BDC Sales Decline 5.9 Percent in May
Sales of non-traded business development companies continued to decline in May, according to data compiled by Robert A. Stanger & Co. BDCs have been on a downward trend since their fundraising peak in 2014, likely the result of regulatory changes and other factors.
In May, non-listed BDCs raised a total of 118.8 million in equity, down 5.9 percent from April.
So far in 2016, BDCs have raised a total of $717.7 million, a decline of 61.3 percent compared to the same period in 2015 when sales topped $1.9 billion.
Franklin Square’s Energy and Power Fund was the top selling BDC in May by a landslide with $52.2 million in sales, up from $48.7 million in April.
Franklin Square’s Investment Corp IV moved up to second place with $15.8 million in sales in May, compared to last month’s total of $13.8 million, taking the silver from Sierra Income Corporation, which came in third. Sierra raised a total of $8.4 million in May, down from an April raise of $19.6 million.
Hines’ HMS Income Fund took the fourth spot with $9.8 million raised during the month, up slightly from its $9.5 million raise in April. W.P. Carey’s Carey Credit Income Fund 2016 T fell to fifth place with $8.2 million in sales, compared to $10.4 million in sales for April.
Although they didn’t reach the top five, Mackenzie Realty Capital, CION Investment Corporation, and Carey Credit Income Fund-I all experienced three months of upward trending sales from March to May.
