Octus’ BDC Weekly Roundup: BDCs Tap Secondary Market; Blackstone, BlackRock Emerge as Conservative in Octus’ Stressed Club Deal Analysis; Redemption Requests Continue

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Editor’s Note: Below is a weekly roundup of business development company, or BDC, articles available to Private Credit and Deal Origination subscribers. To get access to any of the below, please reach out to [email protected]. Octus’ BDC Analyst team has published a series of articles covering BDC quarterly earnings, sector-level stressed watchlists and proprietary analysis built on top of the BDC data that Octus extracts from more than 160 private and public BDCs. Octus’ full Private Credit product suite includes deal origination and private credit coverage, BDC and Private Credit Data, Private Credit Fundamentals, Deal Term Analytics and Covenants analysis.

Quarterly Fair Value Change Report – Octus highlighted 88 loans in which BDC managers lowered fair value as a percent of par by at least 15 points sequentially as of Dec. 31, 2025. Subscribers can download the list of loans which includes other lenders and sponsors. Sectors highlighted include construction and building, clinical healthcare, logistics and packaging.

BDC Pricing Comparison Across Widely Held Stressed Loans – Octus’ analysis of widely held stressed direct loans indicates wide dispersion of pricing, as measured by fair value divided by par, by BDC managers; differences in pricing from lowest to highest total up to approximately 40 points. BDCs managed by Blackstone and BlackRock tend to have the lowest prices on average in their respective stressed club deals. FS KKR exhibited the highest pricing on average across the widely held stressed loans contained in its portfolio, followed to a lesser extent by BDCs managed by Blue Owl.

Increased Secondary Market Activity – Octus’ private credit journalists discussed the increased activity in the secondary market for private credit loans, citing a number of managers listing or gauging interest from potential investors for direct loan holdings.

Octus has been tracking redemption requests by shareholders of non-traded BDCs. Although most funds have capped recent quarterly redemption requests at 5% of total shares outstanding, actual requests have far exceeded the caps for many BDCs. Results by BDC for a sample of the largest funds are shown below, along with results dating back to the first quarter of 2025.

Blue Owl Technology Income Fund and Blue Owl Credit Income Corp.: Redemption requests for the two Blue Owl managed BDCs were unusually large, with 40.7% of shares in the technology fund requesting tenders and 21.9% of shares in the income fund requesting tenders. Both BDCs repurchased 5% of shares, capping requests.

KKR FS Income Trust received tender requests for 6.3% of outstanding shares, but the BDC also limited requests to just 5% and added that gross subscription inflows exceeded repurchase requests during the first quarter.

John Hancock Comvest Private Income Fund: Bucking the trend of redemption requests exceeding quarterly limits, John Hancock Comvest Private Income Fund reported that no shares were tendered as of the March 24 expiration date.