BDC Journal

Simply stated, a Business Development Company (BDC) is by and large a public com¬pany created to help grow small companies in the initial stages of their development much like privately held venture capital funds. To qualify as a BDC, companies are registered in compliance with the Investment Company Act of 1940. Some of the reasons why BDC’s have become popular is that they provide permanent capital to their management, allow investments by the general public and use mezzanine financing opportunities. Additionally, it was Congress’ intension for BDC’s to promote the development of small businesses; special tax, accounting and cost containment provisions are specifically afforded BDC’s that are not granted standard registered corporations.

American Capital Strategies

Quote Symbol: ACAS

Company Website:

Offers senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American invests from $5 million to $800 million per company. Once the largest BDC in terms of asset size, American stumbled in 2008 and suspended its quarterly dividend in December 2008. Read more.

Apollo Investment

Quote Symbol: AINV

Company Website:

Apollo Investment, managed by private equity firm Apollo Management, offers $20 million to $150 million mezzanine and senior secured loans. Apollo may also take equity positions, and may invest in public companies. Read more.

Ares Capital

Quote Symbol: ARCC

Company Website:

Externally managed by Ares Capital Management LLC, Ares offers $10 million to $50 million senior and senior subordinated debt, and mezzanine debt, which sometimes includes an equity component, to middle market companies. Acquired Allied Capital, the first and formerly the largest BDC, in April 2010. Read more.

BlackRock Kelso Capital

Quote Symbol: BKCC

Company Website:

Externally managed by BlackRock Kelso Capital Advisors, BlackRock provides debt and equity in the $10 million to $50 million range in the form of senior and junior secured and unsecured debt securities and loans, each of which may include an equity component, to middle-market companies. May also make direct investments. Read more.

Capital Southwest Corporation

Quote Symbol: CSWC

Company Website:

Capital Southwest Corporation is a public investment firm specializing in venture capital and private equity investments in small and medium sized businesses. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. Read more.

CorEnergy Infrastructure Trust

Quote Symbol: CORR

Company Website:

Invests $5 million to $30 million in equity and debt of privately held and micro-cap companies operating in the mid-stream to downstream sections of the energy infrastructure industry such as pipeline operators. Read more.

Equus Total Return

Quote Symbol: EQS

Company Website:

Invests $4 million to $12 million in companies with revenues in the $10 million to $100 million range. Investments include stock, convertible debt and debt combined with warrants or options. Suspended quarterly dividend in November 2008. Read more.

Fidus Investment Corp

Quote Symbol: FDUS

Company Website:

Founded in 2007, and a June 2011 IPO, Fidus offers mezzanine debt and equity financing to firms with revenues from $10 million to $150 million. Read more.

Fifth Street Finance

Quote Symbol: FSC

Company Website:

Invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors. Read more.

Full Circle Capital

Quote Symbol: FULL

Company Website:

A September 2010 IPO, Full Circle lends to and invests mainly in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by smaller and lower middle-market companies. Typical transaction is $3 million to $10 million. Externally managed by Full Circle Advisors. Pays monthly dividends. Read more.

Gladstone Capital

Quote Symbol: GLAD

Company Website:

Externally managed by Gladstone Management Corporation, GLAD offers debt securities consisting primarily of senior term loans, second lien loans, and senior subordinate loans in the $3 million to $15 million range to small and medium sized businesses. Read more.

Gladstone Investment

Quote Symbol: GAIN

Company Website:

Externally managed by Gladstone Management Corporation, GAIN makes debt and equity investments in small and mid-sized private businesses to facilitate acquisitions, changes in control and recapitalizations. Gladstone Investment makes riskier loans than Gladstone Capital. Also Gladstone Capital may take direct equity positions in its client companies. Read more.

Golub Capital

Quote Symbol: GBDC

Company Website:

An April 2010 IPO, Golub offers senior loans up to $200 million, second lien and subordinated debt, preferred stock and co-investment equity to middle market companies with operating cash flows of $5 million or more. Read more.

Hercules Technology Growth Capital

Quote Symbol: HTGC

Company Website:

Provides debt and equity growth capital to technology and life science companies at all stages of development, mostly privately held start-ups backed by leading venture capital and private equity firms. Read more.

Horizon Technology

Quote Symbol: HRZN

Company Website:

Externally managed by Horizon Technology Finance Management LLC, Horizon, and October 2010 IPO, makes secured loans to development-stage companies backed by venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries. Read more.

Kayne Anderson Energy Development Co.

Quote Symbol: KED

Company Website:

The stockholders of Kayne Anderson Energy Development Company (KED) approved a change that ended KED's treatment as a BDC (business development company) in the middle of 2010. Read more.

KCAP Capital

Quote Symbol: KCAP

Company Website:

Formerly Kohlberg Capital, KCAP originates, structures, finances and manages term loans, mezzanine investments and equity securities in middle market companies. Its Katonah Debt Advisors and Trimaran Advisors units manage collateralized loan obligation (CLO) funds that invest in syndicated corporate term loans, high-yield bonds and other credit instruments. Read more.

