Non-Traded BDCs Continue to Slump in April
Sales of non-traded business development companies continued to trend downward in April, albeit slightly, according to data compiled by Robert A. Stanger & Co.
The declining sales of non-traded products likely stemmed, at least partially, from the uncertainty of the now released fiduciary rule issued by the Department of Labor, as well as FINRA 15-02, which went effective in April.
During the month, equity raising for BDCs topped $126 million, down 3.7 percent from March, when sales totaled of $130.9 million.
BDC sales for April 2016 are down 65.7 percent year-over-year, given that last year’s sales topped $367 million.
Year-to-date, non-traded BDCs have raised a total of $598.7 million, a 60.7 percent drop compared to the same period in 2015.
Franklin Square’s Energy and Power Fund was the top selling equity raising program in April by a landslide with $48.6 million in sales. Sierra Income Corporation came in second with $19.6 million in sales for the month. Franklin Square’s Investment Corp IV took the bronze with $13.9 million. W.P. Carey’s Carey Credit Income Fund 2016 T came in fourth place with a raise of $10.4 million, followed closely by Hines’ HMS Income Fund which placed fifth with $9.5 million in sales.
