how does a bdc make money 
business development companies can make money in several different ways one of the most common is to purchase equity from the companies they provide funding for and sell it when it appreciates if a bdc buys convertible bonds from a company it has invested in it can receive yields from the bonds and later convert them to equity once converted the equity can be held for appreciation or sold for capital gains lending is another way bdcs make money similar to a consumer borrowing from a bank a bdc charges interest on the loans it makes 