Chicago Atlantic BDC: An Outlier In The BDC Sector
LIEN reported strong Q1 earnings, with a portfolio fair value of $364M across 40 companies. I see steady NAV per share growth projected through Q1 2026, reaching $13.33. LIEN offers a compelling dividend yield of approximately 13.8% based on the latest $0.34/share distribution.
A Major Catalyst Is Emerging For BDCs That The Market Is Completely Missing
The BDC sector has been hit hard since July 2025. However, I think the tide may be about to turn with a bright future ahead for some companies in the sector. I share which BDC names I think are poised to outperform moving forward.
Trinity Capital: A Safe Heaven BDC With A 12% Yield
Trinity Capital (TRIN) delivered solid Q1'26 results, with robust portfolio growth despite sector headwinds. TRIN's portfolio value surged 39% year-over-year, driving 38% Y/Y growth in total investment income and maintaining healthy dividend coverage at 103.9%. Despite a slight rise in non-accruals to 1.1%, TRIN's credit profile remains solid, and the $0.51 per-share quarterly dividend is fully supported by net investment income.
Chicago Atlantic BDC, Inc. (LIEN) Q1 2026 Earnings Call Transcript
Chicago Atlantic BDC, Inc. (LIEN) Q1 2026 Earnings Call Transcript
Chicago Atlantic BDC, Inc. (LIEN) Q1 Earnings and Revenues Top Estimates
Chicago Atlantic BDC, Inc. (LIEN) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to a loss of $0.34 per share a year ago.
Kayne Anderson BDC: My Largest Externally Managed BDC Delivered Again
Kayne Anderson BDC remains my high conviction externally managed BDC pick, with significant personal exposure and ongoing dividend reinvestment. KBDC has maintained a stable dividend and resilient NAV per share, outperforming many BDC peers despite sector-wide pressures. The company's limited SaaS exposure and strong fundamentals have driven recent alpha performance relative to the BDC index.
OTF: The Biggest BDC Bargain
Blue Owl Technology Finance Corp. (OTF) has experienced a market decline far exceeding its BDC peers, despite resilient fundamentals. I view OTF as the most compelling bargain in the externally managed BDC space, given the divergence between price action and underlying performance. Recent Q1 2026 results reinforce my conviction, prompting me to make OTF one of my largest externally managed BDC holdings.
Goldman Sachs BDC Q1 Earnings Call Highlights
Goldman Sachs BDC NYSE: GSBD reported a decline in first-quarter net asset value and lower net investment income as unrealized losses increased and credit issues remained concentrated in older investments originated before the business development company's integration into Goldman Sachs' broader direct lending platform.
Barings BDC Shareholders Reelect Three Directors at 2026 Annual Meeting
Barings Bdc NYSE: BBDC held its 2026 Annual Meeting of Stockholders virtually on May 7, with shareholders voting to reelect three Class II directors to the company's board.
BDC NAVs Are Down; Don't Panic Sell
BDC sector Q1 2026 earnings reveal widespread NAV contractions, impacting both discounted and premium BDCs. Despite NAV declines and negative price reactions, these adjustments are logical and not a signal to exit the BDC space. Price-to-NAV ratios remain attractive, with several BDCs trading at significant discounts post-earnings.
Golub BDC: I'm Holding Despite Rising Non-Accruals
Golub Capital BDC's portfolio has some weaknesses and sector risks, but I trust management's strong track record, especially in software lending. Non-accruals and underperforming assets have risen, with 2.2% of investments materially below expectations and spreads continuing to compress. Dividend coverage is tight. NII barely covers payouts, and another dividend cut may be possible if trends persist.
Ares Capital: Double-Digit Yield From A Gold Standard BDC
Ares Capital is the largest investment-grade BDC, offering a 10% yield and a robust dividend buffer via $1.38 per share spillover income. ARCC's portfolio remains high-quality and diversified, with software exposure well-monitored; there is only 1 non-accrual in the sector and minimal AI disruption risk. At $18.67, the company trades at a 4.7% discount to NAV and 8.5x NII, near fair value but attractive for income-focused investors.
