We manage BDC (Business Development Company) related strategies that primarily invest in portfolios comprised of private debt assets and to a lesser extent, private equity investments.
BDCs are special investment vehicles created by the US Congress in 1980 as an amendment to the Investment Company Act of 1940, with the goal of encouraging the flow of capital to private, mid- sized businesses in the U.S.
BDCs have favourable tax treatment, i.e. limited entity-level tax withholding. The structure is unique as the underlying investments are illiquid, but the BDC is often listed on a public exchange, affording investors better liquidity, while potentially benefiting from private debt liquidity premiums. Investors also value the floating rate investment focus of this asset class.