Shrewsbury, New Jersey, February 5, 2026 – Robert A. Stanger & Company, Inc., a nationally recognized leader in non-listed alternative investment products, is set to publish its Q4 2025 Non-Listed BDC edition of The Stanger Report in the coming days, complete with performance data, in-depth company profiles, and comprehensive insights on non-listed BDCs. The latest edition introduces several enhancements, including expanded fundraising and redemption trend analysis and deeper portfolio concentration insights.
After several years of full-throttle fundraising, expanding NAVs, and double-digit total return expectations, the non-listed BDC market is now navigating a sharp change in direction. Aggregate net asset value rose 2.9% in Q4 to $131.8 billion, a notable downshift from the 9.0% quarter-over-quarter growth recorded in Q3. The Stanger NL BDC Index gained 1.8% in Q4, tying its lowest quarterly performance in nearly three years and falling below its 2.6% trailing ten-quarter average, signaling moderating total return momentum.
Publicly registered and private placement BDCs surpassed $63 billion of cumulative fundraising in 2025, up 13.9% year-over-year, while publicly registered BDCs alone accounted for $43 billion and saw a 22.6% year-over year increase. Yet recent fundraising data reveals more signs of a downshift, suggesting that while full-year totals remain strong, forward momentum is slowing:
- Cumulative fundraising for publicly registered and private placement BDCs declined 10.1% in Q4
- BDC cumulative fundraising in December totaled $4.8 billion, down 22.6% from the March peak of $6.2 billion
- December sales for publicly registered BDCs alone fell to $2.3 billion, down 49.8% from the April peak of $4.6 billion
“The warning lights have been flickering for some time,” said Michael S. Covello, Executive Managing Director at Stanger. “We first saw isolated fraud cases, then distribution rates began trending lower, followed by compression in total returns. Most recently in private credit, investor sensitivity around AI-related exposure and software-heavy portfolios has added another layer of caution. Individually, these were manageable signals. Collectively, they suggest the market was entering a turn.”
Redemptions accelerated sharply in Q4, with investors becoming more selective as total return expectations compress and liquidity management becomes paramount. As of early February reporting:
- Redemption rates as a percentage of beginning-of-quarter NAV rose to 4.71% in Q4 from 1.62% in Q3
- Multiple BDCs exceeded their 5% quarterly cap to satisfy 100% of requests
- Blue Owl Technology Income Corp. increased its tender cap from 5% to 19%, ultimately repurchasing approximately 15.4% of NAV
- Among BDCs with aggregate NAV exceeding $1 billion, redemptions increased 217% quarter-over-quarter
“The prolonged period of open-road growth for non-listed BDCs is giving way to a hairpin turn,” said Kevin T. Gannon, Chairman & CEO of Stanger. “While 2025 marked another record year for capital formation, Q4 data shows slowing inflows, moderating total returns, and rising redemption levels. Importantly, sponsors largely met elevated redemption requests – and in several cases exceeded the standard 5% quarterly cap – demonstrating the structural integrity of the products. As investors reassess risk, capital is beginning to rotate toward tangible, income-durable sectors such as defensive real estate, NNN structures, and mortgage REITs." Gannon added, “Turns don’t end cycles – they reset them. The coming quarters will reveal which platforms are best positioned to navigate tightening liquidity and shifting investor sentiment.”
New and Expanded Features of The Stanger Report:
- Current Redemption Status: Comprehensive redemption data for all publicly registered NAV BDCs under coverage
- Year-over-Year Fundraising Data: Historical capital formation trends across the non-listed BDC market
- Market Overview: A concise summary of fund size, distribution rates, performance, fundraising, and portfolio composition
Performance leaders across key time periods are summarized in the table below:
For a copy of The Stanger Report or for further information on all available Stanger Publications, please contact:
Gregory R. DiSalvo
732.389.3600
gdisalvo@rastanger.com
The Stanger NL BDC Total Return Index measures the performance of non-listed business development companies on a quarterly basis. Stanger began calculating the index on December 31, 2015, with a base level of 100. Perpetually offered, non-listed BDCs that update their NAVs no less frequently than monthly and that have a minimum of one calendar quarter of performance are included in the index. All other non-listed BDCs are generally added to the index in the quarter that their first NAV is announced. Non-listed BDCs are removed from the index upon listing, merger, or in the case of a liquidation by disposition of investments, upon conversion to a liquidation basis of accounting or announcement of the effectiveness of a plan of liquidation. Non-listed BDCs may also be removed from the index for other special circumstances. As of Q4 2025, the index currently includes 24 BDCs with a total of 55 separate share classes.
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About Robert A. Stanger & Co., Inc.
Robert A. Stanger & Co., Inc., founded in 1978, is a nationally recognized investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
Stanger is also well known for its industry leading publications: The Stanger Report, a nationally recognized comprehensive report focused on non-traded REIT and BDC investing, including aggregate market statistics, total returns by company and total return indices, fee structure comparisons, and profiles of current offerings; The Stanger Market Pulse, a monthly deep-dive into alternative investment fundraising; The Stanger Chairman’s Report, focused on NAV REIT and non-traded BDC sales and redemptions; The Stanger Closed-End Fund Report, focused on non-traded interval fund and tender offer fund investing; Stanger Privates, a quarterly publication focused on Private Placement REITs and BDCs exclusively available to Stanger Institutional Access subscribers; and The Alt Street Journal, a weekly newsletter providing an update on industry activities.
For More Information:
Kevin T. Gannon | Chairman & CEO | (732) 389-3600
Robert A. Stanger & Co., Inc.
1129 Broad Street, Suite 201
Shrewsbury, NJ 07702
www.rastanger.com
Member: SIPC
