings from last week, PIK accounted for 21% of BDCs’ portfolios, amounting to 9.8 billion USD at Cost.

Name Investments % Portfolio Cost % Gain/Loss Principal Value Fair Value FV Yield Filtered Yield Cost Yield
Ares Capital 169 22.82% 5,638,900 -1.440% 3,337,700 5,557,700 13.49% 13.19% 12.63%
Hercules Capital Inc. 51 47.42% 1,711,623 -0.862% 1,714,149 1,696,870 8.40% 8.40% 8.75%
New Mountain Finance 62 25.87% 829,642 -8.243% 512,452 761,258 16.95% 12.69% 14.11%
Oaktree Specialty Lending Corp. 39 13.25% 450,503 -1.816% 462,975 442,321 10.88% 10.55% 9.39%
Sixth Street Lending Partners 8 7.65% 375,788 0.592% 374,285 378,014 13.82% 13.82% 14.03%
Sixth Street Specialty Lending Inc. 20 10.37% 342,563 -5.067% 341,866 325,207 71.02% 13.26% 18.58%
Fidus Investment Corp 24 21.53% 237,464 -8.877% 239,132 216,385 19.59% 13.01% 13.34%
OFS Capital 20 26.09% 100,575 -18.470% 96,271 81,999 16.55% 15.01% 13.60%
Saratoga Investment Corp. 6 4.09% 49,732 -7.517% 49,815 45,994 15.38% 14.40% 15.26%
Great Elm Capital Corp. 7 11.11% 37,423 -4.495% 37,214 35,741 18.14% 18.11% 16.80%
Vista Credit Strategic Lending Corp. 1 6.24% 19,751 1.534% 20,053 20,054 11.28% 11.28% 11.84%
Grand Total 407 21.06% 9,793,964 -2.37% 7,185,912 9,561,543 15.00% 11.77% 12.07%

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 last week’s BDCs that are maturing in the next 12 months, which combined are worth more than 1.3 Billion USD at cost.

BDC                                                             Cost (1000)                                                 FV (1000)
Ares Capital                                               632,400                                               607,700
Hercules Capital Inc.                                               170,256                                               141,757
Saratoga Investment Corp.                                               144,949                                               140,629
Oaktree Specialty Lending Corp.                                               125,161                                               122,416
New Mountain Finance                                                 83,169                                               130,291
Fidus Investment Corp                                                 77,358                                                 71,753
Sixth Street Lending Partners                                                 52,047                                                 47,884
Horizon Technology Finance Corp.                                                 19,688                                                 17,888
OFS Capital                                                 13,462                                                   9,710
Great Elm Capital Corp.                                                   5,030                                                   5,028
Grand Total                                           1,323,520                                           1,295,056

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 last week amount to 11.5 Billion USD (Cost) accounting for 24% of their aggregate holdings (Cost).

BDC                                        Cost (1000)                                                FV (1000)
Ares Capital                                           5,469,700                                           5,625,800
Sixth Street Lending Partners                                           1,826,822                                           1,854,755
Hercules Capital Inc.                                           1,044,561                                           1,068,541
New Mountain Finance                                               962,243                                               991,724
Oaktree Specialty Lending Corp.                                               715,427                                               636,889
Saratoga Investment Corp.                                               439,893                                               397,120
Fidus Investment Corp                                               270,077                                               276,614
Horizon Technology Finance Corp.                                               290,888                                               235,587
Vista Credit Strategic Lending Corp.                                               165,787                                               166,038
Great Elm Capital Corp.                                               178,700                                               158,011
OFS Capital                                               161,338                                               137,540
Grand Total                                         11,525,435                                         11,548,618

Source: SOLVE; Copyright (c) 2024.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

Nayan Raj
Data Analyst
nraj@solvefixedincome.com

SOLVE’s BDC Data & Analytics empowers businesses like yours with detailed and standardized BDC portfolio and position data within minutes of filing with the SEC. Why Choose SOLVE’s BDC Data & Analytics solution?

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