I recently had a chance to speak with the CEO of Keating Capital (KIPO) to congratulate them on the recent announcement of another successful exit from a portfolio investment with healthy returns. KIPO is a boutique niche BDC that specializes in pre-IPO portfolio companies seeking capital for the purpose of going public. Personally, I only invest in BDCs with a large predictable income stream from quality debt investments but the distributions are usually taxed at the highest rate compared to BDCs like KIPO. This article discusses a BDC with a very different investment philosophy, how it works and recent validations, as well as the potential returns and associated risks.
KIPO Investment Philosophy
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