Key Takeaways

1. Access structure materially affects risk and convexity. Public BDCs, private BDCs/interval funds, institutional funds, and secondary purchases each offer different combinations of liquidity, transparency, fee drag, downside protection, and return potential.

2. Discounts to NAV embed convexity. Public BDCs currently trading at ~20% average discounts (with some 25–30%) introduce both yield enhancement and potential re-rating upside, similar to secondary fund purchases acquired below NAV.

3. Secondary purchases and public BDC discounts are thematically aligned. Both structures allow investors to acquire exposure at a margin of safety, mitigating J-curve effects and embedding downside protection.

4. Structure should reflect portfolio objectives. Liquidity needs, scale requirements, fee sensitivity, and desired convexity will determine which access point is most appropriate within a broader private credit allocation.