The BDC Platform

With $5.2 billion in assets, 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 raise capital in the capital markets and invest that money primarily in small and mid-sized private companies.

In addition to providing financing, BDC regulations require the BDC to maintain a conservative capital structure, provide transparency through periodic public reporting, and restrict transactions with certain affiliates.  BDCs also offer managerial guidance and resources to help their portfolio companies grow.  Individual investors in a BDC benefit by having the chance to invest in private equity through a transparent, publicly traded stock that typically pays a cash dividend.

Consistent with Congress’ mandate, over the years, Allied Capital has financed thousands of small and middle market companies across the United States.  At December 31, 2007, Allied Capital’s portfolio included investments in 120 companies that generate aggregate annual revenues of over $13 billion and employ more than 95,000 people.