Researcher ORCID Identifier
0009-0006-2265-1797
Graduation Year
2025
Date of Submission
12-2024
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
George Batta
Terms of Use & License Information
Rights Information
© 2024 Russell Kuan
Abstract
This study examines the performance dynamics of public Business Development Companies (BDCs) – a unique and growing component of the private credit market that bridges public and private financing. Publicly traded BDCs provide critical capital to underserved middle-market firms, while giving investors access to private credit opportunities. Using a hand-pulled dataset derived from 10-K filings and supplemental sources, this research identifies the key financial and operational factors driving BDC performance, with a focus on senior secured loan allocations, portfolio yield, and leverage strategies. The findings reveal that portfolio yield and senior secured loan allocations are significant predictors of total returns based on Net Asset Value (NAV), underscoring the importance of portfolio composition and risk management in driving performance. These results provide actionable insights for investors targeting yield, managers optimizing operational efficiency, and policymakers crafting regulatory frameworks to foster sustainable growth in the BDC sector.
Recommended Citation
Kuan, Russell, "The Public Face of Private Credit: Performance Dynamics in Business Development Companies" (2025). CMC Senior Theses. 3809.
https://scholarship.claremont.edu/cmc_theses/3809