Business development company (BDC) providing customized debt and equity financing solutions to lower middle-market companies.
Fidus Investment Corporation operates as a prominent business development company (BDC), specializing in a diverse array of investment strategies aimed at fostering growth and expansion across various sectors. Established with a focus on middle market investments, Fidus Investment Corporation engages in leveraged buyouts, refinancings, strategic acquisitions, and recapitalizations among other transactions. The BDC primarily targets opportunities in sectors such as aerospace and defense, business services, consumer products and services including retail and food, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution.
The investment approach of Fidus Investment Corporation centers on providing financial support to companies based in the United States. It offers a range of financial instruments including subordinated and second lien loans, senior secured debt, unitranche loans, preferred equity, warrants, and other structured financings. The BDC typically invests between $5 million and $15 million per transaction, focusing on companies with annual revenues ranging from $10 million to $150 million and annual EBITDA between $3 million and $20 million. This flexible investment strategy allows Fidus Investment Corporation to capitalize on growth opportunities while structuring investments to align with the financial needs and growth objectives of its portfolio companies.
While Fidus Investment Corporation remains committed to traditional investment principles and sectors, the landscape of finance continues to evolve with the emergence of digital currencies and blockchain technology. As of now, the company has not integrated cryptocurrencies into its investment portfolio or disclosed plans to do so. With a disciplined approach to capital deployment and a focus on value creation for its shareholders, Fidus Investment Corporation continues to navigate the dynamic market environment, leveraging its expertise to identify and capitalize on promising investment opportunities in the middle market segment.