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Off the Mark: Business Development Companies’ Discrepancies in Fair Value Reporting of Loan Values

Off the Mark: Business Development Companies’ Discrepancies in Fair Value Reporting of Loan Values

Current SEC regulations require that companies use market values when appraising their assets to fair value. When market prices are not immediately apparent though, as in the case of BDC loans, determining a fair value becomes a less uniform process. While Accounting Series Releases 113 and 118 provide some guidance on marking illiquid assets toRead more about Off the Mark: Business Development Companies’ Discrepancies in Fair Value Reporting of Loan Values[…]

Middle Market Loans: An Opportunity for Higher ROI

Middle Market Loans: An Opportunity for Higher ROI

  Middle market companies (with revenues between $50 million and $1 billion) and lower middle market companies (with revenues between $5 – $50 million) that are not able to access today’s high yield bond market are increasingly turning to smaller regional banks for their capital needs. When a bank is unable to provide adequate capital,Read more about Middle Market Loans: An Opportunity for Higher ROI[…]

The Cost of Accessing Middle Market Debt through Business Development Companies (BDCs)

The Cost of Accessing Middle Market Debt through Business Development Companies (BDCs)

By nature, private capital market investment management is simply not as cheap as the public side. Private market investments usually require additional time to be spent on diligence due to less publicly available information in the form of financial statements. The added time spent on investment management is a cost that can add up toRead more about The Cost of Accessing Middle Market Debt through Business Development Companies (BDCs)[…]

Self-Directed IRAs

Self-Directed IRAs

Despite existing since the traditional IRA was created in 1974, Self-Directed IRAs (SDIRAs) have received relatively little attention over the past few decades. While SDIRAs are functionally the same as traditional IRAs, SDIRAs provide access to significantly more types of investments and give investors the ability to invest in a wider variety of asset classes.Read more about Self-Directed IRAs[…]

Consumer (P2P) Online Marketplace Lending vs. Middle Market Online Marketplace Lending

Consumer (P2P) Online Marketplace Lending vs. Middle Market Online Marketplace Lending

The marketplace lending industry has come under scrutiny following recent headline events including the stepping down of LendingClub CEO, Renaud Laplanche as well as the New York Department of Financial Services (NYDFS) probe into the underwriting and borrower verification process of LendingClub. While these events have diminished a number of investors’ short-term confidence in theRead more about Consumer (P2P) Online Marketplace Lending vs. Middle Market Online Marketplace Lending[…]

Importance of Lower Middle Market and Middle Market in an Investing Portfolio

Importance of Lower Middle Market and Middle Market in an Investing Portfolio

Middle market companies are generally passed over by traditional investors despite the recent expansion of the asset class. There are about 350,000 private middle market companies in the United States, collectively employing nearly 32 million people. While these companies have been served predominantly by commercial banks and traditional lenders, interest in the middle market hasRead more about Importance of Lower Middle Market and Middle Market in an Investing Portfolio[…]

Advanced Investing: Current Yield Investing Landscape

Advanced Investing: Current Yield Investing Landscape

Recent stock market volatility and low interest rates have prompted investors to seek alternative options for portfolio diversification. This environment has led to investors having to choose between investments that either have a significant reduction in yield or an uptick in risk. Historically investors have had the following options: Publicly-traded bond funds REITs CDs and Short-Term BondsRead more about Advanced Investing: Current Yield Investing Landscape[…]

Companies Seeking Capital: Options for Raising Debt in the Lower Middle Market

Companies Seeking Capital: Options for Raising Debt in the Lower Middle Market

The current landscape for lower middle market companies seeking to raise capital, especially debt, has become increasingly convoluted with Dodd-Frank and Basel I, II, and III regulations. Lower middle market companies seeking to raise debt have a number of options when it comes to raising debt and each option carries its own caveats. The graphicRead more about Companies Seeking Capital: Options for Raising Debt in the Lower Middle Market[…]