Publicly registered non-listed business development companies (BDCs) saw a sharp decline in fundraising in Q1, with quarterly redemptions exceeding fundraising for the first time.
Q1 gross sales totaled $4.9 billion, down 46% from Q4 2025 and 59% from Q1 2025, according to a report from Robert A. Stranger & Co.
“Fundraising has slowed, redemptions have risen, and for the first time, more capital left non-listed BDCs in a quarter than came in,” said Kevin T. Gannon, Chairman and CEO of Stanger.
Sponsors delivered “a record level of liquidity” in Q1, Gannon added. Plus, no Net Asset Value (NAV) BDC had gated redemptions. In other words, all NAV BDCs allowed investors to withdraw money as usual. None of them had to block or limit redemptions, even though there was heavy demand for cash.
“As we saw with NAV REITs in 2022, these vehicles were built to manage periods of elevated redemptions, and Q1 showed that the structure can absorb meaningful liquidity pressure,” Gannon said.
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