Welcome to KCAP.
We are an internally managed, non-diversified closed-end investment company that is regulated as a business development company or "BDC" under the Investment Company Act of 1940. We have three principal areas of investment:
- Debt Securities Portfolio
- Asset Manager Affiliates
- CLO Fund Securities
We believe that we have significant advantages over other providers of capital in the markets in which we compete:
- Internally managed structure and significant management resources. We are internally managed by our executive officers under the supervision of our Board of Directors and therefore we do not pay investment advisory fees. All of our income is available to pay our operating costs, which include employing investment and portfolio management professionals, and making distributions to our stockholders.
- Multiple sourcing capabilities for middle market investments. We have multiple sources of loans, mezzanine investments and equity investments through our industry relationships.
- Disciplined investment process. We employ a rigorous credit review and due diligence process which our senior management has developed over an average of approximately 25 years of investing experience.
- Investments across a wide variety of industries. Our Debt Security Portfolio is spread across 25 different industries.
- Significant equity ownership and alignment of incentives. Our Directors and senior management team have a significant equity interest in the Company, ensuring that their incentives are strongly aligned with those of our stockholders.
- 100% ownership of Asset Manager Affiliates. Our CLO Fund investments and management of those securities through the Asset Manager Affiliates provide us with a competitive advantage by creating synergies with our investment operations and a source of recurring dividend cash flows.