Dividends4Life: BDC: 13% Discount, 10.5% Yield

BDC: 13% Discount, 10.5% Yield

Posted by D4L | Friday, May 21, 2021 | | 0 comments »

Business Development Companies, known as BDCs, offer the retail investor exposure to privately-held firms, which often are funded by venture capital firms. However, since they invest in privately-held companies, it's up to BDC's management to keep investors informed on the economic health of their portfolio companies. This BDC yields 10.52%, including quarterly special dividends. It's selling at an -12.80% discount to its 3/31/21 NAV/share. The company recently reported Q1 '21 - updated earnings, valuations and profitability comps vs. the BDC industry are covered in this article.

TCG BDC (CGBD), is a New York-based company which provides debt investments in the U.S. middle market companies. It also invests in first lien and second lien senior secured loans, middle market junior loans, such as corporate mezzanine loans, equity co-investments, syndicated first lien and second lien senior secured loans, high-yield bonds, and structured finance obligations. CGBD is managed by the Carlyle Group, a major asset management firm, with an $15B market cap, and $260 billion of assets under management, as of 3/31/21.

Source: Seeking Alpha

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