Bain Capital CreditLP has secured more than $500 million in equity commitments for itsdebut business development company, giving it the ability to finance over $1 billionin investments, The Wall Street Journal reportedOct. 6.
The business can make such an investment because of rules thatallow BDCs to borrow the same amount it collects in equity.
Bain Capital's BDC plans to lend money to small and midmarketcompanies with annual EBITDA of between $10 million and $150 million, the news outletsaid. The business may also invest in mezzanine and other junior securities or purchaseassets or portfolios as it deems fit.
BDCs are required to invest at least 70% of their capital intoU.S. midmarket companies. Bain Capital has earmarked the remaining 30% for overseascompanies in Europe or Australia, according to the report.