Cox Capital Partners Launches Pilot Lending Program for Non-Traded BDC Shareholders

Pilot will let eligible shareholders with large positions borrow against their holdings while continuing to seek repurchases at Net Asset Value.

CONSHOHOCKEN, Pa., October 23, 2026--Cox Capital Partners ("Cox Capital"), a provider of secondary liquidity solutions for retail private market investors, today announced a pilot lending program designed to give eligible shareholders of non-traded business development companies (BDCs) access to cash while they continue to seek repurchases at Net Asset Value (NAV).

The pilot, the first of its kind in the secondaries market, is designed to allow eligible investors to borrow up to 65% of their holdings' NAV, with loans expected to carry a fixed interest rate. Cox Capital will manage the process of submitting these shares for repurchase through the underlying fund's regular redemption process. Proceeds from share repurchases at NAV will be applied toward repayment of the loan, and any distributions exceeding interest obligations will be returned to the shareholder.

The initial pilot is designed to target the largest shareholders, with positions of $1 million or more in non-traded BDCs managing more than $1 billion in assets. Positions of that size are a small fraction of shareholder accounts, typically around 1% to 5%. Cox Capital's tender offers remain the primary liquidity option for the large majority of shareholders, and the lending program is designed to complement them.

The pilot complements Cox Capital's existing secondary liquidity solutions. Over the past six years, Cox Capital has built a platform for sourcing and executing secondary liquidity transactions for retail investors in non‑traded BDCs and other illiquid vehicles, working with financial advisors and intermediaries across independent broker‑dealers, RIAs, and major wirehouses. Cox Capital structures its tender offers at varying discounts to NAV, with pricing determined by several factors, including investor demand for secondary liquidity, prevailing market conditions, and the underlying risk characteristics of each fund. These considerations allow the firm to establish purchase prices that reflect the distinct investment profiles, liquidity constraints, and market dynamics affecting individual funds.

The lending program gives eligible shareholders another option when they need cash but face limits on how much they can redeem through their fund's periodic repurchase programs.

"Some shareholders need to exit immediately and are willing to accept our bid. Others would prefer to borrow against their investments while continuing to seek redemptions at NAV," said John Cox, CEO of Cox Capital Partners. "Our goal is to serve both groups. A seller pays a discount, a borrower pays a rate, and the investor decides how and when to access their capital."