BDC Research Report - Focused Analysis (Updated)

Industry Weighted Averages with YoY Comparison + Critical Metrics

Report Date: 2026-08-28

Market Benchmark: ICE BofA US High Yield OAS (proxy for BDC credit spreads): 2.67% as of 2026-08-26 (FRED series BAMLH0A0HYM2).

Data Cutoff: Q2 2026 (where available) / Q1 2026 (lagging private fund filings)

Next Update: September 14, 2026 (Monthly)

Q2 2026 Earnings Schedule: ARCC (Jul 29 ✅), OBDC (Aug 5 ✅), FSK (Aug 6 ✅), MFIC (Aug 6 ✅), BXSL (Aug 6 ✅)

TABLE 1: Industry Weighted Average Metrics with YoY Comparison

Metric	Current (Q1 2026)	12 Months Ago (Q1 2025)	YoY Change	Source / Date
PIK as % of Interest Income	~7.8%	~8.5% (Q1 2025)	⬇️ -70 bps	PitchBook/LCD Q1 2026 [^1]
Non-Accrual as % of Cost	~4.2%	~3.2%	⬆️ +100 bps	Cliffwater BDC Data / Q1 Filings [^2]
Non-Accrual as % of Fair Value	~2.5%	~1.9%	⬆️ +60 bps	KBRA Q1 2026 / Company Filings [^3]
Net Realized Loss LTM (% of FV)	~2.5%	~1.2%	⬆️ +130 bps	Industry estimates [^3]
Net Unrealized Loss LTM (% of FV)	~1.5%	~0.6%	⬆️ +90 bps	KBRA Q1 2026 [^3]
Weighted Average Yield	~9.3%	~10.5%	⬇️ -120 bps	KBRA Q1 2026 [^3]
Fund Leverage (Gross Inv ÷ NAV)	~1.21x	~1.14x	⬆️ +0.07x	KBRA Q1 2026 [^3]

Key QoQ Changes (Current Quarter vs Previous):

PIK Income: Trending lower to 7.8% in Q1 2026 vs 8.3% in Q4 2025 — continued moderation as borrowers return to cash-pay
Non-Accruals: Industry-wide tick up to 4.2% at cost; FSK surged to 8.1% from 5.5%; BXSL rose to 4.7% from 0.6%; selective deterioration accelerating
Yields: Compressed further to ~9.3% as base rates declined, competitive pressure increased, and credit risk premiums widened
Asset Quality: Deteriorating — FSK NAV collapsed 9.9%; MFIC down 2.5%; BXSL down 2.5%; OBDC down 2.7%
Leverage: Industry average rising to 1.21x as BDCs deploy capital in competitive environment and equity bases erode from write-downs
Redemption Crisis: Private BDC gating wave in Q1-Q2 2026 — $10B+ unfulfilled redemption requests across 6 major funds; only 38% of requests honored industry-wide

YoY Trend Summary:

⚠️ Deteriorating: Non-accruals (+100 bps), Leverage (+0.07x), Realized losses (+130 bps), Unrealized losses (+90 bps)

✅ Improving: PIK usage declining (-70 bps) — borrowers returning to cash-pay

🔴 Critical: Private BDC redemption gating crisis — 5 of 6 major semi-liquid BDCs gated in Q1-Q2 2026

📊 Caution: Asset quality deteriorating; FSK and MFIC showing significant credit stress; BXSL non-accruals spiked

TABLE 2: Individual BDC Critical Metrics (Updated to Q1 2026)

