Stanger Index Hits All-Time High as Non-Listed BDCs Surge in Value

Non-listed BDCs achieved a combined NAV of $78.8 billion by June 2024, reflecting a 65% year-over-year growth, with the Stanger NL BDC Total Return Index hitting all-time highs.

August 09, 2024

As of June 30, 2024, non-listed business development companies (BDCs) reached a combined net asset value (NAV) of $78.8 billion, representing a 16% increase from the previous quarter and an impressive 65% year-over-year growth. The Stanger NL BDC Total Return Index, which measures the performance of these non-listed BDCs, climbed to an all-time high, gaining 2.7% in Q2 2024 and 12.7% over the past year. This marks the index's eighth consecutive quarter of growth and the 15th positive return in the last 16 quarters.

In Q2 2024, Bain Capital Private Credit led the three-month return rankings with a 3.6% total return, while HPS Corporate Lending Fund topped the one-year total returns with a 15.6% increase. Over longer periods, MSC Income Fund Inc. and Blue Owl Capital Corporation II maintained their leading positions in three-year and five-year total returns, respectively. NAV BDCs notably outperformed older non-listed BDCs this quarter, capturing 15 of the top 16 spots for quarterly total return and 11 of the top 12 for one-year total return.

The report also highlighted strong fundraising activity in the sector, with over $7 billion in new offerings becoming effective in Q2 2024, including First Eagle Private Credit Fund's $5 billion public offering. The momentum in fundraising continues, with more than $31 billion flowing into non-listed BDCs over the past year.

The Non-Listed BDCs Edition of The Stanger Report for Q2 2024 offers detailed insights and individual performance data on these BDCs. Robert A. Stanger & Co., Inc., established in 1978, is an investment banking firm that provides specialized services, including investment banking, financial advisory, fairness opinions, and asset valuation to partnerships, real estate investment trusts, and real estate management companies.