BDCs: The Cyclical & Structural Outlook

Streaming Income - A Podcast from Barings

Business development companies (BDCs) continue to garner increased investor attention driven by demand for income and access to the growing private credit asset class. Barings' Matthew Freund discusses the cyclical and structural trends shaping the market opportunity today.

Episode Segments:

(02:29) – Defining our terms: BDCs

(04:08) – The structural trends underpinning private credit’s growth

(06:10) – Understanding the types of BDCs: public, private & perpetual

(08:20) – How fees play an important role in BDC investments

(12:06) – How “peak rates” may impact BDCs

(16:50) – Why the BDC IPO market is so active at the moment

(19:11) – What to make of all the new entrants in private credit

(24:40) – The implications of managers moving up market with larger deals

(26:34) – How documentation and structures look in today’s market

(29:14) – Is this the “golden age” for private credit?

(30:43) – Trends to watch in the months and years ahead

Certain statements about Barings LLC made by the participants herein may be deemed to be “testimonials” or “endorsements” as those terms are defined in rule 206(4)-1 under the Investment Advisers Act of 1940, as amended. Participants were not compensated in connection with their participation in this program, although in certain cases they are investors in Barings LLC sponsored vehicles. These investments subject such participants to potential conflicts of interest in making the statements herein.

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