Info

KMA Capital provides full-service, extensive Business Development Company (BDC) consulting to corporate clients. Our expertise, along with our understanding of suitable BDC industry sectors and our approach of working closely with management, assures clients they will have the necessary means to meet their objectives and optimize their ability to succeed. BDCs have been around for 20 years but until recently they were a little known structure and barely received a second look. BDC assets have grown from $1 billion in 1997 to $17 billion in 2007. What is a BDC? As part of the Small Business Incentive Act of 1980, Congress created a new public investment company vehicle called a ,business development company' in order to encourage the flow of public capital to private businesses. BDCs are publicly registered, closed-end investment companies with shares that trade like stock on an exchange or Nasdaq. As a result, BDCs are available to public investors who otherwise would not generally have access to private equity funds. Unlike traditional private equity funds, BDCs operate for an indefinite period and continually recycle their contributed capital. Historically, BDCs have made debt and equity investments in small and middle-market private companies and returned the bulk of the profits to stockholders in the form of quarterly dividends. BDCs appear to attract attention for a number of reasons:Liquid Capital - BDCs allow investors and fund managers the same degree of liquidity as other publicly traded investments. New Investors - BDCs provide access to the public markets; shareholders are not required to meet income, net worth or sophistication criteria. Retail investors may welcome this opportunity to gain access to the private equity market managed by major private equity players.