We take a long term look at Morgan Stanley Direct Lending’s earnings, both historically and prospectively in the context of the BDC’s strategic positioning and fundamental performance. Our conclusions serve as a useful insight not only for this BDC but for the sector as a whole.
We’re not convinced that newly public MSC Income Fund – and its external manager, an affiliate of Main Street Capital – have made the right strategic decision where portfolio construction is concerned. Here’s our unvarnished view.
Palmer Square BDC is unique in the sector because of its ability to publish its net book value per share on a monthly basis. We’ve just learned the result for July and this key metric is headed upward. However, if we look back over the recent history of book value changes, the picture is more mixed.
All but one BDC has reported IIQ 2025 results but investors remained dour for a fourth week in a row even as the major indices moved higher. We review the week’s biggest price winner and loser, and the 4 new price lows. We then turn to where the BDC sector stands after 33 weeks of 2025 and speculate as to how the year might end for both BDC prices and performance.
Two BDCs are at opposite ends of the price spectrum. Guessing who is not difficult given the recent financial performance of both.
Should an external BDC manager get paid a bonus/incentive even when performance is not up to snuff? Most externally managed BDCs think so, and here’s just one more example. For our part, we believe the sector could do better.
Many years ago the SEC adopted a rule regarding acquired fund fees and expenses (AFFE) that put a crimp on BDC investing, depressing optimal prices. Is that about to change ?
IAt the tail end of BDC earnings season and sector market prices mostly in “good enough” territory, three BDCs reached new price lows on Monday. What gives? We look at each BDC in turn to try and determine why this might be happening.
Monroe Capital has reported its quarterly results – possibly for the last time. Unfortunately, there’s little to cheer in this last hurrah and the BDC Reporter is left puzzled about what is going on.
Price-wise, the BDC sector barely moved this week after a big drop the week before. However, there is a great deal going on beneath the surface, including an unexpected change in direction at two Monroe Capital managed BDCs and a host of IIQ 2025 earnings releases. We do point out who are the walking wounded BDC players but close with a mostly bullish assessment of sector performance and of the future outlook for prices.
The CEO of Golub Capital had a lot to say during the BDC’s most recent conference call about his views on the credit cycle. We cover what Mr Golub had to say and offer a few supportive thoughts of our own.
Almost out of the blue we learn of a proposed merger of two under-performing BDCs who have a common external manager. We review the terms of the proposed deal; briefly look at recent financial results and express some concern about this grand plan.
Just 4 BDCs announced IIQ 2025 results during the week, but there were plenty of other developments as well where BDC Fixed Income, new business and a fourth institutional venture debt fund were concerned. Next week, though, will be even busier.
The skies over all markets suddenly darkened this week, and the BDC sector was not exempt. After many weeks of increasing optimism, BDC investors are back to the dark forebodings of April, when we first heard about “Liberation Day”. This might be a turning point in the year, but maybe not. We discuss three potential alternatives going forward after assessing how the BDC sector stands in the wake of this week’s red ink.
Sixth Street Specialty – after absorbing a major realized loss this quarter – is in very good shape where credit matters are concerned. We review the latest conference call, 10-Q and use our BDC Credit Reporter resources to assess where the BDC stands on matters credit-related.
Ares Capital (ARCC) has kicked off IIQ 2025 BDC earnings season when almost everyone is at the beach – including the BDC Reporter. Nonetheless, we’ve reviewed the earnings press release, the 10-Q, the Investor Presentation and the conference call transcript. We won’t rehash all the numbers here that are available on all the financial platforms and – often – neatly summarised by AI to boot. Instead – and going forward – we’ll focus on offering insights from our research that might not be covered elsewhere. As you’ll find, we have a few interesting nuggets of information drawn from the research that might surprise as might some of our conclusions as well.
WhiteHorse Finance will be reporting its IIQ 2025 results and holding an earnings conference call on August 7th. Here are some key questions investors should be asking of management following several years of under-performance.
The major indices continue to climb but – this week – the BDC sector did not. Earnings season is coming up, and that may cause some changes. Maybe more importantly, a new risk to BDC prices is growing which could radically change everything.
The week ended July 18, 2025 was jam-packed with BDC news – unusual when no actual earnings were being reported. Of particular note: Trinity Capital’s “Green Light” from the SBA; Portman Ridge swallows up Logan Ridge and OFS Capital raises some – but not all – new debt needed needed to refinance an upcoming maturity and more besides.
In the twinkle of an eye – or at least two weeks – BDC prices have gone from stagnant to flying. We review the metrics and discuss various BDCs along the way. In our Looking Forward section we tackle a controversial subject: the outlook for BDC credit, which some pundits believe is headed to heck in a handbasket. We don’t agree.
