BDC

Business Development Company. Publicly-traded company that lends to or invests in middle-market private companies. Pass-through structure: 90%+ of taxable income distributed as dividends → 8-12% yields common.

Big BDCs: ARCC (Ares Capital), MAIN, BXSL, OBDC. Heavily exposed to credit risk in recessions; outperform when middle-market lending spreads are wide. ETF: BIZD.