Shares of US-listed business development companies (BDCs) fell on Monday, as investor concerns over exposure to the software sector weighed on the group. Blue Owl Capital Corp’s stock closed down more than 4%, hitting its lowest level since October 2022, according to a report by Bloomberg.
Other lenders were also under pressure. Ares Capital Corp ended the session down 1.9%, while shares in Trinity Capital and Sixth Street Specialty Lending both fell close to 3% before paring some previous losses. The sell-off reflects broader anxiety around software, a sector facing valuation pressure amid accelerating adoption of artificial intelligence.
Barclays analysts said software represents the largest sector exposure for BDC portfolios, accounting for around 20% of assets, or roughly $100bn as of the third quarter of last year, citing PitchBook data. Declines in tech valuations have raised concerns over loan-to-value ratios, particularly for loans originated during the period of high tech valuations between 2019 and 2023.
