January 1, 2026
Early Reporting Indicates 200% Increase in Redemption Activity
With over half the market reporting thus far, early indications are that larger publicly registered NAV BDCs experienced a significant spike in redemption activity in the fourth quarter, according to Robert A Stanger & Co., Inc. Of those who have reported Q4 redemption activity, BDCs with NAVs exceeding $1 billion saw a combined 200% increase in redemptions versus the third quarter, from $981 million to over $2.9 billion. 80% of the larger NAV REITs experienced increases in redemptions ranging from 30% to 635%. At least one BDC flexed its quarterly tender offer up over the normal 5% of NAV to accommodate heightened redemption requests. Smaller NAV BDCs reported little to no redemption activity. These figures exclude private placement NAV BDCs that register with the SEC.
“It is all about interest rates,” stated Kevin Gannon, Chairman and CEO of Stanger. “NAV BDCs are income-driven products that are heavily weighted to floating rate debt investments, and during Q4, the average distribution rate dropped below 10% for the first time since September 2023.”
Despite the surge in redemption activity, fundraising remains strong among BDCs, which are poised to pull in over $60 billion in fundraising in 2025, according to Stanger, including over $40 billion from registered offerings.
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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
