Is BDC A Good Investment?

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BDCs are high risk and are not for conservative income investors seeking steady and steadily rising dividends. They are complex, volatile, and, much like banks, own hard-to-decipher “black boxes” of various loans and financial assets that many investors simply don’t wish to bother with.

What do BDCs do?

BDCs aim to generate income and capital gains when the companies they invest in are sold, much like venture capital or private equity funds. Business development companies are attractive choices because almost anyone can invest in them. That’s because they are public companies, traded on major stock exchanges.

How does BDC make money?

So you don’t give money? Shouldn’t a crown corporation be helping Canadians? BDC has been supporting Canadian businesses since 1944. … We do not receive government funding for the money we offer in loans; rather, our funds are borrowed on the money market like other commercial banks.

Is a BDC a 40 Act fund?

BDCs are closed-end investment companies; however, BDCs are exempt from many of the regulatory constraints imposed by the Investment Company Act of 1940, as amended (the “1940 Act”), and the rules thereunder.

What is the largest BDC?

What Are the Largest BDCs?

  • Ares Capital Corp (ARCC): $6.96 billion.
  • Owl Rock Capital (ORCC): $5.70 billion.
  • Prospect Capital Corporation (PSEC): $3.20 billion.
  • FS KKR Capital Corp (FSK): $3.03 billion.
  • Golub Capital BDC, Inc (GBDC): $2.35 billion.
  • Goldman Sachs BDC Inc (GSBD): $1.57 billion.

Which BDCs are internally managed?

Internally managed.

  • MCG Capital (MCGC)
  • Medley Capital (MCC)
  • Monroe Capital (MRCC)
  • MVC Capital (MVC)
  • New Mountain Finance (NMFC)
  • OFS Capital (OFS)
  • OHA Investment Corp. ( OHAI)
  • Oxford Lane Capital (OXLC)

Are BDCs closed end funds?

BDCs are actually a type of closed-end fund. The biggest difference to a traditional CEF is that BDCs take a more hands-on approach. They invest in private deals, typically with small to medium-sized businesses.

Do BDCs issue K 1s?

BDCs report income to investors as dividends on a 1099 form rather than the K-1 used by partnerships.

Is Main a BDC?

Main Street Capital (MAIN) is a business development company, or BDC. … Essentially, BDCs serve a market of small companies across the country that regular banks don’t want to touch, helping those businesses fund acquisitions, leveraged buyout (LBO) transactions, recapitalizations, and growth projects.

How are BDCs valued?

BDC Valuation

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The market typically values BDCs based on trading price vs. tangible book value (see below for definitions). In theory, BDCs should trade at their tangible book value. However, in practice, in-favor BDCs trade higher, while underperformers typically trade below book value.

Who can invest in BDCs?

Qualifying as a BDC

The BDC must invest at least 70% of its assets in private or public U.S. firms with market values of less than US$250 million. These companies are often young businesses, seeking financing, or firms that are suffering or emerging from financial difficulties.

What is the best BDC?

The Top 4 BDCs Today

  • BDC #4: Sixth Street Specialty Lending (TSLX)
  • BDC #3: Prospect Capital Corporation (PSEC)
  • BDC #2: Main Street Capital (MAIN)
  • BDC #1: Ares Capital Corporation (ARCC)

Is BDC a good job?

BDC was a decent job. It had its ups and down. Overall, if you like selling cars and help assisting others with getting into the vehicle that they want then this is the job for you.

How much commission do BDC reps make?

$10-$12 to even $15/hour in base pay that is a DRAW AGAINST COMMISSIONS. b. $50 commission for every VALID appointment that shows.

How much should a BDC manager make?

The average bdc manager salary in the USA is $75,000 per year or $38.46 per hour. Entry level positions start at $60,000 per year while most experienced workers make up to $120,000 per year.

How do BDCs raise capital?

A BDC provides financing, whether through loans or ownership, to small and medium sized businesses. It raises capital from retail investors who buy shares in the BDC.

What is BDC REIT?

BDCs are an instrument for investors to earn healthy dividends by avoiding double taxation at the corporate level and allowing income to flow directly to shareholders. …

Are BDCs private equity?

BDCs are a form of Private Equity Fund; however unlike traditional Private Equity Limited Partnerships (Private Structure Private Equity Funds), they are publicly traded providing investors the liquidity offered from being listed on the public stock exchanges.

What is BDC income?

A business development company, or BDC, is a unique class of company that operates much like a private equity firm but with the same oversight requirements as a publicly traded stock. BDCs hold big appeal among income investors.

What does BDC stand for Canada?

We are BDC, the Business Development Bank of Canada and the financial institution devoted to Canadian entrepreneurs.

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