Direct lenders in the US middle market

• 成果类型: Article
• 署名作者: Davydiuk, Tetiana; Marchuk, Tatyana; Rosen, Samuel
• 署名单位: Johns Hopkins University; BI Norwegian Business School; Centre for Economic Policy Research - UK; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103946
• 发表日期: 2024
• 关键词: Business development companies; Direct lending; private debt; Middle market; Economic growth

摘要

This paper studies the rise of direct lending using a comprehensive dataset of investments by business development companies (BDC). We exploit three exogenous shocks to credit supply, including new banking regulations and a major finance company collapse, to establish that BDC capital acts as a substitute for traditional financing. Using firm-level data, we further document that firms' access to BDC funding stimulates their employment growth and patenting activity. Beyond credit provision, BDCs contribute to firm growth through managerial assistance.