Business development companies or BDCs provide financing to smaller companies that are under-served by banks. This often includes “mezzanine loans” that pay high interest rates.
One such BDC, Horizon Technology Finance's (NASDAQ: HRZN) portfolio is expanding in asset size, which is leading to more client diversification and this, despite specializing in just two industries which are technology and life sciences.
Moreover, in terms of management model, Horizon is classified as an externally managed BDC compared to those which are internally managed like Hercules Capital (HTGC).
Now, there are many arguments in favor