Kayne Anderson BDC, Inc.
- Open
- 13.38
- Day high
- 13.73
- Day low
- 13.38
- Prev close
- 13.40
- Volume
- 307K
- Mkt cap
- $956M
- P/E (TTM)
- 12.5
- EPS (TTM)
- $1.09
- P/B
- 0.0
- P/S
- 4.8
- Yield
- 11.76%
- Per share
- $1.60
Kayne Anderson BDC, Inc. (KBDC) is a Financial Services company listed on NYSE. The stock is down 9% over the past year. Drillr has 1 published research article covering KBDC.
Kayne Anderson BDC, Inc. (KBDC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KBDC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.40 | $0.42 | +5.5% | $56M | +7.4% |
| May 12, 2026 | $0.41 | $0.43 | +4.9% | $57M | +9.4% |
| Mar 3, 2025 | $0.51 | $0.48 | -5.9% | $32M | -39.0% |
| Mar 30, 2024 | — | $0.43 | — | $46M | — |
| Dec 30, 2023 | — | $0.32 | — | $32M | — |
KBDC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 27, 2026 | ROBO JAMES Ldirector | Buy | 121,686 | $15.84 |
| Mar 9, 2026 | MARUCCI GEORGE E JRdirector | Buy | 9,000 | $13.74 |
| Mar 5, 2026 | MARUCCI GEORGE E JRdirector | Buy | 1,000 | $13.96 |
| Sep 30, 2025 | Smith Rhonda Scottdirector | Buy | 365 | $13.68 |
| May 30, 2025 | ROBO JAMES Ldirector | Buy | 43,020 | $15.84 |
| May 29, 2025 | Rabil Albertdirector | Sell | 43,020 | $15.84 |
| May 23, 2025 | Rabil Albertdirector | Sell | 10,000 | $15.76 |
| May 23, 2025 | Rabil Albertdirector | Sell | 5,000 | $15.65 |
| May 23, 2025 | Rabil Albertdirector | Sell | 314,465 | $15.90 |
Source: KBDC SEC Form 4 filings, latest Mar 27, 2026. For informational purposes only — not investment advice.
See the full KBDC insider & 13F page →KBDC research & analysis
Kayne Anderson BDC, Inc. company profile
Overview
Kayne Anderson BDC, Inc. (NYSE:KBDC) is a business development company that provides debt financing to middle-market companies in the United States. Founded as a specialized investment vehicle, the company focuses on lending to established businesses with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) between $10 million and $150 million. As a BDC, Kayne Anderson operates under specific regulatory requirements that mandate distributing substantially all of its net investment income to shareholders as dividends, making it an income-focused investment vehicle for investors seeking regular distributions from private credit investments.
Business
Kayne Anderson BDC operates in the private credit and middle-market lending industry, which serves as an alternative financing source for companies that are typically too large for traditional bank loans but too small for public bond markets. The company's core business involves providing senior secured loans and split-lien loans primarily to support private equity-backed buyout transactions. The company's investment portfolio consists of approximately 116 individual companies with a total fair market value of $2.2 billion in funded investments. The portfolio is heavily concentrated in first lien securities, which represent 90% of investments and provide the highest priority claim on borrower assets in case of default. Nearly 99% of the company's private middle-market investments are backed by private equity sponsors, meaning established investment firms have significant equity stakes in the borrowing companies. A key characteristic of Kayne Anderson's lending approach is that 100% of its debt investments carry floating interest rates, typically structured as spreads over the Secured Overnight Financing Rate (SOFR). This floating-rate structure helps protect the company's income from interest rate fluctuations, as loan yields adjust upward when benchmark rates rise. The company maintains a weighted average portfolio yield of approximately 10.4% and targets new investments with spreads of 500-600 basis points over SOFR. The company also maintains a smaller portfolio of broadly syndicated loans (approximately $113 million or 10% of the portfolio), which are larger, more liquid credit facilities typically arranged by major banks for larger companies. However, management has indicated a strategic shift toward reducing this exposure in favor of focusing on core middle-market private credit opportunities.
