 Under the legislation, a BDC must invest at least 70% of its assets in nonpublic US companies with market value less than $250M.Moreover, like REITs, as long as 90% or more of the BDC’s income was distributed to investors, the BDC would not be taxed at the corporate level.While BDCs are allowed to invest anywhere in the capital structure, the vast majority of the investment has been debt because BDCs typically lever their equity with debt (up to 2X their equity), and fixed income investing supports their debt obligations.