Palmer Square Capital BDC Inc (NYSE: PSBD) is a business development company that provides debt financing to middle-market and other companies through a portfolio of credit investments. It earns income primarily through interest on loans and other debt instruments held in its portfolio, including instruments with payment-in-kind features, original issue discount, and fee income such as origination, structuring, and commitment fees from portfolio companies. PSBD is externally managed by Palmer Square Capital Management LLC, a privately-held alternative investment firm. The investment advisor charges a base management fee at an annual rate of 1.75% of average net assets, plus an income incentive fee of 12.5% on adjusted net investment income above a 6.0% annualized hurdle rate, as of the 10-K filed February 26, 2026. The Investment Team consisted of 33 investment professionals as of December 31, 2025, supported by 18 dedicated operations professionals. The team employs a blend of top-down and bottom-up fundamental credit analysis, with senior members averaging approximately 20 years of experience in alternative credit markets.

Revenue model

Interest income, dividend income, and fee income (origination, structuring, commitment, diligence, and consulting fees) from portfolio companies constitute net investment income. The external investment advisor receives a base management fee of 1.75% annually on average net assets and an income incentive fee of 12.5% on adjusted net investment income exceeding a 6.0% annualized hurdle rate, with costs borne by PSBD stockholders.

Products and services

Debt investments in portfolio companies, including loans and other credit instruments with fixed or floating rates, payment-in-kind features, original issue discount securities, and zero-coupon securities. The company also provides managerial assistance to portfolio companies when requested.

Customers and end markets

Middle-market companies and other borrowers seeking debt financing. Portfolio companies are sourced through relationships with private equity sponsors, banks, and financial intermediaries.

Value-chain role

Direct lender and credit investor operating as an externally managed business development company. Palmer Square Capital Management LLC serves as both investment advisor and administrator.

Geographic exposure

The filing does not specify geographic revenue breakdown. Palmer Square Capital Management LLC is described as specializing in global alternative investments, but no country-level portfolio data is disclosed in the excerpts.

Source: SEC 10-K, filed 2026-02-26

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