Here are some notable Business Development Companies (BDCs) and related funds that UK investors may consider for exposure to this sector:

1. Ares Capital Corporation (ARCC)

• Overview: One of the largest BDCs, Ares Capital Corporation is known for its diversified portfolio and a strong track record in providing flexible financing options to middle-market companies.
• Key Features: High dividend yield and a reputation for stable management practices.

2. Main Street Capital Corporation (MAIN)

• Overview: Main Street focuses on providing long-term debt and equity to lower middle-market companies. It is known for its robust management and consistent monthly dividends.
• Key Features: Considered one of the highest quality BDCs, often favored for conservative investment strategies.

3. Prospect Capital Corporation (PSEC)

• Overview: This BDC targets a wide variety of financial investments in private companies, and it has a reputation for generous dividends.
• Key Features: Higher yield, though it carries more risk due to its investment strategy.

4. Blackstone Secured Lending Fund (BXSL)

• Overview: Managed by the Blackstone Group, this fund focuses on investing in senior secured loans and can provide diversification into the BDC space.
• Key Features: Attractive yield potential from high-quality assets.

5. Tcg Bdc, Inc. (TCPC)

• Overview: TCG BDC primarily invests in debt and equity of growth-oriented companies, providing a blend of income and potential capital appreciation.
• Key Features: Strong focus on delivering shareholder returns through regular dividends.

6. BlackRock TCP Capital Corp (TCPC)

• Overview: This BDC invests primarily in U.S. middle-market companies and aims to provide attractive risk-adjusted returns.
• Key Features: Focus on generating strong cash flows to sustain dividend payments.

ETFs and Investment Options

While direct BDCs can be purchased individually, UK investors can also consider BDC-focused funds or ETFs that provide a diversified exposure to several BDCs. Notable options might include:

• BDCS (WisdomTree BDC): An ETF that offers exposure to a portfolio of BDCs, minimizing individual investment risk while benefiting from the sector's growth potential.

Conclusion

Investing in BDCs can provide significant income opportunities through dividends, but it also involves risks, particularly related to credit and market fluctuations. As with any investment, it's essential for investors to conduct thorough research and consider their financial goals, risk tolerance, and potentially consult with financial advisors before investing.