Onex Direct Lending BDC Fund Reports Q2 2026 NAV and Portfolio Update

What Happened

• On July 21, 2026, Onex Direct Lending BDC Fund filed an 8‑K with a Q2 2026 portfolio and business update and disclosure of its June 30, 2026 net asset value (NAV). NAV per share was $17.31 as of June 30, 2026, down from $18.75 on March 31, 2026. The NAV decline was driven primarily by unrealized losses on certain investments. Net investment income for Q2 2026 was $0.49 per share and the declared dividend for the quarter was $0.53 per share (annualized distribution yield of 12.25% based on Q2 NAV).

Key Details

• NAV per share (June 30, 2026): $17.31 (aggregate NAV $146.1 million).
• Portfolio fair value: $287.8 million across 43 companies and 15 industries; unfunded commitments: $15.2 million.
• Portfolio mix: 98% first‑lien debt and 99% floating‑rate investments (by par). One investment on non‑accrual = 3.7% of portfolio (down from 6.5% at March 31, 2026).
• Leverage & liquidity: net leverage ratio 1.04x (within 0.75–1.25x target); asset coverage ratio 190%; remaining facility availability reported as $158.0 million. Gross leverage 1.11x.
• Credit & pricing metrics: weighted average senior leverage at commitment ~5.2x; loan‑to‑value ~44%; weighted average spread ~590 bps (portfolio spread 521 bps). Q2 closed 3 new borrowers and completed 11 exits; 86% of loans priced above $0.85 on the dollar.
• Private Offering: 14,505,946 common shares sold for total consideration of $359.8 million; company plans to continue quarterly share sales.

Why It Matters

• The NAV decline signals unrealized markdowns in a limited number of portfolio companies (about 64% of the gross unrealized losses were tied to four issuers, including three Level 3 valuations). That is the primary driver of the quarter’s negative return (Q2 return -5.1%; YTD -12.3%).
• The fund remains largely first‑lien and floating‑rate, which helps protect income in a rising‑rate environment; leverage is within the stated target range and the fund has facility capacity.
• Investors should note the quarterly dividend ($0.53) slightly exceeded reported net investment income ($0.49) for the quarter, and that NAV and unrealized loss drivers are concentrated in a few positions. The private offering proceeds and available facilities provide liquidity and financing flexibility going forward.