Private Credit Pulse: Policy, Regulation, and BDC Trends
Private credit continues to expand its role in capital markets, but alongside growth comes greater scrutiny. Regulatory shifts, tax policy debates, and transparency requirements are shaping the environment for Business Development Companies (BDCs) and the investors who rely on them.
To help the industry navigate these changes, SOLVE recently hosted a webinar, Private Credit Pulse: BDC Filings & Policy Updates from the Hill, featuring Tonnie Wybensinger, Head of Government Relations at the Small Business Investor Alliance (SBIA), and Sourav Srimal, VP of Private Credit at SOLVE.
The discussion brought together policy expertise from Washington with real-time market data from SOLVE’s platform, delivering a comprehensive view of what’s moving in DC and how it connects to BDC performance.
Advocacy in Action: The Role of SBIA
Wybensinger opened by underscoring SBIA’s mission: ensuring the private credit and BDC ecosystem has a strong voice in Washington. With years of experience on Capitol Hill, she and her team work directly with policymakers and regulators to both advance industry priorities and block policies that could unintentionally harm market participants.
SBIA plays a dual role: educating policymakers on the often-misunderstood structure of BDCs and advocating for fair treatment in tax and regulatory policy. Thanks to SOLVE’s data, SBIA can also provide legislators with state-specific insights into the companies BDCs are financing—making the impact of private credit tangible at the local level.
Policy Issues at the Forefront
Several high-priority issues remain on the legislative and regulatory agenda:
- AFFE Rule (Acquired Fund Fees and Expenses): A longstanding SEC disclosure requirement has overstated BDC operating costs, discouraging institutional investment and index inclusion. SBIA has helped advance bipartisan legislation to correct the issue, already passing the House unanimously.
- 199A Tax Parity: Retail investors in BDCs remain excluded from a 20% pass-through deduction granted to similar structures such as REITs and MLPs. While progress has been uneven, champions in Congress continue to push for parity.
- Portfolio Company Tax Reforms: Recent changes, such as permanent expensing of R&D costs and expanded qualified small business stock provisions, create new opportunities for BDC-backed companies.
- SEC Regulatory Outlook: Increased oversight and evolving compliance requirements are likely to remain a focus, requiring ongoing engagement and education from the industry. Despite bipartisan support for many of these issues, Wybensinger reminded the audience that advocacy takes persistence.
Trends from the Latest BDC Filings
Alongside policy updates, SOLVE’s Sourav Srimal shared highlights from the 1Q 2025 BDC filing season, drawing from SOLVE’s real-time analytics:
- AUM Growth: BDC assets under management grew by $11.2 billion across 72 filers.
- Non-Accruals: Newly reported non-accruals totaled $1.4 billion, accounting for 27% of the $5.1 billion aggregate—an important indicator of rising credit stress.
- Sector Impact: Healthcare ($863M), Software & Technology ($676M), and Consumer Services ($354M) were the hardest hit sectors.
- Valuations: The share of investments marked below 90% of par declined slightly, while spreads widened on new first lien and unitranche investments. These datapoints reinforce SOLVE’s role as the industry’s leading source of transparency in a market where accurate, timely information has historically been scarce.
Looking Ahead
The conversation made clear that success in private credit requires vigilance on two fronts:
- Policy Advocacy: Ensuring that BDCs and private credit investors are treated fairly by tax and regulatory regimes.
- Market Insight: Leveraging data to identify trends, spot risks, and demonstrate the industry’s economic contributions. SOLVE’s partnership with SBIA exemplifies how data and advocacy can work hand-in-hand to advance the interests of the industry.
Fill out the form and watch the full webinar on-demand.
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.
