{
  "id": 13121477,
  "title": "Private credit managers explore BDC sales as industry consolidation gathers pace",
  "url": "https://urgent.news/2026/10/09/private-credit-managers-explore-bdc-sales-as-industry-consolidation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T12:48:45.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/private-credit-managers-explore-bdc-sales-as-industry-consolidation-gathers-pace/"
  },
  "original_language": "en",
  "account": "Private credit managers are examining the possibility of selling publicly traded business development companies (BDCs) to capitalize on consolidation within the $1.8tn sector, according to Bloomberg. Several firms, including Ares Management, Barings, BC Partners, and Churchill Asset Management, have probed potential deals involving troubled funds in recent months. These discussions, however, are still in their preliminary stages and might not culminate in actual transactions. The surge in interest is attributed to the challenging environment for private credit, marked by substantial withdrawals from non-traded funds and declining share prices of listed vehicles. Multiple publicly traded BDCs, such as BlackRock’s TCP Capital, WhiteHorse Finance, and Investcorp Credit Management BDC, have disclosed that they are evaluating strategic options, such as a potential sale. Apollo Global Management’s MidCap Financial Investment is also exploring its portfolio options, as per sources familiar with the matter. BDCs have historically been appealing to private credit managers due to their favorable fee structures and access to permanent capital. However, recent performance deterioration and limited growth potential have shifted this dynamic for certain firms. When a listed BDC trades below its net asset value, it encounters difficulties in raising new equity, which hinders its capacity for expansion. Coupled with weaker direct lending activity, this scenario can leave managers with underperforming portfolios and fewer avenues to enhance returns. Potential transactions could involve various arrangements, such as mergers, acquisition of fund management contracts, or purchases of portfolio assets. Asset sales could enable a manager to transfer the remaining investments to an associated entity or return capital to shareholders. Additionally, for large alternative asset managers, divesting a relatively small, struggling fund can free up resources and management attention for broader strategic priorities, including the pursuit of retirement savings markets. These potential sales align with a broader trend of consolidation in direct lending. Firms such as Ares and Blackstone have expanded their BDC platforms through acquisitions, while BC Partners has also merged publicly traded funds. In March, BC Partners CEO Ted Goldthorpe stated that merging two of its publicly traded funds had bolstered scale and enhanced portfolio diversification. For buyers, purchasing an existing vehicle presents a potentially expedited path to scaling lending operations and augmenting fee-generating assets. Such transactions can also offer access to permanent capital or provide liquidity options for investors in existing private credit funds.",
  "summary": "Private credit managers are considering selling publicly traded business development companies (BDCs), creating potential acquisition opportunities for rivals seeking to expand their AUM as the $1.8tn market faces mounting pressure, according to a report by Bloomberg.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}