Davis Polk partner Chris Healey discussed private credit firms’ increasing interest in acquisitions, sales and other transactions involving business development companies (BDCs) with Bloomberg.  

The article noted that private credit firms are considering a range of deals involving publicly traded BDCs, including mergers, acquisitions, and asset purchases, as investors have turned away from the asset class and direct lending volume has contracted.

“As a general matter, there’s nothing new about the idea that smaller BDCs can start to become merger targets,” Chris said, adding that he wouldn’t be surprised if more funds with less than $1 billion in investments started to think about selling.

Discussing the benefits of buying BDCs, Chris noted, “The marketplace for these transactions is really robust and despite some of the retail pullback, we’re seeing that there is still an appetite to acquire BDCs and grow assets there.”

“Private Credit Firms See Rare Growth Shortcut With BDCs for Sale,” Bloomberg (October 8, 2026) (subscription required)

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