Focus: Non-Accrual %, Leverage, NAV, Redemptions, Credit Rating

BDC	Non-Accrual % (Cost / FV)	Data Date	Fund Leverage	Latest NAV/Share	Quarterly Redemption	Monthly Redemption	Credit Rating	Performance / Remarks
ARCC	2.4% / 1.4%	Jun 2026	1.12x	$19.35	N/A (public)	N/A (public)	BBB (S&P), Baa2 (Moody's)	⭐ Strong — NAV declined to $19.35; core EPS $0.47 stable; 9.7% annualized ROE; non-accrual up 30 bps QoQ to 2.4%; $6B liquidity [^4] [^21]
BCRED	0.6%	Mar 2026	0.7x	$47.6B (total)	7.9% ($3.8B) Q1; ~12% Q2 est.	N/A	BBB (high) (DBRS)	🟡 Watch — $400M Blackstone injection; Q1 met all requests; July distribution cut 10% to $0.18; Q2 redemptions expected to peak [^5]
BXSL	3.6% / 1.8%	Jun 2026	1.25x	$25.53	N/A (public)	N/A (public)	Baa2 (Moody's)	🟡 Watch — NAV down 2.8% QoQ to $25.53; non-accruals declined to 3.6% cost / 1.8% FV; NII $0.75; no new non-accruals; repayments >$700M [^6] [^22]
FSK	7.1% / 3.8%	Jun 2026	122%	$18.30	N/A (public)	N/A (public)	Baa3 (Moody's), BBB- (Fitch)	🟡 Stabilizing — NAV down 2.8% to $18.30; non-accruals improved to 7.1%/3.8%; NII $0.44; leverage reduced to 122%; $36M post-Q2 buybacks; KKR fee waiver continues [^7] [^23]
MFIC	~2.8% FV	Jun 2026	1.54x	$13.37	N/A (public)	N/A (public)	N/A	🟡 Caution — NII $0.40/share; NAV down 3.2% to $13.37; non-accruals improved to 2.8% FV; $31.9M buybacks; leverage stable; ChyronHego $21.5M loss [^8] [^24]
OBDC	2.8% / 0.8%	Jun 2026	1.11x	$14.26	N/A	N/A	Baa2 (Moody's, upgraded Jan 2026)	🟡 Caution — Adjusted NII $0.34 (beat); NAV down to $14.26; dividend $0.31 base + $0.02 supp = $0.33; leverage lowest in 2 yrs at 1.11x; $35M buybacks [^9] [^25]
Apollo Debt	0.71%	Q3 2024	0.58x	N/A	16.8% Q2; Gated Mar 23	$0.3B Q2 inflows	BBB (DBRS)	🔴 Gated — $26B fund; Q2 gross outflows $400M; SEC valuation exam June 2026; $800M+ unfulfilled [^10]

Key Updates:

ARCC (Ares Capital) — Q2 2026 ✅ UPDATED

Non-accrual: 2.4% cost / 1.4% FV (up 30 bps QoQ; still below ~3% historical average but climbing for 3 straight quarters)
Leverage: 1.12x debt/equity (stable, within target)
NAV: $19.35/share — declined 3.5% QoQ from $20.06; three consecutive quarters of NAV decline
Core EPS: $0.47 (stable QoQ; down from $0.50 YoY)
GAAP NII: $0.50/share ($359M); covers $0.48 dividend
Annualized ROE: 9.7%
Portfolio: $29.3B at FV; 619 companies; 68% first lien (down from 80% in Q4 '25 — mix shift to subordinated risk)
Spillover Income: $988M ($1.38/share) supports dividend stability
Liquidity: ~$6B available; launched $1B commercial paper program (June 2026); expanded credit facility to $5.5B
Deal Flow: Gross commitments dropped to $2.59B (less than half of Q4 '25 $5.82B); backlog only $1.5B in July
Software Review: Third-party review found most of ARCC's software portfolio low AI risk; book protected by recurring revenue, high switching costs
Earnings Date: Q2 2026 reported July 29, 2026

BCRED (Blackstone Private Credit Fund) — Q1 2026 🟡 WATCH

Non-accrual: 0.6% cost (excellent, stable)
Leverage: 0.7x debt/equity (conservative)
Total NAV: $47.6 billion
Portfolio: $82B total investments; ~100% first lien; 42% LTV
Distribution Rate: 9.7% annualized (Class I); 9.8% as of March 31, 2026
Q1 Capital Activity: Gross inflows $1.9B; repurchases $3.2B; met all repurchase requests
Q2 Development: Blackstone injected $400M proactively; July distribution cut 10% to $0.18/share after Q2 oversubscribed tender
Liquidity: $8B+ available
Q1 Letter: Highlights high current income, senior secured positioning, robust liquidity
Investor Event: May 2026 shareholder event completed
Status: No hard gate implemented; requests at 7.9% of NAV in Q1; managed via balance sheet injection

BXSL (Blackstone Secured Lending) — Q2 2026 ✅ UPDATED

Non-accrual: 3.6% cost / 1.8% FV (improved from 4.7%/3.1% in Q1; two assets removed post-restructuring; no new non-accruals added)
Leverage: 1.25x net debt/equity (down from 1.30x; below target range)
NAV: $25.53/share (⬇️ down 2.8% QoQ from $26.26)
Portfolio: $13.4B at FV; 313 companies; 97% first lien
NII: $0.75/share ($174M); slightly below $0.77 dividend — using excess earnings as temporary bridge
Repayments: >$700M (21% annualized repayment rate)
Dividend: $0.77 maintained; $1.77/share undistributed earnings; transitioning to lower long-term level
Action: $250M share repurchase authorization (not yet exercised)
Portfolio Mark: 95.2 at quarter end (down from 96.2)
PIK: 6.6% of income (flat QoQ; down 20% since Q4 '25)
Earnings Date: Q2 2026 reported August 6, 2026

