ILXQuant Private Credit Infrastructure and BDC Economy Basket Index
Fixed-basket index of 10 companies providing the infrastructure of the private credit revolution -- the most important structural shift in global finance since the creation of money market funds. The 60/40 portfolio is dead. Institutional investors are moving to a 60/40/30 model with the third 30 percent in private credit, equity, and real assets. Business Development Companies (BDCs) are the only legal structure allowing retail investors direct access to private credit markets, with mandatory 90 percent income distribution producing 10-12 percent yields. US regional bank retreat from middle-market lending (Basel III/IV capital requirements) creates a structural gap that BDCs fill. Ares Capital is the largest BDC with a $21B portfolio. Main Street Capital is the highest-rated. Hercules Capital specialises in venture-backed technology and life science lending. StepStone and Hamilton Lane provide the Bloomberg-equivalent data infrastructure for private markets -- $15T-plus in assets under coverage. Rebalances quarterly to equal weight.
- Index identifier
- ILXBDC
- Category
- Basket
- Universe
- Fixed basket -- 10 private credit infrastructure and BDC companies (equal weight)
- Currency
- USD
- Inception
- 2021-12-06
- Rebalancing
- Quarterly (first Monday of March, June, September, December)
- Index fee
- 0.60% p.a.
- Reference benchmark
- Financial SPDR (XLF)
Performance and risk
All figures below are measured over a trailing window of up to 1,260 trading days (approximately five years), not since index inception.
| Annualised return | +6.61% |
|---|---|
| Sharpe ratio | 0.32 |
| Calmar ratio | 0.24 |
| Volatility | 20.60% |
| Maximum drawdown | -27.12% |
| Return, 1 month | +11.29% |
| Return, 3 months | +5.99% |
| Return, 1 year | -10.82% |
| Return, year to date | -7.33% |
Full performance history, drawdown analysis, rolling risk metrics and portfolio breakdowns for this index are available in the ILX Quant platform.