Business Development Companies Hit the Big Time

Investment in business development companies (BDCs) has surged dramatically, growing from $127 billion to $451 billion over five years, according to law firm Mayer Brown. These closed-end funds are attracting retail investors by offering access to private credit strategies once reserved for institutions. “I often speak with clients who are looking for income and diversification beyond just stocks and bonds,” said CFP Board Ambassador Nicky Amore, CFP®. “BDCs are a meaningful innovation, but they still require careful due diligence at every level.”

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