Muzinich & Co.’s Portfolio Manager Ji He explains why US Congress created business development companies in the 1980s, and why the structure returns so much income to investors. She traces the rule back to America’s middle market, the private lending engine behind these funds, and shows how BDCs must pass through at least 90% of their income to keep their tax exemption.
In this clip, Ji explains:
- Why US Congress approved BDCs in the 1980s to fund the middle market
- How big the US middle market is: about a third of US GDP
- Why BDCs must pass through at least 90% of their income to investors
- Where that income comes from: loan interest, origination fees and prepayment fees
Excerpt from a live webinar recorded on 23 July 2026. Information is correct as at the time of broadcast and is subject to change. This video is for educational purposes and is general in nature. It does not constitute personal advice.
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