Tightening of regulation in the banking sector following the Financial Crisis of 2007-2008 has contributed to a surge of direct lenders and, in particular, business development companies (BDCs). We hand-collect a novel investment-level dataset to provide the first systematic analysis of the BDC...

The 2006 change in the disclosure requirements for "Acquired Fund Fees and Expenses" (AFFE) led to the exclusion of business development companies (BDCs) from major stock indexes in 2014, constituting a contractionary shock to the flow of equity capital into publicly traded BDCs. In a...