In the second quarter of 2025, the aggregate net asset value (NAV) of non-traded business development companies (BDCs) climbed 9.3% from Q1 and an impressive 47.6% year-over-year, according to the latest Q2 2025 Non-Listed BDC edition of The Stanger Report from Robert A. Stanger & Company, Inc. The Stanger NL BDC Total Return Index extended its winning streak to twelve consecutive quarters of positive total returns, with all but one quarter in the last five years posting gains. 

“Publicly registered, non-traded BDCs continue to dominate alternative investment capital formation, with more than $23 billion raised year-to-date,” said Kevin T. Gannon, Chairman and CEO of Robert A. Stanger & Company, Inc. “When including private placement BDCs, that figure exceeds $30 billion. Credit remains king, as these funds continue to deliver double-digit distribution rates to investors.” 

The quarter’s top performers showcased the sector’s breadth: FS Specialty Lending Fund led the market in 3-month total returns at 4.8%, PGIM Private Credit Fund retained the 1-year total return crown at 13.7% for the third straight quarter, Blue Owl Credit Income Corp. led the 3-year rankings at 12.7%, and Blue Owl Capital Corp. II dominated the 5-year leaderboard, more than doubling the performance of its nearest competitor. 

Looking ahead, FS Specialty Lending Fund plans to list on the NYSE by year-end, a move its management believes is supported by its scale, experienced leadership, and resilient portfolio construction. “The fund seeks to follow the recent success of MSC Income Fund, Inc., which listed in January and traded above its pre-listing NAV for nearly six months before a late-July market pullback,” noted Gregory R. DiSalvo, Managing Director at Stanger.