The Motley Fool

APRIL 28, 2024

Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC). yield and prepare to hold for the long-run.

Leveraged Buyouts 244

Leveraged Buyouts Due Diligence Buyout Venture Capital 244

Private Equity Wire

MARCH 14, 2025

percentage points over the Secured Overnight Financing Rate (SOFR), was among the most expensive financings at the time, according to SEC filings from business development companies holding the debt. The deal, which carried a spread of 7.25

Financing 45

Financing Finance Debt Banks 45

The Motley Fool

AUGUST 25, 2023

What this added protection does is allow AGNC to deploy leverage to bolster its profits and sustain its juicy payout.

Debt 246

Debt Initial Public Offering Investing Capital 246

The Motley Fool

FEBRUARY 1, 2024

million in net debt, its net-leverage ratio is a modest 0.31. Furthermore, the company is slated to complete a number of projects in 2024, which should lead to considerably lower capital expenditures next year. Though it closed out 2023 with $277.3 PennantPark pays its outsized dividend on a monthly basis.

Debt 246

Debt Investing Liabilities Private Companies 246

The Motley Fool

JANUARY 4, 2024

PennantPark Floating Rate Capital: 10.17% yield A second high-yield stock capable of producing $100 in super safe monthly dividend income in 2024 from an initial investment of $11,925 (split three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). and Realty Income wasn't one of them.

Debt 246

Debt Investing Assets Capital 246

The Motley Fool

SEPTEMBER 6, 2023

The BDC business model is leveraged Back before the Great Recession, I owned a couple of business development companies (BDC). These BDCs provide loans to small- and mid-size companies, passing through much of the interest income they earn to shareholders in the form of dividends. Image source: Getty Images.

Leveraging 130

Leveraging Business Development Companies Capital Shareholders 130

The Motley Fool

MARCH 6, 2024

dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. What makes Ares a bit different than Hercules is that the company tends to focus on lower middle-market businesses across a wider array of industries.

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

Private Equity Wire

APRIL 25, 2024

billion in investable capital, including leverage, included a substantial investment from the General Partner and employees of the firm. Consistent with the Firm’s investment philosophy, New Mountain’s private credit strategy focuses on lending to the highest quality companies in select, non-cyclical defensive growth industries.

Capital 98

Capital Funds Leveraging Business Development Companies 98

Private Equity Wire

MARCH 21, 2024

Apollo Global Management has launched a new private credit fund, Middle Market Apollo Institutional Private Lending, that will invest money from an affiliate of Mubadala Investment Company and other institutional investors, according to a report by Bloomberg. These fees include a 1% management fee and a 12.5%

Funds 96

Funds Business Development Companies Management Fees Leveraging 96

Private Equity Wire

OCTOBER 9, 2023

At particular risk are unitranches, business development companies, older vintage funds with highly levered deals, and recurring revenue loans.” The report cites a note from Bank of America which stated: “Potential problematic situations within private debt remain unaddressed and are likely to surface near term.

Banks 97

Banks Debt Leveraging Business Development Companies 97

Private Equity Wire

APRIL 16, 2024

While leverage and covenants are holding up, spreads are expected to come under more pressure. Middle market credit performance outperformed Fitch’s expectations last year, although there are signs of more divergence in credit metrics for business development companies (BDCs).

Banks 97

Banks Leveraging Business Development Companies Prospects 97

The Motley Fool

JUNE 18, 2023

Since their inception in the 1980s by an act of Congress, business development companies (BDCs) have often delivered market-beating total returns for shareholders. This is because the company can leverage its investment-grade balance sheet to take out loans at reasonably low interest rates.

Capital 130

Capital Startups Investing Shareholders 130

The Motley Fool

MARCH 17, 2024

But with so many opportunities out there, it's challenging to identify companies that both pay dividends and consistently perform at a high level. One good place to source ideas is to look at business development companies (BDCs). For instance, Hercules and Horizon usually offer revolving or term loans.

Leveraged Buyouts 130

Leveraged Buyouts Exchange-Traded Funds Private Equity Firms Private Equity Firms 130

Private Equity Insights

SEPTEMBER 28, 2023

Centerbridge Partners and Wells Fargo & Company announced they are entering into a strategic relationship focused on direct lending to non-sponsor North American middle market companies.

Funds 130

Funds Financing Finance Capital 130

The Motley Fool

OCTOBER 24, 2024

Ares Capital is a business development company ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earnings before interest, taxes, depreciation, and amortization ( EBITDA ) every year). Should you invest in it today?