KKR Financial Holdings

Quote Symbol: KFN

Company Website:

Managed by a unit of private equity superstar Kohlberg Kravis Roberts & Co., KKR Financial invests in secured and unsecured corporate loans, including mezzanine loans, high-yield corporate bonds, asset-backed securities, and debt and equity securities. Read more.

Main Street Capital

Quote Symbol: MAIN

Company Website:

Provides $2 million to $15 million of long-term debt and equity capital to lower middle market companies with revenues in the $10 million to $100 million range. Read more.

MCG Capital

Quote Symbol: MCGC

Company Website:

Offers capital and advisory services to middle market companies with revenues in the $20 million to $200 million range. Read more.

Medley Capital

Quote Symbol: MCC

Company Website:

A January 2011 IPO, Medley offers loans in the $10 million to $50 million range to middle market companies, primarily in North America. Externally managed by MCC Advisors, LLC. Read more.

Monroe Capital

Quote Symbol: MRCC

Company Website:

An October 2012 IPO, Monroe invests in senior, unitranche and junior secured debt of lower middle market companies. Externally managed by Monroe Capital BDC Advisors, LLC. Read more.

MVC Capital

Quote Symbol: MVC

Company Website:

Provides long-term equity and debt investment capital to fund growth, acquisitions and recapitalizations of small and middle-market companies. Investments may be stock, convertible securities, warrants, and senior or subordinated loans. Read more.

New Mountain Finance

Quote Symbol: NMFC

Company Website:

A May 2011 IPO, New Mountain offers debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. Investments may include small equity interests. Externally managed by New Mountain Finance Advisers BDC, LLC. Read more.

NGP Capital Resources Company

Quote Symbol: NGPC

Company Website:

Externally managed by NGP Investment Advisor, LP, NGPC provides $10 million to $100 million senior secured and mezzanine loans to small and mid-size energy related private companies. It may also take equity positions in client firms. Read more.

OFS Capital

Quote Symbol: OFS

Company Website:

Read more.

Oxford Lane Capital

Quote Symbol: OLXC

Company Website:

An August 2011 IPO, externally managed by Oxford Lane Capital Management, LLC, Oxford invests in corporate Collateralized Loan Obligation (CLO) instruments. Read more.

PennantPark Floating Rate Capital

Quote Symbol: PFLT

Company Website:

Externally managed by PennantPark Investment Advisers, LLC., PennantPark Floating Rate Capital, an April 2011 IPO, invests mostly in floating rate senior secured loans of middle-market private companies. May also invest in mezzanine debt and equity investments. Read more.

PennantPark Investment

Quote Symbol: PNNT

Company Website:

Externally managed by PennantPark Investment Advisers, LLC., PennantPark Investment nvests $15 million to $50 million in stock, warrants, options, subordinated loans, mezzanine loans, and senior secured loans of middle-market private companies. Read more.

Prospect Capital

Quote Symbol: PSEC

Company Website:

Lends to and invests in private and micro-cap public businesses. Prospect offers private mezzanine debt, senior secured debt, senior unsecured debt, publicly traded high-yield debt, bridge loans and private equity. Acquired Patriot Capital Funding in December 2009. Read more.

Saga Communication, Inc.

Quote Symbol: SGA

Company Website:

Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The company owns or operates broadcast properties in 25 markets, including 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 4 television stations and 4 low-power television stations. Read more.

Solar Capital

Quote Symbol: SLRC

Company Website:

Externally managed by Solar Capital Partners LLC, SLRC, a February 2010 IPO, offers senior secured loans, mezzanine loans, and equity investments in leveraged middle market firms. Read more.

Solar Senior Capital

Quote Symbol: SUNS

Company Website:

Externally managed by Solar Capital Partners LLC, SUNS, a November 2012 IPO, invests in senior secured loans including first lien, unitranche, and second lien debt instruments of middle market, leveraged companies. Read more.

Stellus Capital Investment Senior

Quote Symbol: SCM

Company Website:

Externally managed by Stellus Capital Management, SCM, a February 2011 IPO, offers first lien, second lien, unitranche and mezzanine debt financing to middle market companies. Read more.

TCP Capital

Quote Symbol: TCPC

Company Website:

April 2012 IPO. Invests in debt securities of firms with enterprise values between $100 million and $1.5 billion. Externally managed by Tennenbaum Capital Partners, LLC. Read more.

THL Credit

Quote Symbol: TCRD

Company Website:

An April 2010 IPO, THL offers junior debt and equity investments in middle market companies for acquisitions, recapitalizations and change in control transactions. Read more.

TICC Capital

Quote Symbol: TICC

Company Website:

Formerly Technology Investment Capital, TICC offers financing to technology-related companies with annual revenues below $200 million and/or a market capitalization or enterprise value of less than $300 million. Read more.

Triangle Capital

Quote Symbol: TCAP

Company Website:

Offers customized financing in the $5 million to $15 million range to lower middle market companies with revenues from $20 million to $75 million. Also may take equity positions. Read more.

Whitehorse Finance

Quote Symbol: WHF

Company Website:

A December 2012 IPO, Whitehorse invests $10 million to $50 million to companies with enterprise values (market-cap + debt) between $50 and $350 million. Externally managed by H.I.G. Capital Read more.