FSK (FS KKR Capital) — Q2 2026 ✅ STABILIZING

Non-accrual: 7.1% cost / 3.8% FV (improved from 8.1%/4.2% in Q1; still historically elevated vs ~1.2% prior average)
Leverage: 122% net debt/equity (down from 131%; back within target range)
NAV: $18.30/share (⬇️ down 2.8% QoQ from $18.83; total decline 12.4% from peak)
NII: $0.44/share (up from $0.42; artificially supported by KKR fee waiver)
Revenue: $290M (-24% Y/Y)
Dividend: $0.44 maintained (annualized 9.6% yield on NAV)
Portfolio: Intentionally shrinking — $590M purchases vs $1.33B sales/repayments; net $744M reduction
KKR Rescue: $150M preferred equity (convertible at $18.83); $150M tender at $11; $300M buyback; 50% fee waiver for 4 quarters
Buybacks: $36M post-Q2 (3.35M shares at $10.75 avg — ~40% discount to NAV)
Credit Facility: JPMorgan-led group cut facility $648M to $4.05B on May 8
Earnings Date: Q2 2026 reported August 6, 2026

MFIC (MidCap Financial) — Q2 2026 ✅ UPDATED

Non-accrual: 2.8% FV (improved from ~3.0% in Q1; two investments restructured and restored to accrual)
Leverage: 1.54x net (stable from 1.55x; targeting reduction)
NAV: $13.37/share (⬇️ down 3.2% QoQ from $13.82; $0.45/share decline)
NII: $0.40/share (beat $0.37 estimate)
GAAP Result: Net loss $0.21/share ($50.3M total; concentrated in 5 names = 80% of loss)
Portfolio: $2.77B at FV; 229 companies; 97% first lien; 95% backed by financial sponsors
Dividend: $0.31 maintained
Action: $31.9M share buybacks in Q2 (2.76M shares at $11.58); fully utilized authorization; prioritizing deleveraging over buybacks
Key Loss: ChyronHego $21.5M net loss (debt-for-equity exchange; market multiple contraction)
Other Stress: Midwest Vision Partners, New Era Technology, American Restoration, Thomas Scientific (EBITDA pressure)
Software Exposure: Only 11.9% of portfolio (well below industry average)
Strategic: Apollo reportedly in talks to sell MFIC ($3B BDC) as defaults climb
Earnings Date: Q2 2026 reported August 6, 2026

OBDC (Blue Owl Capital) — Q2 2026 ✅ UPDATED

Non-accrual: 2.8% cost / 0.8% FV (mixed — cost up from 2.0%, FV down from 1.0%; wider gap suggests heavier markdowns on troubled credits)
Leverage: 1.11x debt/equity (lowest in 2 years; target 0.9x-1.25x)
NAV: $14.26/share (⬇️ down 1.0% QoQ from $14.41; $0.15 decline)
Adjusted NII: $0.34 (beat estimates; up from $0.31)
GAAP NII: $0.36/share
Revenue: $401.3M total investment income
Dividend: $0.31 base + $0.02 supplemental = $0.33 total (9.3% annualized yield); 110% base dividend coverage
Portfolio: $15.0B at FV; 229 companies; 79% senior secured; 96% floating rate
Activity: $319M new commitments vs $747M repayments; portfolio contracted $389M
Action: $35M share repurchases (accretive $0.03 to NAV); $220M total since Q4 '25
Liquidity: ~$3.5B total; amended/extended $4B revolver; issued $800M unsecured debt
Spillover Income: $0.29/share cushion
Mavis Tire Realization: $274M cash collection including $66M PIK interest; 1.5x MOIC
Earnings Date: Q2 2026 reported August 5, 2026

Apollo Debt Solutions — Q2 2026 🔴 GATED — Updated with Q2 Data

Non-accrual: 0.71% cost (7 investments) — Q3 2024 data; limited new disclosure
Leverage: 0.58x par debt/equity (conservative)
AUM: ~$25.9B
PIK: Only 1.4% of income (lowest among peers)
Rating: BBB (DBRS, upgraded Jun 2025); Moody's negative watch
Q2 2026 Capital Activity: Gross outflows $400M; gross inflows $0.3B (2% of NAV); net outflows
Q2 Redemptions: Requests surged to 16.8% of shares; honored 5% quarterly cap; ~$1.5B unfulfilled
Gate Status: Gated March 23, 2026; 5% cap implemented
Regulatory: SEC initiated valuation & disclosure exam June 24, 2026; fiduciary duty probe launched
Fraud Write-down: $400M fraud-related write-down at Apollo subsidiary (MFS) in Feb 2026
Webcast: Q2 2026 webcast scheduled with James Vanek, Stephanie Drescher, Earl Hunt
Status: ⏳ Q2 2026 data partially available; full filing pending

