Business development companies are an important and growing source of funding for middle market companies. Along with private equity and other investment funds, BDCs provide billions of dollars of investment capital to private companies in every segment of the economy. Mercer Capital produces a quarterly newsletter that tracks the financial and stock market performance of the public BDCs. The 1st Quarter 2013 issue has been released.
Per this issue:
Financial results reported during the quarter signal that the middle market continues to look to BDCs to supply needed capital, whether for acquisition, capital expansion, or recapitalization. In aggregate, the 28 covered BDCs originated over $5.5 billion of new investments during the fourth quarter of 2012, a 154% increase over the fourth quarter of 2011. BDCs have been aggressively tapping the capital markets to keep up with the demand for lending, and investors remain favorably disposed to debt and secondary equity offerings.
You can download the issue in pdf format here.
For more information on the services Mercer Capital provides to business development companies, click here.