Private Companies In The Public Market
Private equity investments generally are illiquid, with high minimum investments. Average investors can participate in potentially lucrative private companies via business development companies (BDCs), which are accessible to anyone with a brokerage account.
A BDC is a holding company that invests in the debt or equity of operating companies, typically private businesses. BDC managers tend to run those businesses like private equity or venture capital firms. There are 22 BDCs currently trading on U.S. exchanges.
Most of the largest BDCs have dividend yields over 8%. And a BDC escapes corporate income tax if it passes through at least 90% of profits to shareholders.
You can find a listing at Quantum Online (in our "Links" section). The BDCs are listed under "Stock Lists," which is in the middle of the navigation bar.
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A BDC is a holding company that invests in the debt or equity of operating companies, typically private businesses. BDC managers tend to run those businesses like private equity or venture capital firms. There are 22 BDCs currently trading on U.S. exchanges.
Most of the largest BDCs have dividend yields over 8%. And a BDC escapes corporate income tax if it passes through at least 90% of profits to shareholders.
You can find a listing at Quantum Online (in our "Links" section). The BDCs are listed under "Stock Lists," which is in the middle of the navigation bar.
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posted by Bob Moser at
8:37 PM
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