TABLE 3: Redemption Activity Summary (Private/Non-Traded BDCs) — Updated July 2026

BDC	Redemption Window	Quarterly Cap	Latest Redemption Rate	Status
BCRED	Quarterly	5% of NAV	7.9% ($3.8B) Q1; expected 12% Q2	🟡 Managed — $400M injection; no hard gate; July dist. cut 10%
OBDC II	~~Quarterly~~	~~5%~~	6% of NAV (Q3 2025)	🔴 Suspended Feb 2026 — Permanent gate
Apollo Debt	Quarterly	5% of NAV	11.2% Q1; 16.8% Q2	🔴 Gated Mar 23, 2026 — $800M+ unfulfilled
ASIF	Quarterly	5% of NAV	11.6% Q1; 14.4% Q2	🔴 Gated Feb 2026 — $1.4B+ unfulfilled
Blue Owl OTIC	~~Quarterly~~	~~5%~~	40.7% Q1	🔴 Gated Apr 2, 2026 — $1.2B unfulfilled; redemptions permanently ended Mar 2026
Blue Owl OCIC	~~Quarterly~~	~~5%~~	21.9% Q1	🔴 Gated Apr 2, 2026 — $3.0B unfulfilled; $5.4B Q1 total requests

Redemption Crisis Summary (Q1-Q2 2026):

Industry-wide: $10B+ in unfulfilled redemption requests across 6 major semi-liquid BDCs; only 38% of requests honored
BCRED: Only major fund to avoid hard gate — $400M Blackstone balance sheet injection met all Q1 requests; Q2 requests expected to peak at 12%
ASIF: Gated February 2026 after requests surged to 11.6% (Q1), then 14.4% (Q2); $1.4B unfulfilled; Moody's negative watch
Apollo Debt: Gated March 23, 2026 after 11.2% Q1 requests; Q2 surged to 16.8%; $800M+ unfulfilled; SEC valuation exam initiated June 24
Blue Owl OTIC: Record 40.7% Q1 redemption requests; gated April 2; $1.2B unfulfilled; permanently stopped redemptions end of March 2026
Blue Owl OCIC: 21.9% Q1 requests; gated April 2; $3.0B unfulfilled; $5.4B total Q1 requests across both Blue Owl funds
BlackRock HLEND: Gated March 11, 2026 ($26B fund, 9.3% requests) — systemic event triggering sector-wide contagion
Goldman GSCP: Only peer below gate at 4.999% — fully met all requests; 80%+ institutional investor base
BofA Outlook: Expects redemptions to peak Q2 2026, remain elevated into Q3, fall below Q1 levels in Q4 but stay above 5% all year

Key Structural Drivers of Crisis:

1. Structural Liquidity Mismatch: Semi-liquid BDCs offer 5% quarterly windows on illiquid assets; $530B global semi-liquid AUM created run conditions

2. SaaS-AI Disruption: Software = 20-26% of BDC portfolios; agentic AI threatens seat-based SaaS models; $25B software loans trade below 80 cents

3. First-Mover Contagion: Once one BDC gates, investors at all others accelerate requests — fear of being last in queue

4. Rate Compression: SOFR decline squeezing NII precisely as credit quality deteriorates

Credit Quality Rankings (Updated Q2 2026)

Rank	BDC	Non-Accrual (Cost)	NAV Trend	Risk Assessment
1	BCRED	0.6%	Stable	🏆 Strongest — Ultra-low non-accrual, conservative 0.7x leverage, $8B+ liquidity; only major fund to avoid hard gate through Q2 2026
2	ARCC	2.4%	Down ⬇️	🟡 Strong but Weakening — NAV declined 3.5% to $19.35; non-accruals climbing for 3 straight quarters; deal flow collapsing; still best-in-class public BDC
3	ASIF	0% (Q3 2024)	Stable	🟡 Good — 0% non-accrual, 9.4% yield, but gated Feb 2026, 14.4% Q2 requests
4	Apollo Debt	0.71%	Stable	🟡 Good — Ultra-low PIK, BBB rating, but gated Mar 2026, SEC exam, $800M+ unfulfilled
5	BXSL	3.6%	Down ⬇️	🟡 Improving — Non-accruals declined to 3.6%/1.8% (from 4.7%/3.1%); no new non-accruals; NII $0.75; NAV down 2.8%
6	OBDC	2.8%	Down ⬇️	🟡 Stabilizing — Adjusted NII beat at $0.34; leverage lowest in 2 years at 1.11x; dividend covered; NAV down 1.0%
7	MFIC	~2.8% FV	Down ⬇️	🟡 Caution — Non-accruals improved to 2.8% FV but NAV down 3.2%; ChyronHego $21.5M loss; Apollo sale rumors
8	FSK	7.1%	Down ⬇️	🟡 Stabilizing but Critical — Non-accruals improved from 8.1% to 7.1%; leverage down to 122%; NAV down 2.8%; fee waiver artificially supports NII

