In recent years, private non-bank lending to private equity-owned, small- and middle-market companies has increased significantly. Within this growing sector, private and non-traded BDCs have outperformed other non-bank lenders in many respects. Since 2020, assets under management by private and non-traded BDCs has increased from approximately $34 billion to approximately $118 billion, representing a compounded annual growth rate in excess of 35%. As would be expected given such substantial growth, several new BDCs have recently entered the market, including Ares Strategic Income Fund, a non-traded BDC, in April 2023. Other large and well-known institutional asset managers that have recently entered the BDC market include Blackstone, Angelo Gordon Apollo Global Management and Oak Hill.