Anyone up for a 10.2% payout? One that is powered by profits that should actually rise alongside interest rates?
If so, I’ve got a three-letter acronym for us:
Business development companies provide debt, equity and other financing to small and midsized companies, effectively acting as banks because banks often don’t want to take on that level of risk. And because they’re primarily investing in companies that aren’t on public markets, BDCs serve as de facto private equity investments—but ones that retail investors like us can get in on!
BDC structures are similar to real estate investment trusts (REITs). Both were created by Congress—REITs in 1960, BDCs in 1980.… Read more