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Business development companies, listed and non-traded combined, have become one of the primary vehicles for private credit, the part of that market investors can actually buy on an exchange.
This guide covers what a BDC is, how the structure works, and the 10 largest publicly traded BDCs by net assets today.
What Is a BDC?
A BDC is a closed-end investment company Congress created in 1980 through the Small Business Investment Incentive Act, giving small and mid-sized U.S. businesses, often underserved by banks and too small for public bond markets, a channel to capital.
Three rules define the structure. At least 70% of assets must sit in private U.S. operating companies, the SEC's "eligible portfolio company" test. At least 90% of taxable income must be distributed to shareholders to keep the BDC's tax-advantaged RIC status, most pay out closer to 98%. Leverage is capped at a 1:1 debt-to-equity ratio, or 2:1 for BDCs that qualify under the Small Business Credit Availability Act of 2018. Together, these rules make a BDC function less like an operating company and more like a permanent-capital lending vehicle: it raises equity, borrows a bounded amount against it, and recycles interest income back to shareholders as dividends.
Publicly traded BDCs trade daily like any stock, often at a premium or discount to net asset value. Non-traded BDCs offer only periodic redemption windows instead, which insulates reported NAV from daily volatility but concentrates risk if redemption requests outpace what the fund can meet.
Bank retreat from middle-market lending and investor demand for floating-rate yield have driven much of the shift toward BDCs. A 2025 Nuveen survey found 94% of institutional investors now hold private credit allocations, drawn by that yield and by low correlation to public fixed income.
The Top 10 BDCs by Net Assets
Ranked by net assets as of July 2026.
1. Ares Capital Corporation (ARCC)
Overview: Ares Capital is the largest BDC in the U.S. by both net assets and market cap, with approximately $14.1 billion in net assets. Founded in 2004 and externally managed by Ares Management, ARCC lends to U.S. middle-market companies with EBITDA generally between $10 million and $250 million, drawing on the broader Ares platform, over 100 direct-origination officers and relationships with more than 400 financial sponsors, for deal flow.
Focus: Acquisitions, recapitalizations, mezzanine debt, restructurings, and leveraged buyout financing for private middle-market companies across diversified industries.
2. Blue Owl Capital Corporation (OBDC)
Overview: OBDC holds approximately $7.2 billion in net assets and is externally managed by Blue Owl Credit Advisors, part of Blue Owl's Credit platform, which manages roughly $159 billion in assets as of March 2026. The fund focuses on upper-middle-market companies, borrowers with weighted average EBITDA around $239 million, and leans heavily toward senior secured, first-lien positions.
Focus: Direct lending through first lien, second lien, and unitranche loans to sponsor-backed U.S. upper-middle-market companies.
3. Blackstone Secured Lending Fund (BXSL)
Overview: BXSL holds approximately $6.1 billion in net assets and is externally managed by Blackstone Private Credit Strategies. It invests almost exclusively in senior secured debt, with close to 99% of the debt portfolio in floating-rate loans, drawing on Blackstone's origination scale, including large financings tied to AI infrastructure buildouts, and reports one of the lowest non-accrual rates in the sector.
Focus: First lien senior secured and unitranche loans to large middle-market companies, prioritizing defensive, low-leverage credit structures.
4. FS KKR Capital Corp (FSK)
Overview: FSK holds approximately $5.3 billion in net assets and is the product of FS Investments and KKR Credit's direct lending partnership, FS/KKR Advisor, which manages approximately $21 billion in assets across FSK and affiliated vehicles. The fund targets upper-middle-market borrowers with customized, one-stop credit solutions.
Focus: Senior secured debt, second lien loans, subordinated debt, and asset-based finance for private U.S. middle-market companies with EBITDA typically $50 million to $150 million-plus.
5. Golub Capital BDC (GBDC)
Overview: GBDC holds approximately $3.7 billion in net assets and is externally managed by GC Advisors, an affiliate of Golub Capital, whose parent platform oversees more than $90 billion in capital. GBDC invests primarily in "one stop" loans, Golub Capital's term for unitranche facilities that combine first and second lien economics into a single loan, and has one of the longer track records among sponsor-focused middle-market lenders.
Focus: One-stop and other senior secured loans to sponsor-backed U.S. middle-market companies, with selective second lien and minority equity exposure.