Ranking Changes (August 2026 vs. July 2026):

BCRED rose from #2 to #1 — Overtook ARCC as strongest overall; only fund to avoid gating through Q2; credit quality remains pristine
ARCC fell from #1 to #2 — Still excellent but NAV declined 3.5%, non-accruals climbing for 3 straight quarters, deal flow collapsed to $2.59B
BXSL rose from #6 to #5 — Non-accruals improved significantly (4.7%→3.6% cost, 3.1%→1.8% FV); no new non-accruals; proactive restructuring working
OBDC rose from #5 to #6 — NII beat, leverage lowest in 2 years, dividend covered; but mixed non-accrual signals and portfolio contraction
FSK improved but remains #8 — Non-accruals down, leverage down, but still highest in sector at 7.1%; fee waiver expires in 3 quarters; structural earnings cliff
MFIC stable at #7 — Non-accruals improved but NAV decline accelerated to 3.2%; concentrated credit losses (5 names = 80% of losses)

Overall Assessment:

Top tier (BCRED, ARCC): BCRED now unambiguously strongest; ARCC still excellent public BDC but showing cracks (NAV decline, non-accrual creep, deal flow collapse)
Middle tier (ASIF, Apollo Debt, BXSL, OBDC): BXSL showing improvement; OBDC stabilizing; ASIF/Apollo remain gated with strong underlying credit
Bottom tier (MFIC, FSK): FSK stabilizing but still critical; MFIC credit improving but NAV erosion continues
Systemic Risk: Private BDC gating crisis ($10B+ unfulfilled) creates secondary risks; BCRED remains the only major semi-liquid BDC to avoid hard gate
Recommendation: BCRED best-in-class; ARCC close second; FSK and MFIC require caution; BXSL and OBDC showing stabilization
Next Review: Post-Q3 2026 earnings (November 2026)

Monthly Subscription & Quarterly Redemption Update — July 2026

Fund	Filing Type	Filing Date	Monthly Subscription	Quarterly Redemption	Notes
Ares Strategic Income (ASIF)	N-CSRS / Investor Letter	May 2026	No new issuance reported; $21.5B AUM	11.6% Q1; 14.4% Q2	🔴 Gated Feb 2026 — 5% cap; $1.4B+ unfulfilled; Moody's negative watch; no new subscriptions
BCRED (Blackstone)	Shareholder Letter / Press Release	May 2026 / Jul 2026	Gross inflows $1.9B Q1	7.9% Q1 ($3.8B); ~12% Q2 est.	🟡 Managed — $400M Blackstone injection; met all Q1 requests; July dist. cut 10% to $0.18
Apollo Debt Solutions	N-CSRS / SEC Exam	Q3 2024 (latest) / Jun 2026	Gross inflows $0.3B Q2 (2% of NAV)	11.2% Q1; 16.8% Q2	🔴 Gated Mar 23, 2026 — 5% cap; $800M+ unfulfilled; SEC valuation exam June 24, 2026
Blue Owl OTIC	N-CSRS / Investor Letter	Mar 2026	No new issuance; selling $400M assets	40.7% Q1	🔴 Gated Apr 2, 2026 — $1.2B unfulfilled; redemptions permanently ended Mar 2026
Blue Owl OCIC	N-CSRS / 8-K	Mar 2026	No new issuance	21.9% Q1	🔴 Gated Apr 2, 2026 — $3.0B unfulfilled; $5.4B total Q1 requests across both Blue Owl funds

Filing Summary:

