BDC Filing Season Q3 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 10 BDCs that filed last week. Aggregate Fair Value reported by these BDCs is 39.7 Billion USD which is approximately 11.2% 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	1,249	100.00%	25,572,500	1.352%	19,687,800	25,918,200	11.66%	11.39%	11.22%
Hercules Capital Inc.	322	100.00%	3,609,986	-1.370%	8,594,819	3,560,513	9.42%	9.48%	9.85%
New Mountain Finance	412	100.00%	3,266,313	-0.032%	2,775,140	3,265,271	12.19%	11.03%	11.31%
Trinity Capital Inc.	439	100.00%	1,732,041	-2.116%	1,613,644	1,695,397	12.32%	12.17%	10.69%
Capital Southwest Corp.	334	100.00%	1,522,664	-0.930%	1,443,359	1,508,507	17.40%	13.26%	13.49%
Fidus Investment Corp	203	100.00%	1,112,171	1.427%	998,354	1,128,042	15.01%	12.61%	12.73%
Saratoga Investment Corp.	115	100.00%	1,123,611	0.149%	1,040,213	1,125,281	12.61%	12.50%	12.57%
Horizon Technology Finance Corp.	305	100.00%	767,578	-6.414%	666,415	718,346	14.94%	13.62%	13.48%
Great Elm Capital Corp.	76	100.00%	438,236	-4.445%	247,580	418,757	13.65%	12.96%	13.45%
OFS Capital	107	100.00%	372,601	5.940%	403,141	394,734	54.93%	12.86%	12.58%
Grand Total	3,562	100.00%	39,517,701	0.55%	37,470,465	39,733,048	12.42%	11.46%	11.37%

Non-Accruals

At least 9 BDCs that filed last week have reported Non–Accruals amounting to 677 Million USD at Cost. Ares Capital and Capital Southwest 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	24	0.64%	323,300	-48.655%	388,100	166,000	—	—	—
Capital Southwest Corp.	7	3.46%	82,168	-36.497%	82,585	52,179	0.6673	—	0.152
Horizon Technology Finance Corp.	24	5.03%	51,398	-29.665%	54,239	36,151	0.4466	0.1394	0.1553
Trinity Capital Inc.	16	1.31%	47,239	-53.003%	45,045	22,201	0.423	—	-0.1224
New Mountain Finance	7	0.64%	39,242	-46.488%	48,573	20,999	0.707	—	0.1314
Hercules Capital Inc.	2	0.58%	92,233	-77.532%	31,110	20,723	—	—	—
Fidus Investment Corp	3	0.92%	32,063	-67.707%	32,228	10,354	0.7426	—	0.1456
Saratoga Investment Corp.	4	0.22%	4,061	-38.175%	4,061	2,511	0.208	—	0.0458
Great Elm Capital Corp.	1	0.31%	4,821	-72.641%	4,935	1,319	—	—	—
Grand Total	88	0.85%	676,525	-50.86%	690,877	332,437	64.09%	13.94%	9.66%

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 22% of BDCs’ portfolios, amounting to 8.6 billion USD at Cost.

Name	Number of Investments	% Portfolio	Cost	% Gain/Loss	Principal Value	Fair Value	FV Yield	Filtered Yield	Cost Yield
Ares Capital	187	20.08%	5,250,900	-0.878%	2,872,100	5,204,800	12.85%	12.54%	11.98%
Hercules Capital Inc.	54	49.96%	1,790,730	-0.662%	1,475,752	1,778,873	9.23%	9.31%	9.56%
New Mountain Finance	58	20.20%	741,753	-11.091%	411,689	659,483	19.69%	13.18%	13.89%
Fidus Investment Corp	23	21.77%	261,803	-6.212%	263,631	245,541	19.59%	12.88%	13.34%
Capital Southwest Corp.	31	12.41%	217,616	-14.009%	222,335	187,131	38.47%	15.04%	15.58%
Trinity Capital Inc.	11	9.70%	164,077	0.263%	164,979	164,509	2.06%	2.06%	2.11%
OFS Capital	18	20.74%	93,105	-12.068%	86,847	81,869	18.10%	14.82%	13.03%
Saratoga Investment Corp.	9	4.75%	58,207	-8.238%	58,277	53,412	15.93%	13.70%	14.51%
Great Elm Capital Corp.	8	6.98%	30,815	-5.202%	30,467	29,212	17.93%	18.24%	16.16%
Grand Total	399	21.54%	8,609,006	-2.37%	5,586,078	8,404,830	13.39%	11.29%	11.38%
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	629,300	604,400
Hercules Capital Inc.	185,988	146,561
Saratoga Investment Corp.	123,219	119,463
New Mountain Finance	57,609	105,813
Fidus Investment Corp	90,769	89,715
Capital Southwest Corp.	96,584	88,733
Trinity Capital Inc.	104,115	86,170
Horizon Technology Finance Corp.	23,851	23,564
OFS Capital	13,462	9,670
Grand Total	1,324,897	1,274,089

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 9.6 Billion USD (Cost) accounting for 24% of their aggregate holdings (Cost).

BDC	Cost (1000)	FV (1000)
Ares Capital	5,430,000	5,523,100
Hercules Capital Inc.	1,058,479	1,088,047
New Mountain Finance	1,002,823	1,022,727
Saratoga Investment Corp.	474,196	462,562
Trinity Capital Inc.	443,146	437,026
Capital Southwest Corp.	347,447	381,408
Fidus Investment Corp	279,735	286,084
Horizon Technology Finance Corp.	269,530	236,954
Great Elm Capital Corp.	184,751	162,671
OFS Capital	144,278	119,587
Grand Total	9,634,385	9,720,166

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. +1 (646) 699-5041.

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