2 BDCs That Qualify For The Retirement Income League

May 23, 2025 1:03 PM ETMAIN, KBDC34 Comments
Roberts Berzins, CFA
10.26K Followers
(7min)

Summary

  • Business development companies, or BDCs, are inherently risk-on assets that operate in a volatile segment (private credit).
  • In most cases they do not go well together with retirement income portfolios.
  • Yet, there are some rare exceptions.
  • In this article, I discuss 2 BDCs, which, in my view, qualify for retirement income strategies (or any durable income portfolios).

Coins stack with balance scale. Money management, financial plan, time value of money, business idea and Creative ideas for saving money concept.

sommart

Typically, BDCs (or business development companies) are not associated with retirement income investing. This is because the level of risk that is embedded in the BDCs is simply too high for what could be considered prudent in the context of retirement income.

This article was written by

10.26K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KBDC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Related Stocks

SymbolLast Price% Chg
MAIN--
Main Street Capital Corporation
KBDC--
Kayne Anderson BDC, Inc.

Related Analysis