Today’s hottest investment trend could be summed up in one word- “private.” Investors today are increasingly drawn to private credit and equity. Long the stomping ground of institutions, pensions, endowments, and high-net-worth investors, the private markets are now being touted as essential for the average retail investor to diversify and generate strong returns. The only problem is that they are still relatively scarce in a portfolio.
That is, if you don’t know where to look.
Business development companies, or BDCs, have long been a way to straddle the line between public and private equity/credit. Offering high yields, non-correlated returns, and the ability to provide exposure to the world of private assets, BDCs could be a great addition to a portfolio.
