Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Grommit who wrote (47857)	5/8/2012 6:42:48 PM
From: Paul Senior	2 Recommendations Read Replies (1) of 78708

Afaik and in my experience, it seems that all these bdc's are structured so that the managers/insiders who do all these deals get a VERY substantial piece of the action. As in bonus when loan is made, large profit percentage if bdc sells warrants or stock in a company that's been on the bdc books, etc. Sometimes (or more?) there's no financial risk to the managers themselves if the deals don't work out. Certainly a troubling aspect of this business. I can tolerate it if the dividend/distribution is high enough, seems safe enough, and if the managements aren't giving me my own money back again (i.e. if return of capital is a big component of the distribution.)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next