BDC Fair Value Rankings Q4 2025

The Business Development Company market has matured into a significant segment of the publicly traded credit universe. With 38 BDCs managing a combined $26.9B in fair value across 23,238 individual positions, the sector provides meaningful exposure to middle-market private credit.

This ranking provides a clear view of relative portfolio size across the BDC universe. The dispersion between the largest and smallest BDCs is significant, with top-tier managers commanding portfolios many multiples larger than their smaller peers. This scale differential has important implications for borrower access, fee efficiency, and portfolio diversification.

We also include a diversification analysis using a modified Herfindahl-Hirschman Index (HHI) to identify which BDCs maintain the most granular borrower exposure. Lower HHI scores indicate greater portfolio diversification, which may provide more resilience during credit stress events.

Scale and Strategy

Portfolio size is not the only metric that matters when evaluating BDCs. The number of distinct borrowers, average position size, and sector diversification all contribute to the risk profile. Larger BDCs typically benefit from better access to deal flow, lower unit costs, and stronger relationships with private equity sponsors who generate much of the middle-market lending opportunity set.

Smaller BDCs may offer more specialized sector focus or geographic concentration that can generate higher yields. However, they also face higher concentration risk and may struggle to compete for the most attractive credits in a competitive market. Understanding where each BDC sits on this spectrum is fundamental to building a well-constructed private credit allocation.