Palmer Square Capital BDC Inc. operates as an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. Headquartered in Mission Woods, Kansas, the company is managed by Palmer Square BDC Advisor LLC, an affiliate of Palmer Square Capital Management LLC. The firm's primary business model revolves around lending to and investing in corporate debt securities of small to large private companies in the United States.
Revenue is generated primarily through interest income and capital appreciation from its investment portfolio. The company's investment strategy focuses heavily on broadly-syndicated loans (BSLs) and, to a lesser extent, large-cap direct lending. Its portfolio predominantly consists of first lien senior secured debt investments, with smaller allocations to second lien debt, collateralized loan obligation (CLO) structured credit funds, and equity investments. By focusing on large, liquid loans with strong structural protections and disciplined credit underwriting, Palmer Square Capital BDC aims to maintain low concentration risk and stable risk-adjusted returns across multiple credit environments. The company differentiates itself by providing transparency through monthly net asset value (NAV) disclosures and a fee structure that charges management fees only on net assets rather than gross assets.
