FYI: The Taube twins, Seth and Brook, make money the old-school bankers’ way: They lend it. But the Taubes don’t run a bank. What they run are business development companies, firms that ply the booming trade of private loans.
BDCs have been around since the 1990s. Similar to closed-end mutual funds or real estate investment trusts, they usually trade as stocks, but each one is essentially a portfolio of investments. In the case of BDCs, the investments are loans to companies. Lately, they’ve spread like kudzu as investors’ appetite for private lending has grown. About 90 of them now sit atop a combined $97 billion. That’s more than double their assets five years ago.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-11-06/looking-for-higher-yields-try-lending-money?srnd=fixed-income
