67 WALL STREET, New York - June 24, 2013 - The Wall Street Transcript has just published its Business Development Companies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Consistent BDC Dividend Yield - BDC Risk/Reward Profile - Higher Dividend Yields - Business Development Companies Historical Overview
Companies include: Fidus Investment Corporation (FDUS) and many more.
In the following excerpt from the Business Development Companies Report, the Chairman and CEO of Fidus Investment Corporation (FDUS) discusses company strategy and the outlook for this vital industry:
TWST: Could you characterize briefly the profile of your loan book? What size spectrum of funding are you providing; what number of deals can you handle? How do you manage risks?
Mr. Ross: Today our portfolio is almost $300 million in size, and is comprised of 75% subordinated debt, 12% senior debt and 13% equity and warrant securities, on a cost basis. We have no loans on nonaccrual, and the fair value of our investment portfolio is 105% of cost. Our portfolio is spread across investments in 32 companies and across 23 different industry niches. We generally invest $5 to $15 million in a portfolio company, typically in the form of subordinated debt coupled with some form of an equity investment.
Preservation of capital is a major focus of ours as investors, and as such we spend a lot of time on risk management. For us it starts with investing in companies that meet our investment criteria. Our first priority is partnering with management teams that are experienced and have a track record of success. Second, we like to invest in industry sectors where we have prior experience.
Third, we focus on companies that we believe will perform well over the long term, that generate excess cash flow for debt repayment and investment, and have a track record of doing so. And lastly, since we structure a large majority of our investment capital as debt, we ensure a significant...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.