April 10, 2026
A business development company (BDC) is a specialized closed-end fund designed to provide credit to private middle-market companies. Portfolio construction has resulted in many BDCs maintaining relatively large allocations to the technology and software sectors, making the industry particularly sensitive to the recent decline in software equity and credit valuations. PPM systematically tracks schedules of investments for every BDC, aiming to identify potential credit deterioration before it manifests.
In this piece, learn more about BDCs, including: the characteristics of different BDC structures, the composition of BDC portfolios, how one analyzes a BDC and what is the relative value framework.
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