The FTSE Private Credit BDC Composite Index combines listed and non-listed Business Development Companies (BDCs) into a single, rules-based benchmark. The index blends 30% listed BDCs, which are priced daily and weighted by market capitalization, and 70% non-listed BDCs, weighted by Net Asset Value (NAV). This hybrid structure provides transparent, diversified exposure to the private credit market, combining daily tradability with the economics of private direct lending.
BDCs are closed-end investment companies regulated under the Investment Company Act of 1940, established to facilitate the flow of capital to small and middle-market enterprises in the United States. BDCs provide public market access to private credit; namely, directly originated, floating-rate middle market loans with embedded illiquidity and complexity premia.
Since the 2008 Financial Crisis, BDCs have exploded in popularity as a conduit for private credit for retail and institutional investors alike. Private credit became mainstream as pension funds entered, insurance companies allocated capital, and sovereign wealth funds participated. The 2022 interest rate hikes accelerated this trend by constraining traditional bank lending and increasing demand for private, flexible sources of capital. As of June 2026, the total assets in private credit are estimated to be about $3.5 trillion, of which about $2 trillion is core direct lending and the strategies BDCs utilize.
The index is calculated in USD and published daily on a total return basis.
| Index Construction | Characteristics | |
| Listed BDCs: | Weighted by 𝑝𝑟𝑖𝑐𝑒 ×𝑠ℎ𝑎𝑟𝑒𝑠 ×𝑓𝑟𝑒𝑒 𝑓𝑙𝑜𝑎𝑡. Includes dividend adjustments on ex-date. | Realtime liquidity, price transparency, broad investor access |
| Non-listed BDCs: | Weighted by reported NAV. | NAV stability, not subject to public market sentiment, uncorrelated with equities |
| Composite index: | Index calculated as weighted average of 70% non-listed BDCs and 30% listed BDCs. | Captures exposure to full BDC universe |
| = Comprehensive private credit and BDC exposure via a single benchmark |
