Crescent Capital BDC initiated with a Buy at Ladenburg

Ladenburg initiated coverage of Crescent Capital BDC with a Buy rating and $20 price target. The non-diversified investment company operating as a Business Development Company is managed by Crescent Cap Advisors, a firm affiliated with Sun Life Capital, which controls a 51% stake in the advisor and has the option to acquire the remainder, the analyst tells investors. Approximately 97% of its debt investments are at variable rates, exposing Crescent to declining interest rates, but the portfolio is concentrated in non-cyclical sectors such as healthcare and software, notes the analyst, who also calls the BDC “noteworthy” for very low borrower concentration, low non-accruals, moderate balance sheet leverage, and its strong institutional backing.