Ditto for a nationwide distributor of office equipment with $11 million in annual revenues looking for $5.4 million to recapitalize the company. And when an industrial-controls corporation needed $9.5 million to roll several sales-representative firms up into a larger company, it found the financing at a BDC.
Banks, under tougher regulations than ever, either would not or could not meet the financing needs for these representative, middle-market businesses.
Congress enacted legislation creating BDCs in 1980 as an amendment to the Investment Company Act of 1940. The idea was to create a regulated entity to focus on the capital needs of smaller, middle-market companies.
Few investors or CEOs have known what BDCs are and why they are advantageous to growing businesses, but that situation is changing. Since January 2007, BDCs have grown from 16 to 41 companies. They serve an estimated 65,000 businesses in the U.S. with revenues in the range of $20 million to $200 million; the overwhelming majority of these businesses are privately held and family owned. Such companies have significant capital needs; but, because they work in a fragmented marketplace, they are underserved by banks.
Here, then, are six reasons why BDCs are thriving and will continue to grow as a source of capital for smaller, middle-market companies and why CEOs should understand how valuable they are as a source of financing.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
