Non-Listed BDC Fundraising Plunges 82% in Q2
Publicly registered non-listed business development companies raised $2 billion in the second quarter, an 82% decline from a year earlier and the lowest quarterly total since the fourth quarter of 2020, according to Robert A. Stanger & Company, Inc.
First-half fundraising totaled $7.1 billion, down 70% from $23.5 billion in the first six months of 2025. The slowdown comes as investors increased redemption requests and private-credit performance moderated. Earlier Stanger data showed gross sales fell to $4.9 billion in the first quarter, down 46% from the prior quarter, the investment banking and research firm reported in its Q2 2026 Non-Listed BDC edition of The Stanger Report.
Repurchase requests reached 12.4% of aggregate net asset value in the second quarter, up from 10.4% in the first quarter and the highest level Stanger has recorded. Sponsors satisfied 38% of requested repurchases, returning $5.9 billion to investors during the quarter and $12.7 billion through the first half.
Redemptions exceeded new capital raised by nearly three times in the second quarter, producing net outflows of approximately $3.8 billion. It was the sector’s second consecutive quarter of net outflows. Aggregate NAV of publicly registered NAV BDCs declined 3.1% from the first quarter to about $122.4 billion, though it remained 7.3% above its June 2025 level.
“The Stanger Liquidity Cycle has moved out of its early stage and into its most demanding one,” Kevin T. Gannon, Stanger’s chairman and CEO, said in a statement. “Fundraising has contracted sharply, redemption demand remains elevated, and the pressure is now visible in net flows and market size.”
Still, sponsors have continued to provide liquidity within established repurchase-program limits, using proration to balance investor withdrawals with the interests of shareholders who remain invested. Fitch Ratings similarly found elevated second-quarter redemption requests among perpetually non-traded BDCs, with requests rising quarter over quarter at 10 of 16 funds it tracked.
Early third-quarter data offered a tentative sign of moderation. Three NAV BDCs reporting so far saw repurchase requests equal to 4.6% of NAV, versus 7.9% for the same funds in the second quarter. The Stanger NL BDC Total Return Index gained 1.2% in the second quarter after a flat first quarter, despite an overall annualized distribution rate above 9%.
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