BDC Filing Season: Q2 2024 Week 1
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. +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
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?
Stay up-to-date with weekly summaries.
Related Resources
About SOLVE
SOLVE is the leading market data platform provider for fixed-income securities, trusted by sophisticated buy-side and sell-side firms worldwide. Founded in 2011, SOLVE leverages its AI-driven technology and deep industry expertise to offer unparalleled transparency into markets, reduce risk, and save hundreds of hours across front-office workflows. With the largest real-time datasets for Securitized Products, Municipal Bonds, Corporate Bonds, Syndicated Bank Loans, Convertible Bonds, CDS, and Private Credit, SOLVE empowers clients to transform the way they bring new securities to market, trade on secondary markets, and value highly illiquid securities. Headquartered in Connecticut, with offices across the globe, SOLVE is the definitive source for market pricing in fixed-income markets.
