Business Development Companies (BDC)

Business Development Companies (BDCs) are specialized investment firms that provide capital to private and small to mid-sized companies, often helping them grow. They are publicly traded on stock exchanges, allowing individual investors to buy shares and invest in a diversified portfolio of emerging businesses. BDCs must adhere to certain regulations, such as distributing most of their income as dividends, which can offer attractive income opportunities. Essentially, they act as intermediaries, channeling investment funds from the public into developing companies, aiming to generate returns through interest, dividends, and capital appreciation.