Kroll Bond Rating Agency Releases Business Development Company Overview

NEW YORK--()--Kroll Bond Rating Agency (KBRA) released an overview discussing Business Development Companies (BDCs). BDCs were established by an Act of Congress in 1980 to help increase the flow of capital to startups, developing, and/or small or mid-sized privately owned U.S. companies, which typically have outgrown the abilities of a community bank, yet are still too small to directly access the capital markets. The industry remains relatively small, when compared to traditional lenders like banks or non-bank finance companies, with roughly 45 publicly traded active BDCs and approximately $50 billion in assets at the end of the first quarter of 2014. However, given their ability to provide capital to firms that may not have efficient access to bank loans or the capital markets, BDCs have been growing tremendously and a number of new entrants have recently come to market.

KBRA believes that Business Development Companies’ (BDCs) share of business lending, which has strengthened significantly over the past 2 years, is poised for continued growth. The U.S. economy continues along a path to a modest recovery and most traditional lenders are retreating from the small business market. First, the number of startups, small and midsize companies continues to rise, creating significant opportunities for BDCs. Further, regulatory changes for banks, other traditional middle market lenders, and CLOs will also drive growth in this sector. KBRA anticipates that our coverage of the BDC sector will continue to grow, along with the expansion of the industry.

To view the report, Business Development Company (BDC) Overview, please visit www.kbra.com.

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Marjan Riggi, Managing Director, 646-731-2354
mriggi@kbra.com
or
Chris Whalen, Senior Managing Director, 646-731-2366
cwhalen@kbra.com
or
Jay Zhou, Senior Analyst, 646-731-2441
jzhou@kbra.com
or
Denise Alvarez, Senior Director, 646-731-2402
dalvarez@kbra.com
or
Isabelle Nana, Associate, 240-394-4153
inana@kbra.com

Sharing

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Marjan Riggi, Managing Director, 646-731-2354
mriggi@kbra.com
or
Chris Whalen, Senior Managing Director, 646-731-2366
cwhalen@kbra.com
or
Jay Zhou, Senior Analyst, 646-731-2441
jzhou@kbra.com
or
Denise Alvarez, Senior Director, 646-731-2402
dalvarez@kbra.com
or
Isabelle Nana, Associate, 240-394-4153
inana@kbra.com