Business Development Company (BDC)

A BDC is a type of closed-end fund that makes investments in small and medium-sized companies, as well as distressed companies.

Many BDCs are publicly traded and are open to retail investors. Some are sold via a Private Placement Memorandum (PPM). Most BDCs issue loans or purchase stocks or convertible securities from the companies they invest in.

This type of investment can give the shareholder access to a higher income stream. You also don’t need to be an accredited investor and liquidation can usually occur quarterly.

The high risk to this type of investment is the size of the underlying companies and how the projected outcome should materialize. Understanding the risks and your tolerance should be fully explored before investing.


Frontier Wealth Strategies performs a thorough due diligence review on all investment opportunities to understand the risks and rewards before sharing them with our clients. Once we have identified an appropriate opportunity, we only recommend investing after we understand your needs and values, ensuring we can match the best investment opportunity for you. 

As with all investments, there is a risk. Understanding the risk associated with an investment and your tolerance and time frame is important to us at Frontier Wealth Strategies. A discussion of the finer points of each opportunity should be thoroughly explored before investing.

Engaging with your advisor, CPA, accountant, and legal counsel is advised before making any decision

Frontier Wealth Strategies does not work on commission for any of our investment opportunities.