Kayne Anderson BDC invests $126 million in SG Credit Partners

CHICAGO - Kayne Anderson BDC, Inc. (NYSE:KBDC), a business development company with a market capitalization of $1.14 billion and notable 9.96% dividend yield, announced Tuesday it has made a $126 million investment in SG Credit Partners, Inc., a national credit platform focused on the lower middle market.

The investment includes an $80 million term loan facility, a $34 million delayed draw term loan facility, and a $12 million common equity investment, according to a company press release. Following the transaction, KBDC will become a significant minority shareholder in SG Credit. According to InvestingPro data, while KBDC maintains a Fair financial health rating, analysts have recently revised their earnings expectations downward for the upcoming period.

SG Credit, established in 2013, has invested in more than 200 companies and originated over $1 billion in commitments across its lending verticals in Commercial Finance, Consumer Products, and Software & Technology. The company operates from offices in Newport Beach, Santa Monica, Atlanta, Boston, and Chicago.

"This is a key strategic opportunity for KBDC and highlights our commitment to growing our portfolio with value-enhancing investments," said Doug Goodwillie, Co-Chief Executive Officer of KBDC.

KBDC expects the debt investment to be immediately accretive to earnings in 2025. The transaction will complement KBDC’s middle market investing strategy by diversifying its proprietary investment channels.

Marc Cole, Co-Founder and Chief Executive Officer of SG Credit, said the partnership will support the company’s growth and enable it to offer financing solutions to a wider range of companies.

Fenchurch Advisory Partners US LP is serving as financial advisor to KBDC, while Solomon Partners is advising SG Credit on the transaction.

Kayne Anderson BDC is externally managed by KA Credit Advisors, LLC, a subsidiary of Kayne Anderson Capital Advisors, LP. It primarily invests in first lien senior secured loans to middle market companies. With its stock trading at $15.98, between analyst targets of $16-17, investors can access detailed valuation analysis and additional insights through InvestingPro’s comprehensive research reports, which cover over 1,400 US stocks including KBDC.

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