Kayne Anderson BDC, Inc. (“KBDC”) was formed to make investments in middle-market companies and commenced operations on February 5, 2021. KBDC is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940.
Investment Objective and Strategy
KBDC’s investment objective is to generate current income and, to a lesser extent, capital appreciation. We intend to achieve our investment objective by investing primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies.
Under normal market conditions, we expect at least 90% of our portfolio (including investments purchased with proceeds from borrowings under credit facilities and issuance of senior unsecured notes) to be invested in first lien senior secured, unitranche and split-lien loans. We expect that a majority of these debt investments will be made in core middle market companies and will generally have stated maturities of three to six years. We expect that the loans in which we principally invest will be to companies that have principal business activities in the United States.
We intend to execute on our investment objective by (1) accessing the established loan sourcing channels developed by Kayne Anderson’s middle market private credit platform (“KAPC” or “Kayne Anderson Private Credit”), which includes an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2) selecting investments within our middle market company focus, (3) implementing KAPC’s underwriting process and (4) drawing upon its experience and resources and the broader Kayne Anderson network.
Kayne Anderson
KA Credit Advisors, LLC (the “Advisor”) is an indirect controlled subsidiary of Kayne Anderson and operates within KAPC’s line of business. The Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments and monitoring our investments and portfolio companies on an ongoing basis. The Advisor benefits from the scale and resources of Kayne Anderson and specifically KAPC.
Founded in 1984, Kayne Anderson is a prominent alternative investment management firm which is a registered investment adviser, focused on real estate, credit, energy infrastructure and energy. Investment vehicles managed or advised by Kayne Anderson had $36 billion in assets under management as of 3/31/24 for institutional investors, family offices, high net worth and retail clients. Kayne Anderson has over 350 professionals located in five offices across the United States. Kayne Anderson has 150 investment professionals, of which approximately 35 are dedicated to credit investing.
Learn more about Kayne Anderson’s Credit Strategy