Fidus Investment Corporation (NASDAQ: FDUS) is an externally managed, closed-end management investment company that operates as a business development company (BDC). Headquartered in Evanston, Illinois, the firm specializes in providing customized debt and equity financing solutions to lower middle-market companies in the United States. Fidus targets established, cash-flow-positive businesses generating predictable annual revenues between $10 million and $150 million, and EBITDA between $3 million and $30 million.
The company's investment portfolio is primarily composed of subordinated and second-lien debt, first-lien senior secured loans, and equity co-investments. Fidus generates 100% of its revenue from its investment portfolio, earning interest income from its debt investments, dividend income from equity holdings, and fee income from loan originations and refinancing. A key competitive advantage for Fidus is its operation of licensed Small Business Investment Company (SBIC) subsidiaries, which allow the firm to borrow long-term debentures from the U.S. Small Business Administration (SBA) at favorable rates, lowering its overall cost of capital. Fidus partners with business owners, management teams, and private equity sponsors to finance change of control transactions, recapitalizations, strategic acquisitions, and growth initiatives across a diverse range of industries, including business services, healthcare, information technology, and niche manufacturing.
