medium · Private Credit fund-structures-returns-economics
A Business Development Company (BDC) reports total investment income of $120 million for the year. It incurs $30 million in interest expense, $20 million in management fees, and $10 million in other operating expenses.
If the BDC aims to maintain its RIC tax status and has $5 million in realized capital losses, what is the minimum distribution it must pay to shareholders based on its investment income?
- $49.5 million
- $60 million
- $54 million
- $108 million
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