Loans to Small Businesses Make a Comeback

Investment firms form business development corporations to lend to smaller companies.

Lending to small U.S. businesses is making a comeback on Wall Street, with 12 investment firms arranging $1.38 billion of initial stock offerings to funnel cash to the nation’s biggest job creators.

Oaktree Capital Management LP, Crescent Capital Group LP and Churchill Financial Holdings LLC are forming so-called business development corporations, which typically lend to businesses with annual revenue of less than $500 million, according to filings with the U.S. Securities & Exchange Commission. The wave of BDCs is the largest in at least seven years, based on data from Ipreo Holdings LLC in New York.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.