BDC Facts & Stats | 3 
 
The increasing institutionalization of the BDC market is also reflected in the growing use of joint 
ventures (“JVs”) with institutional investors.  For example, FS KKR Capital Corp. has a JV with 
the South Carolina Retirement Systems Group Trust, while Blackstone Private Credit Fund has 
JVs with a large North American pension fund and an alternative credit manager.  These 
arrangements allow sponsors to combine BDC capital with additional institutional capital and 
expand their ability to deploy capital across private credit strategies. 
 
Sponsors increasingly are evaluating the appropriate BDC structure based on the target investor 
base, desired liquidity profile, distribution channel, portfolio strategy and capital-raising 
objectives.  Public BDCs offer daily liquidity and access to the public markets but remain subject 
to market price volatility and premiums or discounts to NAV.  Private BDCs can provide greater 
stability of capital and avoid exchange-trading volatility but generally offer substantially more 
limited investor liquidity.  Non-traded BDCs occupy a middle ground, combining registered 
securities and broader distribution potential with periodic rather than daily liquidity. 
 
As these structures increasingly compete for institutional and wealth management capital, the 
ability to offer differentiated share classes, manage liquidity and efficiently allocate investments 
across affiliated vehicles will become increasingly important.  For investors, understanding the 
BDC itself may no longer be sufficient.  The broader sponsor platform, including affiliated funds, 
co-investment vehicles and JVs, can provide important insight into capital resources, investment 
allocation and portfolio exposure. 
 
Looking ahead, the BDC market is likely to be shaped by both continued growth in private credit 
and the industry’s increasing institutionalization.  Regulatory modernization may facilitate more 
efficient capital raising, co-investment and distribution, while evolving wealth-management 
channels may broaden access to BDCs and other permanent capital vehicles.  At the same time, 
the increasing scale of private credit will place greater emphasis on underwriting discipline, 
portfolio diversification, valuation methodologies, liquidity management and conflicts procedures.  
For sponsors, the competitive advantage increasingly may lie not simply in raising capital but in 
developing BDC structures that can efficiently deploy and retain capital while providing investors 
with an appropriate combination of yield, liquidity, transparency and alignment of interests. 
 
We hope you find our updated BDC Facts & Stats helpful.  
 
Additional information regarding our practice and resources can be found at the end of the 
materials.

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