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.