Want to see how these 10 stack up in your own coverage universe? Dakota's BDC Holdings module tracks publicly traded BDCs at the loan level, so you can see total exposure and ranked lenders behind any middle-market borrower, not just headline net assets. Explore BDC Holdings in Dakota Marketplace.
6. Main Street Capital Corporation (MAIN)
Overview: Main Street holds approximately $3.1 billion in net assets and is one of the few internally managed BDCs, meaning its investment team is directly employed by the company rather than an external adviser earning management and incentive fees. Its focus on the underserved lower middle market ($10 million to $150 million in revenue) has supported a long record of NAV growth and a monthly dividend with periodic special distributions.
Focus: First lien debt and direct equity co-investment in lower-middle-market companies, plus larger first lien private loan investments.
7. Prospect Capital Corporation (PSEC)
Overview: Prospect holds approximately $3.0 billion in net assets and is externally managed by Prospect Capital Management. It is among the oldest and most diversified BDCs, investing across senior secured loans, controlled private equity stakes, structured credit (CLO equity), and multi-family real estate alongside its core middle-market lending book, broader diversification than most peers.
Focus: Senior secured and mezzanine loans, control equity investments, and structured credit across a wide range of middle-market industries.
8. Hercules Capital (HTGC)
Overview: Hercules holds approximately $2.2 billion in net assets and is internally managed, making it the largest BDC focused specifically on venture debt, structured loans to venture capital and private equity-backed companies in technology, life sciences, and sustainable technology. Since its 2003 inception, Hercules has committed more than $27 billion to over 700 companies, with loans that typically carry warrants for equity-like upside.
Focus: Senior secured venture growth loans, often with warrants, to venture-backed technology, biotech, and life sciences companies from early through late stage.
9. Morgan Stanley Direct Lending Fund (MSDL)
Overview: MSDL holds approximately $1.7 billion in net assets and is a newer entrant relative to peers, externally managed by MS Capital Partners Adviser, a Morgan Stanley subsidiary, and structured to lend to sponsor-backed U.S. middle-market companies. It leans on Morgan Stanley's investment banking and capital markets relationships for deal sourcing, though it is not a subsidiary of or consolidated with Morgan Stanley.
Focus: First and second lien senior secured term loans, including unitranche structures, to private-equity-sponsored U.S. middle-market companies.
10. Sixth Street Specialty Lending (TSLX)
Overview: TSLX holds approximately $1.5 billion in net assets and is externally managed by TSL Advisers, an affiliate of Sixth Street Partners, a global investment firm with a multi-strategy credit platform. Formerly TPG Specialty Lending, it has built a reputation for disciplined underwriting and has generally traded at a premium to NAV.
Focus: Directly originated senior secured loans, with selective mezzanine and equity exposure, to U.S. middle-market companies.
How 13F Holdings Data Reveals Who's Buying BDCs
Because most major BDCs are publicly traded, institutional managers with $100 million or more in equity AUM must disclose their holdings quarterly on Form 13F. Aggregated across thousands of RIAs and institutions, that data turns each BDC's shareholder base into a live signal of who is actively allocating to private credit, and how their conviction is shifting quarter over quarter:
- New position: An institution appears in a BDC's holder list for the first time, a sign it's entering private credit and a high-priority target for any manager actively fundraising.
- Growing position: Shares held increased quarter over quarter, pointing to growing conviction and possible openness to a direct private credit fund alongside the BDC exposure.
- Multi-BDC holder: An institution holds three or more different BDCs, marking it as a dedicated private credit allocator rather than an opportunistic one.
- Concentrated holder: A large share of the portfolio sits in a single BDC, often a sign the holder is using it as a liquid alternatives proxy, and a candidate for a richer private structure.
- Declining or exiting: Shares dropped or a position disappeared entirely, worth understanding whether that reflects a rotation to another manager or a broader pullback from the asset class.
Two caveats worth knowing: 13F data only captures publicly traded equity positions, non-traded BDC holdings, private credit fund commitments, and CLO or credit-sleeve investments don't show up. And it lags roughly 45 days after quarter-end, so it's a directional signal, not a real-time feed. For publicly traded BDCs, though, it's the closest thing available to a live read on institutional appetite for private credit.
About Dakota Marketplace
Dakota Marketplace tracks BDC holdings through its 13F dataset, alongside RIAs and closed-end funds among the largest liquid alternatives investors. Filter by asset class and strategy (direct lending, venture debt, asset-based finance), AUM and vehicle size, public vs. private/non-traded structure, and investment team contacts with direct emails.
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