Simply put, downturns are wonderful for private equity groups. With chaos in the system, smart private equity (PE) firms and management teams are able to swoop in and capitalize on these downturns to pick up deals. However, they don’t always have the capital they need to get the deal done. And that’s where our Best Monthly Dividend Stocks pick and its investors come in!
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
Our pick is structured as a business development company (BDC). However, rather than only lend money for expansion or working capital, it provides cash to assist in management and PE-led buyouts. This combination of buyout support plus funding to fuel expansion is a unique niche that not many BDCs operate in.
Better still is that our pick will often take an equity stake in the buyout-led funding. This gives it a seat at the table and helps it drive business decisions providing advice on direction of growth. And it also ensures that its loans get paid.
And as a BDC, the result for investors is a high yield. As a pass-through entity, our pick produces a market-beating dividend, perfect for income seekers looking to boost their own capital.
