Dipasolutions always aim to deliver tons of value and legit information about the latest trends in business. We exactly know why you’re here and we’ll give you a detailed insight of the best business development companies of 2021 in this blog post, so if You’re a private, small or medium-sized company that is looking for the best business development companies to get the investment? You might need to read this one.
We’ll list down the top 5 business development firms for you to grow and to get financial aid.
What Are The Business Development Companies?
Business development companies are privately held registered investment companies. Their purpose is to promote small-scale businesses by providing capital through loans. BDCs invest in a variety of companies going through development, turnarounds, or distressed situations.
Business development firms are registered under the Investment Company Act 1940 and must distribute at least 90% of their taxable income to shareholders as ordinary dividends each year. BDCs are also known as venture capital firms.
We at Dipasolutions, have done extensive research and if you’re opting for this BDC trend in 2021 then you should consider these
5 Best business development companies
Apollo Global investment
Apollo global investment is one of the top business development firms with the privilege of $430 billion in assets at present. They primarily invest in middle-sized companies and firms and this makes the 79% of their investment. The company had invested a total of $21.5 billion across 541 portfolio companies as per their most recent quarter-end.
Dividend yield: 10.6%
FS KKR Capital Corp. (FSK)
FS KKR Captial corp is one of the biggest names when we talk about the top business development companies. With the insane buyout of RJR Nabisco in the late ’80s, FSK proved itself as the giant of the investment world. If you’re looking forward to getting an investment of any scale look no further than FS KKR capital Corp.
Dividend yield: 13.9%
Main street Captial:
Main street Capital is the best choice for middle-market companies. The investment size of Main Street is just $13 million so it definitely attracts middle-market companies. Main street Capital is worth a shot among the top business development companies of 2021.
Dividend Yield: 7.6%
Ares Capital is the most diversified BDC by sector with a value of nearly $7billion. 45% of its capital is invested in first-lien loans, while another 28% in second-lien loans. The company invests primarily in U.S. middle-market companies. The portfolio had a reasonable worth of roughly $15.4 billion, and comprised of 350 portfolio organizations upheld by 176 different private equity sponsors. Ares Capital has a diverse portfolio in terms of asset class, issuer concentration, industry sector and geographic representation.
Dividend Yield: 9.4%
Most of the business development firms we’ve seen are private fundraisers but Hercules Capital is different. It’s more like a venture capital firm. Venture capital tends to focus on startups and newer firms. So, Hercules Capital is the best choice for the emerging companies who’re trying to establish their feet in the market.
Dividend Yield: 8.7%
While you make the decision to invest in the best business development firms or the company of 2021 you should be aware of the risk factors such as interest rate risk or default risk. If you understand the various implications and make the decision to invest in BDC with extensive research then it will be the best step forward to the bright future of your organization.