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Kroll Bond Rating Agency Releases Business Development Company Overview

July 18, 2014

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) released an overview discussing Business Development Companies (BDCs). BDCs were established by an Act of Congress in 1980 to help increase the flow of capital to startups, developing, and/or small or mid-sized privately owned U.S. companies, which typically have outgrown the abilities of a community bank, yet are still too small to directly access the capital markets. The industry remains relatively small, when compared to traditional lenders like banks or non-bank finance companies, with roughly 45 publicly traded active BDCs and approximately $50 billion in assets at the end of the first quarter of 2014. However, given their ability to provide capital to firms that may not have efficient access to bank loans or the capital markets, BDCs have been growing tremendously and a number of new entrants have recently come to market.

KBRA believes that Business Development Companiesí (BDCs) share of business lending, which has strengthened significantly over the past 2 years, is poised for continued growth. The U.S. economy continues along a path to a modest recovery and most traditional lenders are retreating from the small business market. First, the number of startups, small and midsize companies continues to rise, creating significant opportunities for BDCs. Further, regulatory changes for banks, other traditional middle market lenders, and CLOs will also drive growth in this sector. KBRA anticipates that our coverage of the BDC sector will continue to grow, along with the expansion of the industry.

To view the report, Business Development Company (BDC) Overview, please visit

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Analytical Contacts:

Kroll Bond Rating Agency

Marjan Riggi, Managing Director, 646-731-2354


Chris Whalen, Senior Managing Director, 646-731-2366


Jay Zhou, Senior Analyst, 646-731-2441


Denise Alvarez, Senior Director, 646-731-2402


Isabelle Nana, Associate, 240-394-4153

Source: Kroll Bond Rating Agency

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Source: Business Wire

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