What a year for business development companies. Perhaps the sleeper issue that awoke in 2018 was the increase in leverage that BDCs can take on; the Small Business Credit Availability Act became law in the US, allowing BDCs to increase their borrowing capacity from a 1:1 debt-to-equity ratio to 2:1.
PDI 50: BDCs levelling up
While the same big players continue to dominate the list of the largest BDCs, new legislation could shake up future rankings.
