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The Short Answer

This High-Yield Vehicle May Deliver a Bumpy Ride

Business-development companies are like private equity funds for individual investors, but their robust payouts come with ample helpings of risk.

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Question: A friend mentioned business-development companies as an investment idea that pays a good yield. What can you tell me about them?

Adam Zoll does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.