BDC Investments

view of a skyscraper and the skyFinancial Planning Using BDCs

When a small business is trying to find capital in order to grow, they have a number of funding options. One of their options is a Business Development Company, or a BDC. A BDC functions very similarly to a venture capital fund, but they are publically traded companies. Many investors can invest in a BDC, thus they are also investing in a number of different startups. The investors will receive dividends from the profits that the BDC has invested in. The BDC chooses which businesses to invest in, so they choose businesses that they believe are worthwhile investments.

Investment Planning and BDCs

Since a BDC will invest in many different companies, an investment in a BDC is already a diversified investment. A BDC vets the businesses that they invest in and will not invest unless they believe it will be a profitable business. This process helps to ensure that the investors do not lose their investment. It is important to note that there is some risk involved, just as with every other type of investment.

Our Certified Financial Planners©

When you are planning your investment, it is important to discuss your ideas with a financial consultant. We can advise you on the best investments for your financial goals. Our financial advisors place a high priority on education and helping their clients understand how to manage their wealth. We are prepared to answer any questions you may have about investment planning.

Give us a call to discuss alternative investments with our certified financial planners©.