BDCs
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.
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
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