Main Street Capital Corporation (MAIN), American Capital Ltd. (ACAS), Prospect Capital Corporation (PSEC): Why You Shouldn’t Ignore This Industry

Business development companies are active debt and equity investors that make deals with businesses that are too small to get attention from big investors. That’s a corner where it makes sense to have an active manager making decisions on your behalf.

The Foolish bottom line

Bigger isn’t always better. Investing in BDCs is a sure-fire way to get access to leading companies that may be Wall Street’s next hot IPO-companies that you can’t own unless you have millions of dollars and connections to create your own opportunities. For the little guy — the individual investor — there may be no better way to get your foot in the door of private equity than to add a few high-yield private equity companies to your portfolio.

The article 5 Reasons You Shouldn’t Ignore This Industry originally appeared on Fool.com and is written by Jordan Wathen.

Fool contributor Jordan Wathen has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Citigroup, Facebook, JPMorgan Chase, and LinkedIn. 

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