Private credit: convergence unlocks conviction

What is a Business Development Company (BDC)?

Business Development Companies (BDCs) are a closed-end investment vehicle created by the US Congress in 1980 via the Small Business Investment Incentive Act – an amendment to the Investment Company Act of 1940 – that facilitated the flow of capital to small and mid-sized businesses that lacked access to traditional bank financing or public capital markets.

What makes BDCs different?

All BDCs – whether listed, non-traded, or private – are required to file quarterly (Form 10-Q) and annual (Form 10-K) reports with the SEC under the Securities Exchange Act of 1934. These filings contain loan-level holdings data, offering a level of transparency that standard closed-end private credit funds are not required to provide publicly.

Why does private credit need better data and analytics?

Private credit has become a core allocation and continues to grow rapidly — projected to reach $4.5 trillion by 2030*. But at the same time it lacks transparency into underlying exposures, risk, and performance. Data is fragmented, valuations rely on manager marks that can be months out of date, and information is not structured for meaningful analysis. What's missing is a connected view that brings exposures, risk, performance, and valuation together in a single, consistent framework.

*Source: According to Preqin's Private Markets in 2030 report

How does Preqin's private credit offering differ from other providers?

Preqin delivers a connected private credit platform – not just a dataset. By integrating proprietary transaction intelligence across all major private credit strategies, standardized loan-level BDC holdings data extracted from SEC filings, analytics, BDC loan indices, and private credit research within a single workflow, Preqin enables users to move from market-level trends to loan-level detail within one consistent view.

What are the Preqin BDC Loan Indices?

The Preqin BDC Loan Indices are rules-based, asset-level benchmarks built from underlying loan data across BDC portfolios. The index family covers 128 BDCs, over 22,000 loans, and $352 billion in capitalization – with sub-indices segmented by BDC type (listed, non-listed), market cap, and market segment.

How can I get access to Preqin Private Credit?

Preqin Private Credit is available through the Preqin Pro platform. To explore the data or discuss how it applies to your specific workflows, book a demo or contact your Preqin account manager.