Bank consolidation is creating a growing need for BDCs:

  • There are approximately 4,700 fewer domestic banks today than there were 20 years ago.1

  • The participation rate of the remaining banks has been reduced from approximately 70% to approximately 10%.1

  • The cost of debt capital in the middle market is generally higher than in the large market, which typically results in more attractive yields to middle market lenders.

1) Bank Consolidation and Market Share in Non-Investment Grade Lending: FDIC Commercial Bank Reports – Number of Institutions, Branches and total offices; and Standard & Poor’s Q1 – 2013 High End Middle Market Lending Review.