Non-Listed BDCs Provide Record Liquidity as Redemptions Exceed Fundraising in Q1 2026

Redemptions exceeded fundraising for the first time in the non-listed BDC market in Q1 2026. 9 billion in withdrawal requests, according to data compiled by Robert A. Stanger.

Investors sought to withdraw more than $15 billion during the quarter. 9 billion in new capital raised. Q1 gross sales were down 46% from Q4 2025 and down 59% from Q1 2025, Benzinga reported.

Kevin T. Gannon, Chairman and CEO of Stanger, said fundraising has slowed while redemptions have risen.

Sponsors delivered a record level of liquidity in Q1. No Net Asset Value BDC had gated redemptions during the period. All NAV BDCs allowed investors to withdraw money as usual in Q1 2026. Several funds imposed quarterly redemption caps of 5% in response to investor withdrawal requests.

Apollo Global, Ares Management, BlackRock, JPMorgan, and Morgan Stanley capped redemptions in Q1 2026. Blackstone Private Credit Fund and Oaktree Strategic Credit Fund exceeded the standard 5% quarterly repurchase limit to satisfy 100% of investor requests in Q1 2026. 5% of its outstanding common shares during the tender period opening May 1, 2026.

The firm will satisfy about 59% of the repurchase requests on a prorated basis. The Stanger NL BDC Total Return Index had its first negative quarterly return since Q2 2022. 03% in Q1 2026.

2%. The S&P BDC Total Return Index declined 14% over the trailing twelve months. 1% in Q1 2026 alone.

Benzinga reported that the sector faced elevated redemption activity amid concerns over underwriting standards, loan quality, and the software sector’s relevance amid advancements in artificial intelligence. Gannon added that the vehicles were built to manage periods of elevated redemptions. He noted that Q1 showed the structure can absorb meaningful liquidity pressure.

Fitch Ratings 2026 outlook for BDCs noted that the sector is deteriorating, reflecting expectations for further pressure on net investment income and dividend coverage.