Asset ManagerRIA · CRD 155697SEC-RegisteredPrivate Fund Adviser

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Palmer Square Capital BDC

Palmer Square Capital BDC Inc. was formed in 2019 as the publicly traded business development company arm of Palmer Square Capital Management, the Mission...

Palmer Square Capital BDC

Palmer Square Capital BDC Inc. was formed in 2019 as the publicly traded business development company arm of Palmer Square Capital Management, the Mission Woods, Kansas-based credit manager founded in 2009. Christopher D. Long serves as Chairman, President, and CEO of the BDC, which functions as a permanent capital vehicle designed to originate and hold middle-market senior secured loans, mezzanine debt, and select CLO equity positions. The BDC's investment strategy centers on private credit origination alongside opportunistic participation in broadly syndicated leveraged loans, structured credit, and collateralized loan obligation tranches. The portfolio spans direct lending to sponsor-backed middle-market companies and secondary purchases of debt instruments. Geographic coverage is concentrated in North America. Holdings have included allocations to technology, healthcare, and business services credits, though the firm's SEC filings emphasize diversification across issuer, sector, and vintage. The underlying manager's broader complex managed roughly $30 billion across CLOs, private funds, and separately managed accounts as of recent public disclosures, providing the BDC with origination flow from the manager's existing sponsor relationships. Public filings place the BDC's net asset value in the hundreds of millions. As an externally managed BDC, the firm delegates investment decisions and administrative functions to Palmer Square Capital Management under an investment advisory agreement. The parent platform operates from the Kansas City metropolitan area. In May 2024, Palmer Square Capital BDC announced a supplemental distribution of $0.05 per share in addition to its regular quarterly dividend, signaling confidence in portfolio income generation (per the firm's press release, May 2024). The BDC frequently raises capital through at-the-market equity offerings to fund portfolio growth. Palmer Square Capital BDC's structural differentiator is its access to a deep private credit origination engine housed within a multi-strategy credit platform, paired with the liquidity profile of a publicly traded BDC. This architecture allows the vehicle to compete with direct lenders for middle-market deals while offering daily liquidity to public shareholders—a combination that distinguishes it from both traditional private credit funds and internally managed publicly listed peers.

General information

Firm type

Asset Manager

Year founded

2019

AUM

Undisclosed

Location

Region

North America

Country

United States

City

Mission Woods

Corporate office

Mission Woods, KS, United States

Principals

Christopher D. Long

Chairman, President and Chief Executive Officer

Sector focus

Private CreditLeveraged FinanceSecondaries & Special Situations

Frequently asked questions

What is Palmer Square Capital BDC's relationship to Palmer Square Capital Management?

Palmer Square Capital BDC is an externally managed business development company whose investment adviser is Palmer Square Capital Management, a Kansas-based credit manager founded in 2009. The BDC relies on the manager for origination, portfolio management, and administrative services under a formal investment advisory agreement. This external structure means the BDC pays management and incentive fees to the adviser.

How does Palmer Square Capital BDC source its deal flow?

The BDC sources deal flow primarily through the sponsor relationships and origination capabilities of its investment adviser, Palmer Square Capital Management, which has historically managed mandates across institutional CLOs, private funds, and separate accounts. The underlying manager's scale in broadly syndicated loan markets also provides visibility into primary and secondary debt opportunities that the BDC can act upon.

What asset classes does Palmer Square Capital BDC invest in?

The BDC invests primarily in first-lien senior secured loans to middle-market companies, along with second-lien loans, mezzanine debt, and structured credit instruments including CLO equity and junior debt tranches. The portfolio is weighted toward floating-rate credits and is diversified across sponsor-backed companies in industries including technology, healthcare, and business services.

Is Palmer Square Capital BDC focused on direct origination or secondary market purchases?

The BDC does both. Its core strategy involves direct origination of senior secured loans to sponsor-backed middle-market companies, but the portfolio also includes secondary purchases of broadly syndicated loans and structured credit instruments when the adviser identifies relative value. This dual approach allows the BDC to deploy capital across different credit market conditions.

Who runs investment decisions at Palmer Square Capital BDC?

Christopher D. Long serves as the BDC's Chairman, President, and CEO. Investment decisions are executed by the investment adviser, Palmer Square Capital Management, where Long and the broader investment team manage portfolio construction. As an externally managed BDC, ultimate authority for individual credit selection resides with the adviser's investment committee.

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