BDCs to Buy – KCAP Financial (KCAP)
KCAP Financial (KCAP) invests in companies with between $7.5 million and $50 million of EBITDA. KCAP focuses on mid-market lending, buyout funding and mezzanine investments. The currently have investments in 93 different companies spread across 24 different industry groups.
KCAP’s average loan is just $3.8 million. The majority of their investments and loans are floating rates, so they would see an income and dividend increase from higher interest rates.
KCAP stock is trading just above net asset value, and it currently yields 12.6%.
As of this writing, Tim Melvin was long AINV.