Stanger: Aggregate Net Asset Value of NAV BDCs Up 15% in Q2 2024 Versus Q1 ’24
The non-listed business development company sector totaled $125 billion in investment value and $75 billion in net asset value as of June 30, 2024, according to investment banking firm Robert. A. Stanger & Co., Inc., and as measured by the Stanger NAV BDC Prime Index.
Stanger recently provided summary statistics on the growing NAV BDC sector, as well as profiles on the seven largest business development companies that qualify as NAV BDCs.
The BDCs are:
- Blackstone Private Credit Fund – $34.1 billion in NAV
- Blue Owl Credit Income Corp. – $11.8 billion
- HPS Corporate Lending Fund – $7.1 billion
- Apollo Debt Solutions BDC – $6.9 billion
- Ares Strategic Income Fund – $3.5 billion
- Oaktree Strategic Credit Fund – $2.9 billion
- Blue Owl Technology Income Corp. – $2.6 billion
“Despite high concentrations in floating rate investments and the overwhelming consensus that interest rate cuts are imminent, capital continues to flow into the relatively young NAV BDC space as though marching to the beat of a loud and fast drum,” stated David J. Inauen, head of research at Stanger.
“In just the past quarter, the aggregate net asset value of all NAV BDCs increased by $10 billion, or 15%, and that is being achieved while the top NAV BDCs are paying on average a 10% dividend yield. All seven of the top NAV BDCs now each have aggregate NAV in excess of $2.5 billion – quite a feat given that NAV BDCs only began to come on to the scene in 2021,” added Inauen.
Recent reporting by The DI Wire shared a variety of BDC activities:
Aug. 28: Apollo Debt Solutions BDC reported another increase to its total monthly NAV, and as reported on July 25, served as a lead arranger on a pair of loans.
July 31: Blue Owl Credit Income Corp. and Blue Owl Technology Income Corp. each recently shared Blue Owl Capital’s credit platform closing on senior secured credit facilities. On May 31, the BDCs declared special distributions which were paid in July.
June 13: HPS Corporate Lending Fund launched a $400 million private placement offering to support its operations.
June 11: Ares Strategic Income Fund entered into an indenture relating to the issuance, offer, and sale of its previously announced offering of $700 million of its 6.35% notes due 2029.
Stanger’s available analyses include information on sector-wide leverage, investment allocations, fundraising, and total return performance.
Mirroring the latest analysis but according to the heavily credit-focused Stanger NL BDC Total Return Index, non-listed BDCs had a combined aggregate NAV of $78.8 billion. This was a 16% increase from the previous quarter and a year-over-year increase of over 65%, as of June 30.
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
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