Kayne Anderson BDC, Inc. (NYSE: KBDC)

Kayne Anderson BDC, Inc. is a Delaware corporation formed on February 5, 2021 to operate as an externally managed, closed end, non diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The firm intends to qualify annually as a regulated investment company under Subchapter M of the Internal Revenue Code and makes its primary investments in first lien senior secured loans, with a secondary emphasis on unitranche and split lien loans to private middle market companies located in the United States. It commenced operations on its formation date and completed its initial public offering in May 2024, after which its common stock began trading on the New York Stock Exchange under the ticker symbol KBDC.

Revenue is derived principally from interest and fee income on the debt securities it holds, which include first lien senior secured, unitranche and split lien loans to middle market borrowers. Additional income may arise from capital gains on equity investments, dividend income, and limited amounts of second lien, subordinated debt or equity securities. The company’s investment policy calls for at least 90% of its portfolio, including investments funded through credit facilities and senior unsecured notes, to be placed in first lien senior secured, unitranche or split lien loans, with the remainder allocated to lower ranked debt or equity. Earnings are distributed to shareholders as quarterly or annual dividends, with the board targeting a payout ratio of 90% to 100% of available earnings each year.

Within the business development company landscape, Kayne Anderson BDC competes with other BDCs, private credit funds, commercial banks and specialty finance companies that also lend to U. S. middle market enterprises. The firm’s competitive advantages arise from its affiliation with Kayne Anderson Private Credit, a platform that manages roughly 7.3 billion in middle market private credit assets and provides an extensive network of private equity sponsors, intermediaries and management teams. Its investment team, led by executives with combined credit experience exceeding ninety years, benefits from a disciplined underwriting process, a relationship based sourcing model that yields a high proportion of proprietary deal flow, and a track record of low realized loss rates, which together enable it to source and structure loans on favorable terms.

The company’s borrowers are private middle market enterprises, generally defined as those generating between 10 million and 150 million of annual EBITDA, and they span a variety of sectors including financial services, food products, household goods, containers and packaging, aerospace and defense, and commercial services. As of December 31, 2025, its ten largest portfolio companies represented approximately 19.7 % of the total fair value of its long term investments and included SGCP Intermediate, Inc. (SG Credit), BR PJK Produce, LLC (Keany), CREO Group Inc. (HMS Manufacturing), WCHG Buyer, Inc. (Handgards), Vitesse Systems Parent, LLC, M2S Group Intermediate Holdings, Inc., Carton Packaging Buyer, Inc. (Century Box), IF&P Foods, LLC (FreshEdge), BLP Buyer, Inc. (Bishop Lifting Products), and Improving Acquisition LLC.