OFS Capital

What OFS Capital does

OFS Capital Corporation (NASDAQ: OFS) is a publicly traded Business Development Company (BDC) externally managed by OFS Capital Management, a subsidiary of Orchard First Source Asset Management. Founded circa 1999-2001 and headquartered in Chicago with additional offices in New York and Los Angeles, the company invests primarily in senior secured, floating-rate loans to US-based middle-market borrowers. Target companies have $5-50 million in EBITDA, with individual investment sizes ranging from $5 million to $35 million per transaction supplemented by co-investment partners.

The core product set includes senior secured loans, unitranche loans, subordinated loans, and selective minority equity co-investments. These are deployed across transaction structures including recapitalizations, management buyouts/leveraged buyouts, acquisition financing, growth capital, refinancings, and ESOP transactions. The investment process follows a standard sourcing, screening, due diligence, approval, and servicing workflow, with no proprietary technology platform disclosed. The competitive differentiator rests on the adviser team's 25+ years of leveraged loan market experience and established intermediary/sponsor relationships rather than on technology or data advantages.

OFS Capital earns revenue primarily through interest income, fees, and capital appreciation on its debt and equity investments. As a BDC, it must distribute at least 90% of taxable income to shareholders, and currently declares a $0.17 quarterly cash distribution (approximately 18-19% annualized yield). Recent operating performance shows meaningful pressure: NAV per share declined from $10.17 to $8.16 across late 2025 and early 2026, with $12.8M and $9.4M in unrealized depreciation on investments in Q4 2025 and Q1 2026 respectively, driving net losses per share. The company's market capitalization is approximately $42.61 million as of March 2026.

Name

OFS Capital

Legal name

OFS Capital Corporation

Website

https://ofscapital.com

Company type

Public

Founded year

1999

Operating status

Operating

Headcount range

51–100 employees

Short description

OFS Capital Corporation (NASDAQ: OFS) is a publicly traded Business Development Company that invests primarily in senior secured, floating-rate loans to US-based middle-market companies with $5-50 million EBITDA, deploying $5-35 million per transaction. The company is externally managed by OFS Capital Management.

Ownership category

akta.pro rank

Product category

Middle-Market Business Development Company (BDC) Lending

NAICS

Other Financial Vehicles (525990), Open-End Investment Funds (525910)

SIC

Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

BDC / Public Vehicle Venture Debt Providers (FSANAIAC)

Keywords

• Middle market lending
• Business development company
• Senior secured loans
• Direct lending
• Leveraged finance

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Others, Technology or R&D

Distribution channels1 record

Marketing channels4 records

Core offering

OFS Capital Corporation is a publicly traded Business Development Company (BDC) that primarily invests in senior secured, floating rate loans to US-based middle-market borrowers. It delivers capital through senior secured loans, unitranche loans, subordinated loans, and selective equity co-investments, deployed across recapitalizations, management/leveraged buyouts, acquisition financings, growth capital, refinancings, and ESOP transactions. Investment sizes range from $5 million to $35 million per transaction, with additional capacity from co-investment partners.

Product overview

OFS Capital Corporation operates as a single, unified business development company (BDC) offering flexible capital solutions to middle market companies. The core product portfolio centers on senior secured floating rate loans, supplemented by unitranche loans, subordinated loans, and selective equity co-investments. These products are offered through various transaction structures including recapitalizations, management buyouts (MBO/LBO), acquisition financing, growth capital investments, and refinancing. The investment size ranges from $5 million to $35 million per transaction, targeting companies with $5-50 million EBITDA. The company primarily focuses on debt investments in senior secured positions, with equity investments made selectively when strong opportunities are identified.

Differentiator

Problem solved

Functional benefit

Products and services

• Senior Secured Loans Floating rate senior secured loans to US-based middle market borrowers, providing downside protection through senior position in the capital structure.
• Unitranche Loans Combined senior and subordinated debt financing structured as a single loan, offering simplified capital structure for borrowers.
• Subordinated Loans Subordinated debt financing positioned below senior secured loans in the capital structure, providing higher potential yield for higher risk exposure.
• Equity Co-Investments Selective minority equity investments made alongside senior secured loans when strong opportunities are identified, typically with private equity-backed companies.
• Recapitalization Financing Capital solutions for existing portfolio companies or sponsors looking to restructure their capital stack, often providing liquidity to existing owners.
• Management Buyout (MBO/LBO) Financing Financing solutions supporting management teams or financial sponsors in acquiring companies through leveraged buyout transactions.
• Acquisition Financing Capital solutions designed to fund acquisitions of companies, providing buyers with debt financing to complete transactions.
• Growth Capital Investments Financing for companies seeking capital to fund expansion, strategic initiatives, or organic growth opportunities.
• Refinancing Debt restructuring solutions allowing companies to replace existing indebtedness with new financing terms.
• ESOP Financing Capital solutions for Employee Stock Ownership Plan transactions enabling ownership transitions to employees.

Quantifiable outcome

• $5 million to $35 million investment sizes per transaction
• +2 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators5 records

Recent moves6 records

Expansion highlights3 records

Direct peers

• BlackRock TCP Capital Corp: Publicly traded BDC (NASDAQ: TCPC) investing in senior secured loans and subordinated debt to middle-market companies. Comparable in product mix, target company profile, and floating-rate orientation.
• Hercules Capital: Publicly traded specialty finance company (NYSE: HTGC) that provides senior secured loans to venture growth and middle-market companies. Comparable in BDC structure and senior secured floating-rate lending approach.
• Golub Capital BDC: Publicly traded BDC (NASDAQ: GBDC) focused on senior secured, floating-rate one-stop loans to US middle-market companies. Highly comparable in product mix (one-stop/unitranche), sponsor orientation, and middle-market focus.
• Main Street Capital Corporation: Publicly traded BDC (NYSE: MAIN) providing senior debt, junior debt, and equity capital to lower middle-market companies. Comparable in its focus on sponsor and non-sponsor middle-market lending with a similar $5M-$50M EBITDA target range.
• Saratoga Investment Corp: Publicly traded BDC (NYSE: SAR) providing senior secured loans and select equity co-investments to US middle-market companies, including sponsor-backed situations. Comparable in scale, product mix, and middle-market focus.
• FS KKR Capital Corp: Publicly traded BDC (NYSE: FSK) that invests primarily in senior secured loans to US middle-market borrowers, sponsored by FS Investments and KKR. Direct competitor in middle-market sponsor lending with similar floating-rate, senior-secured orientation.
• Ares Capital Corporation: The largest publicly traded BDC (NASDAQ: ARCC), also investing primarily in senior secured loans to US middle-market companies sponsored by private equity. Direct competitor for sponsor-driven direct lending mandates and the natural benchmark for OFS Capital's strategy and scale.
• PennantPark Floating Rate Capital: Publicly traded BDC (NYSE: PFLT) that primarily invests in senior secured, floating-rate loans to middle-market private-equity-sponsored companies. Closely comparable in mandate, floating-rate focus, and middle-market orientation.
• Sixth Street Specialty Lending: Publicly traded BDC (NYSE: TSLX) that originates senior secured loans to US middle-market companies, often sponsored by private equity. Directly comparable in check size, sponsor orientation, and floating-rate senior lending strategy.
• Oaktree Specialty Lending Corporation: Publicly traded BDC (NASDAQ: OCSL) managed by Oaktree Capital that focuses on senior secured loans to US middle-market companies. Highly comparable strategy and sponsor-driven deal sourcing.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about OFS Capital