BDC Comparisons
Perpetual Non-Traded BDC Comparisons
KBRA BDC Ratings Compendium: 1Q25 Overview
In 1Q25, business development companies (BDC) demonstrated continued resilience and caution amid an uncertain operating environment marked by high base rates, tighter spreads, and uncertain trade policies. The sector remains concentrated, with 10 BDCs holding 53% of the total market of $449.9 billion at fair value (FV) as of 1Q25. Despite continued low transaction volume in a muted mergers and acquisitions (M&A) environment, perpetual-life BDCs continued to raise equity. The top five perpetual-life BDCs represented approximately one-third of the total BDC sector investments at 1Q25, relatively unchanged from 4Q24. At the same time, several non-perpetual-life BDCs saw loan repayments outpace originations, resulting in modest net negative fundings. In this uncertain environment, BDCs remain cautious in underwriting new loans, while much of the new fundings were to existing portfolio…