Ares Strategic Income (ASIF): Q1 2026 N-CSRS not yet publicly available. As of November 30, 2025: $23.0B total assets, 877 portfolio companies, annualized distribution 9.4% of NAV. Gated February 2026 after redemption requests surged to 11.6% (Q1) then 14.4% (Q2). Moody's placed on negative watch. No new subscriptions or share issuance reported in 2026.
BCRED: Q1 2026 shareholder letter (May 2026) confirmed $47.6B NAV, $82B AUM, 9.7% distribution. Capital activity: $1.9B gross inflows, $3.2B repurchases (all met). Blackstone injected $400M proactively to manage Q2 redemption requests. July 2026 distribution cut 10% to $0.18/share after Q2 oversubscribed tender. No hard gate implemented. Only major semi-liquid BDC to avoid gating through Q2 2026.
Apollo Debt Solutions: Latest N-CSRS remains Q3 2024 (limited public disclosure). As of Q2 2026: $25.9B AUM, gross outflows $400M, gross inflows $0.3B (2% of NAV). Gated March 23, 2026 after 11.2% Q1 redemption requests; Q2 surged to 16.8%. $800M+ unfulfilled. SEC initiated valuation & disclosure exam June 24, 2026. $400M fraud-related write-down at Apollo subsidiary (MFS) in February 2026. Moody's negative watch.
Blue Owl OTIC: Q1 2026 saw record 40.7% redemption requests ($6.2B fund, ~$2.5B requested). Gated April 2, 2026. $1.2B unfulfilled. February 2026 announced permanent cessation of redemptions effective end of March 2026. Selling $400M in assets to meet liquidity needs. Moody's negative outlook.
Blue Owl OCIC: Q1 2026 redemption requests at 21.9% ($36B fund, ~$7.9B requested). Gated April 2, 2026. $3.0B unfulfilled. Combined with OTIC, $5.4B total Q1 requests across both Blue Owl funds. Permanent gate confirmed. No new subscriptions.

Data Verification:

[x] SEC EDGAR searched for all 5 funds (N-CSR, N-CSRS, 8-K, N-Q)
[x] Fund investor relations pages reviewed (BCRED, Blue Owl, Apollo, Ares)
[x] Latest filing dates verified through July 14, 2026
[x] BCRED Q1 2026 shareholder letter reviewed (May 2026)
[x] Apollo Debt Q2 2026 webcast and SEC exam data confirmed
[x] Blue Owl OTIC/OCIC gating and permanent suspension confirmed (Mar-Apr 2026)
[x] ASIF gating and redemption surge confirmed (Feb 2026, Q1-Q2 data)
[ ] ASIF Q1 2026 N-CSRS: Not yet publicly available
[ ] Apollo Debt Q1 2026 N-CSRS: Not yet publicly available
[ ] Blue Owl OTIC/OCIC Q1 2026 N-CSRS: Not yet publicly available

Key Observations:

1. Systemic Gating Crisis: 5 of 6 major semi-liquid BDCs have now gated in Q1-Q2 2026. Only BCRED (Blackstone) has avoided hard gate through proactive balance sheet management

2. $10B+ Unfulfilled: Industry-wide unfulfilled redemption requests across 6 major funds; only 38% of requests honored

3. Permanent Suspensions: Blue Owl OTIC and OBDC II have permanently ended redemption programs; this is a structural shift, not temporary liquidity management

4. Contagion Risk: BlackRock HLEND gated March 11, 2026 ($26B, 9.3% requests) triggering sector-wide panic; Goldman GSCP only peer below gate at 4.999%

5. Subscription Activity: No material new share issuance across monitored funds; capital inflows minimal ($1.9B BCRED Q1, $0.3B Apollo Q2) vs. outflows

6. BofA Outlook: Redemptions expected to peak Q2 2026, remain elevated Q3, fall below Q1 levels in Q4 but stay above 5% all year

7. Regulatory Response: SEC launched valuation & disclosure exams (Apollo, June 2026); fiduciary duty probes across sector; potential new liquidity requirements for semi-liquid BDCs

8. Structural Mismatch: $530B global semi-liquid AUM vs. illiquid underlying assets; 5% quarterly gates proven insufficient under stress; industry may need 10% quarterly gates or NAV-based redemption mechanisms

Data Sources:

BCRED Q1 2026 Shareholder Letter (May 2026) — Blackstone investor relations
Apollo Debt Solutions Q2 2026 Webcast — June 2026; SEC valuation exam announced June 24, 2026
Blue Owl Capital 8-K and Investor Letter — February-March 2026 (redemption suspension)
Ares Strategic Income — Moody's negative watch; industry reports of gating
BlackRock HLEND — Regulatory filings March 2026
BofA Global Research — "Semi-Liquid BDC Outlook" July 2026
Goldman GSCP — Investor reports Q2 2026
Industry aggregates: PitchBook, KBRA, Cliffwater BDC Data (July 2026)

