Why BDCs Matter (Part One)

This past summer we ran a four-part series on collateralized loan obligations [“Why CLOs Matter”]. The excellent response to that special report encouraged us to publish another white paper, this time on business development companies.

We will simultaneously be coming out with interviews with top players and experts in the BDC space. This week we begin a two-part conversation with Jonathan Bock, a recognized BDC guru with Wells Fargo. It makes for compelling reading.

[Sneak preview: Jonathan and his team are hosting the 2nd Annual Wells Fargo Middle Market / BDC CEO Leadership Forum on November 18. This is the “must attend” event for anyone interested in learning more about the middle market/BDC space – link to pdf.]

First, a little history. BDCs were a creation of Congress in 1980 to give small and medium-sized companies more access to debt capital. This regulation supplemented the 1940 Investment Company Act (“40 Act”) that already governed investment vehicles such as closed-end and mutual funds.