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BDC Filing Season Q1 2019 - Week 3 Update

Posted by Sourav Srimal on May 17, 2019 3:25:54 PM
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BDC Filing season is almost over. This report will analyze BDCs that have filed in the last 3 weeks. Last week’s analysis is available here. 

Aggregate Fair Value reported by BDCs that have filed in Q1 2019 is 104 Billion USD. BDCs have reported 36 Billion USD AUM in this week.

Name Number of Investments Cost Principal Value Fair Value FV Yield Cost Yield
Ares Capital 844 13,440,100 12,033,500 13,063,600 11.92 10
FS KKR Capital Corp. 341 7,792,600 7,126,806 7,440,200 25.58 12.93
Owl Rock Capital Corp. 139 6,840,793 6,853,862 6,831,712 9.34 9.32
Prospect Capital 199 5,949,069 6,105,176 5,700,673 68.29 12.34
FS Investment Corp. II 276 4,799,885 4,723,365 4,634,818 38.9 10.44
FS Energy & Power Fund 134 4,165,576 3,264,131 3,713,949 81.58 13.47
FS Investment Corp. III 252 3,809,962 3,718,069 3,671,558 16.35 11.32
Business Development Corp. Of America 322 2,641,046 2,719,828 2,528,816 30.71 12.77
New Mountain Finance 229 2,493,764 2,235,494 2,522,305 21.59 9.44
Main Street Capital Corp. 338 2,299,818 1,833,028 2,496,591 11.92 11.06
Apollo Investment Corp 264 2,494,391 2,765,537 2,444,412 10.74 10
TCG BDC Inc. 134 2,221,378 2,233,182 2,155,209 10.76 9.53
Golub Capital Investment Corp. 766 2,102,839 1,947,987 2,112,255 9.01 8.54
Hercules Capital Inc. 330 2,153,263 1,920,612 2,081,042 14.3 13.91
Golub Capital 809 2,028,871 1,858,829 2,031,163 9.05 8.65
Bain Capital Specialty Finance Inc. 193 1,920,159 1,565,697 1,913,609 8.77 8.53
TPG Specialty Lending, Inc. 71 1,825,719 1,783,254 1,824,861 10.05 10.79
Cion Investment Corp. 204 1,877,106 1,944,026 1,821,603 13.45 10.82
Solar Capital 136 1,736,535 1,284,449 1,750,247 10.08 10.09
BlackRock TCP Capital Corp. 196 1,656,032 1,728,537 1,631,580 11.41 11.6
Oaktree Specialty Lending Corp. 166 1,619,676 1,543,984 1,518,040 10.9 16.55
Goldman Sachs Private Middle Market Credit Corp. 134 1,501,988 1,699,626 1,482,557 17.41 13.15
Goldman Sachs BDC 148 1,451,655 1,390,560 1,405,097 17 12.85
Pennant Park Investment 130 1,427,273 1,151,383 1,274,979 10.42 10.43
Goldman Sachs Middle Market Lending Corp. 129 1,260,768 1,467,552 1,245,593 17.77 13.41
Barings BDC 142 1,216,050 1,220,262 1,189,384 6.92 6.38
TCW Direct Lending LLC 46 1,213,393 962,639 1,149,822 13.54 10.32
Hms Income Fund Inc. 203 1,126,096 990,529 1,122,774 12.07 10.4
PennantPark Floating Rate Capital 199 1,020,997 997,256 995,204 9.9 9.38
Blackstone / GSO Secured Lending Fund 58 953,706 953,381 955,832 8.65 8.68
Sierra Income Corp. 148 1,004,964 867,489 941,787 27.41 13.07
OWL Rock Capital Corp. II 123 919,223 933,530 921,261 8.94 8.98
TCW Direct Lending VII LLC 25 713,856 725,544 722,676 9.5 9.8
TCG BDC II Inc. 62 697,185 701,790 696,897 9.2 9.18
BlackRock Capital Investment Corporation 49 755,442 517,136 680,374 16.02 12.41
Fidus Investment Corp 137 622,704 562,562 670,481 11.9 11.36
Gladstone Investment Corporation 80 589,689 442,883 624,172 15.02 12.66
Owl Rock Technology Finance Corp. 26 622,137 625,094 623,711 8.45 8.45
