Private Markets Unpacked: BDCs examined

In our research for private wealth investors, we examine how BDCs work, why they have scaled with private wealth, and the key trade-offs investors need to understand

• BDCs typically package middle-market lending into accessible vehicles, giving private wealth investors scaled exposure to a historically institutional asset class with built-in income distribution

• Listed, non-traded, and private BDCs offer different liquidity, pricing, and transparency profiles – making structure selection as important as the underlying assets

• Attractive yield, low minimums, and semi-liquid access have fueled adoption, but investors must weigh credit risk, leverage, and gated liquidity dynamics