BDC Common Stocks Market Recap: Week Ended March 14, 2025
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Week 11
For the week, the S&P (SP500) slipped -2.3%, while the tech-heavy Nasdaq Composite (COMP:IND) slumped -2.4%. The blue-chip Dow (DJI) cratered -3.1%.
3/15/2025 Seeking Alpha – Wall street breakfast
Not Good
Don’t be fooled by the relatively mild red ink for the week where the major indices are concerned – a big bounce on Friday mitigated some of the damage.
Week Two of the downturn continued to be a fraught time, with investors unsure what to do as the headlines changed constantly.
The BDC sector was caught up in the turmoil and had its worst week in price terms in 2025 to date.
BIZD – the BDC exchange traded fund – fell (3.7%), even worse than the (2.5%) drop of the week before.
The S&P BDC Index on a price basis dropped (3.5%).
Most Everyone
If we look at the price changes amongst the 46 public BDCs we track, 40 were in the red.
That’s the second worst weekly performance by this particular metric.
23 of the BDCs in the red fell by (3.0%) or more, higher than the 20 the week before when the markets began to pull back in earnest.
Just 1 BDC managed to increase by more than 3.0% this week – OFS Capital (OFS).
Biggest Losers
Here are the ten BDCs with the largest percentage price losses on the week:

As you can see, the list includes BDC minnows and behemoths and everything in-between.
(We do notice, though, that there are no venture-debt BDCs on the list, but that may not mean anything).
Worst
CION leads the list. As we wrote in a Premium article for our subscribers, the BDC reported “mediocre” results for both the IVQ and the full year 2024 and paid the price – so to speak – with a (9.4%) decline in its price.
We were – and remain – a little frustrated that the BDC’s management team could not admit that performance was below par.
It’s a problem with most BDCs: There’s too much “spin” involved when results are weak and not enough frank discussion, leaving shareholders feeling either a little manipulated or unsure about the judgement of the managers.
Doing The Right Thing
So how are we really doing with 43 of 46 BDCs having reported IVQ 2024 results?
Let’s go with the hard data that we collect to evaluate the matter.
In terms of changes in Net Asset Value Per Share (NAVPS), the BDC NAV Change Table shows that 13 BDCs have managed to increase their book value per share in the most recent quarter and another 10 have recorded only a tiny loss (no more than -0.5% down), and 7 are off a still modest (0.5%) -(1.0%). That’s the sort of performance – we believe – investors should expect from their BDCs.
The Laggards
However, that leaves 13 BDCs with weaker numbers, including 12 whose NAVPS has dropped by more than (1.5%).
A glance at the BDC NAV Change Table – and our color coding system – will show you which BDCs – besides CION – recorded a weaker-than-we’d-like NAVPS number in the IVQ 2024.
The most egregious example is BlackRock TCP Capital (TCPC) whose NAVPS managed to drop by (8.7%) in the latest quarter and by (22.4%) in 2024 overall.
Variable
To be fair, when a BDC’s performance seriously and indisputably deteriorates, some BDC managers put on their hair shirt, admit to misstepping and – sometimes – offer shareholders compensatory actions and a promise of a revised approach.
That’s the case for the afore mentioned TCPC:
On February 25, 2025, the Adviser voluntarily agreed to waive one-third of its base management fee with respect to the Company for three calendar quarters beginning on January 1, 2025 and ending on September 30, 2025. |
Likewise at Oaktree Specialty Lending (OCSL) whose NAVPS dropped (2.5%) in the IVQ 2024 and (7.9%) for the year:
Implemented total return hurdle resulting in waived Part I incentive fees of $6.4 million for the quarter ended December 31, 2024. In connection with the institution of this incentive fee cap, the calculation of the Part I incentive fee will consider capital gains and losses when determining Part I incentive fees payable. This new arrangement includes a lookback provision that commences effective October 1, 2024, and will build over time to a rolling 12 quarter lookback by the Company’s 2027 fiscal year-end.
Horizon Technology Finance (HRZN) , whose NAVPS is down (29%) over the past 5 years, has recently also gotten around to taking a shareholder-friendly action
The Company’s investment adviser agreed to waive the portion of its quarterly income incentive fee, if any, if and to the extent that, after payment of such portion, the Company’s net investment income per share for such quarter would be less than the quarterly distribution per share declared in such quarter. The income incentive fee waiver will be effective commencing with the quarter ending March 31, 2025 and terminating with the quarter ending December 31, 2025. |
TriplePoint Venture Growth (TPVG) – whose NAVPS has fallen by more than a third since 2019 – has not offered an explicit concession but can – at least – point to a “total return” provision in their compensation arrangement that has kept the BDC from paying its external manager an Incentive Fee for some time.
WhiteHorse Finance (WHF) – whose NAVPS has dropped by a tenth in 2024 – admitted to a “disappointing” quarter but continued to charge its Incentive Fee. If that fee had been waived , we calculate that the BDC’s recurring earnings would have been 25% higher in the year just passed.
Where We Are
Let’s get back to where the BDC sector stands after Week 11 of this already turbulent year.
At this point, BIZD is modestly in the red: (O.8%) behind in price terms.
The S&P BDC Index on a price basis is worse off: down (2.2%) and (1.2%) on a total return basis.
Only 13 BDCs are trading at or above book value.,
YTD, the stock price of 18 BDCs is up or even and 28 are in the red.
Only 5 BDCs – outside of the newly arrived MSC Income Fund (MSIF) – are up 3.0% or more in 2025.
However, 14 BDCs are down by (3.0%) or more but only 1 (CCAP) by more than (10%).
In just three weeks we’ve gone from top of the world – with BIZD at a multi-year high – to now being (8%) off the February 19, 2025 peak level.
We’re not in “Correction” territory but BIZD has only to drop by ($0.42) a share and we’ll be there.
With all that said, the BDC sector – so far – is holding up pretty well compared to the S&P 500 in 2025 , which is down by (4.1%) on a price basis and to NASDAQ, off (8.1%).
Where We’re Going
The uncertainty about tariffs, interest rates, government spending etc is not likely to return to normal levels for some time yet, although we’re beginning to get a sense of how this might play out.
As we saw on Friday, many investors are itching to “get back” into the market – including into BDC stocks.
We wouldn’t be surprised to see a further upward price move in the coming week.
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