Are business development companies publicly traded?
A business development company (BDC) is a type of closed-end fund that makes investments in developing and financially distressed firms. Many BDCs are publicly traded and are open to retail investors. BDCs offer investors high dividend yields and some capital appreciation potential.
Is there a BDC ETF?
Offered by Global X, this ETF tracks the Indxx SuperDividend Alternatives Index, which seeks to provide exposure to different Alternative asset classes, including BDCs, infrastructure companies, and Real Estate Investment Trusts (REITs).
Are BDC good investments?
BDCs hold illiquid investments in non-publicly traded companies. These loans and investments may not be considered investment grade and are often illiquid and not transparent.
What is the largest BDC?
What Are the Largest BDCs?
- Golub Capital BDC, Inc (GBDC): $2.61 billion.
- Main Street Capital Corp (MAIN): $1.81 billion.
- Goldman Sachs BDC Inc (GSBD): $1.62 billion.
- Hercules Capital (HTGC): $1.34 billion.
- Oaktree Specialty Lending Corp.
- New Mountain Finance Corp (NMFC): $1.31 billion8.
Do BDC pay qualified dividends?
Non-Qualified Dividends Dividends paid by tax-exempt corporations or trusts such as Business Development Corporations (BDCs), Master Limited Partnerships (MLPs), Limited Liability Corporations (LLCs), or Real Estate Investment Trusts (REITs) are considered non-qualified, and may be taxed at ordinary rates.
How are BDC dividends taxed?
BDCs are generally not taxed at the corporate level to the extent they distribute all of their taxable income in the form of dividends. Ordinary income dividends are taxed at individual tax rates and distributions may be subject to state tax.
How many BDCs are there?
Today, there are 47 publicly traded BDCs with a combined market capitalization of more than $49 billion as of April 2021, according to Closed-End Fund Advisors, which tracks BDC data and research.
How many BDCs are there in the US?
49 business development companies
There are currently 49 business development companies or “BDCs” in our database. FS KKR Capital Corp. Hercules Capital Inc.
How many private BDCs are there?
Currently, there are approximately 50 BDCs whose shares are listed on a national securities exchange (“listed BDCs”).
How do I start a BDC?
BDC Formation To become a BDC, a company must file Form N-6 with the SEC (intent to file a notification of election). Then, a company must file a notice on Form N-54A indicating that it elects to be regulated as a BDC under the 1940 Act.
Can I put BDC in Roth IRA?
Typically, the biggest chunk of the dividend is considered non-qualified and taxed as ordinary income, making BDCs woefully tax-inefficient. This makes them particularly well suited for an IRA or Roth Ira.