Looking at the 12 largest BDCs that offer investors the ability to redeem shares on a quarterly basis, redemption requests continued to exceed the typical 5% quarterly limit at most funds. In the latest quarter, 9 of the 12 BDCs in this group reported requests above that threshold. Redemption request activity also varied significantly across managers, ranging from 3.2% to 38.1% of outstanding shares in 2Q26, with an average of 13% and a median of 11.2%.
Directionally, however, the latest quarter showed some signs of stabilization. While investor concerns around private credit valuations—and the potential impact of AI on software companies in particular—remain, redemption pressure eased at a number of funds. After surging in 1Q26, when every BDC in the cohort reported a meaningful increase in redemption requests, the trend was evenly split in 2Q26: 6 of the 12 largest perpetual-life BDCs saw requests decline, while 6 reported a further increase.
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.