KCAP Financial Inc is a Delaware corporation incorporated on August 8, 2006. It is an internally managed closed-end investment company. The Company originates, structures and invests in senior secured term loans, mezzanine debt and privately-held middle market companies. It has invested in asset management companies who manage collateralized loan obligation funds. The Company has also invested in debt and equity securities issued by CLO Funds managed by its Asset Manager Affiliates or by other asset managers. Its investment portfolio generates net investment income, which is generally used to pay principal and interest on its borrowings, operating expenses, and to fund its dividends. Its investment portfolio consists of three primary components: the Debt Securities Portfolio, the CLO Fund Securities and its investment in its wholly owned Asset Manager Affiliates. The Company's primary competitors also provide financing to prospective portfolio companies and include commercial banks, specialty finance companies, hedge funds, structured investment funds, other BDCs and investment banks.
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