Shrewsbury, New Jersey, August 10, 2026 – Robert A. Stanger & Company, Inc., a nationally recognized leader in non-listed alternative investment products, has published its Q2 2026 Non-Listed BDC edition of The Stanger Report, highlighting the sector's lowest quarterly fundraising total since 2020 and highest quarterly redemption demand on record.
Publicly registered non-listed BDCs raised $2.0 billion in Q2 2026, down 82% from Q2 2025. That is the lowest quarterly total since Q4 2020, before Blackstone Private Credit Fund and Blue Owl Credit Income Corp. began raising capital. First-half 2026 fundraising totaled $7.1 billion, down 70% from $23.5 billion during the first six months of 2025.
Redemption demand reached a new high in Q2, and despite elevated demand, NAV BDCs continue to provide liquidity without gating redemptions. Repurchase requests equaled 12.4% of NAV in Q2. That compares with 10.4% in Q1 and represents the highest quarterly level recorded by Stanger. Sponsors met 38% of such requests, returning $5.9 billion to investors in the quarter. Year-to-date through Q2, sponsors have returned $12.7 billion to investors.
Redemptions exceeded new capital by nearly three times during Q2, producing net outflows of approximately $3.8 billion and marking the sector’s second consecutive quarter of net outflows. For the first half, redemptions exceeded fundraising by approximately $5.6 billion. That pressure was also reflected in market size, with aggregate NAV for publicly registered NAV BDCs declining 3.1% quarter-over-quarter to approximately $122.4 billion, while remaining 7.3% above June 2025 levels.
Early Q3 reporting offers a preliminary sign of moderation, but the sample remains limited. Three NAV BDCs have reported to date, with repurchase requests equal to 4.6% of NAV versus 7.9% for those same funds in Q2. Two met 100% of requests and the third received none, though the sample remains too small to yet indicate a broader market trend.
“The Stanger Liquidity Cycle has moved out of its early stage and into its most demanding one,” said Kevin T. Gannon, Chairman & CEO of Stanger. “Fundraising has contracted sharply, redemption demand remains elevated, and the pressure is now visible in net flows and market size. At the same time, sponsors continue to deliver substantial liquidity within defined program limits, with proration functioning as designed to balance liquidity demand against protection of the investors who remain. Early Q3 data offers an encouraging initial read, but it is too limited to determine whether redemption pressure is easing across the broader market.”
Investment performance may be driving redemption activity. For the second quarter, the Stanger NL BDC Total Return Index gained only 1.2% after a flat first quarter, while the current distribution rate of the overall space is over 9% annualized. This downdraft in total return is manifesting itself in redemption activity from investors.
“The market is demonstrating an intelligent response to flattening investment performance,” Gannon added. “The months ahead will provide an important test of valuation discipline across the sector as sponsors manage portfolios to fund continued liquidity demand.”
As published in the Q2 2026 Non-Listed BDC edition of The Stanger Report, performance leaders across key time periods are summarized below:
To request a copy of The Stanger Report or for further information on all available Stanger Publications, please visit our website or 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 Q2 2026, the index currently includes 25 BDCs with a total of 58 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 Stanger 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
