New BDCs Launch IPOs Amid Strong Market, While Top Players Post Healthy Earnings
• New BDCs recently launched IPOs, including Blue Owl (OBDE), Palmer Square (PSBD), Nuveen (NCDL), and Morgan Stanley (MSDL). OBDE looks most compelling currently.
• Ares Capital (ARCC) and Golub Capital (GBDC) posted strong Q4 earnings results, with rising NAVs and total returns.
• The wave of new BDC IPOs provides liquidity for existing shareholders and arises from current strength in equity markets.
• We downsized our ARCC position on its peak as it may issue new shares, which typically drops the price 3-5%.
• We will add the new BDCs to our Systematic Income BDC Tool for analysis alongside existing names.