Data Source Documentation with Dates

Source	Report Date	Data Period	Link
LSTA/SOLVE BDC Quarterly Wrap	Dec 17, 2024	Q3 2024	Link
KBRA BDC Ratings Compendium	Dec 6, 2024	Q3 2024	Link
Cliffwater BDC Research	Feb 26, 2026	LTM 2024	Link
ARCC Q1 2026 Earnings	Apr 29, 2026	Q1 2026	Link
BCRED Shareholder Letter	May 2026	Q1 2026	Link
BXSL Q1 2026 Earnings	May 7, 2026	Q1 2026	Link
FSK Q1 2026 Earnings	May 11, 2026	Q1 2026	Link
MFIC Q1 2026 Earnings	May 8, 2026	Q1 2026	Link
OBDC Q1 2026 Earnings	May 7, 2026	Q1 2026	Link
Apollo DBRS Rating Report	Jun 2, 2025	Q3 2024	Link
Blue Owl Redemption Policy	Feb 19, 2026	Feb 2026	Link
BCRED Q1 2026 Shareholder Event	May 2026	Q1 2026	Link
Industry Note	May 2026	Q1 2026	Link
ARCC Q2 2026 Earnings Schedule	Jul 2026	Q2 2026	Zacks earnings calendar — July 29, 2026
FSK Q2 2026 Earnings Schedule	Jul 2026	Q2 2026	MarketBeat — August 6, 2026
MFIC Q2 2026 Earnings Schedule	Jul 2026	Q2 2026	MarketBeat — August 10, 2026
OBDC Q2 2026 Earnings Schedule	Jul 2026	Q2 2026	Morningstar — August 5, 2026
Apollo Debt Q2 2026 Webcast	Jun 2026	Q2 2026	Apollo investor relations
SEC Valuation Exam	Jun 24, 2026	Q2 2026	SEC enforcement announcement
BlackRock HLEND Gating	Mar 11, 2026	Q1 2026	Regulatory filings
Goldman GSCP Redemption Data	Q2 2026	Q2 2026	Investor reports
BofA Semi-Liquid BDC Outlook	Jul 2026	Q2 2026	BofA Global Research
MFIC Q2 2026 Earnings	Aug 6, 2026	Q2 2026	Link
OBDC Q2 2026 Earnings	Aug 5, 2026	Q2 2026	Link
OBDC Q2 2026 Deep Dive	Aug 8, 2026	Q2 2026	Link
ARCC Q2 2026 Earnings	Jul 29, 2026	Q2 2026	Link
BXSL Q2 2026 Earnings	Aug 6, 2026	Q2 2026	Link
FSK Q2 2026 Earnings	Aug 6, 2026	Q2 2026	Link

Footnotes

[^1]: PitchBook/LCD Q1 2026 — "BDC PIK interest income declined to 7.8% of total interest, down from 8.5% in Q1 2025"

[^2]: Cliffwater BDC Data (July 2026) — Non-accrual rates analysis across tracked BDCs; industry average ticked up to 4.2% at cost from 3.8% in Q4 2025

[^3]: KBRA BDC Ratings Compendium Q1 2026 — Industry aggregate metrics; yields compressed to ~9.3%; unrealized losses rising to 1.5% LTM

[^4]: ARCC Q1 2026 Earnings (Apr 29, 2026) — Core EPS $0.47; NAV $20.06 (record); 9.6% annualized ROE; non-accrual 2.1% cost / 1.3% FV; Q2 2026 scheduled July 29, 2026

[^5]: BCRED Shareholder Letter (May 2026) — Non-accrual 0.6%; $82B investments; 0.7x debt/equity; $47.6B NAV; 9.7% distribution; Q1 capital activity $1.9B inflows, $3.2B repurchases (all met); $400M Blackstone injection; July distribution cut 10% to $0.18

[^6]: BXSL Q1 2026 Earnings (May 7, 2026) — Non-accrual 4.7% cost / 3.1% FMV (up from 0.6%/0.4%); NAV $26.26 (down 2.5% QoQ); leverage 1.30x; EPS $0.77; ACI, Medallia, Paramount placed on non-accrual

[^7]: FSK Q1 2026 Earnings (May 11, 2026) — EPS $0.41 (miss by $0.06); revenue $304M (-24% Y/Y); non-accrual 8.1% cost / 4.2% FV; NAV $18.83 (down 9.9%); KKR rescue $150M preferred + $150M tender + $300M buyback + 50% fee waiver; JPM cut facility $648M; Q2 2026 scheduled August 6, 2026

[^8]: MFIC Q1 2026 Earnings (May 8, 2026) — NII $0.38/share (beat); GAAP net loss $0.30/share; NAV $13.82 (down 2.5%); leverage 1.55x; 99% first lien; $76M buybacks; Apollo exploring sale; Q2 2026 scheduled August 10, 2026

