BDCs: The Cyclical & Structural Outlook

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

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