Two Low-SaaS BDCs Offering 11%+ Yields

Kayne Anderson BDC and Trinity Capital provide high yields with minimal exposure to software-as-a-service companies.

Published on Feb. 25, 2026

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A couple of years ago, private credit and especially business development companies (BDCs) were relatively unknown and not frequently discussed in the media. However, two BDCs - Kayne Anderson BDC and Trinity Capital - are now offering attractive 11%+ yields with minimal exposure to the software-as-a-service (SaaS) sector.

Why it matters

As the private credit market has gained more attention, investors are seeking high-yielding opportunities outside of the traditional stock and bond markets. These two BDCs provide an alternative for those looking to diversify their portfolios and generate stronger returns.

The details

Kayne Anderson BDC and Trinity Capital are two BDCs that have caught the attention of investors due to their high dividend yields of over 11% and relatively low exposure to the SaaS industry, which has seen significant volatility in recent years. Unlike many other BDCs that have significant investments in technology and SaaS companies, these two firms have focused more on traditional industries such as manufacturing, healthcare, and business services.

  • The private credit market has gained more attention over the past couple of years.

The players

Kayne Anderson BDC

A business development company that provides financing solutions to middle-market companies.

Trinity Capital

A business development company that invests in debt and equity securities of growth-stage companies.

Roberts Berzins

A CFA charterholder with over a decade of experience in financial management, who has made efforts to institutionalize the REIT framework in Latvia and develop national SOE financing guidelines.

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What they’re saying

“A couple of years ago, private credit and especially BDCs (BIZD) were relatively unknown and not something that got frequently discussed in the media.”

— Roberts Berzins, CFA Charterholder (Seeking Alpha)

The takeaway

As investors seek higher-yielding alternatives to traditional stocks and bonds, these two BDCs offer an attractive option with their 11%+ dividends and relatively low exposure to the volatile SaaS sector. Their focus on more traditional industries could make them appealing for those looking to diversify their portfolios.