The BDC Platform
Allied Capital is one of the nation's leading business development
companies (BDC). BDCs were created by Congress to encourage
the flow of capital to companies that have limited access to
long-term investment capital and other needed resources. BDCs
have public equity capital and invest that money primarily
in small and mid-sized private companies. Individual investors
in a BDC have the opportunity to invest in the private equity
asset class through a publicly traded stock.
BDC regulations require the BDC to maintain a conservative
capital structure, limiting the amount of money a BDC may
borrow; provide transparency to investors through periodic
public reporting; and limit transactions with affiliates.
BDCs also are required to assist portfolio companies by offering
managerial advice and other resources.
Consistent with Congress’ mandate, over the years,
Allied Capital has financed thousands of small and middle
market companies across the United States. At September 30,
2008, Allied Capital’s portfolio included investments
in 117 companies that generate aggregate annual revenues
of over $13 billion and employ more than 100,000 people.
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