What is a BDC?
Business Development Companies, or BDCs as they’re commonly known, are defined by the SEC as a category of closed-end funds that operate for the purpose of making investments in small, developing or financially troubled companies. Typically registered under the Investment Company Act of 1940, most BDCs are publicly traded and must maintain at least 70% of the total assets in eligible investments. What makes BDCs so unique is that any shareholder can take part in open trade, while investment managers benefit from access to an evergreen source of capital.
Why do BDC’s require asset valuations?
BDCs require asset valuations for several reasons, but most notably as part of their quarterly reporting, in which fair value measurements are made to reflect any unrealized losses or gains on income statements. Since BDCs require the reporting of investments at fair value, company boards and internal auditors generally rely on third-party valuation firms to validate fair value measurements and ensure the valuations are generated in accordance with the “FASB’s Accounting Standards Codification.”
Why Do BDC’s Choose Murray Devine?
Murray Devine has been providing valuation services to the country’s most respected Business Development Companies since 2005. Today, Murray Devine provides valuation services to BDCs with combined assets totaling over $10.5 billion
Our BDC expertise, coupled with our absolute focus on valuation, equips Murray Devine clients with access to independent, timely, cost-efficient, and well-supported valuations that withstand the strictest scrutiny.
As specialists, we provide BDCs with unmatched valuation service.