Business Development Companies, BDCs, offer high yield access to privately held and venture capital-backed companies, a part of the market otherwise unavailable to most retail investors.Business Development Companies, BDCs, offer high yield access to privately held and venture capital-backed companies, a part of the market otherwise unavailable to most retail investors. This BDC's Q4 '21 total investment income rose 31.5%, NII grew 29%, DNII rose 28%, NII/Share rose 23.7%, and NAV/Share rose 13%. Dividend coverage hit 1.16X in Q4 '21, averaging 1.06X for 2021.
Houston-based Main Street Capital Corporation (MAIN) is an internally managed BDC, which specializes in equity capital to lower middle market - LMM companies, with revenue between $10-$150M, and EBITDA between $3-$20M. It was founded in 2007. It's one of the largest BDC's, with a $3.1B market cap, and over and $5B in assets under management. MAIN has outperformed the BDC industry, the broad Financial sector, and the market over the past year, but has lagged so far in 2022, although it has held up a bit better than the S&P over the past month and quarter.
Source: Seeking Alpha
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