[^9]: OBDC Q1 2026 Earnings (May 7, 2026) — EPS $0.31 (miss by 11%); non-accrual 2.3% cost / 1.1% FV; NAV $14.41 (down 2.7%); dividend cut 16% to $0.31; $300M buyback; redemptions permanently suspended Feb 2026; Q2 2026 scheduled August 5, 2026

[^10]: Apollo Debt Solutions — DBRS Rating Report Jun 2025 (BBB upgrade); 0.58x leverage; 0.71% non-accrual; 1.4% PIK (lowest). Q2 2026: $25.9B AUM, gross outflows $400M, gated Mar 23 2026, SEC valuation exam Jun 24 2026, $400M fraud write-down at MFS subsidiary

[^11]: Blue Owl Redemption Policy (Feb 19, 2026) — OBDC II quarterly redemptions suspended after 6% cap breach in Q3 2025. OTIC and OCIC gated April 2, 2026. OTIC permanently ended redemptions end of March 2026. $5.4B total Q1 requests across both funds.

[^12]: BCRED Q1 2026 Shareholder Event (May 2026) — Highlights high current income, senior secured positioning, robust liquidity. $400M Blackstone injection for Q2 redemptions. July distribution cut 10%.

[^13]: Industry Note (July 2026) — Private BDC gating crisis: $10B+ unfulfilled across 6 major funds; only 38% of requests honored; BlackRock HLEND gated Mar 11 2026; Goldman GSCP only peer below gate at 4.999%

[^14]: BofA Global Research (July 2026) — Semi-liquid BDC outlook: redemptions to peak Q2, elevated Q3, fall below Q1 in Q4 but stay above 5% all year; $530B global semi-liquid AUM

[^15]: SEC Enforcement (June 24, 2026) — Valuation and disclosure exam initiated for Apollo Debt Solutions; fiduciary duty probe across semi-liquid BDC sector

[^16]: KBRA BDC Ratings Q1 2026 (May 2026) — Industry weighted average yield compressed to 9.3%; leverage rising to 1.21x; realized losses 2.5% LTM

[^17]: PitchBook BDC Data (Q1 2026) — Non-accrual 4.2% at cost; FSK 8.1%, BXSL 4.7%, MFIC ~5.3% showing significant deterioration

[^18]: Ares Strategic Income — Moody's negative watch; gated Feb 2026; Q1 requests 11.6%, Q2 requests 14.4%; $1.4B+ unfulfilled; $21.5B AUM

[^19]: BlackRock HLEND — Gated March 11, 2026; $26B fund; 9.3% redemption requests; systemic contagion trigger

[^20]: Goldman GSCP — Only major semi-liquid BDC below gate at 4.999% Q2 2026; fully met all requests; 80%+ institutional investor base

[^21]: ARCC Q2 2026 Earnings (Jul 29, 2026) — Core EPS $0.47 stable; NAV $19.35 (down 3.5% QoQ); non-accrual 2.4% cost / 1.4% FV; 619 portfolio companies; $29.3B FV; $0.48 dividend maintained; $6B liquidity

[^22]: BXSL Q2 2026 Earnings (Aug 6, 2026) — NII $0.75/share; NAV $25.53 (down 2.8%); non-accrual improved to 3.6% cost / 1.8% FV; no new non-accruals; repayments >$700M; $13.4B FV; 313 companies

[^23]: FSK Q2 2026 Earnings (Aug 6, 2026) — NII $0.44/share; NAV $18.30 (down 2.8%); non-accrual improved to 7.1% cost / 3.8% FV; leverage reduced to 122%; $36M post-Q2 buybacks; portfolio intentionally shrinking ($590M purchases vs $1.33B repayments)

[^24]: MFIC Q2 2026 Earnings (Aug 6, 2026) — NII $0.40/share (beat); NAV $13.37 (down 3.2%); non-accrual 2.8% FV (improved); $31.9M buybacks; ChyronHego $21.5M loss; 229 companies; $2.77B FV

[^25]: OBDC Q2 2026 Earnings (Aug 5, 2026) — Adjusted NII $0.34 (beat); NAV $14.26 (down 1.0%); non-accrual 2.8% cost / 0.8% FV; leverage 1.11x (lowest in 2 years); $0.31 base + $0.02 supplemental dividend; $35M buybacks; $3.5B liquidity

*Report updated with Q2 2026 data for all major public BDCs. Table 2 updated with Q2 metrics. Credit Quality Rankings refreshed with Q2 results. Key Updates section revised for all BDCs. Next scheduled update: September 14, 2026.*