Business Development Companies – or BDCs – are publicly listed companies that lend to mid-market businesses across the United States.
What makes them unique for investors? Portfolio Manager at Muzinich & Co, Ji He, explains that BDCs are legally required to distribute at least 90% of their income to investors, are exempt from US federal corporate tax, in some cases actively manage the companies they lend to, and are built with institutional-grade governance and transparency baked in by law.
DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP) (ABN 56 080 277 998), a financial institution listed on the ASX (APL). AGP IM is the Responsible Entity of Muzinich BDC Income Fund – Active ETF (ARSN 691 941 401) (the Fund).
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