Non-Traded BDC
Private Credit glossary · Fund Structures, Returns & Economics
Definition
Business Development Company whose shares are not exchange-listed, sold via broker-dealer networks with limited liquidity (typically quarterly tender offers).
Non-Traded BDC in plain English
A BDC (Business Development Company) is basically a company you can invest in that pools everyone's money and lends it out to mid-sized businesses. A 'non-traded' BDC is one whose shares you can't buy or sell on a normal stock exchange — instead you buy in through a broker, and getting your money back out is hard. Usually the only exit is a 'tender offer' every few months, where the fund offers to buy back a limited number of shares. The trade-off: you might earn steady income, but your money is far less liquid — like putting cash in something you can only cash out four times a year, and even then only partway.
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