Revenue model
Kayne Anderson BDC generates revenue primarily through interest income from its loan portfolio, earning spreads over benchmark interest rates on the debt securities it holds. The company's floating-rate loan structure means that as interest rates rise, the yields on its investments increase correspondingly, providing natural protection against rate environments. With a current weighted average portfolio yield of 10.4%, the company generated $55.2 million in total investment income in Q1 2025. The company's customers are middle-market companies, typically those involved in private equity buyout transactions where established investment firms acquire controlling stakes in businesses. These borrowers use Kayne Anderson's financing to fund acquisitions, refinance existing debt, or support growth initiatives. The loans are generally secured by the borrower's assets and often include personal guarantees from private equity sponsors. As a Business Development Company, Kayne Anderson is required by regulation to distribute substantially all of its net investment income to shareholders as dividends. The company currently pays a regular quarterly dividend of $0.40 per share and has been paying additional special dividends of $0.10 per share, reflecting strong earnings performance. Several factors influence the company's profitability margins. Rising interest rate environments generally benefit the company since its floating-rate loans reprice upward, increasing net interest margins. Credit quality remains crucial, as the company currently maintains only 1.6% of its debt investments on non-accrual status, indicating strong borrower performance. Market competition for middle-market lending can compress spreads during periods of abundant capital, while economic downturns can increase default rates but may also reduce competition and widen spreads on new originations. The company's focus on private equity-sponsored transactions provides some stability, as these borrowers typically have professional management and access to additional capital from their sponsors during challenging periods.
Competitive moat
Kayne Anderson BDC operates in a moderately competitive but relationship-driven industry where its moat is primarily built on origination capabilities and credit expertise rather than structural competitive advantages. The company's relationship with private equity sponsors and its track record in middle-market lending provide some competitive positioning, as successful lending relationships often lead to repeat business and referrals within the private equity community. The middle-market lending space has attracted significant capital in recent years, with numerous BDCs, direct lending funds, and alternative credit managers competing for similar opportunities. This increased competition has generally compressed spreads and made it more challenging to maintain pricing discipline. However, the company's focus on maintaining credit standards and targeting spreads of 500-600 basis points over SOFR suggests management is attempting to balance growth with profitability. The company's floating-rate loan structure provides some defensive characteristics during rising rate environments, but this is a common feature among BDCs rather than a unique competitive advantage. The regulatory structure requiring dividend distributions limits the company's ability to retain capital for growth, making it dependent on external financing or equity raises to expand significantly. Potential disruption comes from several sources: increased competition from larger direct lending funds with more capital, potential regulatory changes affecting BDCs, and economic downturns that could significantly impact credit performance. Additionally, if interest rates decline substantially, the company's floating-rate structure could become a headwind rather than a tailwind. The company's relatively small size compared to some larger direct lending competitors may limit its ability to participate in the largest transactions, though this also helps it avoid some of the more competitive dynamics in that market segment.
Risks & safety
The company maintains a moderate margin of safety with manageable leverage and strong liquidity, though typical BDC structural limitations apply. • Debt and Leverage: Debt-to-equity ratio of 0.86x as of Q1 2025, below management's target range of 1.0-1.25x, providing room for additional leverage if needed • Liquidity: $17.4 million in cash and short-term investments with $236 million in unfunded commitments that could be drawn upon • Credit Quality: Only 1.6% of debt investments currently on non-accrual status, indicating strong portfolio performance • Valuation: Trading at approximately 0.97x book value, near net asset value of $16.51 per share • Dividend Coverage: Net investment income of $0.40 per share covers the regular dividend, with additional spillover income of $0.22 per share • Portfolio Diversification: 116 individual companies with average position size of 0.9% of fair value, limiting single-name concentration risk • Interest Rate Protection: 100% floating-rate investments provide natural hedge against rising rate environments
Recent development
Over the past few years, Kayne Anderson BDC has pursued several strategic initiatives to optimize its portfolio composition and capitalize on favorable market conditions. The company has been actively rotating out of broadly syndicated loans in favor of core middle-market private credit opportunities that offer higher spreads and better risk-adjusted returns. This shift reflects management's view that direct lending to middle-market companies provides superior economics compared to participating in larger, more commoditized syndicated credit facilities. The company has significantly increased its origination activity, with Q1 2025 showing $340 million in total commitments across 16 businesses, representing strong deployment of capital in attractive risk-adjusted opportunities. Management has maintained pricing discipline by targeting spreads of 500-600 basis points over SOFR for new investments, even as market competition has intensified. Leverage optimization has been another key focus, with management targeting a debt-to-equity ratio of 1.0-1.25x by Q2-Q3 2025, up from the current 0.86x. This measured approach to leverage allows the company to enhance returns while maintaining prudent risk management. The company has also enhanced its dividend policy by supplementing regular quarterly dividends of $0.40 per share with special dividends of $0.10 per share, reflecting strong earnings performance and providing additional income to shareholders. Recent market conditions have been favorable for the company's strategy, with sponsor middle-market volumes increasing 96% compared to Q4 2023, providing abundant origination opportunities. Management has indicated that spreads are showing signs of stabilization after a period of compression, which should support future profitability.
KBDC company profile · for informational purposes only — not investment advice.
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