Business development company (BDC) providing customized financing solutions to middle-market companies.
Barings BDC, Inc. operates as a publicly traded investment company that functions under the regulatory framework of a business development company (BDC) as defined by the Investment Company Act of 1940. Managed externally, it focuses on investing in a diverse array of senior secured loans, first lien debt, unitranche structures, second lien debt, subordinated debt, equity co-investments, and senior secured private debt investments. Its primary targets are private middle-market companies spanning various industries.
Specializing in financing strategies such as mezzanine financing, leveraged buyouts, management buyouts, ESOPs (Employee Stock Ownership Plans), change of control transactions, acquisition financings, growth financing, and recapitalizations, Barings BDC targets companies at different stages of development from lower middle market to mature and later stages. The sectors it invests in include manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services, primarily within the United States. Its investment criteria typically focus on companies with EBITDA ranging from $10 million to $75 million, often associated with private equity sponsor backing.
By leveraging its expertise in structured finance and its strategic approach to investing, Barings BDC aims to generate attractive risk-adjusted returns for its shareholders while supporting the growth and expansion initiatives of its portfolio companies. Through disciplined investment strategies and a focus on fostering long-term partnerships, Barings BDC continues to play a significant role in the financing landscape of middle-market enterprises across diverse sectors in the U.S. market.