Money Stuff: The Podcast · Friday, August 14, 2026
Boaz Weinstein expresses concern over BDC managers continuing to originate new loans at attractive rates while their own shares trade at significant discounts to NAV. He suggests this behavior is driven by greed, as managers earn fees on NAV and would see their assets under management shrink if they repurchased shares at a discount.
“Now I'm going to paraphrase, if the NAV is right, that's one hundred percent guaranteed return. If the NAV is wrong and it's not, shouldn't be one hundred, it should be an eighty. It's a sixty percent guaranteed return. So any kind of like, wow, I can make a new loan at five hundred over and I can make an eleven percent awesome loan, or it's thirteen percent awesome loan. So what's really going on is you don't want your fund which has a NAV of five point six billion but is trading a two point eight billion. You don't want that five point six to shrink because you're paid fees. By the way, they're paid fees on NAV.”
“So what's really going on is you don't want your fund which has a NAV of five point six billion but is trading a two point eight billion. You don't want that five point six to shrink because you're paid fees. By the way, they're paid fees on NAV.”
“Greed is laid bare.”