Redemption requests ease in Q3 with unmet demand falling by $1.5 billion
Shrewsbury, New Jersey, November 6, 2026 – Robert A. Stanger & Company, Inc., a nationally recognized leader in non-listed alternative investment products, has published its Q3 2026 Non-Listed BDC edition of The Stanger Report. The issue highlights widening net outflows as fundraising continued to decline, even as redemption demand moderated and performance strengthened.
Publicly registered non-listed BDCs raised $1.5 billion in Q3 2026, down 87% from Q3 2025. It was the lowest quarterly total since Q4 2020, before Blackstone Private Credit Fund and Blue Owl Credit Income Corp. began raising capital, falling below the previous low set last quarter. Through September, year-to-date fundraising totaled $8.6 billion, down 76% from $35.1 billion a year earlier.
Despite a modest decline in met redemptions, the sharper contraction in fundraising pushed quarterly net outflows to $4.1 billion, marking the third consecutive quarter in which redemptions exceeded new capital. Through September, sponsors have returned more than $18.2 billion to investors against $8.6 billion of gross fundraising, resulting in $9.7 billion of net outflows year-to-date. That pressure is also reflected in market size, with aggregate NAV for publicly registered NAV BDCs declining 2.4% quarter-over-quarter to $119.3 billion, even as NAV per share remained largely stable.
Redemption demand nevertheless showed signs of moderation, as requests declined from 12.5% of NAV in Q2 to 11.5% in Q3. Sponsors met 40% of requests, returning approximately $5.6 billion to investors and leaving an estimated $8.2 billion unmet, compared with 37% met and an estimated $9.8 billion unmet in Q2. Six funds prorated requests compared with eight in the prior quarter, as BlackRock Private Credit Fund and Golub Capital Private Credit Fund met all Q3 requests after prorating in Q2.
Investment performance provided a counterpoint to weakening capital flows. The Stanger NL BDC Total Return Index gained 2.2% in Q3, matching its strongest quarterly gain since Q4 2024, following a flat Q1 and modest 1.2% gain in Q2. All 24 BDCs in Stanger’s quarterly performance rankings posted positive Q3 returns. Over the trailing twelve months, the Stanger Index returned 5.3%, compared with a 4.4% decline for the S&P BDC Total Return Index.
“In Q2, we said the months ahead would test valuation discipline as sponsors managed portfolios to fund ongoing liquidity demand,” said Kevin T. Gannon, Chairman & CEO of Stanger. “Through Q3, valuations have held. The non-listed BDC market is contracting as investors withdraw capital, not because of broad-based deterioration in NAV per share, and stable valuations have allowed recurring income to translate into improving total returns. The key question now is whether NAVs can remain stable as continued redemption pressure tests sponsors’ ability to generate liquidity through portfolio realizations.”
Performance leaders across key time periods, as published in the Q3 2026 Non-Listed BDC edition of The Stanger Report, are summarized below:
When referencing any data from this release, please cite Robert A. Stanger & Co., Inc. and link to the following: https://www.rastanger.com/news/non-listed-bdc-net-outflows-surpass-4-billion-in-q3-as-fundraising-continues-to-decline
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 Q3 2026, the index currently includes 24 BDCs with a total of 56 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
