Perpetual BDC
Private Credit glossary · Fund Structures, Returns & Economics
Definition
Continuously offered BDC with periodic share repurchases at NAV; structurally similar to interval funds.
Perpetual BDC in plain English
A BDC (Business Development Company) is a fund that pools investors' money to lend to mid-sized private companies. A "perpetual" BDC is one that never closes to new money — it keeps selling shares continuously rather than raising a fixed pot once and shutting the door. Because it isn't traded on a stock exchange, it instead offers to buy your shares back only at set times (say, quarterly) and at its net asset value (NAV — basically the fund's per-share worth). That periodic buyback-at-fair-value design makes it work much like an "interval fund," giving investors a limited, scheduled way to cash out rather than an instant one.
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