Business development companies’ stocks have fallen. Some look attractive for the right type of investor.

MarketWatch

by Philip van Doorn

February 20, 2026

AI-Generated Deep Dive Summary

Business development companies (BDCs) have seen their stock prices decline recently, largely due to concerns sparked by Blue Owl Capital Inc.'s issues with a private BDC, Blue Owl Capital Corp. II. This has led to a broader sell-off in publicly traded BDCs, many of which are now trading at significant discounts to their reported asset valuations. While the situation may seem concerning for investors, it also presents opportunities for those who can look beyond short-term market fluctuations. The confusion surrounding private and public BDCs is worth clarifying. Private BDCs are not required to provide regular financial disclosures, making them inherently less transparent than their publicly traded counterparts. Public BDCs, on the other hand, must adhere to stricter reporting standards, which can make them more predictable for investors seeking stability and income. Despite this, some public BDCs have delivered high returns over time, particularly for those with a long-term commitment. The article highlights that while many BDCs focus on providing high current income, their total returns (which include both price changes and dividends) have sometimes been lackluster or even negative over the long term. However, there are standout performers among public BDCs that have rewarded patient investors with strong income streams and capital gains. These companies often operate in niche markets or have a track record of effective asset management. For investors interested in finance and markets, understanding the nuances between private and public BDCs is crucial. While the recent drop in public BDC stocks may seem alarming, it creates opportunities for those who can identify undervalued assets. For

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Originally published on MarketWatch on 2/20/2026