TCG: Why I Bought Carlyle Group's BDC Currently Yielding 21%

This article is a follow-up to "Picking Winners And Losers In The 18% Yielding BDC Sector" that discussed GAIN, which is up almost 20% over the last two weeks.
This article discusses CGBD, which up 25% since my purchases last week, but likely headed higher, potentially another 50%, but I might sell at some point along the way.
The CEO and CFO were actively purchasing additional shares. The stock is currently yielding 21% and the company provided preliminary results for Q1 with adequate coverage for the quarter.
Article Follow-Up
As mentioned earlier this month in "Picking Winners And Losers In The 18% Yielding BDC Sector," Business Development Companiescontinue to trade at depressed values for many reasons including being considered small cap, financial sector, and high yield, all of which have been subject to indiscriminate selling. Also discussed was assessing which BDCs will outperform using Gladstone Investment (GAIN) as an example, which up almost 20% since the article came out.

This article discusses TCG BDC Inc. (CGBD) which is a BDC that I sold last year for the reasons discussed in previous articles at an average price of $14.25. However, I purchased shares last week at $6.04 for the reasons discussed in this article and the stock is up 25% since my purchase.


CGBD is externally managed by Carlyle GMS Investment Management and part of the Carlyle Group, which is a global alternative asset manager with $222 billion of AUM across ~360 investment vehicles providing CGBD access to scale, relationships, and expertise, which has advantages including incremental fee income and higher investment yields.
As mentioned in previous articles, many of the largest asset managers have been actively entering into the sector including BlackRock, Goldman Sachs Group, Franklin Templeton, The Blackstone Group, Barings, Apollo, The Carlyle Group, Ares Management Corporation, KKR & Co. Inc., Oaktree Capital Management, TPG Capital, and... Read more