Business development company providing capital and financing solutions to middle-market companies.
Kayne Anderson BDC, Inc. , established on February 5, 2021, is a closed-end, non-diversified management investment company operating as a business development company under the regulatory framework of the Investment Company Act of 1940, as amended. KBDC is externally managed and focuses on making strategic investments in middle-market companies.
KBDC's primary investment objective is to generate current income, with a secondary goal of achieving capital appreciation. The company strategically allocates its investments into first lien senior secured loans as its primary focus, supplemented by unitranche and split-lien loans to middle-market enterprises. These debt instruments typically carry stated maturities ranging from three to six years, targeting companies predominantly operating within the United States.
Under normal market conditions, KBDC aims to have at least 90% of its portfolio invested in these debt instruments, sourced through established channels developed by Kayne Anderson's middle market private credit platform, known as Kayne Anderson Private Credit. This platform leverages a robust network that includes private equity firms, middle-market lenders, financial advisors, and other intermediaries. KBDC employs KAPC's rigorous underwriting process to select investments aligned with its middle-market company focus, drawing upon the extensive experience and resources of the broader Kayne Anderson network.
In executing its investment strategy, KBDC benefits from the operational support and expertise of Kayne Anderson, enhancing its ability to identify and capitalize on lucrative opportunities within the middle-market sector of the U.S. economy.