In the Margins

Is consolidation next for BDCs?

September 16, 2016

By Reuters

Business development companies look primed for consolidation, according to sources. BDC share prices are trading closer to book value, but a majority are still at a discount, limiting their ability to raise fresh capital. "While the rising tide has provided lift to the sector, the average BDC still trades below book value," said Marc Yaklofsky, senior vice president at FS Investments, which manages five BDCs. "If anything, the rally has heightened the demarcation between the stronger BDCs and the ones that face challenges." Read the original story from Reuters.

 

 

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