PitchBook’s latest report dives into public business development companies, spotlighting sector focus, valuation, and leverage. Analysts Kenny Tang, Sebastian Kian, and Armando Di Cecco map portfolio overlap, revealing how top BDCs expose investors to the same borrowers. The resulting matrix lays out net asset value concentrations and shared holdings in a clear visual format today.

The grid shows that Morgan Stanley Direct Lending Fund shares over 30 % of its net asset value with Golub Capital BDC, while two‑thirds of Morgan Stanley’s exposure stems from companies also held by other top ten BDCs. Software accounts for roughly a quarter of headline exposure, underscoring concentrated credit risk across the sector for investors worldwide.

To visualize overlap, the team built a Venn diagram of the six largest BDCs, regardless of public status. Clicking a circle reveals a treemap of that fund’s holdings; the red intersection shows 126 common companies. Hovering over the center highlights the seven firms shared by all six, demonstrating limited diversification benefits for portfolio managers.

The findings warn that a single credit event can ripple through multiple BDC portfolios, eroding perceived diversification. With software exposure high and non‑accrual stress rising, investors face tighter spreads and lower yields. The PitchBook study therefore offers a sobering view of risk concentrations that could reshape strategies for BDC investors and lenders alike in the market.