OFSNot HalalF
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Compliance Status

Not Halal

Screened on Oct 10, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is OFS Capital Corporation (OFS) halal? Not Halal. Based on AAOIFI screening, OFS Capital Corporation has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

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HalalScreener rates OFS Capital Corporation (OFS) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 10, 2026. Source: https://halalscreener.app/en/stock/OFS

Business activity

Involved in prohibited business activities.

Failed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

450.5% of 30.0% limit
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The verdict above is final and free.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding OFS

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

OFS Capital Corporation

OFS: Is OFS Capital Corporation Halal?

OFS Capital Corporation

NASDAQFinancial ServicesUS

$4.11

Market Cap: 55.1M

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About OFS Capital Corporation

OFS Capital Corporation functions as a business development company, delivering adaptable capital solutions, predominantly through debt financing and, to a lesser degree, minority equity investments. The firm concentrates on U.S.-based middle-market enterprises across a wide spectrum of sectors, deliberately avoiding investments in operational turnarounds or nascent businesses. Its investment approach encompasses direct funding, participating in funds, and facilitating add-on acquisitions. Within its direct investment strategy, OFS Capital provides expertise in various financial structures, including debt and structured equity, recapitalizations, refinancing operations, management and leveraged buyouts, acquisition funding, events for shareholder liquidity, and growth capital. It also supports independent sponsor transactions, Employee Stock Ownership Plans (ESOPs), and minority investments in lower middle-market companies. Targeted industries include aerospace and defense, business services, consumer products and services, food and beverage, healthcare services, specialty chemicals, transportation and logistics, value-added distribution, franchising, and niche industrial manufacturing. The firm seeks out U.S.-based companies that generate revenues between $10 million and $200 million, have an annual EBITDA exceeding $5 million, and possess an enterprise value from $10 million to $500 million. Individual investments typically range from $5 million to $35 million, with debt-specific investments falling between $5 million and $25 million. OFS Capital utilizes a diverse set of financial tools, including senior secured loans, unitranche facilities, first-lien and second-lien debt, subordinated or mezzanine loans, warrants, preferred equity securities, and common equity. The company is open to acquiring both minority and majority stakes in its investments and frequently collaborates with co-investors to access additional capital.

Sector: Financial Services · Industry: Asset Management

Why this does not pass

  • Business activity: the company earns from an activity AAOIFI treats as prohibited.
  • Interest-bearing debt is 450.5% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 10, 2026

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Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

  • Prohibited industry: business development company lending to middle-market companies at interest
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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

  1. Not Halalnow

    since Sep 2026

  2. Under Review

    until the change above

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q1 2025Data source: EDGAR

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is OFS Capital Corporation (OFS) halal to invest in?
OFS Capital Corporation (OFS) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did OFS Capital Corporation get a F compliance rating?
OFS Capital Corporation (OFS) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 450.5% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change OFS Capital Corporation's Shariah verdict?
OFS Capital Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is OFS Capital Corporation re-screened for Shariah compliance?
OFS Capital Corporation (OFS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 10, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.