Daily Analytic: First-lien share of BDC portfolios continues to climb

The first-lien share of BDC portfolios continues to edge higher, climbing to 86.4% in 1Q25, up 4 percentage points from a year earlier and 8 percentage points two years ago. The second-lien share has been on a downward trend, falling to 2.8% in the most recent quarter, down 2 percentage points in the last 12 months and 5 percentage points in the last 2 years. The share of equities is now at 7.1%, down from 8.9% a year-ago. At the industry level, the technology sector accounts for 20.4% of BDC portfolios, followed by services at 17.1% and healthcare at 17%. On a dollar basis, technology investments held by BDCs total roughly US$92bn, up from US$88bn in the prior quarter and US$68.71bn in the year-ago period.