A BDC, or business development company, is a U.S. investment company that lends to or invests in private mid-sized businesses, and typically passes most of its income to shareholders. Some trade on an exchange.
What the video says
In private credit, you can own loans to private companies, through a share. It's called a BDC. A business development company. Say a BDC raises one billion. It lends to mid-sized companies at eleven percent. That's a hundred and ten million a year in interest. It generally pays most of that out to shareholders. Some BDCs trade on an exchange. Others don't. So why do investors care? It's a common way for individual investors to own private credit. Private loans. A share you can own.
In the glossary: BDC
A simple example with round numbers, not advice. Terms vary by fund.
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