Redemption requests among perpetual-life nontraded business development companies (BDCs) declined in the third quarter of 2026 but remained elevated, according to findings from Fitch Ratings reported on October 13.
Across 13 of the 15 perpetual-life nontraded BDCs included in the report, redemption requests averaged 9.8% of shares in the third quarter, compared with 10.3% in the second quarter. The latest figure remains nearly twice the commonly applied 5% quarterly repurchase limit.
Why We’re Watching
Although redemption demand has moderated, requests remain substantially above typical quarterly repurchase limits. For advisors, the findings reinforce the importance of understanding fund liquidity provisions, potential repurchase proration, and how redemption activity may affect clients seeking access to capital.
Original Source:
InvestmentNews — October 13, 2026: Nontraded BDC Redemption Requests Remain Significant
