Great Elm Capital may be one of the smaller Business Development Companies but is regularly raising new equity capital. A new capital inflow has just been announced. We review how much new equity is coming in, from whom and on what terms. We also wonder aloud what the use of the new funds might be. There are many strings in the BDC’s bow…
Hot off the presses! Prospect Capital has ended the second quarter of BDC earnings season by reporting its quarterly and full year results through June. Seeking Alpha noted that earnings didn’t drop as much as expected. However, we are focused on another metric which – once again – has moved by a record breaking percentage.
We’ve been concerned about OFS Capital’s liquidity for some time. We recently concluded that any challenges might have been kicked down the road following two new debt raises. However, a new 8-K filing about the BDC’s Revolver has alarmed us all over again. We may very well be wrong, but we wanted to share our findings, thoughts and conclusions with our readers.
MSC Income Fund became public in January full of promise but has just reached a new 52 week price low. just 8 months later. We review the stock’s short – but bumpy path – and assess why investors are fleeing. We go on to explain how the falling price might also impact its external manager – Main Street Capital.
This was another quiet week for the BDC sector with little in the way of news, or price moves. We discuss the current state of limbo where BDC prices are concerned and spend an inordinate amount of time assessing how prospective changes in interest rates might help or hurt BDC performance. We even offer up our prediction for what the Fed might do rate-wise between now and mid 2026. Everybody else is. Looking into the BDC sector’s future, though, we see a myriad of ways things could go but don’t expect any clarity for some time yet. From a macro standpoint, this is the most uncertain stretch we’ve known since Covid happened.
We were closing up shop for the week when we noticed a new filing from OFS Capital, which led us to learn a great deal more about how the troubled BDC has chosen to address a pressing upcoming debt maturity that previously had is worried about a potential liquidity crisis. Much is now clearer but OFS is not out of the woods in the medium term.
Not satisfied with acquiring the assets and shareholders of Logan Ridge Finance, Portman Ridge Finance – as long announced – is changing its name and ticker symbol.
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.
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