URL has been copied successfully!
Moody’s Ratings on Tuesday downgraded its outlook on U.S. business development companies (BDCs) to negative, pointing to growing client redemptions that could pressure private credit.
Business development companies are publicly listed funds that provide debt and equity financing to small- and mid‑sized firms. Private lenders are one of the key gateways for investors to access the $2 trillion private credit market.
The mounting challenges, however, are falling primarily on non-traded BDCs, accounting for almost two-thirds of the sector.
Non‑traded funds collect money from investors, borrow additional capital, and use that combined pool to make loans to private companies. They are designed to continue raising new money over time, while giving investors only limited opportunities to cash out….
Business development companies are publicly listed funds that provide debt and equity financing to small- and mid‑sized firms. Private lenders are one of the key gateways for investors to access the $2 trillion private credit market.
The mounting challenges, however, are falling primarily on non-traded BDCs, accounting for almost two-thirds of the sector.
Non‑traded funds collect money from investors, borrow additional capital, and use that combined pool to make loans to private companies. They are designed to continue raising new money over time, while giving investors only limited opportunities to cash out….
Please follow us:
