Key Takeaways & Implications

Public BDCs offer liquidity and accessibility, with their relative attractiveness increasing when trading at discounts to NAV. We see current discounts of ~20% on average, and 25–30% in certain cases, as a potential path to introduce both income enhancement and downside protection.

Private BDCs and interval funds offer stability but typically lack the embedded convexity of discount-driven entry points. Liquidity gates may dampen volatility but can constrain flexibility during periods of stress.

Institutional funds and SMAs provide strong structural alignment and moderate convexity, albeit with illiquidity and J-curve considerations.

Secondary purchases are thematically aligned with public BDC discounts: both involve acquiring exposure below NAV, embedding convexity and enhancing downside protection.