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

JUNE 27, 2024

Business development companies (BDC) can be particularly good sources of dividend income, paying above market returns. It has built a strong reputation working with middle-market companies across all industry sectors, offering complex deal structures including leveraged buyouts , acquisitions, growth capital, and restructurings.

Leveraged Buyouts 130

Leveraged Buyouts Initial Public Offering Buyout Venture Capital 130

The Motley Fool

APRIL 20, 2024

One type of business that income-focused investors might have come across is the business development company (BDC) , which invests in the debt and equity of middle-market companies. However, BDCs can employ very different strategies and not all are created equal.

Capital 130

Capital Initial Public Offering Collateral Debt 130

The Motley Fool

FEBRUARY 27, 2024

While many companies pay dividends, business development companies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. This can require lots of effort when it comes to performing due diligence, and there's always the risk that you could be wrong.

Leveraged Buyouts 130

Leveraged Buyouts Due Diligence Initial Public Offering Exchange-Traded Funds 130

The Motley Fool

NOVEMBER 18, 2024

Ares Capital is a leading business development company (BDC). It invests in and provides direct lending to middle-market businesses that generate annual revenue between $10 million and $1 billion. Key risks While I think Ares Capital is a no-brainer stock to buy for many investors, the company faces some key risks.

Portfolios 100

Portfolios Asset Management Capital Shareholders 100

Private Equity Insights

MARCH 17, 2023

Lately, much attention has been lavished on Ares Capital, the unit created in 2004 to provide financing for middle-market acquisitions, recapitalizations, and leveraged buyouts. The amount of business that banks do with us now is more than it has ever been.” In 2022, Ares’ direct lending tied to such buyouts totaled $26.4

Pension Funds 130

Pension Funds Buyout Leveraged Buyouts Asset Management 130

The Big Picture

APRIL 1, 2023

Churchill’s publicly registered business development company. Kencel, who has more than three decades of experience in the investment industry, also serves as chairman of the board, president, and CEO of Nuveen Churchill Direct Lending Inc.,

Asset Management 69

Asset Management Assets Mergers and Acquisitions Financing 69

Pension Pulse

JULY 11, 2024

“It gets back to the ability to grow the operating performance of the companies and making sure that returns” come from that rather than from “financial leverage,” he tells Bloomberg. The amount of distressed debt owed by portfolio businesses of the 50 biggest PE firms has climbed 18% since mid-March to $42.7

Buyout 59

Buyout Debt Leveraging Collateral 59

Blackstone

NOVEMBER 16, 2023

4 To discuss the opportunities in this rising asset class and how to navigate the benefits and challenges of higher-for-longer rates, I welcome, as indicated below, the perspectives of Jonathan Bock, Co-CEO of Blackstone’s Business Development Companies (BDCs) and Global Head of Market Research for Blackstone Credit.

Leveraging 52

Leveraging Banks Debt Leveraged Buyouts 52

Pension Pulse

JANUARY 31, 2024

Nevertheless, the more NBFIs look like banks – for example, with open-ended short-term funding, high levels of leverage, significant derivative exposures – the more liquidity they should hold and be required to hold. As a consequence, banks must submit to more stringent regulation. That’s the deal, Jamie, and you know it.

Banks 59

Banks Pension Funds Financial Institutions Investing 59

Pension Pulse

SEPTEMBER 28, 2023

To meet the alternative credit needs of this segment, Centerbridge intends to launch Overland Advisors to manage a newly formed business development company that will be primarily focused on making senior secured loans.

Shareholders 52

Shareholders Finance Financing Banks 52

The Motley Fool

JANUARY 23, 2024

While this added protection reduces the yield Annaly receives on the MBSs it purchases, it also allows the company to utilize leverage to maximize its profit potential. An "agency" security is backed by the federal government in the event of default. Image source: Getty Images.

Debt 245

Debt Public Companies Capital Assets 245

The Motley Fool

DECEMBER 28, 2024

That's because Ares is a business development company (BDC) that mainly focuses on paying high dividends to income-oriented investors. Let's review its business model, growth rates, and valuations to decide. During the past three years, Ares Capital 's (NASDAQ: ARCC) stock has risen about 6%.

Capital 246

Capital Debt Assets Banks 246

Private Equity Insights

FEBRUARY 17, 2025

The alternative credit manager, which oversees approximately $80bn in capital, structured the fund to provide investors with access to senior secured floating rate loans to private-equity-owned, middle-market companies across the US.

Capital 130

Capital Funds Bidding Leveraging 130