Non-listed BDC outflows reach $4.1B as Q3 fundraising falls 87%

Publicly registered non-listed BDCs recorded $4.1 billion of net outflows in the third quarter. Fundraising fell to $1.5 billion, down 87% from a year earlier, Robert A. Stanger & Company said. The quarter was the third consecutive in which redemptions exceeded new capital, the firm said in the Q3 2026 BDC edition of The Stanger Report, published Nov. 6, 2026.

Year-to-date fundraising was $8.6 billion, down 76% from $35.1 billion a year earlier. The $1.5 billion quarterly total was the lowest since Q4 2020, before Blackstone Private Credit Fund and Blue Owl Credit Income Corp. began raising capital. It also fell below the prior quarter's low. Sponsors returned more than $18.2 billion to investors through September, producing $9.7 billion of net outflows year-to-date.

Advisors can quantify the third-quarter liquidity terms: redemption requests were 11.5% of NAV, down from 12.5% in Q2, and sponsors met 40%. Six funds prorated requests, compared with eight in Q2. BlackRock Private Credit Fund and Golub Capital Private Credit Fund met all Q3 requests after prorating in Q2. An estimated $8.2 billion of redemption requests went unmet, against $9.8 billion in Q2.

As Private Wealth Daily reported, five nontraded funds filled every Q3 tender request, while BCRED, HLEND and a Morgan Stanley BDC prorated. Aggregate NAV fell 2.4% quarter-over-quarter to $119.3 billion, while NAV per share was largely stable.

The Stanger NL BDC Total Return Index gained 2.2% in the third quarter, and all 24 BDCs in Stanger's performance rankings posted positive returns. Over 12 months the index returned 5.3%, against a 4.4% decline for the S&P BDC Total Return Index.