Medley Capital Corp. 118 680,147 516,701 612,500 33.46 14.16
Oaktree Strategic Income Corp. 97 631,070 616,797 603,975 9.3 8.02
Monroe Capital 187 606,591 638,063 596,945 17.42 16.37
Crescent Capital BDC Inc. 182 524,805 482,862 520,254 9.73 8.55
Stellus Capital Investment Corp. 112 520,097 503,522 517,412 11.26 10.87
TriplePoint Venture Growth BDC Corp. 159 508,170 431,596 507,652 11.07 9.17
THL Credit 94 547,877 416,756 497,564 22.66 16.72
Garrison Capital 124 490,828 492,321 480,863 9.45 10.3
WhiteHorse Finance 60 475,248 469,745 468,385 11.53 11.42
Solar Senior Capital 55 473,252 373,483 467,673 12.25 8.09
Saratoga Investment Corp. 61 464,010 479,735 464,114 247.5 11.39
Oxford Square Capital Corp. 65 503,376 552,528 458,685 12.04 9.59
Capitala Finance Corp. 84 424,938 358,301 455,390 13.67 12.41
OFS Capital 87 454,361 431,329 437,667 20.13 11.4
Venture Lending & Leasing VIII Inc. 311 401,467 419,452 394,754 13.6 13.55
Gladstone Capital Corp. 104 406,961 363,158 387,720 12.37 11.92
Guggenheim Credit Income Fund 129 386,016 383,631 375,395 17.54 9.26
MVC Capital 55 439,002 212,023 341,623 13.95 13.88
Golub Capital BDC 3 Inc. 276 325,368 295,325 328,033 8.17 8.37
GSV Capital Corp. 54 265,188 106,804 313,551 269.9 221.86
Runway Growth Credit Fund Inc. 55 314,271 308,474 312,427 23.03 22.71
FS Investment Corp IV 110 314,225 315,265 311,687 10.88 10.02
CM Finance Inc. 43 305,249 314,766 299,086 13.96 13.68
Audax Credit BDC Inc. 153 299,996 300,491 298,035 7.2 7.06
Great Elm Capital Corp. 40 340,586 272,191 281,087 30.59 15.16
Portman Ridge Finance Corp. 83 327,193 157,756 274,513 76.36 9.39
Horizon Technology Finance Corp. 157 269,992 241,800 266,152 11.93 12.09
Alcentra Capital Corp. 46 233,130 203,853 213,749 10.93 10.69
AB Private Credit Investors Corp. 119 212,044 196,704 211,693 8.45 8.42
Firsthand Technology Value Fund Inc. 93 168,363 43,358 201,526 12.71 157.2
Corporate Capital Trust II - T 122 185,398 186,156 179,230 12.2 9.58
Venture Lending & Leasing VII Inc. 163 194,164 204,083 170,448 13.52 12.43
Oaktree Strategic Income II Inc. 65 168,335 164,028 169,986 7.42 7.53
NexPoint Capital Inc. 49 112,239 90,198 112,927 10.38 10.62
Harvest Capital Credit 41 106,406 98,446 101,701 13.31 13.75
Mackenzie Realty Capital Inc. 57 93,458 --- 100,373 --- ---
Venture Lending & Leasing IX Inc. 78 98,317 106,021 98,305 14.66 15.9
Flat Rock Capital Corp. 34 87,047 87,793 86,372 11.82 11.62
OHA Investment Corporation 31 117,595 93,589 73,338 10.36 25.78
Equus Total Return 6 45,011 27,954 66,027 --- ---
Terra Income Fund 6 Inc. 13 61,730 26,792 62,570 --- ---
Parkview Capital Credit Inc. 20 64,569 51,018 61,792 86.41 13.42
Princeton Capital Corp. 26 54,793 38,309 39,932 20.44 9.41
Siguler Guff Small Business Credit Opportunities Fund Inc. 19 --- 33,686 33,263 11.55 11.46
Rand Capital Corp. 67 35,594 --- 32,491 --- ---
Hancock Park Corporate Income Inc. 51 31,104 30,735 31,065 10.99 10.91
Monroe Capital Income Plus Corp 15 19,883 19,659 20,009 8.94 9.21
SCP Private Credit Income BDC LLC 10 53 109 53 8.65 8.74
  12,362 106,755,223 99,555,934 103,930,837   20.9

