Direct answer
BDCs focus specifically on private credit and are legally required to distribute at least 90% of taxable income to shareholders, making them highly effective yield generators compared to growth-oriented equity funds.
BDCs are specifically focused on private credit (lending money to middle-market companies) and are structured to generate high income. By law, BDCs must distribute at least 90% of their taxable income to shareholders, making them highly effective yield generators compared to growth-oriented equity funds.
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