 

Coupon Trends of Q1 2019

As of Q1 2019, BDCs have originated around 3.6 Billion USD in New Investments. First Lien Investments were at 2.7 Billion USD representing 75% of new Investments while second lien Investments were at 907 Million USD representing 25% of new Investments. Via below chart it can be interpreted that both First Lien and Second Lien Investments were originated at L+725 which also happens to be the cut off line between First Lien and Second Lien Investments.

week3a

 

Non-Accruals

Out of 86 BDC’s that have filed so far, 53 BDC’s have reported at least one Non–Accrual in their portfolio. Aggregate Non-Accruals so far amounts to 2.9 Billion USD in Cost. Fair Value of Non-Accruals are reported at a significant Mark Down of 1.06 Billion USD.

Ares, Venture Lending & Leasing VII Inc., FS KKR and Business Development Corp. Of America are leading the Non-Accruals list.

The leading BDCs by percentage of Portfolio in Non-Accruals are Princeton Capital Corp. with 57.5%, Venture Lending & Leasing VII Inc. with 10.9% and OHA Investment Corp with 10.07%.

Name

Number of Investments

% Portfolio

Cost

Principal Value

Fair Value

Ares Capital

27

0.39%

313,700

448,100

50,800

Venture Lending & Leasing VII Inc.

26

10.90%

39,890

46,875

18,578

FS KKR Capital Corp.

15

0.41%

154,500

274,800

30,500

Business Development Corp. Of America

14

1.84%

118,976

177,511

46,541

Sierra Income Corp.

12

4.28%

95,343

115,817

40,351

Venture Lending & Leasing VIII Inc.

12

3.04%

16,994

18,847

12,014

Golub Capital Investment Corp.

11

0.23%

11,472

11,515

4,857

Medley Capital Corp.

11

9.09%

124,826

156,350

55,671

Oaktree Specialty Lending Corp.

11

5.66%

158,542

175,299

85,854

FS Investment Corp. II

10

0.42%

153,002

186,308

19,256

FS Investment Corp. III

9

0.74%

89,836

108,958

27,102

Prospect Capital

9

3.40%

487,356

580,927

193,990

THL Credit

8

5.86%

68,204

73,925

29,142

Cion Investment Corp.

7

0.48%

23,664

32,588

8,775

Gladstone Investment Corporation

7

5.77%

68,260

68,260

36,005

Main Street Capital Corp.

7

0.91%

83,435

87,204

22,621

Monroe Capital

7

2.79%

20,247

25,939

16,676

Portman Ridge Finance Corp.

7

2.84%

17,374

17,455

7,802

Golub Capital

6

0.17%

8,484

8,557

3,410

TriplePoint Venture Growth BDC Corp.

6

1.71%

10,316

10,176

8,679

Apollo Investment Corp

5

2.33%

72,003

113,269

56,852

FS Energy & Power Fund

5

1.61%

300,825

246,109

59,660

Garrison Capital

5

2.83%

16,975

17,448

13,632

Hms Income Fund Inc.

5

0.36%

6,759

7,157

3,989

New Mountain Finance

4

0.00%

1,004

1,073

13

OFS Capital

4

0.17%

12,403

16,139

732

PennantPark Floating Rate Capital

4

1.47%

31,661

32,052

14,584

Princeton Capital Corp.

4

57.51%

25,730

25,730

22,963

Saratoga Investment Corp.

4

1.23%

9,953

8,732

5,718

Stellus Capital Investment Corp.

4

1.55%

12,002

12,002

8,045

BlackRock Capital Investment Corporation

3

1.19%

39,853

35,639

8,102

Crescent Capital BDC Inc.

3

1.26%

12,539

13,718

6,551

Goldman Sachs BDC

3

3.54%

65,992

69,862

49,794

Hercules Capital Inc.

3

0.52%

23,495

33,523

10,756

Parkview Capital Credit Inc.

3

5.36%

5,790

5,790

3,312

TCG BDC Inc.

3

0.81%

58,851

60,156

17,482

Fidus Investment Corp

2

0.92%

15,359

15,363

6,191

Gladstone Capital Corp.

2

0.64%

8,549

8,549

2,484

Great Elm Capital Corp.

2

1.11%

5,540

7,618

3,117

GSV Capital Corp.

2

0.50%

4,373

4,373

1,577

Guggenheim Credit Income Fund

2

0.85%

9,784

10,370

3,181

Harvest Capital Credit

2

6.74%

6,476

7,611

6,857

OHA Investment Corporation

2

10.07%

49,367

27,117

7,383

Alcentra Capital Corp.

1

---

3,529

3,529

---

Capitala Finance Corp.

1

1.43%

8,918

9,340

6,520

CM Finance Inc.

1

3.08%

11,142

11,517

9,214

Corporate Capital Trust II - T

1

0.01%

211

222

17

Goldman Sachs Middle Market Lending Corp.

1

0.09%

11,606

11,800

1,180

Goldman Sachs Private Middle Market Credit Corp.

1

0.09%

13,573

13,800

1,380

Oaktree Strategic Income Corp.

1

---

796

1,000

---

Pennant Park Investment

1

1.33%

19,415

19,714

16,954

Solar Senior Capital

1

0.18%

7,028

7,112

853

WhiteHorse Finance

1

0.02%

1,024

1,028

103

 

308

1.33%

2,936,944

3,483,873

1,067,821

 

Top 10 BDC Investments 

BDCs portfolio quality can be measured by taking a deeper dive into BDC’s top ten investments. While these investments are small in number, these investments are primary determinants of BDC’s portfolio performance. Top 10 Investments of BDCs that have filed in Q1 2019 amount to 35.4 Billion USD accounting to 34% of their aggregate holdings.

 Download The Data

 

Topics: BDC Index, BDC, First Lien, business development company, Non-accruals, New Issues, Second Lien, BDC Filings, fair value


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